<PAGE>
ITT Hartford Life Insurance Companies
Separate
Accounts
and
Mutual Funds
--------------
SEMI-ANNUAL REPORT
JUNE 30, 1996
-------------------------------
[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 Variable Life Two............ 54
Hartford Life Insurance Company Separate Account Five......................... 62
ITT Hartford Life & Annuity Insurance Company Separate Account One............ 70
ITT Hartford Life & Annuity Insurance Company Separate Account Five........... 78
HARTFORD MUTUAL FUNDS
Statements of Net Assets as of June 30, 1996:
Hartford Bond Fund, Inc..................................................... 86
Hartford Stock Fund, Inc.................................................... 88
HVA Money Market Fund, Inc.................................................. 90
Hartford Advisers Fund, Inc................................................. 92
Hartford U.S. Government Money Market Fund, Inc............................. 95
Hartford Capital Appreciation Fund, Inc..................................... 96
Hartford Mortgage Securities Fund, Inc...................................... 99
Hartford Index Fund, Inc.................................................... 101
Hartford International Opportunities Fund, Inc.............................. 106
Hartford Dividend and Growth Fund, Inc...................................... 109
Hartford International Advisers Fund, Inc................................... 111
Statements of Operations for the Six Months Ended June 30, 1996:
Hartford Mutual Funds....................................................... 116
Statements of Changes in Net Assets for the Six Months Ended June 30, 1996 and
the Year Ended December 31, 1995:
Hartford Mutual Funds....................................................... 118
Notes to Financial Statements:
Hartford Mutual Funds....................................................... 122
Hartford Mutual Funds Financial Highlights...................................... 128
</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 expanded more rapidly than anticipated during the first six months
of 1996. By late February, not long after the Fed made an expected reduction
in short-term interest rates, a massive jump in job formation gave the markets
a glimpse of the surprising strength that would characterize the economic
releases for most of the rest of the first half of the year. Strong numbers on
housing and consumer spending followed in the first quarter. By the second
quarter, output was increasing as production began to catch up with demand.
And with the stronger economic numbers came the first signs of increasing
pressure of wages, a trend that if sustained could lead to higher overall
rates of inflation.
Bond market psychology quickly turned negative. Interest rates rose as
investors concluded any hope for additional ease was out the window and that
the Federal Reserve might soon have to raise rates. Stock investors took a
more sanguine view, hoping that stronger rates of economic growth would boost
earnings. The major stock indexes made a series of new highs during the first
half of the year. But the rally lost steam when long-term interest rates moved
through 7% in May and earnings disappointments in the high tech sector led to
a small-cap sell off in June.
Differences of opinion also dominate the outlook for the second half of the
year. If employment growth continues driving up consumer incomes, spending
should hold up. With inventories being rebuilt, and Europe's emergence from
its mini-slump expected to help exports, the economy could continue growing at
above-trend rates. But high levels of consumer debt, higher interest rates,
and a stronger dollar are all likely to have a dampening effect on the pace of
economic activity down the line, making an equally plausible case for a
slowdown to non-inflationary rates of economic growth.
Although we think the odds favor slower growth going forward, the debate won't
be settled immediately. Because of that, the markets are likely to continue to
react sharply to any surprises in the upcoming economic releases--as they did
in early July when prices plunged in response to another surprisingly strong
employment report--or to perceived shifts in the direction of Fed policy.
Lowndes A. Smith Joseph H. Gareau
CHAIRMAN PRESIDENT
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1
<PAGE>
PERFORMANCE SUMMARY OF HARTFORD MUTUAL FUNDS
<TABLE>
<CAPTION>
FUNDS
TOTAL RETURNS FOR THE YEARS ENDED
1996* 1995 1994 1993 1992 1991 1990 1989 1988 1987 1986 1985
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Stock................... 11.83% 34.10% (1.89)% 14.34% 10.04% 24.58% (3.87)% 26.02% 19.00% 5.41% 12.33% 31.49%
Bond.................... (1.81) 18.49 (3.95) 10.24 5.53 16.43 8.39 12.10 7.60 (0.01) 12.19 20.62
HVA Money Market........ 2.54 5.74 3.95 2.94 3.63 6.01 8.09 9.10 7.40 6.49 6.77 8.53
U.S. Government Money
Market................. 2.41 5.52 3.67 2.68 3.22 5.61 7.52 8.43 6.92 5.75 6.29 8.07
Advisers................ 6.67 28.34 (2.74) 12.25 8.30 20.33 1.26 21.72 14.24 6.08 12.70 26.85
Capital Appreciation.... 11.32 30.25 2.50 20.80 16.98 53.99 (10.90) 24.11 26.37 (4.31) 9.03 36.18
Mortgage Securities..... 0.01 16.17 (1.61) 6.31 4.64 14.71 9.70 13.13 8.38 2.64 11.13 20.61
Index................... 9.72 36.55 0.94 9.12 6.82 29.53 (3.99) 30.47 16.35 (12.91) -- --
International
Opportunities.......... 7.85 13.93 (1.94) 33.73 (4.43) 13.00 (11.76) -- -- -- -- --
Dividend and Growth..... 10.72 36.37 1.96 -- -- -- -- -- -- -- -- --
International
Advisers............... 5.75 15.84 -- -- -- -- -- -- -- -- -- --
MARKET INDICES
Standard & Poor's 500
Stock Index............ 10.09% 37.52% 1.31% 10.06% 7.61% 30.39% (3.11)% 31.62% 16.60% 5.49% 18.66% 31.70%
Shearson Lehman
Gov't/Corp. Bond
Index.................. (1.88) 19.24 (3.51) 11.03 7.58 16.13 8.28 14.24 7.58 2.29 15.62 21.30
90-Day Treasury Bills... 2.58 5.80 4.14 3.12 3.70 5.90 7.95 8.67 6.56 5.97 6.41 7.97
EAFEGDP................. 5.38 11.16 7.81 33.56 (9.65) 10.73 -- -- -- -- -- --
<FN>
*Six Months Ended June 30, 1996.
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.
JUNE 30, 1996
For the six months ending June 30, 1996, the Hartford Bond Fund returned -1.8%
(net of mutual fund expenses) outperforming its benchmark, the Lehman
Government/Corporate Bond Index, by 0.1%. Interest rates ended the second
quarter approximately 1% higher than where they began the year, resulting in
negative total returns for most sectors of the fixed income market.
The duration of the Bond Fund at the beginning of the year was neutral to the
index and significantly shorter than the average of our peers. It was our
belief at the time that the bond market was overextended and vulnerable to a
correction. As the economy grew more rapidly than expected during the first
quarter, bond investor psychology turned negative. We maintained a relatively
neutral portfolio duration throughout the first half of the year.
Keying off the strength of the equity markets, we overweighted corporate bonds
during the period. We also found very good value in discount fifteen-year
mortgage securities, and performance benefited from our overweighting in these
issues. We took the opportunity to upgrade the quality of our asset-backed
holdings at a time when there was minimal cost of doing so.
Looking forward, we feel strongly that bonds have attractive fundamental value,
but expect continued volatility as investors react to upcoming economic
releases and anticipate the direction of Federal Reserve policy. We are
gradually lengthening portfolio duration. While second quarter earnings
releases were good on average, recent stock market weakness is a signal to us
to reduce the portfolio's corporate bond exposure. We will continue to
overweight the discount mortgage market, as we feel it continues to provide
attractive return prospects.
The Board of Directors of the Hartford Bond Fund recently approved a
modification to the Fund's investment policies. The Board has authorized
investment of up to 20% of the Fund's assets in BB quality debt securities, a
broadening of the prior policy which restricted investment to BBB rated and
higher quality securities. BB quality bonds are the highest quality tier of the
sector commonly known as "high yield" or "junk" bonds.
This action was taken because we believe the Fund's return can potentially be
enhanced over time with only a modest increase in risk. The addition of this
sector authorizes investment in a class of securities which the Advisor
believes will enhance portfolio diversification and provide a superior risk/
reward trade-off than currently permitted asset classes. We do not believe this
modification changes the general nature of the Fund. Also, many mutual funds
which are generally considered to be similar in objective to the Hartford Bond
Fund have similar flexibility.
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
HARTFORD BOND FUND, INC.
<S> <C> <C>
Bond LGC
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
6/30/96 22,200 24,646
$10,000 Initial Investment Made
01/01/86
Value on 6/30/96:
Bond $22,200
LGC $24,646
Average Annual Total Returns
Bond LGC
1 YR 4.48% 4.66%
5 YR 7.84% 8.48%
10 YR 7.69% 8.41%
</TABLE>
3
<PAGE>
INVESTMENT REVIEW - HARTFORD STOCK FUND, INC.
JUNE 30, 1996
For the six months ending June 30, 1996, the Hartford Stock Fund returned 11.8%
(net of mutual fund expenses). The Fund outperformed its benchmark as the S&P
500 Composite Index returned 10.1%. Good individual stock selection and our
overweighting in technology versus the index lead to the outperformance.
The second quarter of 1996 continued the consistently good stock market
performance which began in early 1995. The rise was driven by expectations of
moderate earnings growth, strong inflows into mutual funds, merger and
acquisition activity, corporate share repurchase programs, and stable interest
rates. Strong sectors during the quarter included retail, tobacco, beverage,
oil exploration and production, and communications equipment. Weakness was
found in the HMO's, aluminum, machinery, steel, gold, and trucking industries.
Sector performance this year has been more consistent than usual across the
board, thus making stock selection crucial for good performance.
During the quarter we became slightly more defensive due to our belief that the
stock market was discounting faster economic growth than we expected. We
trimmed the Fund's position in some cyclical companies and added exposure to
traditional growth companies. We maintained the Fund's overweight position in
health care.
The divergence between stock and bond market returns continued in the second
quarter. This could become problematic unless earnings start to reaccelerate or
interest rates resume their secular decline. Our economic outlook is for a slow
growth economy accompanied by low inflation and stable/falling interest rates.
We expect moderate returns from the stock market with stock selection
continuing to be extremely important.
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
HARTFORD STOCK FUND, INC.
<S> <C> <C>
Stock S&P 500
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
6/30/96 39,366 43,995
$10,000 Initial Investment Made
01/01/86
Value on 6/30/96:
Stock $39,366
S&P 500 $43,995
Average Annual Total Returns
Stock S&P 500
1 YR 26.79% 25.97%
5 YR 15.05% 15.70%
10 YR 12.90% 13.79%
</TABLE>
4
<PAGE>
INVESTMENT REVIEW - HARTFORD ADVISERS FUND, INC.
JUNE 30, 1996
For the six months ending June 30, 1996, the Hartford Advisers Fund returned
6.7% (net of mutual fund expenses). The Fund outperformed its Composite
benchmark, which returned 5.0%. 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.
The dramatic change in bond market psychology which began during the first
quarter continued during the second. Although short-term interest rates were
little changed (the three month Treasury bill yield rose 5 basis points during
the quarter), intermediate and long-term rates rose between 40 and 60 basis
points depending on maturity. Since the low in interest rates during the fourth
quarter of 1995, long-term Treasury bond yields have risen by 125 basis points
and five year Treasury note yields have risen by 150 basis points. These
increases in interest rates appear dramatic since there has, to date, been no
move by the Federal Reserve to raise money market rates. (As a comparison,
during the "awful" 1994 rise in interest rates, long-term Treasury bond yields
rose 50 basis points before the Fed raised money market rates for the first
time.)
Corporate bonds remained strong in the presence of very strong demand from
investors and moderate new issue supply. Mortgage-backed securities finally
outperformed during the first half of the year and have now gotten back to fair
valuation from inexpensive. All in all, it is now difficult to identify areas
of the bond market which represent extraordinary value.
We have not significantly altered the Fund's asset mix. Equities comprise 66%
of the Fund's market value, a level which we feel is appropriate given our
market outlook. This equity exposure level is near the high end of the Fund's
historical range. Although we believe that bond yields are attractive relative
to the inflation rate, they are not high enough to provide competition for the
equity market. Should interest rates rise from current levels, the existing
allocation may need to be reconsidered.
(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.
<S> <C> <C> <C>
Advisers S&P 500 LGC
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
6/30/96 32,787 43,995 24,646
$10,000 Initial Investment Made
01/01/86
Value on 6/30/96:
Advisers $32,787
S&P 500 $43,995
LGC $24,646
Average Annual Total Returns
Advisers S&P 500 LGC
1 YR 18.38% 25.97% 4.66%
5 YR 12.19% 15.70% 8.48%
10 YR 11.33% 13.79% 8.41%
</TABLE>
5
<PAGE>
INVESTMENT REVIEW - HARTFORD CAPITAL APPRECIATION FUND, INC.
JUNE 30, 1996
For the six months ending June 30, 1996, the Hartford Capital Appreciation Fund
returned 11.3% (net of mutual fund expenses). The Fund outperformed the 40%/60%
Composite of the S&P 500 and the Russell 2500 Indices which returned 10.2%.
The market environment in the most recent quarter was relatively less
discriminating with regard to market sector than in the past. Smaller company
stocks performed in line with the broader market, and both Growth and Value
disciplines showed positive returns. Adjusted for currency movements, foreign
stocks provided returns also in line with the S&P 500, although the strong U.S.
dollar clipped these a bit. The market has remained hostage to the monthly
"jobs report" presented on the first Friday of every month. In the past, these
indicators have signaled economic strength, a reading that has not found favor
with bond investors. While the equity market has tended to suffer along with
bonds in the immediate term, the salutary effects of economic growth have won
out, leading the Fund's portfolio to new highs. There are factors in place
which may make a similar reaction more difficult near term. These include low
existing mutual fund cash levels and a slowdown in new inflows. Fortunately, a
partial offset to these negatives is the slowdown in the market for Initial
Public Offerings.
Changes in the portfolio's overall composition during the first half were again
minor. The Technology sector remains our biggest challenge. We see here an area
of excellent long term potential, but worry about investors' reactions to near-
term dislocations in the semiconductor/personal computer food chain. Also of
note, we have reduced the Fund's International exposure due to a combination of
position sales as well as strong relative performance from the Fund's domestic
holdings.
Our overall strategy for the Fund 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 typically
see a catalyst for outperformance. This approach, if executed well, should
continue to provide positive absolute and relative results over a reasonable
time frame.
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
HARTFORD CAPITAL APPRECIATION FUND,
INC.
<S> <C> <C> <C>
Capital S&P 500 Russell 2500
Appreciation
1/1/86 10,000 10,000 10,000
1986 10,763 11,866 11,198
1987 10,161 12,491 10,674
1988 12,668 14,565 13,100
1989 15,531 19,170 15,645
1990 13,664 18,574 13,317
1991 20,792 24,219 19,538
1992 24,025 26,062 22,699
1993 28,661 28,684 26,454
1994 29,023 29,059 26,171
1995 37,375 39,963 34,467
6/30/96 41,606 43,995 38,010
$10,000 Initial Investment Made
01/01/86
Value on 6/30/96:
Capital Appreciation $41,606
S&P 500 $43,995
Russell 2500 $38,010
Average Annual Total Returns
Capital S&P 500 Russell 2500
Appreciation
1 YR 22.20% 25.97% 24.17%
5 YR 20.89% 15.70% 17.91%
10 YR 14.49% 13.79% 11.99%
</TABLE>
6
<PAGE>
INVESTMENT REVIEW - HARTFORD MORTGAGE SECURITIES FUND, INC.
JUNE 30, 1996
For the six months ended June 30, 1996, the Hartford Mortgage Securities Fund
returned .01% (net of mutual fund expenses) versus 0.35% for its benchmark
index, the Lehman Mortgage-Backed Securities Index. Interest rates rose
approximately 100 basis points (1.0%) during the period. This resulted in the
value of the bonds in the Fund declining in a magnitude which offset the Fund's
income. The slight underperformance relative to the index was attributable to
an underweighting in seasoned agency mortgage pass-throughs and the Fund's
expenses. Although the performance of the first half was not attractive on an
absolute basis, mortgage securities performed relatively well as many other
types of bond securities posted negative returns.
Trading activity was relatively light in the Mortgage Securities Fund during
the period. We reduced Treasury positions in favor of mortgages. We found very
good value in non-agency CMOs and made purchases when these securities, which
were in short supply, were available. Within the mortgage sector, we reduced
holdings of premium GNMAs and FHLMCs in favor of FNMAs.
Looking ahead, we expect continued volatility in the bond markets as investors
react to upcoming economic releases and the direction of Federal Reserve
policy. Although bonds are likely to remain in their current trading range
until investors get a better read on the pace of economic growth over the
second half of the year, we believe the substantial increase in interest rates
during the first half leaves bonds attractively valued.
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
HARTFORD MORTGAGE SECURITIES FUND,
INC.
<S> <C> <C>
Mortgage LEHMAN MBS
Securities
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
6/30/96 22,379 25,052
$10,000 Initial Investment Made
01/01/86
Value on 6/30/96:
Mortgage Securities $22,379
LEHMAN MBS $25,052
Average Annual Total Returns
Mortgage
Securities LEHMAN MBS
1 YR 5.19% 5.85%
5 YR 6.92% 7.75%
10 YR 7.94% 9.07%
</TABLE>
7
<PAGE>
INVESTMENT REVIEW - HARTFORD INTERNATIONAL OPPORTUNITIES FUND, INC.
JUNE 30, 1996
For the six months ending June 30, 1996, the Hartford International
Opportunities Fund returned 7.9% (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 5.4%.
Foreign equity markets posted modest positive returns in the first half of the
year, with the EAFE GDP Weighted Index rising 5.4%. Uncertainty regarding the
future direction of interest rates and corporate profitability combined with
mixed signals from the underlying economies held back returns in the world's
major equity markets. Furthermore, local currency gains were reduced by a
stronger U.S. dollar. The only meaningful positive action was in smaller
markets in peripheral Europe and Latin America. A weaker German mark and
further steps towards more prudent fiscal policies saw European countries such
as Italy, Ireland, and Sweden produce both currency appreciation against the
U.S. dollar as well as local market strength. Consequently these countries
ended up among the quarter's top performers. Among the major emerging markets,
the Latin Americans shone with both Brazil and Argentina producing strongly
positive returns. The laggards were several of the high growth Asian markets
with flat-to-negative returns in U.S. dollars as the backup in U.S. interest
rates and continued worries about economic overheating negatively affected
equity prices. Singapore and South Korea distinguished themselves with
substantial negative results.
Moving into the second half of the year, we are anticipating continued mixed
results from the international markets in the short-run. While we are of the
belief that U.S. long-term bond yields have hit an intermediate peak, and flat
to lower bond yields should provide some solace to the markets, the global
liquidity situation is likely to deteriorate modestly as we head into 1997.
While U.S. short rates are likely to remain stable, interest rates in the other
major economies are at or near record lows and we are expecting these to
gradually tick upwards as growth becomes more sure-footed as we go into 1997.
With a less supportive liquidity environment, economies with excess savings
(Singapore and Japan), direct beneficiaries of increased world growth
(Australia and Finland) or those with an otherwise significant positive
domestic dynamic (Italy) are likely to be the better performing markets.
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
HARTFORD INTERNATIONAL OPPORTUNITIES FUND,
INC.
<S> <C> <C>
International EAFEGDP
Opportunities
7/2/90 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
6/30/96 15,355 14,289
$10,000 Initial Investment Made 07/02/90
Value on 6/30/96:
International Opportunities $15,355
EAFEGDP $14,289
Average Annual Total Returns
International
Opportunities EAFEGDP
1 YR 18.48% 12.54%
5 YR 11.30% 11.01%
S.I. 07/02/90 7.41% 6.13%
</TABLE>
8
<PAGE>
INVESTMENT REVIEW - HARTFORD DIVIDEND AND GROWTH FUND, INC.
JUNE 30, 1996
The Hartford Dividend and Growth Fund's return was 10.7% (net of mutual fund
expenses) for the six months ending June 30, 1996, outpacing the S&P 500
Index's return of 10.1%. The Fund's results in the first half were driven by
strong relative performance in several sectors, including Health Care, Finance
and Utilities. In Health Care, many of its major holdings outperformed the
market average. The absolute returns from the Finance and Utility sectors have
faded as concerns about rising interest rates have increased, but the Fund's
relative results in those sectors continue to be strong.
In the first quarter, strength came primarily from economically sensitive
sectors. In the second quarter, two classic growth sectors led the market;
Consumer Staples and Information Technology both provided strong returns.
Materials, among the strongest sectors in the first quarter, lost ground in the
second quarter. This rotation in leadership occurred as the market wavered
between expectations for higher growth (favoring cyclicals) and fears about the
dampening effect of higher interest rates (favoring growth).
Despite rising interest rates, stocks continued their climb during the first
half of 1996. Moderate economic and earnings growth, along with no evidence of
rising inflation provided a constructive environment for equities. However,
Treasury bond rates have now increased over 100 basis points during the year,
bringing yields to a 7% level, which may begin to provide some stiffer
competition for stock investors.
Consistent with our conservative approach, the Fund has an above-market yield
and below average P/E and beta. Relative to the market, the Fund should exhibit
these value-oriented characteristics consistently over time.
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
HARTFORD DIVIDEND AND GROWTH FUND, INC.
<S> <C> <C>
Dividend and S&P 500
Growth
3/8/94 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
3/31/96 14,793 14,580
6/30/96 16,379 16,051
$10,000 Initial Investment Made 3/8/94
Value on 6/30/96:
Dividend and Growth $16,379
S&P 500 $16,051
Average Annual Total Returns
Dividend and
Growth S&P 500
1 YR 30.12% 25.97%
S.I. 3/8/94 20.51% 19.96%
</TABLE>
9
<PAGE>
INVESTMENT REVIEW - HARTFORD INTERNATIONAL ADVISERS FUND, INC.
JUNE 30, 1996
For the six months ending June 30, 1996, the Hartford International Advisers
Fund returned 5.8% (net of mutual fund expenses). The Fund outperformed its
Composite benchmark, which returned 4.5%. 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.
After a poor start to the year, the international fixed income markets posted a
solid performance in the second quarter, rising 2.6% for the quarter, winding
up with a 3.6% return for the year-to-date. Interest rates declined everywhere
except in the U.S. and Japan. Once again, Europe emerged with the best
performance led by the peripheral countries of Italy, Spain, Sweden and
Finland. In dramatic contrast, Japan yields rose as signs of a powerful
economic recovery finally emerged.
Continuing the trend established last summer, the U.S. dollar strengthened
against the Japanese yen and German mark. We expect this trend to continue
given the historically low interest rates in Japan and continental Europe. The
Australian and Canadian dollars also rose with the U.S. dollar over the
quarter.
Moderate global economic growth and low inflation are still the dominant
themes. Stimulative monetary policy in Japan and Europe will support economic
recovery in those regions, and we expect a stronger global economy in late 1996
and 1997. Real GDP growth will average 2.2% in 1996 and rise towards 2.8% in
1997 for the large industrialized countries. Global inflation is still
constrained across all major regions: North America (2.2%), Europe (2.0%) and
Japan (0.2%). This environment will provide a rich setting for global financial
markets.
As we are still positive on the global economic cycle, we expect equities and
fixed income to outperform cash in the third quarter. As of June 28, 1996, the
Hartford International Advisers Fund is overweight international equity and
fixed income securities and underweight cash.
(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 55% EAFEGDP,
Advisers 35% Salomon World
Government Bond Index,
10% 90-Day T-Bills
3/1/95 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
3/31/96 11,943 11,626
6/30/96 12,630 12,212
$10,000 Initial Investment Made
03/01/95
Value on 6/30/96:
International Advisers $12,630
55/35/10 $12,212
Average Annual Total Returns
International
Advisers 55/35/10
1 YR 14.45% 16.07%
S.I. 03/01/95 16.43% 13.80%
</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
JUNE 30, 1996 (UNAUDITED)
<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 35,542,032
Cost $ 34,603,073
Market Value......... $34,768,636 -- -- --
Hartford Stock Fund,
Inc.
Shares 109,220,377
Cost $285,477,225
Market Value......... -- $409,823,254 -- --
HVA Money Market Fund,
Inc.
Shares 20,791,747
Cost $ 20,791,747
Market Value......... -- -- $20,791,747 --
Hartford Advisers Fund,
Inc.
Shares 255,279,949
Cost $390,791,487
Market Value......... -- -- -- $513,824,929
Hartford U.S.
Government Money
Market Fund, Inc.
Shares 8,647,796
Cost $ 8,647,796
Market Value......... -- -- -- --
Hartford Capital
Appreciation Fund,
Inc.
Shares 93,765,176
Cost $257,221,905
Market Value......... -- -- -- --
Hartford Mortgage
Securities Fund, Inc.
Shares 23,895,524
Cost $ 25,075,204
Market Value......... -- -- -- --
Hartford Index Fund,
Inc.
Shares 28,122,189
Cost $ 43,512,166
Market Value......... -- -- -- --
Hartford International
Opportunities Fund,
Inc.
Shares 44,805,477
Cost $ 53,465,737
Market Value......... -- -- -- --
Hartford Dividend and
Growth Fund, Inc.
Shares 14,272,535
Cost $ 18,503,191
Market Value......... -- -- -- --
Calvert Responsibly
Invested Balanced
Portfolio
Shares 10,844,142
Cost $ 16,334,316
Market Value......... -- -- -- --
Due from Hartford Life
Insurance Company..... 34,219 207,980 42,233 362,942
Receivable from fund
shares sold........... 79 20,636 8,899 4,816
----------- ------------ ----------- -------------
Total Assets........... 34,802,934 410,051,870 20,842,879 514,192,687
----------- ------------ ----------- -------------
LIABILITIES:
Due to Hartford Life
Insurance Company..... 79 20,636 9,336 4,818
Payable for fund shares
purchased............. 34,216 207,981 42,233 362,979
----------- ------------ ----------- -------------
Total Liabilities...... 34,295 228,617 51,569 367,797
----------- ------------ ----------- -------------
Net Assets (variable
annuity contract
liabilities).......... $34,768,639 $409,823,253 $20,791,310 $513,824,890
----------- ------------ ----------- -------------
----------- ------------ ----------- -------------
DEFERRED ANNUITY
CONTRACTS IN THE
ACCUMULATION PERIOD:
GROUP SUB-ACCOUNTS:
Units Owned by
Participants.......... 8,685,571 41,035,992 7,754,723 132,713,457
Contract Liability..... $34,768,639 $409,823,253 $20,791,310 $513,824,890
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
12
<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>
ASSETS:
Investments:
Hartford Bond Fund,
Inc.
Shares 35,542,032
Cost $ 34,603,073
Market Value......... -- -- -- -- -- --
Hartford Stock Fund,
Inc.
Shares 109,220,377
Cost $285,477,225
Market Value......... -- -- -- -- -- --
HVA Money Market Fund,
Inc.
Shares 20,791,747
Cost $ 20,791,747
Market Value......... -- -- -- -- -- --
Hartford Advisers Fund,
Inc.
Shares 255,279,949
Cost $390,791,487
Market Value......... -- -- -- -- -- --
Hartford U.S.
Government Money
Market Fund, Inc.
Shares 8,647,796
Cost $ 8,647,796
Market Value......... $8,647,796 -- -- -- -- --
Hartford Capital
Appreciation Fund,
Inc.
Shares 93,765,176
Cost $257,221,905
Market Value......... -- $339,480,570 -- -- -- --
Hartford Mortgage
Securities Fund, Inc.
Shares 23,895,524
Cost $ 25,075,204
Market Value......... -- -- $24,753,134 -- -- --
Hartford Index Fund,
Inc.
Shares 28,122,189
Cost $ 43,512,166
Market Value......... -- -- -- $60,790,893 -- --
Hartford International
Opportunities Fund,
Inc.
Shares 44,805,477
Cost $ 53,465,737
Market Value......... -- -- -- -- $60,713,214 --
Hartford Dividend and
Growth Fund, Inc.
Shares 14,272,535
Cost $ 18,503,191
Market Value......... -- -- -- -- -- $20,130,412
Calvert Responsibly
Invested Balanced
Portfolio
Shares 10,844,142
Cost $ 16,334,316
Market Value......... -- -- -- -- -- --
Due from Hartford Life
Insurance Company..... 16,153 303,953 128,483 171,158 84,697 54,774
Receivable from fund
shares sold........... 9 1,405 36,230 -- 128 430
----------- ----------------- --------------- ----------- ------------------ -------------
Total Assets........... 8,663,958 339,785,928 24,917,847 60,962,051 60,798,039 20,185,616
----------- ----------------- --------------- ----------- ------------------ -------------
LIABILITIES:
Due to Hartford Life
Insurance Company..... 9 1,405 36,231 -- 128 424
Payable for fund shares
purchased............. 14,046 303,940 128,845 171,150 84,701 54,773
----------- ----------------- --------------- ----------- ------------------ -------------
Total Liabilities...... 14,055 305,345 165,076 171,150 84,829 55,197
----------- ----------------- --------------- ----------- ------------------ -------------
Net Assets (variable
annuity contract
liabilities).......... $8,649,903 $339,480,583 $24,752,771 $60,790,901 $60,713,210 $20,130,419
----------- ----------------- --------------- ----------- ------------------ -------------
----------- ----------------- --------------- ----------- ------------------ -------------
DEFERRED ANNUITY
CONTRACTS IN THE
ACCUMULATION PERIOD:
GROUP SUB-ACCOUNTS:
Units Owned by
Participants.......... 4,629,294 55,926,517 10,654,461 23,647,928 42,536,195 14,934,823
Contract Liability..... $8,649,903 $339,480,583 $24,752,771 $60,790,901 $60,713,210 $20,130,419
<CAPTION>
CALVERT
RESPONSIBLY INVESTED
BALANCED PORTFOLIO
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 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......... --
Calvert Responsibly
Invested Balanced
Portfolio
Shares
Cost
Market Value......... $19,042,314
Due from Hartford Life
Insurance Company..... 24,241
Receivable from fund
shares sold........... 1
--------------------
Total Assets........... 19,066,556
--------------------
LIABILITIES:
Due to Hartford Life
Insurance Company..... 1
Payable for fund shares
purchased............. 21,572
--------------------
Total Liabilities...... 21,573
--------------------
Net Assets (variable
annuity contract
liabilities).......... $19,044,983
--------------------
--------------------
DEFERRED ANNUITY
CONTRACTS IN THE
ACCUMULATION PERIOD:
GROUP SUB-ACCOUNTS:
Units Owned by
Participants.......... 9,625,039
Contract Liability..... $19,044,983
</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 SIX MONTHS ENDED JUNE 30, 1996 (UNAUDITED)
<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.............. $ 1,112,866 $ 3,255,266 $ 517,931 $ 7,418,755
EXPENSES:
Mortality and expense
undertakings.......... (188,211) (2,055,596) (111,224) (2,636,655)
------------- ------------ ------------ -------------
Net investment income
(loss).............. 924,655 1,199,670 406,707 4,782,100
------------- ------------ ------------ -------------
Capital gains income... -- 14,883,740 -- 10,564,590
------------- ------------ ------------ -------------
NET REALIZED AND
UNREALIZED GAIN (LOSS)
ON INVESTMENTS:
Net realized gain
(loss) on security
transactions.......... 3,905 7,972,418 -- 8,125,617
Net unrealized
appreciation
(depreciation) of
investments during the
period................ (1,792,197) 16,503,888 -- 5,614,672
------------- ------------ ------------ -------------
Net gains (losses) on
investments......... (1,788,292) 24,476,306 -- 13,740,289
------------- ------------ ------------ -------------
Net increase
(decrease) in net
assets resulting
from operations..... $ (863,637) $ 40,559,716 $ 406,707 $29,086,979
------------- ------------ ------------ -------------
------------- ------------ ------------ -------------
</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.............. $204,320 $ 1,262,740 $ 846,902 $ 575,555 $ 605,352
EXPENSES:
Mortality and expense
undertakings.......... (46,020) (1,667,411) (135,104) (233,611) (293,045)
-------- ------------------- --------------- ----------- ------------------
Net investment income
(loss).............. 158,300 (404,671) 711,798 341,944 312,307
-------- ------------------- --------------- ----------- ------------------
Capital gains income... -- 18,716,143 -- 935,734 1,423,334
-------- ------------------- --------------- ----------- ------------------
NET REALIZED AND
UNREALIZED GAIN (LOSS)
ON INVESTMENTS:
Net realized gain
(loss) on security
transactions.......... -- 8,713,514 (155,908) (1,915) 1,636,822
Net unrealized
appreciation
(depreciation) of
investments during the
period................ -- 4,066,216 (699,146) 3,478,934 347,712
-------- ------------------- --------------- ----------- ------------------
Net gains (losses) on
investments......... -- 12,779,730 (855,054) 3,477,019 1,984,534
-------- ------------------- --------------- ----------- ------------------
Net increase
(decrease) in net
assets resulting
from operations..... $158,300 $31,091,202 $(143,256) $ 4,754,697 $3,720,175
-------- ------------------- --------------- ----------- ------------------
-------- ------------------- --------------- ----------- ------------------
<CAPTION>
CALVERT
DIVIDEND AND RESPONSIBLY INVESTED
GROWTH FUND BALANCED PORTFOLIO
SUB-ACCOUNT SUB-ACCOUNT
------------ --------------------
<S> <C> <C>
INVESTMENT INCOME:
Dividends.............. $ 184,531 $--
EXPENSES:
Mortality and expense
undertakings.......... (74,781) (97,535)
------------ --------
Net investment income
(loss).............. 109,750 (97,535)
------------ --------
Capital gains income... 208,419 --
------------ --------
NET REALIZED AND
UNREALIZED GAIN (LOSS)
ON INVESTMENTS:
Net realized gain
(loss) on security
transactions.......... 54,549 383,082
Net unrealized
appreciation
(depreciation) of
investments during the
period................ 999,084 169,440
------------ --------
Net gains (losses) on
investments......... 1,053,633 552,522
------------ --------
Net increase
(decrease) in net
assets resulting
from operations..... $1,371,802 $454,987
------------ --------
------------ --------
</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 SIX MONTHS ENDED JUNE 30, 1996 (UNAUDITED)
<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)................ $ 924,655 $ 1,199,670 $ 406,707 $ 4,782,100
Capital gains income... -- 14,883,740 -- 10,564,590
Net realized gain
(loss) on security
transactions.......... 3,905 7,972,418 -- 8,125,617
Net unrealized
appreciation
(depreciation) of
investments during the
period................ (1,792,197) 16,503,888 -- 5,614,672
-------------- ------------- ------------ -------------
Net increase (decrease)
in net assets
resulting from
operations............ (863,637) 40,559,716 406,707 29,086,979
-------------- ------------- ------------ -------------
UNIT TRANSACTIONS:
Purchases.............. 1,756,639 18,558,016 1,244,559 27,763,823
Net transfers.......... (1,013,822) 2,483,644 (1,043,668) (5,324,417)
Surrenders............. (479,432) (4,378,092) (545,451) (6,290,840)
-------------- ------------- ------------ -------------
Net increase (decrease)
in net assets
resulting from unit
transactions.......... 263,385 16,663,568 (344,560) 16,148,566
-------------- ------------- ------------ -------------
Total increase
(decrease) in net
assets................ (600,252) 57,223,284 62,147 45,235,545
NET ASSETS:
Beginning of period.... 35,368,891 352,599,969 20,729,163 468,589,345
-------------- ------------- ------------ -------------
End of period.......... $ 34,768,639 $ 409,823,253 $ 20,791,310 $513,824,890
-------------- ------------- ------------ -------------
-------------- ------------- ------------ -------------
HARTFORD LIFE INSURANCE COMPANY
STATEMENT OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED DECEMBER 31, 1995
MONEY
BOND FUND STOCK FUND MARKET FUND ADVISERS FUND
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
-------------- ------------- ------------ -------------
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
-------------- ------------- ------------ -------------
-------------- ------------- ------------ -------------
</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)................ $ 158,300 $ (404,671) $ 711,798 $ 341,944 $ 312,307 $ 109,750
Capital gains income... -- 18,716,143 -- 935,734 1,423,334 208,419
Net realized gain
(loss) on security
transactions.......... -- 8,713,514 (155,908) (1,915) 1,636,822 54,549
Net unrealized
appreciation
(depreciation) of
investments during the
period................ -- 4,066,216 (699,146) 3,478,934 347,712 999,084
----------- ----------------- ---------------- ------------ ------------------ ------------
Net increase (decrease)
in net assets
resulting from
operations............ 158,300 31,091,202 (143,256) 4,754,697 3,720,175 1,371,802
----------- ----------------- ---------------- ------------ ------------------ ------------
UNIT TRANSACTIONS:
Purchases.............. 653,780 25,652,583 1,383,850 4,573,773 5,216,206 1,698,447
Net transfers.......... (485,428) 190,057 (2,053,784) 5,546,939 4,853,103 9,616,380
Surrenders............. (207,671) (4,038,570) (280,561) (708,055) (534,145) (287,536)
----------- ----------------- ---------------- ------------ ------------------ ------------
Net increase (decrease)
in net assets
resulting from unit
transactions.......... (39,319) 21,804,070 (950,495) 9,412,657 9,535,164 11,027,291
----------- ----------------- ---------------- ------------ ------------------ ------------
Total increase
(decrease) in net
assets................ 118,981 52,895,272 (1,093,751) 14,167,354 13,255,339 12,399,093
NET ASSETS:
Beginning of period.... 8,530,922 286,585,311 25,846,522 46,623,547 47,457,871 7,731,326
----------- ----------------- ---------------- ------------ ------------------ ------------
End of period.......... $8,649,903 $339,480,583 $24,752,771 $ 60,790,901 $60,713,210 $20,130,419
----------- ----------------- ---------------- ------------ ------------------ ------------
----------- ----------------- ---------------- ------------ ------------------ ------------
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
-------------------- ----------------- ---------------- ------------ ------------------ ------------
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
----------- ----------------- ---------------- ------------ ------------------ ------------
----------- ----------------- ---------------- ------------ ------------------ ------------
<CAPTION>
CALVERT
RESPONSIBLY INVESTED
BALANCED PORTFOLIO
SUB-ACCOUNT
--------------------
<S> <C>
OPERATIONS:
Net investment income
(loss)................ $ (97,535)
Capital gains income... --
Net realized gain
(loss) on security
transactions.......... 383,082
Net unrealized
appreciation
(depreciation) of
investments during the
period................ 169,440
--------------------
Net increase (decrease)
in net assets
resulting from
operations............ 454,987
--------------------
UNIT TRANSACTIONS:
Purchases.............. 1,676,777
Net transfers.......... (177,827)
Surrenders............. (288,873)
--------------------
Net increase (decrease)
in net assets
resulting from unit
transactions.......... 1,210,077
--------------------
Total increase
(decrease) in net
assets................ 1,665,064
NET ASSETS:
Beginning of period.... 17,379,919
--------------------
End of period.......... $19,044,983
--------------------
--------------------
CALVERT
RESPONSIBLY INVESTED
BALANCED PORTFOLIO
SUB-ACCOUNT
--------------------
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
--------------------
--------------------
</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
JUNE 30, 1996 (UNAUDITED)
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 June
30, 1996.
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.
18
<PAGE>
HARTFORD LIFE INSURANCE COMPANY
SEPARATE ACCOUNT ONE
<PAGE>
Separate Account One
HARTFORD LIFE INSURANCE COMPANY
STATEMENT OF ASSETS & LIABILITIES
JUNE 30, 1996 (UNAUDITED)
<TABLE>
<CAPTION>
BOND FUND STOCK FUND
SUB-ACCOUNT SUB-ACCOUNT
----------- -----------
<S> <C> <C>
ASSETS:
Investments:
Hartford Bond Fund,
Inc.
Shares 1,522,475
Cost $ 1,516,297
Market Value......... $ 1,489,346 --
Hartford Stock Fund,
Inc.
Shares 1,346,337
Cost $ 3,265,115
Market Value......... -- $ 5,051,808
HVA Money Market Fund,
Inc.
Shares 2,246,852
Cost $ 2,246,852
Market Value......... -- --
Hartford Advisers Fund,
Inc.
Shares 7,892,564
Cost $10,161,552
Market Value......... -- --
Hartford Capital
Appreciation Fund,
Inc.
Shares 2,083,723
Cost $ 4,213,208
Market Value......... -- --
Hartford Mortgage
Securities Fund, Inc.
Shares 3,224,616
Cost $ 3,489,500
Market Value......... -- --
Hartford Index Fund,
Inc.
Shares 129,240
Cost $ 202,269
Market Value......... -- --
Due from Hartford Life
Insurance Company..... 86,224 --
Receivable from fund
shares sold........... -- 6,150
----------- -----------
Total Assets........... 1,575,570 5,057,958
----------- -----------
LIABILITIES:
Due to Hartford Life
Insurance Company..... -- 6,156
Payable for fund shares
purchased............. 86,224 --
----------- -----------
Total Liabilities...... 86,224 6,156
----------- -----------
Net Assets (variable
life insurance
contract
liabilities).......... $ 1,489,346 $ 5,051,802
----------- -----------
----------- -----------
Units Owned by
Participants.......... 736,734 1,401,175
Unit Price............. $ 2.021551 $ 3.605403
</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 1,522,475
Cost $ 1,516,297
Market Value......... -- -- -- -- --
Hartford Stock Fund,
Inc.
Shares 1,346,337
Cost $ 3,265,115
Market Value......... -- -- -- -- --
HVA Money Market Fund,
Inc.
Shares 2,246,852
Cost $ 2,246,852
Market Value......... $2,246,852 -- -- -- --
Hartford Advisers Fund,
Inc.
Shares 7,892,564
Cost $10,161,552
Market Value......... -- $15,886,073 -- -- --
Hartford Capital
Appreciation Fund,
Inc.
Shares 2,083,723
Cost $ 4,213,208
Market Value......... -- -- $7,544,202 -- --
Hartford Mortgage
Securities Fund, Inc.
Shares 3,224,616
Cost $ 3,489,500
Market Value......... -- -- -- $3,340,348 --
Hartford Index Fund,
Inc.
