<PAGE>
As filed with the Securities and Exchange Commission on April 23, 1996
File No. 2-76350
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. 16 / X /
and/or
REGISTRATION STATEMENT UNDER THE INVESTMENT COMPANY ACT OF 1940 / X /
Amendment No. 16 / X /
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 1, 1996 pursuant to paragraph (b) of Rule 485
____
____ 60 days after filing pursuant to paragraph (a)(1) of Rule 485
____ on_________ 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
<PAGE>
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 29, 1996.
<PAGE>
HARTFORD MONEY MARKET FUND
CROSS REFERENCE SHEET
PURSUANT TO RULE 481(A)
<TABLE>
<CAPTION>
N-1A Item No. Prospectus Location
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<S> <C>
PART A
1. Cover Page Cover Page
2. Synopsis Inapplicable
3. Condensed Financial Information Fund Operating Expenses; Fee Table;
Financial Highlights
4. General Description of Registrant Investment Objective of the Fund;
Investment Policies of the Fund.
5. Management of the Fund Management of the Fund; Administrative
Services for the Fund; Expenses of the Fund.
5A. Management's Discussion of Fund Annual Report to Shareholders
Performance
6. Capital Stock and Other Securities Organization and Capitalization of
the Fund; Dividends; Federal Income Taxes.
7. Purchase of Securities Being Offered Net Asset Value; Purchase of Fund Shares
8. Redemption or Repurchase Redemptions of Fund Shares; Mandatory Redemption.
9. Pending Legal Proceedings Pending Legal Proceedings
</TABLE>
<PAGE>
<TABLE>
<S> <C>
PART B Statement of Additional Information Location
--------------------------------------------
10. Cover Page Cover Page
11. Table of Contents Table of Contents
12. General Information and History Inapplicable
13. Investment Objectives and Policies Investment Objectives of the Fund;
Investment Restrictions of the Fund
14. Management of the Fund Management of the Fund
15. Control Persons and Principal Control Persons and Principal Holders
Holders of Securities of Securities
16. Investment Advisory and Other Services Management of the Fund
17. Brokerage Allocation and Other Portfolio Brokerage
Practices
18. Capital Stock and Other Securities Ownership and Capitalization of the Funds
(Prospectus)
19. Purchase Redemption and Pricing of Purchase of Fund Shares (Prospectus)
Securities Being Offered
20. Tax Status Federal Income Taxes (Prospectus)
21. Underwriters Sale and Redemption of Fund Shares
(Prospectus)
22. Calculations of Performance Data Performance Comparisons
23. Financial Statements Financial Statements
</TABLE>
PART C
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.
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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
BY REFERENCE TO THIS PROSPECTUS.
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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.
THERE 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 1, 1996
Statement of Additional Information Dated: May 1, 1996
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<PAGE>
2 HARTFORD MONEY MARKET FUND, INC.
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TABLE OF CONTENTS
<TABLE>
<CAPTION>
PAGE
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<S> <C>
THE FUND.............................................................. 3
FUND OPERATING EXPENSES FEE TABLE..................................... 3
FINANCIAL HIGHLIGHTS.................................................. 4
PERFORMANCE RELATED INFORMATION....................................... 5
INVESTMENT OBJECTIVE OF THE FUND...................................... 5
INVESTMENT POLICIES OF THE FUND....................................... 5
MANAGEMENT OF THE FUND................................................ 6
INVESTMENT ADVISORY SERVICES.......................................... 6
PORTFOLIO BROKERAGE................................................... 7
ADMINISTRATIVE SERVICES FOR THE FUND.................................. 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.................................................. 8
PURCHASE OF FUND SHARES............................................... 9
REDEMPTIONS OF FUND SHARES............................................ 10
MANDATORY REDEMPTIONS................................................. 11
INVESTMENT PLANS...................................................... 11
DISTRIBUTOR........................................................... 12
ORGANIZATION AND CAPITALIZATION OF THE FUND........................... 12
PENDING LEGAL PROCEEDINGS............................................. 12
APPENDIX.............................................................. 13
</TABLE>
<PAGE>
HARTFORD MONEY MARKET FUND, INC. 3
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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 OPERATION EXPENSES FEE TABLE
The expenses of the Fund are detailed in the following tables.
<TABLE>
<CAPTION>
Contractowner Transaction Expenses
<S> <C>
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)
Management Fees........................................................... 0.425%
12b-1 Fees................................................................ 0.000%
Other Expenses............................................................ 1.165%
-----
Total Fund Operating Expenses............................................. 1.590%
</TABLE>
Example
<TABLE>
<CAPTION>
1 YEAR 3 YEARS
----------- -----------
<S> <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........................................................ $ 16 $ 51
You would pay the following expenses on the same investment, assuming no redemption............... $ 16 $ 51
<CAPTION>
5 YEARS 10 YEARS
----------- -----------
<S> <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........................................................ $ 87 $ 190
You would pay the following expenses on the same investment, assuming no redemption............... $ 87 $ 190
</TABLE>
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.
<PAGE>
4 HARTFORD MONEY MARKET FUND, INC.
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FINANCIAL HIGHLIGHTS
The following information, insofar as it relates to each of the five years
in the period ended December 31, 1995, has been audited by Arthur Andersen LLP,
independent public accountants, whose report thereon is included in the
Statement of Additional Information, which is incorporated by reference to this
prospectus.
<TABLE>
<CAPTION>
(FOR A SHARE OUTSTANDING THROUGHOUT THE INDICATED PERIOD)
-----------------------------------------------------------------------------------------
YEAR YEAR YEAR YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED ENDED ENDED ENDED
12/31/95 12/31/94 12/31/93 12/31/92 12/31/91 12/31/90 12/31/89
----------- ----------- ----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C> <C>
Net asset value at beginning of
period............................ $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
Net investment income.............. 0.044 0.027 0.018 0.024 0.049 0.069 0.079
Net realized and unrealized gains
(losses) on investments........... 0.000 0.000 0.000 0.000 0.000 0.000 0.000
----------- ----------- ----------- ----------- ----------- ----------- -----------
Total from investment operations... 0.044 0.027 0.018 0.024 0.049 0.069 0.079
Dividends from net investment
income............................ (0.044) (0.027) (0.018) (0.024) (0.049) (0.069) (0.079)
Distribution from net realized
gains on securities............... 0.000 0.000 0.000 0.000 0.000 0.000 0.000
Return of capital.................. 0.000 0.000 0.000 0.000 0.000 0.000 0.000
----------- ----------- ----------- ----------- ----------- ----------- -----------
Total from distributions........... (0.044) (0.027) (0.018) (0.024) (0.049) (0.069) (0.079)
----------- ----------- ----------- ----------- ----------- ----------- -----------
Net increase (decrease) in net
assets............................ 0.000 0.000 0.000 0.000 0.000 0.000 0.000
Net asset value at end of period... $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
----------- ----------- ----------- ----------- ----------- ----------- -----------
----------- ----------- ----------- ----------- ----------- ----------- -----------
Total Return....................... 4.52% 2.77% 1.88% 2.47% 4.99% 7.11% 8.13%
Net Assets (in thousands).......... 12,089 11,684 11,504 13,483 13,866 15,359 18,028
Ratio of operating expenses to
average net assets................ 1.59% 1.61% 1.54% 1.63% 1.55% 1.52% 1.50%
Ratio of net investment income to
average
net asset......................... 4.43% 2.72% 1.82% 2.44% 4.92% 6.89% 7.92%
<CAPTION>
YEAR YEAR YEAR
ENDED ENDED ENDED
12/31/88 12/31/87 12/31/86
----------- ----------- -----------
<S> <C> <C> <C>
Net asset value at beginning of
period............................ $ 1.000 $ 1.000 $ 1.000
Net investment income.............. 0.063 0.056 0.059
Net realized and unrealized gains
(losses) on investments........... 0.000 0.000 0.000
----------- ----------- -----------
Total from investment operations... 0.063 0.056 0.059
Dividends from net investment
income............................ (0.063) (0.056) (0.059)
Distribution from net realized
gains on securities............... 0.000 0.000 0.000
Return of capital.................. 0.000 0.000 0.000
----------- ----------- -----------
Total from distributions........... (0.063) (0.056) (0.059)
----------- ----------- -----------
Net increase (decrease) in net
assets............................ 0.000 0.000 0.000
Net asset value at end of period... $ 1.000 $ 1.000 $ 1.000
----------- ----------- -----------
----------- ----------- -----------
Total Return....................... 6.53% 5.71% 6.07%
Net Assets (in thousands).......... 19,928 19,809 21,708
Ratio of operating expenses to
average net assets................ 1.34% 1.31% 1.21%
Ratio of net investment income to
average
net asset......................... 6.33% 5.60% 5.83%
</TABLE>
<PAGE>
HARTFORD MONEY MARKET FUND, INC. 5
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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.
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 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
<PAGE>
6 HARTFORD MONEY MARKET FUND, INC.
- --------------------------------------------------------------------------------
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 and/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.)
