<PAGE>
AS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION ON MAY 3, 1995
FILE NO. 2-76350
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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
------------------------
FORM N-1A
REGISTRATION STATEMENT UNDER
THE SECURITIES ACT OF 1933 /X/
PRE-EFFECTIVE AMENDMENT NO. / /
POST-EFFECTIVE AMENDMENT NO. 15 /X/
AND/OR
REGISTRATION STATEMENT UNDER
THE INVESTMENT COMPANY ACT OF 1940 /X/
AMENDMENT NO. 15 /X/
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HARTFORD MONEY MARKET FUND, INC.
(Exact Name of Registrant as Specified in Charter)
P.O. Box 2999, Hartford, Connecticut 06104-2999
(Address of Principal Executive Offices)
Registrant's Telephone Number including Area Code: 203/547-3403
Michael C. O'Halloran, Esquire
P.O. Box 2999, Hartford, Connecticut 06104-2999
(Name and Address of Agent for Service)
Approximate Date of Proposed Public Offering:
Upon this Registration Statement being declared effective.
IT IS PROPOSED THAT THIS FILING WILL BECOME EFFECTIVE (CHECK APPROPRIATE BOX)
/ / immediately upon filing pursuant to paragraph (b) of Rule 485
/X/ on May 2, 1995 pursuant to paragraph (b)(1)(v) of Rule 485
/ / 60 days after filing pursuant to paragraph (a)(1) of Rule 485
/ / on May 1, 1995 pursuant to paragraph (a)(1) of Rule 485
/ / 75 days after filing pursuant to paragraph (a)(2) of Rule 485
/ / on pursuant to paragraph (a)(2) of Rule 485
------------------------
PURSUANT TO REGULATION 270.24F-2 UNDER THE INVESTMENT COMPANY ACT OF 1940,
REGISTRANT HAS PREVIOUSLY ELECTED TO REGISTER AN INDEFINITE NUMBER OF SHARES OF
ITS COMMON STOCK.
THE RULE 24F-2 NOTICE FOR THE REGISTRANT'S MOST RECENT FISCAL YEAR WAS FILED
ON FEBRUARY 16, 1995.
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<PAGE>
HARTFORD MONEY MARKET FUND
CROSS REFERENCE SHEET
PURSUANT TO RULE 481(A)
<TABLE>
<CAPTION>
N-1A ITEM NO. PROSPECTUS LOCATION
- ----------------- ----------------------------------------------
<C> <S> <C>
PART A
Item 1. Cover Page.................................... Cover Page
Item 2. Synopsis...................................... Inapplicable
Item 3. Condensed Financial Information............... Fund Operating Expenses; Fee Table; Financial
Highlights
Item 4. General Description of Registrant............. Investment Objective of the Fund; Investment
Policies of the Fund.
Item 5. Management of the Fund........................ Management of the Fund; Administrative
Services for the Fund; Expenses of the Fund.
Item 5A. Management's Discussion of Fund Performance... Annual Report to Shareholders
Item 6. Capital Stock and Other Securities............ Organization and Capitalization of the Fund;
Dividends; Federal Income Taxes.
Item 7. Purchase of Securities Being Offered.......... Net Asset Value; Purchase of Fund Shares
Item 8. Redemption or Repurchase...................... Redemptions of Fund Shares; Mandatory
Redemption.
Item 9. Pending Legal Proceedings..................... Pending Legal Proceedings
PART B
STATEMENT OF ADDITIONAL INFORMATION LOCATION
----------------------------------------------
Item 10. Cover Page.................................... Cover Page
Item 11. Table of Contents............................. Table of Contents
Item 12. General Information and History............... Inapplicable
Item 13. Investment Objectives and Policies............ Investment Objectives of the Fund; Investment
Restrictions of the Fund
Item 14. Management of the Fund........................ Management of the Fund
Item 15. Control Persons and Principal Holders of
Securities................................... Control Persons and Principal Holders of
Securities
Item 16. Investment Advisory and Other Services........ Management of the Fund
Item 17. Brokerage Allocation and Other Practices...... Portfolio Brokerage
Item 18. Capital Stock and Other Securities............ Ownership and Capitalization of the Funds
(Prospectus)
Item 19. Purchase Redemption and Pricing of Securities
Being Offered................................ Purchase of Fund Shares (Prospectus)
Item 20. Tax Status.................................... Federal Income Taxes (Prospectus)
Item 21. Underwriters.................................. Sale and Redemption of Fund Shares
(Prospectus)
Item 22. Calculations of Performance Data.............. Performance Comparisons
Item 23. Financial Statements.......................... Financial Statements
PART C
</TABLE>
Information required to be set forth in Part C is set forth under the
appropriate item, so numbered, in Part C of the Registration Statement.
<PAGE>
PART A
<PAGE>
HARTFORD MONEY MARKET FUND, INC.
P.O. BOX 2999
HARTFORD, CONNECTICUT 06104-2999
TELEPHONE: (203)843-8221
Hartford Money Market Fund, Inc. (the "Fund") is a money market fund whose
investment objective is realizing as high a level of current income as is
consistent with liquidity and preservation of capital.
The Fund will pursue this objective through investments in various
instruments: obligations of the U.S. Government and its agencies and
instrumentalities; money market instruments, such as bank certificates of
deposit, finance company commercial paper, corporate commercial paper, bankers'
acceptances, repurchase agreements and bank fixed-term time deposits; and
corporate bonds, notes and other debt instruments.
This prospectus sets forth in a concise manner information concerning the
Fund that investors should know before investing. Additional information about
the Fund has been filed with the Securities and Exchange Commission and is
available without charge upon request. To obtain the Statement of Additional
Information send a written request to Hartford Money Market Fund, Inc., P.O. Box
2999, Hartford, CT 06104-2999. The Statement of Additional Information is
incorporated herein by reference.
THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SECURITIES AND
EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION NOR HAS THE SECURITIES
AND EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION PASSED UPON THE
ACCURACY OR ADEQUACY OF THIS PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY IS A
CRIMINAL OFFENSE.
AN INVESTMENT IN THE FUND IS NEITHER INSURED NOR GUARANTEED BY THE U.S.
GOVERNMENT.
THIS CAN BE NO ASSURANCE THAT THE FUND WILL BE ABLE TO MAINTAIN A STABLE NET
ASSET VALUE OF $1.00 PER SHARE.
Investors are advised to retain this Prospectus for future reference.
Prospectus Dated: May 3, 1995
Statement of Additional Information Dated: May 3, 1995
1
<PAGE>
TABLE OF CONTENTS
<TABLE>
<CAPTION>
PAGE
<S> <C>
THE FUND................................................................................................... 3
FUND OPERATING EXPENSES FEE TABLE.......................................................................... 3
FINANCIAL HIGHLIGHTS....................................................................................... 3
PERFORMANCE RELATED INFORMATION............................................................................ 4
INVESTMENT OBJECTIVE OF THE FUND........................................................................... 4
INVESTMENT POLICIES OF THE FUND............................................................................ 4
MANAGEMENT OF THE FUND..................................................................................... 6
INVESTMENT ADVISORY SERVICES............................................................................... 6
PORTFOLIO BROKERAGE........................................................................................ 6
ADMINISTRATIVE SERVICES FOR THE FUND....................................................................... 7
DISTRIBUTION PLAN.......................................................................................... 7
EXPENSES OF THE FUND....................................................................................... 7
CUSTODIAN AND TRANSFER AGENT............................................................................... 7
COMPUTATION OF NET ASSET VALUE............................................................................. 8
CURRENT YIELD.............................................................................................. 8
DIVIDENDS.................................................................................................. 8
FEDERAL INCOME TAXES....................................................................................... 9
PURCHASE OF FUND SHARES.................................................................................... 9
REDEMPTIONS OF FUND SHARES................................................................................. 11
MANDATORY REDEMPTIONS...................................................................................... 12
INVESTMENT PLANS........................................................................................... 13
DISTRIBUTOR................................................................................................ 14
ORGANIZATION AND CAPITALIZATION OF THE FUND................................................................ 14
PENDING LEGAL PROCEEDINGS.................................................................................. 14
APPENDIX................................................................................................... 15
</TABLE>
2
<PAGE>
THE FUND
Hartford Money Market Fund, Inc. (the "Fund"), P.O. Box 2999, Hartford,
Connecticut 06104-2999 was organized as a Maryland corporation on February 3,
1982. It is registered with the Securities and Exchange Commission as an
open-end, diversified, management investment company. Such registration does not
involve supervision of management or investment practices by the Commission.
FUND OPERATING EXPENSES FEE TABLE
The expenses of the fund are detailed in the following tables.
<TABLE>
<S> <C> <C> <C> <C>
Contractowner Transaction Expenses
Maximum Sales Load imposed on Purchases (as a percentage
of offering price)..................................... 0%
Maximum Sales Load imposed on Reinvested Dividends (as a
percentage of offering price).......................... 0%
Deferred Sales Load (as a percentage of the net asset
value at the time of purchase, and, where applicable as
a percentage of the net asset value at the time of
redemption............................................. 0%
Redemption Fees (as a percentage of amount redeemed, if
applicable)............................................ 0%
Exchange Fee 0%
Annual Fund Operating Expenses (as a percentage of average
net assets) $0
Management Fees......................................... 0.425%
Other Expenses.......................................... 1.185%
Total Fund Operating Expenses........................... 1.610%
<CAPTION>
Example 1 Year 3 Years 5 Years 10 Years
<S> <C> <C> <C> <C>
You would pay the following expenses on a $1,000
investment, assuming (1) 5% annual return and (2)
redemption at the end of each time period.............. $17 $51 $88 $192
You would pay the following expenses on the same
investment, assuming no redemption..................... $17 $51 $88 $192
NOTE: The examples shown in the last four columns are hypothetical and illustrative only. They are not
representations of past or future performance or expenses: actual performance and/or expenses may be more or
less than shown.
</TABLE>
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HARTFORD MONEY MARKET FUND, INC.