Shares 129,240
Cost $ 202,269
Market Value......... -- -- -- -- $ 279,373
Due from Hartford Life
Insurance Company..... -- 2,682 215,182 539 83,609
Receivable from fund
shares sold........... 309,401 -- -- -- --
----------- ------------- ----------------- --------------- -----------
Total Assets........... 2,556,253 15,888,755 7,759,384 3,340,887 362,982
----------- ------------- ----------------- --------------- -----------
LIABILITIES:
Due to Hartford Life
Insurance Company..... 312,091 -- -- -- --
Payable for fund shares
purchased............. -- 2,702 215,273 3,567 83,609
----------- ------------- ----------------- --------------- -----------
Total Liabilities...... 312,091 2,702 215,273 3,567 83,609
----------- ------------- ----------------- --------------- -----------
Net Assets (variable
life insurance
contract
liabilities).......... $2,244,162 $15,886,053 $7,544,111 $3,337,320 $ 279,373
----------- ------------- ----------------- --------------- -----------
----------- ------------- ----------------- --------------- -----------
Units Owned by
Participants.......... 1,342,893 5,317,459 1,763,634 1,635,586 105,089
Unit Price............. $ 1.671140 $ 2.987527 $ 4.277594 $ 2.040443 $ 2.658432
</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 SIX MONTHS ENDED JUNE 30, 1996 (UNAUDITED)
<TABLE>
<CAPTION>
BOND FUND STOCK FUND
SUB-ACCOUNT SUB-ACCOUNT
------------- -----------
<S> <C> <C>
INVESTMENT INCOME:
Dividends.............. $49,846 $ 41,196
EXPENSES:
Mortality and expense
undertakings.......... (6,946) (21,486)
------------- -----------
Net investment income
(loss).............. 42,900 19,710
------------- -----------
Capital gains income... -- 195,246
------------- -----------
NET REALIZED AND
UNREALIZED GAIN (LOSS)
ON INVESTMENTS:
Net realized gain
(loss) on security
transactions.......... (3,909) 14,014
Net unrealized
appreciation
(depreciation) of
investments during the
period................ (77,001) 288,664
------------- -----------
Net gains (losses) on
investments......... (80,910) 302,678
------------- -----------
Net increase
(decrease) in net
assets resulting
from operations..... $(38,010) $517,634
------------- -----------
------------- -----------
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
22
<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>
INVESTMENT INCOME:
Dividends.............. $ 69,005 $ 241,407 $ 28,616 $ 114,968 $ 2,132
EXPENSES:
Mortality and expense
undertakings.......... (12,355) (71,517) (31,878) (15,278) (933)
----------- ------------- -------- --------------- -----------
Net investment income
(loss).............. 56,650 169,890 (3,262) 99,690 1,199
----------- ------------- -------- --------------- -----------
Capital gains income... -- 359,796 443,649 -- 2,992
----------- ------------- -------- --------------- -----------
NET REALIZED AND
UNREALIZED GAIN (LOSS)
ON INVESTMENTS:
Net realized gain
(loss) on security
transactions.......... -- 208,118 22,379 (776) 8,429
Net unrealized
appreciation
(depreciation) of
investments during the
period................ -- 230,983 277,489 (115,070) 10,689
----------- ------------- -------- --------------- -----------
Net gains (losses) on
investments......... -- 439,101 299,868 (115,846) 19,118
----------- ------------- -------- --------------- -----------
Net increase
(decrease) in net
assets resulting
from operations..... $ 56,650 $ 968,787 $ 740,255 $ (16,156) $23,309
----------- ------------- -------- --------------- -----------
----------- ------------- -------- --------------- -----------
</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 SIX MONTHS ENDED JUNE 30, 1996 (UNAUDITED)
<TABLE>
<CAPTION>
BOND FUND STOCK FUND
SUB-ACCOUNT SUB-ACCOUNT
-------------- -----------
<S> <C> <C>
OPERATIONS:
Net investment income
(loss)................ $ 42,900 $ 19,710
Capital gains income... -- 195,246
Net realized gain
(loss) on security
transactions.......... (3,909) 14,014
Net unrealized
appreciation
(depreciation) of
investments during the
period................ (77,001) 288,664
-------------- -----------
Net increase (decrease)
in net assets
resulting from
operations............ (38,010) 517,634
-------------- -----------
UNIT TRANSACTIONS:
Net transfers.......... (242,273) 152,584
Surrenders............. -- (10,164)
Net loan withdrawals... (34,418) (30,661)
Cost of insurance and
other fees............ (9,175) (18,759)
-------------- -----------
Net increase (decrease)
in net assets
resulting from unit
transactions.......... (285,866) 93,000
-------------- -----------
Total increase
(decrease) in net
assets................ (323,876) 610,634
NET ASSETS:
Beginning of period.... 1,813,222 4,441,168
-------------- -----------
End of period.......... $ 1,489,346 $ 5,051,802
-------------- -----------
-------------- -----------
HARTFORD LIFE INSURANCE COMPANY
STATEMENT OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED DECEMBER 31, 1995
BOND FUND STOCK FUND
SUB-ACCOUNT SUB-ACCOUNT
-------------- -----------
OPERATIONS:
Net investment income
(loss)................ $ 84,715 $ 55,694
Capital gains income... -- 153,099
Net realized gain
(loss) on security
transactions.......... 4,292 56,375
Net unrealized
appreciation
(depreciation) of
investments during the
period................ 154,611 921,139
-------------- -----------
Net increase (decrease)
in net assets
resulting from
operations............ 243,618 1,186,307
-------------- -----------
UNIT TRANSACTIONS:
Net transfers.......... 316,804 (164,722)
Surrenders............. (145,617) (201,816)
Net loan withdrawals... (70,051) (70,797)
Cost of insurance and
other fees............ (21,923) (40,596)
-------------- -----------
Net increase (decrease)
in net assets
resulting from unit
transactions.......... 79,213 (477,931)
-------------- -----------
Total increase
(decrease) in net
assets................ 322,831 708,376
NET ASSETS:
Beginning of period.... 1,490,391 3,732,792
-------------- -----------
End of period.......... $ 1,813,222 $ 4,441,168
-------------- -----------
-------------- -----------
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
24
<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>
OPERATIONS:
Net investment income
(loss)................ $ 56,650 $ 169,890 $ (3,262) $ 99,690 $ 1,199
Capital gains income... -- 359,796 443,649 -- 2,992
Net realized gain
(loss) on security
transactions.......... -- 208,118 22,379 (776) 8,429
Net unrealized
appreciation
(depreciation) of
investments during the
period................ -- 230,983 277,489 (115,070) 10,689
----------- ------------- ----------------- --------------- -----------
Net increase (decrease)
in net assets
resulting from
operations............ 56,650 968,787 740,255 (16,156) 23,309
----------- ------------- ----------------- --------------- -----------
UNIT TRANSACTIONS:
Net transfers.......... 438,336 (568,227) 119,648 (2,466) 100,273
Surrenders............. (1,076,627) (337,983) (557) (54,559) (371)
Net loan withdrawals... (115,264) (118,767) (92,940) (70,507) --
Cost of insurance and
other fees............ (19,694) (81,288) (24,014) (18,617) (779)
----------- ------------- ----------------- --------------- -----------
Net increase (decrease)
in net assets
resulting from unit
transactions.......... (773,249) (1,106,265) 2,137 (146,149) 99,123
----------- ------------- ----------------- --------------- -----------
Total increase
(decrease) in net
assets................ (716,599) (137,478) 742,392 (162,305) 122,432
NET ASSETS:
Beginning of period.... 2,960,761 16,023,531 6,801,719 3,499,625 156,941
----------- ------------- ----------------- --------------- -----------
End of period.......... $2,244,162 $15,886,053 $7,544,111 $3,337,320 $279,373
----------- ------------- ----------------- --------------- -----------
----------- ------------- ----------------- --------------- -----------
MONEY CAPITAL MORTGAGE
MARKET FUND ADVISERS FUND APPRECIATION FUND SECURITIES FUND INDEX FUND
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
----------- ------------- ----------------- --------------- -----------
OPERATIONS:
Net investment income
(loss)................ $ 140,260 $ 401,575 $ 3,059 $ 194,131 $ 2,323
Capital gains income... -- 167,329 302,062 -- 72
Net realized gain
(loss) on security
transactions.......... -- 254,170 86,124 1,992 34,111
Net unrealized
appreciation
(depreciation) of
investments during the
period................ -- 2,787,295 1,196,865 288,183 25,314
----------- ------------- ----------------- --------------- -----------
Net increase (decrease)
in net assets
resulting from
operations............ 140,260 3,610,369 1,588,110 484,306 61,820
----------- ------------- ----------------- --------------- -----------
UNIT TRANSACTIONS:
Net transfers.......... 403,260 (352,659) 28,785 (64,736) (77,047)
Surrenders............. (318,000) (699,062) (127,746) (136,108) (791)
Net loan withdrawals... (198,045) (343,038) (231,488) (69,099) --
Cost of insurance and
other fees............ (141,010) (187,787) (48,115) (44,918) (2,377)
----------- ------------- ----------------- --------------- -----------
Net increase (decrease)
in net assets
resulting from unit
transactions.......... (253,795) (1,582,546) (378,564) (314,861) (80,215)
----------- ------------- ----------------- --------------- -----------
Total increase
(decrease) in net
assets................ (113,535) 2,027,823 1,209,546 169,445 (18,395)
NET ASSETS:
Beginning of period.... 3,074,296 13,995,708 5,592,173 3,330,180 175,336
----------- ------------- ----------------- --------------- -----------
End of period.......... $2,960,761 $16,023,531 $6,801,719 $3,499,625 $156,941
----------- ------------- ----------------- --------------- -----------
----------- ------------- ----------------- --------------- -----------
</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
JUNE 30, 1996 (UNAUDITED)
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 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 Funds are valued at
the closing net asset value per share as determined by the appropriate
Fund as of June 30, 1996.
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>
HARTFORD LIFE INSURANCE COMPANY
SEPARATE ACCOUNT TWO
<PAGE>
SEPARATE ACCOUNT TWO
HARTFORD LIFE INSURANCE COMPANY
STATEMENT OF ASSETS & LIABILITIES
JUNE 30, 1996 (UNAUDITED)
<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 204,622,559
Cost $ 208,652,738
Market Value......... $ 200,169,970 -- --
Hartford Stock Fund,
Inc.
Shares 308,184,627
Cost $ 874,097,407
Market Value......... -- $ 1,156,388,847 --
HVA Money Market Fund,
Inc.
Shares 233,000,887
Cost $ 233,000,887
Market Value......... -- -- $233,000,887
Hartford Advisers Fund,
Inc.
Shares 1,303,326,604
Cost $2,162,674,995
Market Value......... -- -- --
Hartford U.S.
Government Money
Market Fund, Inc.
Shares 1,498,234
Cost $ 1,498,234
Market Value......... -- -- --
Hartford Capital
Appreciation Fund,
Inc.
Shares 353,821,128
Cost $1,013,787,821
Market Value......... -- -- --
Hartford Mortgage
Securities Fund, Inc.
Shares 199,676,072
Cost $ 215,173,964
Market Value......... -- -- --
Hartford Index Fund,
Inc.
Shares 105,981,542
Cost $ 172,772,395
Market Value......... -- -- --
Hartford International
Opportunities Fund,
Inc.
Shares 288,370,463
Cost $ 331,664,081
Market Value......... -- -- --
Hartford Dividend and
Growth Fund, Inc.
Shares 156,710,936
Cost $ 191,471,308
Market Value......... -- -- --
Due from Hartford Life
Insurance Company..... 436,014 9,625 4,586,874
Receivable from fund
shares sold........... 6,310 4,359,541 290
--------------- --------------- ------------
Total Assets........... 200,612,294 1,160,758,013 237,588,051
--------------- --------------- ------------
LIABILITIES:
Due to Hartford Life
Insurance Company..... 6,356 4,359,713 2,120
Payable for fund shares
purchased............. 436,161 9,627 4,580,030
--------------- --------------- ------------
Total Liabilities...... 442,517 4,369,340 4,582,150
--------------- --------------- ------------
Net Assets (variable
annuity contract
liabilities).......... $ 200,169,777 $ 1,156,388,673 $233,005,901
--------------- --------------- ------------
--------------- --------------- ------------
</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 204,622,559
Cost $ 208,652,738
Market Value......... -- -- -- -- --
Hartford Stock Fund,
Inc.
Shares 308,184,627
Cost $ 874,097,407
Market Value......... -- -- -- -- --
HVA Money Market Fund,
Inc.
Shares 233,000,887
Cost $ 233,000,887
Market Value......... -- -- -- -- --
Hartford Advisers Fund,
Inc.
Shares 1,303,326,604
Cost $2,162,674,995
Market Value......... $2,623,322,755 -- -- -- --
Hartford U.S.
Government Money
Market Fund, Inc.
Shares 1,498,234
Cost $ 1,498,234
Market Value......... -- $1,498,234 -- -- --
Hartford Capital
Appreciation Fund,
Inc.
Shares 353,821,128
Cost $1,013,787,821
Market Value......... -- -- $1,281,023,544 -- --
Hartford Mortgage
Securities Fund, Inc.
Shares 199,676,072
Cost $ 215,173,964
Market Value......... -- -- -- $206,842,447 --
Hartford Index Fund,
Inc.
Shares 105,981,542
Cost $ 172,772,395
Market Value......... -- -- -- -- $229,097,120
Hartford International
Opportunities Fund,
Inc.
Shares 288,370,463
Cost $ 331,664,081
Market Value......... -- -- -- -- --
Hartford Dividend and
Growth Fund, Inc.
Shares 156,710,936
Cost $ 191,471,308
Market Value......... -- -- -- -- --
Due from Hartford Life
Insurance Company..... 1,282,921 401 14,386,636 29,097 507
Receivable from fund
shares sold........... 5,621 330 174,239 55,152 11,977,231
--------------- ----------- ------------------ --------------- ------------
Total Assets........... 2,624,611,297 1,498,965 1,295,584,419 206,926,696 241,074,858
--------------- ----------- ------------------ --------------- ------------
LIABILITIES:
Due to Hartford Life
Insurance Company..... 5,640 38 174,375 56,763 11,977,334
Payable for fund shares
purchased............. 1,283,163 309 14,386,890 23,411 507
--------------- ----------- ------------------ --------------- ------------
Total Liabilities...... 1,288,803 347 14,561,265 80,174 11,977,841
--------------- ----------- ------------------ --------------- ------------
Net Assets (variable
annuity contract
liabilities).......... $2,623,322,494 $1,498,618 $1,281,023,154 $206,846,522 $229,097,017
--------------- ----------- ------------------ --------------- ------------
--------------- ----------- ------------------ --------------- ------------
<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......... $390,753,511 --
Hartford Dividend and
Growth Fund, Inc.
Shares
Cost
Market Value......... -- $221,029,805
Due from Hartford Life
Insurance Company..... 222,934 1,213,928
Receivable from fund
shares sold........... 316 214
----------------- -------------
Total Assets........... 390,976,761 222,243,947
----------------- -------------
LIABILITIES:
Due to Hartford Life
Insurance Company..... 316 195
Payable for fund shares
purchased............. 222,889 1,213,888
----------------- -------------
Total Liabilities...... 223,205 1,214,083
----------------- -------------
Net Assets (variable
annuity contract
liabilities).......... $390,753,556 $221,029,864
----------------- -------------
----------------- -------------
</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)
JUNE 30, 1996 (UNAUDITED)
<TABLE>
<CAPTION>
CALVERT
RESPONSIBLY INVESTED INTERNATIONAL SMITH BARNEY
BALANCED PORTFOLIO ADVISERS FUND DAILY DIVIDEND FUND
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
------------------------------------ ------------- -------------------
<S> <C> <C> <C>
ASSETS:
Investments:
Calvert Responsibly
Invested Balanced
Portfolio
Shares 1,244,876
Cost $ 1,935,110
Market Value......... $2,186,001 -- --
Hartford International
Advisers Fund, Inc.
Shares 16,959,417
Cost $18,957,951
Market Value......... -- $19,568,623 --
Smith Barney Daily
Dividend Fund, Inc.
Shares 580,096
Cost $ 580,096
Market Value......... -- -- $580,096
Smith Barney
Appreciation Fund,
Inc.
Shares 12,422
Cost $ 85,185
Market Value......... -- -- --
Smith Barney Government
and Agencies Fund
Shares 43,265
Cost $ 43,265
Market Value......... -- -- --
TCI Advantage Fund
Shares 23,777
Cost $ 143,994
Market Value......... -- -- --
TCI Growth Fund
Shares 117,253
Cost $ 1,354,818
Market Value......... -- -- --
Fidelity VIP Overseas
Fund
Shares 39,601
Cost $ 679,579
Market Value......... -- -- --
Fidelity VIP Asset
Manager
Shares 73,804
Cost $ 1,120,696
Market Value......... -- -- --
Fidelity VIP II
Contrafund Fund
Shares 333,247
Cost $ 4,676,160
Market Value......... -- -- --
Fidelity VIP Growth
Fund
Shares 191,581
Cost $ 5,620,079
Market Value......... -- -- --
Dividends receivable... -- -- 530
Due from Hartford Life
Insurance Company..... 1,167 135,432 --
Receivable from fund
shares sold........... -- 22 --
----------- ------------- --------
Total Assets........... 2,187,168 19,704,077 580,626
----------- ------------- --------
LIABILITIES:
Due to Hartford Life
Insurance Company..... -- 22 381
Payable for fund shares
purchased............. 859 135,412 --
----------- ------------- --------
Total Liabilities...... 859 135,434 381
----------- ------------- --------
Net Assets (variable
annuity contract
liabilities).......... $2,186,309 $19,568,643 $580,245
----------- ------------- --------
----------- ------------- --------
</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 1,244,876
Cost $ 1,935,110
Market Value......... -- -- -- -- --
Hartford International
Advisers Fund, Inc.
Shares 16,959,417
Cost $18,957,951
Market Value......... -- -- -- -- --
Smith Barney Daily
Dividend Fund, Inc.
Shares 580,096
Cost $ 580,096
Market Value......... -- -- -- -- --
Smith Barney
Appreciation Fund,
Inc.
Shares 12,422
Cost $ 85,185
Market Value......... $ 159,707 -- -- -- --
Smith Barney Government
and Agencies Fund
Shares 43,265
Cost $ 43,265
Market Value......... -- $ 43,265 -- -- --
TCI Advantage Fund
Shares 23,777
Cost $ 143,994
Market Value......... -- -- $ 143,138 -- --
TCI Growth Fund
Shares 117,253
Cost $ 1,354,818
Market Value......... -- -- -- $ 1,272,190 --
Fidelity VIP Overseas
Fund
Shares 39,601
Cost $ 679,579
Market Value......... -- -- -- -- $ 708,074
Fidelity VIP Asset
Manager
Shares 73,804
Cost $ 1,120,696
Market Value......... -- -- -- -- --
Fidelity VIP II
Contrafund Fund
Shares 333,247
Cost $ 4,676,160
Market Value......... -- -- -- -- --
Fidelity VIP Growth
Fund
Shares 191,581
Cost $ 5,620,079
Market Value......... -- -- -- -- --
Dividends receivable... -- 47 -- -- --
Due from Hartford Life
Insurance Company..... -- -- 45 18,009 756
Receivable from fund
shares sold........... 14 -- -- -- --
--------------- ------- -------- --------------- ------------
Total Assets........... 159,721 43,312 143,183 1,290,199 708,830
--------------- ------- -------- --------------- ------------
LIABILITIES:
Due to Hartford Life
Insurance Company..... 108 43 -- -- --
Payable for fund shares
purchased............. -- -- 45 18,009 756
--------------- ------- -------- --------------- ------------
Total Liabilities...... 108 43 45 18,009 756
--------------- ------- -------- --------------- ------------
Net Assets (variable
annuity contract
liabilities).......... $ 159,613 $ 43,269 $ 143,138 $ 1,272,190 $ 708,074
--------------- ------- -------- --------------- ------------
--------------- ------- -------- --------------- ------------
<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......... $ 1,153,553 -- --
Fidelity VIP II
Contrafund Fund
Shares
Cost
Market Value......... -- $ 4,925,387 --
Fidelity VIP Growth
Fund
Shares
Cost
Market Value......... -- -- $ 5,758,919
Dividends receivable... -- -- --
Due from Hartford Life
Insurance Company..... 2,570 47,235 197,796
Receivable from fund
shares sold........... -- -- --
----------------- ------------- -------------
Total Assets........... 1,156,123 4,972,622 5,956,715
----------------- ------------- -------------
LIABILITIES:
Due to Hartford Life
Insurance Company..... -- -- --
Payable for fund shares
purchased............. 2,569 47,234 197,794
----------------- ------------- -------------
Total Liabilities...... 2,569 47,234 197,794
----------------- ------------- -------------
Net Assets (variable
annuity contract
liabilities).......... $ 1,153,554 $ 4,925,388 $ 5,758,921
----------------- ------------- -------------
----------------- ------------- -------------
</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)
JUNE 30, 1996 (UNAUDITED)
<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%....................... 302,416 $3.532013 $ 1,068,137
Bond Fund Non-Qualified 1.00%................... 2,209,139 3.478313 7,684,077
Bond Fund 1.25%................................. 96,193,885 1.834619 176,479,130
Bond Fund .25%.................................. 164,465 1.215422 199,894
Stock Fund Qualified 1.00%...................... 955,526 6.171238 5,896,778
Stock Fund Non-Qualified 1.00%.................. 4,187,175 5.901059 24,708,766
Stock Fund 1.25%................................ 311,389,773 3.209135 999,291,820
Stock Fund .25%................................. 1,581,854 1.677818 2,654,062
Money Market Fund Qualified 1.00%............... 981,706 2.415055 2,370,875
Money Market Fund Non-Qualified 1.00%........... 9,561,247 2.416201 23,101,894
Money Market Fund 1.25%......................... 129,614,843 1.556238 201,711,544
Money Market Fund .25%.......................... 411,082 1.149710 472,625
Advisers Fund Qualified 1.00%................... 3,754,671 3.991887 14,988,223
Advisers Fund Non-Qualified 1.00%............... 13,361,179 3.991887 53,336,315
Advisers Fund 1.25%............................. 935,125,969 2.674950 2,501,415,210
Advisers Fund .25%.............................. 1,535,249 1.484478 2,279,044
U.S. Government Money Market Fund Qualified
1.00%.......................................... 18,568 1.927650 35,792
U.S. Government Money Market Fund 1.25%......... 47,806 1.493960 71,420
Capital Appreciation Fund Qualified 1.00%....... 903,303 6.240341 5,636,916
Capital Appreciation Fund Non-Qualified 1.00%... 3,565,506 6.237503 22,239,857
Capital Appreciation Fund 1.25%................. 315,700,486 3.721901 1,175,005,954
Capital Appreciation Fund .25%.................. 4,023,426 1.781983 7,169,677
Mortgage Securities Fund Qualified 1.00%........ 934,756 2.386378 2,230,682
Mortgage Securities Fund Non-Qualified 1.00%.... 8,906,490 2.386378 21,254,251
Mortgage Securities Fund 1.25%.................. 96,177,469 1.866372 179,502,935
Mortgage Securities Fund .25%................... 127,728 1.200755 153,369
Index Fund 1.25%................................ 84,094,454 2.572942 216,370,154
Index Fund .25%................................. 383,719 1.640635 629,543
International Opportunities Fund Qualified
1.00%.......................................... 401,630 1.446207 580,840
International Opportunities Fund Non-Qualified
1.00%.......................................... 1,827,464 1.446157 2,642,799
International Opportunities Fund 1.25%.......... 263,960,297 1.424675 376,057,635
International Opportunities Fund .25%........... 1,580,420 1.586215 2,506,886
Dividend and Growth Fund Qualified 1.00%........ 209,378 1.504441 314,997
Dividend and Growth Fund Non-Qualified 1.00%.... 1,140,203 1.504441 1,715,369
Dividend and Growth Fund 1.25%.................. 143,293,511 1.495781 214,335,711
Dividend and Growth Fund .25%................... 267,339 1.530686 409,212
International Advisers Fund Qualified 1.00%..... 34,617 1.208790 41,845
International Advisers Fund Non-Qualified
1.00%.......................................... 221,746 1.208790 268,045
International Advisers Fund 1.25%............... 15,974,822 1.204772 19,246,018
</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%................ 10,431 $1.220933 $ 12,735
Smith Barney Daily Dividend, Inc. Qualified
1.00%.......................................... 81,943 2.618154 214,540
Smith Barney Daily Dividend, Inc. Non-Qualified
1.00%.......................................... 134,984 2.709246 365,705
Smith Barney Appreciation Fund, Inc. Qualified
1.00%.......................................... 23,655 6.747463 159,613
Smith Barney Government and Agencies, Inc.
Qualified 1.0%................................. 18,334 2.360084 43,269
--------------
Sub-total Individual Sub-Accounts............... 6,266,874,163
--------------
GROUP SUB-ACCOUNTS:
Bond Fund Qualified 1.00% QP.................... 1,346,416 4.136869 5,569,947
Bond Fund 1.25% DCII............................ 1,544,228 3.996167 6,170,993
Bond Fund .15% DCII............................. 298,721 3.785703 1,130,870
Stock Fund Qualified 1.00% QP................... 3,636,017 10.319954 37,523,531
Stock Fund Qualified .825% QP................... 1,302,164 8.295577 10,802,199
Stock Fund Non-Qualified 1.00% NQ............... 94,688 8.097228 766,707
Stock Fund Non-Qualified .825% NQ............... 807,680 8.310146 6,711,939
Stock Fund 1.25% DCII........................... 4,728,819 9.967695 47,135,423
Stock Fund .15% DCII............................ 853,423 7.781835 6,641,198
Money Market Fund Qualified .375% QP............ 2,395 3.021857 7,237
Money Market Fund 1.25% DCII.................... 1,249,623 2.672847 3,340,051
Money Market Fund .15% DCII..................... 286,205 2.613621 748,030
Advisers Fund 1.25% DCII........................ 10,068,975 3.866982 38,936,543
Advisers Fund .15% DCII......................... 652,549 4.464175 2,913,093
U.S. Government Money Market Fund 1.25% DCII.... 536,404 1.865045 1,000,418
U.S. Government Money Market Fund .15% DCII..... 57,092 2.160335 123,338
Capital Appreciation Fund 1.25% DCII............ 10,202,542 6.061736 61,845,116
Capital Appreciation Fund .15% DCII............. 779,233 6.923365 5,394,915
Mortgage Securities Fund 1.25% DCII............. 1,132,419 2.318903 2,625,969
Mortgage Securities Fund .15% DCII.............. 138,651 2.630125 364,668
Index Fund 1.25% DCII........................... 3,877,634 2.570665 9,968,098
Index Fund .15% DCII............................ 331,857 2.804164 930,582
International Opportunities Fund 1.25% DCII..... 5,494,776 1.424877 7,829,380
International Opportunities Fund .15% DCII...... 409,236 1.521734 622,749
Dividend and Growth Fund 1.25% DCII............. 2,766,025 1.345329 3,721,213
Calvert Responsibly Invested Balanced Portfolio
1.25% DCII..................................... 1,059,315 1.861649 1,972,072
TCI Advantage Fund 1.25% DCII................... 123,703 1.084273 134,128
TCI Growth Fund 1.25% DCII...................... 1,160,541 1.088959 1,263,781
Fidelity VIP Overseas Fund 1.25% DCII........... 643,685 1.100032 708,074
Fidelity VIP II Asset Manager Fund 1.25% DCII... 1,009,447 1.142759 1,153,554
Fidelity VIP II Contrafund Fund 1.25% DCII...... 4,167,020 1.181993 4,925,388
</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)
JUNE 30, 1996 (UNAUDITED)
<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............. 4,878,292 $1.180520 $ 5,758,921
--------------
Sub-total Group Sub-Accounts.................... 278,740,125
--------------
TOTAL ACCUMULATION PERIOD......................... 6,545,614,288
--------------
ANNUITY CONTRACTS IN THE ANNUITY PERIOD:
INDIVIDUAL SUB-ACCOUNTS:
Bond Fund Non-Qualified 1.00%................... 192 3.478313 666
Bond Fund 1.25%................................. 164,267 1.834619 301,367
Stock Fund Non-Qualified 1.00%.................. 10,308 5.901059 60,828
Stock Fund 1.25%................................ 313,306 3.209135 1,005,442
Money Market Fund Qualified 1.00%............... 23,071 2.415055 55,717
Money Market Fund Non-Qualified 1.00%........... 104,611 2.416201 252,761
Money Market Fund 1.25%......................... 324,415 1.556238 504,867
Advisers Fund Qualified 1.00%................... 4,415 3.991887 17,622
Advisers Fund Non-Qualified 1.00%............... 67,877 3.991887 270,959
Advisers Fund 1.25%............................. 879,919 2.674950 2,353,739
U.S. Government Money Market Fund Qualified
1.00%.......................................... 14,777 1.927650 28,486
Capital Appreciation Fund Non-Qualified 1.00%... 3,885 6.237503 24,230
Capital Appreciation Fund 1.25%................. 143,611 3.721901 534,506
Mortgage Securities Fund Non-Qualified 1.00%.... 88,653 2.386378 211,559
Mortgage Securities Fund 1.25%.................. 87,140 1.866372 162,636
Index Fund 1.25%................................ 58,210 2.572942 149,771
International Opportunities Fund 1.25%.......... 166,155 1.424675 236,716
Dividend and Growth Fund 1.25%.................. 218,455 1.495781 326,761
--------------
Sub-total Individual Sub-Accounts............... 6,498,633
--------------
GROUP SUB-ACCOUNTS:
Bond Fund Qualified 1.00% QP.................... 74,031 4.136869 306,257
Bond Fund 1.25% DCII............................ 297,821 3.996167 1,190,143
Bond Fund 1.00% DCII............................ 12,605 4.120528 51,938
Bond Fund .15% DCII............................. 4,321 3.785703 16,359
Stock Fund Qualified 1.00% QP................... 230,112 10.319954 2,374,744
Stock Fund Qualified .825% QP................... 53,969 8.295577 447,705
Stock Fund Non-Qualified 1.00% NQ............... 629 8.097228 5,092
Stock Fund Non-Qualified .825% NQ............... 57,469 8.310146 477,579
Stock Fund 1.25% DCII........................... 978,722 9.967695 9,755,598
Stock Fund 1.00% DCII........................... 4,333 10.287650 44,572
Stock Fund .15% DCII............................ 10,883 7.781835 84,692
Money Market Fund 1.25% DCII.................... 164,730 2.672847 440,298
Advisers Fund 1.25% DCII........................ 1,735,308 3.866982 6,710,404
</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......................... 22,702 $4.464175 $ 101,344
U.S. Government Money Market Fund 1.25% DCII.... 128,236 1.865045 239,166
Capital Appreciation Fund 1.25% DCII............ 516,428 6.061736 3,130,452
Capital Appreciation Fund .15% DCII............. 5,998 6.923365 41,530
Mortgage Securities Fund 1.25% DCII............. 146,816 2.318903 340,451
Index Fund 1.25% DCII........................... 408,014 2.570665 1,048,868
International Opportunities Fund 1.25% DCII..... 175,062 1.424877 249,442
International Opportunities Fund .15% DCII...... 17,815 1.521734 27,110
Dividend and Growth Fund Sub-Account............ 153,569 1.345329 206,601
Calvert Responsibly Invested Balanced Portfolio
1.25% DCII..................................... 115,079 1.861649 214,237
TCI Advantage Fund Sub-Account.................. 8,311 1.084273 9,011
TCI Growth Fund Sub-Account..................... 7,722 1.088959 8,409
--------------
Sub-total Group Sub-Accounts.................... 27,522,002
--------------
TOTAL ANNUITY PERIOD.............................. 34,020,635
--------------
GRAND TOTAL....................................... $6,579,634,923
--------------
--------------
</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 SIX MONTHS ENDED JUNE 30, 1996 (UNAUDITED)
<TABLE>
<CAPTION>
MONEY
BOND FUND STOCK FUND MARKET FUND
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
-------------- ------------- ------------
<S> <C> <C> <C>
INVESTMENT INCOME:
Dividends.............. $ 6,352,971 $ 9,049,277 $5,820,070
EXPENSES:
Mortality and expense
undertakings.......... (1,209,079) (6,388,418) (1,409,112)
-------------- ------------- ------------
Net investment income
(loss).............. 5,143,892 2,660,859 4,410,958
-------------- ------------- ------------
Capital gains income... -- 41,100,004 --
-------------- ------------- ------------
NET REALIZED AND
UNREALIZED GAIN (LOSS)
ON INVESTMENTS:
Net realized gain
(loss) on security
transactions.......... (269,338) 733,550 --
Net unrealized
appreciation
(depreciation) of
investments during the
period................ (9,913,339) 67,248,116 --
-------------- ------------- ------------
Net gains (losses) on
investments......... (10,182,677) 67,981,666 --
-------------- ------------- ------------
Net increase
(decrease) in net
assets resulting
from operations..... $ (5,038,785) $ 111,742,529 $4,410,958
-------------- ------------- ------------
-------------- ------------- ------------
</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.............. $ 37,656,910 $35,927 $ 4,726,077 $ 7,153,420
EXPENSES:
Mortality and expense
undertakings.......... (15,281,032) (8,806) (7,122,838) (1,291,285)
-------------- ------- ----------------- ---------------
Net investment income
(loss).............. 22,375,878 27,121 (2,396,761) 5,862,135
-------------- ------- ----------------- ---------------
Capital gains income... 53,115,059 -- 70,324,118 --
-------------- ------- ----------------- ---------------
NET REALIZED AND
UNREALIZED GAIN (LOSS)
ON INVESTMENTS:
Net realized gain
(loss) on security
transactions.......... 252,807 -- 1,065,457 (207,578)
Net unrealized
appreciation
(depreciation) of
investments during the
period................ 69,580,336 -- 47,616,396 (7,006,817)
-------------- ------- ----------------- ---------------
Net gains (losses) on
investments......... 69,833,143 -- 48,681,853 (7,214,395)
-------------- ------- ----------------- ---------------
Net increase
(decrease) in net
assets resulting
from operations..... $ 145,324,080 $27,121 $116,609,210 $(1,352,260)
-------------- ------- ----------------- ---------------
-------------- ------- ----------------- ---------------
<CAPTION>
INTERNATIONAL DIVIDEND AND
INDEX FUND OPPORTUNITIES FUND GROWTH FUND
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
------------- ------------------ -------------
<S> <C> <C> <C>
INVESTMENT INCOME:
Dividends.............. $ 2,085,546 $ 3,936,145 $ 2,142,380
EXPENSES:
Mortality and expense
undertakings.......... (1,201,297) (2,237,944) (1,038,046)
------------- ------------------ -------------
Net investment income
(loss).............. 884,249 1,698,201 1,104,334
------------- ------------------ -------------
Capital gains income... 3,292,866 9,589,596 2,810,352
------------- ------------------ -------------
NET REALIZED AND
UNREALIZED GAIN (LOSS)
ON INVESTMENTS:
Net realized gain
(loss) on security
transactions.......... 679,430 (10,960) 123
Net unrealized
appreciation
(depreciation) of
investments during the
period................ 12,354,572 13,294,734 11,997,646
------------- ------------------ -------------
Net gains (losses) on
investments......... 13,034,002 13,283,774 11,997,769
------------- ------------------ -------------
Net increase
(decrease) in net
assets resulting
from operations..... $ 17,211,117 $24,571,571 $ 15,912,455
------------- ------------------ -------------
------------- ------------------ -------------
</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 SIX MONTHS ENDED JUNE 30, 1996 (UNAUDITED)
<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.............. $ -- $ 254,013 $ 13,882
EXPENSES:
Mortality and expense
undertakings.......... (12,567) (84,470) (2,859)
------- ------------- ------------
Net investment income
(loss).............. (12,567) 169,543 11,023
------- ------------- ------------
Capital gains income... -- -- --
------- ------------- ------------
NET REALIZED AND
UNREALIZED GAIN (LOSS)
ON INVESTMENTS:
Net realized gain
(loss) on security
transactions.......... 6,174 (1,484) --
Net unrealized
appreciation
(depreciation) of
investments during the
period................ 59,649 432,828 --
------- ------------- ------------
Net gains (losses) on
investments......... 65,823 431,344 --
------- ------------- ------------
Net increase
(decrease) in net
assets resulting
from operations..... $ 53,256 $ 600,887 $ 11,023
------- ------------- ------------
------- ------------- ------------
</TABLE>
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.............. $-- $ 1,014 $ 5,795 $ 100,570 $3,709
EXPENSES:
Mortality and expense
undertakings.......... (771) (213) (564) (6,063) (3,044)
------- ------ ------ --------------- -------
Net investment income
(loss).............. (771) 801 5,231 94,507 665
------- ------ ------ --------------- -------
Capital gains income... -- -- -- -- 4,080
------- ------ ------ --------------- -------
NET REALIZED AND
UNREALIZED GAIN (LOSS)
ON INVESTMENTS:
Net realized gain
(loss) on security
transactions.......... 54 -- 110 10,092 435
Net unrealized
appreciation
(depreciation) of
investments during the
period................ 11,922 -- (2,050) (89,273) 25,037
------- ------ ------ --------------- -------
Net gains (losses) on
investments......... 11,976 -- (1,940) (79,181) 25,472
------- ------ ------ --------------- -------
Net increase
(decrease) in net
assets resulting
from operations..... $11,205 $ 801 $ 3,291 $ 15,326 $30,217
------- ------ ------ --------------- -------
------- ------ ------ --------------- -------
<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.............. $ 27,849 $ 21,249 $ 73,883
EXPENSES:
Mortality and expense
undertakings.......... (4,796) (21,058) (24,113)
------- -------- -------------
Net investment income
(loss).............. 23,053 191 49,770
------- -------- -------------
Capital gains income... -- -- 115,329
------- -------- -------------
NET REALIZED AND
UNREALIZED GAIN (LOSS)
ON INVESTMENTS:
Net realized gain
(loss) on security
transactions.......... 7 308 168
Net unrealized
appreciation
(depreciation) of
investments during the
period................ 13,998 232,002 173,286
------- -------- -------------
Net gains (losses) on
investments......... 14,005 232,310 173,454
------- -------- -------------
Net increase
(decrease) in net
assets resulting
from operations..... $ 37,058 $ 232,501 $ 338,553
------- -------- -------------
------- -------- -------------
</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 SIX MONTHS ENDED JUNE 30, 1996 (UNAUDITED)
<TABLE>
<CAPTION>
MONEY
BOND FUND STOCK FUND MARKET FUND
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
------------ -------------- ------------
<S> <C> <C> <C>
OPERATIONS:
Net investment income
(loss)................ $ 5,143,892 $ 2,660,859 $ 4,410,958
Capital gains income... -- 41,100,004 --
Net realized gain
(loss) on security
transactions.......... (269,338) 733,550 --
Net unrealized
appreciation
(depreciation) of
investments during the
period................ (9,913,339) 67,248,116 --
------------ -------------- ------------
Net increase (decrease)
in net assets
resulting from
operations............ (5,038,785) 111,742,529 4,410,958
------------ -------------- ------------
UNIT TRANSACTIONS:
Purchases.............. 17,097,220 87,784,873 36,984,047
Net transfers.......... (15,149,050) 16,495,036 23,462,760
Surrenders............. (8,092,062) (24,322,408) (20,377,211 )
Net annuity
transactions.......... (10,368) (193,127) (114,075 )
------------ -------------- ------------
Net increase (decrease)
in net assets
resulting from unit
transactions.......... (6,154,260) 79,764,374 39,955,521
------------ -------------- ------------
Total increase
(decrease) in net
assets................ (11,193,045) 191,506,903 44,366,479
NET ASSETS:
Beginning of period.... 211,362,822 964,881,770 188,639,422
------------ -------------- ------------
End of period.......... $200,169,777 $1,156,388,673 $233,005,901
------------ -------------- ------------
------------ -------------- ------------
HARTFORD LIFE INSURANCE COMPANY
STATEMENT OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED DECEMBER 31, 1995
MONEY
BOND FUND STOCK FUND MARKET FUND
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
------------ -------------- ------------
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
------------ -------------- ------------
------------ -------------- ------------
</TABLE>
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)................ $ 22,375,878 $ 27,121 $ (2,396,761) $ 5,862,135 $ 884,249 $ 1,698,201
Capital gains income... 53,115,059 -- 70,324,118 -- 3,292,866 9,589,596
Net realized gain
(loss) on security
transactions.......... 252,807 -- 1,065,457 (207,578) 679,430 (10,960)
Net unrealized
appreciation
(depreciation) of
investments during the
period................ 69,580,336 -- 47,616,396 (7,006,817) 12,354,572 13,294,734
-------------- ----------- ----------------- --------------- ------------- ------------------
Net increase (decrease)
in net assets
resulting from
operations............ 145,324,080 27,121 116,609,210 (1,352,260) 17,211,117 24,571,571
-------------- ----------- ----------------- --------------- ------------- ------------------
UNIT TRANSACTIONS:
Purchases.............. 178,439,483 122,466 111,557,327 5,920,435 26,344,725 23,860,551
Net transfers.......... 9,568,614 (164,297) 5,660,251 (9,920,126) 24,072,247 22,192,441
Surrenders............. (67,416,163 ) (19,945) (28,260,824) (9,160,107) (3,919,453) (8,220,210)
Net annuity
transactions.......... 188,690 (8,603) 485,538 (57,158) (6,991) 41,238
-------------- ----------- ----------------- --------------- ------------- ------------------
Net increase (decrease)
in net assets
resulting from unit
transactions.......... 120,780,624 (70,379) 89,442,292 (13,216,956) 46,490,528 37,874,020
-------------- ----------- ----------------- --------------- ------------- ------------------
Total increase
(decrease) in net
assets................ 266,104,704 (43,258) 206,051,502 (14,569,216) 63,701,645 62,445,591
NET ASSETS:
Beginning of period.... 2,357,217,790 1,541,876 1,074,971,652 221,415,738 165,395,372 328,307,965
-------------- ----------- ----------------- --------------- ------------- ------------------
End of period.......... $2,623,322,494 $1,498,618 $1,281,023,154 $206,846,522 $ 229,097,017 $390,753,556
-------------- ----------- ----------------- --------------- ------------- ------------------
-------------- ----------- ----------------- --------------- ------------- ------------------
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)................ $ 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
-------------- ----------- ----------------- --------------- ------------- ------------------
-------------- ----------- ----------------- --------------- ------------- ------------------
<CAPTION>
DIVIDEND AND
GROWTH FUND
SUB-ACCOUNT
-------------
<S> <C>
OPERATIONS:
Net investment income
(loss)................ $ 1,104,334
Capital gains income... 2,810,352
Net realized gain
(loss) on security
transactions.......... 123
Net unrealized
appreciation
(depreciation) of
investments during the
period................ 11,997,646
-------------
Net increase (decrease)
in net assets
resulting from
operations............ 15,912,455
-------------
UNIT TRANSACTIONS:
Purchases.............. 51,121,819
Net transfers.......... 41,198,196
Surrenders............. (3,201,544)
Net annuity
transactions.......... 419,734
-------------
Net increase (decrease)
in net assets
resulting from unit
transactions.......... 89,538,205
-------------
Total increase
(decrease) in net
assets................ 105,450,660
NET ASSETS:
Beginning of period.... 115,579,204
-------------
End of period.......... $221,029,864
-------------
-------------
DIVIDEND AND
GROWTH FUND
SUB-ACCOUNT
-------------
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
-------------
-------------
</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 SIX MONTHS ENDED JUNE 30, 1996 (UNAUDITED)
<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)................ $ (12,567) $ 169,543 $ 11,023
Capital gains income... -- -- --
Net realized gain
(loss) on security
transactions.......... 6,174 (1,484) --
Net unrealized
appreciation
(depreciation) of
investments during the
period................ 59,649 432,828 --
--------------- ------------- ------------
Net increase (decrease)
in net assets
resulting from
operations............ 53,256 600,887 11,023
--------------- ------------- ------------
UNIT TRANSACTIONS:
Purchases.............. 251,177 5,314,642 --
Net transfers.......... 46,360 6,218,346 --
Surrenders............. (46,591) (162,770) (125)
Net annuity
transactions.......... 118,604 -- --
--------------- ------------- ------------
Total increase
(decrease) in net
assets resulting from
unit transactions..... 369,550 11,370,218 (125)
--------------- ------------- ------------
Total increase
(decrease) in net
assets................ 422,806 11,971,105 10,898
NET ASSETS:
Beginning of period.... 1,763,503 7,597,538 569,347
--------------- ------------- ------------
End of period.......... $ 2,186,309 $ 19,568,643 $ 580,245
--------------- ------------- ------------
--------------- ------------- ------------
HARTFORD LIFE INSURANCE COMPANY
STATEMENT OF CHANGES IN NET ASSETS -- (CONTINUED)
FOR THE YEAR ENDED DECEMBER 31, 1995
CALVERT
RESPONSIBLY SMITH BARNEY
INVESTED DAILY
BALANCED INTERNATIONAL DIVIDEND
PORTFOLIO ADVISERS FUND FUND
SUB-ACCOUNT SUB-ACCOUNT* SUB-ACCOUNT
--------------- ------------- ------------
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
--------------- ------------- ------------
--------------- ------------- ------------
* From inception, March
31, 1995, to December
31, 1995.