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 $100 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.
All investment policies are non-fundamental and can be changed by the
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 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
<PAGE>
HARTFORD MONEY MARKET FUND, INC. 7
- --------------------------------------------------------------------------------
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 1995, this amounted to $32,031 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.
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 1995, the Fund paid to HL $22,422 or .175% of the Fund's average net
assets.
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 Securities and Exchange 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 the annual and all special 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 1995 were $204,206, or
1.59% 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 shareholders against possible depreciation of their assets. The fees of
State Street Bank and Trust Company and Chase Manhattan Bank are paid by the
Fund and thus borne by the Fund's shareholders. State Street Bank and Trust
Company 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.
<PAGE>
8 HARTFORD MONEY MARKET FUND, INC.
- --------------------------------------------------------------------------------
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.
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, 1995
was 4.70%.
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 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 under
reporting to the IRS.
<PAGE>
HARTFORD MONEY MARKET FUND, INC. 9
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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. 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 and Trust Company,
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.
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 of Kansas City 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 of Kansas City. 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 the United Missouri Bank of Kansas City 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 of Kansas City 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.
<PAGE>
10 HARTFORD MONEY MARKET FUND, INC.
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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.
No stock certificates will be issued by the Fund unless specifically
requested in writing by a purchaser. Such request should be directed to the
transfer agent, 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,") 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"). 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 the 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 the State Street Bank for payment, a
sufficient number of full and fractional shares in his 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. Canceled 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 his 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.
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 his bank has a correspondent bank
that is a member of the System. A shareholder may change his 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.
<PAGE>
HARTFORD MONEY MARKET FUND, INC. 11
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BY MAIL
A shareholder may redeem any amount from his 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., State Street
Bank and Trust Company, 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. Shareholders 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 Securities and Exchange 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.
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
<PAGE>
12 HARTFORD MONEY MARKET FUND, INC.
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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".) 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.
MASTER ACCOUNT RECORD SERVICES
State Street Bank provides a Master Account Record service for plans that
require record keeping 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. ("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.
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.
<PAGE>
HARTFORD MONEY MARKET FUND, INC. 13
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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.
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.
<PAGE>
14 HARTFORD MONEY MARKET FUND, INC.
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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. Capitalization 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.
<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 1, l996
Date of Statement of Additional Information: May 1, 1996
<PAGE>
-2-
TABLE OF CONTENTS Page
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INVESTMENT OBJECTIVE OF THE FUND . . . . . . . . . . . . . . . . . . .
INVESTMENT RESTRICTIONS OF THE FUND. . . . . . . . . . . . . . . . . .
PORTFOLIO TURNOVER . . . . . . . . . . . . . . . . . . . . . . . . . .
MANAGEMENT OF THE FUND . . . . . . . . . . . . . . . . . . . . . . . .
INVESTMENT ADVISORY AND OTHER SERVICES . . . . . . . . . . . . . . . .
CUSTODIAN AND TRANSFER AGENT . . . . . . . . . . . . . . . . . . . . .
INDEPENDENT PUBLIC ACCOUNTANTS . . . . . . . . . . . . . . . . . . . .
PORTFOLIO BROKERAGE. . . . . . . . . . . . . . . . . . . . . . . . . .
UNDERWRITER. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
COMPUTATION OF NET ASSET VALUE . . . . . . . . . . . . . . . . . . . .
DIVIDENDS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
CALCULATION OF TOTAL RETURN AND YIELD. . . . . . . . . . . . . . . . .
FINANCIAL STATEMENTS . . . . . . . . . . . . . . . . . . . . . . . . .
<PAGE>
-3-
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. (See,
"Investment Policies," in the prospectus for risk factors.)
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.
<PAGE>
-4-
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%.
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.
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 Investment Company Act of l940, as
amended, 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.
Name, Address, Age and Position with the Company
- ------------------------------------------------
JOSEPH ANTHONY BIERNAT (age 68)
Director
30 Hurdle Fence Drive
Avon, CT 06001
Mr. Biernat served as Senior Vice President and Treasurer of United
Technologies Corporation
<PAGE>
-5-
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.
WINIFRED ELLEN COLEMAN (age 63)
Director
27 Buckingham Lane
West Hartford, CT 06117
Ms. Coleman has served as President of Saint Joseph College since 1991.
JAMES CUBANSKI (age 36)
Assistant Secretary
Hartford Plaza
Hartford, CT 06115
Mr. Cubanski has served as Director of Tax Administration of ITT Hartford
Insurance Group since July, 1995. Formerly he served as Director of Federal
Tax Administration (July, 1993 -July, 1995) and Manager of Federal Taxes
(February, 1991 - July, 1993).
PETER CUMMINS (age 58)
Vice President
Hartford Plaza
Hartford, CT 06115
Mr. Cummins has been Vice President of sales and marketing of the Individual
Life and Annuity Division of ITT Hartford Insurance Group-Life Companies
since 1989.
JOSEPH HARRY GAREAU* (age 48)
Director and President
P.O. Box 2999
Hartford, CT 06104-2999
Mr. Gareau has served as Executive Vice President and Chief Investment
Officer of ITT Hartford Insurance Group since 1993. Formerly, he served as
Senior Vice President (September, 1992 -April, 1993) and Vice President
(October, 1987 - September, 1992). Mr. Gareau is also a Director and the
President of HIMCO.
JAMES RICHARD GARRETT (age 50)
Vice President and Treasurer
Hartford Plaza
Hartford, CT 06115
Mr. Garrett has served as a Vice President of ITT Hartford Insurance Group
since 1989 and as Treasurer since 1983. Mr. Garrett is also the Treasurer of
HIMCO.
<PAGE>
-6-
JOHN PHILLIP GINNETTI (51)
Vice President
P.O. Box 2999
Hartford, CT 06104-2999
Mr. Ginnetti has served as Executive Vice President and Director of Asset
Management Services, a division of ITT Hartford Insurance Group-Life
Companies, since 1994. From 1988 to 1994 he served as Senior Vice President
and Director of the Individual Life and Annuities Division, also a division
of ITT Hartford Insurance Group-Life Companies.
GEORGE RICHARD JAY (age 43)
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.
ANDREW WILLIAM KOHNKE (age 37)
Vice President
P.O. Box 2999
Hartford, CT 06104-2999
Mr. Kohnke has served as a Vice President since 1992, and as an Investment
Manager since 1983, of the ITT Hartford Insurance Group-Life Companies. Mr.
Kohnke is also a Director and Managing Director of HIMCO.
THOMAS MICHAEL MARRA (age 37)
Vice President
P.O. Box 2999
Hartford, CT 06104-2999
Mr. Marra has served as Executive Vice President since 1996, Senior Vice
President since 1994, and as Director of the Individual Life and Annuity
Division of ITT Hartford Insurance Group-Life Companies, since 1980.
CHARLES MINER O'HALLORAN (49)
Vice President, Secretary and General Counsel
Hartford Plaza
Hartford, CT 06115
Mr. O'Halloran has served as Corporate Secretary since 1996, Vice President
since December, 1994, and as Senior Associate General Counsel since 1988, of
ITT Hartford Insurance Group. Mr. O'Halloran is also a Director, Secretary
and General Counsel of HIMCO.
WILLIAM ATCHISON O'NEILL (age 65)
Director
Box 360
<PAGE>
-7-
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. (age 62)
Director
90 State House Square
Hartford, CT 06103
Mr. Pryor has served as Managing Director of Pryor & Clark Company, Hartford,
Connecticut, since June, 1992. 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* (age 56)
Director and Chairman
P.O. Box 2999
Hartford, CT 06104-2999
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.
JOHN KELLEY SPRINGER (age 64)
Director
55 Farmington Avenue
Hartford, CT 06105
Mr. Springer has served as Chief Executive Officer of Connecticut Health
System, Inc., a hospital holding company, since 1989. Formerly, he served as
the Chief Executive Officer of Hartford Hospital, Hartford, Connecticut.
An Audit Committee and Nominating Committee have been appointed for the
Company. Each Committee is made up of those directors who are not "interested
persons" of the Company.
All Board members and officers of the Fund are also board members and
officers of the following registered investment companies: Hartford Capital
Appreciation Fund, Inc., Hartford Dividend and Growth Fund, Inc., Hartford
Stock Fund, Inc., Hartford Index Fund, Inc., Hartford Advisers Fund, Inc.,
Hartford Mortgage Securities Fund, Inc., Hartford Bond Fund, Inc., Hartford
International Opportunities Fund, Inc., Hartford International Advisers Fund,
Inc., Hartford U.S. Government Money Market Fund, Inc., HVA Money Market
Fund, Inc. and the Hartford Small Company Fund, Inc. Shares of each of
these investment companies are offered to and may only be purchased by
holders of variable annuity and variable Life insurance contracts issued by
ITT Hartford and its affiliates. Each of the Directors and principal
officers affiliated with the Fund who is also an affiliated person of HIMCO
or Wellington Management is named above, together with the capacity in which
such person is affiliated with the Fund, HIMCO or Wellington Management.