FINANCIAL HIGHLIGHTS*
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<TABLE>
<CAPTION>
YEAR ENDED DECEMBER 31,
-------------------------------------------
1994 1993 1992 1991 1990
------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period............................. $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
INCOME FROM INVESTMENT OPERATIONS
Net Investment Income.......................................... $ 0.027 $ 0.018 $ 0.024 $ 0.049 $ 0.069
Net gain or loss on securities (both realized and
unrealized)................................................... -- -- -- -- --
------- ------- ------- ------- -------
Total From Investment Operations........................... $ 0.027 $ 0.018 $ 0.024 $ 0.049 $ 0.069
LESS DISTRIBUTIONS
Dividends (from net investment income)......................... $(0.027) $(0.018) $(0.024) $(0.049) $(0.069)
Distributions (from capital gains)............................. -- -- -- -- --
Return of Capital.............................................. -- -- -- -- --
------- ------- ------- ------- -------
Total Distributions........................................ $(0.027) $(0.018) $(0.024) $(0.049) $(0.069)
Net Assets Value, End of Period.................................. $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
------- ------- ------- ------- -------
------- ------- ------- ------- -------
Total Return..................................................... 2.77% 1.88% 2.47% 4.99% 7.11%
------- ------- ------- ------- -------
------- ------- ------- ------- -------
RATIOS AND SUPPLEMENTAL DATA
Net Assets, End of Period (000's omitted)........................ 11,684 11,504 13,483 13,866 15,359
Ratio of expenses to average net assets.......................... 1.610% 1.540% 1.630% 1.550% 1.520%
Ratio of net investment income to average net assets............. 2.720% 1.821% 2.440% 4.920% 6.890%
<FN>
* Financial Highlights for the periods ended through December 31, 1992 have been
restated to conform with requirements issued by the SEC in April 1993.
</TABLE>
3
<PAGE>
PERFORMANCE RELATED INFORMATION
The Fund may advertise certain performance related information.
Performance information about the Fund is based on the Fund's past performance
only and is no indication of future performance.
The Fund may include its total return in advertisements or other sales
material.
When the Fund advertises its total return, it will usually be calculated
for one year, five years, and ten years or some other relevant periods if the
Fund has not been in existence for at least ten years. Total return is
measured by comparing the value of an investment in the Fund at the beginning
of the relevant period to the value of the investment at the end of the
period.
The Fund may advertise its yield in addition to its total return. The
yield will be computed by dividing the net investment income per share earned
during a recent one month period by the net asset value of a Fund share
(reduced by any dividend expected to be paid shortly out of Fund income) on
the last day of the period. Yield calculations will reflect any waiver of Rule
12b-1 fees, if any, by the investment adviser.
INVESTMENT OBJECTIVE OF THE FUND
The investment objective of the Fund is to achieve as high a level of
current income as is consistent with liquidity and preservation of capital.
The investment objective of the Fund may not be changed without the approval
of a majority of the outstanding voting securities of the Fund. There can be
no assurance that the investment objective of the Fund will be achieved.
INVESTMENT POLICIES OF THE FUND
The Fund will pursue its investment objective by investing in various
instruments: obligations of the U.S. Government and its agencies and
instrumentalities; money market instruments, such as bank certificates of
deposit, finance company commercial paper, corporate commercial paper,
bankers' acceptances, repurchase agreements and bank fixed-term time deposits;
and corporate bonds, notes and other debt instruments.
Securities issued or guaranteed by the U.S. Government or its agencies or
instrumentalities include a variety of Treasury securities, which differ only
in their interest rates, maturities and times of issuances. Some obligations
issued or guaranteed by the U.S. Government agencies and instrumentalities are
supported by the full faith and credit of the U.S. Treasury; others, by the
right of the issuer to borrow from the Treasury; others, such as those issued
by the Government National Mortgage Association, by discretionary authority of
the Government National Mortgage Association, and by discretionary authority
of the U.S. Government to purchase certain obligations of the agency or
instrumentality; and others, such as those issued by the Student Loan
Marketing Association, only by the credit of the agency or instrumentality. No
assurance can be given that the U.S. Government will provide financial support
to such U.S. Government sponsored agencies or instrumentalities in the future,
since it is not obligated to do so by law. The Fund will invest in such
securities that the credit risk with respect to the issuer is believed to be
minimal. The Fund will not invest in securities issued by the World Bank,
Inter-American Development Bank or Asian Development Bank.
The assets of the Fund will consist entirely of cash and investments
having a stated maturity date thirteen months or less from date of purchase.
Some investments may have a stated term or maturity date as short as one day.
The average dollar-weighted maturity of the portfolio will vary according to
the investment adviser's appraisal of money market conditions, but will never
exceed 90 days.
The Fund may purchase a bank certificate of deposit which is a short term
obligation of a commercial bank. Such purchase may be made only if such bank
has assets (as most recently reported) in excess of $1 billion. U.S.
dollar-denominated certificates of deposit issued by U.S. branches of foreign
banks are eligible for purchase if the branches are subject to state banking
laws, Federal Reserve reporting
4
<PAGE>
requirements and have a minimum U.S. deposit size of $1 billion. U.S.
dollar-denominated certificates of deposit issued by foreign branches of U.S.
banks may also be purchased if the deposits of the bank exceed $1 billion.
U.S. dollar-denominated certificates of deposit issued by foreign branches of
U.S. banks are not governed by U.S. banking and securities laws and may
involve certain additional risks, including future political and economic
developments, the possible imposition of United Kingdom withholding taxes on
interest income payable on the securities held in the portfolio, possible
seizure or nationalization of foreign deposits, the possible establishment of
exchange controls or the adoption of other foreign governmental restrictions
which might adversely affect the payment of principal and interest on
securities in the portfolio. The Fund may purchase bankers' acceptances which
are time drafts drawn on a commercial bank by a borrower, usually in
connection with international transactions. Such purchases may be made only
when they are eligible for discounting at the Federal Reserve System. The
risks of investing in foreign commercial paper are similar to the risks of
investing in certificates of deposit issued by foreign branches of U.S. banks.
Further, the Fund may purchase commercial paper and corporate bonds, notes
and other debt instruments only if such are rated A-1 or A-2 by Standard and
Poor's Corporation or P-1 or P-2 by Moody's Investors Service, Inc. (For a
description of Moody's and Standard and Poor's rating criteria for corporate
obligations and commercial paper, see Appendix on page 15.)
The Fund may enter into repurchase agreements with commercial banks having
assets in excess of $1 billion or with recognized government securities
dealers with net capital in excess of $50 million. The collateral securities
received with respect to repurchase agreements entered into with dealers will
be marked to market daily. In a repurchase agreement transaction, a buyer
purchases securities from a securities dealer or commercial bank and agrees to
resell such securities to the seller at a later date at a specified price.
Upon resale, the buyer receives the proceeds, plus an amount which represents
interest on the proceeds. The transaction is, in effect, a method to invest
idle cash for negotiated periods at prevailing market rates. If the seller
defaults, the Fund might incur a loss if the value of the collateral securing
the repurchase agreement declines and may incur disposition costs in
connection with liquidating the collateral.
As an alternative to repurchase agreements, the Fund may utilize
fixed-term time deposits (short-term, non-negotiable obligations of commercial
banks) of otherwise qualifying banks for periods of time not to exceed seven
days from day of deposit to maturity. At time of deposit such time deposits
plus repurchase agreements maturing in more than seven days and other illiquid
securities will not in the aggregate exceed 10% of the value of the Fund
assets.
Additionally, no more than 25% of the value of the total assets of the
Fund at the time of investment will be invested in any one industry. Also, the
Fund shall not invest more than 5% of the market value of the assets of the
Fund at the time the investment is made in the securities of any one issuer
(except U.S. Government securities). There is no such limitation with respect
to investments in obligations of the U.S. Government and its agencies and
instrumentalities, bank certificates of deposit of domestic branches of U.S.
banks and time deposits and bankers' acceptances and instruments secured by
these money market instruments.
Investments will not be made in restricted or foreign securities, except
that with respect to the latter, the Fund may acquire U.S. dollar denominated
certificates of deposit and fixed-term time deposits issued by U.S. branches
of foreign banks, foreign branches of U.S. banks, and commercial paper issued
by foreign corporations, assuming proper rating, provided that no more than
25% of the assets of the Fund will be so invested at the time the investment
is made. The policy as to investments in restricted or foreign securities as
described may be changed without a vote of shareholders.
Because of the variability of interest rates and the risks inherent in
investment in money market instruments and other securities, there can be no
assurance that the Fund's investment objective will be attained. To the extent
that investments are made in the instruments of non-governmental issuers,
these assets, despite favorable credit ratings, are subject to some risk of
default. Moreover, investment yields on relatively short-term obligations such
as will comprise the Fund's portfolio are subject to substantial and rapid
fluctuation. The value of the Fund's assets generally will vary inversely to
changes in interest
5
<PAGE>
rates. If interest rates increase after a security is purchased, the security,
if sold prior to maturity, may return less than its cost. Current yield levels
should not be considered representative of yields for any future period of
time. However, the Fund endeavors to maintain a constant net asset value of
$1.00 per share.
The Fund will make portfolio investments primarily in anticipation of or
in response to changing economic and money market conditions and trends.
However, it is anticipated that from time to time the Fund will take advantage
of temporary disparities in the yield relationships among the different
segments of the money market or among particular instruments within the same
segment of the market, to make purchases and sales when the investment adviser
deems that such transactions will improve the yield and return of the
portfolio.
MANAGEMENT OF THE FUND
The Fund's Board of Directors manages the business and affairs of the Fund
taking action on all matters not reserved to the shareholders. This includes
the annual election of officers of the Fund who carry out all orders and
resolutions of the Board of Directors and carry out functions relating to the
day to day management of the affairs of the Fund.
INVESTMENT ADVISORY SERVICES
The Hartford Investment Management Company, Inc. ("HIMCO"), Hartford
Plaza, Hartford, Connecticut 06115, serves as investment adviser to the Fund.
The investment adviser has responsibility for the investment decisions with
respect to the assets of the Fund. Accordingly, the investment adviser
continuously provides the Board of Directors of the Fund with an investment
program for its consideration and, upon approval of the program by the Board,
the investment adviser implements the same by placing orders for the purchase
or sale of securities.
HIMCO is a wholly-owned subsidiary of Hartford Life Insurance Company
("HL") and was organized under the laws of the State of Connecticut in 1981.
HIMCO also serves as investment adviser to several other HL sponsored funds
which are also registered with the Securities and Exchange Commission
("Commission"). Registration with the Commission does not involve supervision
of management or investment practices or policies. HL is ultimately owned by
Hartford Fire Insurance Company, one of the largest multiple lines insurance
carriers in the United States. Hartford Fire Insurance Company is a subsidiary
of ITT Corporation.
FEES
The investment advisory fee payable monthly by the Fund is equal to an
annual rate of .25% of the average daily net asset value.
For 1994, this amounted to $34,162 or .25% of the Fund's average net
assets.
PORTFOLIO BROKERAGE
In accordance with the terms of the Advisory Agreement, the investment
adviser places all portfolio brokerage on behalf of the Fund. The investment
adviser attempts to obtain, in all instances, the best price and execution on
all portfolio transactions. In some instances portfolio brokerage may be
through affiliated persons of the Fund.
6
<PAGE>
ADMINISTRATIVE SERVICES FOR THE FUND
The Administrative Services Agreement between the Fund and HL provides
that HL will provide administrative services to the Fund. Under the terms of
this Agreement, HL will provide the following: administrative personnel,
services, equipment and facilities; and office space for proper operation of
the Fund.