** From inception, July
1, 1995, to December
31, 1995.
</TABLE>
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)................ $ (771) $ 801 $ 5,231 $ 94,507 $ 665
Capital gains income... -- -- -- -- 4,080
Net realized gain
(loss) on security
transactions.......... 54 -- 110 10,092 435
Net unrealized
appreciation
(depreciation) of
investments during the
period................ 11,922 -- (2,050) (89,273) 25,037
-------- ------- -------- --------------- --------------
Net increase (decrease)
in net assets
resulting from
operations............ 11,205 801 3,291 15,326 30,217
-------- ------- -------- --------------- --------------
UNIT TRANSACTIONS:
Purchases.............. -- -- 21,983 104,301 104,659
Net transfers.......... -- -- 71,037 460,271 408,264
Surrenders............. (26) (1) (21) (1,057) (21,959)
Net annuity
transactions.......... -- -- (73) (73) --
-------- ------- -------- --------------- --------------
Total increase
(decrease) in net
assets resulting from
unit transactions..... (26) (1) 92,926 563,442 490,964
-------- ------- -------- --------------- --------------
Total increase
(decrease) in net
assets................ 11,179 800 96,217 578,768 521,181
NET ASSETS:
Beginning of period.... 148,434 42,469 46,921 693,422 186,893
-------- ------- -------- --------------- --------------
End of period.......... $ 159,613 $ 43,269 $ 143,138 $ 1,272,190 $708,074
-------- ------- -------- --------------- --------------
-------- ------- -------- --------------- --------------
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**
----------------- -------------------- ------------------ --------------- --------------
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
-------- ------- -------- --------------- --------------
-------- ------- -------- --------------- --------------
* From inception, March
31, 1995, to December
31, 1995.
** From inception, July
1, 1995, to December
31, 1995.
<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)................ $ 23,053 $ 191 $ 49,770
Capital gains income... -- -- 115,329
Net realized gain
(loss) on security
transactions.......... 7 308 168
Net unrealized
appreciation
(depreciation) of
investments during the
period................ 13,998 232,002 173,286
------------------ -------------- -------------
Net increase (decrease)
in net assets
resulting from
operations............ 37,058 232,501 338,553
------------------ -------------- -------------
UNIT TRANSACTIONS:
Purchases.............. 108,627 442,835 609,323
Net transfers.......... 672,415 2,372,962 2,779,050
Surrenders............. (3,824) (108,603) (172,491)
Net annuity
transactions.......... -- -- --
------------------ -------------- -------------
Total increase
(decrease) in net
assets resulting from
unit transactions..... 777,218 2,707,194 3,215,882
------------------ -------------- -------------
Total increase
(decrease) in net
assets................ 814,276 2,939,695 3,554,435
NET ASSETS:
Beginning of period.... 339,278 1,985,693 2,204,486
------------------ -------------- -------------
End of period.......... $ 1,153,554 $ 4,925,388 $ 5,758,921
------------------ -------------- -------------
------------------ -------------- -------------
FIDELITY VIP
II
FIDELITY VIP II CONTRAFUND FIDELITY VIP
ASSET MANAGER FUND FUND GROWTH FUND
SUB-ACCOUNT** SUB-ACCOUNT** SUB-ACCOUNT**
------------------ -------------- -------------
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
------------------ -------------- -------------
------------------ -------------- -------------
* From inception, March
31, 1995, to December
31, 1995.
** From inception, July
1, 1995, to December
31, 1995.
</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
JUNE 30, 1996 (UNAUDITED)
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 June 30, 1996.
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>
HARTFORD LIFE INSURANCE COMPANY
SEPARATE ACCOUNT VARIABLE LIFE ONE
<PAGE>
Separate Account Variable Life One
HARTFORD LIFE INSURANCE COMPANY
STATEMENT OF ASSETS & LIABILITIES
JUNE 30, 1996 (UNAUDITED)
<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 1,983,091
Cost $ 1,933,366
Market Value......... $1,938,941 -- -- --
Hartford Stock Fund,
Inc.
Shares 2,773,357
Cost $ 8,870,198
Market Value......... -- $10,406,354 -- --
HVA Money Market Fund,
Inc.
Shares 11,234,338
Cost $11,234,338
Market Value......... -- -- $11,234,340 --
Hartford Advisers Fund,
Inc.
Shares 3,304,829
Cost $ 5,915,154
Market Value......... -- -- -- $6,651,929
Hartford Capital
Appreciation Fund,
Inc.
Shares 3,597,943
Cost $11,616,289
Market Value......... -- -- -- --
Hartford Mortgage
Securities Fund, Inc.
Shares 746,635
Cost $ 766,352
Market Value......... -- -- -- --
Hartford Index Fund,
Inc.
Shares 1,729,059
Cost $ 3,400,316
Market Value......... -- -- -- --
Hartford International
Opportunities Fund,
Inc.
Shares 4,086,619
Cost $ 5,032,699
Market Value......... -- -- -- --
Hartford Dividend and
Growth Fund, Inc.
Shares 1,123,507
Cost $ 1,527,284
Market Value......... -- -- -- --
Fidelity VIP Equity
Income Fund
Shares 101,008
Cost $ 1,921,236
Market Value......... -- -- -- --
Fidelity VIP Overseas
Fund
Shares 34,291
Cost $ 589,057
Market Value......... -- -- -- --
Fidelity VIP II Asset
Manager Fund
Shares 16,085
Cost $ 246,933
Market Value......... -- -- -- --
Due from Hartford Life
Insurance Company..... 20,196 -- 919,528 24,399
Receivable from fund
shares sold........... -- 83,332 -- --
------------- ------------ ------------ -------------
Total Assets........... 1,960,137 10,489,686 12,153,868 6,676,328
------------- ------------ ------------ -------------
LIABILITIES:
Due to Hartford Life
Insurance Company..... -- 83,322 -- --
Payable for fund shares
purchased............. 20,160 -- 919,540 24,403
------------- ------------ ------------ -------------
Total Liabilities...... 20,160 83,322 919,540 24,403
------------- ------------ ------------ -------------
Net Assets (variable
life contract
liabilities).......... $1,939,977 $10,406,364 $11,234,328 $6,651,925
------------- ------------ ------------ -------------
------------- ------------ ------------ -------------
Units Outstanding........ 1,658,150 6,467,143 9,800,682 4,648,877
Accumulation Unit Value
at end of period....... $ 1.169963 $ 1.609113 $ 1.146280 $ 1.430867
</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-ACCOUNT
------------------ --------------- ----------- ------------------ ------------ ------------
<S> <C> <C> <C> <C> <C> <C>
ASSETS:
Investments:
Hartford Bond Fund,
Inc.
Shares 1,983,091
Cost $ 1,933,366
Market Value......... -- -- -- -- -- --
Hartford Stock Fund,
Inc.
Shares 2,773,357
Cost $ 8,870,198
Market Value......... -- -- -- -- -- --
HVA Money Market Fund,
Inc.
Shares 11,234,338
Cost $11,234,338
Market Value......... -- -- -- -- -- --
Hartford Advisers Fund,
Inc.
Shares 3,304,829
Cost $ 5,915,154
Market Value......... -- -- -- -- -- --
Hartford Capital
Appreciation Fund,
Inc.
Shares 3,597,943
Cost $11,616,289
Market Value......... $13,026,499 -- -- -- -- --
Hartford Mortgage
Securities Fund, Inc.
Shares 746,635
Cost $ 766,352
Market Value......... -- $ 773,433 -- -- -- --
Hartford Index Fund,
Inc.
Shares 1,729,059
Cost $ 3,400,316
Market Value......... -- -- $3,737,654 -- -- --
Hartford International
Opportunities Fund,
Inc.
Shares 4,086,619
Cost $ 5,032,699
Market Value......... -- -- -- $5,537,530 -- --
Hartford Dividend and
Growth Fund, Inc.
Shares 1,123,507
Cost $ 1,527,284
Market Value......... -- -- -- -- $1,584,628 --
Fidelity VIP Equity
Income Fund
Shares 101,008
Cost $ 1,921,236
Market Value......... -- -- -- -- -- $1,967,639
Fidelity VIP Overseas
Fund
Shares 34,291
Cost $ 589,057
Market Value......... -- -- -- -- -- --
Fidelity VIP II Asset
Manager Fund
Shares 16,085
Cost $ 246,933
Market Value......... -- -- -- -- -- --
Due from Hartford Life
Insurance Company..... 2,112 1,303 -- -- -- --
Receivable from fund
shares sold........... -- -- 1,418 343,558 753 105,209
------------------ --------------- ----------- ------------------ ------------ ------------
Total Assets........... 13,028,611 774,736 3,739,072 5,881,088 1,585,381 2,072,848
------------------ --------------- ----------- ------------------ ------------ ------------
LIABILITIES:
Due to Hartford Life
Insurance Company..... -- -- 1,416 343,559 726 332,110
Payable for fund shares
purchased............. 2,091 1,304 -- -- -- --
------------------ --------------- ----------- ------------------ ------------ ------------
Total Liabilities...... 2,091 1,304 1,416 343,559 726 332,110
------------------ --------------- ----------- ------------------ ------------ ------------
Net Assets (variable
life contract
liabilities).......... $13,026,520 $ 773,432 $3,737,656 $5,537,529 $1,584,655 $1,740,738
------------------ --------------- ----------- ------------------ ------------ ------------
------------------ --------------- ----------- ------------------ ------------ ------------
Units Outstanding........ 8,089,499 656,465 2,373,426 3,874,619 1,160,756 1,366,775
Accumulation Unit Value
at end of period....... $ 1.610300 $1.178178 $ 1.574794 $ 1.429181 $ 1.365192 $ 1.273610
<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......... $ 613,117 --
Fidelity VIP II Asset
Manager Fund
Shares
Cost
Market Value......... -- $ 251,412
Due from Hartford Life
Insurance Company..... -- --
Receivable from fund
shares sold........... -- --
------------ ------------
Total Assets........... 613,117 251,412
------------ ------------
LIABILITIES:
Due to Hartford Life
Insurance Company..... 47,027 146,406
Payable for fund shares
purchased............. 6,708 1,113
------------ ------------
Total Liabilities...... 53,735 147,519
------------ ------------
Net Assets (variable
life contract
liabilities).......... $ 559,382 $ 103,893
------------ ------------
------------ ------------
Units Outstanding........ 484,287 86,661
Accumulation Unit Value
at end of period....... $ 1.155062 $ 1.198855
</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 SIX MONTHS ENDED JUNE 30, 1996 (UNAUDITED)
<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.............. $55,435 $ 76,785 $255,866 $ 86,282
------------- ----------- ----------- -------------
Net investment income
(loss).............. 55,435 76,785 255,866 86,282
------------- ----------- ----------- -------------
Capital gains income... -- 309,113 -- 107,033
------------- ----------- ----------- -------------
NET REALIZED AND
UNREALIZED GAIN (LOSS)
ON INVESTMENTS:
Net realized gain
(loss) on security
transactions.......... (2,934) 1,088 -- 677
Net unrealized
appreciation
(depreciation) of
investments during the
period................ (83,361) 578,105 -- 162,428
------------- ----------- ----------- -------------
Net gains (losses) on
investments......... (86,295) 579,193 -- 163,105
------------- ----------- ----------- -------------
Net increase
(decrease) in net
assets resulting
from operations..... $(30,860) $965,091 $255,866 $356,420
------------- ----------- ----------- -------------
------------- ----------- ----------- -------------
</TABLE>
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-ACCOUNT
----------------- --------------- ----------- ------------------ ------------- ------------
<S> <C> <C> <C> <C> <C> <C>
INVESTMENT INCOME:
Dividends.............. $ 43,937 $23,895 $31,679 $ 58,425 $11,551 $ 28,598
----------------- --------------- ----------- -------- ------------- ------------
Net investment income
(loss).............. 43,937 23,895 31,679 58,425 11,551 28,598
----------------- --------------- ----------- -------- ------------- ------------
Capital gains income... 567,054 -- 33,058 118,054 2,804 11,171
----------------- --------------- ----------- -------- ------------- ------------
NET REALIZED AND
UNREALIZED GAIN (LOSS)
ON INVESTMENTS:
Net realized gain
(loss) on security
transactions.......... (14,918) 12 1,182 (230) 491 (3,120)
Net unrealized
appreciation
(depreciation) of
investments during the
period................ 429,469 (23,250) 166,412 185,463 52,034 8,513
----------------- --------------- ----------- -------- ------------- ------------
Net gains (losses) on
investments......... 414,551 (23,238) 167,594 185,233 52,525 5,393
----------------- --------------- ----------- -------- ------------- ------------
Net increase
(decrease) in net
assets resulting
from operations..... $1,025,542 $ 657 $232,331 $361,712 $66,880 $ 45,162
----------------- --------------- ----------- -------- ------------- ------------
----------------- --------------- ----------- -------- ------------- ------------
<CAPTION>
FIDELITY VIP
FIDELITY VIP II
OVERSEAS ASSET
FUND MANAGER FUND
SUB-ACCOUNT SUB-ACCOUNT
------------ ------------
<S> <C> <C>
INVESTMENT INCOME:
Dividends.............. $ 2,647 $ 4,226
------------ ------
Net investment income
(loss).............. 2,647 4,226
------------ ------
Capital gains income... 2,911 --
------------ ------
NET REALIZED AND
UNREALIZED GAIN (LOSS)
ON INVESTMENTS:
Net realized gain
(loss) on security
transactions.......... 715 1,088
Net unrealized
appreciation
(depreciation) of
investments during the
period................ 21,709 1,980
------------ ------
Net gains (losses) on
investments......... 22,424 3,068
------------ ------
Net increase
(decrease) in net
assets resulting
from operations..... $ 27,982 $ 7,294
------------ ------
------------ ------
</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 SIX MONTHS ENDED JUNE 30, 1996 (UNAUDITED)
<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)................ $ 55,435 $ 76,785 $ 255,866 $ 86,282
Capital gains income... -- 309,113 -- 107,033
Net realized gain
(loss) on security
transactions.......... (2,934) 1,088 -- 677
Net unrealized
appreciation
(depreciation) of
investments during the
period................ (83,361) 578,105 -- 162,428
----------- ------------ -------------- -------------
Net increase (decrease)
in net assets
resulting from
operations............ (30,860) 965,091 255,866 356,420
----------- ------------ -------------- -------------
UNIT TRANSACTIONS:
Purchases.............. 57,986 670,372 29,382,689 675,326
Net transfers.......... 305,971 2,231,576 (26,415,499) 1,259,098
Surrenders............. (9,178) (136,896) (299,647) (159,317)
Net loan withdrawals... (9,098) (95,099) (901,582) (2,229)
Cost of insurance...... (26,460) (167,163) (396,848) (117,420)
----------- ------------ -------------- -------------
Net increase (decrease)
in net assets
resulting from unit
transactions.......... 319,221 2,502,790 1,369,113 1,655,458
----------- ------------ -------------- -------------
Total increase
(decrease) in net
assets................ 288,361 3,467,881 1,624,979 2,011,878
NET ASSETS:
Beginning of period.... 1,651,616 6,938,483 9,609,349 4,640,047
----------- ------------ -------------- -------------
End of period.......... $1,939,977 $ 10,406,364 $ 11,234,328 $6,651,925
----------- ------------ -------------- -------------
----------- ------------ -------------- -------------
HARTFORD LIFE INSURANCE COMPANY
STATEMENT OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED DECEMBER 31, 1995
MONEY
BOND FUND STOCK FUND MARKET FUND ADVISERS FUND
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
----------- ------------ -------------- -------------
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
----------- ------------ -------------- -------------
----------- ------------ -------------- -------------
* From inception, May 1,
1995, to December 31,
1995.
</TABLE>
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)................ $ 43,937 $ 23,895 $ 31,679 $ 58,425 $ 11,551
Capital gains income... 567,054 -- 33,058 118,054 2,804
Net realized gain
(loss) on security
transactions.......... (14,918) 12 1,182 (230) 491
Net unrealized
appreciation
(depreciation) of
investments during the
period................ 429,469 (23,250) 166,412 185,463 52,034
----------------- --------------- ------------ ------------------ ------------
Net increase (decrease)
in net assets
resulting from
operations............ 1,025,542 657 232,331 361,712 66,880
----------------- --------------- ------------ ------------------ ------------
UNIT TRANSACTIONS:
Purchases.............. 1,430,619 13,994 1,904,915 608,742 84,926
Net transfers.......... 3,121,035 86,335 1,505,126 949,800 1,441,530
Surrenders............. (234,852) (4,359) (31,243) (179,329) (2,237)
Net loan withdrawals... (89,070) -- (1,292,558) (29,107) (56,489)
Cost of insurance...... (262,440) (10,217) (78,705) (112,819) (10,833)
----------------- --------------- ------------ ------------------ ------------
Net increase (decrease)
in net assets
resulting from unit
transactions.......... 3,965,292 85,753 2,007,535 1,237,287 1,456,897
----------------- --------------- ------------ ------------------ ------------
Total increase
(decrease) in net
assets................ 4,990,834 86,410 2,239,866 1,598,999 1,523,777
NET ASSETS:
Beginning of period.... 8,035,686 687,022 1,497,790 3,938,530 60,878
----------------- --------------- ------------ ------------------ ------------
End of period.......... $13,026,520 $ 773,432 $ 3,737,656 $5,537,529 $1,584,655
----------------- --------------- ------------ ------------------ ------------
----------------- --------------- ------------ ------------------ ------------
CAPITAL MORTGAGE INTERNATIONAL DIVIDEND AND
APPRECIATION FUND SECURITIES FUND INDEX FUND OPPORTUNITIES FUND GROWTH FUND
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
----------------- --------------- ------------ ------------------ ------------
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 9,664 258,782 968,521 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 1,525,912 54,966
----------------- --------------- ------------ ------------------ ------------
Total increase
(decrease) in net
assets................ 5,392,684 192,367 1,295,991 1,945,190 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 $3,938,530 $ 60,878
----------------- --------------- ------------ ------------------ ------------
----------------- --------------- ------------ ------------------ ------------
* From inception, May 1,
1995, to December 31,
1995.
<CAPTION>
FIDELITY VIP FIDELITY VIP II
EQUITY FIDELITY VIP ASSET MANAGER
INCOME FUND OVERSEAS FUND FUND
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
------------ -------------- -----------------
<S> <C> <C> <C>
OPERATIONS:
Net investment income
(loss)................ $ 28,598 $ 2,647 $ 4,226
Capital gains income... 11,171 2,911 --
Net realized gain
(loss) on security
transactions.......... (3,120) 715 1,088
Net unrealized
appreciation
(depreciation) of
investments during the
period................ 8,513 21,709 1,980
------------ -------------- --------
Net increase (decrease)
in net assets
resulting from
operations............ 45,162 27,982 7,294
------------ -------------- --------
UNIT TRANSACTIONS:
Purchases.............. 217,652 101,072 9,671
Net transfers.......... 893,380 425,233 58,142
Surrenders............. (21,255) (11,716) (5,107)
Net loan withdrawals... (85,750) (53,899) (18)
Cost of insurance...... (24,074) (5,648) (3,058)
------------ -------------- --------
Net increase (decrease)
in net assets
resulting from unit
transactions.......... 979,953 455,042 59,630
------------ -------------- --------
Total increase
(decrease) in net
assets................ 1,025,115 483,024 66,924
NET ASSETS:
Beginning of period.... 715,622 76,358 36,970
------------ -------------- --------
End of period.......... $1,740,737 $559,382 $ 103,894
------------ -------------- --------
------------ -------------- --------
FIDELITY VIP FIDELITY VIP II
EQUITY FIDELITY VIP ASSET MANAGER
INCOME FUND OVERSEAS FUND FUND
SUB-ACCOUNT* SUB-ACCOUNT* SUB-ACCOUNT*
------------ -------------- -----------------
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
------------ -------------- --------
------------ -------------- --------
* From inception, May 1,
1995, to December 31,
1995.
</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
JUNE 30, 1996 (UNAUDITED)
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
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 Funds are valued at
the closing net asset value per share as determined by the appropriate
Fund as of June 30, 1996.
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>
HARTFORD LIFE INSURANCE COMPANY
SEPARATE ACCOUNT VARIABLE LIFE TWO
<PAGE>
Separate Account Variable Life Two
HARTFORD LIFE INSURANCE COMPANY
STATEMENT OF ASSETS & LIABILITIES
JUNE 30, 1996 (UNAUDITED)
<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 19,172
Cost $ 18,708
Market Value......... $ 18,754 -- -- --
Hartford Stock Fund,
Inc.
Shares 169,906
Cost $ 636,588
Market Value......... -- $ 637,532 -- --
HVA Money Market Fund,
Inc.
Shares 2,626,951
Cost $2,626,951
Market Value......... -- -- $2,626,951 --
Hartford Advisers Fund,
Inc.
Shares 247,023
Cost $ 496,226
Market Value......... -- -- -- $ 497,204
Hartford Capital
Appreciation Fund,
Inc.
Shares 274,361
Cost $ 984,564
Market Value......... -- -- -- --
Hartford Mortgage
Securities Fund, Inc.
Shares 19,232
Cost $ 19,898
Market Value......... -- -- -- --
Hartford Index Fund,
Inc.
Shares 129,544
Cost $ 279,568
Market Value......... -- -- -- --
Hartford International
Opportunities Fund,
Inc.
Shares 303,256
Cost $ 411,884
Market Value......... -- -- -- --
Hartford Dividend and
Growth Fund, Inc.
Shares 130,423
Cost $ 182,658
Market Value......... -- -- -- --
Fidelity VIP Equity
Income Fund
Shares 17,231
Cost $ 333,779
Market Value......... -- -- -- --
Fidelity VIP Overseas
Fund
Shares 3,885
Cost $ 69,509
Market Value......... -- -- -- --
Fidelity VIP II Asset
Manager Fund
Shares 10,659
Cost $ 166,184
Market Value......... -- -- -- --
Due from Hartford Life
Insurance Company..... -- 76,157 495,568 42,936
Receivable from fund
shares sold........... 73 -- -- --
----------- ----------- ----------- -------------
Total Assets........... 18,827 713,689 3,122,519 540,140
----------- ----------- ----------- -------------
LIABILITIES:
Due to Hartford Life
Insurance Company..... 74 -- -- --
Payable for fund shares
purchased............. -- 76,034 495,551 42,825
----------- ----------- ----------- -------------
Total Liabilities...... 74 76,034 495,551 42,825
----------- ----------- ----------- -------------
Net Assets (variable
annuity contract
liabilities).......... $ 18,753 $ 637,655 $2,626,968 $ 497,315
----------- ----------- ----------- -------------
----------- ----------- ----------- -------------
DEFERRED ANNUITY
CONTRACTS IN THE
ACCUMULATION PERIOD:
GROUP SUB-ACCOUNTS:
Units Owned by
Participants.......... 16,029 396,278 2,291,734 347,563
Unit Price............. $ 1.169963 $ 1.609113 $ 1.146280 $ 1.430867
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
54
<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-ACCOUNT
----------------- --------------- ----------- ------------------ ------------ ------------
<S> <C> <C> <C> <C> <C> <C>
ASSETS:
Investments:
Hartford Bond Fund,
Inc.
Shares 19,172
Cost $ 18,708
Market Value......... -- -- -- -- -- --
Hartford Stock Fund,
Inc.
Shares 169,906
Cost $ 636,588
Market Value......... -- -- -- -- -- --
HVA Money Market Fund,
Inc.
Shares 2,626,951
Cost $2,626,951
Market Value......... -- -- -- -- -- --
Hartford Advisers Fund,
Inc.
Shares 247,023
Cost $ 496,226
Market Value......... -- -- -- -- -- --
Hartford Capital
Appreciation Fund,
Inc.
Shares 274,361
Cost $ 984,564
Market Value......... $ 993,337 -- -- -- -- --
Hartford Mortgage
Securities Fund, Inc.
Shares 19,232
Cost $ 19,898
Market Value......... -- $ 19,921 -- -- -- --
Hartford Index Fund,
Inc.
Shares 129,544
Cost $ 279,568
Market Value......... -- -- $ 280,032 -- -- --
Hartford International
Opportunities Fund,
Inc.
Shares 303,256
Cost $ 411,884
Market Value......... -- -- -- $ 410,923 -- --
Hartford Dividend and
Growth Fund, Inc.
Shares 130,423
Cost $ 182,658
Market Value......... -- -- -- -- $ 183,951 --
Fidelity VIP Equity
Income Fund
Shares 17,231
Cost $ 333,779
Market Value......... -- -- -- -- -- $ 335,658
Fidelity VIP Overseas
Fund
Shares 3,885
Cost $ 69,509
Market Value......... -- -- -- -- -- --
Fidelity VIP II Asset
Manager Fund
Shares 10,659
Cost $ 166,184
Market Value......... -- -- -- -- -- --
Due from Hartford Life
Insurance Company..... 82,777 -- 26,004 20,464 3,521 2,955
Receivable from fund
shares sold........... -- 48 -- -- -- --
----------------- --------------- ----------- ------------------ ------------ ------------
Total Assets........... 1,076,114 19,969 306,036 431,387 187,472 338,613
----------------- --------------- ----------- ------------------ ------------ ------------
LIABILITIES:
Due to Hartford Life
Insurance Company..... -- 48 -- -- -- --
Payable for fund shares
purchased............. 82,313 -- 25,992 20,461 3,484 2,706
----------------- --------------- ----------- ------------------ ------------ ------------
Total Liabilities...... 82,313 48 25,992 20,461 3,484 2,706
----------------- --------------- ----------- ------------------ ------------ ------------
Net Assets (variable
annuity contract
liabilities).......... $ 993,801 $ 19,921 $ 280,044 $ 410,926 $ 183,988 $ 335,907
----------------- --------------- ----------- ------------------ ------------ ------------
----------------- --------------- ----------- ------------------ ------------ ------------
DEFERRED ANNUITY
CONTRACTS IN THE
ACCUMULATION PERIOD:
GROUP SUB-ACCOUNTS:
Units Owned by
Participants.......... 617,152 16,909 177,829 287,526 134,772 263,745
Unit Price............. $ 1.610300 $ 1.178178 $ 1.574794 $ 1.429181 $ 1.365192 $ 1.273610
<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......... $ 69,473 --
Fidelity VIP II Asset
Manager Fund
Shares
Cost
Market Value......... -- $ 166,604
Due from Hartford Life
Insurance Company..... 4,734 3,423
Receivable from fund
shares sold........... -- --
------------ ------------
Total Assets........... 74,207 170,027
------------ ------------
LIABILITIES:
Due to Hartford Life
Insurance Company..... -- --
Payable for fund shares
purchased............. 4,741 2,771
------------ ------------
Total Liabilities...... 4,741 2,771
------------ ------------
Net Assets (variable
annuity contract
liabilities).......... $ 69,466 $ 167,256
------------ ------------
------------ ------------
DEFERRED ANNUITY
CONTRACTS IN THE
ACCUMULATION PERIOD:
GROUP SUB-ACCOUNTS:
Units Owned by
Participants.......... 60,140 139,513
Unit Price............. $ 1.155062 $ 1.198855
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
55
<PAGE>
SEPARATE ACCOUNT VARIABLE LIFE TWO
HARTFORD LIFE INSURANCE COMPANY
STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 1996 (UNAUDITED)
<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.............. $ 92 $ 668 $ 1,058 $ 1,051
----- ----------- ----------- ------
Net investment income
(loss).............. 92 668 1,058 1,051
----- ----------- ----------- ------
Capital gains income... -- -- -- --
----- ----------- ----------- ------
NET REALIZED AND
UNREALIZED GAIN (LOSS)
ON INVESTMENTS:
Net realized gain
(loss) on security
transactions.......... -- -- -- --
Net unrealized
appreciation
(depreciation) of
investments during the
period................ 46 931 980
----- ----------- ----------- ------
Net gains (losses) on
investments......... 46 931 -- 980
----- ----------- ----------- ------
Net increase
(decrease) in net
assets resulting
from operations..... $138 $ 1,599 $ 1,058 $ 2,031
----- ----------- ----------- ------
----- ----------- ----------- ------
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
56
<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-ACCOUNT
----------------- --------------- ----------- ------------------ ------------ ------------
<S> <C> <C> <C> <C> <C> <C>
INVESTMENT INCOME:
Dividends.............. $ 778 $ 103 $ 331 $ 1,003 $ 307 $ --
------ ----- ----- ------ ------ ------
Net investment income
(loss).............. 778 103 331 1,003 307 --
------ ----- ----- ------ ------ ------
Capital gains income... -- -- -- -- -- --
------ ----- ----- ------ ------ ------
NET REALIZED AND
UNREALIZED GAIN (LOSS)
ON INVESTMENTS:
Net realized gain
(loss) on security
transactions.......... -- -- -- -- -- --
Net unrealized
appreciation
(depreciation) of
investments during the
period................ 8,772 24 458 (960) 1,294 1,843
------ ----- ----- ------ ------ ------
Net gains (losses) on
investments......... 8,772 24 458 (960) 1,294 1,843
------ ----- ----- ------ ------ ------
Net increase
(decrease) in net
assets resulting
from operations..... $ 9,550 $ 127 $ 789 $ 43 $1,601 $ 1,843
------ ----- ----- ------ ------ ------
------ ----- ----- ------ ------ ------
<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.......... -- --
Net unrealized
appreciation
(depreciation) of
investments during the
period................ (36) 419
--- -----
Net gains (losses) on
investments......... (36) 419
--- -----
Net increase
(decrease) in net
assets resulting
from operations..... $ (36) $ 419
--- -----
--- -----
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
57
<PAGE>
SEPARATE ACCOUNT VARIABLE LIFE TWO
HARTFORD LIFE INSURANCE COMPANY
STATEMENT OF CHANGES IN NET ASSETS
FOR THE SIX MONTHS ENDED JUNE 30, 1996 (UNAUDITED)
<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)................ $ 92 $ 668 $ 1,058 $ 1,051
Net unrealized
appreciation
(depreciation) of
investments during the
period................ 46 931 -- 980
----------- ----------- -------------- -------------
Net increase (decrease)
in net assets
resulting from
operations............ 138 1,599 1,058 2,031
----------- ----------- -------------- -------------
UNIT TRANSACTIONS:
Purchases.............. -- 46,605 6,623,715 51,144
Net transfers.......... 19,203 550,847 (4,792,699) 442,042
Surrenders............. (392) 21,292 (42,421) 3,101
Cost of insurance...... (196) (4,354) (94,200) (1,003)
----------- ----------- -------------- -------------
Net increase (decrease)
in net assets
resulting from unit
transactions.......... 18,615 614,390 1,694,395 495,284
----------- ----------- -------------- -------------
Total increase
(decrease) in net
assets................ 18,753 615,989 1,695,453 497,315
NET ASSETS:
Beginning of period.... -- 21,666 931,515 --
----------- ----------- -------------- -------------
End of period.......... $ 18,753 $ 637,655 $ 2,626,968 $ 497,315
----------- ----------- -------------- -------------
----------- ----------- -------------- -------------
HARTFORD LIFE INSURANCE COMPANY
STATEMENT OF CHANGES IN NET ASSETS
FOR THE PERIOD AUGUST 14, 1995 TO DECEMBER 31, 1995
CAPTIAL
MONEY APPRECIATION
STOCK FUND MARKET FUND FUND INDEX FUND
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
----------- ----------- -------------- -------------
OPERATIONS:
Net investment income
(loss)................ $ 7 $ 7,711 $ -- $ 7
Net unrealized
appreciation
(depreciation) of
investments during the
period................ 14 -- -- 6
----------- ----------- -------------- -------------
Net increase (decrease)
in net assets
resulting from
operations............ 21 7,711 -- 13
----------- ----------- -------------- -------------
UNIT TRANSACTIONS:
Purchases.............. -- 1,795,344 -- --
Net transfers.......... 21,645 (824,475) 122,583 47,913
Surrenders............. -- (47,065) -- --
Cost of insurance and
other fees............ -- -- -- --
----------- ----------- -------------- -------------
Net increase (decrease)
in net assets
resulting from unit
transactions.......... 21,645 923,804 122,583 47,913
----------- ----------- -------------- -------------
Total increase
(decrease) in net
assets................ 21,666 931,515 122,583 47,926
NET ASSETS:
Beginning of period.... -- -- -- --
----------- ----------- -------------- -------------
End of period.......... $ 21,666 $ 931,515 $ 122,583 $ 47,926
----------- ----------- -------------- -------------
----------- ----------- -------------- -------------
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
58
<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)................ $ 778 $ 103 $ 331 $ 1,003 $ 307
Net unrealized
appreciation
(depreciation) of
investments during the
period................ 8,772 24 458 (960) 1,294
-------- ------- ----------- -------- ------------
Net increase (decrease)
in net assets
resulting from
operations............ 9,550 127 789 43 1,601
-------- ------- ----------- -------- ------------
UNIT TRANSACTIONS:
Purchases.............. 168,312 -- 6,149 -- 4,984
Net transfers.......... 681,970 20,028 227,735 262,579 175,485
Surrenders............. 19,842 (120) (377) 16,838 2,469
Cost of insurance...... (8,456) (114) (2,177) (8,629) (551)
-------- ------- ----------- -------- ------------
Net increase (decrease)
in net assets
resulting from unit
transactions.......... 861,668 19,921 231,330 270,788 183,988
-------- ------- ----------- -------- ------------
Total increase
(decrease) in net
assets................ 871,218 19,921 232,119 270,831 183,988
NET ASSETS:
Beginning of period.... 122,583 -- 47,926 140,095 --
-------- ------- ----------- -------- ------------
End of period.......... $ 993,801 $ 19,921 $ 280,044 $ 410,926 $ 183,988
-------- ------- ----------- -------- ------------
-------- ------- ----------- -------- ------------
INTERNATIONAL FIDELITY VIP
OPPORTUNITIES EQUITY INCOME
FUND FUND
SUB-ACCOUNT SUB-ACCOUNT
----------------- ---------------
OPERATIONS:
Net investment income
(loss)................ $ -- $ --
Net unrealized
appreciation
(depreciation) of
investments during the
period................ -- 37
-------- -------
Net increase (decrease)
in net assets
resulting from
operations............ -- 37
-------- -------
UNIT TRANSACTIONS:
Purchases.............. -- --
Net transfers.......... 140,095 4,133
Surrenders............. -- --
Cost of insurance and
other fees............ -- --
-------- -------
Net increase (decrease)
in net assets
resulting from unit
transactions.......... 140,095 4,133
-------- -------
Total increase
(decrease) in net
assets................ 140,095 4,170
NET ASSETS:
Beginning of period.... -- --
-------- -------
End of period.......... $ 140,095 $ 4,170
-------- -------
-------- -------
<CAPTION>
FIDELITY VIP FIDELITY VIP II
EQUITY FIDELITY VIP ASSET MANAGER
INCOME FUND OVERSEAS FUND FUND
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
------------ ------------- -----------------
<S> <C> <C> <C>
OPERATIONS:
Net investment income
(loss)................ $ -- $-- $ --
Net unrealized
appreciation
(depreciation) of
investments during the
period................ 1,843 (36) 419
------------ ------------- --------
Net increase (decrease)
in net assets
resulting from
operations............ 1,843 (36) 419
------------ ------------- --------
UNIT TRANSACTIONS:
Purchases.............. 16,783 1,603 676
Net transfers.......... 321,799 65,508 163,588
Surrenders............. (4,978) 2,717 2,815
Cost of insurance...... (3,710) (326) (242)
------------ ------------- --------
Net increase (decrease)
in net assets
resulting from unit
transactions.......... 329,894 69,502 166,837
------------ ------------- --------
Total increase
(decrease) in net
assets................ 331,737 69,466 167,256
NET ASSETS:
Beginning of period.... 4,170 -- --
------------ ------------- --------
End of period.......... $ 335,907 $69,466 $ 167,256
------------ ------------- --------
------------ ------------- --------
OPERATIONS:
Net investment income
(loss)................
Net unrealized
appreciation
(depreciation) of
investments during the
period................
Net increase (decrease)
in net assets
resulting from
operations............
UNIT TRANSACTIONS:
Purchases..............
Net transfers..........
Surrenders.............
Cost of insurance and
other fees............
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.
59
<PAGE>
SEPARATE ACCOUNT VARIABLE LIFE TWO
HARTFORD LIFE INSURANCE COMPANY
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 1996 (UNAUDITED)
1. ORGANIZATION:
Separate Account Variable Life 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. 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
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 June 30, 1996.
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>
HARTFORD LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FIVE
<PAGE>
SEPARATE ACCOUNT FIVE
HARTFORD LIFE INSURANCE COMPANY
STATEMENT OF ASSETS & LIABILITIES
JUNE 30, 1996 (UNAUDITED)
<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 2,498,704
Cost $ 2,504,992
Market Value......... $2,444,333 -- --
Hartford Stock Fund,
Inc.
Shares 2,955,538
Cost $10,226,509
Market Value......... -- $11,089,947 --
HVA Money Market Fund,
Inc.
Shares 13,979,571
Cost $13,979,571
Market Value......... -- -- $13,979,574
Hartford Advisers Fund,
Inc.
Shares 10,912,192
Cost $21,001,191
Market Value......... -- -- --
Hartford Capital
Appreciation Fund,
Inc.
Shares 5,680,065
Cost $19,461,419
Market Value......... -- -- --
Hartford Mortgage
Securities Fund, Inc.
Shares 1,144,490
Cost $ 1,206,684
Market Value......... -- -- --
Hartford Index Fund,
Inc.
Shares 2,683,211
Cost $ 5,403,521
Market Value......... -- -- --
Hartford International
Opportunities Fund,
Inc.
Shares 3,792,028
Cost $ 4,923,075
Market Value......... -- -- --
Hartford Dividend and
Growth Fund, Inc.
Shares 4,607,149
Cost $ 5,964,806
Market Value......... -- -- --
Hartford International
Advisers Fund, Inc.
Shares 793,875
Cost $ 897,555
Market Value......... -- -- --
Due from Hartford Life
Insurance Company..... 135 107,826 135,514
Receivable from fund
shares sold........... -- -- --
------------- ----------- -----------
Total Assets........... 2,444,468 11,197,773 14,115,088
------------- ----------- -----------
LIABILITIES:
Payable to Hartford
Life Insurance
Company............... -- -- --
Payable for fund shares
purchased............. 136 107,828 135,101
------------- ----------- -----------
Total Liabilities...... 136 107,828 135,101
------------- ----------- -----------
Net Assets (variable
life contract
liabilities).......... $2,444,332 $11,089,945 $13,979,987
------------- ----------- -----------
------------- ----------- -----------
Units Outstanding...... 2,102,566 7,473,114 12,912,841
Accumulation Unit Value
at end of period...... $ 1.162547 $ 1.483979 $ 1.082642
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
62
<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 2,498,704
Cost $ 2,504,992
Market Value......... -- -- -- -- -- --
Hartford Stock Fund,
Inc.
Shares 2,955,538
Cost $10,226,509
Market Value......... -- -- -- -- -- --
HVA Money Market Fund,
Inc.
Shares 13,979,571
Cost $13,979,571
Market Value......... -- -- -- -- -- --
Hartford Advisers Fund,
Inc.
Shares 10,912,192
Cost $21,001,191
Market Value......... $21,963,951 -- -- -- -- --
Hartford Capital
Appreciation Fund,
Inc.
Shares 5,680,065
Cost $19,461,419
Market Value......... -- $20,564,903 -- -- -- --
Hartford Mortgage
Securities Fund, Inc.
Shares 1,144,490
Cost $ 1,206,684
Market Value......... -- -- $1,185,564 -- -- --
Hartford Index Fund,
Inc.
Shares 2,683,211
Cost $ 5,403,521
Market Value......... -- -- -- $5,800,220 -- --
Hartford International
Opportunities Fund,
Inc.
Shares 3,792,028
Cost $ 4,923,075
Market Value......... -- -- -- -- $5,138,347 --
Hartford Dividend and
Growth Fund, Inc.
Shares 4,607,149
Cost $ 5,964,806
Market Value......... -- -- -- -- -- $6,498,065
Hartford International
Advisers Fund, Inc.