<PAGE>
-8-
COMPENSATION OF OFFICERS AND DIRECTORS. The Company pays no salaries
or compensation to any of its officers or directors affiliated with ITT
Hartford. The chart below sets forth the fees paid by the Company to the
non-interested Directors for the most recently completed fiscal year:
<TABLE>
<CAPTION>
JOSEPH A. WINIFRED E. WILLIAM A. MILLARD H. JOHN K.
BIERNAT COLEMAN O'NEILL PRYOR SPRINGER
<S> <C> <C> <C> <C> <C>
TOTAL COMPENSATION
FROM COMPANY AND
COMPLEX PAID TO
DIRECTORS $18,000 $13,500 $18,000 $16,000 $16,000
</TABLE>
___________
As of December 31, 1995, there were twelve funds in the Complex
(including the Company).
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 HL and has been organized under
the laws of the State of Connecticut. All of the outstanding shares of HL
are owned by 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 of the Funds are also officers and directors of
HIMCO; Joseph H. Gareau, President and a Director of the Company, is a
Director and the President of HIMCO; Andrew W. Kohnke, Vice President of the
Company, is a Managing Director and Director of HIMCO; J. Richard Garrett,
Vice President and Treasurer of the Company, is the Treasurer of HIMCO; and
Charles M. O'Halloran, Vice President, Secretary and General Counsel of the
Company, is a Director, Secretary and General Counsel of HIMCO.
FEES
The investment advisory fee payable by the Fund is equal to an annual
rate of .25 of 1% of
<PAGE>
-9-
the Fund's average daily net asset value.
Advisory Fees for the three most recent fiscal years were:
1995 1994 1993
---- ---- ----
$32,031 $34,162 $34,829
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").
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.
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.
Administration Fees for the last three fiscal years were:
<PAGE>
-10-
1995 1994 1993
---- ---- ----
$22,422 $23,913 $25,059
CUSTODIAN AND TRANSFER AGENT
Chase Manhattan Bank, N.A., New York, New York serves as Custodian of the
Fund's assets and 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. The Custodian maintains actual custody of the securities
of the Fund. The Transfer Agent issues and redeems shares of the Fund. The
Custodian is not involved in determining investment policies of the Fund or
its portfolio securities transactions. Its services do not protect
shareholders against possible depreciation of their assets. The fees of
Chase Manhattan Bank and State Street Bank and Trust Company are paid by the
Fund and thus borne by the Fund's shareholders. State Street Bank and Trust
Company has contracted with National Financial Data Services to serve as
shareholder servicing agent. They have also established a depository account
at United Missouri Bank of Kansas City through which all payments for Fund
shares will be processed.
INDEPENDENT PUBLIC ACCOUNTANTS
The financial statements included in this SAI and financial highlights
included in the 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 giving such reports.
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 U.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
<PAGE>
-11-
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 Principal Underwriting Agreement.
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.
DIVIDENDS
The net asset value of the Fund's shares will be determined as described
under "Computation of Net Asset Value". 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 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.
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.
<PAGE>
-12-
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, 1995.
<PAGE>
-13-
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: $0.000881000
*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:
Ending account value $1.000881000
Less beginning account value $1.000000000
------------
Net change in account value $0.000881000
Base period return:
(adjusted change/beginning account value) $0.000881000
$0.000881000/1.000000000 = ------------
Current yield = $0.000881000 x (365/7) = 4.59%
Effective Yield = (1 + 0.000881000) 365/7 = 4.70%
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.
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 or some other relevant
periods if a Fund has not been in existence for at least ten years.
<PAGE>
-14-
PERFORMANCE COMPARISONS
YIELD AND TOTAL RETURN. The Fund may from time to time include its yield
and total return in advertisements or information furnished to present or
prospective shareholders. The Fund may also compare itself to other Funds
with similar investment objectives by way of rankings developed by
unaffiliated third parties such as Lipper Analytical Services.
<PAGE>
-15-
AVERAGE ANNUAL TOTAL RETURN as of December 31, 1995
Inception
Date 1 Year 5 year 10 Year
Hartford Money Market Fund 06/01/82 4.52% 3.32% 5.00%
NOTE: Average annual total return assumes a hypothetical initial payment of
$1,000. At the end of each period, a total withdrawal is assumed. Then,
the ending account value is divided by the original payment to calculate
total return.
<PAGE>
-16-
FINANCIAL STATEMENTS
The Fund's audited financial statements as of December 31, 1995, together
with the notes thereto and the report of Arthur Andersen, LLP are attached to
this SAI.
kc/variable/mmfpro96.pro
<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 #16 to the Registration Statement.
(b) Exhibits: Exhibits (1) and (4) are incorporated by reference to
Part C of Post-Effective Amendment #3 filed on March 6, 1984.
Exhibit (2) Amended Bylaws of Hartford Money Market Fund, Inc. is
incorporated by reference to Part C of Post-Effective Amendment
No. 8 filed in 1988.
Exhibit (5), Investment Advisory Agreement, is incorporated by
reference to the Proxy Statement dated September 19, 1984.
Exhibit (8) Form of Custodian Agreement is incorporated by reference
to Part C of Post-Effective Amendment No. 5 filed on February 28,
1985.
Exhibit (8.1) Form of Custodian Agreement with Chase Manhattan Bank
is filed herewith.
Exhibit 9(a) and (b) the Administrative Services Agreement and Share
Purchase Agreements, are incorporated by reference to Part C of Post
Effective Amendment No. 10 filed on April 27, 1990.
Exhibit (10) Opinion and Consent of Counsel was filed with
Registrant's Rule 24f-2 Notice on February 29, 1996.
Exhibit (11) Consent of Arthur Andersen LLP is filed herewith.
Exhibit (12) Annual Report to Shareholders is filed herewith.
Exhibit (16) Schedule of Performance Data is incorporated by reference
to Post-Effective Amendment No. 15.
Exhibit (17) Power of Attorney filed herewith.
<PAGE>
Exhibit (27) Financial Data Schedule for the period ended
December 31, 1995 is filed herewith.
Items 25 through 29 and Item 31 are incorporated by reference to Part C of
Post-Effective Amendment No. 3 filed on March 6, 1984.
Item 30. LOCATION OF ACCOUNTS & RECORDS
The Hartford Life Insurance Company
P.O. Box 2999
Hartford, CT 06104-2999
The Chase Manhattan Bank, N.A.
Chase MetroTech Center
Brooklyn, NY 11245
National Financial Data Services
P.O. Box 26070
Kansas City, MO 64196
Item 32. UNDERTAKING
The Registrant undertakes to furnish to each person to whom a
prospectus has been delivered a copy of the Registrant's latest
annual report to shareholders, upon request and without charge.
<PAGE>
SIGNATURES
As required by the Securities Act of 1933 and the Investment Company Act of
1940, the Registrant 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 15th day of April, 1996.
HARTFORD MONEY MARKET FUND, INC.
* Joseph H. Gareau
President
By: /s/ Michael O'Halloran
-----------------------------------
Michael O'Halloran
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)
J. Richard Garrett*, Treasurer (Chief Financial Officer)
Joseph A. Biernat*, Director
Winifred E. Coleman*, 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: /s/ Michael O'Halloran
------------------------------
Michael O'Halloran
Attorney-in-Fact
Dated: April 15, 1996
<PAGE>
EXHIBIT INDEX
Exhibit No. Page No.
----------- --------
8.1 Form of Custodian Agreement with Chase
Manhattan Bank
11 Consent of Arthur Andersen LLP
12 Annual Report to Shareholders
19 Power of Attorney
27 Financial Data Schedule
<PAGE>
EXHIBIT 8.1
GLOBAL CUSTODY AGREEMENT
This AGREEMENT is effective ___________________, 19___, and is between
THE CHASE MANHATTAN BANK, N.A. (the "Bank") and ITT HARTFORD INSURANCE GROUP
(the "Customer").
1. CUSTOMER ACCOUNTS.
The Bank agrees to establish and maintain the following accounts
("Accounts"):
(a) A custody account in the name of the Customer ("Custody Account")
for any and all stocks, shares, bonds, debentures, notes, mortgages or other
obligations for the payment of money, bullion, coin and any certificates,
receipts, warrants or other instruments representing rights to receive,
purchase or subscribe for the same or evidencing or representing any other
rights or interests therein and other similar property whether certificated
or uncertificated as may be received by the Bank or its Subcustodian (as
defined in Section 3) for the account of the Customer ("Securities"); and
(b) A deposit account in the name of the Customer ("Deposit Account")
for any and all cash in any currency received by the Bank or its Subcustodian
for the account of the Customer, which cash shall not be subject to
withdrawal by draft or check.
The Customer warrants its authority to: (1) deposit the cash and
Securities ("Assets") received in the Accounts and (2) give Instructions (as
defined in Section 11) concerning the Accounts. The Bank may deliver
securities of the same class in place of those deposited in the Custody
Account.