As compensation for the services to be performed by HL, the Fund pays to
HL, as promptly as possible after the last day of each month, a monthly fee
equal to the annual rate of .175 of 1% of the average daily net assets of the
Fund.
For 1994, the Fund paid to HL $23,913, or .175% of the Fund's average net
assets.
DISTRIBUTION PLAN
The Fund has adopted a Distribution Plan which, among other things,
permits it to pay Hartford Equity Sales Company, Inc. ("HESCO"), its principal
underwriter, a distribution fee which is accrued daily and paid to HESCO
monthly. While the Distribution Plan authorizes a fee of up to .50% of the
Fund's average daily net assets, Management has the authority to set the fee
at a level it believes to be adequate to cover anticipated expenses. Although
the Board of Directors has approved continuance of the Distribution Plan, the
Board has decided that no payments will be made under the Plan during the
current fiscal year.
Any fee paid to HESCO is used for expenses associated with the
distribution of Fund shares. Such expenses include advertising and sales
promotional costs. The Board is aware of the range of distribution fees
adopted by other funds and is aware that some fees are lower and some are
higher than the fees charged by HESCO to this Fund. The Board believes that
the fee was a reasonable fee.
EXPENSES OF THE FUND
The Fund shall assume and pay the following costs and expenses: interest;
taxes; brokerage charges (which may be to affiliated broker-dealers); costs of
preparing, printing and filing any amendments or supplements to the
registration forms of the Fund and its securities; all federal and state
registration, qualification and filing costs and fees, issuance and redemption
expenses, transfer agency and dividend and distribution disbursing agency
costs and expenses; custodian fees and expenses; accounting, auditing and
legal expenses; fidelity bond and other insurance premiums; fees and salaries
of directors, officers and employees of the Fund other than those who are also
officers of HL; industry membership dues; all annual and semi-annual reports
and prospectuses mailed to the Funds' shareholders as well as all quarterly,
annual and any other periodic report required to be filed with the Commission
or with any state; any notices required by a federal or state regulatory
authority, and any proxy solicitation materials directed to the Fund's
shareholders as well as all printing, mailing and tabulation costs incurred in
connection therewith, and any expenses incurred in connection with the holding
of meetings of the Fund's shareholders and other miscellaneous expenses
related directly to the Fund's operations and interest.
The total expenses assumed and paid by the Fund for 1994 were $220,523, or
1.61% of its average net assets.
CUSTODIAN AND TRANSFER AGENT
State Street Bank and Trust Company, c/o Servicing Agent, P.O. Box 26070,
Kansas City, Missouri, 64196, serves as Transfer and Dividend Disbursing Agent
and Chase Manhattan Bank, N.A., New York, New York, serves as Custodian of the
Fund's assets. The Custodian is not involved in determining investment
policies of the Fund or its portfolio securities transactions. Its services do
not protect
7
<PAGE>
shareholders against possible depreciation of their assets. The fees of State
Street Bank and Trust Company ("State Street Bank") and Chase Manhattan Bank
are paid by the Fund and thus borne by the Fund's shareholders. State Street
Bank has contracted with National Financial Data Services to serve as
shareholder servicing agent. A depository account has been established at
United Missouri Bank of Kansas City ("United Missouri Bank") through which all
payments for Fund shares will be processed.
COMPUTATION OF NET ASSET VALUE
The net asset value of the Fund's shares will be determined as of the
close of business (currently 4:00 p.m. Eastern Time) on each day the New York
Stock Exchange is open for trading. Net asset value is determined by dividing
the value of the Fund's assets, less the Fund's liabilities, by the number of
outstanding Fund shares.
The Fund's per share net asset value is determined by using the amortized
cost method of valuing its portfolio instruments. Under the amortized cost
method of valuation, an instrument is valued by reference to the Fund's
acquisition cost as adjusted for amortization of premium or accumulation of
discount. Neither the amount of daily income nor the net asset value is
affected by unrealized appreciation or depreciation of the Fund's portfolio.
The amortized cost method of valuation enables the Fund under normal
circumstances to maintain a stable $1.00 net asset value per share. There is
no assurance that a net asset value of $1.00 can always be maintained.
The amortized cost method of valuation permits the Fund to maintain a
stable $1.00 net asset value per share. There is no assurance that a net asset
value of $1.00 can always be maintained. The Fund's Board of Directors
periodically reviews the extent of any deviation from the $1.00 per share
value that would occur if a method of valuation based on market prices and
estimates were used. In the event such a deviation would exceed 1/2 of 1%, the
Board of Directors will promptly consider any action that reasonably should be
initiated to eliminate or reduce material dilution or other unfair results to
shareholders. Such action may include selling portfolio securities prior to
maturity, not declaring earned income dividends, valuing portfolio securities
on the basis of current market prices and redemption of shares in kind.
CURRENT YIELD
The current yield information will fluctuate, and publication of yield
information may not provide a basis for comparison with bank deposits, other
investments which are insured and/or pay a fixed yield for a stated period of
time, or other investment companies. You may obtain a current yield quotation
by telephoning the Fund toll free at 1-800-343-1250.
The annualized current yield for the last seven days ended December 31,
1994 was 4.13%.
DIVIDENDS
The net asset value of the Fund's shares will be determined as described
in "Computation of Net Asset Value" above. Each daily determination of the
Fund's net income consists of (i) all interest income accrued and discounts
earned on the Fund's portfolio assets minus (ii) amortized premiums, plus or
minus (iii) all realized gains and losses on its portfolio assets, minus (iv)
all accrued expenses of the Fund.
All of the net income of the Fund is declared on each day that the Fund is
open for business as a dividend to shareholders of record at the time of each
declaration. Shareholders begin earning dividends on the day following
acceptance of their orders. On the last business day of the month, dividends
will be reinvested in additional whole or fractional shares of the Fund at the
rate of one share for each dollar of dividend paid, if any, unless State
Street Bank is otherwise notified in writing by a shareholder to make payment
in cash prior to any record date for such distributions. If a shareholder
elects to receive his
8
<PAGE>
dividends in cash he will receive a check monthly. A shareholder who redeems
all of his or her account at any time during the month will be paid all
dividends declared through the date of redemption together with proceeds of
the redemption. The Fund's net income for Saturdays, Sundays and holidays will
be declared as a dividend on the next business day.
FEDERAL INCOME TAXES
The Fund has elected and intends to qualify under Part I of Subchapter M
of the Internal Revenue Code of 1986, as amended. In order to qualify for the
special tax treatment provided by Subchapter M, the Fund, among other things,
must derive at least 90% of its gross income from dividends, interest and
gains from the sale of securities; derive less than 30% of its gross income
from the sale of securities held for less than three months and distribute at
least 90% of its investment company taxable income to its shareholders. Under
such provisions, the Fund will pay no Federal income taxes on its investment
company taxable income and net capital gains which are distributed to its
shareholders.
The Fund may be subject to a 4% nondeductible excise tax measured with
respect to certain undistributed amounts of income and capital gain. The Fund
expects to make such additional distributions of net investment income as are
necessary to avoid the application of this tax.
All dividends and net capital gains distributions, if any, are taxable to
shareholders whether or not reinvested in shares of the Fund.
Information on the tax status of dividends and distributions paid by the
Fund on its shares will be sent annually to a shareholder as soon as possible
after the close of the year.
The Fund is required by Federal law to withhold 31% of dividends and
capital gains distributions (if any) paid to certain accounts which have not
complied with IRS regulations. In connection with this withholding
requirement, the shareholder will be asked to certify on the Fund's
application that the social security or tax identification number provided is
correct and that the shareholder is not subject to the 31% backup withholding
for previous underreporting to the IRS.
Shareholders should consult their own tax advisers with respect to their
actual tax status and the tax consequences of distributions from the Fund in
their own states and localities.
PURCHASE OF FUND SHARES
Hartford Equity Sales Company, Inc. ("HESCO"), Hartford Plaza, Hartford,
Connecticut 06115, a subsidiary of HL, serves as Principal Underwriter of the
Fund's shares. Fund shares may be purchased through registered representatives
of HESCO or through broker-dealers that have dealer agreements with HESCO.
Shares of the Fund are continuously offered for sale at a price of $1.00
per share (the net asset value). Shares may be purchased without any fee taken
out for sales charges, although the Fund may make a payment for the
Distribution Fee (see "Distribution Plan" on page 7). The minimum initial
investment must be in the amount of $500 or more, and subsequent investments
must be in the amount of $100 or more except that there is no minimum initial
or subsequent purchase payment requirements applicable to Fund share purchases
made in connection with certain tax-qualified plans.
Investments in the Fund must be in the form of Federal Funds to be
accepted. Federal Funds are monies credited to the account of a member bank of
the Federal Reserve System. The Fund's transfer agent, State Street Bank, is
such a member and has agreed to convert payments made by check into Federal
Funds. A shareholder begins earning dividends on the day following acceptance
by the Fund of his respective orders. Where payment is either received or
converted into Federal Funds and available to the Fund prior to the close of
the New York Stock Exchange, the order to purchase shares will be made
effective as of the close of the New York Stock Exchange.
9
<PAGE>
Statements of Account will be sent to a shareholder each time he purchases
or redeems shares. Dividends or distributions paid in additional Fund shares
will be confirmed on a monthly basis or sooner if there have been other
transactions during the month. A shareholder will receive an annual statement
of his Account which includes information for preparing tax returns.
Purchases may be made by means of either of the following methods:
BY MAIL
The Fund will not accept cash. A purchaser should send his check or other
negotiable bank draft, payable in U.S. dollars, to the order of Hartford Money
Market Fund, Inc., State Street Bank and Trust Company, c/o Servicing Agent,
P.O. Box 26070, Kansas City, Missouri 64196. (If this is a new account, the
order must be accompanied by a completed application.)
Through an arrangement with State Street Bank, where payment accompanying
an order is by check or bank draft drawn on a member bank of the Federal
Reserve System, Federal Funds will be made available to the Fund and the order
will be accepted the second business day after receipt of the check or bank
draft. If payment is made by check or bank draft not drawn on a member bank of
the Federal Reserve System, shares will be purchased as soon as the amount is
converted into Federal Funds by State Street Bank.
BY WIRE
A purchaser may direct his bank to make payment in Federal Funds by wiring
funds directly to United Missouri Bank on a day on which the New York Stock
Exchange, the Federal Reserve System and, in the case of an initial purchase,
the Fund are open for business. If a purchaser is opening a new account, a
purchaser can call the Fund in Hartford, Connecticut at 1-800-343-1250 to
obtain an account number. The purchaser may then instruct the wiring bank to
transmit the specified amount of Federal Funds to:
United Missouri Bank of Kansas City
10th & Grand Avenues
Kansas City, MO 64196
Attention: Hartford Money Market Fund, Inc.
c/o National Financial Data Services
Account of: (name(s) for which the account is to be registered)
Account No.: (number assigned via telephone)
After wiring funds, a purchaser should send a completed Purchase
Application to United Missouri Bank. No redemption instructions will be
accepted until a proper Application is received.