Shares 793,875
Cost $ 897,555
Market Value......... -- -- -- -- -- --
Due from Hartford Life
Insurance Company..... 293,158 90,142 -- 16,060 15,052 95
Receivable from fund
shares sold........... -- -- 97 -- -- --
------------- ----------------- -------------- ----------- ------------------ ------------
Total Assets........... 22,257,109 20,655,045 1,185,661 5,816,280 5,153,399 6,498,160
------------- ----------------- -------------- ----------- ------------------ ------------
LIABILITIES:
Payable to Hartford
Life Insurance
Company............... -- -- 97 -- -- --
Payable for fund shares
purchased............. 293,163 90,137 -- 16,060 15,053 94
------------- ----------------- -------------- ----------- ------------------ ------------
Total Liabilities...... 293,163 90,137 97 16,060 15,053 94
------------- ----------------- -------------- ----------- ------------------ ------------
Net Assets (variable
life contract
liabilities).......... $21,963,946 $20,564,908 $1,185,564 $5,800,220 $5,138,346 $6,498,066
------------- ----------------- -------------- ----------- ------------------ ------------
------------- ----------------- -------------- ----------- ------------------ ------------
Units Outstanding...... 16,145,817 14,232,598 1,019,930 3,886,785 4,104,994 4,327,299
Accumulation Unit Value
at end of period...... $ 1.360349 $ 1.444916 $1.162399 $1.492292 $1.251731 $1.501644
<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......... $916,015
Due from Hartford Life
Insurance Company..... 4,286
Receivable from fund
shares sold........... --
-------------
Total Assets........... 920,301
-------------
LIABILITIES:
Payable to Hartford
Life Insurance
Company............... --
Payable for fund shares
purchased............. 4,286
-------------
Total Liabilities...... 4,286
-------------
Net Assets (variable
life contract
liabilities).......... $916,015
-------------
-------------
Units Outstanding...... 747,765
Accumulation Unit Value
at end of period...... $1.225000
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
63
<PAGE>
SEPARATE ACCOUNT FIVE
HARTFORD LIFE INSURANCE COMPANY
STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 1996 (UNAUDITED)
<TABLE>
<CAPTION>
MONEY
BOND FUND STOCK FUND MARKET FUND
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
------------- ----------- -----------
<S> <C> <C> <C>
INVESTMENT INCOME:
Dividends.............. $ 61,866 $ 70,270 $ 316,704
------------- ----------- -----------
Net investment income
(loss).............. 61,866 70,270 316,704
------------- ----------- -----------
Capital gains income... -- 247,892 --
------------- ----------- -----------
NET REALIZED AND
UNREALIZED GAIN (LOSS)
ON INVESTMENTS:
Net realized gain
(loss) on security
transactions.......... (410) 176 --
Net unrealized
appreciation
(depreciation) of
investments during the
period................ (87,051) 550,358 --
------------- ----------- -----------
Net gains (losses) on
investments......... (87,461) 550,534 --
------------- ----------- -----------
Net increase (decrease)
in net assets
resulting from
operations............ $ (25,595) $ 868,696 $ 316,704
------------- ----------- -----------
------------- ----------- -----------
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
64
<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.............. $ 255,129 $ 67,834 $ 32,141 $ 45,311 $ 46,697 $ 58,904
------------- ----------------- ---------------- ----------- ------------------- -------------
Net investment income
(loss).............. 255,129 67,834 32,141 45,311 46,697 58,904
------------- ----------------- ---------------- ----------- ------------------- -------------
Capital gains income... 263,891 852,649 -- 55,597 71,613 66,764
------------- ----------------- ---------------- ----------- ------------------- -------------
NET REALIZED AND
UNREALIZED GAIN (LOSS)
ON INVESTMENTS:
Net realized gain
(loss) on security
transactions.......... (2,757) (238) (100) 1,865 (112) 677
Net unrealized
appreciation
(depreciation) of
investments during the
period................ 496,339 710,057 (29,188) 262,846 114,600 325,181
------------- ----------------- ---------------- ----------- ------------------- -------------
Net gains (losses) on
investments......... 493,582 709,819 (29,288) 264,711 114,488 325,858
------------- ----------------- ---------------- ----------- ------------------- -------------
Net increase (decrease)
in net assets
resulting from
operations............ $ 1,012,602 $ 1,630,302 $ 2,853 $365,619 $ 232,798 $ 451,526
------------- ----------------- ---------------- ----------- ------------------- -------------
------------- ----------------- ---------------- ----------- ------------------- -------------
<CAPTION>
INTERNATIONAL
ADVISERS FUND
SUB-ACCOUNT
-------------
<S> <C>
INVESTMENT INCOME:
Dividends.............. $ 11,191
-------------
Net investment income
(loss).............. 11,191
-------------
Capital gains income... --
-------------
NET REALIZED AND
UNREALIZED GAIN (LOSS)
ON INVESTMENTS:
Net realized gain
(loss) on security
transactions.......... 245
Net unrealized
appreciation
(depreciation) of
investments during the
period................ 14,050
-------------
Net gains (losses) on
investments......... 14,295
-------------
Net increase (decrease)
in net assets
resulting from
operations............ $ 25,486
-------------
-------------
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
65
<PAGE>
SEPARATE ACCOUNT FIVE
HARTFORD LIFE INSURANCE COMPANY
STATEMENT OF CHANGES IN NET ASSETS
FOR THE SIX MONTHS ENDED JUNE 30, 1996 (UNAUDITED)
<TABLE>
<CAPTION>
MONEY
BOND FUND STOCK FUND MARKET FUND
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
----------- ------------ ------------
<S> <C> <C> <C>
OPERATIONS:
Net investment income
(loss)................ $ 61,866 $ 70,270 $ 316,704
Capital gains income... -- 247,892 --
Net realized gain
(loss) on security
transactions.......... (410) 176 --
Net unrealized
appreciation
(depreciation) of
investments during the
period................ (87,051) 550,358 --
----------- ------------ ------------
Net increase (decrease)
in net assets
resulting from
operations............ (25,595) 868,696 316,704
----------- ------------ ------------
UNIT TRANSACTIONS:
Purchases.............. -- -- 43,139,115
Net transfers.......... 1,408,771 5,713,802 (37,960,307)
Surrenders............. (16,962) (55,637) (151,772)
Net loan withdrawal.... (1,838) (49,227) (2,779,464)
Cost of insurance and
other fees............ (6,022) (27,666) (68,392)
----------- ------------ ------------
Net increase (decrease)
in net assets
resulting from unit
transactions.......... 1,383,949 5,581,272 2,179,180
----------- ------------ ------------
Total increase in net
assets................ 1,358,354 6,449,968 2,495,884
NET ASSETS:
Beginning of period.... 1,085,978 4,639,977 11,484,103
----------- ------------ ------------
End of period.......... $2,444,332 $ 11,089,945 $13,979,987
----------- ------------ ------------
----------- ------------ ------------
HARTFORD LIFE INSURANCE COMPANY
STATEMENT OF CHANGES IN NET ASSETS
FROM INCEPTION JANUARY 10, 1995 TO DECEMBER 31, 1995
MONEY
BOND FUND STOCK FUND MARKET FUND
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
----------- ------------ ------------
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.
66
<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)................ $ 255,129 $ 67,834 $ 32,141 $ 45,311 $ 46,697 $ 58,904
Capital gains income... 263,891 852,649 -- 55,597 71,613 66,764
Net realized gain
(loss) on security
transactions.......... (2,757) (238) (100) 1,865 (112) 677
Net unrealized
appreciation
(depreciation) of
investments during the
period................ 496,339 710,057 (29,188) 262,846 114,600 325,181
------------- ----------------- --------------- ----------- ------------------ ------------
Net increase (decrease)
in net assets
resulting from
operations............ 1,012,602 1,630,302 2,853 365,619 232,798 451,526
------------- ----------------- --------------- ----------- ------------------ ------------
UNIT TRANSACTIONS:
Purchases.............. -- -- -- -- -- --
Net transfers.......... 11,462,143 8,097,163 627,432 3,373,961 2,909,029 3,602,516
Surrenders............. (201,611) (110,346) (26,036) (47,408) (25,096) (46,915)
Net loan withdrawal.... (276,179) (123,175) (2) (69,366) (4,029) (26,420)
Cost of insurance and
other fees............ (55,760) (56,257) (3,107) (13,188) (12,307) (15,720)
------------- ----------------- --------------- ----------- ------------------ ------------
Net increase (decrease)
in net assets
resulting from unit
transactions.......... 10,928,593 7,807,385 598,287 3,243,999 2,867,597 3,513,461
------------- ----------------- --------------- ----------- ------------------ ------------
Total increase in net
assets................ 11,941,195 9,437,687 601,140 3,609,618 3,100,395 3,964,987
NET ASSETS:
Beginning of period.... 10,022,751 11,127,221 584,424 2,190,602 2,037,951 2,533,079
------------- ----------------- --------------- ----------- ------------------ ------------
End of period.......... $21,963,946 $20,564,908 $1,185,564 $5,800,220 $5,138,346 $6,498,066
------------- ----------------- --------------- ----------- ------------------ ------------
------------- ----------------- --------------- ----------- ------------------ ------------
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
------------- ----------------- --------------- ----------- ------------------ ------------
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)................ $ 11,191
Capital gains income... --
Net realized gain
(loss) on security
transactions.......... 245
Net unrealized
appreciation
(depreciation) of
investments during the
period................ 14,050
-------------
Net increase (decrease)
in net assets
resulting from
operations............ 25,486
-------------
UNIT TRANSACTIONS:
Purchases.............. --
Net transfers.......... 763,565
Surrenders............. (4,331)
Net loan withdrawal.... (1)
Cost of insurance and
other fees............ (1,823)
-------------
Net increase (decrease)
in net assets
resulting from unit
transactions.......... 757,410
-------------
Total increase in net
assets................ 782,896
NET ASSETS:
Beginning of period.... 133,119
-------------
End of period.......... $916,015
-------------
-------------
INTERNATIONAL
ADVISERS FUND
SUB-ACCOUNT*
-------------
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.
67
<PAGE>
SEPARATE ACCOUNT FIVE
HARTFORD LIFE INSURANCE COMPANY
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 1996 (UNAUDITED)
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.
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 June 30, 1996.
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.
68
<PAGE>
ITT HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
SEPARATE ACCOUNT ONE
<PAGE>
Separate Account One
ITT HARTFORD LIFE & ANNUITY INSURANCE COMPANY
STATEMENT OF ASSETS & LIABILITIES
JUNE 30, 1996 (UNAUDITED)
<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 119,696,378
Cost $ 121,598,105
Market Value......... $117,091,785 -- --
Hartford Stock Fund,
Inc.
Shares 219,686,629
Cost $ 709,999,062
Market Value......... -- $824,321,353 --
HVA Money Market Fund,
Inc.
Shares 149,873,805
Cost $ 149,873,805
Market Value......... -- -- $149,873,805
Hartford Advisers Fund,
Inc.
Shares 904,566,365
Cost $1,618,604,818
Market Value......... -- -- --
Hartford Capital
Appreciation Fund,
Inc.
Shares 299,415,015
Cost $ 957,897,700
Market Value......... -- -- --
Hartford Mortgage
Securities Fund, Inc.
Shares 62,456,123
Cost $ 67,166,264
Market Value......... -- -- --
Hartford Index Fund,
Inc.
Shares 68,785,653
Cost $ 131,224,931
Market Value......... -- -- --
Hartford International
Opportunities Fund,
Inc.
Shares 300,700,753
Cost $ 367,732,535
Market Value......... -- -- --
Hartford Dividend and
Growth Fund, Inc.
Shares 212,836,684
Cost $ 267,062,457
Market Value......... -- -- --
Hartford International
Advisers Fund, Inc.
Shares 37,113,798
Cost $ 41,758,411
Market Value......... -- -- --
Due from ITT Hartford
Life and Annuity
Insurance Company..... 280,351 1,486,583 --
Receivable from fund
shares sold........... -- -- 290,239
------------ ------------ -------------
Total Assets........... 117,372,136 825,807,936 150,164,044
------------ ------------ -------------
LIABILITIES:
Due to ITT Hartford
Life and Annuity
Insurance Company..... -- -- 291,290
Payable for fund shares
purchased............. 280,255 1,488,000 --
------------ ------------ -------------
Total Liabilities...... 280,255 1,488,000 291,290
------------ ------------ -------------
Net Assets (variable
annuity contract
liabilities).......... $117,091,881 $824,319,936 $149,872,754
------------ ------------ -------------
------------ ------------ -------------
DEFERRED ANNUITY
CONTRACTS IN THE
ACCUMULATION PERIOD:
INDIVIDUAL SUB-ACCOUNTS:
Units Owned by
Participants.......... 63,822,412 256,749,920 96,222,285
Unit Price............. $ 1.834619 $ 3.209135 $ 1.556238
ANNUITY CONTRACTS IN THE
ANNUITY PERIOD:
INDIVIDUAL SUB-ACCOUNTS:
Units Owned by
Participants.......... 1,128 116,786 82,236
Unit Price............. $ 1.834619 $ 3.209135 $ 1.556238
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
70
<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>
ASSETS:
Investments:
Hartford Bond Fund,
Inc.
Shares 119,696,378
Cost $ 121,598,105
Market Value......... -- -- -- -- -- --
Hartford Stock Fund,
Inc.
Shares 219,686,629
Cost $ 709,999,062
Market Value......... -- -- -- -- -- --
HVA Money Market Fund,
Inc.
Shares 149,873,805
Cost $ 149,873,805
Market Value......... -- -- -- -- -- --
Hartford Advisers Fund,
Inc.
Shares 904,566,365
Cost $1,618,604,818
Market Value......... $1,820,702,133 -- -- -- -- --
Hartford Capital
Appreciation Fund,
Inc.
Shares 299,415,015
Cost $ 957,897,700
Market Value......... -- $1,084,044,037 -- -- -- --
Hartford Mortgage
Securities Fund, Inc.
Shares 62,456,123
Cost $ 67,166,264
Market Value......... -- -- $64,697,673 -- -- --
Hartford Index Fund,
Inc.
Shares 68,785,653
Cost $ 131,224,931
Market Value......... -- -- -- $ 148,691,882 -- --
Hartford International
Opportunities Fund,
Inc.
Shares 300,700,753
Cost $ 367,732,535
Market Value......... -- -- -- -- $407,461,549 --
Hartford Dividend and
Growth Fund, Inc.
Shares 212,836,684
Cost $ 267,062,457
Market Value......... -- -- -- -- -- $300,191,245
Hartford International
Advisers Fund, Inc.
Shares 37,113,798
Cost $ 41,758,411
Market Value......... -- -- -- -- -- --
Due from ITT Hartford
Life and Annuity
Insurance Company..... 2,261,045 2,368,132 101,308 320,516 423,182 1,024,844
Receivable from fund
shares sold........... -- -- -- -- -- --
--------------- ----------------- --------------- ------------- ------------------ -------------
Total Assets........... 1,822,963,178 1,086,412,169 64,798,981 149,012,398 407,884,731 301,216,089
--------------- ----------------- --------------- ------------- ------------------ -------------
LIABILITIES:
Due to ITT Hartford
Life and Annuity
Insurance Company..... -- -- -- -- -- --
Payable for fund shares
purchased............. 2,262,804 2,260,705 101,577 319,036 423,494 1,024,618
--------------- ----------------- --------------- ------------- ------------------ -------------
Total Liabilities...... 2,262,804 2,260,705 101,577 319,036 423,494 1,024,618
--------------- ----------------- --------------- ------------- ------------------ -------------
Net Assets (variable
annuity contract
liabilities).......... $1,820,700,374 $1,084,151,464 $64,697,404 $ 148,693,362 $407,461,237 $300,191,471
--------------- ----------------- --------------- ------------- ------------------ -------------
--------------- ----------------- --------------- ------------- ------------------ -------------
DEFERRED ANNUITY
CONTRACTS IN THE
ACCUMULATION PERIOD:
INDIVIDUAL SUB-ACCOUNTS:
Units Owned by
Participants.......... 680,289,502 291,163,798 34,664,796 57,787,326 285,801,572 200,629,913
Unit Price............. $ 2.674950 $ 3.721901 $ 1.866372 $ 2.572942 $ 1.424675 $ 1.495781
ANNUITY CONTRACTS IN THE
ANNUITY PERIOD:
INDIVIDUAL SUB-ACCOUNTS:
Units Owned by
Participants.......... 358,874 125,913 -- 3,857 201,366 62,214
Unit Price............. $ 2.674950 $ 3.721901 -- $ 2.572942 $ 1.424675 $ 1.495781
<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......... $42,823,757
Due from ITT Hartford
Life and Annuity
Insurance Company..... 366,505
Receivable from fund
shares sold........... --
-------------
Total Assets........... 43,190,262
-------------
LIABILITIES:
Due to ITT Hartford
Life and Annuity
Insurance Company..... --
Payable for fund shares
purchased............. 366,488
-------------
Total Liabilities...... 366,488
-------------
Net Assets (variable
annuity contract
liabilities).......... $42,823,774
-------------
-------------
DEFERRED ANNUITY
CONTRACTS IN THE
ACCUMULATION PERIOD:
INDIVIDUAL SUB-ACCOUNTS:
Units Owned by
Participants.......... 35,540,865
Unit Price............. $ 1.204772
ANNUITY CONTRACTS IN THE
ANNUITY PERIOD:
INDIVIDUAL SUB-ACCOUNTS:
Units Owned by
Participants.......... 4,261
Unit Price............. $ 1.204772
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
71
<PAGE>
SEPARATE ACCOUNT ONE
ITT HARTFORD LIFE & ANNUITY INSURANCE COMPANY
STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 1996 (UNAUDITED)
<TABLE>
<CAPTION>
MONEY
BOND FUND STOCK FUND MARKET FUND
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
-------------- -------------- -------------
<S> <C> <C> <C>
INVESTMENT INCOME:
Dividends.............. $ 3,410,566 $ 5,887,538 $3,179,782
EXPENSES:
Mortality and expense
undertakings.......... (654,788) (4,204,840) (795,018)
-------------- -------------- -------------
Net investment income
(loss).............. 2,755,778 1,682,698 2,384,764
-------------- -------------- -------------
Capital gains income... -- 23,889,792 --
-------------- -------------- -------------
NET REALIZED AND
UNREALIZED GAIN (LOSS)
ON INVESTMENTS:
Net realized gain
(loss) on security
transactions.......... (12,446) (58) --
Net unrealized
appreciation
(depreciation) of
investments during the
period................ (5,219,584) 44,917,140 --
-------------- -------------- -------------
Net gains (losses) on
investments......... (5,232,030) 44,917,082 --
-------------- -------------- -------------
Net increase (decrease)
in net assets
resulting from
operations............ $ (2,476,252) $ 70,489,572 $2,384,764
-------------- -------------- -------------
-------------- -------------- -------------
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
72
<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.............. $24,593,121 $ 3,780,971 $2,095,560 $ 1,244,204 $ 3,986,037
EXPENSES:
Mortality and expense
undertakings.......... (9,926,093) (5,634,839) (384,027) (710,681) (2,199,832)
--------------- --------------------- ------------------ -------------- ---------------------
Net investment income
(loss).............. 14,667,028 (1,853,868) 1,711,533 533,523 1,786,205
--------------- --------------------- ------------------ -------------- ---------------------
Capital gains income... 32,217,082 50,334,274 -- 1,690,389 8,880,986
--------------- --------------------- ------------------ -------------- ---------------------
NET REALIZED AND
UNREALIZED GAIN (LOSS)
ON INVESTMENTS:
Net realized gain
(loss) on security
transactions.......... (100) 4,405 1,704 (4) (369)
Net unrealized
appreciation
(depreciation) of
investments during the
period................ 46,592,674 39,709,584 (2,082,173) 7,132,135 12,766,247
--------------- --------------------- ------------------ -------------- ---------------------
Net gains (losses) on
investments......... 46,592,574 39,713,989 (2,080,469) 7,132,131 12,765,878
--------------- --------------------- ------------------ -------------- ---------------------
Net increase (decrease)
in net assets
resulting from
operations............ $93,476,684 $88,194,395 $ (368,936) $ 9,356,043 $23,433,069
--------------- --------------------- ------------------ -------------- ---------------------
--------------- --------------------- ------------------ -------------- ---------------------
<CAPTION>
DIVIDEND AND INTERNATIONAL
GROWTH FUND ADVISERS FUND
SUB-ACCOUNT SUB-ACCOUNT
----------------- ---------------
<S> <C> <C>
INVESTMENT INCOME:
Dividends.............. $ 2,791,111 $ 549,708
EXPENSES:
Mortality and expense
undertakings.......... (1,345,449) (178,157)
----------------- ---------------
Net investment income
(loss).............. 1,445,662 371,551
----------------- ---------------
Capital gains income... 3,429,737 --
----------------- ---------------
NET REALIZED AND
UNREALIZED GAIN (LOSS)
ON INVESTMENTS:
Net realized gain
(loss) on security
transactions.......... )(2 (772)
Net unrealized
appreciation
(depreciation) of
investments during the
period................ 15,619,433 852,373
----------------- ---------------
Net gains (losses) on
investments......... 15,619,431 851,601
----------------- ---------------
Net increase (decrease)
in net assets
resulting from
operations............ $ 20,494,830 $1,223,152
----------------- ---------------
----------------- ---------------
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
73
<PAGE>
SEPARATE ACCOUNT ONE
ITT HARTFORD LIFE & ANNUITY INSURANCE COMPANY
STATEMENT OF CHANGES IN NET ASSETS
FOR THE SIX MONTHS ENDED JUNE 30, 1996 (UNAUDITED)
<TABLE>
<CAPTION>
MONEY
BOND FUND STOCK FUND MARKET FUND
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
------------- ------------- -------------
<S> <C> <C> <C>
OPERATIONS:
Net investment income
(loss)................ $ 2,755,778 $ 1,682,698 $ 2,384,764
Capital gains income... -- 23,889,792 --
Net realized gain
(loss) on security
transactions.......... (12,446) (58) --
Net unrealized
appreciation
(depreciation) of
investments during the
period................ (5,219,584) 44,917,140 --
------------- ------------- -------------
Net increase (decrease)
in net assets
resulting from
operations............ (2,476,252) 70,489,572 2,384,764
------------- ------------- -------------
UNIT TRANSACTIONS:
Purchases.............. 28,530,992 166,176,273 84,932,523
Net transfers.......... 2,469,037 57,540,519 (32,560,834)
Surrenders............. (2,340,123) (9,406,610) (6,541,693)
Net annuity
transactions.......... 2,062 228,563 21,030
------------- ------------- -------------
Net increase (decrease)
in net assets
resulting from unit
transactions.......... 28,661,968 214,538,745 45,851,026
------------- ------------- -------------
Total increase
(decrease) in net
assets................ 26,185,716 285,028,317 48,235,790
NET ASSETS:
Beginning of period.... 90,906,165 539,291,619 101,636,964
------------- ------------- -------------
End of period.......... $ 117,091,881 $ 824,319,936 $ 149,872,754
------------- ------------- -------------
------------- ------------- -------------
ITT HARTFORD LIFE & ANNUITY INSURANCE COMPANY
STATEMENT OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED DECEMBER 31, 1995
MONEY
BOND FUND STOCK FUND MARKET FUND
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
------------- ------------- -------------
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
------------- ------------- -------------
------------- ------------- -------------
</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>
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)................ $ 14,667,028 $ (1,853,868) $ 1,711,533 $ 533,523 $ 1,786,205 $ 1,445,662
Capital gains income... 32,217,082 50,334,274 -- 1,690,389 8,880,986 3,429,737
Net realized gain
(loss) on security
transactions.......... (100) 4,405 1,704 (4) (369) (2)
Net unrealized
appreciation
(depreciation) of
investments during the
period................ 46,592,674 39,709,584 (2,082,173) 7,132,135 12,766,247 15,619,433
--------------- ----------------- --------------- ------------- ----------------- -------------
Net increase (decrease)
in net assets
resulting from
operations............ 93,476,684 88,194,395 (368,936) 9,356,043 23,433,069 20,494,830
--------------- ----------------- --------------- ------------- ----------------- -------------
UNIT TRANSACTIONS:
Purchases.............. 288,533,717 209,690,127 7,622,335 44,822,342 60,710,094 98,039,452
Net transfers.......... 87,768,011 69,981,542 (23,468) 18,464,037 32,222,792 46,602,288
Surrenders............. (27,904,699) (12,780,050) (1,285,967) (1,299,399) (5,048,063) (2,443,690)
Net annuity
transactions.......... 48,455 173,121 -- (1,751) 89,523 90,603
--------------- ----------------- --------------- ------------- ----------------- -------------
Net increase (decrease)
in net assets
resulting from unit
transactions.......... 348,445,484 267,064,740 6,312,900 61,985,229 87,974,346 142,288,653
--------------- ----------------- --------------- ------------- ----------------- -------------
Total increase
(decrease) in net
assets................ 441,922,168 355,259,135 5,943,964 71,341,272 111,407,415 162,783,483
NET ASSETS:
Beginning of period.... 1,378,778,206 728,892,329 58,753,440 77,352,090 296,053,822 137,407,988
--------------- ----------------- --------------- ------------- ----------------- -------------
End of period.......... $ 1,820,700,374 $1,084,151,464 $64,697,404 $ 148,693,362 $407,461,237 $300,191,471
--------------- ----------------- --------------- ------------- ----------------- -------------
--------------- ----------------- --------------- ------------- ----------------- -------------
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)................ $ 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
--------------- ----------------- --------------- ------------- ----------------- -------------
--------------- ----------------- --------------- ------------- ----------------- -------------
<CAPTION>
INTERNATIONAL
ADVISERS FUND
SUB-ACCOUNT
-------------
<S> <C>
OPERATIONS:
Net investment income
(loss)................ $ 371,551
Capital gains income... --
Net realized gain
(loss) on security
transactions.......... (772)
Net unrealized
appreciation
(depreciation) of
investments during the
period................ 852,373
-------------
Net increase (decrease)
in net assets
resulting from
operations............ 1,223,152
-------------
UNIT TRANSACTIONS:
Purchases.............. 18,733,852
Net transfers.......... 10,963,355
Surrenders............. (387,375)
Net annuity
transactions.......... 5,106
-------------
Net increase (decrease)
in net assets
resulting from unit
transactions.......... 29,314,938
-------------
Total increase
(decrease) in net
assets................ 30,538,090
NET ASSETS:
Beginning of period.... 12,285,684
-------------
End of period.......... $42,823,774
-------------
-------------
INTERNATIONAL
ADVISERS FUND
SUB-ACCOUNT*
-------------
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
-------------
-------------
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
75
<PAGE>
SEPARATE ACCOUNT ONE
ITT HARTFORD LIFE & ANNUITY INSURANCE COMPANY
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 1996 (UNAUDITED)
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 Funds are valued at
the closing net asset value per share as determined by the appropriate
Fund as of June 30, 1996.
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.
76
<PAGE>
ITT HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
SEPARATE ACCOUNT FIVE
<PAGE>
SEPARATE ACCOUNT FIVE
ITT HARTFORD LIFE & ANNUITY INSURANCE COMPANY
STATEMENT OF ASSETS & LIABILITIES
JUNE 30, 1996 (UNAUDITED)
<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 764,083
Cost $ 763,846
Market Value......... $ 747,458 -- --
Hartford Stock Fund,
Inc.
Shares 2,278,489
Cost $ 7,920,746
Market Value......... -- $8,549,482 --
HVA Money Market Fund,
Inc.
Shares 7,236,879
Cost $ 7,236,879
Market Value......... -- -- $7,236,878
Hartford Advisers Fund,
Inc.
Shares 5,868,678
Cost $11,370,027
Market Value......... -- -- --
Hartford Capital
Appreciation Fund,
Inc.
Shares 3,792,583
Cost $13,080,640
Market Value......... -- -- --
Hartford Mortgage
Securities Fund, Inc.
Shares 345,317
Cost $ 362,209
Market Value......... -- -- --
Hartford Index Fund,
Inc.
Shares 1,100,669
Cost $ 2,243,101
Market Value......... -- -- --
Hartford International
Opportunities Fund,
Inc.
Shares 2,544,691
Cost $ 3,311,232
Market Value......... -- -- --
Hartford Dividend and
Growth Fund, Inc.
Shares 3,175,834
Cost $ 4,134,265
Market Value......... -- -- --
Hartford International
Advisers Fund, Inc.
Shares 488,201
Cost $ 547,665
Market Value......... -- -- --
Due from ITT Hartford
Life and Annuity
Insurance Company..... 12,465 229,780 --
Receivable from fund
shares sold........... -- -- 200,919
------------ ----------- -----------
Total Assets........... 759,923 8,779,262 7,437,797
------------ ----------- -----------
LIABILITIES:
Due to ITT Hartford
Life and Annuity
Insurance Company..... -- -- 200,532
Payable for fund shares
purchased............. 12,464 229,876 --
------------ ----------- -----------
Total Liabilities...... 12,464 229,876 200,532
------------ ----------- -----------
Net Assets (variable
life contract
liabilities).......... $ 747,459 $8,549,386 $7,237,265
------------ ----------- -----------
------------ ----------- -----------
Units Outstanding...... 642,948 5,761,123 6,684,819
Accumulation Unit Value
at end of period...... $ 1.162547 $ 1.483979 $ 1.082642
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
78
<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 764,083
Cost $ 763,846
Market Value......... -- -- -- -- -- -- --
Hartford Stock Fund,
Inc.
Shares 2,278,489
Cost $ 7,920,746
Market Value......... -- -- -- -- -- -- --
HVA Money Market Fund,
Inc.
Shares 7,236,879
Cost $ 7,236,879
Market Value......... -- -- -- -- -- -- --
Hartford Advisers Fund,
Inc.
Shares 5,868,678
Cost $11,370,027
Market Value......... $11,812,416 -- -- -- -- -- --
Hartford Capital
Appreciation Fund,
Inc.
Shares 3,792,583
Cost $13,080,640
Market Value......... -- $13,731,199 -- -- -- -- --
Hartford Mortgage
Securities Fund, Inc.
Shares 345,317
Cost $ 362,209
Market Value......... -- -- $ 357,712 -- -- -- --
Hartford Index Fund,
Inc.
Shares 1,100,669
Cost $ 2,243,101
Market Value......... -- -- -- $2,379,283 -- -- --
Hartford International
Opportunities Fund,
Inc.
Shares 2,544,691
Cost $ 3,311,232
Market Value......... -- -- -- -- $3,448,156 -- --
Hartford Dividend and
Growth Fund, Inc.
Shares 3,175,834
Cost $ 4,134,265
Market Value......... -- -- -- -- -- $4,479,289 --
Hartford International
Advisers Fund, Inc.
Shares 488,201
Cost $ 547,665
Market Value......... -- -- -- -- -- -- $ 563,312
Due from ITT Hartford
Life and Annuity
Insurance Company..... 150,086 75,560 -- 51,938 46,854 49,696 7,392
Receivable from fund
shares sold........... -- -- 15 -- -- -- --
---------- --------------- -------------- ---------- ---------------- ----------- -------------
Total Assets........... 11,962,502 13,806,759 357,727 2,431,221 3,495,010 4,528,985 570,704
---------- --------------- -------------- ---------- ---------------- ----------- -------------
LIABILITIES:
Due to ITT Hartford
Life and Annuity
Insurance Company..... -- -- 14 -- -- -- --
Payable for fund shares
purchased............. 150,344 75,554 -- 51,931 46,879 49,849 7,390
---------- --------------- -------------- ---------- ---------------- ----------- -------------
Total Liabilities...... 150,344 75,554 14 51,931 46,879 49,849 7,390
---------- --------------- -------------- ---------- ---------------- ----------- -------------
Net Assets (variable
life contract
liabilities).......... $11,812,158 $13,731,205 $ 357,713 $2,379,290 $3,448,131 $4,479,136 $ 563,314
---------- --------------- -------------- ---------- ---------------- ----------- -------------
---------- --------------- -------------- ---------- ---------------- ----------- -------------
Units Outstanding...... 8,683,183 9,503,116 307,736 1,594,386 2,754,691 2,982,823 459,847
Accumulation Unit Value
at end of period...... $1.360349 $ 1.444916 $ 1.162399 $1.492292 $ 1.251731 $ 1.501644 $ 1.225000
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
79
<PAGE>
SEPARATE ACCOUNT FIVE
ITT HARTFORD LIFE & ANNUITY INSURANCE COMPANY
STATEMENT OF OPERATIONS
JUNE 30, 1996 (UNAUDITED)
<TABLE>
<CAPTION>
MONEY
STOCK MARKET
BOND FUND FUND FUND
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
---------- --------- ---------
<S> <C> <C> <C>
INVESTMENT INCOME:
Dividends.............. $17,598 $ 52,822 $143,892
---------- --------- ---------
Net investment income
(loss).............. 17,598 52,822 143,892
---------- --------- ---------
Capital gains income... -- 185,013 --
---------- --------- ---------
NET REALIZED AND
UNREALIZED GAIN (LOSS)
ON INVESTMENTS:
Net realized gain
(loss) on security
transactions.......... (707) 584 --
Net unrealized
appreciation
(depreciation) of
investments during the
period................ (23,434) 407,197 --
---------- --------- ---------
Net gains (losses) on
investments......... (24,141) 407,781 --
---------- --------- ---------
Net increase (decrease)
in net assets
resulting from
operations............ $(6,543) $645,616 $143,892
---------- --------- ---------
---------- --------- ---------
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
80
<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.............. $124,246 $ 44,300 $8,665 $17,029 $30,034 $ 36,754 $6,969
--------- ---------------- ----------- -------- -------------- ---------- ------------
Net investment income
(loss).............. 124,246 44,300 8,665 17,029 30,034 36,754 6,969
--------- ---------------- ----------- -------- -------------- ---------- ------------
Capital gains income... 116,357 542,857 -- 18,617 46,012 41,509 --
--------- ---------------- ----------- -------- -------------- ---------- ------------
NET REALIZED AND
UNREALIZED GAIN (LOSS)
ON INVESTMENTS:
Net realized gain
(loss) on security
transactions.......... (1,712) (1,192) (710) 3,846 110 (133) 17
Net unrealized
appreciation
(depreciation) of
investments during the
period................ 251,575 435,317 (7,409) 98,281 77,349 201,826 10,714
--------- ---------------- ----------- -------- -------------- ---------- ------------
Net gains (losses) on
investments......... 249,863 434,125 (8,119) 102,127 77,459 201,693 10,731
--------- ---------------- ----------- -------- -------------- ---------- ------------
Net increase (decrease)
in net assets
resulting from
operations............ $490,466 $1,021,282 $ 546 $137,773 $153,505 $279,956 $17,700
--------- ---------------- ----------- -------- -------------- ---------- ------------
--------- ---------------- ----------- -------- -------------- ---------- ------------
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
81
<PAGE>
Separate Account Five
ITT HARTFORD LIFE & ANNUITY INSURANCE COMPANY
STATEMENT OF CHANGES IN NET ASSETS
FOR THE SIX MONTHS ENDED JUNE 30, 1996 (UNAUDITED)
<TABLE>
<CAPTION>
MONEY
BOND FUND STOCK FUND MARKET FUND
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
------------ ------------- -------------
<S> <C> <C> <C>
OPERATIONS:
Net investment income
(loss)................ $ 17,598 $ 52,822 $ 143,892
Capital gains income... -- 185,013 --
Net realized gain
(loss) on security
transactions.......... (707) 584 --
Net unrealized
appreciation
(depreciation) of
investments during the
period................ (23,434) 407,197 --
------------ ------------- -------------
Net increase (decrease)
in net assets
resulting from
operations............ (6,543) 645,616 143,892
------------ ------------- -------------
UNIT TRANSACTIONS:
Purchases.............. -- -- 28,103,002
Net transfers.......... 461,788 4,191,329 (24,409,036)
Surrenders............. (12,384) (88,521) (106,584)
Net loan withdrawals... -- (25,669) (1,119,149)
Cost of insurance and
other fees............ (1,693) (17,180) (31,729)
------------ ------------- -------------
Net increase (decrease)
in net assets
resulting from unit
transactions.......... 447,711 4,059,959 2,436,504
------------ ------------- -------------
Total increase
(decrease) in net
assets................ 441,168 4,705,575 2,580,396
NET ASSETS:
Beginning of period.... 306,291 3,843,811 4,656,869
------------ ------------- -------------
End of period.......... $ 747,459 $ 8,549,386 $ 7,237,265
------------ ------------- -------------
------------ ------------- -------------
ITT HARTFORD LIFE & ANNUITY INSURANCE COMPANY
STATEMENT OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED DECEMBER 31, 1995
MONEY
BOND FUND STOCK FUND MARKET FUND
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
------------ ------------- -------------
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.
82
<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)................ $ 124,246 $ 44,300 $ 8,665 $ 17,029 $ 30,034 $ 36,754
Capital gains income... 116,357 542,857 -- 18,617 46,012 41,509
Net realized gain
(loss) on security
transactions.......... (1,712) (1,192) (710) 3,846 110 (133)
Net unrealized
appreciation
(depreciation) of
investments during the
period................ 251,575 435,317 (7,409) 98,281 77,349 201,826
------------- ----------------- --------------- ------------ ------------------ ------------
Net increase (decrease)
in net assets
resulting from
operations............ 490,466 1,021,282 546 137,773 153,505 279,956
------------- ----------------- --------------- ------------ ------------------ ------------
UNIT TRANSACTIONS:
Purchases.............. 17,370 -- -- -- -- --
Net transfers.......... 7,511,482 5,394,193 208,203 1,697,763 2,013,368 2,536,251
Surrenders............. (121,982) (123,910) (10,148) (19,212) (36,589) (76,898)
Net loan withdrawals... (62,477) (39,747) -- (75,249) (3,685) (9,038)
Cost of insurance and
other fees............ (25,562) (32,271) (676) (5,217) (7,539) (9,135)
------------- ----------------- --------------- ------------ ------------------ ------------
Net increase (decrease)
in net assets
resulting from unit
transactions.......... 7,318,831 5,198,265 197,379 1,598,085 1,965,555 2,441,180
------------- ----------------- --------------- ------------ ------------------ ------------
Total increase
(decrease) in net
assets................ 7,809,297 6,219,547 197,925 1,735,858 2,119,060 2,721,136
NET ASSETS:
Beginning of period.... 4,002,861 7,511,658 159,788 643,432 1,329,071 1,758,000
------------- ----------------- --------------- ------------ ------------------ ------------
End of period.......... $ 11,812,158 $ 13,731,205 $ 357,713 $ 2,379,290 $ 3,448,131 $ 4,479,136
------------- ----------------- --------------- ------------ ------------------ ------------
------------- ----------------- --------------- ------------ ------------------ ------------
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
------------- ----------------- --------------- ------------ ------------------ ------------
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)................ $ 6,969
Capital gains income... --
Net realized gain
(loss) on security
transactions.......... 17
Net unrealized
appreciation
(depreciation) of
investments during the
period................ 10,714
-----------
Net increase (decrease)
in net assets
resulting from
operations............ 17,700
-----------
UNIT TRANSACTIONS:
Purchases.............. --
Net transfers.......... 394,658
Surrenders............. (3,051)
Net loan withdrawals... (2,392)
Cost of insurance and
other fees............ (1,234)
-----------
Net increase (decrease)
in net assets
resulting from unit
transactions.......... 387,981
-----------
Total increase
(decrease) in net
assets................ 405,681
NET ASSETS:
Beginning of period.... 157,633
-----------
End of period.......... $563,314
-----------
-----------
INTERNATIONAL
ADVISERS
FUND
SUB-ACCOUNT*
-----------
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.
83
<PAGE>
SEPARATE ACCOUNT FIVE
ITT HARTFORD LIFE & ANNUITY INSURANCE COMPANY
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 1996 (UNAUDITED)
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.
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 June 30, 1996.
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.
84
<PAGE>
HARTFORD MUTUAL FUNDS
STATEMENTS OF NET ASSETS
<PAGE>
HARTFORD BOND FUND, INC.
STATEMENT OF NET ASSETS
JUNE 30, 1996 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
----------- -------------
<C> <S> <C>
U.S. TREASURY & FEDERAL AGENCIES -- 40.8%
U.S. TREASURY NOTES -- 19.8%
$ 7,100,000 5.0% due 01/31/98.......... $ 6,986,840
1,250,000 6.4% due 08/15/02.......... 1,238,281
4,000,000 5.4% due 11/30/97.......... 3,966,248
8,000,000 5.6% due 10/31/97.......... 7,965,000
4,000,000 6.0% due 08/31/97.......... 4,002,500
6,000,000 6.8% due 06/30/99.......... 6,071,250
2,450,000 6.9% due 07/31/99.......... 2,485,219
3,000,000 7.3% due 02/15/98.......... 3,053,439
4,500,000 7.5% due 10/31/99.......... 4,649,063
9,500,000 7.3% due 05/15/04.......... 9,835,464
6,000,000 7.5% due 02/15/05.......... 6,309,372
12,000,00 10.8% due 02/15/03.......... 14,628,744
-------------
71,191,420
-------------
U.S. TREASURY BONDS -- 6.6%
1,900,000 8.1% due 08/15/19........... 2,130,968
8,650,000 8.8% due 05/15/17........... 10,263,761
9,400,000 8.9% due 08/15/17........... 11,280,000
-------------
23,674,729
-------------
U.S. TREASURY STRIPS -- 1.7%
14,100,00 0.0% due 11/15/08........... 6,033,390
-------------
FEDERAL NATIONAL MORTGAGE
ASSOCIATION -- 11.6%
Pass-Throughs
4,825,450 6.5% due 01/01/11........... 4,669,625
9,853,568 7.0% due 12/01/25........... 9,480,906
-------------
14,150,531
Forward Commitments (TBA)
20,225,000 6.0% due 07/25/11........... 19,118,955
Multifamily Dus
2,986,255 6.48% due 12/01/05.......... 2,845,659
FNMA Debenture
5,000,000 8.2% due 03/10/16........... 5,465,350
-------------
41,580,496
-------------
FEDERAL HOME LOAN BANK -- 1.1%
Federal Home Loan Bank
4,000,000 6.4% due 04/10/01........... 3,935,776
-------------
Total U.S. treasury & federal
agencies.................... $ 146,415,811
-------------
-------------
CORPORATE BONDS AND NOTES -- 37.6%
CABLE -- 3.5%
Continental Cablevision Inc.
6,000,000 9.5% due 08/01/13........... 6,550,230
Tele-Communications Inc.
1,000,000 8.7% due 09/15/04........... 1,025,939
Tele-Communications Inc.
5,000,000 6.6% due 02/15/05........... 4,999,625
-------------
12,575,794
-------------
FINANCIAL SERVICES -- 16.5%
Ahmanson (H.F.) & Co.
5,500,000 6.4% due 09/01/98........... 5,482,895
Aristar Inc.
3,000,000 6.3% due 07/15/00........... 2,938,059
Bank of New York
3,000,000 7.625% due 07/15/02......... 3,080,949
Capital Holding Corp.
4,800,000 0.0% due 02/07/97........... 4,678,560
CORPORATE BONDS AND NOTES -- (continued)
FINANCIAL SERVICES -- (CONTINUED)
Charles Schwab Corp.
$ 3,000,000 6.6% due 08/04/98........... $ 2,999,820
Chase Manhattan Corp.-New
3,000,000 7.8% due 11/01/99........... 3,090,891
Ford Motor Credit Co.
5,000,000 6.1% due 01/09/06........... 4,560,740
Ford Motor Credit Co.
3,000,000 7.8% due 11/15/02........... 3,100,062
General Motors Acceptance
Corp.
4,000,000 5.9% due 01/12/99........... 3,934,040
Lehman Brothers Inc.
3,000,000 10.0% due 05/15/99.......... 3,239,136
Mass. Mutual Life Insurance
Co.
10,000,000 7.6% due 11/15/23........... 9,662,800
Mellon Financial Co.
4,000,000 6.3% due 06/01/00........... 3,935,696
Salomon Inc.
3,000,000 6.9% due 09/15/97........... 3,013,320
Salomon Inc.
2,500,000 7.0% due 01/20/98........... 2,516,145
Salomon Inc.
3,000,000 5.9% due 03/17/97........... 2,991,984
-------------
59,225,097
-------------
HEALTH CARE -- 0.7%
Columbia/HCA Healthcare Corp.
2,500,000 6.7% due 07/15/45........... 2,454,775
-------------
INDUSTRIAL -- 5.4%
ADT Operations Inc.
3,290,000 8.3% due 08/01/00........... 3,386,555
Auburn Hills Trust
4,000,000 12.0% due 05/01/20.......... 5,772,280
Lockheed Martin Corp.
3,000,000 7.3% due 05/15/06........... 2,977,833
Tenneco Inc.
6,850,000 8.0% due 11/15/99........... 7,074,701
-------------
19,211,368
-------------
MEDIA & ENTERTAINMENT -- 1.3%
News America Holdings Inc.
1,000,000 7.7% due 10/30/25........... 916,491
Time Warner Entertainment Co.
4,000,000 8.4% due 03/15/23........... 3,884,384
-------------
4,800,875
-------------
OIL & GAS -- 0.8%
Union Oil Co. of California
2,500,000 9.4% due 02/15/11........... 2,899,358
-------------
PAPER & FOREST PRODUCTS --
0.6%
Georgia-Pacific Corp.