Upon written agreement between the Bank and the Customer, additional
Accounts may be established and separately accounted for as additional
Accounts under the terms of this Agreement.
2. MAINTENANCE OF SECURITIES AND CASH AT BANK AND SUBCUSTODIAN LOCATIONS.
Unless Instructions specifically require another location acceptable to
the Bank:
(a) Securities will be held in the country or other jurisdiction in
which the principal trading market for such Securities is located, where such
Securities are to be presented for payment or where such Securities are
acquired; and
(b) Cash will be credited to an account in a country or other
jurisdiction in which such cash may be legally deposited or is the legal
currency for the payment of public or private debts.
Cash may be held pursuant to Instructions in either interest or
non-interest bearing accounts as may be available for the particular
currency. To the extent Instructions are issued and the Bank can comply with
such Instructions, the Bank is authorized to maintain cash balances on
deposit for the Customer with itself or one of its affiliates at such
reasonable rates of interest as may from time to time be paid on such
accounts, or in non-interest bearing accounts as the Customer may direct, if
acceptable to the Bank.
If the Customer wishes to have any of its Assets held in the custody of
an institution other than the established
<PAGE>
Subcustodians as defined in Section 3 (or their securities depositories),
such arrangement must be authorized by a written agreement, signed by the
Bank and the Customer.
3. SUBCUSTODIANS AND SECURITIES DEPOSITORIES.
The Bank may act under this Agreement through the subcustodians listed
in Schedule A of this Agreement with which the Bank has entered into
subcustodial agreements ("Subcustodians"). The Customer authorizes the Bank
to hold Assets in the Accounts in accounts which the Bank has established
with one or more of its branches or Subcustodians. The Bank and
Subcustodians are authorized to hold any of the Securities in their account
with any securities depository in which they participate.
The Bank reserves the right to add new, replace or remove Subcustodians.
The Customer will be given reasonable notice by the Bank of any amendment to
Schedule A. Upon request by the Customer, the Bank will identify the name,
address and principal place of business of any Subcustodian of the Customer's
Assets and the name and address of the governmental agency or other
regulatory authority that supervises or regulates such Subcustodian.
4. USE OF SUBCUSTODIAN.
(a) The Bank will identify such Assets on its books as belonging to the
Customer.
(b) A Subcustodian will hold such Assets together with assets belonging
to other customers of the Bank in accounts identified on such Subcustodian's
books as special custody accounts for the exclusive benefit of customers of
the Bank.
(c) Any Assets in the Accounts held by a Subcustodian will be subject
only to the instructions of the Bank or its agent. Any Securities held in a
securities depository for the account of a Subcustodian will be subject only
to the instructions of such Subcustodian.
(d) Any agreement the Bank enters into with a Subcustodian for holding
its customer's assets shall provide that such assets will not be subject to
any right, charge, security interest, lien or claim of any kind in favor of
such Subcustodian except for safe custody or administration, and that the
beneficial ownership of such assets will be freely transferable without the
payment of money or value other than for safe custody or administration. The
foregoing shall not apply to the extent of any special agreement or
arrangement made by the Customer with any particular Subcustodian.
5. DEPOSIT ACCOUNT TRANSACTIONS.
(a) The Bank or its Subcustodians will make payments from the Deposit
Account upon receipt of Instructions which include all information required
by the Bank.
(b) In the event that any payment to be made under this Section 5
exceeds the funds available in the Deposit Account, the Bank, in its
discretion, may advance the Customer such excess amount which shall be deemed
a loan payable on demand, bearing interest at the rate customarily charged by
the Bank on similar loans.
(c) If the Bank credits the Deposit Account on a payable date, or at
any time prior to actual collection and reconciliation to the Deposit
Account, with interest, dividends, redemptions or any other amount due, the
Customer will promptly return any such amount upon oral or written
notification: (i) that such amount has not been received in the ordinary
course of business or (ii) that such amount was incorrectly credited. If the
Customer does not promptly return any amount upon such notification, the Bank
shall be entitled, upon oral or written notification to the Customer, to
reverse such credit by debiting the Deposit Account for the amount previously
credited. The Bank or its Subcustodian shall have no duty or obligation to
institute legal proceedings, file a claim or a proof of claim in any
insolvency proceeding or take any other action with respect to the collection
of such amount, but may act for the Customer upon Instructions after
consultation with the Customer.
6. CUSTODY ACCOUNT TRANSACTIONS.
(a) Securities will be transferred, exchanged or delivered by the Bank
or its Subcustodian upon receipt by the Bank of Instructions which include
all information required by the Bank. Settlement and payment for Securities
received for, and delivery of Securities out of, the Custody Account may be
made in accordance with the customary or established securities trading or
<PAGE>
securities processing practices and procedures in the jurisdiction or market
in which the transaction occurs, including, without limitation, delivery of
Securities to a purchaser, dealer or their agents against a receipt with the
expectation of receiving later payment and free delivery. Delivery of
Securities out of the Custody Account may also be made in any manner
specifically required by Instructions acceptable to the Bank.
(b) The Bank, in its discretion, may credit or debit the Accounts on a
contractual settlement date with cash or Securities with respect to any sale,
exchange or purchase of Securities. Otherwise, such transactions will be
credited or debited to the Accounts on the date cash or Securities are
actually received by the Bank and reconciled to the Account.
(i) The Bank may reverse credits or debits made to the Accounts in
its discretion if the related transaction fails to settle within a
reasonable period, determined by the Bank in its discretion, after the
contractual settlement date for the related transaction.
(ii) If any Securities delivered pursuant to this Section 6 are
returned by the recipient thereof, the Bank may reverse the credits and
debits of the particular transaction at any time.
7. ACTIONS OF THE BANK.
The Bank shall follow Instructions received regarding assets held in the
Accounts. However, until it receives Instructions to the contrary, the Bank
will:
(a) Present for payment any Securities which are called, redeemed or
retired or otherwise become payable and all coupons and other income items
which call for payment upon presentation, to the extent that the Bank or
Subcustodian is actually aware of such opportunities.
(b) Execute in the name of the Customer such ownership and other
certificates as may be required to obtain payments in respect of Securities.
(c) Exchange interim receipts or temporary Securities for definitive
Securities.
(d) Appoint brokers and agents for any transaction involving the
Securities, including, without limitation, affiliates of the Bank or any
Subcustodian.
(e) Issue statements to the Customer, at times mutually agreed upon,
identifying the Assets in the Accounts.
The Bank will send the Customer an advice or notification of any
transfers of Assets to or from the Accounts. Such statements, advices or
notifications shall indicate the identity of the entity having custody of the
Assets. Unless the Customer sends the Bank a written exception or objection
to any Bank statement within sixty (60) days of receipt, the Customer shall
be deemed to have approved such statement. In such event, or where the
Customer has otherwise approved any such statement, the Bank shall, to the
extent permitted by law, be released, relieved and discharged with respect to
all matters set forth in such statement or reasonably implied therefrom as
though it had been settled by the decree of a court of competent jurisdiction
in an action where the Customer and all persons having or claiming an
interest in the Customer or the Customer's Accounts were parties.
All collections of funds or other property paid or distributed in
respect of Securities in the Custody Account shall be made at the risk of the
Customer. The Bank shall have no liability for any loss occasioned by delay
in the actual receipt of notice by the Bank or by its Subcustodians of any
payment, redemption or other transaction regarding Securities in the Custody
Account in respect of which the Bank has agreed to take any action under this
Agreement.
8. CORPORATE ACTIONS; PROXIES.
Whenever the Bank receives information concerning the Securities which
requires discretionary action by the beneficial owner of the Securities
(other than a proxy), such as subscription rights, bonus issues, stock
repurchase plans and rights offerings, or legal notices or other material
intended to be transmitted to securities holders ("Corporate Actions"), the
Bank will give the Customer notice of such Corporate Actions to the extent
that the Bank's central corporate actions department has actual knowledge
<PAGE>
of a Corporate Action in time to notify its customers.
When a rights entitlement or a fractional interest resulting from a
rights issue, stock dividend, stock split or similar Corporate Action is
received which bears an expiration date, the Bank will endeavor to obtain
Instructions from the Customer or its Authorized Person, but if Instructions
are not received in time for the Bank to take timely action, or actual notice
of such Corporate Action was received too late to seek Instructions, the Bank
is authorized to sell such rights entitlement or fractional interest and to
credit the Deposit Account with the proceeds or take any other action it
deems, in good faith, to be appropriate in which case it shall be held
harmless for any such action.
The Bank will deliver proxies to the Customer or its designated agent
pursuant to special arrangements which may have been agreed to in writing.
Such proxies shall be executed in the appropriate nominee name relating to
Securities in the Custody Account registered in the name of such nominee but
without indicating the manner in which such proxies are to be voted; and
where bearer Securities are involved, proxies will be delivered in accordance
with Instructions.