Any commercial bank can transmit Federal Funds by wire. Wired funds
received by United Missouri Bank by 4:00 p.m. (Eastern Time) are accepted for
investment on the day received. In order to ensure that orders transmitted by
bank wire to United Missouri Bank are accepted on the same day they are sent,
a purchaser is urged to have his bank wire funds as early in the day as
possible. The bank sending Federal Funds may charge for this service.
The Fund reserves the right to refuse any order for the purchase of
shares.
Payments will not be invested until converted into Federal Funds and
therefore will not commence earning dividends until the day following the
acceptance of a purchase payment.
The minimum investment by wire is $500.
The sale of shares will be suspended during any period when the
determination of net asset value is suspended. Sales of shares may be
suspended by the Board of Directors whenever, in its judgment, it is in the
best interests of the Fund to do so.
10
<PAGE>
No stock certificates will be issued by the Fund unless specifically
requested in writing by a purchaser. Such request should be directed to State
Street Bank. Instead, an Open Account will be established for each purchaser
and his shares credited to such account.
Shareholders may make inquiries regarding their account by writing to
State Street Bank and Trust Company, c/o Servicing Agent, P.O. Box 26070,
Kansas City, Missouri 64196, or by telephoning National Financial Data
Services toll-free at 1-800-343-1250.
REDEMPTIONS OF FUND SHARES
A shareholder has the right to redeem (subject to the restrictions
outlined herein -- see "Mandatory Redemptions," page 19) all or any part of
his Fund shares at a price equal to the net asset value of those shares next
computed following receipt by the Fund of a request for redemption. (See
"Computation of Net Asset Value", page 8). Redemption requests received after
the close of business of the New York Stock Exchange ("NYSE") are processed at
the net asset value per share next computed.
THE METHODS OF REDEMPTION, HEREAFTER DESCRIBED, MUST BE FOLLOWED EXACTLY.
IF ANY REDEMPTION PROCEDURE IS NOT FOLLOWED EXACTLY OR THE INFORMATION
SUBMITTED IS INCOMPLETE, A SHAREHOLDER SHALL BE NOTIFIED OF ANY DEFICIENCY AND
A REDEMPTION WILL BE HELD UP UNTIL THE PROPER PROCEDURE IS FOLLOWED OR THE
PROPER INFORMATION SUBMITTED.
BY CHECK
If a shareholder would like the privilege of redeeming by check, he or she
should so indicate on the initial application and complete the signature card
provided. Upon receipt of the properly completed application and card, the
Fund will provide the shareholder with redemption checks drawn on State Street
Bank. These checks may be made payable to the order of any person in the
amount of $250 or more. A shareholder will continue to earn dividends until
the check clears. When a check is presented to State Street Bank for payment,
a sufficient number of full and fractional shares in the account will be
redeemed to cover the amount of the check.
A shareholder utilizing redemption checks will be subject to the State
Street Bank rules governing checking accounts. There is currently no charge to
the shareholder for the use of redemption checks; however, the Fund reserves
the right to charge for this service in the future. A shareholder should make
sure that there are sufficient shares in his account to cover the amount of
any check drawn. If insufficient shares are in the account, the check will be
returned marked "insufficient funds" and no shares will be redeemed. A
SHAREHOLDER SHOULD NOT USE A REDEMPTION CHECK TO CLOSE HIS ACCOUNT. Cancelled
checks will be returned to shareholders monthly.
BY TELEPHONE
If a shareholder would like the privilege of redeeming by telephone, he or
she should so indicate on the initial application. Such redemptions may be
made by making a telephone call directly to the shareholder servicing agent
for State Street Bank, toll-free at 1-800-343-1250.
If the amount is $1,000 or more, the proceeds will be wired to a
designated bank and a wire fee, currently $3.50, will be deducted from the
proceeds. The Fund reserves the right to increase the wire fee when expenses
related to this service necessitate it. If the amount is less than $1,000, the
proceeds will be sent by check to the bank account a shareholder has
designated previously. Telephone redemption requests must be received by
National Financial Data Services by the close of trading on the New York Stock
Exchange on a day when State Street Bank is open for business. Requests made
after that time or on a day when State Street Bank is not open for business
cannot be accepted by State Street Bank and a new request will be necessary.
The proceeds of a telephone redemption will be sent on the first business day
following receipt of the redemption request. The shareholder, not the Fund or
State Street Bank, is responsible for the authenticity of redemption
instructions received by telephone.
11
<PAGE>
Under this service a shareholder should designate the bank account to
which the redemption proceeds should be sent. If the shareholder's bank is a
savings bank or any other bank that is not a member of the Federal Reserve
System, telephone redemptions cannot be made unless that bank has a
correspondent bank that is a member of the System. A shareholder may change a
bank account designation upon written request to State Street Bank. However, a
shareholder's signature on the request must be guaranteed by a commercial bank
(not a savings bank) or a member firm of the New York, Boston, Philadelphia,
Midwest or Pacific Stock Exchanges.
BY MAIL
A shareholder may redeem any amount from his or her account by sending a
written redemption request to: Hartford Money Market Fund, Inc., c/o Servicing
Agent, P.O. Box 26070, Kansas City, Missouri 64196. Redemption requests must
be signed by the registered shareholder and be accompanied by a stock power
with signature(s) guaranteed by a commercial bank (not a savings bank) or a
member firm of the New York, Boston, Philadelphia, Midwest or Pacific Stock
Exchange. A signature guarantee will not be required, however, if the proceeds
of the redemption do not exceed $5,000 and the check is made payable to the
registered owner(s) and mailed to the record address.
The Fund reserves the right to terminate or modify the terms of the check
or the telephone redemption services or to charge shareholders for the use of
these services at any time.
If the shareholder is a corporation, partnership, agency, fiduciary or
surviving joint owner, additional documentation will be required to authorize
redemptions by the methods described above or to change redemption
instructions. If a shareholder did not request the right to make redemptions
by check or by telephone on his initial application and later wishes to do so,
he must first properly complete and return to the Fund a redemption
authorization form. These documents may be obtained from Hartford Money Market
Fund, Inc., c/o Servicing Agent, P.O. Box 26070, Kansas City, Missouri 64196.
A shareholder may either authorize or change the authorization for check or
telephone redemptions by written notice with signature guarantee whited out on
original sent to and received by State Street Bank.
MANDATORY REDEMPTIONS
Due to the cost of maintaining shareholder accounts, the Fund reserves the
right and currently plans to redeem shares involuntarily and mail the proceeds
to the shareholder if at any time the value of shares in the shareholder's
account falls below a specified amount, presently set at $500. The shareholder
will be notified and will have 60 days to bring the account up to the required
amount before any redemption action will be taken by the Fund.
PAYMENT OF REDEMPTIONS
Normally the Fund makes payment of amounts redeemed under any of the above
procedures on the next business day following the date on which the request
for redemption is effected. In any event, payment is made not more than seven
days after the receipt of a redemption request in proper form by the Fund. If
however, the request for redemption is made by check or telephone and payment
for the purchase of shares being redeemed was made by a regular check, the
redemption payment by the Fund will not be mailed until all checks in payment
for the shares to be redeemed have been cleared, or for up to 10 days after
the receipt of the payment for shares, whichever occurs first. It may take as
many as ten days for a check to clear. During the delay for check clearing,
the amount paid by the shareholder will be held by the Fund and will earn
interest at the then current rate.
The Fund may suspend the right of redemption and may postpone payment (i)
when the NYSE is closed for other than customary weekends or holidays; (ii) if
permitted by the rules of the Commission, during periods when trading on the
NYSE is restricted or during any emergency which makes it impractical for the
Fund to dispose of its securities or to determine fairly the value of its net
assets; or (iii) during any other period permitted by order of the Commission
for the protection of investors.
12
<PAGE>
INVESTMENT PLANS
To meet the varying needs of the individual investors, the Fund offers
several plans.
AUTOMATIC INVESTMENT PLANS
After opening an account, you may authorize the Fund to draw regular
monthly checks of $100 or more on your bank account for the purpose of
automatically accumulating additional shares. The checks are forwarded to
United Missouri Bank for investment in the Fund. Payments normally are
credited to the Fund not later than the second business day after the check is
drawn. An application must be completed to open an automatic investment plan.
An application may be obtained by calling the Fund toll-free at
1-800-343-1250. This program is voluntary and may be terminated at any time by
the investor or by the Fund upon written notice by the Fund to shareholders.
There is no additional fee charged by State Street Bank or the Fund for
participating in this program.
INDIVIDUAL RETIREMENT ACCOUNTS
Salaried and self-employed individuals may establish and make certain
limited tax deductible contributions to an Individual Retirement Account
("IRA"). The contribution into the IRA by the individual is deductible on his
Federal income tax return and the earnings from investments made under the IRA
are not subject to Federal income tax until distributed. Under certain
circumstances employers may also make limited contributions to an employee's
IRA which are deductible to the employer and not taxable to the employee.
Forms to establish an IRA are available from HESCO and contain information
about the fees charged.
Under certain conditions, pursuant to Internal Revenue Service
regulations, an individual may revoke the IRA and receive a full refund on his
investment. The individual will bear the investment risk;
no other charges will be assessed. Individuals should consult the IRA
Disclosure Statement.
SYSTEMATIC WITHDRAWAL PROGRAM
If a shareholder's account value is $5,000 or more, he may establish a
systematic withdrawal program, whereby a monthly, quarterly, semi-annual or
annual payment (as the shareholder chooses) will be made to the shareholder,
or to another as the shareholder may designate. A minimum withdrawal of $50 is
required. While a systematic withdrawal program is in effect, any dividends
and capital gains distributions will be reinvested automatically at net asset
value on the ex-dividend date of such dividends and distributions. Withdrawal
payments must be made through redemption of shares. Such redemptions are
normally taxable transactions. If Fund shares are issued with respect to some
form of qualified plan a redemption may or may not be subject to tax. A
shareholder should consult with a qualified tax adviser. There are no other
fees charged by State Street Bank or the Fund for participating in this
program.
The reinvestment of dividends and capital gains distributions, or any
increase in the net asset value of shares may, to some extent, offset the
effect of continued redemption of shares. Operation of a withdrawal plan may
exhaust a shareholder's entire investment, particularly in the event of a
decline in the net asset value of Fund shares. Should a shareholder's account
value become less than $500, his account may be subject to mandatory
redemption. (See "Mandatory Redemptions", page 12.) The systematic withdrawal
program may be amended on thirty (30) days' written notice by the Fund to
shareholders.