2,000,000 9.9% due 06/15/97........... 2,065,908
-------------
REAL ESTATE -- 2.1%
Duke Realty LP
5,000,000 7.3% due 09/22/02........... 4,916,340
ERP Operating LP
2,500,000 6.3% due 12/22/97........... 2,510,868
-------------
7,427,208
-------------
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
86
<PAGE>
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
----------- -------------
<C> <S> <C>
CORPORATE BONDS AND NOTES -- (CONTINUED)
TELEPHONE AND ELECTRIC UTILITIES -- 4.9%
Bell Telephone Co. of
Pennsylvania
$ 3,000,000 8.4% due 12/15/30........... $ 3,415,827
Chesapeake & Potomac Telephone
Co.
1,500,000 8.3% due 08/01/31........... 1,678,316
Commonwealth Edison Co.
7,000,000 6.4% due 07/15/00........... 6,839,651
GTE Corp.
5,000,000 9.1% due 06/01/03........... 5,527,645
-------------
17,461,439
-------------
TRANSPORTATION -- 1.9%
AMR Corp.
5,600,000 10.2% due 03/15/20.......... 6,722,716
-------------
Total corporate bonds &
notes....................... $ 134,844,537
-------------
-------------
FOREIGN/YANKEE BONDS & NOTES -- 11.1%
EURO BONDS -- 1.1%
Bacardi-Martini Finance
4,000,000 5.8% due 07/23/98........... 3,932,500
-------------
FOREIGN CORPORATIONS -- 5.2%
Abbey National First
Capital-Yankee
7,575,000 8.2% due 10/15/04........... 8,017,941
BCH Cayman Islands-Yankee
5,000,000 7.5% due 06/15/05........... 4,974,030
Bank of Montreal-Yankee
3,000,000 10.0% due 09/01/98.......... 3,194,490
Skandinaviska Enskilda
Banken-Yankee
2,500,000 6.9% due 02/15/09........... 2,346,588
-------------
18,533,048
-------------
FOREIGN GOVERNMENTS -- 4.8%
Republic of Italy-Global
2,000,000 6.9% due 09/27/23........... 1,802,500
KFW International Finance
Inc.-Yankee
5,000,000 7.0% due 03/01/13........... 4,842,045
Manitoba Province-Yankee
5,000,000 9.6% due 12/01/18........... 6,137,200
Quebec Province-Yankee
4,000,000 9.1% due 03/01/00........... 4,316,416
-------------
17,098,161
-------------
Total foreign/yankee bonds &
notes....................... $ 39,563,709
-------------
-------------
ASSET BACKED SECURITIES -- 7.4%
American Express Master Trust
Series 92-1, Class A
2,000,000 6.05% due 06/15/98.......... 2,002,120
Chemical Master Credit Card
Trust Series 96-1, Class A
ASSET BACKED SECURITIES -- (CONTINUED)
$11,400,000 5.55% due 09/15/03.......... $ 10,905,924
Discover Card Trust Series
91-E, Class B
5,000,000 7.85% due 05/21/99.......... 5,061,050
Oakwood Mortgage Investors
Inc. Series 94-A, Class B1
3,782,186 8.4% due 02/15/15........... 3,816,124
U.S. Air Inc. Enhanced
Equipment Nts. Series Class A
5,000,000 6.76% due 04/15/06.......... 4,743,850
-------------
Total asset backed
securities.................. $ 26,529,068
-------------
-------------
SHORT-TERM SECURITIES -- 8.4%
REPURCHASE AGREEMENT
30,255,000 Interest in $107,879,000 joint
repurchase agreements dated
06/28/96 with Dillon Read &
Co., Inc. and JP Morgan
Securities at 5.3% due
07/01/96; maturity amount
$30,268,363; (Collateralized
by $15,000,000 U.S. Treasury
Bond at 8.75% due 08/15/20,
$49,685,000 U.S. Treasury
Note at 6.75% due 05/31/99
and $43,194,000 U.S.
Treasury Note at 5.625% due
10/31/97)................... $ 30,255,000
-------------
-------------
</TABLE>
<TABLE>
<S> <C> <C>
DIVERSIFICATION OF ASSETS:
Total U.S. treasury & federal agencies....... 40.8 % $146,415,811
Total corporate bonds & notes................ 37.6 134,844,537
Total foreign/yankee bonds & notes........... 11.1 39,563,709
Total asset backed securities................ 7.4 26,529,068
Total short-term securities.................. 8.4 30,255,000
------ ------------
Total investment in securities
**(Identified cost $379,437,523)........... 105.2% 377,608,125
Excess of liabilities over cash and
receivables................................ (5.2) (18,936,214)
------ ------------
Net assets (Applicable to $0.97824 per share
based on 366,648,463 shares outstanding)... 100.0% $358,671,911
------ ------------
------ ------------
SUMMARY OF SHAREHOLDERS' EQUITY:
Capital stock, par value $.10 per share; authorized
800,000,000 shares; outstanding 366,648,463
shares............................................. $ 36,664,846
Capital surplus...................................... 335,082,135
Undistributed net realized gain on investments....... (11,245,672)
Unrealized appreciation of investments............... (1,829,398)
------------
Net assets, applicable to shares outstanding......... $358,671,911
------------
------------
</TABLE>
* Non-income producing during period.
** Aggregate cost for Federal income tax purposes.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
87
<PAGE>
HARTFORD STOCK FUND, INC.
STATEMENT OF NET ASSETS
JUNE 30, 1996 (UNAUDITED)
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
----------- ---------------
<S> <C> <C>
COMMON STOCKS -- 94.6%
COMMUNICATION EQUIPMENT -- 3.4%
*290,000 Bay Networks Inc.............. $ 7,467,500
*360,000 Cisco Systems Inc............. 20,385,000
*400,000 DSC Communications Corp....... 12,050,000
310,000 General Motors Corp. Class
H........................... 18,638,750
395,000 Motorola Inc.................. 24,835,625
---------------
83,376,875
---------------
COMPUTERS & OFFICE
EQUIPMENT -- 3.9%
*150,000 Compaq Computer Corp.......... 7,387,500
490,000 International Business
Machines Corp............... 48,510,000
750,000 Xerox Corp.................... 40,125,000
---------------
96,022,500
---------------
CONSUMER NON-DURABLES -- 10.0%
250,000 Colgate Palmolive Co.......... 21,187,500
205,000 Gillette Co................... 12,786,875
191,900 Kellogg Co.................... 14,056,675
140,000 Nike Inc. Class B............. 14,385,000
1,200,000 Pepsico Inc................... 42,450,000
560,000 Philip Morris Cos., Inc....... 58,240,000
550,000 Proctor & Gamble Co........... 49,843,750
950,000 Sara Lee Corp................. 30,756,250
---------------
243,706,050
---------------
ELECTRONICS -- 1.2%
395,000 Intel Corp.................... 29,007,813
---------------
ENERGY & SERVICES -- 8.0%
425,000 Amoco Corp.................... 30,759,375
190,000 Burlington Resources Inc...... 8,170,000
500,000 Exxon Corp.................... 43,437,500
330,000 Royal Dutch Petroleum Co. (NY
Shares)..................... 50,737,500
410,000 Schlumberger Ltd.............. 34,542,500
370,000 Total S.A. ADR................ 13,736,250
400,000 Unocal Corp................... 13,500,000
---------------
194,883,125
---------------
FINANCIAL SERVICES -- 13.5%
650,000 Allstate Corp................. 29,656,250
740,000 American Express Co........... 33,022,500
280,000 American International Group
Inc......................... 27,615,000
*300,000 Associates First Capital Corp.
Class A..................... 11,287,500
700,000 Citicorp...................... 57,837,500
250,000 Marsh & McLennan Co........... 24,125,000
555,000 Merrill Lynch & Co., Inc...... 36,144,375
350,000 NationsBank Corp.............. 28,918,750
524,600 State Street Boston Corp...... 26,754,600
1,150,000 Travelers Group Inc........... 52,468,750
---------------
327,830,225
---------------
FOREIGN STOCKS - JAPAN -- 1.9%
315,000 Eisai Co. Ltd................. 5,943,396
250,000 Fuji Bank Ltd................. 5,377,814
300,000 Matsushita Electric Industrial
Co.......................... 5,578,343
300,000 Nomura Securities Co. Ltd..... 5,851,791
260,000 Sankyo Co. Ltd................ 6,730,471
250,000 Sanwa Bank Ltd................ 4,625,832
300,000 Takeda Chemical Industries
Ltd......................... 5,304,895
300,000 Toyota Motor Corp............. 7,492,480
---------------
46,905,022
---------------
HEALTH CARE -- 12.2%
900,000 Abbott Laboratories........... $ 39,150,000
600,000 American Home Products
Corp........................ 36,075,000
250,000 Bristol-Myers Squibb Co....... 22,500,000
700,000 Johnson & Johnson............. 34,650,000
670,000 Merck & Co., Inc.............. 43,298,750
570,000 Pfizer Inc.................... 40,683,750
479,000 Rhone-Poulenc S.A. ADR........ 12,693,500
450,000 SmithKline Beecham PLC ADR.... 24,468,750
*520,000 Tenet Healthcare Corp......... 11,115,000
590,000 Warner-Lambert Co............. 32,450,000
---------------
297,084,750
---------------
INDUSTRIAL MATERIAL -- 5.5%
125,000 Air Products & Chemicals
Inc......................... 7,218,750
600,000 Crown Cork & Seal Inc......... 27,000,000
435,000 Dow Chemical Co............... 33,060,000
230,000 E.I. du Pont de Nemours &
Co.......................... 18,198,750
450,000 International Paper Co........ 16,593,750
500,000 Phelps Dodge Corp............. 31,187,500
---------------
133,258,750
---------------
MANUFACTURING -- 8.4%
620,000 Boeing Co..................... 54,017,500
385,000 Caterpillar Inc............... 26,083,750
1,000,000 General Electric Co........... 86,500,000
280,000 Ingersoll-Rand Co............. 12,250,000
227,500 United Technologies Corp...... 26,162,500
---------------
205,013,750
---------------
MEDIA & SERVICES -- 4.1%
575,000 Gannett Co., Inc.............. 40,681,250
644,438 Gaylord Entertainment Co.
Class A..................... 18,205,359
*1,055,000 Viacom Inc. Class B........... 41,013,125
---------------
99,899,734
---------------
PRIVATE PLACEMENT -- 0.2%
*374,548 Autotote Corp. Class A........ 463,503
---------------
RETAIL -- 6.5%
500,000 Home Depot Inc................ 27,000,000
1,250,000 McDonald's Corp............... 58,437,500
*625,000 Toys R Us Inc................. 17,812,500
2,200,000 Wal-Mart Stores Inc........... 55,825,000
---------------
159,075,000
---------------
SOFTWARE & SERVICES -- 5.3%
90,000 Automatic Data Processing
Inc......................... 3,476,250
*275,000 Computer Sciences Corp........ 20,556,250
*450,000 Electronic Data Systems
Corp........................ 24,187,500
420,000 First Data Corp............... 33,442,500
*260,000 Microsoft Corp................ 31,232,500
*375,000 Oracle Corp................... 14,789,063
---------------
127,684,063
---------------
TRANSPORTATION & SERVICES -- 4.8%
*270,000 AMR Corp...................... 24,570,000
550,000 Conrail Inc................... 36,506,250
975,000 Southwest Airlines Co......... 28,396,875
400,000 Union Pacific Corp............ 27,950,000
---------------
117,423,125
---------------
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
88
<PAGE>
<TABLE>
<CAPTION>
MARKET MARKET
SHARES VALUE VALUE
----------- --------------- ---------------
<S> <C> <C>
COMMON STOCKS -- (CONTINUED)
UTILITIES -- 5.6%
985,000 AT&T Corp.... $ 61,070,000
950,000 MCI Communications Corp.... 24,343,750
600,000 Pacific Gas & Electric Co.. 13,950,000
360,000 Repsol S.A. ADR............ 12,510,000
480,000 SBC Communications Inc..... 23,640,000
--------------
135,513,750
Total common stocks........ --------------
$2,297,148,035
--------------
--------------
CONVERTIBLE PREFERRED STOCKS -- 1.4%
CONSUMER NON-DURABLES -- 1.3%
5,000,000 RJR Nabisco Corp. Preferred
Equity Redemptive Cumulative
Stock..................... 32,500,000
--------------
REAL ESTATE -- 0.06%
59,750 Security Capital Pacific... 1,568,438
--------------
Total preferred stocks..... $ 34,068,438
--------------
--------------
PRINCIPAL
AMOUNT
------------
SHORT-TERM SECURITIES -- 4.0%
$97,830,000 Repurchase Agreement dated
6/28/96 with Aubrey Lanston
at 5.45% due 7/1/96; maturity
amount $97,874,431.13;
(Collateralized by $66,054,000
U.S. Treasury Bond at 12% due
8/15/13 and a $31,776,000
Treasury Note at 5.75%
due 9/30/97).............. $ 97,830,000
--------------
Total short-term securities... 97,830,000
--------------
--------------
</TABLE>
<TABLE>
<S> <C> <C>
DIVERSIFICATION OF ASSETS:
Total common stocks.......................... 94.6 % $2,297,148,034
Total convertible preferred stocks........... 1.4 34,068,438
Total short-term securities.................. 4.0 97,830,000
------ --------------
Total investment in securities
**(Identified cost $1,965,707,013)......... 100.1 2,429,046,472
Excess of liabilities over cash and
receivables................................ (0.1 ) (2,504,209)
------ --------------
Net assets (Applicable to $3.75226 per share
based on 646,688,572 shares outstanding)... 100.0 % $2,426,542,263
------ --------------
------ --------------
SUMMARY OF SHAREHOLDERS' EQUITY:
Capital stock, par value $.10 per share; authorized
2,000,000,000 shares; outstanding 646,688,572
shares............................................. $ 64,668,857
Capital surplus...................................... 1,802,305,179
Undistributed net realized gain on investments....... 96,232,930
Unrealized appreciation of investments............... 463,335,297
--------------
Net assets, applicable to shares outstanding......... $2,426,542,263
--------------
--------------
</TABLE>
* Non-income producing during period.
** Aggregate cost for Federal income tax purposes.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
89
<PAGE>
HVA MONEY MARKET FUND, INC.
STATEMENT OF NET ASSETS
JUNE 30, 1996 (UNAUDITED)
<TABLE>
<CAPTION>
AMORTIZED
PRINCIPAL COST AND
AMOUNT VALUE
----------- --------------
<C> <S> <C>
COMMERCIAL PAPER -- 76.0%
Air Products & Chemicals Inc.
$ 5,000,000 5.16% due 07/11/96............... $ 4,992,833
American Home Food Products Inc.
5,000,000 5.34% due 07/10/96............... 4,993,325
American Honda Finance Corp.
5,000,000 5.32% due 09/10/96............... 4,947,539
Aristar Inc.
5,000,000 5.33% due 08/09/96............... 4,971,129
10,000,000 5.39% due 08/16/96............... 9,931,128
BFCE US Finance Corp.
10,000,000 5.32% due 07/15/96............... 9,979,311
Corporate Asset Funding Co.
5,000,000 5.28% due 07/25/96............... 4,982,400
Countrywide Funding Corp.
5,000,000 5.32% due 07/09/96............... 4,994,089
5,000,000 5.32% due 07/25/96............... 4,982,267
5,000,000 5.42% due 09/03/96............... 4,951,822
Daimler-Benz NA Corp.
10,000,000 5.25% due 08/28/96............... 9,915,417
Eksportfinans A/S
6,170,000 5.18% due 07/10/96............... 6,162,010
3,830,000 5.18% due 07/11/96............... 3,824,489
Finova Capital Corp.
5,000,000 5.52% due 07/26/96............... 4,980,833
5,000,000 5.37% due 08/13/96............... 4,967,929
General Electric Capital Corp.
5,000,000 5.30% due 10/21/96............... 4,917,556
General Motors Acceptance Corp.
5,000,000 5.62% due 01/21/97............... 4,840,767
Goldman Sachs Group LP
5,000,000 5.32% due 07/08/96............... 4,994,828
Lucent Technologies Inc.
5,000,000 5.26% due 07/29/96............... 4,979,544
5,000,000 5.27% due 07/29/96............... 4,979,506
5,000,000 5.37% due 09/16/96............... 4,942,571
MCI Communications Corp.
10,000,000 5.33% due 07/03/96............... 9,997,039
Monsanto Co.
5,000,000 5.28% due 08/16/96............... 4,966,267
5,000,000 5.40% due 09/17/96............... 4,941,500
5,000,000 5.27% due 09/24/96............... 4,937,785
National Fuel Gas Co.
5,000,000 5.44% due 08/26/96............... 4,957,689
National Rural Utilities
5,000,000 5.28% due 07/29/96............... 4,979,467
5,000,000 5.35% due 08/23/96............... 4,960,618
NYNEX Corp.
5,000,000 5.32% due 08/06/96............... 4,973,400
Robins (A.H.) Co., Inc.
5,000,000 5.40% due 08/21/96............... 4,961,750
Sanwa Business Credit Corp.
5,000,000 5.42% due 08/05/96............... 4,973,653
10,000,000 5.38% due 08/19/96............... 9,926,772
Sharp Electronics Corp.
5,000,000 5.29% due 07/12/96............... 4,991,918
5,000,000 5.28% due 08/16/96............... 4,966,267
5,000,000 5.40% due 10/11/96............... 4,923,500
Sherwin-Williams Co.
5,000,000 5.03% due 08/09/96............... 4,972,754
5,000,000 5.04% due 09/03/96............... 4,955,200
Sherwood Medical Co.
5,000,000 5.41% due 09/16/96............... 4,942,143
Sony Capital Corp.
$ 5,000,000 5.38% due 07/12/96............... $ 4,991,781
5,000,000 5.41% due 09/18/96............... 4,940,640
Spintab-Swedmortgage AB
5,000,000 5.32% due 07/17/96............... 4,988,178
5,000,000 5.40% due 10/16/96............... 4,919,750
5,000,000 5.38% due 10/17/96............... 4,919,300
Sumitomo Bank Capital Markets Inc.
10,000,000 5.43% due 08/05/96............... 9,947,208
Tambrands Inc.
10,000,000 5.38% due 10/17/96............... 9,838,600
Transamerica Finance Group Inc.
5,000,000 5.27% due 07/22/96............... 4,984,629
6,500,000 5.39% due 09/10/96............... 6,430,903
U.S. Bankcorp
5,000,000 5.30% due 07/22/96............... 4,984,542
5,000,000 5.28% due 07/23/96............... 4,983,867
Walt Disney Co.
5,000,000 5.22% due 07/17/96............... 4,988,400
5,000,000 5.18% due 09/13/96............... 4,946,761
Westpac Capital Corp.
5,000,000 5.30% due 08/16/96............... 4,966,139
5,000,000 5.40% due 09/10/96............... 4,946,750
5,000,000 5.38% due 02/07/97............... 4,834,864
Whirlpool Corp.
6,000,000 5.30% due 08/19/96............... 5,956,717
5,100,000 5.30% due 08/26/96............... 5,057,953
5,000,000 5.37% due 09/03/96............... 4,952,267
Zeneca Wilmington Inc.
10,000,000 5.30% due 07/17/96............... 9,976,444
5,000,000 5.33% due 08/12/96............... 4,968,908
--------------
Total commercial paper............. $ 335,083,613
--------------
--------------
U.S. TREASURIES & AGENCIES -- 3.4%
U.S. Treasury Notes
5,000,000 6.25% due 08/31/96............... 5,002,620
10,000,000 6.88% due 02/28/97............... 10,098,419
--------------
$ 15,101,039
--------------
--------------
REPURCHASE AGREEMENT -- 9.0%
39,848,000 U.S. Govt Repo 5.30% due
07/01/96......................... $ 39,848,000
--------------
--------------
CERTIFICATE OF DEPOSIT -- 2.3%
10,000,000 Bank Of Tokyo 5.49% due 09/04/96... 10,000,000
--------------
Total short-term securities........ $ 400,032,652
--------------
--------------
CORPORATE NOTES -- 10.1%
Bear Stearns Co.
5,000,000 5.69% due 04/08/97............... 5,006,792
Commercial Credit Group Inc.
5,000,000 7.38% due 11/15/96............... 5,037,757
5,000,000 6.75% due 01/15/97............... 5,028,677
General Electric Capital Corp. MTN
5,000,000 5.97% due 08/21/96............... 4,999,815
General Motors Acceptance Corp. MTN
5,000,000 7.88% due 02/28/97............... 5,084,657
Grand Metro Investment Corp.
14,450,000 8.13% due 08/15/96............... 14,489,007
Greyhound Financial Corp.
5,000,000 8.25% due 03/11/97............... 5,074,554
--------------
Total corporate notes.............. $ 44,721,260
--------------
--------------
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
90
<PAGE>
<TABLE>
<CAPTION>
AMORTIZED
COST AND
VALUE
--------------
<S> <C> <C>
DIVERSIFICATION OF ASSETS:
Total short-term securities.................. 90.7% $ 400,032,653
Total corporate notes........................ 10.1 44,721,260
------ --------------
Total investment in sercurities
**(Identified cost $444,753,913)........... 100.9 444,753,913
Excess of liablilities over cash and
receivables................................ (0.9) (3,762,882)
------ --------------
Net assets (Applicable to $1.00 per share
based on 440,991,031 shares outstanding) 100.0% $ 440,991,031
------ --------------
------ --------------
SUMMARY OF SHAREHOLDERS' EQUITY:
Capital stock, par value $.10 per share; authorized
800,000,000 shares; outstanding 440,991,031
shares............................................. $ 44,099,103
Capital surplus...................................... 396,891,928
--------------
Net assets, applicable to shares outstanding......... $ 440,991,031
--------------
--------------
</TABLE>
* Non-income producing during period.
** Aggregate cost for Federal income tax purposes.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
91
<PAGE>
HARTFORD ADVISERS FUND, INC.
STATEMENT OF NET ASSETS
JUNE 30, 1996 (UNAUDITED)
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
----------- ---------------
<C> <S> <C>
COMMON STOCKS -- 64.7%
COMMUNICATIONS EQUIPMENT -- 2.2%
*360,000 Bay Networks Inc.............. $ 9,270,000
*495,000 Cisco Systems Inc............. 28,029,375
*485,000 DSC Communications Corp....... 14,610,625
405,000 General Motors Corp. Class
H........................... 24,350,625
555,000 Motorola Inc.................. 34,895,625
---------------
111,156,250
---------------
COMPUTERS & OFFICE
EQUIPMENT -- 2.8%
*300,000 Compaq Computer Corp.......... 14,775,000
705,000 International Business
Machines Corp............... 69,795,000
1,050,000 Xerox Corp.................... 56,175,000
---------------
140,745,000
---------------
CONSUMER NON-DURABLES -- 6.5%
350,000 Colgate-Palmolive Co.......... 29,662,500
250,000 Gillette Co................... 15,593,750
257,500 Kellogg Co.................... 18,861,875
160,000 Nike Inc. Class B............. 16,440,000
1,600,000 Pepsico Inc................... 56,600,000
765,000 Philip Morris Cos., Inc....... 79,560,000
760,000 Proctor & Gamble Co........... 68,875,000
1,300,000 Sara Lee Corp................. 42,087,500
---------------
327,680,625
---------------
ELECTRONICS -- 0.9%
605,000 Intel Corp.................... 44,429,688
---------------
ENERGY & SERVICES -- 5.6%
650,000 Amoco Corp.................... 47,043,750
220,000 Burlington Resources Inc...... 9,460,000
765,000 Exxon Corp.................... 66,459,375
460,000 Royal Dutch Petroleum Co. (NY
Shares)..................... 70,725,000
610,000 Schlumberger Ltd.............. 51,392,500
530,000 Total S.A. ADR................ 19,676,250
525,000 Unocal Corp................... 17,718,750
---------------
282,475,625
---------------
FINANCIAL SERVICES -- 9.3%
985,000 Allstate Corp................. 44,940,625
1,060,000 American Express Co........... 47,302,500
395,000 American International Group
Inc......................... 38,956,875
*446,900 Associates First Capital Corp.
Class A..................... 16,814,613
980,000 Citicorp...................... 80,972,500
400,000 Marsh & McLennan Co........... 38,600,000
765,000 Merrill Lynch & Co., Inc...... 49,820,625
520,000 NationsBank Corp.............. 42,965,000
636,900 State Street Boston Corp...... 32,481,900
1,630,000 Travelers Group Inc........... 74,368,750
---------------
467,223,388
---------------
FOREIGN STOCKS - JAPAN -- 1.4%
472,500 Eisai Co. Ltd................. 8,915,094
375,000 Fuji Bank Ltd................. 8,066,721
450,000 Matsushita Electric Industrial
Co.......................... 8,367,514
450,000 Nomura Securities Co. Ltd..... 8,777,687
400,000 Sankyo Co. Ltd................ 10,354,571
375,000 Sanwa Bank Ltd................ 6,938,748
370,000 Takeda Chemical Inds Ltd...... 6,542,703
450,000 Toyota Motor Corp............. 11,238,720
---------------
69,201,759
---------------
HEALTH CARE -- 8.4%
1,275,000 Abbott Laboratories........... $ 55,462,500
820,000 American Home Products
Corp........................ 49,302,500
360,000 Bristol-Myers Squibb Co....... 32,400,000
980,000 Johnson & Johnson............. 48,510,000
900,000 Merck & Co., Inc.............. 58,162,500
835,000 Pfizer Inc.................... 59,598,125
718,900 Rhone-Poulenc S.A. ADR........ 19,050,850
660,000 SmithKline Beecham PLC ADR.... 35,887,500
*710,000 Tenet Healthcare Corp......... 15,176,250
910,000 Warner-Lambert Co............. 50,050,000
---------------
423,600,225
---------------
INDUSTRIAL MATERIALS -- 4.0%
275,000 Air Products & Chemicals
Inc......................... 15,881,250
800,000 Crown Cork & Seal Inc......... 36,000,000
680,000 Dow Chemical Co............... 51,680,000
375,000 E.I. du Pont de Nemours &
Co.......................... 29,671,875
710,000 International Paper Co........ 26,181,250
640,000 Phelps Dodge Corp............. 39,920,000
---------------
199,334,375
---------------
MANUFACTURING -- 5.8%
880,000 Boeing Co..................... 76,670,000
530,000 Caterpillar Inc............... 35,907,500
1,400,000 General Electric Co........... 121,100,000
500,000 Ingersoll-Rand Co............. 21,875,000
307,500 United Technologies Corp...... 35,362,500
---------------
290,915,000
---------------
MEDIA & SERVICES -- 2.8%
780,000 Gannett Co., Inc.............. 55,185,000
931,088 Gaylord Entertainment Co.
Class A..................... 26,303,222
*1,500,000 Viacom Inc. Class B........... 58,312,500
---------------
139,800,722
---------------
PRIVATE PLACEMENT -- 0.01%
*561,821 Autotote Corp. Class A........ 695,253
---------------
RETAIL -- 4.3%
700,000 Home Depot Inc................ 37,800,000
1,700,000 McDonald's Corp............... 79,475,000
*850,000 Toys R Us Inc................. 24,225,000
3,050,000 Wal-Mart Stores Inc........... 77,393,750
---------------
218,893,750
---------------
SOFTWARE & SERVICES -- 3.7%
110,000 Automatic Data Processing
Inc......................... 4,248,750
*450,000 Computer Sciences Corp........ 33,637,500
*625,000 Electronic Data Systems
Corp........................ 33,593,750
600,000 First Data Corp............... 47,775,000
*380,000 Microsoft Corp................ 45,647,500
*540,000 Oracle Corp................... 21,296,250
---------------
186,198,750
---------------
TRANSPORTATION -- 3.3%
*400,000 AMR Corp...................... 36,400,000
760,000 Conrail Inc................... 50,445,000
1,330,000 Southwest Airlines Co......... 38,736,250
580,000 Union Pacific Corp............ 40,527,500
---------------
166,108,750
---------------
UTILITY -- 3.8%
1,400,000 AT&T Corp..................... 86,800,000
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
92
<PAGE>
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
----------- ---------------
<C> <S> <C>
COMMON STOCKS -- (CONTINUED)
UTILITY -- (CONTINUED)
1,375,000 MCI Communications Corp....... $ 35,234,375
900,000 Pacific Gas & Electric Co..... 20,925,000
450,000 Repsol S.A. ADR............... 15,637,500
720,000 SBC Communications Inc........ 35,460,000
--------------
194,056,875
--------------
Total common stocks........... $3,262,516,035
---------------
---------------
CONVERTIBLE PREFERRED STOCKS -- 1.0%
CONSUMER NON-DURABLES -- 0.9%
7,000,000 RJR Nabisco Corp. Preferred
Equity Redemptive
Cumulative Stock............ 45,500,000
---------------
REAL ESTATE -- 0.1%
198,950 Security Capital Pacific...... 5,222,438
---------------
Total preferred stocks........ $ 50,722,438
---------------
---------------
PRINCIPAL
AMOUNT
-----------
U.S. TREASURY & FEDERAL AGENCIES -- 25.7%
U.S. TREASURY BONDS -- 2.0%
$100,000,000 7.25% due 05/15/16........... 102,437,500
---------------
U.S. TREASURY NOTE -- 17.0%
175,000,000 7.50% due 11/15/01.......... 182,656,250
175,000,000 6.38% due 08/15/02.......... 173,359,375
50,000,000 5.75% due 10/31/97.......... 49,859,350
40,000,000 6.50% due 08/15/97.......... 40,237,480
110,000,000 7.75% due 12/31/99.......... 114,640,570
25,000,000 7.50% due 02/15/05.......... 26,289,050
150,000,000 6.25% due 05/31/00.......... 149,015,550
125,000,000 6.50% due 08/15/05.......... 123,125,000
---------------
859,182,625
---------------
GOVERNMENT NATIONAL MORTGAGE
ASSOCIATION -- 4.3%
117,607,234 6.50% due 06/15/23-03/15/26.. 109,692,018
107294490.4 7.00% due 03/15/23-03/15/26.. 102,910,023
4,509,350 9.00% due 06/20/16-07/20/16.. 4,766,518
---------------
217,368,559
---------------
FEDERAL HOME LOAN MORTGAGE
CORP. -- 2.4%
125,771,701 6.50% due 08/01/25-05/01/26.. 117,819,823
---------------
Total U.S. treasury & federal
agencies..................... $1,296,808,507
---------------
---------------
CORPORATE BONDS AND NOTES -- 6.3%
FINANCIAL SERVICES -- 3.9%
Associates Corp. N.A. MTN
15,000,000 6.500% due 10/15/02......... 14,599,650
Bank of Boston Corp.
15,000,000 6.625% due 02/01/04......... 9,632,670
Banponce Corp.
14,825,000 6.750% due 12/15/05......... 13,773,240
Bayerische Landesbank-NY
15,000,000 5.625% due 02/26/01......... 14,298,600
Chase Manhattan Corp.-New
10,000,000 8.500% due 02/15/02......... 10,670,560
FINANCIAL SERVICES -- (CONTINUED)
20,000,000 CIT Group Holdings Inc.
6.750% due 05/14/01......... 19,891,600
First Interstate Bancorp
12,000,000 9.000% due 11/15/04......... 12,742,296
First National Bank of Boston
5,000,000 8.000% due 09/15/04......... 5,198,535
Ford Motor Credit Co.
10,000,000 5.625% due 12/15/98......... 9,794,310
General Motors Acceptance Corp.
15,000,000 5.625% due 02/01/99......... 14,666,865
Great Western Financial Corp.
10,000,000 8.625% due 12/01/98......... 10,349,310
Home Savings of America
15,000,000 6.000% due 11/01/00......... 14,446,440
London Insurance Group Inc.
20,500,000 6.875% due 09/15/05......... 19,661,120
National Bank of Detroit
5,000,000 8.250% due 11/01/24......... 5,477,775
Travelers Group Inc.
10,000,000 6.250% due 12/01/05......... 9,232,250
Travelers/Aetna P&C Corp.
10,000,000 6.750% due 04/15/01......... 9,936,490
---------------
194,371,711
---------------
INDUSTRIAL -- 1.5%
Browning-Ferris Industries Inc.
15,000,000 6.100% due 01/15/03......... 14,327,715
Honeywell Inc.
13,135,000 6.600% due 04/15/01......... 13,010,743
Penney J.C. & Co.
9,500,000 6.000% due 05/01/06......... 8,667,610
Phillips Electronics NV
15,000,000 7.200% due 06/01/26......... 14,925,330
Postal Square LP
4,568,570 8.950% due 06/15/22......... 5,196,749
Tele-Communications Inc.
10,000,000 7.250% due 08/01/05......... 9,253,080
Zeneca Wilmington Inc.
10,000,000 6.300% due 06/15/03......... 9,577,970
---------------
74,959,197
---------------
UTILITY -- 0.9%
Hydro-Quebec
15,000,000 7.375% due 02/01/03......... 15,243,750
Pacific Gas & Electric Co.
11,000,000 7.875% due 03/01/02......... 11,345,884
Southern California Gas Co.
10,000,000 5.750% due 11/15/03......... 9,156,890
360 Communications Co.
15,000,000 7.125% due 03/01/03......... 14,388,105
---------------
50,134,629
---------------
Total corporate bonds and
notes....................... $ 319,465,537
---------------
---------------
MUNICIPAL -- 0.4%
Mount Sinai School of
Medicine-NY Revenue
20,000,000 6.000% due 07/01/03......... 19,400,360
---------------
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
93
<PAGE>
HARTFORD ADVISERS FUND, INC.
STATEMENT OF NET ASSETS (CONTINUED)
JUNE 30, 1996 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
----------- --------------
<C> <S> <C>
FOREIGN GOVERNMENTS -- 0.6%
City Of Naples Italy
$20,000,000 7.520% due 07/15/06......... $ 19,862,174
Thailand Kingdom
10,000,000 5.880% due 09/30/00......... 9,585,500
---------------
$ 29,447,674
---------------
---------------
SHORT-TERM SECURITIES -- 0.8%
U.S. Govt Repo
41,465,000 Repurchase Agreement dated
06/28/96 with Lehman
Brothers, Inc. 5.47% due
07/01/96; maturity amount
$41,483,901; (Collateralized
by $15,045,000 and $26,420,000
U.S. Treasury Strips at 0% due
02/15/11 and 02/15/15
respectively)............... 41,465,000
---------------
Total short-term securities.. $ 41,465,000
---------------
---------------
</TABLE>
<TABLE>
<S> <C> <C>
DIVERSIFICATION OF ASSETS:
Total common stocks.......................... 64.7 % $ 3,262,516,034
Total preferred stocks....................... 1.0 50,722,438
Total U.S. treasuries & agencies............. 25.7 1,296,808,507
Total corporate bonds and notes.............. 6.3 319,465,537
Total foreign government..................... 0.6 29,447,674
Total municipal.............................. 0.4 19,400,360
Total short-term securities.................. 0.8 41,465,000
------ ---------------
Total investment in securities
**(Identified cost $4,362,245,132)......... 99.5 5,019,825,550
Excess of liabilities over cash and
receivables................................ 0.5 25,857,116
------ ---------------
Net assets (Applicable to $2.01279 per share
based on 2,506,806,944 shares outstanding) 100.0% $ 5,045,682,666
------ ---------------
------ ---------------
SUMMARY OF SHAREHOLDERS' EQUITY:
Capital stock, par value $.10 per share; authorized
4,000,000,000 shares; outstanding 2,506,806,944
shares............................................. $ 250,680,694
Capital surplus...................................... 3,973,949,994
Undistributed net realized gain on investments....... 163,477,681
Unrealized appreciation of investments............... 657,574,297
---------------
Net assets, applicable to shares outstanding......... $ 5,045,682,666
---------------
---------------
</TABLE>
* Non-income producing during period.
** Aggregate cost for Federal income tax purposes.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
94
<PAGE>
HARTFORD U.S. GOVERNMENT MONEY MARKET FUND, INC.
STATEMENT OF NET ASSETS
JUNE 30, 1996 (UNAUDITED)
<TABLE>
<CAPTION>
AMORTIZED
PRINCIPAL COST AND
AMOUNT VALUE
- ---------- -----------
<S> <C> <C>
U.S. TREASURIES & AGENCIES -- 86.2%
AGENCY DISCOUNT NOTES -- 66.4%
Federal Farm Credit Bank
$ 1,060,000 5.26% due 07/25/96.......... $ 1,056,283
500,000 5.30% due 08/23/96.......... 496,099
500,000 5.17% due 07/08/96.......... 499,497
--------------
2,051,879
Federal Home Loan Bank
500,000 5.17% due 07/02/96.......... 499,928
500,000 5.25% due 07/08/96.......... 499,490
525,000 5.34% due 09/03/96.......... 520,016
--------------
1,519,434
Federal Home Loan Mortgage
500,000 5.24% due 07/11/96.......... 499,272
585,000 5.30% due 08/08/96.......... 581,727
500,000 5.34% due 09/04/96.......... 495,179
--------------
1,576,179
Federal National Mortgage
Association
500,000 5.30% due 07/11/96.......... 499,264
590,000 5.28% due 07/18/96.......... 588,529
500,000 5.23% due 07/30/96.......... 497,893
--------------
1,585,686
U.S. TREASURIES -- 19.8%
U.S. Treasury Notes
1,000,000 6.50% due 09/30/96.......... 1,003,322
1,000,000 6.50% due 11/30/96.......... 1,004,363
--------------
2,007,685
--------------
Total U.S. treasuries &
agencies...................... $ 8,740,863
--------------
--------------
REPURCHASE AGREEMENT -- 13.6%
$ 1,384,000 Interest in $107,879,000 joint
repurchase agreements dated
06/28/96 with Dillon Read &
Co., Inc., and JP Morgan
Securities at 5.3% due
07/01/96; maturity amount
$1,384,611; (Collateralized
by $15,000,000 U.S. Treasury
Bond 8.75% due 08/15/20,
$49,685,000 U.S. Treasury
Note at 6.75% due 05/31/99
and $43,194,000 U.S.
Treasury Note at 5.625% due
10/31/97)................... $ 1,384,000
--------------
Total short-term securities... $ 10,124,863
--------------
--------------
</TABLE>
<TABLE>
<S> <C> <C>
DIVERSIFICATION OF ASSETS:
Total investment in short-term securities
*(Identified cost $10,124,863)............. 99.8% $ 10,124,863
Excess of liabilities over cash and
receivables................................ 0.2 21,170
------ ------------
Net assets (Applicable to $1.00 per share
based on 10,146,033 shares outstanding).... 100.0% $ 10,146,033
------ ------------
------ ------------
SUMMARY OF SHAREHOLDERS' EQUITY:
Common stock, par value $.10 per share; authorized
100,000,000 shares; outstanding 10,146,033
shares............................................. $ 1,014,603
Capital surplus...................................... 9,131,430
------------
Net assets, applicable to shares outstanding......... $ 10,146,033
------------
------------
</TABLE>
* Aggregate cost for Federal income tax purposes.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
95
<PAGE>
HARTFORD CAPITAL APPRECIATION FUND, INC.