9. NOMINEES.
Securities which are ordinarily held in registered form may be
registered in a nominee name of the Bank, Subcustodian or securities
depository, as the case may be. The Bank may without notice to the Customer
cause any such Securities to cease to be registered in the name of any such
nominee and to be registered in the name of the Customer. In the event that
any Securities registered in a nominee name are called for partial redemption
by the issuer, the Bank may allot the called portion to the respective
beneficial holders of such class of security in any manner the Bank deems to
be fair and equitable. The Customer agrees to hold the Bank, Subcustodians,
and their respective nominees harmless from any liability arising directly or
indirectly from their status as a mere record holder of Securities in the
Custody Account.
10. AUTHORIZED PERSONS.
As used in this Agreement, the term "Authorized Person" means employees
or agents including investment managers as have been designated by written
notice from the Customer or its designated agent to act on behalf of the
Customer under this Agreement. Such persons shall continue to be Authorized
Persons until such time as the Bank receives Instructions from the Customer
or its designated agent that any such employee or agent is no longer an
Authorized Person.
11. INSTRUCTIONS.
The term "Instructions" means instructions of any Authorized Person
received by the Bank, via telephone, telex, TWX, facsimile transmission, bank
wire or other teleprocess or electronic instruction or trade information
system acceptable to the Bank which the Bank believes in good faith to have
been given by Authorized Persons or which are transmitted with proper testing
or authentication pursuant to terms and conditions which the Bank may
specify. Unless otherwise expressly provided, all Instructions shall
continue in full force and effect until canceled or superseded.
Any Instructions delivered to the Bank by telephone shall promptly
thereafter be confirmed in writing by an Authorized Person (which
confirmation may bear the facsimile signature of such Person), but the
Customer will hold the Bank harmless for the failure of an Authorized Person
to send such confirmation in writing, the failure of such confirmation to
conform to the telephone instructions received or the Bank's failure to
produce such confirmation at any subsequent time. The Bank may electronically
record any Instructions given by telephone, and any other telephone
discussions with respect to the Custody Account. The Customer shall be
responsible for safeguarding any test keys, identification codes or other
security devices which the Bank shall make available to the Customer or its
Authorized Persons.
12. STANDARD OF CARE; LIABILITIES.
(a) The Bank shall be responsible for the performance of only such
duties as are set forth in this Agreement or expressly contained in
Instructions which are consistent with the provisions of this Agreement as
follows:
(i) The Bank will use reasonable care with respect to its obligations
under this Agreement and the safekeeping of Assets. The Bank shall be
liable to the Customer for any loss which shall occur as the result of
the failure of a Subcustodian to exercise reasonable care with respect
to the safekeeping of such Assets to the
<PAGE>
same extent that the Bank would be liable to the Customer if the Bank were
holding such Assets in New York. In the event of any loss to the Customer
by reason of the failure of the Bank or its Subcustodian to utilize
reasonable care, the Bank shall be liable to the Customer only to the
extent of the Customer's direct damages, to be determined based on the
market value of the property which is the subject of the loss at the date
of discovery of such loss and without reference to any special conditions
or circumstances.
(ii) The Bank will not be responsible for any act, omission, default or
for the solvency of any broker or agent which it or a Subcustodian appoints
unless such appointment was made negligently or in bad faith.
(iii) The Bank shall be indemnified by, and without liability to the
Customer for any action taken or omitted by the Bank whether pursuant to
Instructions or otherwise within the scope of this Agreement if such act or
omission was in good faith, without negligence. In performing its
obligations under this Agreement, the Bank may rely on the genuineness of
any document which it believes in good faith to have been validly executed.
(iv) The Customer agrees to pay for and hold the Bank harmless from any
liability or loss resulting from the imposition or assessment of any taxes
or other governmental charges, and any related expenses with respect to
income from or Assets in the Accounts.
(v) The Bank shall be entitled to rely, and may act, upon the advice of
counsel (who may be counsel for the Customer) on all matters and shall be
without liability for any action reasonably taken or omitted pursuant to
such advice.
(vi) The Bank need not maintain any insurance for the benefit of the
Customer.
(vii) Without limiting the foregoing, the Bank shall not be liable for
any loss which results from: 1) the general risk of investing, or
2) investing or holding Assets in a particular country including, but not
limited to, losses resulting from nationalization, expropriation or other
governmental actions; regulation of the banking or securities industry;
currency restrictions, devaluations or fluctuations; and market conditions
which prevent the orderly execution of securities transactions or affect
the value of Assets.
(viii) Neither party shall be liable to the other for any loss due to
forces beyond their control including, but not limited to strikes or work
stoppages, acts of war or terrorism, insurrection, revolution, nuclear
fusion, fission or radiation, or acts of God.
(b) Consistent with and without limiting the first paragraph of this
Section 12, it is specifically acknowledged that the Bank shall have no duty
or responsibility to:
(i) question Instructions or make any suggestions to the Customer or
an Authorized Person regarding such Instructions;
(ii) supervise or make recommendations with respect to investments or
the retention of Securities;
(iii) advise the Customer or an Authorized Person regarding any default
in the payment of principal or income of any security other than as
provided in Section 5(c) of this Agreement;
(iv) evaluate or report to the Customer or an Authorized Person
regarding the financial condition of any broker, agent or other party to
which Securities are delivered or payments are made pursuant to this
Agreement;
(v) review or reconcile trade confirmations received from brokers.
The Customer or its Authorized Persons (as defined in Section 10) issuing
Instructions shall bear any responsibility to review such confirmations
against Instructions issued to and statements issued by the Bank.
(c) The Customer authorizes the Bank to act under this Agreement
notwithstanding that the Bank or any of its divisions or affiliates may have
a material interest in a transaction, or circumstances are such that the Bank
may have a potential
<PAGE>
conflict of duty or interest including the fact that the Bank or any of its
affiliates may provide brokerage services to other customers, act as
financial advisor to the issuer of Securities, act as a lender to the issuer
of Securities, act in the same transaction as agent for more than one
customer, have a material interest in the issue of Securities, or earn
profits from any of the activities listed herein.
13. FEES AND EXPENSES.
The Customer agrees to pay the Bank for its services under this
Agreement such amount as may be agreed upon in writing, together with the
Bank's reasonable out-of-pocket or incidental expenses, including, but not
limited to, legal fees. The Bank shall have a lien on and is authorized to
charge any Accounts of the Customer for any amount owing to the Bank under
any provision of this Agreement.
14. MISCELLANEOUS.
(a) FOREIGN EXCHANGE TRANSACTIONS. To facilitate the administration
of the Customer's trading and investment activity, the Bank is authorized to
enter into spot or forward foreign exchange contracts with the Customer or an
Authorized Person for the Customer and may also provide foreign exchange
through its subsidiaries, affiliates or Subcustodians. Instructions,
including standing instructions, may be issued with respect to such contracts
but the Bank may establish rules or limitations concerning any foreign
exchange facility made available. In all cases where the Bank, its
subsidiaries, affiliates or Subcustodians enter into a foreign exchange
contract related to Accounts, the terms and conditions of the then current
foreign exchange contract of the Bank, its subsidiary, affiliate or
Subcustodian and, to the extent not inconsistent, this Agreement shall apply
to such transaction.
(b) CERTIFICATION OF RESIDENCY, ETC. The Customer certifies that it
is a resident of the United States and agrees to notify the Bank of any
changes in residency. The Bank may rely upon this certification or the
certification of such other facts as may be required to administer the Bank's
obligations under this Agreement. The Customer will indemnify the Bank
against all losses, liability, claims or demands arising directly or
indirectly from any such certifications.
<PAGE>
(c) ACCESS TO RECORDS. The Bank shall allow the Customer's
independent public accountant reasonable access to the records of the Bank
relating to the Assets as is required in connection with their examination of
books and records pertaining to the Customer's affairs. Subject to
restrictions under applicable law, the Bank shall also obtain an undertaking
to permit the Customer's independent public accountants reasonable access to
the records of any Subcustodian which has physical possession of any Assets
as may be required in connection with the examination of the Customer's books
and records.
(d) GOVERNING LAW; SUCCESSORS AND ASSIGNS. This Agreement shall be
governed by the laws of the State of New York and shall not be assignable by
either party, but shall bind the successors in interest of the Customer and
the Bank.
(e) ENTIRE AGREEMENT; APPLICABLE RIDERS. Customer represents that
the Assets deposited in the Accounts are (Check one):
___ Employee Benefit Plan or other assets subject to the Employee
Retirement Income Security Act of 1974, as amended ("ERISA");
___ Mutual Fund assets subject to certain Securities and Exchange
Commission ("SEC") rules and regulations;
____ Neither of the above.
This Agreement consists exclusively of this document together with
Schedule A, Exhibits I - _______ and the following Rider(s):
MUTUAL FUND
INSURANCE COMPANY PROVISIONS
There are no other provisions of this Agreement and this Agreement
supersedes any other agreements, whether written or oral, between the
parties. Any amendment to this Agreement must be in writing, executed by
both parties.