TRANSFER OF FUND SHARES
State Street Bank acts as an agent for the Fund whenever it receives
instructions from a shareholder to carry out a transaction. Shares credited to
an account are transferable upon receipt by State Street Bank of written
transfer instructions meeting customary transfer requirements. Such transfer
requirements are obtainable from State Street Bank.
13
<PAGE>
MASTER ACCOUNT RECORD SERVICES
State Street Bank provides a Master Account Record service for plans that
require recordkeeping services for their participants' accounts. This service
prepares computerized statements that provide current share totals on each
account. Shareholders wishing to open multiple accounts under this system may
obtain appropriate forms and further information by calling the Fund at
1-800-343-1250.
DISTRIBUTOR
Fund shares are distributed by the Fund through its principal underwriter,
Hartford Equity Sales Company, Inc., Hartford Plaza, Hartford, Connecticut.
HESCO is a wholly owned subsidiary of HL and is registered with the Commission
as a broker-dealer and is a member firm of the National Association of
Securities Dealers, Inc.
Certain officers and directors of the Fund are also officers and directors
of HESCO: Lowndes A. Smith, a Director of the Funds, is a Director and the
President of HESCO; John P. Ginnetti, Vice President of the Fund, is a
Director and Senior Vice President of HESCO; Donald J. Waggaman, Jr., Vice
President and Treasurer of the Fund, is Treasurer of HESCO; George Jay,
Controller of the Fund, is Controller of HESCO; and Joseph W. Tedesco,
Assistant Secretary of the Fund, is Assistant Secretary of HESCO.
ORGANIZATION AND CAPITALIZATION OF THE FUND
The Fund was incorporated under the laws of Maryland on February 3, 1982.
The Fund is authorized to issue 500,000,000 shares of its $10 par value common
capital stock. The shares are entitled to one vote per share (with
proportional voting for fractional shares), are freely transferable, are
entitled to dividends as determined by the Directors, and on liquidation of
the Fund, shareholders are entitled to receive the remaining assets of the
Fund. A shareholder has no preemptive rights.
PENDING LEGAL PROCEEDINGS
As of the date of this Prospectus, there were no legal proceedings pending
against the Fund or its investment adviser.
14
<PAGE>
APPENDIX
RATING OF BONDS AND COMMERCIAL PAPER
The rating information which follows describes how the rating services
mentioned presently rate the described securities. No reliance is made upon the
rating firms as "experts" as that term is defined for securities purposes.
Rather, reliance on this information is on the basis that such ratings have
become generally accepted in the investment business.
RATING OF BONDS
Investments in publicly traded non-convertible corporate debt securities
issued by U.S. corporations will be made in such securities having one of the
four highest ratings assigned to such bonds by Moody's Investors Service, Inc.
("Moody's") or Standard & Poor's Corporation ("Standard & Poor's"). Such ratings
are as follows:
MOODY'S
Bonds which are rated Aaa are judged to be of the best quality. They carry
the smallest degree of investment risk and are generally referred to as "gilt
edge". Interest payments are protected by a large or by an exceptionally stable
margin and principal is secure. While the various protective elements are likely
to change, such changes as can be visualized are most unlikely to impair the
fundamentally strong position of such issues.
Bonds which are rated Aa are judged to be of high quality by all standards.
Together with the Aaa group they comprise what are generally known as high grade
bonds. They are rated lower than the best bonds because margins of protection
may not be as large as in Aaa securities or fluctuation of protective elements
may be of greater amplitude or there may be other elements present which make
the long term risks appear somewhat larger than in Aaa securities.
Bonds which are rated A possess many favorable investment attributes and are
to be considered as upper medium grade obligations. Factors giving security to
principal and interest are considered adequate but elements may be present which
suggest a susceptibility to impairment sometime in the future.
Bonds which are rated Baa are considered as medium grade obligations, i.e.,
they are neither highly protected nor poorly secured. Interest payments and
principal security appear adequate for the present but certain protective
elements may be lacking or may be characteristically unreliable over any great
length of time. Such bonds lack outstanding investment characteristics and in
fact have speculative characteristics as well.
STANDARD & POOR'S
Bonds rated AAA are highest grade obligations. They possess the ultimate
degree of protection as to principal and interest.
Bonds rated AA also qualify as high grade obligations, and in the majority
of instances differ from AAA issues only in small degree.
Bonds rated A are regarded as upper medium grade obligations. They have
considerable investment strength but are not entirely free from adverse effects
of changes in economic and trade conditions. Interest and principal are regarded
as safe.
The BBB, or medium grade category, is borderline between definitely sound
obligations and those where the speculative element begins to predominate. These
bonds have adequate asset coverage and normally are protected by satisfactory
earnings. Their susceptibility to changing conditions, particularly to
depressions, necessitates constant watching. Marketwise, the bonds are more
responsive to business and trade conditions than to interest rates. This group
is the lowest which qualifies for commercial bank investment.
15
<PAGE>
RATING OF COMMERCIAL PAPER
Purchases of corporate debt securities used for short-term investment,
generally called commercial paper, will be limited to the top grades of Moody's
and Standard & Poor's rating services.
MOODY'S
Issuers rated Prime-1 (or related supporting institutions) have a superior
capacity for repayment of short-term promissory obligations. Prime-1 repayment
capacity will normally be evidenced by the following characteristics:
- Leading market positions in well-established industries.
- High rates of return on funds employed.
- Conservative capitalization structures with moderate reliance
on debt and ample asset protection.
- Broad margins in earnings coverage of fixed financial charges
and high internal cash generation.
- Well-established access to a range of financial markets and
assured sources of alternate liquidity.
Issuers rated Prime-2 (or related supporting institutions) have a strong
capacity for repayment of short-term promissory obligations. This will normally
be evidenced by many of the characteristics cited above but to a lesser degree.
Earnings trends and coverage ratios, while sound, will be more subject to
variation. Capitalizaton characteristics, while still appropriate, may be more
affected by external conditions. Ample alternate liquidity is maintained.
STANDARD AND POOR'S
The relative strength or weakness of the following factors determines
whether the issuer's commercial paper is rated A-1 or A-2.
- Liquidity ratios are adequate to meet cash requirements.
Liquidity ratios are basically as follows, broken down by the type of
issuer:
Industrial Company: acid test ratio, cash flow as a percent of current
liabilities, short-term debt as a percent of current liabilities, short-term
debt as a percent of current assets.
Utility: current liabilities as a percent of revenues, cash flow as a
percent of current liabilities, short-term debt as a percent of
capitalization.
Finance Company: current ratio, current liabilities as a percent of net
receivables, current liabilities as a percent of total liabilities.
- The long-term senior debt rating is "A" or better; in some
instances "BBB" credits may be allowed if other factors
outweigh the "BBB".
- The issuer has access to at least two additional channels of
borrowing.
- Basic earnings and cash flow have an upward trend with
allowances made for unusual circumstances.
- Typically, the issuer's industry is well established and the
issuer has a strong position within its industry.
- The reliability and quality of management are unquestioned.
16
<PAGE>
PART B
<PAGE>
PART B
STATEMENT OF ADDITIONAL INFORMATION
HARTFORD MONEY MARKET FUND, INC.
This Statement of Additional Information is not a prospectus. The
information contained herein should be read in conjunction with the prospectus.
To obtain a prospectus, send a written request to Hartford Money Market
Fund, Inc., P.O. Box 2999, Hartford, CT 06104-2999.
Date of Prospectus: May 2, 1995
Date of Statement of Additional Information: May 2, 1995
1
<PAGE>
TABLE OF CONTENTS
<TABLE>
<CAPTION>
PAGE
<S> <C>
INVESTMENT OBJECTIVE OF THE FUND........................................................................... 3
INVESTMENT RESTRICTIONS OF THE FUND........................................................................ 3
PORTFOLIO TURNOVER......................................................................................... 4
MANAGEMENT OF THE FUND..................................................................................... 4
INVESTMENT ADVISORY AND OTHER SERVICES..................................................................... 6
DISTRIBUTION PLAN.......................................................................................... 7
INDEPENDENT PUBLIC ACCOUNTANTS............................................................................. 8
PORTFOLIO BROKERAGE........................................................................................ 8
UNDERWRITER................................................................................................ 8
DIVIDENDS.................................................................................................. 9
CALCULATION OF TOTAL RETURN AND YIELD...................................................................... 9
FINANCIAL STATEMENTS....................................................................................... 11
</TABLE>
2
<PAGE>
INVESTMENT OBJECTIVE OF THE FUND
The investment objective of the Fund is to achieve as high a level of
current income as is consistent with liquidity and preservation of capital. The
investment objective of the Fund may not be changed without the approval of a
majority of the outstanding voting securities of the Fund. There can be no
assurance that the investment objective of the Fund will be achieved.
INVESTMENT RESTRICTIONS OF THE FUND
In addition to the investment objectives and policies stated in the
prospectus, the Fund will comply with the investment restrictions described
below.
1. The Fund shall not invest in the securities of any one issuer (except
U.S. Government securities) more than 5 percent of the market value of the
assets of the Fund at the time the investment is made.
2. Borrowings are not permitted except for temporary or emergency purposes
up to a maximum of 5 percent of the value of the total assets of the Fund at the
date of borrowing.
3. Securities of other issuers will not be underwritten.
4. No more than 25 percent of the total assets of the Fund at the time of
investment will be invested in any one industry. There is no such limitation
with respect to investments in obligations of the U.S. Government and its
agencies and instrumentalities, bank certificates of deposit of domestic
branches of U.S. banks and time deposits and bankers' acceptances and
instruments secured by these money market instruments.
5. The Fund will not issue senior securities.
6. No investments in real estate will be made.
7. Loans will not be made except through the acquisition of a portion of an
issue of publicly distributed bonds, debentures, or other evidences of
indebtedness of a type customarily purchased by institutional investors and
except that money market instruments including repurchase agreements and time
deposits may be acquired and held as permitted in accordance with the investment
objective and policies of the Fund.
8. Short sales, or purchases on margin will not be made.
9. The Fund will not purchase commodities or commodity contracts.
10. No investment will be made in the securities of any issuer for the
purpose of exercising management or control.
11. Investments will not be made in restricted or foreign securities, except
that the Fund may acquire U.S. dollar denominated certificates of deposit and
fixed-term time deposits issued by U.S. branches of foreign banks, foreign
branches of U.S. banks, and commercial paper issued by foreign corporations,
assuming proper rating, provided that no more than 25% of the assets of the Fund
will be so invested at the time the investment is made.
12. The Fund may not enter into a repurchase agreement if, as a result
thereof, more than 10% of the Fund's assets, valued at the time of the
transaction, would be subject to repurchase agreements maturing in more than 7
days plus time deposits maturing in more than 7 days and other illiquids.