STATEMENT OF NET ASSETS
JUNE 30, 1996 (UNAUDITED)
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
----------- --------------
<C> <S> <C>
COMMON STOCKS -- 91.8%
BUSINESS SERVICES -- 1.8%
*350,000 Ionics Inc.................... $ 16,450,000
*620,000 J Ray Mcdermott............... 15,500,000
455,000 Manpower Inc.................. 17,858,750
*70,800 USCS International Inc........ 1,362,900
--------------
51,171,650
--------------
COMMUNICATION EQUIPMENT -- 6.7%
*907,250 Bay Networks.................. 23,361,688
*550,000 Cisco Systems Inc............. 31,143,750
695,000 ECI Telecom Ltd............... 16,158,750
*550,000 Geotek Communication.......... 7,528,125
555,100 Lucent Technologies Inc....... 21,024,413
285,000 Northern Telecom Ltd.......... 15,496,875
*772,000 Oak Industries Inc............ 22,870,500
*55,000 Pagemart Wireless Inc. Class
A........................... 550,000
*81,800 Plantronics Inc............... 3,006,150
*229,000 Premisys Communications....... 13,969,000
*200,000 Qualcomm...................... 10,625,000
500,000 Scitex Corp Ord............... 8,625,000
*293,900 3 Com Corp.................... 13,445,925
--------------
187,805,175
--------------
COMPUTERS & OFFICE
EQUIPMENT -- 3.1%
*395,000 Adaptec Inc................... 18,713,125
*350,000 Digital Equipment Corp........ 15,750,000
125,000 Hewlett-Packard Co............ 12,453,125
*487,700 Stratus Computer.............. 14,143,300
*600,000 Symbol Technologies........... 26,700,000
--------------
87,759,550
--------------
CONSUMER DURABLES -- 0.4%
198,970 Chrysler Corp................. 12,336,140
--------------
CONSUMER NON-DURABLES -- 2.4%
671,900 Baesa ADR..................... 8,902,675
*444,900 Canandaigua Wine Inc.......... 13,347,000
*64,000 Donna Karan Intl. Inc......... 1,792,000
700,000 Interstate Bakeries........... 18,725,000
*300,000 Odwalla Inc................... 6,000,000
*344,500 Revlon Inc. Class A........... 10,033,563
280,000 Universal Corp................ 7,420,000
--------------
66,220,238
--------------
ELECTRONICS -- 5.5%
693,300 Advanced Micro Devices Inc.... 9,446,213
*80,000 Altera Corp................... 3,040,000
542,200 Augat Inc..................... 10,369,575
*755,000 Cognex Corp................... 12,174,375
*300,000 Credence Systems Corp......... 4,031,250
741,300 Harman International.......... 36,509,025
*100,000 LSI Logic Corp................ 2,600,000
*568,500 Maxim Integrated Products..... 15,527,156
418,750 Molex Inc..................... 12,300,781
555,000 Philips NV ADR................ 18,106,875
*210,000 Silicon Graphics Inc.......... 5,040,000
*465,000 Silicon Valley Group.......... 8,718,750
736,700 Singer Company................ 14,918,175
*60,000 Solectron Corp................ 2,272,500
--------------
155,054,675
--------------
ENERGY & SERVICES -- 6.3%
548,800 Alberta Energy................ 10,290,000
ENERGY & SERVICES --
(CONTINUED)
510,600 Ashland Inc................... $ 20,232,525
*360,000 Energy Ventures............... 11,700,000
*350,000 Ensco International Inc....... 11,375,000
*300,000 Input Output Inc.............. 9,712,500
300,000 Noble Affiliates Inc.......... 11,325,000
*1,348,000 Noble Drilling Corp........... 18,703,500
297,000 Pogo Producing Company........ 11,323,125
320,300 Repsol S.A. ADR............... 11,130,425
*586,000 Rowan Cos..................... 8,643,500
*250,000 Seagull Energy................ 6,250,000
300,000 USX-Marathon Group............ 6,037,500
*437,900 Varco International........... 7,936,938
457,500 Vastar Resources Inc.......... 17,099,063
720,000 YPF S.A. Sponsored ADR........ 16,200,000
--------------
177,959,075
--------------
FINANCIAL SERVICES -- 12.0%
433,000 Ace Ltd....................... 20,351,000
491,000 Allstate Corp................. 22,401,875
396,400 Ambac Inc..................... 20,662,350
*700,000 Dime Bancorp Inc.............. 9,100,000
1,000,000 First Colony Corp............. 31,000,000
1,000,000 Greenpoint Financial Corp..... 28,250,000
*431,970 Imperial Credit Industries.... 13,067,093
519,100 Legg Mason Inc................ 16,740,975
200,070 Long Island Bancorp........... 6,114,639
318,700 MBIA Inc...................... 24,818,763
984,600 Morgan Stanley Group.......... 48,368,475
600,000 North American Mortgage
Company..................... 10,425,000
700,000 Peoples Bank.................. 15,575,000
375,000 PMI Group..................... 15,937,500
460,400 Transatlantic Holding Inc..... 32,285,550
720,000 Washington Mutual............. 21,510,000
--------------
336,608,219
--------------
FOREIGN SECURITIES -- 3.7%
719,500 Amersham Int'l PLC............ 11,671,492
945,000 Eisai Co. Ltd................. 17,830,189
1,853,000 Far East Levingston Ship...... 10,243,373
810,000 Sankyo........................ 20,968,007
36,325 Sulzer Ag-part Cert........... 21,723,746
*543,750 Transocean As................. 14,086,138
461,600 Usinor Sacilor................ 6,651,878
--------------
103,174,822
--------------
HEALTH CARE -- 13.2%
620,000 Abbott Laboratories........... 26,970,000
290,000 Alpharma Inc. Class A......... 5,763,750
*325,000 Apria Healthcare.............. 10,196,875
354,200 Bard C R Inc.................. 12,042,800
910,000 Bergen Brunswig Corp. Class
A........................... 25,252,500
*400,000 Beverly Enterprises........... 4,800,000
*1,225,000 Biomet Inc.................... 17,609,375
*500,000 Cerner Corp................... 10,687,500
*650,000 Coventry Corp................. 10,237,500
*60,500 Datascope Corp................ 1,073,875
*145,000 Genetics Institute............ 9,207,500
348,750 Grancare Inc.................. 6,931,406
*476,800 Haemonetics................... 8,701,600
119,458 Hafslund Nycomed Class B
ADR......................... 806,342
*308,500 IDX Systems Corp.............. 12,031,500
*200,000 Immunex Corp.................. 2,725,000
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
96
<PAGE>
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
----------- --------------
<C> <S> <C>
COMMON STOCKS -- (CONTINUED)
HEALTH CARE -- (CONTINUED)
710,000 Ivax Corp..................... $ 11,271,250
641,700 Kinetic Concepts Inc.......... 9,946,350
*901,700 Magellan Health Services
Inc......................... 19,386,550
*265,500 Multicare Cos Inc............. 5,044,500
*79,100 Neurocrine Biosciences Inc.... 702,013
*21,700 Nycomed ASA ADR............... 306,513
*900,000 Perrigo....................... 10,125,000
510,000 Rhone-Poulenc S.A............. 34,233,750
960,000 Rhone-Poulenc Rorer........... 25,440,000
*970,500 Tenet Healthcare Corp......... 20,744,438
*1,009,700 Vencor Inc.................... 30,795,850
*984,600 Ventritex Inc................. 16,861,275
300,000 Zeneca Group ADR.............. 20,175,000
--------------
370,070,010
--------------
INDUSTRIAL MATERIALS -- 6.0%
473,000 Abitibi Price Inc............. 6,444,625
*1,400,000 Algoma Steel Inc.............. 5,075,000
*167,000 Alumax Inc.................... 5,072,625
350,000 British Steel PLC ADR......... 8,881,250
410,000 IMC Global Inc................ 15,426,250
290,000 Owens Corning Fiberglass
Corp........................ 12,470,000
975,800 Precision Castparts Corp...... 41,959,400
*1,830,000 Repap Enterprises............. 6,976,875
*212,900 Southern Energy Homes Inc..... 4,577,350
155,000 Sunbeam Corp.................. 2,286,250
*650,000 Titanium Metals Corp.......... 16,818,750
319,800 Toro Co....................... 10,593,375
*745,000 UCAR Intl. Corp............... 31,010,625
--------------
167,592,375
--------------
MANUFACTURING -- 3.1%
324,500 Boeing Company................ 28,272,063
510,000 Measurex Corp................. 14,917,500
*49,500 MSC Industrial Direct Class
A........................... 1,596,375
380,200 Northrop Grumman Corp......... 25,901,125
190,000 Rockwell Int'l. Corp.......... 10,877,500
*84,800 SPS Technologies Inc.......... 5,978,400
--------------
87,542,963
--------------
MEDIA & SERVICES -- 4.8%
*426,000 America Online Inc............ 18,637,500
*510,400 Berg Electronics.............. 12,122,000
*104,600 Chancellor Broadcasting
Company..................... 3,268,750
920,000 Liberty Media Class A......... 24,380,000
*1,273,700 Mobil Media Corp.............. 15,443,613
*503,800 Omnipoint Corp................ 13,130,288
*750,000 Pronet Inc.................... 9,187,500
*1,045,000 Tele-communications, Inc.
Class A..................... 18,940,625
*361,999 Viacom Inc. Class B........... 14,072,711
*199,900 Western Wireless Corp. Class
A........................... 4,272,863
--------------
133,455,849
--------------
REAL ESTATE -- 1.5%
255,200 Avalon Properties Inc......... 5,550,600
*1,017,400 Castle & Cooke Inc............ 16,278,400
246,500 Felcor Suite Hotels Inc....... 7,518,250
56,900 Liberty Property Trust........ 1,130,888
113,800 Oasis Residential............. 2,489,375
120,000 Starwood Lodging Trust........ 4,365,000
REAL ESTATE -- (CONTINUED)
360,500 Thornburg Mortgage Asset
Corp........................ $ 5,858,125
--------------
43,190,638
--------------
RETAIL -- 10.0%
*165,000 American Eagle Outfitters..... 2,949,375
475,000 Applebees Intl. Inc........... 15,259,375
*700,000 Cheesecake Factory............ 19,250,000
*295,800 Cuc International............. 10,500,900
200,000 Fila Holding SPA.............. 17,250,000
*405,000 Gymboree Corp................. 12,352,500
325,000 Home Depot Inc................ 17,550,000
*801,700 Landry's Seafood
Restaurants................. 19,842,075
*23,100 Planet Hollywood International
Inc......................... 623,700
*343,100 Red Lion Hotels Inc........... 7,205,100
458,100 Royal Caribbean............... 13,055,850
*701,000 Saks Holding Inc.............. 23,921,625
470,000 Sotheby's Holdings Class A.... 6,815,000
*666,400 Starbucks Coffee.............. 18,825,800
100,000 Talbots Inc................... 3,237,500
810,000 The Gap, Inc.................. 26,021,250
700,000 The Limited, Inc.............. 15,050,000
*594,800 Tommy Hilfiger Corp........... 31,896,150
*716,000 Urban Outfitters Inc.......... 18,079,000
--------------
279,685,200
--------------
SOFTWARE & SERVICES -- 6.8%
*600,000 BMC Software Inc.............. 35,850,000
*205,000 Broderbund Software........... 6,611,250
*200,000 Ceridian Corp................. 10,100,000
*893,900 Compuware Corp................ 35,309,050
*42,700 Dassault Systems S.A. ADR..... 1,323,700
265,109 First Data Corp............... 21,109,304
*176,400 FTP Software.................. 1,455,300
*310,000 HMT Technology Corp........... 4,882,500
*357,500 Integrated Systems Inc........ 14,322,344
*785,000 Mercury Interactive Corp...... 10,793,750
*200,000 Oracle Corp................... 7,887,500
*281,100 Policy Management Systems..... 14,055,000
*150,000 Rational Software Corp........ 8,062,500
*440,000 SPS Transaction Services
Corp........................ 7,920,000
*100,000 Sterling Software Inc......... 7,700,000
*318,600 Xeikon NV ADR................. 3,624,075
--------------
191,006,273
--------------
TRANSPORTATION -- 4.2%
*1,183,800 America West Airlines......... 26,043,600
*370,000 AMR........................... 33,670,000
1,000,000 Canadian Pacific Ltd.......... 22,000,000
*278,000 Landstar System Inc........... 8,062,000
*560,780 M.S. Carriers................. 11,495,990
*350,000 Swift Transportation.......... 6,693,750
410,000 Werner Enterprises, Inc....... 10,660,000
--------------
118,625,340
--------------
UTILITY -- 0.3%
320,000 Portugal Telecom S.A. ADR..... 8,400,000
142,000 Shandong Huaneng Power ADR.... 1,171,500
--------------
9,571,500
--------------
Total common stocks........... $2,578,829,691
--------------
--------------
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
97
<PAGE>
HARTFORD CAPITAL APPRECIATION FUND, INC.
STATEMENT OF NET ASSETS -- (CONTINUED)
JUNE 30, 1996 (UNAUDITED)
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
----------- --------------
<C> <S> <C>
CONVERTIBLE PREFERRED STOCKS -- 1.8%
CONSUMER DURABLES -- 1.2%
475,000 Sun Company PFD............... $ 14,012,500
--------------
FINANCIAL SERVICES -- 0.6%
170,400 Glendale Federal E............ 8,179,200
*287,100 Salomon/FSA Decs.............. 7,823,475
--------------
16,002,675
--------------
MANUFACTURING -- 0.7%
*1,228,000 Cooper Industries............. 20,569,000
--------------
Total convertible preferred
stocks...................... $ 50,584,175
--------------
--------------
PRINCIPAL
AMOUNT
- -----------
CORPORATE NOTES -- 0.5%
INDUSTRIAL --
$15,000,000 Unisys Corp. 144a 12.00% due
04/15/03.................... 15,337,500
--------------
--------------
SHARES
- ------------
WARRANTS -- 0.4%
*905,200 Nordic American Tanker........ 3,507,650
*255,638 Planet Hollywood Warrants..... 6,902,226
--------------
10,409,876
--------------
--------------
PRINCIPAL
AMOUNT
- -----------
SHORT-TERM SECURITIES -- 4.4%
$ 6,960,000 U.S. Treasury Bill
5.39% due 12/12/96.......... 6,800,040
116,695,000 Repurchase Agreement dated
06/28/96 with Swiss Bank at
5.48% due 07/01/96 maturity
amount $116,748,291;
(Collateralized by
$116,695,000 U.S. Treasury
Bond at 8.125% due
08/15/21)................... 116,695,000
--------------
Total short-term securities... $ 123,495,040
--------------
--------------
</TABLE>
<TABLE>
<S> <C> <C>
DIVERSIFICATION OF ASSETS:
Total common stocks.......................... 91.2% $2,578,829,691
Total convertible preferred stocks........... 2.5 50,584,175
Total corporate notes........................ 0.5 15,337,500
Total warrants............................... 0.4 10,409,876
Total short-term securities.................. 4.4 123,495,040
------ --------------
Total investment in securities
**(Identified cost $2,388,647,150)......... 99.0 2,778,656,282
Excess of liabilities over cash and
receivables................................ 1.0 29,279,580
------ --------------
Net assets (Applicable to $3.62054 per share
based on 775,556,626 shares outstanding)... 100.0% $2,807,935,862
------ --------------
------ --------------
SUMMARY OF SHAREHOLDERS' EQUITY:
Capital stock, par value $.10 per share; authorized
2,000,000,000 shares; outstanding 775,556,626
shares............................................. $ 77,555,663
Capital surplus...................................... 2,215,417,535
Undistributed net realized gain on investments....... 123,309,563
Unrealized appreciation of investments............... 391,653,102
--------------
Net assets, applicable to shares outstanding......... $2,807,935,862
--------------
--------------
</TABLE>
* Non-income producing during period.
** Aggregate cost for Federal income tax purposes.
FORWARD CURRENCY CONTRACTS -- NOTE 2 -- OUTSTANDING AT JUNE 30, 1996
<TABLE>
<CAPTION>
UNREALIZED
TOTAL AGGREGATE DELIVERY APPRECIATION/
DESCRIPTION VALUE FACE VALUE DATE (DEPRECIATION)
- ------------------------------ ---------- ---------- --------- -------------
<S> <C> <C> <C> <C>
French Francs (Sell) $29,042,522 $30,000,000 08/30/96 $ 957,478
British Pounds (Sell) 20,257,388 19,999,514 08/30/96 (257,872)
Japanese Yen (Sell) 14,049,522 15,000,000 08/30/96 950,478
-------------
$ 1,650,084
-------------
-------------
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
98
<PAGE>
HARTFORD MORTGAGE SECURITIES FUND, INC.
STATEMENT OF NET ASSETS
JUNE 30, 1996 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
- ----------- -------------
<C> <S> <C>
U.S. TREASURY & FEDERAL AGENCIES -- 77.6%
U.S. TREASURY NOTES -- 0.5%
$ 1,500,000 5.25% due 12/31/97.......... $ 1,484,063
-------------
FEDERAL HOME LOAN MORTGAGE
CORPORATION -- 28.4%
Pass-Throughs
4,500,000 6.0% due 06/25/11........... 4,252,500
21,750,917 6.5% due 02/01/09 -
07/25/26.................... 20,566,032
30,873,110 7.0% due 12/01/10 -
07/25/26.................... 29,810,250
3,825,601 7.5% due 01/01/24 -
06/01/25.................... 3,777,426
6,936,932 8.0% due 02/01/13 -
11/01/24.................... 6,999,747
6,214,374 8.5% due 07/01/01 -
05/01/25.................... 6,392,339
6,605,394 9.0% due 10/15/01 -
10/01/06.................... 6,878,647
7,401,838 9.5% due 11/01/08........... 7,834,180
3,841,075 10.0% due 09/01/05 -
11/01/20.................... 4,144,573
-------------
90,655,694
-------------
COLLATERALIZED MORTGAGE
OBLIGATIONS -- 0.3%
Federal Home Loan Mortgage
Corp. Series 1033, Class E
933,914 8.10% due 12/15/04.......... 942,096
-------------
FEDERAL NATIONAL MORTGAGE
ASSOCIATION -- 23.5%
Pass-Throughs
602,855 5.50% due 04/01/11.......... 557,642
5,456,338 6% due 02/01/26............. 4,954,419
1,991,955 6.2% due 01/01/06........... 1,858,803
19,444,992 6.5% due 01/01/09 -
09/01/26.................... 18,332,656
20,385,037 7.00% due 10/01/07 -
06/01/26.................... 19,782,572
6,705,620 7.50% due 11/01/10 -
02/01/26.................... 6,701,042
2,814,532 8.00% due 04/01/22.......... 2,854,048
10,121,996 8.50% due 06/01/24 -
07/25/26.................... 10,387,628
9,280,826 9.00% due 05/01/21 -
06/01/25.................... 9,690,364
-------------
75,119,173
-------------
COLLATERALIZED MORTGAGE
OBLIGATIONS -- 2.3%
Fanniemae Strip Series D,
Class 2
1,073,915 11.00% due 04/01/09......... 1,157,506
Federal National Mortgage
Association Series 90-142,
Class J
81,814 9.25% due 12/25/03.......... 81,584
Federal National Mortgage
Association Series 89-87,
Class G
1,546,701 8.75% due 02/25/18.......... 1,552,239
Federal National Mortgage
Association Series 91-G8,
Class D
3,433,234 8.50% due 03/25/19.......... 3,491,978
Federal National Mortgage
Association Series 90-108,
Class E
388,829 8.50% due 06/25/19.......... 397,073
Federal National Mortgage
Association Series 91-134,
Class H
716,066 7.95% due 03/25/20.......... 725,190
-------------
7,405,569
-------------
GOVERNMENT NATIONAL MORTGAGE
ASSOCIATION -- 22.6%
Pass-Throughs
18,105,993 7.00% due 01/15/24 -
09/15/26.................... 17,363,583
GOVERNMENT NATIONAL MORTGAGE
ASSOCIATION -- (CONTINUED)
$28,629,150 7.50% due 11/15/09 -
02/15/26.................... $ 28,218,332
11,404,158 8.00% due 02/15/01 -
12/15/25.................... 11,547,542
3,697,675 8.50% due 06/15/17 -
02/15/25.................... 3,807,434
2,447,041 9.00% due 01/15/25 -
12/15/25.................... 2,559,311
4,445,269 9.50% due 10/15/09 -
11/15/09.................... 4,784,355
2,603,468 10.00% due 11/15/09 -
05/15/13.................... 2,820,965
732,899 11.00% due 02/15/10 -
09/15/10.................... 817,183
89,367 11.25% due 01/15/01......... 96,012
117,695 12.00% due 05/15/15......... 133,944
96,591 12.50% due 06/15/14 -
08/15/14.................... 110,488
43,140 13.00% due 11/15/14......... 49,762
8,713 13.50% due 07/15/14......... 10,119
-------------
72,319,030
-------------
Total U.S. treasury & federal
agencies.................... $247,925,624
-------------
-------------
CORPORATE BONDS AND NOTES -- 0.9%
FINANCIAL SERVICES
Capital Holding Corp.
3,000,000 0.00% due 02/07/97.......... 2,924,100
-------------
-------------
ASSET-BACKED SECURITIES -- 1.2%
Corestates Home Equity Trust
Series 94-1, Class A
3,833,412 6.65% due 05/15/09.......... 3,809,262
-------------
-------------
COLLATERALIZED MORTGAGE OBLIGATIONS -- 17.5%
Bear Stearns Mortgage
Securities Inc. Series 95-1,
Class 1A
4,562,335 6.48% due 05/25/10.......... 4,353,572
Chase Mortgage Finance Corp.
Series 93-C2, Class 2A-3
5,142,462 8.25% due 01/25/24.......... 5,232,816
CMC Securities Corp. Series
92-D, Class D-2L
711,364 7.20% due 12/25/08.......... 703,198
Collateralized Mortgage
Obligation Trust Series 52,
Class A
(A)908,668 0.00% due 05/01/17.......... 538,895
Countrywide Mortgage Backed
Securities, Inc. Series 93-C,
Class A1
2,769,290 6.50% due 01/25/24.......... 2,757,410
GE Capital Mortgage Services,
Inc. Series 94-26, Class A
8,486,943 7.02% due 07/25/09.......... 8,301,826
GE Capital Mortgage Services,
Inc. Series 94-21, Class A
8,539,367 6.50% due 08/25/09.......... 8,222,130
GE Capital Mortgage Services,
Inc. Series 96-1, Class B2
618,192 6.75% due 02/25/11.......... 569,134
GE Capital Mortgage Services,
Inc. Series 96-1, Class M
1,852,608 6.75% due 02/25/11.......... 1,765,258
GE Capital Mortgage Services,
Inc. Series 96-10, Class B1
623,035 6.75% due 06/25/11.......... 583,629
GE Capital Mortgage Services,
Inc. Series 96-10, Class B2
623,035 6.75% due 06/25/11.......... 571,539
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
99
<PAGE>
HARTFORD MORTGAGE SECURITIES FUND, INC.
STATEMENT OF NET ASSETS -- (CONTINUED)
JUNE 30, 1996 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
- ----------- -------------
<C> <S> <C>
COLLATERALIZED MORTGAGE
OBLIGATIONS -- (CONTINUED)
Housing Securities Inc. Series
93-E, Class E15
$ 5,002,523 10.00% due 09/25/08......... $ 5,308,113
PNC Mortgage Securities Corp.
Series 96-2, Class B1
649,073 6.60% due 02/25/11.......... 608,506
PNC Mortgage Securities Corp.
Series 96-2, Class B2
216,358 6.60% due 02/25/11.......... 200,233
PNC Mortgage Securities Corp.
Series 96-2, Class B3
346,172 6.60% due 02/25/11.......... 314,638
Prudential Home Mortgage
Securities Co. Series 93-H,
Class 2B
4,976,543 6.76% due 09/28/08.......... 4,719,940
Prudential Home Mortgage
Securities Co. Series 96-3,
Class B1
1,233,139 6.75% due 03/25/11.......... 1,162,192
Prudential Home Mortgage
Securities Co. Series 96-3,
Class B2
616,076 6.75% due 03/25/11.......... 567,204
Residential Funding Mortgage
Sec I Series 95-S15, Class M3
1,332,227 7.00% due 10/25/10.......... 1,237,719
Residential Funding Mortgage
Sec I Series 95-S18, Class B1
343,253 7.00% due 11/25/10.......... 286,616
Residential Funding Mortgage
Sec I Series 95-S18, Class M3
756,427 7.00% due 11/25/10.......... 702,014
Residential Funding Mortgage
Sec I Series 95-S19, Class M3
584,720 7.00% due 12/25/10.......... 542,404
Residential Funding Mortgage
Sec I Series 96-S5, Class M3
589,544 6.75% due 02/25/11.......... 539,108
Residential Funding Mortgage
Sec I Series 96-S8, Class M3
564,778 6.75% due 03/25/11.......... 515,183
Residential Funding Mortgage
Sec I Series 96-S11, Class M3
286,193 7.00% due 04/25/11.......... 265,705
Ryland Acceptance Corp. Series
82, Class 1
443,954 10.25% due 03/15/11......... 445,480
Structured Asset Securities
Corp. Series 96-CFL, Class D
5,000,000 7.03% due 02/25/28.......... 4,758,585
-------------
Total collateralized mortgage
obligations................. $ 55,773,046
-------------
-------------
SHORT-TERM SECURITIES -- 15.0%
COMMERCIAL PAPER -- 10.0%
$ 8,000,000 General Electric Capital Corp.
5.35% due 07/15/96.......... $ 7,983,356
5,000,000 Northern Indiana Public
Service Co.
5.35% due 07/15/96.......... 4,989,597
3,600,000 PHH Corp.
5.35% due 07/17/96.......... 3,591,440
5,000,000 Pacific Dunlop Holdings Inc.
5.35% due 07/17/96.......... 4,988,111
5,000,000 Sherwin Williams Co.
5.35% due 07/22/96.......... 4,984,396
5,400,000 Transamerica Finance Group
Inc.
5.39% due 07/10/96.......... 5,392,724
-------------
31,929,623
REPURCHASE AGREEMENT -- 5.0%
16,055,000 Interest in $107,879,000 joint
repurchase agreements dated
06/28/96 with Dillon Read &
Co., Inc. and JP Morgan
Securities at 5.3% due
07/01/96; maturity amount
$16,062,091; (Collateralized
by $15,000,000 U.S. Treasury
Bond at 8.75% due 08/15/20,
$49,685,000 U.S. Treasury
Note at 6.75% due 05/31/99
and $43,194,000 U.S.
Treasury note at 5.625% due
10/31/97)................... 16,055,000
-------------
Total short-term securities... $ 47,984,623
-------------
-------------
</TABLE>
<TABLE>
<S> <C> <C>
DIVERSIFICATION OF ASSETS:
Total U.S. treasury & federal agencies....... 78.0% $247,925,624
Total corporate bonds and notes.............. 1.0 2,924,100
Total asset-backed securities................ 1.0 3,809,262
Total collateralized mortgage obligations.... 17.0 55,773,046
Total short-term securities.................. 15.0 47,984,623
-------- ------------
Total investment in securities
**(Identified cost $361,170,708)........... 112.0 358,416,655
Excess of liabilities over cash and
receivables................................ (12.0) (38,863,651)
-------- ------------
Net assets (Applicable to $1.03589 per share
based on 308,480,422 shares outstanding)... 100.0% $319,553,004
-------- ------------
-------- ------------
SUMMARY OF SHAREHOLDERS' EQUITY:
Capital stock, par value $.10 per share; authorized
800,000,000 shares; outstanding 308,480,422 shares... $ 30,848,042
Capital surplus........................................ 305,976,462
Undistributed net realized gain on investments......... (14,517,448)
Unrealized appreciation of investments................. (2,754,052)
------------
Net assets, applicable to shares outstanding........... $319,553,004
------------
------------
</TABLE>
* Non-income producing during period.
** Aggregate cost for Federal income tax purposes.
(A) Principal Only -- 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.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
100
<PAGE>
HARTFORD INDEX FUND, INC.
STATEMENT OF NET ASSETS
JUNE 30, 1996 (UNAUDITED)
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
----------- -------------
<C> <S> <C>
COMMON STOCKS -- 96.3%
BUSINESS SERVICES -- 0.7%
*17,400 CUC International Inc......... $ 617,700
14,100 Donnelley (RR) & Sons Co...... 491,738
4,400 E G & G, Inc.................. 94,050
*5,300 Federal Express Corp.......... 434,600
11,200 Genuine Parts Co.............. 512,400
4,600 Grainger (WW) Inc............. 356,500
9,200 Moore Corp. Ltd............... 173,650
4,400 National Service Industries
Inc......................... 172,150
4,500 Ogden Corp.................... 81,563
7,300 Ryder Systems Inc............. 205,313
-------------
3,139,663
-------------
COMMUNICATION EQUIPMENT -- 2.0%
*15,100 3 Com Corp.................... 690,825
16,900 Bay Networks Inc.............. 435,175
*6,600 Cabletron Systems Inc......... 452,925
*52,200 Cisco Systems Inc............. 2,955,825
*10,500 DSC Communications............ 316,313
54,300 Motorola Inc.................. 3,414,113
23,300 Northern Telecom Ltd.......... 1,266,938
3,900 Perkin Elmer Corp............. 188,175
7,000 Scientific Atlanta Inc........ 108,500
-------------
9,828,788
-------------
COMPUTERS & OFFICE
EQUIPMENT -- 3.4%
10,900 Amdahl Corp................... 117,175
11,400 Apple Computer Inc............ 239,400
*24,500 Compaq Computer Corp.......... 1,206,625
*3,500 Data General Corp............. 45,500
*14,000 Digital Equipment Corp........ 630,000
20,900 EMC Corp. - Mass.............. 389,263
3,600 Harris Corp................... 219,600
46,900 Hewlett-Packard Co............ 4,672,413
50,000 International Business Machine
Corp........................ 4,950,000
13,900 Pitney Bowes Inc.............. 663,725
*15,000 Silicon Graphics Inc.......... 360,000
16,800 Sun Microsystems Inc.......... 989,100
*10,800 Tandem Computers.............. 133,650
*15,800 Unisys Corp................... 112,575
29,700 Xerox Corp.................... 1,588,950
-------------
16,317,975
-------------
CONSUMER DURABLES -- 2.7%
7,800 Black & Decker Corp........... 301,275
2,700 Briggs & Stratton Corp........ 111,038
8,800 Brunswick Corp................ 176,000
34,400 Chrysler Corp................. 2,132,800
7,600 Cooper Tire & Rubber Co....... 169,100
9,300 Dana Corp..................... 288,300
5,600 Echlin Inc.................... 212,100
4,300 Fleetwood Enterprises Inc..... 133,300
107,800 Ford Motor Co................. 3,490,025
69,500 General Motors Corp........... 3,640,063
14,000 Goodyear Tire & Rubber Co..... 675,500
10,000 Maytag Corp................... 208,750
800 Nacco Industries Inc. Class
A........................... 44,300
3,700 Snap-On-Tools Corp............ 175,288
8,100 Stanley Works................. 240,975
16,000 Tenneco Inc................... 818,000
6,800 Whirlpool Corp................ 337,450
-------------
13,154,263
-------------
CONSUMER NON-DURABLES -- 13.9%
2,600 Alberto Culver Co............. $ 120,575
16,300 American Brands, Inc.......... 739,613
6,800 American Greetings Corp. Class
A........................... 186,150
23,300 Anheuser Busch Cos., Inc...... 1,747,500
47,800 Archer-Daniels-Midland Co..... 914,175
12,600 Avon Products Inc............. 568,575
6,400 Brown-Forman Corp. Class B.... 256,000
22,800 Campbell Soup Co.............. 1,607,400
4,700 Clorox Co..................... 416,538
229,400 Coca-Cola Co.................. 11,211,925
13,300 Colgate-Palmolive Co.......... 1,127,175
22,600 Conagra Inc................... 1,025,475
3,500 Coors (Adolph) Co. Class B.... 62,563
13,300 CPC International Inc......... 957,600
8,700 Dial Corp. Arizona............ 249,038
31,500 Eastman Kodak Co.............. 2,449,125
5,900 Ecolab Inc.................... 194,700
6,900 Fruit of the Loom Inc. Class
A........................... 175,950
14,700 General Mills Co.............. 801,150
40,900 Gillette Co................... 2,551,138
34,000 H.J. Heinz Company............ 1,032,750
8,000 Hasbro Inc.................... 286,000
7,100 Hershey Foods Corp............ 520,963
10,200 International Flavors &
Fragrances Inc.............. 485,775
122,400 Johnson & Johnson............. 6,058,800
19,500 Kellogg Co.................... 1,428,375
6,800 Liz Claiborne Inc............. 235,450
14,700 Newell Co..................... 450,188
13,100 Nike, Inc. Class B............ 1,346,025
143,900 Pepsico Inc................... 5,090,463
76,300 Philip Morris Cos. Inc........ 7,935,200
7,600 Pioneer Hi-Bred International
Inc......................... 401,850
4,100 Polaroid Corp................. 187,063
63,100 Proctor and Gamble Co......... 5,718,438
12,300 Quaker Oats Co................ 419,738
9,700 Ralston Purina Group.......... 622,013
6,900 Reebok International Ltd...... 232,013
13,900 Rubbermaid, Inc............... 378,775
3,600 Russell Corp.................. 99,450
44,400 Sara Lee Corp................. 1,437,450
34,400 Seagram Ltd................... 1,156,700
1,900 Springs Industries Inc........ 95,950
4,500 Stride Rite Corp.............. 37,125
5,600 Tupperware Corp............... 236,600
14,800 Unilever NV (NY Shares)....... 2,147,850
18,600 UST Inc....................... 637,050
5,900 V F Corp...................... 351,788
9,600 Whitman Corp.................. 231,600
10,600 Wrigley Wm. Jr. Co............ 535,300
-------------
67,159,100
-------------
CONSUMER SERVICES -- 0.9%
4,300 Bally Entertainment Corp...... 118,250
14,700 Darden Restaurants Inc........ 158,025
7,500 De Luxe Corp.................. 266,250
6,700 Harcourt General Inc.......... 335,000
2,800 Harland (John H.) Co.......... 68,950
*9,400 Harrah's Entertainment Inc.... 265,550
4,400 Hilton Hotels Corp............ 495,000
9,500 H & R Block Inc............... 309,938
10,900 ITT Corp...................... 722,125
2,100 Luby's Cafeterias Inc......... 49,350
11,500 Marriott International Inc.... 618,125
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
101
<PAGE>
HARTFORD INDEX FUND, INC.
STATEMENT OF NET ASSETS -- (CONTINUED)
JUNE 30, 1996 (UNAUDITED)
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
----------- -------------
<C> <S> <C>
COMMON STOCKS -- (CONTINUED)
CONSUMER SERVICES --
(CONTINUED)
*4,800 Ryan's Family Steak House..... $ 44,400
10,800 Service Corp. International... 621,000
*3,800 Shoney's Inc.................. 41,325
11,000 Wendy's International Inc..... 204,875
-------------
4,318,163
-------------
ELECTRONICS -- 1.9%
12,500 Advanced Micro Devices Inc.... 170,313
19,900 AMP Inc....................... 798,488
*5,399 Andrew Corp................... 290,196
16,500 Applied Materials Inc......... 503,250
9,900 Cooper Industries Inc......... 410,850
75,500 Intel Corp.................... 5,544,531
11,900 LSI Logic Corp................ 309,400
19,000 Micron Technology Inc......... 491,625
17,400 Texas Instruments Inc......... 867,825
-------------
9,386,478
-------------
ENERGY AND SERVICES -- 8.7%
8,600 Amerada Hess Corp............. 461,175
45,700 Amoco Corp.................... 3,307,538
14,800 Atlantic Richfield Co......... 1,753,800
13,100 Baker Hughes Inc.............. 430,663
32,500 Barrick Gold Corp............. 881,563
11,600 Burlington Resources Inc...... 498,800
60,000 Chevron Corp.................. 3,540,000
9,600 Coastal Corp.................. 400,800
16,700 Dresser Industries Inc........ 492,650
114,100 Exxon Corp.................... 9,912,438
10,500 Halliburton Co................ 582,750
2,300 Helmerich & Payne Inc......... 84,238
4,700 Kerr McGee Corp............... 286,113
3,100 Louisiana Land & Exploration
Co.......................... 178,638
5,000 McDermott International
Inc......................... 104,375
36,300 Mobil Corp.................... 4,070,138
9,600 Oryx Energy Co................ 156,000
4,300 Pennzoil Co................... 198,875
24,100 Phillips Petroleum Co......... 1,009,188
*7,700 Rowan Cos., Inc............... 113,575
49,300 Royal Dutch Petroleum Co. (NY
Shares)..................... 7,579,875
8,400 Santa Fe Energy Resources
Inc......................... 99,750
22,300 Schlumberger Ltd.............. 1,878,775
6,800 Sun Company, Inc.............. 206,550
24,300 Texaco Inc.................... 2,038,163
22,700 Unocal Corp................... 766,125
26,400 USX-Marathon Group............ 531,300
*4,900 Western Atlas Inc............. 285,425
-------------
41,849,275
-------------
FINANCIAL SERVICES -- 13.1%
10,400 Aetna Life & Casualty Co...... 743,600
10,800 Ahmanson (H.F.) & Co.......... 291,600
4,000 Alexander & Alexander......... 79,000
43,000 Allstate Corp................. 1,961,875
44,600 American Express Co........... 1,990,275
18,600 American General Corp......... 676,575
44,200 American International Group
Inc......................... 4,359,225
9,900 AON Corp...................... 502,425
41,800 Banc One Corp................. 1,421,200
33,500 BankAmerica Corp.............. 2,537,625
10,300 Bank of Boston Corp........... 509,850
17,900 Bank of New York Inc.......... 917,375
FINANCIAL SERVICES --
(CONTINUED)
7,200 Bankers Trust NY Corp......... $ 531,900
8,700 Barnett Banks Inc............. 530,700
4,900 Beneficial Corp............... 275,013
14,400 Boatman Bancshares Inc........ 577,800
40,068 Chase Manhattan Corp.......... 2,829,803
17,000 Chubb Corp.................... 847,875
7,700 CIGNA Corp.................... 907,638
44,700 Citicorp...................... 3,693,338
10,900 Comerica Inc.................. 486,413
20,400 Corestates Financial Corp..... 785,400
15,700 Dean Witter Discover & Co..... 898,825
16,600 Federal Home Loan Mortgage
Corp........................ 1,419,300
100,200 Federal National Mortgage
Association................. 3,356,700
9,300 Fifth Third Bancorp........... 502,200
12,900 First Bank Systems Inc........ 748,200
29,000 First Chicago Corp............ 1,134,625
26,200 First Union Corp.............. 1,594,925
24,300 Fleet Financial Group Inc..... 1,057,050
8,300 General Re Corp............... 1,263,675
5,400 Golden West Financial Corp.... 302,400
12,500 Great Western Financial
Corp........................ 298,438
12,600 Green Tree Financial Corp..... 393,750
9,100 Household International
Corp........................ 691,600
6,400 Jefferson Pilot Corp.......... 330,400
17,200 J.P. Morgan................... 1,455,550
21,400 Keycorp....................... 829,250
9,600 Lincoln National Corp......... 444,000
11,200 Loews Corp.................... 883,400
6,700 Marsh and McLennan Cos.,
Inc......................... 646,550
20,400 MBNA Corp..................... 581,400
12,300 Mellon Bank Corp.............. 701,100
15,700 Merrill Lynch & Co. Inc....... 1,022,463
14,200 Morgan Stanley Group.......... 697,575
20,200 National City Corp............ 709,525
27,200 NationsBank Corp.............. 2,247,400
33,600 Norwest Corp.................. 1,171,800
31,300 PNC Bank Corp................. 931,175
8,600 Providian Corp................ 368,725
5,300 Republic New York Corp........ 329,925
11,600 Safeco Corp................... 410,350
9,700 Salomon Inc................... 426,800
8,000 St. Paul Cos., Inc............ 428,000
20,800 Suntrust Banks Inc............ 769,600
7,200 Torchmark Corp................ 315,000
6,300 Transamerica Corp............. 510,300
43,600 Travelers Group Inc........... 1,989,250
14,900 U.S. Bancorp.................. 538,263
7,000 Unum Corp..................... 435,750
3,100 US Life Corp.................. 101,913
11,100 USF&G Corp.................... 181,763
15,700 Wachovia Corp................. 686,875
9,000 Wells Fargo & Co.............. 2,149,875
-------------
63,412,165
-------------
HEALTHCARE -- 9.1%
72,200 Abbott Laboratories........... 3,140,700
5,900 Allergan Inc.................. 231,575
*7,500 Alza Corp..................... 205,313
58,100 American Home Products
Corp........................ 3,493,263
24,500 Amgen Inc..................... 1,323,000
5,300 Bard C.R. Inc................. 180,200
5,300 Bausch & Lomb Inc............. 225,250
25,000 Baxter International Inc...... 1,181,250
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
102
<PAGE>
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
----------- -------------
<C> <S> <C>
COMMON STOCKS -- (CONTINUED)
HEALTHCARE -- (CONTINUED)
5,900 Becton Dickinson & Co......... $ 473,475
9,100 Beverly Enterprises Inc....... 109,200
*10,500 Biomet Inc.................... 150,938
16,400 Boston Scientific Corp........ 738,000
46,300 Bristol-Myers Squibb Co....... 4,167,000
41,000 Columbia/HCA Healthcare
Corp........................ 2,188,375
3,900 Community Psychiatric
Centers..................... 37,050
21,100 Corning Inc................... 809,713
14,900 Humana Inc.................... 266,338
50,700 Lilly Eli & Co................ 3,295,500
6,800 Mallinckrodt Group Inc........ 264,350
5,800 Manor Care Inc................ 228,375
21,400 Medtronic Inc................. 1,198,400
113,100 Merck & Co., Inc.............. 7,309,088
4,000 Millipore Corp................ 167,500
58,400 Pfizer, Inc................... 4,168,300
46,700 Pharmacia & Upjohn Inc........ 2,072,313
33,900 Schering-Plough Corp.......... 2,127,225
2,100 Shared Medical Systems
Corp........................ 134,925
7,300 St. Jude Medical Inc.......... 244,550
19,900 Tenet Healthcare Corp......... 425,363
16,700 United Healthcare Corp........ 843,350
5,700 U.S. Surgical Corp............ 176,700
14,100 US Healthcare Inc............. 775,500
24,900 Warner-Lambert Co............. 1,369,500
-------------
43,721,575
-------------
INDUSTRIAL MATERIALS -- 7.0%
10,300 Air Products & Chemicals
Corp........................ 594,825
20,700 Alcan Aluminum Ltd............ 631,350
11,800 Alco Standard Corp............ 533,950
26,000 Allied Signal Inc............. 1,485,250
16,200 Aluminum Company of America... 929,475
9,700 Armco Inc..................... 48,500
3,400 Armstrong World Industries
Inc......................... 195,925
3,900 Asarco Inc.................... 107,738
5,900 Ashland Inc................... 233,788
4,900 Avery Dennison
International............... 268,888
2,800 Ball Corp..................... 80,500
4,800 Bemis Inc..................... 168,000
10,300 Bethlehem Steel Corp.......... 122,313
4,400 Boise Cascade Corp............ 161,150
2,600 Centex Corp................... 80,925
8,800 Champion International
Corp........................ 367,400
2,800 Crane Co...................... 114,800
11,500 Crown Cork & Seal Inc......... 517,500
8,600 Cyprus Amax Minerals Co....... 194,575
22,900 Dow Chemical Co............... 1,740,400
51,500 Dupont EI De Nemours & Co..... 4,074,938
7,400 Eastman Chemical Co........... 450,475
12,000 Echo Bay Mines Ltd............ 129,000
13,200 Englehard Corp................ 303,600
7,600 Fluor Corp.................... 496,850
3,400 FMC Corp...................... 221,850
3,700 Foster Wheeler Corp........... 166,038
18,000 Freeport-McMoran Copper & Gold
Inc. Class B................ 573,750
8,500 Georgia-Pacific Corp.......... 603,500
3,100 Giddings & Lewis Inc.......... 50,375
4,800 Goodrich (B.F.) Co............ 179,400
9,000 Grace (W.R.) & Co............. 637,875
5,900 Great Lakes Chemical Corp..... 367,275
10,100 Hercules Inc.................. 558,025
INDUSTRIAL MATERIALS --
(CONTINUED)
12,700 Homestake Mining Co........... $ 217,488
10,900 Inco Co. Ltd.................. 351,525
4,500 Inland Steel Industries
Inc......................... 88,313
27,900 International Paper Co........ 1,028,813
10,900 ITT Industries Inc............ 273,863
7,700 James River Corp.............. 203,088
3,100 Kaufman & Broad Home Corp..... 44,950
25,600 Kimberly-Clark Corp........... 1,977,600
9,900 Louisiana Pacific Corp........ 219,038
14,800 Masco Corp.................... 447,700
4,900 Mead Corp..................... 254,188
53,900 Monsanto Co................... 1,751,750
13,500 Morton International Inc...... 502,875
6,200 Nalco Chemical Co............. 195,300
8,800 Newmont Mining Corp........... 434,500
8,000 Nucor Corp.................... 405,000
29,200 Occidental Petroleum Corp..... 722,700
4,700 Owens Corning Fiberglass
Corp........................ 202,100
10,500 Pall Corp..................... 253,313
6,400 Phelps Dodge Corp............. 399,200
21,900 Placer Dome, Inc.............. 522,863
2,700 Potlatch Corp................. 105,638
17,700 PPG Industries, Inc........... 862,875
2,500 Pulte Corp.................... 66,875
13,000 Praxair....................... 549,250
5,800 Reynolds Metal Co............. 302,325
6,200 Rohm & Haas Co................ 389,050
7,700 Sherwin Williams Co........... 358,050
4,600 Sigma Aldrich Corp............ 246,100
9,200 Stone Container Corp.......... 126,500
5,200 Temple-Inland Inc............. 243,100
6,500 Union Camp Corp............... 316,875
12,200 Union Carbide Corp............ 484,950
7,600 USX - U.S. Steel Group........ 215,650
9,300 Westvaco Corp................. 277,838
18,600 Weyerhaeuser Co............... 790,500
5,100 Willamette Industries Inc..... 303,450
8,400 Worthington Industries Inc.... 175,350
-------------
33,700,738
-------------
MANUFACTURING -- 7.8%
31,600 Boeing Co..................... 2,753,150
6,600 Case Corp..................... 316,800
18,100 Caterpillar, Inc.............. 1,226,275
3,200 Cincinnati Milacron Inc....... 76,800
3,700 Cummins Engine Inc............ 149,388
24,100 Deere & Co.................... 964,000
10,400 Dover Corp.................... 479,700
7,100 Eaton Corp.................... 416,238
20,500 Emerson Electric Co........... 1,852,688
5,800 General Dynamics Corp......... 359,600
152,700 General Electric Co........... 13,208,550
4,400 General Signal Corp........... 166,650
4,300 Harnischfeger Industries
Inc......................... 142,975
11,700 Honeywell Inc................. 637,650
10,800 Illinois Tool Works Inc....... 730,350
10,000 Ingersoll-Rand Co............. 437,500
3,800 Johnson Controls, Inc......... 264,100
18,400 Lockheed Martin Corp.......... 1,545,600
25,399 Mattel, Inc................... 727,046
20,600 McDonnell Douglas Corp........ 999,100
38,500 Minnesota Mining &
Manufacturing Co............ 2,656,500
*12,400 National Semiconductor
Corp........................ 192,200
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
103
<PAGE>
HARTFORD INDEX FUND, INC.