(f) SEVERABILITY. In the event that one or more provisions of this
Agreement are held invalid, illegal or unenforceable in any respect on the
basis of any particular circumstances or in any jurisdiction, the validity,
legality and enforceability of such provision or provisions under other
circumstances or in other jurisdictions and of the remaining provisions will
not in any way be affected or impaired.
(g) WAIVER. Except as otherwise provided in this Agreement, no
failure or delay on the part of either party in exercising any power or right
under this Agreement operates as a waiver, nor does any single or partial
exercise of any power or right preclude any other or further exercise, or the
exercise of any other power or right. No waiver by a party of any provision
of this Agreement, or waiver of any breach or default, is effective unless in
writing and signed by the party against whom the waiver is to be enforced.
(h) NOTICES. All notices under this Agreement shall be effective
when actually received. Any notices or other communications which may be
required under this Agreement are to be sent to the parties at the following
addresses or such other addresses as may subsequently be given to the other
party in writing:
<PAGE>
Bank: The Chase Manhattan Bank, N.A.
Chase MetroTech Center
Brooklyn, NY 11245
Attention: Global Custody Division
or telex: __________________________________
Customer: ____________________________________________
____________________________________________
____________________________________________
or telex: __________________________________
(i) TERMINATION. This Agreement may be terminated by the Customer
or the Bank by giving sixty (60) days written notice to the other, provided
that such notice to the Bank shall specify the names of the persons to whom
the Bank shall deliver the Assets in the Accounts. If notice of termination
is given by the Bank, the Customer shall, within sixty (60) days following
receipt of the notice, deliver to the Bank Instructions specifying the names
of the persons to whom the Bank shall deliver the Assets. In either case the
Bank will deliver the Assets to the persons so specified, after deducting any
amounts which the Bank determines in good faith to be owed to it under
Section 13. If within sixty (60) days following receipt of a notice of
termination by the Bank, the Bank does not receive Instructions from the
Customer specifying the names of the persons to whom the Bank shall deliver
the Assets, the Bank, at its election, may deliver the Assets to a bank or
trust company doing business in the State of New York to be held and disposed
of pursuant to the provisions of this Agreement, or to Authorized Persons, or
may continue to hold the Assets until Instructions are provided to the Bank.
ITT HARTFORD INSURANCE GROUP
By:______________________________________
Title
THE CHASE MANHATTAN BANK, N.A.
By:______________________________________
Title
50857
<PAGE>
STATE OF )
: ss.
COUNTY OF )
On this day of , 19 , before me personally came
, to me known, who being by me duly sworn, did
depose and say that he/she resides in at
; that he/she is
of ,
the entity described in and which executed the foregoing instrument; that
he/she knows the seal of said entity, that the seal affixed to said
instrument is such seal, that it was so affixed by order of said entity, and
that he/she signed his/her name thereto by like order.
_________________________________________
Sworn to before me this ______________
day of __________________, 19_____.
______________________________________
Notary
<PAGE>
STATE OF NEW YORK )
: ss.
COUNTY OF NEW YORK )
On this day of ,19 ,
before me personally came , to me known, who
being by me duly sworn, did depose and say that he/she resides in
at
, that he/she is a
Vice President of THE CHASE MANHATTAN BANK, (National Association), the
corporation described in and which executed the foregoing instrument; that
he/she knows the seal of said corporation, that the seal affixed to said
instrument is such corporate seal, that it was so affixed by order of the
Board of Directors of said corporation, and that he/she signed his/her name
thereto by like order.
_________________________________________
Sworn to before me this ______________
day of _________________, 19_____.
______________________________________
Notary
<PAGE>
Mutual Fund Rider to Global Custody Agreement
Between The Chase Manhattan Bank, N.A. and
ITT Hartford Insurance Group,
effective _____________________
Customer represents that the Assets being placed in the Bank's custody
are subject to the Investment Company Act of 1940 (the Act), as the same
may be amended from time to time.
Except to the extent that the Bank has specifically agreed to comply with
a condition of a rule, regulation, interpretation promulgated by or
under the authority of the SEC or the Exemptive Order applicable to
accounts of this nature issued to the Bank (Investment Company Act of
1940, Release No. 12053, November 20, 1981), as amended, or unless the
Bank has otherwise specifically agreed, the Customer shall be solely
responsible to assure that the maintenance of Assets under this
Agreement complies with such rules, regulations, interpretations or
exemptive order promulgated by or under the authority of the Securities
Exchange Commission.
The following modifications are made to the Agreement:
Section 3. SUBCUSTODIANS AND SECURITIES DEPOSITORIES.
Add the following language to the end of Section 3:
The terms Subcustodian and securities depositories as used in this
Agreement shall mean a branch of a qualified U.S. bank, an eligible
foreign custodian or an eligible foreign securities depository, which
are further defined as follows:
(a) "qualified U.S. Bank" shall mean a qualified U.S. bank as defined in
Rule 17f-5 under the Investment Company Act of 1940;
(b) "eligible foreign custodian" shall mean (i) a banking institution or
trust company incorporated or organized under the laws of a country other
than the United States that is regulated as such by that country's
government or an agency thereof and that has shareholders' equity in excess
of $200 million in U.S. currency (or a foreign currency equivalent
thereof), (ii) a majority owned direct or indirect subsidiary of a
qualified U.S. bank or bank holding company that is incorporated or
organized under the laws of a country other than the United States and that
has shareholders' equity in excess of $100 million in U.S. currency (or a
foreign currency equivalent thereof)(iii) a banking institution or trust
company incorporated or organized under the laws of a country other than
the United States or a majority owned direct or indirect subsidiary of a
qualified U.S. bank or bank holding company that is incorporated or
organized under the laws of a country other than the United States which
has such other qualifications as shall be specified in Instructions and
approved by the Bank; or (iv) any other entity that shall have been so
qualified by exemptive order, rule or other appropriate action of the SEC;
and
<PAGE>
(c) "eligible foreign securities depository" shall mean a securities
depository or clearing agency, incorporated or organized under the laws of
a country other than the United States, which operates (i) the central
system for handling securities or equivalent book-entries in that country,
or (ii) a transnational system for the central handling of securities or
equivalent book-entries.
The Customer represents that its Board of Directors has approved each of
the Subcustodians listed in Schedule A to this Agreement and the terms of the
subcustody agreements between the Bank and each Subcustodian, which are
attached as Exhibits I through ____ of Schedule A, and further represents
that its Board has determined that the use of each Subcustodian and the terms
of each subcustody agreement are consistent with the best interests of the
Fund(s) and its (their) shareholders. The Bank will supply the Customer with
any amendment to Schedule A for approval. The Customer has supplied or will
supply the Bank with certified copies of its Board of Directors resolution(s)
with respect to the foregoing prior to placing Assets with any Subcustodian
so approved.
Section 11. INSTRUCTIONS.
Add the following language to the end of Section 11:
Deposit Account Payments and Custody Account Transactions made pursuant to
Section 5 and 6 of this Agreement may be made only for the purposes listed
below. Instructions must specify the purpose for which any transaction is
to be made and Customer shall be solely responsible to assure that
Instructions are in accord with any limitations or restrictions applicable
to the Customer by law or as may be set forth in its prospectus.
(a) In connection with the purchase or sale of Securities at prices as
confirmed by Instructions;
(b) When Securities are called, redeemed or retired, or otherwise become
payable;
(c) In exchange for or upon conversion into other securities alone or
other securities and cash pursuant to any plan or merger, consolidation,
reorganization, recapitalization or readjustment;
(d) Upon conversion of Securities pursuant to their terms into other
securities;
(e) Upon exercise of subscription, purchase or other similar rights
represented by Securities;
(f) For the payment of interest, taxes, management or supervisory fees,
distributions or operating expenses;
(g) In connection with any borrowings by the Customer requiring a pledge
of Securities, but only against receipt of
<PAGE>
amounts borrowed;
(h) In connection with any loans, but only against receipt of adequate
collateral as specified in Instructions which shall reflect any
restrictions applicable to the Customer;
(i) For the purpose of redeeming shares of the capital stock of the
Customer and the delivery to, or the crediting to the account of, the Bank,
its Subcustodian or the Customer's transfer agent, such shares to be
purchased or redeemed;
(j) For the purpose of redeeming in kind shares of the Customer against
delivery to the Bank, its Subcustodian or the Customer's transfer agent
of such shares to be so redeemed;
(k) For delivery in accordance with the provisions of any agreement among
the Customer, the Bank and a broker-dealer registered under the Securities
Exchange Act of 1934 (the "Exchange Act") and a member of The National
Association of Securities Dealers, Inc. ("NASD"), relating to compliance
with the rules of The Options Clearing Corporation and of any registered
national securities exchange, or of any similar organization or
organizations, regarding escrow or other arrangements in connection with
transactions by the Customer;
(l) For release of Securities to designated brokers under covered call
options, provided, however, that such Securities shall be released only
upon payment to the Bank of monies for the premium due and a receipt for
the Securities which are to be held in escrow. Upon exercise of the
option, or at expiration, the Bank will receive from brokers the Securities
previously deposited. The Bank will act strictly in accordance with
Instructions in the delivery of Securities to be held in escrow and will
have no responsibility or liability for any such Securities which are not
returned promptly when due other than to make proper request for such
return;
(m) For spot or forward foreign exchange transactions to facilitate
security trading, receipt of income from Securities or related
transactions;
(n) For other proper purposes as may be specified in Instructions issued
by an officer of the Customer which shall include a statement of the
purpose for which the delivery or payment is to be made, the amount of the
payment or specific Securities to be delivered, the name of the person or
persons to whom delivery or payment is to be made, and a certification that
the purpose is a proper purpose under the instruments governing the
Customer; and
(o) Upon the termination of this Agreement as set forth in Section 14(i).