13. No securities owned or held by the Fund will be mortgaged, pledged,
hypothecated, or in any manner transferred as security for indebtedness.
14. The Fund will not purchase or retain securities of any issuer if, to the
knowledge of the Fund, officers and directors of the Fund or officers and
directors of any investment adviser of the Fund who individually own
beneficially more than 1/2 of 1% of the securities of that company, together own
beneficially more than 5%.
3
<PAGE>
15. The Fund intends to hold most securities to maturity. It may, however,
sell securities to improve the quality and/or yield of the portfolio.
16. The Fund will not invest in securities of other investment companies,
except as they may be acquired as part of the merger, consolidation or
acquisition of assets.
17. The Fund will not invest in securities of businesses less than three
years old.
18. The Fund will not invest more than 5% of the Fund's net assets in
warrants, those not listed on the New York or American Exchanges not to exceed
2% of the Fund's net assets.
The restrictions set forth in items (1) through (9) above are deemed to be
fundamental and may not be changed without the approval of a "majority" of the
outstanding voting securities of the Fund, as defined in the Investment Company
Act of 1940, as amended ("1940 Act").
The investment restrictions set forth in items (10) through (18) above may
be changed by the vote of a majority of the Fund's Board of Directors.
PORTFOLIO TURNOVER
Because of the short term nature of the Fund's portfolio securities and
market conditions, no meaningful or accurate predictions can be made of the
turnover rate for the Fund.
MANAGEMENT OF THE FUND
The directors and officers of the Fund and their principal business
occupations for the last five years are set forth below. Those directors who are
deemed to be "interested persons" of Hartford Life Insurance Company ("HL") as
that term is defined in the 1940 Act, are indicated by an asterisk next to their
respective names.
Pursuant to a provision of each Fund's Bylaws, an Audit Committee has been
appointed for each of the Funds. This Committee is made up of those directors
who are not "interested persons" of HL. The functions of the Audit Committee
include, but are not limited to: (1) recommending to the Board of Directors the
engagement of an independent auditor; (2) reviewing the plan and results of such
auditor's engagement; and (3) reviewing the Fund's internal audit arrangements.
JOSEPH ANTHONY BIERNAT
Director
30 Hurdle Fence Drive
Avon, CT 06001
Mr. Biernat served as Senior Vice President and Treasurer of United
Technologies Corporation from 1984 until March, 1987, when he retired. He
subsequently served as Executive Vice President of Boston Security Counselors,
Inc., Hartford, Connecticut, and served as Vice President-Client Services of
Wright Investors' Service, Bridgeport, Connecticut. Mr. Biernat presently is
consulting to organizations on financial matters, with the majority of time
spent with T.O. Richardson & Co., Farmington, Connecticut.
4
<PAGE>
WINFRED COLEMAN
Director
[Bio to come]
JOSEPH HARRY GAREAU
President
Hartford Plaza
Hartford, CT 06116
Mr. Gareau has served as the Executive Vice President and Chief Investment
Officer of ITT Hartford Insurance Group since April, 1993. Formerly, he served
as Senior Vice President (September, 1992 - April, 1993) and Vice President
(October, 1987 - September, 1992).
JOHN PHILIP GINNETTI*
Vice President
P.O. Box 2999
Hartford, CT 06104-2999
Mr. Ginnetti has served as Senior Vice President and Director of the
Individual Life and Annuities Division of ITT Hartford Insurance Group-Life
Companies since 1988.
GEORGE RICHARD JAY*
Controller
P.O. Box 2999
Hartford, CT 06104-2999
Mr. Jay has served as Secretary and Director, Life and Equity Accounting and
Financial Control of ITT Hartford Insurance Group-Life Companies since 1987.
CHARLES MINER O'HALLORAN*
Secretary
Hartford Plaza
Hartford, CT 06115
Mr. O'Halloran has served as Senior Associate General Counsel and Director
of the Corporate Unit of ITT Hartford Insurance Group since 1988.
WILLIAM ATCHISON O'NEILL
Director
Box 360
East Hampton, CT 06424
The Honorable William A. O'Neill served as Governor of the State of
Connecticut from 1980 until 1991. He is presently retired.
MILLARD HANDLEY PRYOR, JR.
Director
90 State House Square
Hartford, CT 06103
Mr. Pryor is the Chairman and Chief Executive Officer of Corcap, Inc., a
holding Company, and a Managing Director of Pryor & Clark Company, Hartford,
Connecticut. He served as Chairman of the Board of Lydall, Inc. from 1985 until
October, 1991 and formerly served as President and Chief Executive Officer.
LOWNDES ANDREW SMITH*
Director
P.O. Box 2999
Hartford, CT 06104-2999
5
<PAGE>
Mr. Smith has served as President, Chief Operating Officer, and Director of
ITT Hartford Insurance Group-Life Companies and as a Director of ITT Hartford
Insurance Group since November, 1989. As President and Chief Operating Officer
of ITT Hartford Insurance Group-Life Companies. He has direct operating
responsibilities for ITT Life and Annuity Insurance Company in Minneapolis and
Abbey Life of Canada.
JOHN KELLEY SPRINGER
Director
55 Farmington Avenue
Hartford, CT 06105
Mr. Springer has served as President and Chief Executive Officer of
Connecticut Health System, Inc., a hospital holding company, since 1986.
Formerly, he served as the President and Chief Executive Officer of Hartford
Hospital, Hartford, Connecticut.
JOSEPH WILLIAM TEDESCO*
Assistant Secretary
Hartford Plaza
Hartford, CT 06115
Mr. Tedesco has served as Director of Tax Administration of ITT Hartford
Insurance Group since 1987.
DONALD EDWARD WAGGAMAN, JR.*
Vice President and Treasurer
Hartford Plaza
Hartford, CT 06115
Mr. Waggaman has served as the Treasurer of the ITT Hartford Insurance
Group-Life Companies since December, 1992 and as Assistant Vice President of ITT
Hartford Insurance Group (since 1987) and Associate Treasurer (since September,
1990). Formerly, he served as Assistant Treasurer.
INVESTMENT ADVISORY AND OTHER SERVICES
INVESTMENT ADVISORY AGREEMENT ("AGREEMENT")
The investment adviser has responsibility for the investment decisions with
respect to the assets of the Fund. Accordingly, the investment adviser
continuously provides the Board of Directors of the Fund with an investment
program for its consideration and, upon approval of the program by the Board,
the investment adviser implements the same by placing orders for the purchase or
sale of securities.
The Hartford Investment Management Company, Inc. Hartford Plaza, Hartford,
Connecticut 06115 ("HIMCO"), serves as investment adviser to the Fund. HIMCO is
a wholly-owned subsidiary of Hartford Life Insurance Company. Hartford Life
Insurance Company is ultimately owned by Hartford Fire Insurance Company, one of
the largest multiple lines insurance carriers in the United States. Hartford
Fire Insurance Company is a subsidiary of ITT Corporation.
Certain officers and directors of the Fund are also officers and directors
of HIMCO; Joseph H. Gareau is President and Director of HIMCO, Charles M.
O'Halloran is Secretary, Director and Counsel of HIMCO; and Donald E. Waggaman
is the Treasurer of HIMCO.
FEES
The investment advisory fee payable by the Fund is equal to an annual rate
of .25 of 1% of the Fund's average daily net asset value.
For the 1994 fiscal year, this fee amounted to $34,829.
6
<PAGE>
DUTIES OF INVESTMENT ADVISER
Pursuant to the Agreement, the Investment Adviser shall:
(a) make all determinations with respect to the purchase and sale of
portfolio securities and shall take such steps as may be necessary to
implement the same. Such determinations and services shall also include
determining the manner in which voting rights, rights to consent to
corporate action and any other rights pertaining to the Fund's portfolio of
securities should be exercised, subject in all instances to the approval of
a majority of the Fund's Board of Directors;
(b) regularly furnish reports to the Fund at the periodic meetings of
the Fund's Board of Directors and at such other times as may reasonably be
requested by the Board of Directors, of (i) the decisions which it has made
with respect to the investment of the assets of the Fund and the purchase
and sale of securities, (ii) the reasons for such decisions, and (iii) the
extent to which those decisions have been implemented;
(c) place, in the name of the Fund, all orders for the execution of the
Fund's portfolio transactions and when placing such orders, use its best
efforts to obtain the best security prices available for the Fund and place
all such orders subject to and in accordance with any directions which the
Board of Directors of the Fund may issue from time to time (see Portfolio
Brokerage, page ).
COMMISSION OR FEE RECAPTURE
Under the Agreement, to the extent that the investment adviser recaptures
commissions or fees on behalf of the Fund, it will reduce the compensation
payable to it by the Fund by the net amount of such commissions or fees
recaptured, after deduction of direct charges incurred therewith.
DISTRIBUTION PLAN
As required by Rule 12b-1 under the 1940 Act, the Distribution Plan
described in the prospectus (together with the Principal Underwriting Agreement
pursuant to which the distribution fee is paid) was approved by a majority of
the shareholders on October 19, 1983 at a special meeting called for that
purpose and was approved by the Board of Directors, including a majority of the
Directors who are not interested persons of the Fund and who have no direct or
indirect financial interest in the operation of the Plan or the Principal
Underwriting Agreement.
In approving the Plan, the Directors considered various factors (including
the amount of the distribution fee, use of the fee, and the possible benefits of
the fee). The Directors determined that there is a reasonable likelihood that
the Plan will benefit the Fund and the shareholders. As long as the Plan is in
operation, the non-interested Directors will be selected and nominated by
non-interested Directors.
The Plan may be terminated by vote of a majority of the non-interested
Directors who have no direct or indirect financial interest in the Plan or in
the Principal Underwriting Agreement, or by vote of a majority of the
outstanding securities of the Fund. Any change in the Plan that would materially
increase the distribution fee paid to the Fund requires shareholder approval;
otherwise the Plan may be amended by the Directors, including a majority of the
non-interested Directors as described above.
INDEPENDENT PUBLIC ACCOUNTANTS
The financial statements included in this Prospectus and elsewhere in the
registration statement have been audited by Arthur Andersen LLP, independent
public accountants, as indicated in their reports with respect thereto, and are
included herein in reliance upon the authority of said firm as experts in
accounting and auditing. Arthur Andersen LLP periodically audits the Fund and
annually certifies all of the financial statements of the Fund.
7
<PAGE>
PORTFOLIO BROKERAGE
In accordance with the terms of the Advisory Agreement, the investment
adviser places all portfolio brokerage on behalf of the Fund. The investment
adviser attempts to obtain, in all instances, the best price and execution on
all portfolio transactions. In some instances, portfolio brokerage may be
through affiliated persons of the Fund.