STATEMENT OF NET ASSETS -- (CONTINUED)
JUNE 30, 1996 (UNAUDITED)
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
----------- -------------
<C> <S> <C>
COMMON STOCKS -- (CONTINUED)
MANUFACTURING -- (CONTINUED)
*6,700 Navistar International
Corp........................ $ 66,163
5,400 Northrop Grumman Corp......... 367,875
1,900 Outboard Marine Corp.......... 34,438
3,600 Paccar Inc.................... 176,400
6,800 Parker-Hannifin Corp.......... 288,150
4,000 Raychem Corp.................. 287,500
22,300 Raytheon Co................... 1,151,238
19,900 Rockwell International
Corp........................ 1,139,275
12,100 Sante Fe Pacific Gold......... 170,913
3,100 Tektronix Inc................. 138,725
5,100 Teledyne Inc.................. 184,238
7,700 Textron, Inc.................. 615,038
3,700 Thomas & Betts Corp........... 138,750
2,900 Timken Co..................... 112,375
2,700 Trinova Corp.................. 90,113
6,000 TRW, Inc...................... 539,250
14,000 Tyco International Ltd........ 570,500
11,200 United Technologies Corp...... 1,288,000
*3,700 Varity Corp................... 178,063
-------------
37,839,859
-------------
MEDIA & SERVICES -- 3.0%
22,100 Comcast Corp.................. 408,850
9,000 Dow Jones & Co................ 375,750
15,600 Dun & Bradstreet Corp......... 975,000
12,900 Gannett Co., Inc.............. 912,675
11,200 General Instrument Corp....... 323,400
7,200 Interpublic Group Co.......... 337,500
*3,400 King World Productions,
Inc......................... 123,675
4,400 Knight Ridder Inc............. 319,000
9,300 McGraw-Hill Cos., Inc......... 425,475
2,600 Meredith Corp................. 108,550
8,800 New York Times Co. Class A.... 287,100
*60,000 Tele-Communications, Inc.
Class A..................... 1,087,500
8,200 Tellabs Inc................... 548,375
36,000 Time Warner Inc............... 1,413,000
9,600 Times Mirror Co. Class A...... 417,600
5,800 Tribune Co.................... 421,225
33,900 Viacom Inc. Class B........... 1,317,863
62,200 Walt Disney Co................ 3,910,825
38,200 Westinghouse Electric Corp.... 716,250
-------------
14,429,613
-------------
POLLUTION CONTROL -- 0.5%
19,500 Browning Ferris Industries
Inc......................... 565,500
27,000 Laidlaw Inc. Class B.......... 273,375
5,400 Safety Kleen Corp............. 94,500
45,400 WMX Technologies Inc.......... 1,486,850
-------------
2,420,225
-------------
RETAIL -- 5.7%
23,200 Albertson's Inc............... 959,900
13,400 American Stores Co............ 552,750
1,700 Brown Group Inc............... 29,538
9,500 Charming Shoppes Inc.......... 67,094
9,000 Circuit City Store Inc........ 325,125
6,600 Dayton Hudson Corp............ 680,625
10,400 Dillard Department Stores
Class A..................... 379,600
19,000 Federated Department Stores... 648,375
3,500 Fleming Cos., Inc............. 50,313
5,500 Giant Food Inc................ 197,313
3,500 Great Atlantic & Pacific Tea
Co.......................... 115,063
RETAIL -- (CONTINUED)
43,900 Home Depot Inc................ $ 2,370,600
20,500 J.C. Penney Inc............... 1,076,250
3,600 Jostens Inc................... 71,100
44,200 K Mart Corp................... 546,975
*11,400 Kroger Co..................... 450,300
1,900 Longs Drug Store.............. 84,788
14,800 Lowe's Cos., Inc.............. 534,650
22,800 May Department Stores Co...... 997,500
64,400 McDonald's Corp............... 3,010,700
9,600 Melville Corp................. 388,800
3,400 Mercantile Stores, Inc........ 199,325
7,400 Nordstrom Inc................. 329,300
5,700 Pep Boys--Manny, Moe & Jack... 193,800
18,000 Price/Costco Inc.............. 389,250
7,600 Rite Aid Corp................. 226,100
35,800 Sears Roebuck & Co............ 1,740,775
6,300 Supervalu Inc................. 198,450
16,800 Sysco Corp.................... 575,400
5,800 Tandy Corp.................... 274,775
26,400 The Gap, Inc.................. 848,100
25,099 The Limited, Inc.............. 539,629
6,600 TJX Cos., Inc................. 222,750
*25,100 Toys R Us..................... 715,350
210,800 Wal-Mart Stores Inc........... 5,349,050
22,600 Walgreen Co................... 757,100
14,000 Winn Dixie Stores Inc......... 495,250
12,200 Woolworth Corp................ 274,500
-------------
26,866,260
-------------
SOFTWARE & SERVICES -- 3.0%
4,300 Autodesk Inc.................. 128,463
26,600 Automatic Data Processing..... 1,027,425
*6,000 Ceridian Corp................. 303,000
22,300 Computer Associates........... 1,588,875
5,100 Computer Sciences Corp........ 381,225
20,500 First Data Corp............... 1,632,313
*4,300 Intergraph Corp............... 52,138
*54,600 Microsoft Corp................ 6,558,825
*33,700 Novell Inc.................... 467,588
*60,050 Oracle Corp................... 2,368,222
-------------
14,508,072
-------------
TRANSPORTATION AND SERVICES -- 1.4%
*8,300 AMR Corp...................... 755,300
13,100 Burlington Northern Santa
Fe.......................... 1,059,463
3,600 Caliber System Inc............ 122,400
3,900 Consolidated Freightways,
Inc......................... 82,388
7,200 Consolidated Rail Corp........ 477,900
19,400 CSX Corp...................... 936,050
5,700 Delta Airlines, Inc........... 473,100
12,000 Norfolk Southern Corp......... 1,017,000
13,200 Southwest Airlines Co......... 384,450
18,900 Union Pacific Corp............ 1,320,638
5,700 USAir Group................... 102,600
2,600 Yellow Corp................... 34,450
-------------
6,765,738
-------------
UTILITY -- 11.6%
45,500 Airtouch Communications....... 1,285,375
17,400 Alltel Corp................... 535,050
17,100 American Electric Power....... 728,888
50,900 Ameritech Corp................ 3,022,188
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
104
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<TABLE>
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SHARES VALUE
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<C> <S> <C>
COMMON STOCKS -- (CONTINUED)
UTILITY -- (CONTINUED)
147,600 AT&T Corp..................... $ 9,151,200
13,500 Baltimore Gas and Electric.... 383,063
40,100 Bell Atlantic Corp............ 2,556,375
91,200 Bell South Corp............... 3,864,600
14,100 Carolina Power and Lighting
Co.......................... 535,800
19,000 Central & Southwest Corp...... 551,000
14,400 Cinergy Corp.................. 460,800
21,600 Consolidated Edison NY........ 631,800
8,600 Consolidated Natural Gas
Co.......................... 449,350
16,100 Dominion Resources, Inc....... 644,000
13,300 DTE Energy Co................. 410,638
18,800 Duke Power Co................. 963,500
1,900 Eastern Enterprises........... 63,175
41,000 Edison International.......... 722,625
23,100 Enron Corp.................... 944,213
6,300 Enserch Corp.................. 137,025
20,800 Entergy Corp.................. 590,200
16,900 FPL Group Inc................. 777,400
11,000 General Public Utilities
Corp........................ 387,750
89,600 GTE Corp...................... 4,009,600
24,100 Houston Industries Inc........ 593,463
63,600 MCI Communications............ 1,629,750
13,200 Niagara Mohawk Power Corp..... 102,300
4,600 Nicor, Inc.................... 130,525
12,400 Noram Energy Corp............. 134,850
6,300 Northern States Power Co...... 311,063
40,100 NYNEX Corp.................... 1,904,750
14,000 Ohio Edison Co................ 306,250
2,500 Oneok Inc..................... 62,500
7,700 Pacific Enterprises........... 228,113
38,500 Pacific Gas & Electric Co..... 895,125
39,300 Pacific Telesis Group......... 1,326,375
26,900 Pacificorp.................... 598,525
13,800 Panenergy Corp................ 453,675
20,400 Peco Energy Company........... 530,400
3,200 Peoples Energy Corp........... 107,200
15,900 PP&L Resources Inc............ 375,638
22,500 Public Service Enterprises.... 615,938
56,000 SBC Communications Inc........ 2,758,000
7,800 Sonat, Inc.................... 351,000
39,900 Sprint Corp................... 1,675,800
20,700 Texas Utilities Co............ 884,925
4,600 The Columbia Gas System,
Inc......................... 239,775
61,600 The Southern Co............... 1,516,900
9,300 The Williams Companies........ 460,350
43,200 U.S. West Communications
Group....................... 1,377,000
43,200 U.S. West Media Group......... 788,400
19,700 Unicom Corp................... 549,138
9,400 Union Electric Co............. 378,350
17,900 Worldcom Inc.................. 991,213
-------------
56,082,900
-------------
Total common stocks........... $ 464,901,415
-------------
-------------
NON-CONVERTIBLE PREFERRED STOCK
MANUFACTURING
37 Teledyne Inc.--Series E....... $ 569
-------------
PRINCIPAL
AMOUNT
-----------
SHORT-TERM SECURITIES -- 4.4%
U.S. TREASURY BILLS
$ 750,000 4.86% due 07/05/96.......... 749,595
350,000 5.00% due 07/05/96.......... 349,806
250,000 4.96% due 07/25/96.......... 249,173
500,000 4.96% due 07/25/96.......... 498,347
500,000 4.99% due 07/25/96.......... 498,337
250,000 4.96% due 07/05/96.......... 249,862
-------------
2,595,119
-------------
REPURCHASE AGREEMENT
18,827,000 Interest in $107,879,000 joint
repurchase agreements dated
06/28/96 with Dillon Read &
Co., Inc. and JP Morgan
Securities at 5.3% due
07/01/96; maturity amount
$18,835,315; (Collateralized
by $15,000,000 U.S. Treasury
Bond at 8.75% due 08/15/20,
$49,685,000 U.S. Treasury
Note at 6.75% due 05/31/99
and $43,194,000 U.S.
Treasury Note at 5.625% due
10/31/97)................... 18,827,000
-------------
Total short-term securities... $ 21,422,119
-------------
-------------
</TABLE>
<TABLE>
<S> <C> <C>
DIVERSIFICATION OF ASSETS:
Total common stocks.......................... 96.3 % $464,901,415
Total short-term securities.................. 4.4 21,422,119
------ ------------
Total investment in securities
**(Identified cost $385,507,793)........... 100.7 486,323,534
Excess of liabilities over cash and
receivables................................ (0.7) (3,484,711)
------ ------------
Net assets (Applicable to $2.16167 per share
based on 223,363,516 shares outstanding)... 100.0% $482,838,823
------ ------------
------ ------------
SUMMARY OF SHAREHOLDERS' EQUITY:
Capital stock, par value $.10 per share; authorized
750,000,000 shares; outstanding 223,363,516
shares............................................. $ 22,336,352
Capital surplus...................................... 356,074,370
Undistributed net realized gain on investments....... 3,574,795
Unrealized appreciation of investments............... 100,853,306
------------
Net assets, applicable to shares outstanding......... $482,838,823
------------
------------
</TABLE>
* Non-income producing during period.
** Aggregate cost for Federal income tax purposes.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
105
<PAGE>
HARTFORD INTERNATIONAL OPPORTUNITIES FUND, INC.
STATEMENT OF NET ASSETS
JUNE 30, 1996 (UNAUDITED)
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
----------- --------------
<C> <S> <C>
COMMON STOCKS -- 93.9%
ARGENTINA -- 1.3%
111,000 Baesa ADR..................... $ 1,470,750
165,000 Banco Frances ADR............. 4,743,750
175,000 Telefonica de Argentina ADR... 5,184,375
--------------
11,398,875
--------------
AUSTRALIA -- 5.3%
1,384,035 Amcor Ltd..................... 9,424,469
2,315,000 Australia & New Zealand
Banking
Group....................... 10,970,873
1,487,322 Boral Ltd..................... 3,863,782
686,413 Broken Hill Proprietary Co.
Ltd......................... 9,494,035
6,760,781 Goodman Fielder Ltd........... 6,865,628
780,000 Pioneer International Ltd..... 2,271,904
243,700 Qantas Airways Ltd. ADR
144A........................ 4,123,794
--------------
47,014,485
--------------
BRAZIL -- 1.0%
330,000 Aracruz Celulose ADR.......... 3,135,000
241,000 Electrobras On ADR............ 3,336,356
15,760,000 Petrol Brasileiro-Petrobras... 1,971,766
208,821,700 White Martins SA.............. 291,215
--------------
8,734,336
--------------
CANADA -- 2.0%
620,000 Canadian Pacific Ltd.......... 13,640,000
*108,500 Canwest Global Communications
(Non-Vtg)................... 2,956,625
155,200 Nova Corp..................... 1,404,911
--------------
18,001,536
--------------
CHILE -- 0.7%
19,500 Compania de Telefon Chile
ADR......................... 1,913,438
139,000 Enersis SA ADR................ 4,309,000
--------------
6,222,438
--------------
DENMARK -- 2.2%
281,000 Tele Danmark ADR Class B...... 7,130,375
257,000 UniDanmark A Registered....... 11,907,471
--------------
19,037,846
--------------
FINLAND -- 1.9%
*1,810,000 Merita Bank Ltd. A............ 3,783,428
685,000 Metsa-Serla Oy B.............. 4,871,242
162,000 Nokia Corp. ADR A............. 5,994,000
110,100 Valmet Corp................... 1,862,482
--------------
16,511,152
--------------
FRANCE -- 8.2%
33,000 Accor......................... 4,611,354
*99,600 Assurances Generales 144A..... 2,694,661
183,000 Assurances Generales de
France...................... 4,951,033
224,000 Banque Nationale de Paris..... 7,855,759
65,000 Compagnie Financiere de
Paribas..................... 3,835,032
*13,700 Dassault Systems ADR.......... 424,700
28,335 Groupe Danone................. 4,283,933
*473 Groupe Danone New............. 71,512
64,000 Havas......................... 5,229,306
13,000 Peugeot SA.................... 1,738,379
451,900 Rhone-Poulenc SA.............. 11,866,486
55,365 Saint Gobain.................. 7,403,491
56,945 Societe Generale.............. 6,255,385
*66,000 Societe Nationale Elf
Acquitaine.................. 4,849,607
FRANCE -- (CONTINUED)
89,296 Total SA...................... $ 6,616,829
--------------
72,687,467
--------------
GERMANY -- 4.7%
15,800 Bayer AG...................... 555,031
16,000 Daimler-Benz AG............... 8,575,177
22,100 Degussa AG.................... 7,487,962
75,000 Deutsche Bank AG.............. 3,547,297
66,400 Hornbach Holdings Pref
(Non-Vtg)................... 5,706,114
16,800 Karstadt AG................... 6,678,562
10,449 Mannesmann AG................. 3,591,758
*300,000 Metallgesellschaft AG......... 5,146,287
--------------
41,288,189
--------------
HONG KONG -- 3.5%
1,340,000 Citic Pacific Ltd............. 5,418,513
1,440,000 Hutchison Whampoa............. 9,059,880
748,000 Sun Hung Kai Properties....... 7,561,656
1,055,000 Swire Pacific Ltd. A.......... 9,029,617
*136,000 Tingyi Holding Corp........... 37,336
--------------
31,107,002
--------------
INDIA -- 0.3%
130,000 Arvind Mills Ltd. GDS......... 516,620
225,000 Indo Gulf GDR................. 317,723
154,000 Reliance Industries Ltd.
GDS......................... 1,853,467
--------------
2,687,810
--------------
INDONESIA -- 0.4%
549,000 Jaya Real Property-Foreign
Reg. D...................... 1,769,826
480,000 Jaya Real Property-Foreign.... 1,547,389
--------------
3,317,215
--------------
IRELAND -- 0.5%
875,000 Allied Irish Banks............ 4,582,090
--------------
ITALY -- 2.6%
550,000 Arnoldo Mondadori Editore
SPA......................... 4,157,706
2,370,600 Banca Commerciale Italiana
SPA......................... 4,758,194
1,170,000 Fiat SPA...................... 3,915,249
2,630,000 Finanziaria Autogrill SPA..... 3,011,346
1,120,000 Stet.......................... 3,780,776
1,530,000 Telecom Italia SPA............ 3,285,337
--------------
22,908,607
--------------
JAPAN -- 24.7%
148,000 Aichi Machine Industry Co..... 1,038,738
377,000 Asahi Organic Chemicals
Industry Co................. 2,958,682
253,400 Bank Of Tokyo-Mitsubishi
Bank........................ 5,866,703
177,000 Canon Sales Co., Inc.......... 4,920,704
479,000 Chichibu Oneda Cement Co...... 2,746,249
90,000 Chudenko Corp................. 3,264,971
561,000 Chugai Pharmaceutical Co...... 5,471,425
8,000 Chunkyo Coca-Cola Bottling
Co.......................... 91,879
54,000 Cosel Co...................... 1,279,737
391,000 Dai Nippon Printing Co........ 7,555,556
97,000 Danto Corp.................... 1,308,541
3,000 Hokkaido Coca-Cola Bottling
Co.......................... 41,838
63,000 Ito-Yokado Co................. 3,795,734
33,000 Japan Associated Finance
Co.......................... 3,850,150
315,000 JGC Corp...................... 4,134,537
1,195,000 Kawasaki Steel Corp........... 4,302,479
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
106
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<TABLE>
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MARKET
SHARES VALUE
----------- --------------
<C> <S> <C>
COMMON STOCKS -- (CONTINUED)
JAPAN -- (CONTINUED)
231,000 Kyudenko Corp................. $ 3,095,160
59,000 Mabuchi Motor Co.............. 3,753,714
117,000 Maruichi Steel Tube........... 2,100,902
529,000 Matsushita Electric Industrial
Co.......................... 9,836,478
899,000 Mitsubishi Heavy Industries... 7,809,197
172,000 Murata Manufacturing Co....... 6,506,244
500 Nichii Gakkan Co.............. 25,978
43,000 Nihon Jumbo................... 1,724,547
553,000 Nippon Express Co............. 5,393,401
310,000 Nippon Sanso Corp............. 1,525,841
10,000 Nippon Television Network
Corp........................ 3,099,079
172,000 Nippondenso Co................ 3,731,292
1,965,000 NKK Corp...................... 5,946,404
350,000 Nomura Securities Co.......... 6,827,090
554,000 Onward Kashiyama Co........... 9,038,921
525,000 Sakura Bank................... 5,838,119
224,000 Sankyo Co. Ltd................ 5,798,560
175,000 Sanwa Bank.................... 3,238,082
2,000 Sanyo Coca-Cola Bottling
Co.......................... 30,079
85,000 Secom Co...................... 5,609,334
61,000 Seven Eleven Japan............ 3,886,519
117,000 Shimamura Co.................. 5,140,279
123,000 Sony Corp..................... 8,083,402
460,000 Sumitomo Marine & Fire
Insurance................... 4,004,193
1,051,000 Sumitomo Realty &
Development................. 8,305,688
334,000 Sumitomo Trust & Banking
Co.......................... 4,566,585
528,000 Toda Corp..................... 5,149,576
606,000 Tokio Marine & Fire Insurance
Co.......................... 8,064,534
688,000 Toyo Ink Manufacturing Co..... 3,938,237
355,000 Toyota Motor Corp............. 8,866,102
51,000 World Co...................... 2,249,932
582,000 Yamato Kogyo Co............... 6,949,412
279,000 Yamazaki Banking Co........... 5,162,428
--------------
217,923,229
--------------
LUXEMBOURG -- 0.2%
*202,500 Quilmes Industrial ADR........ 2,075,625
--------------
MALAYSIA -- 1.7%
281,000 Aokam Perdana Berhad.......... 470,774
1,410,000 Land & General Holdings
Berhad...................... 3,475,551
720,000 Resorts World Berhad.......... 4,126,653
2,617,400 Sime Darby Berhad............. 7,238,501
--------------
15,311,479
--------------
MEXICO -- 0.4%
684,526 Alfa S.A. A................... 3,078,447
84,900 Transportacion Maritima ADR... 541,238
--------------
3,619,684
NETHERLANDS -- 4.2%
25,600 Akzo Nobel NV................. 3,062,953
274,000 Elesevier NV.................. 4,152,001
268,788 Ing Groep NV.................. 8,004,496
173,000 KLM........................... 5,526,445
76,000 Polygram NV................... 4,482,097
47,000 Unilever NV CVA............... 6,792,066
330,000 Verenigd Bezit VNU............ 5,116,429
--------------
37,136,487
--------------
NEW ZEALAND -- 0.7%
642,120 Air New Zealand Ltd. B........ $ 2,044,408
1,916,000 Carter Holt Harvey Ltd........ 4,368,559
--------------
6,412,967
--------------
NORWAY -- 2.3%
634,800 Christiana Bank Og............ 1,493,211
165,801 Hafslund ASA A................ 1,198,058
77,800 Kvaerner AS................... 3,283,331
220,801 Nycomed ASA A................. 3,173,989
118,000 Orkla AS A.................... 6,204,415
354,000 Saga Petroleum AS A........... 5,197,559
--------------
20,550,563
--------------
PHILIPPINES -- 0.2%
94,000 Philippine National Bank...... 1,570,256
--------------
SINGAPORE -- 3.3%
708,875 Development Bank of
Singapore................... 8,842,098
710,000 Far East-Levingston
Shipbuilding................ 3,924,876
1,000,000 Keppel Corp................... 8,362,863
790,000 Straits Steamship Land........ 2,642,665
515,000 United Overseas Bank.......... 4,927,356
--------------
28,699,858
--------------
SOUTH KOREA -- 0.7%
106,000 Korea Electric Power ADR...... 2,570,500
140,000 Pohang Iron & Steel Ltd.
ADR......................... 3,412,500
--------------
5,983,000
--------------
SPAIN -- 2.2%
20,700 Acerinox SA................... 2,154,065
57,000 ENDESA........................ 3,550,004
2,700 Empresa Nacional de Elec
ADR......................... 169,088
600,000 Iberdrola SA.................. 6,150,129
120,000 Repsol ADR.................... 4,170,000
175,000 Telefonica de Espana SA....... 3,219,269
--------------
19,412,554
--------------
SWEDEN -- 3.0%
95,500 Astra AB A Free............... 4,212,939
326,500 Avesta Sheffield AB........... 3,072,398
369,800 BT Industries AB.............. 5,679,123
75,000 Electrolux AB B Free.......... 3,765,922
142,000 Nordbanken AB................. 2,736,608
530,000 Skandinaviska Enskilda A...... 4,229,275
183,000 Stora Koppabergs A............ 2,410,868
--------------
26,107,132
--------------
SWITZERLAND -- 3.7%
7,970 Ciba-Geigy AG................. 9,691,612
2,810 Cie Financiere Richemont AG... 4,436,488
7,850 Nestle SA..................... 8,944,781
24,000 Schweizerischer Bankverein
(Regd)...................... 4,726,896
8,200 Sulzer AG..................... 4,903,915
--------------
32,703,692
--------------
THAILAND -- 0.7%
6,606,363 Bangkok Metropolitan Bank..... 4,881,549
100,000 Siam City Cement Public Co.
Ltd......................... 1,158,621
--------------
6,040,170
--------------
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
107
<PAGE>
HARTFORD INTERNATIONAL OPPORTUNITIES FUND, INC.
STATEMENT OF NET ASSETS -- (CONTINUED)
JUNE 30, 1996 (UNAUDITED)
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
----------- --------------
<C> <S> <C>
COMMON STOCKS -- (CONTINUED)
UNITED KINGDOM -- 11.4%
982,000 Associated British Foods...... $ 5,899,317
480,000 Boots Co. PLC................. 4,314,188
3,250,000 British Gas PLC............... 9,081,031
2,260,000 British Steel PLC............. 5,771,034
1,032,000 British Telecommunications
PLC......................... 5,542,875
1,650,000 BTR........................... 6,492,937
481,500 de la Rue..................... 4,447,260
1,870,000 National Grid Group PLC....... 4,949,317
1,447,000 Northern Foods PLC............ 4,200,388
1,226,233 Powergen PLC.................. 8,965,473
710,000 Rank Organization............. 5,488,668
377,000 Reckitt & Colman PLC.......... 3,956,101
500,000 Royal Bank of Scotland
Group....................... 3,826,451
710,000 Royal Insurance Holdings...... 4,386,525
1,460,000 Sainsbury (J) PLC............. 8,589,568
1,110,000 Sun Life & Provincial
Holdings.................... 3,807,979
610,000 United Biscuits PLC........... 2,026,389
2,284,869 Vodafone Group PLC............ 8,494,662
--------------
100,240,163
--------------
Total common stocks........... $ 829,285,907
--------------
--------------
PRINCIPAL
AMOUNT
- -----------
SHORT-TERM SECURITIES -- 6.8%
$59,850,000 Repurchase Agreement dated
06/28/96 Lehman Brothers,
Inc. at 5.47% due 07/01/96;
maturity value $59,877,282;
(Collateralized by
$36,245,000 and $23,605,000
U.S. Treasury Strips at 0%
due 08/15/15 and 05/15/08
respectively)............... $ 59,850,000
--------------
--------------
</TABLE>
<TABLE>
<S> <C> <C>
DIVERSIFICATION OF ASSETS:
Total common stocks.......................... 93.9 % $ 829,285,907
Total short term securities.................. 6.8 59,850,000
------ --------------
Total investment in securities
**(Identified cost $816,308,048)........... 100.7 889,135,907
Excess of liabilities over cash and
receivables................................ (0.7) (6,354,719)
------ --------------
Net Assets (Applicable to $1.35504 per share
based on 651,477,788 shares outstanding)... 100.0% $ 882,781,188
------ --------------
------ --------------
SUMMARY OF SHAREHOLDERS' EQUITY:
Capital stock, par value $.10 per share authorized
1,500,000,000 shares, outstanding 651,477,788
shares............................................. $ 65,147,779
Capital surplus...................................... 704,717,786
Undistributed net realized gain on investments....... 40,039,549
Unrealized appreciation of investments............... 72,876,075
--------------
Net assets, applicable to shares outstanding......... $ 882,781,188
--------------
--------------
</TABLE>
* Non-income producing during period.
** Aggregate cost for Federal income tax purposes.
FORWARD CURRENCY CONTRACTS -- NOTE 2 -- OUTSTANDING AT JUNE 30, 1996
<TABLE>
<CAPTION>
UNREALIZED
TOTAL AGGREGATE DELIVERY APPRECIATION/
DESCRIPTION VALUE FACE VALUE DATE (DEPRECIATION)
- ------------------------------ ---------- ---------- --------- ---------------
<S> <C> <C> <C> <C>
British Pounds (Buy) $1,149,226 $1,146,759 07/30/96 $ 2,467
Australian Dollars (Sell) 12,137,823 12,187,652 09/25/96 49,829
-------
$ 52,296
-------
-------
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
108
<PAGE>
HARTFORD DIVIDEND AND GROWTH FUND, INC.
STATEMENT OF NET ASSETS
JUNE 30, 1996 (UNAUDITED)
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
----------- --------------
<C> <S> <C>
COMMON STOCKS -- 94.7%
COMPUTER & OFFICE EQUIPMENT --
1.4%
140,100 Xerox Corp.................... $ 7,495,350
--------------
CONSUMER DURABLES -- 2.4%
243,200 Ford Motor Co................. 7,873,600
107,100 Goodyear Tire & Rubber Co..... 5,167,575
--------------
13,041,175
--------------
CONSUMER NON-DURABLES -- 13.9%
140,400 Avon Products Inc............. 6,335,550
106,700 Colgate Palmolive Co.......... 9,042,825
385,250 Flowers Industries Inc........ 6,212,156
268,300 Interstate Bakeries Corp...... 7,177,025
137,700 Kellogg Co.................... 10,086,525
94,400 Kimberly Clark Corp........... 7,292,400
180,000 Philip Morris Cos., Inc....... 18,720,000
121,300 RJR Nabisco Holdings Corp..... 3,760,300
258,700 UST Inc....................... 8,860,475
--------------
77,487,256
--------------
ENERGY AND SERVICES -- 11.3%
158,400 Ashland Inc................... 6,276,600
203,800 Chevron Corp.................. 12,024,200
106,700 Exxon Corp.................... 9,269,563
43,100 Lyondell Petrochemical Co..... 1,039,788
153,900 Pennzoil Co................... 7,117,875
185,000 Phillips Petroleum Co......... 7,746,875
231,400 Sun Company Inc............... 7,028,775
308,200 USX-Marathon Group............ 6,202,525
169,200 Unocal Corp................... 5,710,500
--------------
62,416,700
--------------
FINANCIAL SERVICES -- 14.8%
166,300 Allstate Corp................. 7,587,438
168,700 American Express Co........... 7,528,238
268,400 Bancorp Hawaii Inc............ 9,662,400
45,500 CIGNA Corp.................... 5,363,313
204,400 Citicorp...................... 16,888,550
40,600 First Bank System Inc......... 2,354,800
143,900 First Union Corp.............. 8,759,913
230,600 NationsBank Corp.............. 19,053,325
122,200 Wachovia Corp................. 5,346,250
--------------
82,544,225
--------------
HEALTH CARE -- 12.7%
214,000 American Home Products
Corp........................ 12,866,750
135,600 Bard CR Inc................... 4,610,400
127,900 Bristol-Myers Squibb Co....... 11,511,000
222,200 Merck & Co., Inc.............. 14,359,675
186,300 Pfizer Inc.................... 13,297,163
258,200 Warner-Lambert Co............. 14,201,000
--------------
70,845,988
--------------
INDUSTRIAL MATERIALS -- 6.0%
80,400 Crompton & Knowles Corp....... 1,346,700
41,000 Dexter Corp................... 1,219,750
62,800 Dow Chemical Co............... 4,772,800
75,900 E.I. du Pont de Nemours &
Co.......................... 6,005,588
30,100 Georgia Gulf Corp............. 880,425
17,800 Grace (W.R.) & Co............. 1,261,575
124,500 International Paper Co........ 4,590,938
28,700 Lubrizol Corp................. 871,763
INDUSTRIAL MATERIALS --
(CONTINUED)
157,600 Nalco Chemical Co............. $ 4,964,400
97,100 Weyerhaeuser Co............... 4,126,750
93,500 Witco Chemical Corp........... 3,214,063
--------------
33,254,750
--------------
MANUFACTURING -- 7.8%
35,200 Cooper Industries Inc......... 1,460,800
158,830 General Electric Co........... 13,738,795
269,200 Keystone International Inc.... 5,585,900
97,100 Minnesota Mining &
Manufacturing Co............ 6,699,900
135,400 Northrop Grumman Corp......... 9,224,125
182,300 Sundstrand Corp............... 6,676,738
--------------
43,386,258
--------------
MEDIA & SERVICES -- 2.0%
35,300 Dun & Bradstreet Corp......... 2,206,250
29,100 Eastman Kodak Co.............. 2,262,525
96,900 Gannett Co., Inc.............. 6,855,675
--------------
11,324,450
--------------
REAL ESTATE -- 0.9%
134,100 Patriot American Hospitality
Inc......................... 3,972,713
31,100 Starwood Lodging Trust........ 1,131,263
--------------
5,103,975
--------------
RETAIL -- 3.1%
157,000 May Department Stores Co...... 6,868,750
173,300 Mercantile Stores Co., Inc.... 10,159,713
--------------
17,028,463
--------------
TRANSPORTATION & SERVICES --
0.9%
68,600 Union Pacific................. 4,793,425
--------------
UTILITIES -- 17.3%
52,700 AT&T Corp..................... 3,267,400
196,400 BellSouth Corp................ 8,322,450
96,800 Carolina Power & Light Co..... 3,678,400
139,400 Central & South West Corp..... 4,042,600
112,100 Cincinnati Bell Inc........... 5,843,213
108,700 Cinergy Corp.................. 3,478,400
102,200 CMS Energy Corp............... 3,155,425
27,000 Comsat Corp................... 702,000
157,900 DPL Inc....................... 3,848,813
136,350 DQE Inc....................... 3,749,625
78,300 Equitable Resources Inc....... 2,211,975
50,900 FPL Group Inc................. 2,341,400
102,600 Frontier Corp................. 3,142,125
196,400 GTE Corp...................... 8,788,900
50,000 Illinova Corp................. 1,437,500
52,000 New England Electric System... 1,891,500
160,600 Pinnacle West Capital Corp.... 4,878,225
45,600 Public Service Co. of
Colorado.................... 1,675,800
34,400 Questar Corp.................. 1,169,600
152,800 SBC Communications Inc........ 7,525,400
75,100 Scana Corp.................... 2,112,188
87,800 Sprint Corp................... 3,687,600
275,800 Texas Utilities Co............ 11,790,450
225,100 Westcoast Energy Inc.......... 3,376,500
--------------
96,117,488
--------------
Total common stocks........... $524,839,501
--------------
--------------
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
109
<PAGE>
HARTFORD DIVIDEND AND GROWTH FUND, INC.
STATEMENT OF NET ASSETS
JUNE 30, 1996 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
----------- --------------
<S> <C> <C>
CONVERTIBLE PREFERRED STOCK -- 1.9%
MEDIA & SERVICES
$ 175,000 American Radio
Systems 144a.................. $ 10,412,500
------------
------------
SHORT-TERM SECURITIES -- 5.4%
29,750,000 Repurchase Agreement dated
06/28/96 with Swiss Bank
at 5.48% due 07/01/96;
maturity value $29,763,586;
(Collateralized by $29,750,000
U.S. Treasury Bond at 12.75%
due 11/15/10)................. 29,750,000
------------
Total short-term securities... $ 29,750,000
------------
------------
DIVERSIFICATION OF ASSETS:
Total common stocks.......................... 94.7 % $524,839,501
Total convertible preferred stocks........... 1.9 10,412,500
Total short-term securities.................. 5.4 29,750,000
------ ------------
Total investment in securities
**(Identified cost $508,472,875)........... 101.9 565,002,001
Excess of liabilities over cash and
receivables................................ (1.9) (10,904,954)
------ ------------
Net assets (Applicable to $1.41043 per share
based on 392,857,068 shares outstanding)... 100.0% $554,097,047
------ ------------
------ ------------
SUMMARY OF SHAREHOLDERS' EQUITY:
Capital stock, par value $.10 per share; authorized
750,000,000 shares; outstanding 392,857,068
shares............................................. $ 39,285,707
Capital surplus...................................... 448,738,670
Undistributed net realized gain on investments....... 9,543,543
Unrealized appreciation of investments............... 56,529,126
------------
Net assets, applicable to shares outstanding......... $554,097,047
------------
------------
</TABLE>
* Non-income producing during period.
** Aggregate cost for Federal income tax purposes.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
110
<PAGE>
HARTFORD INTERNATIONAL ADVISERS FUND, INC.
STATEMENT OF NET ASSETS
JUNE 30, 1996 (UNAUDITED)
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
- -------------- --------------
<C> <S> <C>
COMMON STOCKS -- 56.8%
ARGENTINA -- 0.8%
5,750 Baesa ADR............................... $ 76,188
7,500 Banco Frances ADR....................... 215,625
8,500 Telefonica De Argentina-ADR............. 251,813
--------------
543,625
--------------
AUSTRALIA -- 3.1%
63,750 Amcor Ltd............................... 434,100
109,607 Australia & New Zealand Banking Group... 519,431
81,926 Boral Ltd............................... 212,828
31,549 Broken Hill Proprietary Co. Ltd......... 436,367
254,101 Goodman Fielder Ltd..................... 258,041
40,000 Pioneer International Ltd............... 116,507
13,000 Qantas Airways Ltd. ADR 144A............ 219,981
--------------
2,197,255
--------------
BRAZIL -- 0.6%
16,000 Aracruz Celulose ADR.................... 152,000
13,750 Electrobras On ADR...................... 190,352
740,000 Petrol Brasileiro-Petrobras............. 92,582
8,120,900 White Martins S.A....................... 11,325
--------------
446,259
--------------
CANADA -- 1.2%
31,000 Canadian Pacific Ltd.................... 682,000
*5,300 Canwest Global Communications
(Non-Vtg)............................. 144,425
3,400 Nova Corp............................... 30,777
--------------
857,202
--------------
CHILE -- 0.4%
950 Compania de Telefon de Chile ADR........ 93,219
7,000 Enersis S.A. ADR........................ 217,000
--------------
310,219
--------------
DENMARK -- 1.3%
14,000 Tele Danmark ADR Class B................ 355,250
12,500 UniDanmark A Registered................. 579,157
--------------
934,407
--------------
FINLAND -- 1.1%
95,000 Merita Bank Ltd. A...................... 198,577
32,000 Metsa-Serla Oy B........................ 227,561
7,500 Nokia Corp. ADR A....................... 277,500
5,300 Valmet Corp............................. 89,656
--------------
793,294
--------------
FRANCE -- 4.8%
1,600 Accor................................... 223,580
*4,800 Assurances Generales 144A............... 129,863
6,000 Assurances Generales de France.......... 162,328
10,500 Banque Nationale de Paris............... 368,238
3,000 Compagnie Financiere de Paribas......... 177,001
*700 Dassault Systems ADR.................... 21,700
1,403 Groupe Danone........................... 212,117
*10 Groupe Danone New....................... 1,512
2,900 Havas................................... 236,952
700 Peugeot S.A............................. 93,605
21,900 Rhone-Poulenc S.A....................... 575,074
2,682 Saint Gobain............................ 358,641
*2,808 Societe Generale........................ 308,457
3,200 Societe Nationale Elf Aquitaine......... 235,132
FRANCE -- (CONTINUED)
4,293 Total S.A............................... $ 318,111
--------------
3,422,311
--------------
GERMANY -- 2.7%
800 Bayer AG................................ 28,103
795 Daimler-Benz AG......................... 426,079
1,080 Degussa AG.............................. 365,928
5,750 Deutsche Bank AG........................ 271,959
2,700 Hornbach Holdings Pref (Non-Vtg)........ 232,026
830 Karstadt AG............................. 329,953
450 Mannesmann AG........................... 154,684
*8,400 Metallgesellschaft AG................... 144,096
--------------
1,952,827
--------------
HONG KONG -- 2.2%
70,000 Citic Pacific Ltd....................... 283,057
70,000 Hutchison Whampoa....................... 440,411
39,000 Sun Hung Kai Properties................. 394,257
50,000 Swire Pacific Ltd. A.................... 427,944
*8,000 Tingyi Holding Corp..................... 2,196
--------------
1,547,865
--------------
INDIA -- 0.1%
10,000 Arvind Mills Ltd. GDS................... 39,740
10,000 Indo Gulf GDR........................... 14,121
2,000 Reliance Inds Ltd. GDS.................. 24,071
--------------
77,932
--------------
INDONESIA -- 0.2%
19,000 Jaya Real Property Frgn Reg D........... 61,251
30,000 Jaya Real Property Frgn................. 96,712
--------------
157,963
--------------
IRELAND -- 0.3%
43,900 Allied Irish Banks...................... 229,653
--------------
ITALY -- 1.6%
28,000 Arnoldo Mondadori Editor................ 211,665
160,300 Banca Comml Italiana.................... 321,749
60,000 Fiat SPA................................ 200,782
*100,000 Finanziaria Autogril.................... 116,500
38,500 Stet.................................... 129,964
62,000 Telecom Italia SPA...................... 133,131
--------------
1,111,791
--------------
JAPAN -- 15.2%
8,000 Aichi Machine Industry Co............... 56,148
16,000 Asahi Organic Chemicals Industry Co..... 125,567
12,400 Bank Of Tokyo-Mitsubishi Bank........... 287,175
9,000 Canon Sales Co., Inc.................... 250,227
21,000 Chichibu Oneda Cement Co................ 120,399
2,000 Chudenko Corp........................... 72,555
29,000 Chugai Pharmaceutical Co................ 282,837
2,400 Cosel Co................................ 56,877
19,000 Dai Nippon Printing Co.................. 367,150
5,000 Danto Corp.............................. 67,451
4,000 Ito-Yokado Co........................... 240,999
2,000 Japan Associated Finance Co............. 233,342
15,000 JGC Corp................................ 196,883
63,000 Kawasaki Steel Corp..................... 226,825
11,000 Kyudenko Corp........................... 147,389
3,000 Mabuchi Motor Co........................ 190,867
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
111
<PAGE>
HARTFORD INTERNATIONAL ADVISERS FUND, INC.