Section 12. STANDARD OF CARE; LIABILITIES.
<PAGE>
Add the following subsection (d) to Section 12:
(d) The Bank hereby warrants to the Customer that in its opinion, after
due inquiry, the established procedures to be followed by each of its
branches, each branch of a qualified U.S. bank, each eligible foreign
custodian and each eligible foreign securities depository holding the
Customer's Securities pursuant to this Agreement afford protection for
such Securities at least equal to that afforded by the Bank's established
procedures with respect to similar securities held by the Bank and its
securities depositories in New York.
Section 14. ACCESS TO RECORDS.
ADD THE FOLLOWING LANGUAGE TO THE END OF SECTION 14(C):
Upon reasonable request from the Customer, the Bank shall furnish the
Customer such reports (or portions thereof) of the Bank's system of
internal accounting controls applicable to the Bank's duties under this
Agreement. The Bank shall endeavor to obtain and furnish the Customer
with such similar reports as it may reasonably request with respect to each
Subcustodian and securities depository holding the Customer's assets.
<PAGE>
GLOBAL CUSTODY AGREEMENT
WITH ___________________________________
DATE ___________________________________
DOMESTIC
SPECIAL TERMS AND CONDITIONS RIDER
DOMESTIC CORPORATE ACTIONS AND PROXIES
With respect to domestic U.S. and Canadian Securities (the latter if held in
DTC), the following provisions will apply rather than the provisions of
Section 8 of the Agreement:
The Bank will send to the Customer or the Authorized Person for a
Custody Account, such proxies (signed in blank, if issued in the
name of the Bank's nominee or the nominee of a central depository)
and communications with respect to Securities in the Custody Account
as call for voting or relate to legal proceedings within a reasonable
time after sufficient copies are received by the Bank for forwarding
to its customers. In addition, the Bank will follow coupon payments,
redemptions, exchanges or similar matters with respect to Securities
in the Custody Account and advise the Customer or the Authorized
Person for such Account of rights issued, tender offers or any other
discretionary rights with respect to such Securities, in each case, of
which the Bank has received notice from the issuer of the Securities,
or as to which notice is published in publications routinely utilized
by the Bank for this purpose.
FEES
The fees referenced in Section 13 of this Agreement cover only domestic and
euro-dollar holdings. There will be no Schedule A to this Agreement, as
there are no foreign assets in the Accounts.
k
<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) included in or made a part of
this Registration Statement File No. 2-76350 for Hartford Money Market Fund,
Inc. on Form N-1A.
ARTHUR ANDERSEN LLP
Hartford, Connecticut
April 4, 1996
<PAGE>
HARTFORD MONEY MARKET FUND, INC.
STATEMENT OF NET ASSETS
DECEMBER 31, 1995
<TABLE>
<CAPTION>
AMORTIZED
PRINCIPAL COST AND
AMOUNT VALUE
- ---------- ------------
<C> <S> <C>
COMMERCIAL PAPER -- 86.3%
$ 500,000 Air Products & Chemicals
5.680% due 01/18/96......... $ 498,738
500,000 American Home Products
5.700% due 02/02/96......... 497,546
500,000 ANZ (Delaware) Inc.
5.670% due 01/05/96......... 499,764
500,000 Aristar Inc.
5.750% due 01/08/96......... 499,521
500,000 Bass Finance C.I. Ltd.
5.680% due 02/16/96......... 496,450
500,000 Bausch & Lomb Inc.
5.710% due 01/19/96......... 498,652
500,000 Cafco
5.650% due 02/16/96......... 496,469
500,000 Colgate-Palmolive Co.
5.620% due 03/08/96......... 494,848
500,000 Dean Witter, Discover Card
5.730% due 01/24/96......... 498,249
500,000 Electronic Data Systems
5.580% due 03/15/96......... 494,343
500,000 Finova Capital
5.940% due 01/26/96......... 498,020
500,000 General Electric Company
5.410% due 05/03/96......... 490,833
500,000 Goldman Sachs Group LP
5.540% due 04/04/96......... 492,844
500,000 Hanson Finance (UK)
5.650% due 02/21/96......... 496,076
500,000 National Rural Utilities
5.650% due 02/20/96......... 496,155
500,000 RTZ America Inc.
5.700% due 01/23/96......... 498,337
500,000 Sharp Electronics Corp.
5.660% due 01/26/96......... 498,113
500,000 Tambrands Inc.
5.590% due 04/26/96......... 491,072
500,000 Transamerica Finance Co.
5.700% due 01/10/96......... 499,367
500,000 Whirlpool Corp.
5.760% due 01/17/96......... 498,800
500,000 Zeneca, Inc. D/N
5.720% due 01/11/96......... 499,284
-----------
$10,433,481
-----------
NON-CONVERTIBLE CORPORATE BONDS -- 8.3%
$ 500,000 American Honda Finance
5.875% due 03/01/96......... $ 500,000
500,000 Associates Corp. of America
4.940% due 04/02/96......... 498,754
-----------
$ 998,754
-----------
REPURCHASE AGREEMENT -- 7.7%
935,000 Interest in $24,574,000 joint
repurchase agreement dated
12/29/95 with Fleet Bank
5.850% due 01/02/96;
maturity amount $935,608;
(Collateralized by
$24,574,000 U.S. Treasury
Note 5.125% due 12/31/98)... 935,000
-----------
Total short-term securities... $12,367,235
-----------
-----------
DIVERSIFICATION OF ASSETS:
Total investment in securities
*(Identified cost of $12,367,235).......... 102.3% $12,367,235
Excess of liabilities over cash and
receivables................................ (2.3) (278,567 )
------ ------------
Net Assets (Applicable to $1.00 per share
based on 12,088,668 shares outstanding).... 100.0% $12,088,668
------ ------------
------ ------------
SUMMARY OF SHAREHOLDERS' EQUITY:
Capital stock, par value $.10 per share; authorized
500,000,000 shares; outstanding 12,088,668
shares............................................. $ 1,208,867
Capital surplus...................................... 10,879,801
------------
Net assets, applicable to shares outstanding......... $12,088,668
------------
------------
</TABLE>
* Aggregate cost for Federal income tax purposes.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
<PAGE>
HARTFORD MONEY MARKET FUND, INC.
STATEMENT OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 1995
- ---------------------------------------------------------------------
<TABLE>
<S> <C>
INVESTMENT INCOME:
Interest.................................................. $771,313
EXPENSES:
Shareholder accounting fees............................... 97,530
Investment advisory services.............................. 32,031
Registration fees......................................... 31,358
Administrative services................................... 22,422
Custodian fees............................................ 13,410
Board of directors fees................................... 128
Other..................................................... 7,327
--------
Total expenses.......................................... 204,206
--------
Net investment income..................................... 567,107
--------
Net increase in net assets resulting from operations...... $567,107
--------
--------
- ----------------------------------------------------------------------
</TABLE>
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1995 AND 1994
<TABLE>
- -----------------------------------------------------------------------------------------------------
<CAPTION>
YEAR ENDED YEAR ENDED
DECEMBER 31, 1995 DECEMBER 31, 1994
------------------- -----------------
<S> <C> <C>
OPERATIONS:
Net investment income..................................... $ 567,107 $ 371,951
--------------- -----------------
Net increase in net assets................................ 567,107 371,951
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income..................................... (567,107) (371,951)
CAPITAL SHARE TRANSACTIONS:
Proceeds from Fund shares sold (33,634,110 and 35,072,968
shares, respectively).................................... 33,634,110 35,072,968
Net asset value of Fund shares issued upon reinvestment of
dividends
(564,345 and 369,629 shares, respectively)............... 564,345 369,629
Cost of Fund shares redeemed (33,793,519 and 35,262,478
shares,
respectively)............................................ (33,793,519) (35,262,478)
--------------- -----------------
Net increase in net assets resulting from capital share
transactions............................................. 404,936 180,119
--------------- -----------------
Total increase in net assets............................ 404,936 180,119
NET ASSETS:
Beginning of period....................................... 11,683,732 11,503,613
--------------- -----------------
End of period............................................. $ 12,088,668 $ 11,683,732
--------------- -----------------
--------------- -----------------
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
<PAGE>
- -------------------------------------------------------------------------------
HARTFORD MONEY MARKET FUND, INC.