Purchases and sales of debt securities issued or guaranteed by the .S.
Government will be effected on a net basis with a securities dealer acting as
principal. Principal transactions may involve the payment of a fee or
commission. Securities transactions may also be effected directly with the
issuer without the payment of a fee or commission. The investment adviser may
also place orders for the purchase of part of an issue of securities, on behalf
of the Fund, that is being underwritten at prices which will include the payment
of an underwriting fee or a commission to the members of the underwriting group
from whom the securities are purchased.
The investment adviser has been authorized by the Board of Directors of the
Fund to pay an execution-plus-research commission rate which is higher than an
execution-only commission rate in connection with portfolio securities
transactions executed on behalf of the Fund. The Fund's investment adviser has
been authorized by the Fund's Board of Directors to pay higher commissions than
other broker dealers may charge for such transactions so long as the adviser
determines in good faith (in accordance with the requirements of the Securities
Exchange Act of 1934, as amended) that the commissions paid are reasonable in
relation to the value of the brokerage and research and statistical services
provided either in terms of the particular transaction or with respect to its
overall account responsibilities. There is no certainty that any research
services thus acquired will be beneficial to the Fund; under certain
circumstances, other clients of the investment adviser may benefit from research
and statistical services so received. Further, by paying a higher commission to
a broker-dealer under the circumstances described, the amount of brokerage
commissions which the Fund pays may tend to increase.
UNDERWRITER
Fund shares are distributed pursuant to a continuous offering by the Fund
through Hartford Equity Sales Company, Inc. ("HESCO"), Hartford Plaza, Hartford,
Connecticut. HESCO is a wholly owned subsidiary of HL and is registered with the
Securities and Exchange Commission as a broker-dealer in securities and is a
member firm of the National Association of Securities Dealers, Inc. HESCO
entered into a Principal Underwriting Agreement (the "Agreement") with the Fund
effective October 19, 1983. The Agreement was approved by a majority of the
Funds shareholders at a special meeting called for that purpose and by the Board
of Directors including a majority of the Directors who are not interested
persons of the Fund and who have no direct or indirect financial interest in the
Distribution Plan or the Principal Underwriting Agreement. (See "Distribution
Plan" commencing on page 7) Under the terms of the Agreement, HESCO is appointed
Principal Underwriter for the Fund's shares and HESCO will use its best efforts
to sell such Fund shares to purchasers directly as agent or through dealers
selected by and who have executed a selling agreement with HESCO. HESCO does not
receive any compensation for serving as Principal Underwriter but may receive a
fee for providing certain distribution services on behalf of the Fund. (See
"Distribution Plan" commencing on page 7)
DIVIDENDS
Each daily determination of the Fund's net income consists of (i) all
interest income accrued and discounts earned on the Fund's portfolio assets
minus (ii) amortized premiums, plus or minus (iii) all realized gains and losses
on its portfolio assets, minus (iv) all accrued expenses of the Fund.
8
<PAGE>
All of the net income of the Fund is declared on each day that the Fund is
open for business as a dividend to shareholders of record at the time of each
declaration. Shareholders begin earning dividends on the day following
acceptance of their orders. On the last business day of the month, dividends
will be reinvested in additional whole or fractional shares of the Fund at the
rate of one share for each dollar of dividend paid, if any, unless State Street
Bank is otherwise notified by a shareholder in writing prior to any record date
for such distributions. If you elect to receive your dividends in cash, you will
receive a check monthly. A shareholder who redeems all of his or her account at
any time during the month will be paid all dividends through the date of
redemption together with proceeds of the redemption. The Fund's net income for
Saturdays.
CALCULATION OF TOTAL RETURN AND YIELD
As summarized in the Prospectus under the heading "Performance Related
Information," the yield of the Fund for a seven-day period (the "base period")
will be computed by determining the "net change in value" (calculated as set
forth below) of a hypothetical account having a balance of one share at the
beginning of the period, dividing the net change in account value by the value
of the account at the beginning of the base period to obtain the base period
return, and multiplying the base period return by 365/7 with the resulting yield
figure carried to the nearest hundredth of one percent. Net changes in value of
a hypothetical account will include the value of additional shares purchased
with dividends from the original share and dividends declared on both the
original share and any such additional shares, but will not include realized
gains or losses or unrealized appreciation or depreciation on portfolio
investments. Yield may also be calculated on a compound basis (the "effective
yield") which assumes that net income is reinvested in Fund shares at the same
rate as net income is earned for the base period.
The yield and effective yield will vary in response to fluctuations in
interest rates and in the expenses of the Fund.
Example:
The following is an example of this yield calculation for the Fund based on
a seven day period ending December 31, 1994.
Assumptions:
<TABLE>
<S> <C>
Value of a hypothetical pre-existing account with exactly one share at the
beginning of the period:.................................................... $ 1.000000000
Value of the same account* (excluding capital changes) at the end of the
seven day period:........................................................... $ 0.000776000
</TABLE>
*This value would include the value of any additional shares purchased with
dividends from the original share, and all dividends declared on both the
original share and any such additional shares.
Calculation:
<TABLE>
<S> <C>
Ending account value..................................................... $ 1.000776000
Less beginning account value............................................. $ 1.000000000
-------------
Net change in account value.............................................. $ 0.000776000
</TABLE>
Base period return:
<TABLE>
<S> <C>
(adjusted change/beginning account value)................................ $ 0.000776000
-------------
$0.000776000/1.000000000 =
Current yield = $0.000776000 x (365/7) =..................................... 4.05%
Effective Yield = (1 + 0.000776000) (365)/(7) =.............................. 4.13%
</TABLE>
At any time in the future, yields and total return may be higher or lower
than past yields and there can be no assurance that any historical results will
continue.
9
<PAGE>
CALCULATION OF TOTAL RETURN. As summarized in the Prospectus under the
heading "Performance Related Information", total return is a measure of the
change in value of an investment in a Fund over the period covered, which
assumes any dividends or capital gains distributions are reinvested in that Fund
immediately rather than paid to the investor in cash. The formula for total
return used herein includes three steps: (1) calculating the value of the
hypothetical initial investment of $1,000 as of the end of the period by
multiplying the total number of shares owned at the end of the period by the net
asset value per share on the last trading day of the period; (2) assuming
redemption at the end of the period and deducting any applicable contingent
deferred sales charge and (3) dividing this account value for the hypothetical
investor by the initial $1,000 investment. Total return will be calculated for
one year, five years and ten years.
PERFORMANCE COMPARISONS
YIELD AND TOTAL RETURN. The Fund may from time to time include its total
return in advertisements or in information furnished to present to prospective
shareholders. The Fund may from time to time include its yield and total return
in advertisements or information furnished to present and prospective
shareholders. The Fund may from time to time include in advertisements its total
return (and yield) the ranking of those performance figures relative to such
figures for groups of Funds analyzed by Lippr Analytical Services as having the
same investment objectives.
10
<PAGE>
- --------------------------------------------------------------------------------
REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS
TO THE BOARD OF DIRECTORS AND SHAREHOLDERS OF
HARTFORD MONEY MARKET FUND, INC.
- --------------------------------------------------------------------------------
We have audited the accompanying statement of net assets of Hartford Money
Market Fund, Inc. (a Maryland corporation) as of December 31, 1994, and the
related statement of operations for the period then ended, the statement of
changes in net assets for each of the two years in the period then ended, and
the financial highlights for each of the five years in the period then ended.
These financial statements and financial highlights are the responsibility of
the Fund's management. Our responsibility is to express an opinion on these
financial statements and financial highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements are free of
material misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements. Our
procedures included confirmation of securities owned as of December 31, 1994,
by correspondence with the custodian. An audit also includes assessing the
accounting principles used and significant estimates made by management, as
well as evaluating the overall financial statement presentation. We believe
that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of
Hartford Money Market Fund, Inc. as of December 31, 1994, the results of its
operations for the year then ended, the changes in its net assets for each of
the two years in the period then ended, and the financial highlights for each
of the five years in the period then ended in conformity with generally
accepted accounting principles.
Hartford, Connecticut
February 10, 1995 Arthur Andersen LLP
<PAGE>
- --------------------------------------------------------------------------------
HARTFORD MONEY MARKET FUND, INC.
STATEMENT OF OPERATIONS
DECEMBER 31, 1994
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
INVESTMENT INCOME:
Interest.................................................................................... $ 592,474
EXPENSES:
Shareholder accounting...................................................................... 94,733
Investment advisory services................................................................ 34,162
Registration fees........................................................................... 33,500
Administrative services..................................................................... 23,913
Custodian fees.............................................................................. 21,938
Board of Directors.......................................................................... 133
Other expenses.............................................................................. 12,144
---------
Total expenses............................................................................ 220,523
---------
Net investment income......................................................................... 371,951
---------
Net increase in net assets resulting from operations.......................................... $ 371,951
---------
---------
</TABLE>
- --------------------------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS
DECEMBER 31, 1994
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
YEAR ENDED YEAR ENDED
DECEMBER 31, 1994 DECEMBER 31, 1993
----------------- -----------------
<S> <C> <C>
OPERATIONS:
Net investment income................................................................ $ 371,951 $ 253,690
----------------- -----------------
Net increase in net assets........................................................... 371,951 253,690
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income................................................................ (371,951) (253,690)
CAPITAL SHARE TRANSACTIONS:
Proceeds from Fund Shares sold (35,072,968 and 36,459,583 shares, respectively)...... 35,072,968 36,459,583
Net asset value of Fund shares issued upon reinvestment of dividends (369,629 and
252,531 shares, respectively)....................................................... 369,629 252,531
Cost of Fund Shares redeemed (35,262,478 and 38,691,800 shares, respectively)........ (35,262,478) (38,691,800)
----------------- -----------------
Net increase (decrease) in net assets resulting from capital share transactions...... 180,119 (1,979,686)
----------------- -----------------
Total increase (decrease) in net assets............................................ 180,119 (1,979,686)
NET ASSETS:
Beginning of period.................................................................. 11,503,613 13,483,299
----------------- -----------------
End of period........................................................................ $ 11,683,732 $ 11,503,613
----------------- -----------------
----------------- -----------------
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
- --------------------------------------------------------------------------------
<PAGE>
- --------------------------------------------------------------------------------
HARTFORD MONEY MARKET FUND, INC.
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1994
- --------------------------------------------------------------------------------
1. ORGANIZATION:
Hartford Money Market Fund, Inc., (the Fund) is registered under the
Investment Company Act of 1940, as amended, as a diversified, open-ended
management investment company. The Fund was organized under the laws of
the State of Maryland in February 1982, and commenced operations in June
1982.