STATEMENT OF NET ASSETS -- (CONTINUED)
JUNE 30, 1996 (UNAUDITED)
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
- -------------- --------------
<C> <S> <C>
COMMON STOCKS -- (CONTINUED)
JAPAN -- (CONTINUED)
6,000 Maruichi Steel Tube..................... $ 107,739
25,000 Matsushita Electric Industrial Co....... 464,862
43,000 Mitsubishi Heavy Industries............. 373,521
9,000 Murata Manufacturing Co................. 340,443
3,000 Nihon Jumbo............................. 120,317
27,000 Nippon Express Co....................... 263,331
10,000 Nippon Sanso Corp....................... 49,221
1,000 Nippon Television Network Corp.......... 309,908
9,000 Nippondenso Co.......................... 195,242
99,000 NKK Corp................................ 299,590
18,000 Nomura Securities Co.................... 351,107
29,000 Onward Kashiyama Co..................... 473,157
25,000 Sakura Bank............................. 278,006
11,000 Sankyo Co. Ltd.......................... 284,751
14,000 Sanwa Bank.............................. 259,047
4,000 Secom Co................................ 263,969
3,000 Seven-Eleven Japan...................... 191,140
6,000 Shimamura Co............................ 263,604
6,200 Sony Corp............................... 407,456
27,000 Sumitomo Marine & Fire Insurance........ 235,029
52,000 Sumitomo Realty & Development........... 410,938
16,000 Sumitomo Trust & Banking Co............. 218,759
31,000 Toda Corp............................... 302,343
30,000 Tokio Marine & Fire Insurance Co........ 399,234
31,000 Toyo Ink Manufacturing Co............... 177,450
17,000 Toyota Motor Corp....................... 424,574
2,000 World Co................................ 88,232
22,000 Yamato Kogyo Co......................... 262,692
8,000 Yamazaki Baking Co...................... 148,026
--------------
10,886,375
--------------
LUXEMBOURG -- 0.1%
*8,900 Quilmes Indl ADR........................ 91,225
--------------
MALAYSIA -- 0.9%
50,000 Land & General Holdings Berhad.......... 123,248
36,000 Resorts World Berhad.................... 206,333
124,000 Sime Darby Berhad....................... 342,926
--------------
672,505
--------------
MEXICO -- 0.3%
38,029 Alfa S.A. A............................. 171,025
4,650 Transportacion Maritima ADR............. 29,644
--------------
200,669
--------------
NETHERLANDS -- 2.6%
2,300 Akzo Nobel NV........................... 275,187
7,500 Elesevier NV............................ 113,650
15,188 Ing Groep NV............................ 452,284
8,700 KLM..................................... 277,919
4,000 Polygram NV............................. 235,900
1,850 Unilever NV CVA......................... 267,347
17,000 Verenigd Bezit VNU...................... 263,574
--------------
1,885,861
--------------
NEW ZEALAND -- 0.5%
51,000 Air New Zealand Ltd. B.................. 162,376
78,000 Carter Holt Harvey Ltd.................. 177,843
--------------
340,219
--------------
NORWAY -- 1.4%
34,300 Christiana Bank OG...................... 80,682
8,344 Hafslund ASA A.......................... 60,293
NORWAY -- (CONTINUED)
5,600 Kvaerner AS............................. $ 236,332
11,344 Nycomed ASA A........................... 163,069
3,650 Orkla AS A.............................. 191,916
17,500 Saga Petroleum AS A..................... 256,941
--------------
989,234
--------------
PHILIPPINES -- 0.2%
10,000 Philippine National Bank................ 167,048
--------------
SINGAPORE -- 2.2%
35,000 Development Bank of Singapore........... 436,570
40,000 Far East-Levingston Shipbuilding........ 221,120
69,000 Keppel Corp............................. 577,038
40,000 Straits Steamship Land.................. 133,805
23,000 United Overseas Bank.................... 220,056
--------------
1,588,588
--------------
SOUTH KOREA -- 0.4%
5,000 Korea Electric Power ADR................ 121,250
7,000 Pohang Iron & Steel Ltd. ADR............ 170,625
--------------
291,875
--------------
SPAIN -- 1.4%
1,750 Acerinox SA............................. 182,107
2,000 ENDESA.................................. 124,562
3,250 Empresa Nacional de Elec ADR............ 203,531
10,000 Iberdrola SA............................ 102,502
7,850 Repsol ADR.............................. 272,788
8,000 Telefonica de Espana SA................. 147,167
--------------
1,032,656
--------------
SWEDEN -- 1.8%
4,200 Astra AB A Free......................... 185,281
12,700 Avesta Sheffield AB..................... 119,508
17,000 BT Industries AB........................ 261,074
3,000 Electrolux AB B Free.................... 150,637
7,000 Nordbanken AB........................... 134,903
30,000 Skandinaviska Enskilda A................ 239,393
16,000 Stora Koppabergs A...................... 210,786
--------------
1,301,582
--------------
SWITZERLAND -- 2.1%
290 Ciba-Geigy AG........................... 352,643
140 Cie Financiere Richemont AG............. 221,035
390 Nestle SA............................... 444,390
1,200 Schweizerischer Bankverein (Regd)....... 236,345
415 Sulzer AG............................... 248,186
--------------
1,502,599
--------------
THAILAND -- 0.4%
327,727 Bangkok Metropolitan Bank............... 242,163
6,000 Siam City Cement Public Co. Ltd......... 69,517
--------------
311,680
--------------
UNITED KINGDOM -- 6.7%
44,000 Associated British Foods................ 264,328
25,000 Boots Co. PLC........................... 224,697
160,000 British Gas PLC......................... 447,066
120,000 British Steel PLC....................... 306,427
46,000 British Telecommunications PLC.......... 247,066
80,000 BTR..................................... 314,809
23,300 de la Rue............................... 215,205
90,000 National Grid Group PLC................. 238,202
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
112
<PAGE>
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
- -------------- --------------
<C> <S> <C>
COMMON STOCKS -- (CONTINUED)
64,000 Northern Foods PLC...................... $ 185,780
58,146 Powergen PLC............................ 425,128
35,000 Rank Organization....................... 270,568
18,000 Reckitt & Colman PLC.................... 188,885
23,000 Royal Bank of Scotland Group............ 176,016
35,500 Royal Insurance Holdings................ 219,326
65,000 Sainsbury (J) PLC....................... 382,412
*60,000 Sun Life & Provincial Holdings.......... 205,837
20,000 United Biscuits PLC..................... 66,439
100,434 Vodafone Group PLC...................... 373,392
--------------
4,751,583
--------------
Total common stocks..................... $ 40,596,303
--------------
--------------
PRINCIPAL
AMOUNT
- --------------
FOREIGN GOVERNMENT BONDS -- 34.7%
AUSTRALIA -- 1.4%
Australia Commonwealth
$ 985,000 9.50% due 08/15/03.................... 805,012
265,000 9.75% due 03/15/02.................... 218,412
--------------
1,023,424
--------------
AUSTRIA -- 0.2%
Austria Republic
16,000,000 6.25% due 10/16/03.................... 177,194
--------------
BELGIUM -- 1.2%
Belgium Kingdom
5,000,000 7.00% due 05/15/06.................... 161,725
18,000,000 7.25% due 04/29/04.................... 600,517
3,050,000 9.00% due 06/27/01.................... 111,012
--------------
873,253
--------------
CANADA -- 2.7%
Canada Government
340,000 6.50% due 06/01/04.................... 234,242
375,000 7.00% due 12/01/06.................... 261,310
150,000 7.25% due 06/01/03.................... 109,243
100,000 8.00% due 06/01/23.................... 72,381
650,000 8.75% due 12/01/05.................... 512,644
225,000 9.00% due 12/01/04.................... 179,636
700,000 9.75% due 06/01/01.................... 570,231
--------------
1,939,686
--------------
DENMARK -- 0.7%
Denmark Kingdom
2,860,000 8.00% due 03/15/06.................... 506,660
--------------
FINLAND -- 1.8%
Finnish Republic
5,000,000 10.00% due 09/15/01................... 1,253,852
--------------
FRANCE -- 1.8%
France O.A.T.
3,090,000 8.50% due 11/25/02.................... 678,810
2,626,000 9.50% due 01/25/01.................... 589,722
--------------
1,268,533
--------------
GERMANY -- 6.0%
German Federal Unity
1,925,000 8.50% due 02/20/01.................... 1,411,044
GERMANY -- (CONTINUED)
German Republic
$ 375,000 6.50% due 07/15/03.................... $ 249,467
235,000 6.88% due 05/12/05.................... 157,797
1,825,000 7.50% due 11/11/04.................... 1,275,489
1,275,000 8.25% due 09/20/01.................... 930,238
575,000 6.25% due 01/04/24.................... 331,745
--------------
4,355,780
--------------
ITALY -- 4.7%
Italy BTPS
335,000,000 8.50% due 01/01/99.................... 219,775
275,000,000 10.50% due 07/15/00................... 190,197
675,000,000 12.00% due 06/01/01................... 493,504
1,360,000,000 8.50% due 08/01/99.................... 888,143
260,000,000 8.50% due 04/01/99.................... 170,538
2,100,000,000 9.00% due 10/01/03.................... 1,375,640
--------------
3,337,798
--------------
JAPAN -- 5.9%
Japan Government #31
20,000,000 3.50% due 03/21/16.................... 175,085
Japan Government #22
29,000,000 5.30% due 03/20/13.................... 317,544
Japan Government #133
50,000,000 7.30% due 09/20/00.................... 550,041
Japan Government #145
125,000,000 5.50% due 03/20/02.................... 1,312,551
Japan Government #169
136,500,000 3.70% due 03/22/04.................... 1,304,532
Japan Government #185
125,000,000 3.10% due 03/20/06.................... 1,124,024
Japan Development Bank
14,000,000 6.50% due 09/20/01.................... 152,971
--------------
4,936,749
--------------
NETHERLANDS -- 1.7%
Netherlands Government
705,000 7.00% due 06/15/05.................... 430,004
1,000,000 9.00% due 01/15/01.................... 668,441
175,000 9.00% due 05/15/00.................... 116,209
--------------
1,214,655
--------------
NEW ZEALAND -- 0.2%
New Zealand Government
250,000 8.00% due 04/15/04.................... 163,197
--------------
SPAIN -- 0.5%
Spanish Government
13,700,000 10.00% due 02/28/05................... 113,732
29,000,000 11.30% due 01/15/02................... 253,970
--------------
367,702
--------------
SWEDEN -- 0.7%
Sweden Kingdom
2,700,000 13.00% due 06/15/01................... 497,068
--------------
UNITED KINGDOM -- 4.0%
United Kingdom Treasury Gilt
1,360,000 8.00% due 06/10/03.................... 2,158,007
180,000 7.00% due 11/06/01.................... 274,789
260,000 9.00% due 03/03/00.................... 428,196
--------------
2,858,992
--------------
Total foreign government bonds.......... $24,774,542
--------------
--------------
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
113
<PAGE>
HARTFORD INTERNATIONAL ADVISERS FUND, INC.
STATEMENT OF NET ASSETS -- (CONTINUED)
JUNE 30, 1996 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
- ------------- ------------
<C> <S> <C>
SUPRANATIONAL -- 0.3%
European Investment Bank
$ 4,000,000 6.63% due 03/15/00.................... $ 42,430
International Bank for Recon &
Development
14,000,000 6.75% due 06/18/01.................... 153,450
--------------
195,880
--------------
U.S. TREASURIES & FEDERAL AGENCIES -- 0.7%
U.S. TREASURY NOTES
380,000 11.88% due 11/15/03................... 493,644
--------------
SHORT-TERM SECURITIES -- 5.7%
4,085,000 Repurchase Agreement dated 06/28/96 with
Paine Webber Jackson and Curtis at
5.45% due 07/01/96; maturity value
$4,086,855; (Collateralized by a
$4,085,000 U.S. Treasury Note at 7.25%
due 08/31/96)......................... 4,085,000
--------------
Total short-term securities............. $ 4,085,000
--------------
--------------
</TABLE>
<TABLE>
<S> <C> <C>
DIVERSIFICATION OF ASSETS:
Total common stocks.......................... 56.8 % $ 40,596,303
Total foreign government bonds............... 34.7 24,774,542
Total supranational.......................... 0.3 195,880
Total U.S. treasuries & federal agencies..... 0.7 493,644
Total short-term securities.................. 5.7 4,085,000
------ --------------
Total investment in securities
**(Identified cost $68,357,616)............ 98.2 70,145,368
Excess of liabilities over cash and
receivables................................ 1.8 1,274,334
------ --------------
Net Assets (Applicable to $1.15385 per share
based on 61,897,088 shares outstanding).... 100.0% $ 71,419,702
------ --------------
------ --------------
SUMMARY OF SHAREHOLDERS' EQUITY:
Capital stock, par value $.10 per share; authorized
750,000,000 shares; outstanding 61,897,088
shares............................................. $ 6,189,709
Capital surplus...................................... 61,964,296
Undistributed net realized gain on investments....... 1,170,470
Unrealized appreciation of investments............... 2,095,227
--------------
Net assets, applicable to shares outstanding......... $ 71,419,702
--------------
--------------
</TABLE>
* Non-income producing during period.
**Aggregate cost for Federal income tax purposes.
FORWARD CURRENCY CONTRACTS -- NOTE 2 -- OUTSTANDING AT JUNE 30, 1996
<TABLE>
<CAPTION>
UNREALIZED
AGGREGATE DELIVERY APPRECIATION/
DESCRIPTION TOTAL VALUE FACE VALUE DATE (DEPRECIATION)
- ------------------------------ ----------- ----------- --------- -------------
<S> <C> <C> <C> <C>
German Deutschemarks (Buy) $ 771,149 $ 770,472 07/11/96 678
Finnish Markkas (Buy) 650,773 634,008 09/30/96 16,765
British Pounds (Buy) 55,474 55,355 07/03/96 119
Australian Dollars (Sell) 1,017,282 1,022,467 07/31/96 5,185
Australian Dollars (Sell) 783,085 786,300 09/25/96 3,215
Belgian Francs (Sell) 878,258 887,097 07/24/96 8,839
Canadian Dollars (Sell) 1,925,193 1,928,445 07/31/96 3,253
German Deutschemarks (Sell) 4,170,498 4,205,298 07/24/96 34,800
German Deutschemarks (Sell) 213,451 214,521 07/24/96 1,071
German Deutschemarks (Sell) 641,954 633,940 09/03/96 (8,014)
Danish Krone (Sell) 503,130 501,274 07/31/96 (1,855)
Spanish Pesetas (Sell) 363,304 361,912 08/28/96 (1,392)
Finnish Markkas (Sell) 1,251,618 1,253,320 07/31/96 1,701
French Francs (Sell) 1,262,602 1,254,826 07/31/96 (7,775)
British Pounds (Sell) 776,084 770,951 07/11/96 (5,134)
British Pounds (Sell) 2,838,387 2,818,490 07/31/96 (19,897)
Italian Lira (Sell) 3,323,803 3,311,215 07/31/96 (12,587)
Japanese Yen (Sell) 1,726,294 1,836,854 07/10/96 110,560
Japanese Yen (Sell) 94,460 100,769 07/10/96 6,309
Japanese Yen (Sell) 307,566 327,261 07/10/96 19,695
Japanese Yen (Sell) 178,425 187,737 07/10/96 9,312
Japanese Yen (Sell) 477,549 500,416 07/10/96 22,867
Japanese Yen (Sell) 133,476 141,345 07/10/96 7,869
Japanese Yen (Sell) 323,994 338,031 07/10/96 14,037
Japanese Yen (Sell) 171,123 179,624 07/10/96 8,500
Japanese Yen (Sell) 533,905 568,209 07/10/96 34,304
Japanese Yen (Sell) 277,905 285,380 07/10/96 7,475
Japanese Yen (Sell) 399,288 408,638 07/10/96 9,350
Japanese Yen (Sell) 415,260 436,472 07/10/96 21,212
Japanese Yen (Sell) 13,690 14,019 07/10/96 329
Japanese Yen (Sell) 252,806 258,227 07/10/96 5,420
Dutch Guilders (Sell) 1,230,373 1,244,629 07/24/96 14,256
New Zealand Dollars (Sell) 162,502 160,650 07/31/96 (1,852)
Swedish Kronas (Sell) 495,176 495,542 07/31/96 365
-------------
308,981
-------------
-------------
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
114
<PAGE>
HARTFORD MUTUAL FUNDS
STATEMENT OF OPERATIONS,
STATEMENTS OF CHANGES IN NET ASSETS
AND NOTES TO FINANCIAL STATEMENTS
<PAGE>
HARTFORD MUTUAL FUNDS
STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 1996 (UNAUDITED)
<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.............. $ -- $ 20,814,290 $ -- $ 30,431,880
Interest............... 11,982,847 2,675,692 11,224,536 55,221,998
Less: Foreign tax
withheld.............. (34,375) (168,823) -- (228,196)
-------------- ------------- ------------ -------------
Total income......... 11,948,472 23,321,159 11,224,536 85,425,682
-------------- ------------- ------------ -------------
EXPENSES:
Investment advisory
fee................... 544,810 2,874,271 514,186 10,220,693
Administrative service
fee................... 299,775 1,860,535 359,870 4,030,339
Accounting services.... 15,720 58,036 16,040 155,698
Custodian fees......... 9,421 9,917 7,935 11,901
Board of directors..... 1,327 6,239 1,725 16,274
Other expenses......... 16,182 176,128 21,089 198,640
-------------- ------------- ------------ -------------
Total expenses....... 887,235 4,885,126 920,845 14,633,545
-------------- ------------- ------------ -------------
Net investment income
(loss)................ 11,061,237 18,436,033 10,303,692 70,792,137
-------------- ------------- ------------ -------------
NET REALIZED AND
UNREALIZED GAIN (LOSS)
ON INVESTMENTS:
Net realized gain
(loss) on
investments........... (230,576) 96,232,930 642 163,477,680
Changes in unrealized
appreciation or
depreciation of
investments........... (17,249,460) 123,819,451 -- 66,135,974
-------------- ------------- ------------ -------------
Net gain (loss) on
investments........... (17,480,036) 220,052,381 642 229,613,654
-------------- ------------- ------------ -------------
Net increase (decrease)
in net assets
resulting from
operations............ $ (6,418,799) $ 238,488,414 $10,304,334 $300,405,791
-------------- ------------- ------------ -------------
-------------- ------------- ------------ -------------
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
116
<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.............. $ -- $ 12,152,515 $ -- $ 4,138,312 $12,164,848 $6,027,858
Interest............... 269,912 6,470,841 11,591,854 974,758 1,564,987 688,023
Less: Foreign tax
withheld.............. -- (573,662) -- (32,382) (1,775,282) (5,661)
------------ ------------- ------------- ----------- ------------------ -----------
Total income......... 269,912 18,049,694 11,591,854 5,080,688 11,954,553 6,710,220
------------ ------------- ------------- ----------- ------------------ -----------
EXPENSES:
Investment advisory
fee................... 12,584 5,631,294 400,695 400,188 2,051,775 1,116,161
Administrative service
fee................... 8,809 2,140,586 280,487 350,165 687,592 351,883
Accounting services.... 480 57,811 29,755 7,866 46,526 2,748
Custodian fees......... 6,943 14,380 10,909 14,380 371,917 9,917
Board of directors..... 52 6,214 1,631 845 3,025 295
Other expenses......... 797 75,835 19,913 10,296 36,933 3,677
------------ ------------- ------------- ----------- ------------------ -----------
Total expenses....... 29,665 7,926,121 743,389 783,740 3,197,767 1,484,681
------------ ------------- ------------- ----------- ------------------ -----------
Net investment income
(loss)................ 240,247 10,123,574 10,848,465 4,296,948 8,756,786 5,225,539
------------ ------------- ------------- ----------- ------------------ -----------
NET REALIZED AND
UNREALIZED GAIN (LOSS)
ON INVESTMENTS:
Net realized gain
(loss) on
investments........... -- 121,744,545 (1,665,440) 3,566,557 39,980,778 9,543,543
Changes in unrealized
appreciation or
depreciation of
investments........... -- 127,182,845 (9,232,156) 28,911,266 9,084,994 26,267,687
------------ ------------- ------------- ----------- ------------------ -----------
Net gain (loss) on
investments........... -- 248,927,390 (10,897,596) 32,477,823 49,065,772 35,811,230
------------ ------------- ------------- ----------- ------------------ -----------
Net increase (decrease)
in net assets
resulting from
operations............ $240,247 $259,050,964 $ (49,131) $36,774,771 $57,822,558 $41,036,769
------------ ------------- ------------- ----------- ------------------ -----------
------------ ------------- ------------- ----------- ------------------ -----------
<CAPTION>
HARTFORD
INTERNATIONAL
ADVISERS
FUND, INC.
-------------
<S> <C>
INVESTMENT INCOME:
Dividends.............. $ 560,138
Interest............... 779,428
Less: Foreign tax
withheld.............. (92,976)
-------------
Total income......... 1,246,590
-------------
EXPENSES:
Investment advisory
fee................... 154,587
Administrative service
fee................... 47,189
Accounting services.... 8,150
Custodian fees......... 37,091
Board of directors..... 96
Other expenses......... 3,724
-------------
Total expenses....... 250,837
-------------
Net investment income
(loss)................ 995,753
-------------
NET REALIZED AND
UNREALIZED GAIN (LOSS)
ON INVESTMENTS:
Net realized gain
(loss) on
investments........... 1,174,454
Changes in unrealized
appreciation or
depreciation of
investments........... 591,327
-------------
Net gain (loss) on
investments........... 1,765,781
-------------
Net increase (decrease)
in net assets
resulting from
operations............ $2,761,534
-------------
-------------
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
117
<PAGE>
HARTFORD MUTUAL FUNDS
STATEMENT OF CHANGES IN NET ASSETS
FOR THE SIX MONTHS ENDED JUNE 30, 1996 (UNAUDITED)
<TABLE>
<CAPTION>
HARTFORD HARTFORD HVA HARTFORD
BOND STOCK MONEY MARKET ADVISERS
FUND, INC. FUND, INC. FUND, INC. FUND, INC.
---------------- --------------- --------------- ---------------
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment income
(loss)................ $ 11,061,237 $ 18,436,033 $ 10,303,692 $ 70,792,137
Net realized gain
(loss) from investment
transactions and
foreign currency...... (230,576) 96,232,930 642 163,477,680
Changes in unrealized
net appreciation
(depreciation) of
investments........... (17,249,460) 123,819,451 -- 66,135,974
---------------- --------------- --------------- ---------------
Net increase
(decrease) in net
assets resulting
from operations..... (6,418,799) 238,488,414 10,304,334 300,405,791
DISTRIBUTIONS TO
SHAREHOLDERS:
Net investment
income................ (11,061,237) (18,436,033) (10,303,692) (70,792,137)
Net realized gain
(loss) from investment
transactions.......... -- (80,821,093) (642) (97,284,119)
---------------- --------------- --------------- ---------------
Net increase
(decrease) from
distributions....... (11,061,237) (99,257,126) (10,304,334) (168,076,256)
CAPITAL SHARE
TRANSACTIONS:
Proceeds from sale of
shares................ 193,909,600 626,269,090 1,159,251,257 596,882,932
Reinvested dividends
and distributions..... 11,061,237 99,257,126 10,304,334 168,076,256
Cost of shares
redeemed.............. (171,313,837) (315,098,854) (1,068,273,143) (114,374,806)
---------------- --------------- --------------- ---------------
Net increase (decrease)
from capital share
transactions.......... 33,657,000 410,427,362 101,282,448 650,584,382
---------------- --------------- --------------- ---------------
Total increase
(decrease) in net
assets.............. 16,176,964 549,658,650 101,282,448 782,913,917
NET ASSETS:
Beginning of period.... 342,494,947 1,876,883,614 339,708,583 4,262,768,749
---------------- --------------- --------------- ---------------
End of period.......... $ 358,671,911 $ 2,426,542,263 $ 440,991,031 $5,045,682,666
---------------- --------------- --------------- ---------------
---------------- --------------- --------------- ---------------
CHANGE IN CAPITAL SHARES
OUTSTANDING:
Shares sold............ 193,771,706 173,906,232 1,159,251,257 302,339,155
Shares issued upon
reinvestment of
dividends and capital
gains................. 11,171,382 28,309,740 10,304,334 85,664,663
Shares redeemed........ (171,376,677) (87,671,679) (1,068,273,143) (57,870,967)
---------------- --------------- --------------- ---------------
Net increase (decrease)
in shares
outstanding........... 33,566,411 114,544,293 101,282,448 330,192,851
---------------- --------------- --------------- ---------------
---------------- --------------- --------------- ---------------
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
118
<PAGE>
<TABLE>
<CAPTION>
HARTFORD
U.S. HARTFORD HARTFORD HARTFORD
GOVERNMENT CAPITAL MORTGAGE HARTFORD INTERNATIONAL HARTFORD
MONEY MARKET APPRECIATION SECURITIES INDEX OPPORTUNITIES DIVIDEND 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
(loss)................ $ 240,247 $ 10,123,574 $ 10,848,465 $ 4,296,948 $ 8,756,786 $ 5,225,539
Net realized gain
(loss) from investment
transactions and
foreign currency...... -- 121,744,545 (1,665,440) 3,566,557 39,980,778 9,543,543
Changes in unrealized
net appreciation
(depreciation) of
investments........... -- 127,182,845 (9,232,156) 28,911,266 9,084,994 26,267,687
------------ --------------- ------------- ------------- ------------- -------------------
Net increase
(decrease) in net
assets resulting
from operations..... 240,247 259,050,964 (49,131) 36,774,771 57,822,558 41,036,769
DISTRIBUTIONS TO
SHAREHOLDERS:
Net investment
income................ (240,247) (10,123,574) (10,848,465) (4,296,948) (8,756,786) (5,225,539)
Net realized gain
(loss) from investment
transactions.......... -- (144,074,825) -- (6,503,097) (20,342,972 (6,559,586)
------------ --------------- ------------- ------------- ------------- -------------------
Net increase
(decrease) from
distributions....... (240,247) (154,198,399) (10,848,465) (10,800,045) (29,099,758) (11,785,125)
CAPITAL SHARE
TRANSACTIONS:
Proceeds from sale of
shares................ 4,743,938 910,979,144 32,608,332 395,801,809 163,336,548 255,893,931
Reinvested dividends
and distributions..... 240,247 154,198,399 10,848,465 10,800,045 29,099,759 11,785,124
Cost of shares
redeemed.............. (4,908,419) (519,985,949) (40,571,510) (267,990,649) (24,853,124) (7,904,119)
------------ --------------- ------------- ------------- ------------- -------------------
Net increase (decrease)
from capital share
transactions.......... 75,766 545,191,594 2,885,287 138,611,205 167,583,183 259,774,936
------------ --------------- ------------- ------------- ------------- -------------------
Total increase
(decrease) in net
assets.............. 75,766 650,044,159 (8,012,309) 164,585,931 196,305,983 289,026,580
NET ASSETS:
Beginning of period.... 10,070,267 2,157,891,703 327,565,313 318,252,892 686,475,205 265,070,467
------------ --------------- ------------- ------------- ------------- -------------------
End of period.......... $10,146,033 $ 2,807,935,862 $ 319,553,004 $ 482,838,823 $882,781,188 $554,097,047
------------ --------------- ------------- ------------- ------------- -------------------
------------ --------------- ------------- ------------- ------------- -------------------
CHANGE IN CAPITAL SHARES
OUTSTANDING:
Shares sold............ 4,743,938 258,518,311 31,104,628 188,195,266 121,783,238 188,587,882
Shares issued upon
reinvestment of
dividends and capital
gains................. 240,247 46,336,643 10,363,252 5,200,221 22,093,265 8,785,162
Shares redeemed........ (4,908,419) (147,664,907) (38,762,392) (126,967,697) (18,155,906) (5,781,147)
------------ --------------- ------------- ------------- ------------- -------------------
Net increase (decrease)
in shares
outstanding........... 75,766 157,190,047 2,705,488 66,427,790 125,720,597 191,591,897
------------ --------------- ------------- ------------- ------------- -------------------
------------ --------------- ------------- ------------- ------------- -------------------
<CAPTION>
HARTFORD
INTERNATIONAL
ADVISERS
FUND, INC.
-------------
<S> <C>
OPERATIONS:
Net investment income
(loss)................ $ 995,753
Net realized gain
(loss) from investment
transactions and
foreign currency...... 1,174,454
Changes in unrealized
net appreciation
(depreciation) of
investments........... 591,327
-------------
Net increase
(decrease) in net
assets resulting
from operations..... 2,761,534
DISTRIBUTIONS TO
SHAREHOLDERS:
Net investment
income................ (995,753)
Net realized gain
(loss) from investment
transactions.......... --
-------------
Net increase
(decrease) from
distributions....... (995,753)
CAPITAL SHARE
TRANSACTIONS:
Proceeds from sale of
shares................ 42,666,913
Reinvested dividends
and distributions..... 821,882
Cost of shares
redeemed.............. (5,099,039)
-------------
Net increase (decrease)
from capital share
transactions.......... 38,389,756
-------------
Total increase
(decrease) in net
assets.............. 40,155,537
NET ASSETS:
Beginning of period.... 31,264,165
-------------
End of period.......... $71,419,702
-------------
-------------
CHANGE IN CAPITAL SHARES
OUTSTANDING:
Shares sold............ 37,418,498
Shares issued upon
reinvestment of
dividends and capital
gains................. 714,479
Shares redeemed........ (4,426,538)
-------------
Net increase (decrease)
in shares
outstanding........... 33,706,439
-------------
-------------
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
119
<PAGE>
HARTFORD MUTUAL FUNDS
STATEMENT OF CHANGES IN NET ASSETS
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>
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.
120
<PAGE>
<TABLE>
<CAPTION>
HARTFORD U.S. HARTFORD HARTFORD HARTFORD
GOVERNMENT CAPITAL MORTGAGE HARTFORD INTERNATIONAL
MONEY MARKET APPRECIATION SECURITIES INDEX OPPORTUNITIES
FUND, INC. FUND, INC. FUND, INC. FUND, INC. FUND, INC.
----------------- --------------- -------------- ------------- -------------
<S> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment
income................ $ 522,636 $ 15,311,450 $ 20,533,930 $ 5,497,890 $ 9,584,461
Net realized gain
(loss) on security
transactions.......... -- 127,384,090 5,901,957 461,701 21,336,447
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
----------------- --------------- -------------- ------------- -------------
Net increase
(decrease) in net
assets resulting
from operations..... 522,636 397,240,273 46,889,106 67,391,435 79,637,375
DISTRIBUTIONS TO
SHAREHOLDERS FROM:
Net investment
income................ (522,636) (15,311,450) (20,533,930) (5,497,890) (9,584,461)
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
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
Cost of Fund shares
redeemed.............. (3,927,941) (666,584,981) (50,387,738) (380,028,762) (54,214,080)
----------------- --------------- -------------- ------------- -------------
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
----------------- --------------- -------------- ------------- -------------
Total increase
(decrease) in net
assets.............. 450,968 999,248,065 23,418,746 160,592,520 122,710,102
NET ASSETS:
Beginning of period.... 9,619,299 1,158,643,638 304,146,567 157,660,372 563,765,103
----------------- --------------- -------------- ------------- -------------
End of period.......... $10,070,267 $ 2,157,891,703 $ 327,565,313 $ 318,252,892 $686,475,205
----------------- --------------- -------------- ------------- -------------
----------------- --------------- -------------- ------------- -------------
CHANGE IN CAPITAL SHARES
OUTSTANDING:
Shares sold............ 3,856,273 393,716,534 25,766,526 251,812,101 79,597,149
Shares issued upon
reinvestment of
dividends and capital
gains................. 522,636 28,381,165 19,717,253 3,055,911 12,477,963
Shares redeemed........ (3,927,941) (208,868,838) (48,682,017) (201,506,805) (45,827,064)
----------------- --------------- -------------- ------------- -------------
Net increase (decrease)
in shares
outstanding........... 450,968 213,228,861 (3,198,238) 53,361,207 46,248,048
----------------- --------------- -------------- ------------- -------------
----------------- --------------- -------------- ------------- -------------
<CAPTION>
HARTFORD
HARTFORD INTERNATIONAL
DIVIDEND AND GROWTH ADVISERS
FUND, INC. FUND, INC.*
------------------- -------------
<S> <C> <C>
OPERATIONS:
Net investment
income................ $ 3,832,811 $ 473,778
Net realized gain
(loss) on security
transactions.......... 6,559,586 473,990
Net realized gain
(loss) on futures
contracts............. -- --
Net unrealized
appreciation
(depreciation) of
investments during the
period................ 31,161,907 1,503,899
------------------- -------------
Net increase
(decrease) in net
assets resulting
from operations..... 41,554,304 2,451,667
DISTRIBUTIONS TO
SHAREHOLDERS FROM:
Net investment
income................ (3,832,811) (473,778)
Net realized gain on
security
transactions.......... -- (477,974)
CAPITAL SHARE
TRANSACTIONS:
Proceeds from Fund
shares sold........... 174,323,932 30,838,557
Net asset value of Fund
shares issued upon
reinvestment of
dividends and capital
gains................. 3,757,111 478,342
Cost of Fund shares
redeemed.............. (5,797,586) (1,552,649)
------------------- -------------
Net increase (decrease)
in net assets
resulting from capital
share transactions.... 172,283,457 29,764,250
------------------- -------------
Total increase
(decrease) in net
assets.............. 210,004,950 31,264,165
NET ASSETS:
Beginning of period.... 55,065,517 --
------------------- -------------
End of period.......... $265,070,467 $31,264,165
------------------- -------------
------------------- -------------
CHANGE IN CAPITAL SHARES
OUTSTANDING:
Shares sold............ 147,459,686 29,196,317
Shares issued upon
reinvestment of
dividends and capital
gains................. 3,182,667 434,386
Shares redeemed........ (4,769,969) (1,440,053)
------------------- -------------
Net increase (decrease)
in shares
outstanding........... 145,872,384 28,190,650
------------------- -------------
------------------- -------------
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
121
<PAGE>
HARTFORD MUTUAL FUNDS
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 1996 (UNAUDITED)
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., 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 convertible 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 the HVA Money Market Fund, Inc.
and Hartford U.S. Government Money Market Fund, Inc. are valued at
amortized cost or original cost plus accrued interest receivable, both of
which approximate market value. In Hartford Advisers Fund, Inc., Hartford
122
<PAGE>
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 (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.
123
<PAGE>
HARTFORD MUTUAL FUNDS
NOTES TO FINANCIAL STATEMENTS -- (CONTINUED)
JUNE 30, 1996 (UNAUDITED)
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.
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
the 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.
The HVA Money Market Fund, Inc. and the 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) FOREIGN CURRENCY CONTRACTS--As of June 30, 1996, 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.
j) 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
124
<PAGE>
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 each 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 the 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>
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 the 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.
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 Funds' Board of Directors concerning economic forecasts, investment
strategy, portfolio activity and performance of the Funds.
b) ADMINISTRATIVE SERVICES AGREEMENT--Under the Administrative Services
Agreement between 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 June
30, 1996, were as follows:
125
<PAGE>
HARTFORD MUTUAL FUNDS
NOTES TO FINANCIAL STATEMENTS -- (CONTINUED)
JUNE 30, 1996 (UNAUDITED)
<TABLE>
<CAPTION>
AGGREGATE GROSS AGGREGATE GROSS NET UNREALIZED
UNREALIZED UNREALIZED APPRECIATION
APPRECIATION (DEPRECIATION) (DEPRECIATION)
--------------- --------------- --------------
<S> <C> <C> <C>
Hartford Bond Fund, Inc.................................................... $ 3,025,258 $ (4,854,656) $ (1,829,398)
Hartford Stock Fund, Inc................................................... 471,714,848 (8,379,551) 463,335,297
Hartford Advisers Fund, Inc................................................ 705,746,352 (48,172,055) 657,574,297
Hartford Capital Appreciation Fund, Inc.................................... 489,939,098 (98,285,996) 391,653,102
Hartford Mortgage Securities Fund, Inc..................................... 2,085,622 (4,839,674) (2,754,052)
Hartford Index Fund, Inc................................................... 104,019,873 (3,166,567) 100,853,306
Hartford International Opportunities Fund, Inc............................. 91,159,980 (18,283,905) 72,876,075
Hartford Dividend and Growth Fund, Inc..................................... 58,259,141 (1,730,015) 56,529,126
Hartford International Advisers Fund, Inc.................................. 3,524,580 (1,429,353) 2,095,227
</TABLE>
5. EQUITY OF AFFILIATES:
a) HARTFORD INTERNATIONAL ADVISERS FUND, INC.--HL has ownership of
6,542,797 shares of Hartford International Advisers Fund, Inc.
representing 10.6% of the total outstanding shares of the Fund as of June
30, 1996.
b) As of June 30, 1996, 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.......................................................................... 73,614 0.01%
Hartford Advisers Fund, Inc....................................................................... 15,409,285 0.61%
Hartford Capital Appreciation Fund, Inc........................................................... 13,126,542 1.69%
Hartford Mortgage Securities Fund, Inc............................................................ 16,972,385 5.50%
Hartford Index Fund, Inc.......................................................................... 14,702,512 6.58%
Hartford International Opportunities Fund, Inc.................................................... 6,874,473 1.06%
</TABLE>
6. INVESTMENT TRANSACTIONS:
Investment transactions (excluding short-term investments) for the six
months ended June 30, 1996, were as follows:
<TABLE>
<CAPTION>
PURCHASES AT SALES AT
COST PROCEEDS
---------------- ----------------
<S> <C> <C>
Hartford Bond Fund, Inc................................................................. $ 428,804,295 $ 385,350,661
Hartford Stock Fund, Inc................................................................ 882,179,969 516,469,687
Hartford Advisers Fund, Inc............................................................. 1,962,456,396 1,276,358,458
Hartford Capital Appreciation Fund, Inc................................................. 1,542,161,418 1,040,381,778
Hartford Mortgage Securities Fund, Inc.................................................. 270,899,569 274,853,824
Hartford Index Fund, Inc................................................................ 133,305,202 4,487,900
Hartford International Opportunities Fund, Inc.......................................... 398,906,989 268,125,830
Hartford Dividend and Growth Fund, Inc.................................................. 334,223,256 90,108,275
Hartford International Advisers Fund, Inc............................................... 53,890,500 17,684,450
</TABLE>
126
<PAGE>
HARTFORD MUTUAL FUNDS
FINANCIAL HIGHLIGHTS
<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 Six Months
Ended June 30, 1996... $ 1.028 $ 0.037 $ (0.050) (0.013)
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
HARTFORD STOCK FUND, INC.
For the Six Months
Ended June 30, 1996... 3.527 0.036 0.373 0.409
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
HVA MONEY MARKET FUND,
INC.
For the Six Months
Ended June 30, 1996... 1.000 0.029 -- 0.029
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
HARTFORD ADVISERS FUND,
INC.
For the Year Six Months
Ended June 30, 1996.... 1.958 0.035 0.099 0.134
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
HARTFORD U.S. GOVERNMENT
MONEY MARKET FUND, INC.
For the Six Months
Ended June 30, 1996... 1.000 0.029 -- 0.029
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
HARTFORD CAPITAL
APPRECIATION FUND, INC.
For the Six Months
Ended June 30, 1996... 3.490 0.016 0.361 0.377
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
HARTFORD MORTGAGE
SECURITIES FUND, INC.
For the Six Month Ended
June 30, 1996......... 1.071 0.038 (0.035) 0.003
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
HARTFORD INDEX FUND, INC.
For the Six Months
Ended June 30, 1996... 2.028 0.025 0.172 0.197
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
HARTFORD INTERNATIONAL
OPPORTUNITIES FUND,
INC.
For the Six Months
Ended June 30, 1996... 1.306 0.015 0.086 0.101
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
HARTFORD DIVIDEND AND
GROWTH FUND, INC.
For the Six Months
Ended June 30, 1996... 1.317 0.018 0.122 0.140
1995................... 0.994 0.033 0.323 0.356
From inception, March
8, 1994, through
December 31, 1994..... 1.000 0.024 (0.005) 0.019
HARTFORD INTERNATIONAL
ADVISERS FUND, INC.
For the Six Months
Ended June 30, 1996... 1.109 0.039 0.045 0.084
From inception, March
1, 1995, through
December 31, 1995..... 1.000 0.030 0.126 0.156
</TABLE>
(1) Annualized.
(2) Management fees were waived until assets (excluding assets contributed by
companies affiliated with HIMCO) reached $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) Not Annualized.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
128
<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(1)
---------- ------------- ------------ ----------- --------- ------------- -----------------
<S> <C> <C> <C> <C> <C> <C> <C>
HARTFORD BOND FUND, INC.
For the Six Months
Ended June 30, 1996... $ (0.037) $ -- (0.050) $ 0.978 (1.24)% $ 358,672 0.52 %
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
HARTFORD STOCK FUND, INC.
For the Six Months
Ended June 30, 1996... (0.036) (0.148) 0.225 3.752 12.01 2,426,542 0.46
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
HVA MONEY MARKET FUND,
INC.
For the Six Months
Ended June 30, 1996... (0.029) -- -- 1.000 2.98 440,991 0.44
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
HARTFORD ADVISERS FUND,
INC.
For the Year Six Months
Ended June 30, 1996.... (0.035) (0.044) (0.055) 2.013 6.99 5,045,683 0.62
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
HARTFORD U.S. GOVERNMENT
MONEY MARKET FUND, INC.
For the Six Months
Ended June 30, 1996... (0.029) -- -- 1.000 2.53 10,146 0.58
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
HARTFORD CAPITAL
APPRECIATION FUND, INC.
For the Six Months
Ended June 30, 1996... (0.016) (0.230) (0.131) 3.621 11.45 2,807,936 0.64
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
HARTFORD MORTGAGE
SECURITIES FUND, INC.
For the Six Month Ended
June 30, 1996......... (0.038) -- (0.035) 1.036 0.17 319,553 0.46
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
HARTFORD INDEX FUND, INC.
For the Six Months
Ended June 30, 1996... (0.025) (0.039) 1.340 2.161 9.91 482,839 0.38
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
HARTFORD INTERNATIONAL
OPPORTUNITIES FUND,
INC.
For the Six Months
Ended June 30, 1996... (0.015) (0.037) 0.049 1.355 7.94 882,781 0.80
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
HARTFORD DIVIDEND AND
GROWTH FUND, INC.
For the Six Months
Ended June 30, 1996... (0.018) (0.028) (0.094) 1.411 10.88 554,097 0.72
1995................... (0.033) -- 0.323 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
HARTFORD INTERNATIONAL
ADVISERS FUND, INC.
For the Six Months
Ended June 30, 1996... (0.045) -- (0.045) 1.154 7.68 71,420 0.92
From inception, March
1, 1995, through
December 31, 1995..... (0.030) (0.017) (0.047) 1.109 15.84 31,264 0.65 (2)
<CAPTION>
RATIO OF
NET
INVESTMENT
INCOME PORTFOLIO AVERAGE
TO AVERAGE TURNOVER COMMISSION
NET ASSETS(1) RATE RATE PAID
----------------- ------------ -------------
<S> <C> <C> <C>
HARTFORD BOND FUND, INC.
For the Six Months
Ended June 30, 1996... 6.38 % 115.8 %(3) $ --
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 --
HARTFORD STOCK FUND, INC.
For the Six Months
Ended June 30, 1996... 1.72 25.0 (3) 0.0396
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 --
HVA MONEY MARKET FUND,
INC.
For the Six Months
Ended June 30, 1996... 4.96 -- --
1995................... 5.57 -- --
1994................... 3.99 -- --
1993................... 2.91 -- --
1992................... 3.60 -- --
1991................... 5.88 -- --
HARTFORD ADVISERS FUND,
INC.
For the Year Six Months
Ended June 30, 1996.... 3.04 28.0 (3) 0.0390
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 --
HARTFORD U.S. GOVERNMENT
MONEY MARKET FUND, INC.
For the Six Months
Ended June 30, 1996... 4.72 -- --
1995................... 5.38 -- --
1994................... 3.63 -- --
1993................... 2.65 -- --
1992................... 3.19 -- --
1991................... 5.48 -- --
HARTFORD CAPITAL
APPRECIATION FUND, INC.
For the Six Months
Ended June 30, 1996... 0.82 46.0 (3) 0.0313
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 --
HARTFORD MORTGAGE
SECURITIES FUND, INC.
For the Six Month Ended
June 30, 1996......... 6.70 86.7 (3) --
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 --
HARTFORD INDEX FUND, INC.
For the Six Months
Ended June 30, 1996... 2.12 1.1 (3) 0.0137
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 --
HARTFORD INTERNATIONAL
OPPORTUNITIES FUND,
INC.
For the Six Months
Ended June 30, 1996... 2.20 36.2 (3) 0.0209
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 --
HARTFORD DIVIDEND AND
GROWTH FUND, INC.
For the Six Months
Ended June 30, 1996... 2.56 9.9 (3) 0.0491
1995................... 2.91 41.4 --
From inception, March
8, 1994, through
December 31, 1994..... 3.52 27.8 --
HARTFORD INTERNATIONAL
ADVISERS FUND, INC.
For the Six Months
Ended June 30, 1996... 3.64 15.1 (3) 0.0092
From inception, March
1, 1995, through
December 31, 1995..... 3.36 (2) 47.2 --
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
129
<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
<PAGE>
- --------------------------------------------------------------------------------
HARTFORD LIFE INSURANCE COMPANIES
BULK RATE
P.O. BOX 2999
U.S. POSTAGE
HARTFORD, CT 06104-2999
PAID
PERMIT NO. 1
HARTFORD, CT
HV-1892-20 Printed in U.S.A.