2. SIGNIFICANT ACCOUNTING POLICIES:
The following is a summary of significant accounting policies of the Fund,
which are in accordance with generally accepted accounting principles in
the investment company industry:
a) SECURITY TRANSACTIONS--Security transactions are recorded on the trade
date (date the order to buy or sell is executed). Security gains and
losses are determined on the basis of identified cost.
b) SECURITY VALUATION--Investments are valued at amortized cost, which
approximates fair market value. Under the amortized cost method of
valuation, an instrument is valued by reference to the Fund's
acquisition cost as adjusted for amortization of premium or accretion
of discount.
c) REPURCHASE TRANSACTIONS--A repurchase agreement is an agreement by
which the seller of a security agrees to repurchase the security sold
at a mutually agreed upon time and price.
At the time the Fund enters into a repurchase agreement, the value of
the underlying collateral security(ies), including accrued interest,
will be equal to or exceed the value of the repurchase agreement and,
in the case of repurchase agreements exceeding one day, the value of
the underlying security(ies), including accrued interest, is required
during the term of the agreement to be equal to or exceed the value of
the repurchase agreement. Security(ies) which serve to collateralize
the repurchase agreement are held by the Fund's custodian in book
entry or physical form in the custodial account of the Fund.
Repurchase agreements are valued at cost plus accrued interest
receivable.
d) JOINT TRADING ACCOUNT--Pursuant to an exemptive order issued by the
Securities and Exchange Commission, the Fund may transfer uninvested
cash balances into a joint trading account managed by Hartford
Investment Management Company (HIMCO). These balances may be invested
in one or more repurchase agreements and/or short-term money market
instruments.
e) FEDERAL INCOME TAXES--For Federal income tax purposes, the Fund
intends to qualify as a regulated investment company under Subchapter
M of the Internal Revenue Code by distributing substantially all of
its taxable income to its shareholders and otherwise complying with
the requirements for regulated investment companies. Accordingly, no
provision for Federal income taxes has been made.
f) FUND SHARE VALUATION AND DIVIDEND DISTRIBUTION TO SHAREHOLDERS--Fund
shares are sold and redeemed on a continuing basis at net asset value.
Interest income and expenses are accrued on a daily basis. The Fund's
net asset value per share is determined as of 4:00 p.m., Eastern
Standard Time, on days the New York Stock Exchange is open for
trading. The Fund seeks to maintain a stable net asset value per share
of $1.00 by declaring a daily dividend from net investment income,
including net realized gains and losses, and by valuing its
investments using the amortized cost method. Dividends are distributed
monthly.
3. INVESTMENT ADVISORY AND ADMINISTRATIVE SERVICES AGREEMENTS:
a) INVESTMENT ADVISORY AGREEMENT--HIMCO, a wholly-owned subsidiary of
Hartford Life Insurance Company (HL), serves as investment adviser to
the Fund pursuant to an agreement approved by the Board of Directors
and shareholders.
Under the terms of the agreement, HIMCO is compensated at a maximum
annual fee of .25% of the Fund's average daily net assets.
b) ADMINISTRATIVE SERVICES AGREEMENT--HL provides administrative services
to the Fund and receives an annual fee equal to .175% of the Fund's
average daily net assets.
The Fund assumes and pays certain other expenses (including, but not
limited to, shareholder accounting fees, registration and directors'
fees.) These expenses are either directly attributable to the Fund or
are allocated based on the ratio of the net assets of the Fund to the
combined net assets of the eleven Hartford family of mutual funds.
Directors' fees represent remuneration paid or accrued to directors
not affiliated with HL or any other related company.
- --------------------------------------------------------------------------------
<PAGE>
- --------------------------------------------------------------------------------
HARTFORD MONEY MARKET FUND, INC.
STATEMENT OF NET ASSETS
DECEMBER 31, 1994
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
AMORTIZED
PRINCIPAL COST AND
AMOUNT VALUE
- ---------- -----------
<C> <S> <C>
COMMERCIAL PAPER -- 76.6%
$ 500,000 American Home Products
5.920% due 02/06/95............................. $ 496,958
500,000 American Honda Finance
5.620% due 01/09/95............................. 499,298
500,000 ANZ (Delaware) Inc.
5.010% due 01/20/95............................. 498,608
500,000 Bass Finance C.I. Ltd
6.250% due 03/06/95............................. 494,358
500,000 Canadian Wheat Board
5.030% due 02/15/95............................. 496,786
500,000 Dean Witter, Discover Card
5.500% due 01/05/95............................. 499,618
500,000 Fleet Financial Group
6.080% due 01/04/95............................. 499,662
500,000 General Motors Acceptance Corp
6.220% due 02/07/95............................. 496,717
500,000 Gillette Co.
5.700% due 02/06/95............................. 497,071
500,000 Greyhound Financial
5.720% due 01/11/95............................. 499,126
500,000 Honeywell Inc
5.450% due 02/13/95............................. 496,669
500,000 Nationwide Building Society
5.250% due 03/21/95............................. 494,167
500,000 Northern Indiana Public
5.950% due 01/30/95............................. 497,521
500,000 Nynex Corp
5.670% due 02/03/95............................. 497,323
500,000 Sharp Electronics Corp
6.300% due 04/07/95............................. 491,513
500,000 Tambrands Inc
5.050% due 01/17/95............................. 498,808
500,000 Whirlpool Corp
5.480% due 01/23/95............................. 498,248
500,000 Zeneca, Inc
5.500% due 01/23/95............................. 498,243
-----------
$ 8,950,694
-----------
<CAPTION>
AMORTIZED
PRINCIPAL COST AND
AMOUNT VALUE
- ---------- -----------
<C> <S> <C>
NON-CONVERTIBLE CORPORATE BONDS -- 12.8%
$ 500,000 Abbey National Treasury
5.540% due 11/16/95............................. $ 499,661
500,000 First National Bank of Boston
5.690% due 02/22/95............................. 500,000
500,000 MBNA America Bank Notes
5.650% due 03/21/95............................. 500,000
-----------
$ 1,499,661
-----------
REPURCHASE AGREEMENT -- 13.2%
$1,537,000 Interest in joint repurchase agreement dated
12/30/94 with Shawmut Bank
5.950% due 01/03/95
maturity amount $1,538,016
(Collateralized by $96,165,000 U.S. Treasury
Note 4.250% due 11/30/95)....................... $ 1,537,000
-----------
Total short-term securities....................... $11,987,355
-----------
-----------
</TABLE>
<TABLE>
<S> <C> <C>
DIVERSIFICATION OF ASSETS:
Total investment in securities
*(Identified cost of $11,987,355)............... 102.6% $11,987,355
Excess of liabilities over cash and receivables... (2.6) (303,623)
----- -----------
Net Assets (Applicable to $1.00 per share
based on 11,683,732 shares outstanding)......... 100.0% $11,683,732
----- -----------
----- -----------
SUMMARY OF SHAREHOLDERS' EQUITY:
Capital stock, par value $.10 per share; authorized
500,000,000 shares; outstanding 11,683,732 shares...... $ 1,168,373
Capital surplus.......................................... 10,515,359
-----------
Net assets, applicable to shares outstanding............. $11,683,732
-----------
-----------
* Aggregate cost for Federal income tax purposes.
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
<PAGE>
PART C
OTHER INFORMATION
ITEM 24. FINANCIAL STATEMENTS AND EXHIBITS
(a) Financial statements: Incorporated by reference to Parts A and B of this
Post-Effective Amendment #15 to the Registration Statement.
(b) Exhibits: Exhibits (1), (4), (8), and (10) to be filed by amendment.
Exhibit (5), Investment Advisory Agreement, to be filed by amendment.
Exhibit (2) Amended Bylaws of Hartford Money Market Fund, Inc. to be
filed by amendment.
Exhibit (8) Form of Custodian Agreement to be filed by amendment.
Exhibit 9(a) and (b) the Administrative Services Agreement and Share
Purchase Agreement, to be filed by amendment.
Exhibit (11) Consent of Arthur Andersen LLP is filed herewith.
Exhibit (16) Schedule of Performance Data is filed herewith.
<PAGE>
SIGNATURES
As required by the Securities Act of 1933 and the Investment Company Act of
1940, the Rgistrant certifies that it meets all the requirements for
effectiveness of this Registration Statement pursuant to Rule 485(b) under
the Securities Act of 1933 and duly caused this Registration Statement to be
signed on its behalf, in the City of Hartford, and State of Connecticut on
this 2nd day of May, 1995.
HARTFORD MONEY MARKET FUND, INC.
* Joseph H. Gareau
President
By: --------------------------------
Bruce D. Gardner
Attorney-in-Fact
Pursuant to the requirements of the Securities Act of 1933 to the
Registration Statement has been signed below by the following persons in the
capacities and on the date indicated.
Joseph H. Gareau*, President (Chief Executive Officer)
George R. Jay,* Comptroller (Chief Accounting Officer)
Donald E. Waggaman, Jr.*, Treasurer (Chief Financial Officer)
Joseph A. Biernat*, Director
William A. O'Neill*, Director
Millard H. Pryor, Jr.*, Director
Lowndes A. Smith*, Director
John K. Springer*, Director
(A Majority of the Directors)
By: ----------------------------
Bruce D. Gardner
Attorney-in-Fact
Dated: May 2, 1995
<PAGE>
Exhibit 11
ARTHUR ANDERSEN LLP
CONSENT OF INDEPENDENT PUBLIC ACCOUNTANTS
As independent public accountants, we hereby consent to the use of our
reports (and to all references to our Firm) includied in or made or part of
this Registration Statement File No. 2-76350 on Form N-4 for Hartford Life
Insurance Company.
ARTHUR ANDERSEN LLP
Hartford, Connecticut
April 21, 1995
<PAGE>
EXHIBIT 16
Explanation of Yield and Effective Yield Calculation
The following is an example of this yield calculation for the Fund based on
seven day period ending December 31, 1994.
Assumptions:
Value of a hypothetical pre-existing account with exactly one share at the
beginning of the period: $1.000000000
Value of the same account* (excluding capital changes) at the end of the
seven day period: $0.000776000
*This value would include the value of any additional shares purchased with
dividends from the original share, and all dividends declared on both the
original share and any such additional shares.
Calculation:
<TABLE>
<S> <C>
Ending account value........ $ 1.000776000
Less beginning account
value....................... $ 1.000000000
-------------
Net change in account
value....................... $ 0.000776000
</TABLE>
Base period return:
<TABLE>
<S> <C>
(adjusted change/beginning account value) $0.000776000
------------
$0.000776000/1.000000000 =
Current yield = $0.000776000 x (365/7) = 4.05%
Effective Yield = (1 + 0.000776000) 365/7 - 1 = 4.13%
</TABLE>
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 6
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1994
<PERIOD-END> DEC-31-1994
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<INVESTMENTS-AT-VALUE> 11,987,355
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</TABLE>