- -------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1995
- -------------------------------------------------------------------------------
1. ORGANIZATION:
Hartford Money Market Fund, Inc., (the Fund) is registered under the
Investment Company Act of 1940, as amended, as a diversified, open-ended
management investment company. The Fund was organized under the laws of the
State of Maryland in February 1982, and commenced operations in June 1982.
The Fund seeks a high level of current income consistent with liquidity and
preservation of capital through investments in the obligations of the U.S.
Government and its agencies, money market instruments, and corporate bonds,
notes and other debt instruments.
2. SIGNIFICANT ACCOUNTING POLICIES:
The following is a summary of significant accounting policies of the Fund,
which are in accordance with generally accepted accounting principles in
the investment company industry:
a) SECURITY TRANSACTIONS--Security transactions are recorded
on the trade date (date the order to buy or sell is executed). Security
gains and losses are determined on the basis of identified cost.
b) SECURITY VALUATION--Investments are valued at amortized
cost, which approximates fair market value. Under the amortized cost
method of valuation, an instrument is valued by reference to the Fund's
acquisition cost as adjusted for amortization of premium or accretion of
discount.
c) REPURCHASE TRANSACTIONS--A repurchase agreement is an
agreement by which the seller of a security agrees to repurchase the
security sold at a mutually agreed upon time and price.
At the time the Fund enters into a repurchase agreement, the value of
the underlying collateral security(ies), including accrued interest,
will be equal to or exceed the value of the repurchase agreement and, in
the case of repurchase agreements exceeding one day, the value of the
underlying security(ies), including accrued interest, is required during
the term of the agreement to be equal to or exceed the value of the
repurchase agreement. Security(ies) which serve to collateralize the
repurchase agreement are held by the Fund's custodian in book entry or
physical form in the custodial account of the Fund. Repurchase
agreements are valued at cost plus accrued interest receivable.
d) JOINT TRADING ACCOUNT--Pursuant to an exemptive order
issued by the Securities and Exchange Commission, the Fund may transfer
uninvested cash balances into a joint trading account managed by
Hartford Investment Management Company (HIMCO). These balances may be
invested in one or more repurchase agreements and/or short-term money
market instruments.
e) FEDERAL INCOME TAXES--For Federal income tax purposes,
the Fund intends to qualify as a regulated investment company under
Subchapter M of the Internal Revenue Code by distributing substantially
all of its taxable income to its shareholders and otherwise complying
with the requirements for regulated investment companies. Accordingly,
no provision for Federal income taxes has been made.
f) FUND SHARE VALUATION AND DIVIDEND DISTRIBUTION TO SHAREHOLDERS--
Fund shares are sold and redeemed on a continuing basis at net
asset value. Interest income and expenses are accrued on a daily basis.
The Fund's net asset value per share is determined as of 4:00 p.m.,
Eastern Standard Time, on days the New York Stock Exchange is open for
trading. The Fund seeks to maintain a stable net asset value per share
of $1.00 by declaring a daily dividend from net investment income,
including net realized gains and losses, and by valuing its investments
using the amortized cost method. Dividends are distributed monthly.
g) USE OF ESTIMATES--The preparation of financial statements
in conformity with generally accepted accounting principles requires
management to make estimates and assumptions that affect the reported
amounts of assets and liabilities as of the date of the financial
statements and the reported amounts of income and expenses during the
period. Operating results in the future could vary from the amounts
derived from management's estimates and assumptions.
3. INVESTMENT ADVISORY AND ADMINISTRATIVE SERVICES AGREEMENTS:
a) INVESTMENT ADVISORY AGREEMENT--HIMCO, a wholly-owned
subsidiary of Hartford Life Insurance Company (HL), serves as investment
adviser to the Fund pursuant to an agreement approved by the Board of
Directors and shareholders.
Under the terms of the agreement, HIMCO is compensated at a maximum
annual fee of .25% of the Fund's average daily net assets.
b) ADMINISTRATIVE SERVICES AGREEMENT--HL provides administrative services
to the Fund and receives an annual fee equal to .175% of the Fund's
average daily net assets.
The Fund assumes and pays certain other expenses (including, but not
limited to, shareholder accounting fees, registration and directors'
fees.) These expenses are either directly attributable to the Fund or
are allocated based on the ratio of the net assets of the Fund to the
combined net assets of the eleven Hartford Mutual Funds. Directors' fees
represent remuneration paid or accrued to directors not affiliated with
HL or any other related company.
<PAGE>
- -------------------------------------------------------------------------------
HARTFORD MONEY MARKET FUND, INC.
- -------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS (FOR A SHARE OUTSTANDING THROUGHOUT THE INDICATED PERIOD)*
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
YEAR ENDED DECEMBER 31,
-------------------------------------------
1995 1994 1993 1992 1991
------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period.... $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
INCOME FROM INVESTMENT OPERATIONS:
Net Investment Income................. 0.044 0.027 0.018 0.024 0.049
Net Gains or (Losses) on Securities
(both realized and unrealized)....... -- -- -- -- --
------- ------- ------- ------- -------
Total Income From Investment
Operations....................... 0.044 0.027 0.018 0.024 0.049
LESS DISTRIBUTIONS:
Dividends (from net investment
income).............................. (0.044) (0.027) (0.018) (0.024) (0.049)
Distributions (from capital gains).... -- -- -- -- --
Return of Capital..................... -- -- -- -- --
------- ------- ------- ------- -------
Total Distributions............... (0.044) (0.027) (0.018) (0.024) (0.049)
Net Asset Value, End of Period.......... $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
------- ------- ------- ------- -------
------- ------- ------- ------- -------
Total Return............................ 4.52% 2.77% 1.88% 2.47% 4.99%
------- ------- ------- ------- -------
------- ------- ------- ------- -------
RATIOS AND SUPPLEMENTAL DATA:
Net Assets, End of Period (000's
omitted)............................... $12,089 $11,684 $11,504 $13,483 $13,866
Ratio of Expenses to Average Net
Assets................................. 1.590% 1.610% 1.540% 1.630% 1.550%
Ratio of Net Investment Income to
Average Net Assets..................... 4.430% 2.720% 1.821% 2.440% 4.920%
<FN>
* Financial Highlights for the periods ended through December 31, 1992 have
been restated to conform with requirements issued by the SEC in April 1993.
</TABLE>
<PAGE>
- -------------------------------------------------------------------------------
REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS
- -------------------------------------------------------------------------------
TO THE BOARD OF DIRECTORS AND SHAREHOLDERS OF
HARTFORD MONEY MARKET FUND, INC.:
- -------------------------------------------------------------------------------
We have audited the accompanying statement of net assets of Hartford Money
Market Fund, Inc. (a Maryland corporation) as of December 31, 1995, and the
related statement of operations for the year then ended, the statements of
changes in net assets for each of the two years in the period then ended, and
the financial highlights for each of the five years in the period then ended.
These financial statements and financial highlights are the responsibility of
the Fund's management. Our responsibility is to express an opinion on these
financial statements and financial highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of securities owned as of
December 31, 1995, by correspondence with the custodian. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of
Hartford Money Market Fund, Inc. as of December 31, 1995, the results of its
operations for the year then ended, the changes in its net assets for each of
the two years in the period then ended, and the financial highlights for each
of the five yeras in the period then ended in conformity with generally
accepted accounting principles.
Hartford, Connecticut
February 19, 1996 Arthur Andersen LLP
<PAGE>
EXHIBIT 19
HARTFORD INDEX FUND, INC.
HARTFORD MONEY MARKET FUND, INC.
HARTFORD CAPITAL APPRECIATION FUND, INC.
HARTFORD BOND FUND, INC.
HARTFORD STOCK FUND, INC.
HVA MONEY MARKET FUND, INC.
HARTFORD ADVISERS FUND, INC.
HARTFORD U.S. GOVERNMENT MONEY MARKET FUND, INC.
HARTFORD MORTGAGE SECURITIES FUND, INC.
HARTFORD INTERNATIONAL OPPORTUNITIES FUND, INC.
HARTFORD DIVIDEND AND GROWTH FUND, INC.
HARTFORD INTERNATIONAL ADVISERS FUND, INC.
HARTFORD SMALL COMPANY FUND, INC.
POWER OF ATTORNEY
-----------------
Joseph A. Biernat Charles M. O'Halloran
Winifred E. Coleman William A. O'Neill
Joseph H. Gareau Millard H. Pryor, Jr.
J. Richard Garrett Lowndes A. Smith
George R. Jay John K. Springer
do hereby jointly and severally authorize Lynda Godkin, Allison MacInnis,
Kevin J. Carr, Charles M. O'Halloran or Scott K. Richardson, to sign as their
agent any Securities Act of 1933 and/or Investment Company Act of 1940
Registration Statement, pre-effective amendment or post-effective amendment
and any Application for Exemption Relief or other filings with the Securities
and Exchange Commission relating to any Mutual Fund named above.
IN WITNESS WHEREOF, the undersigned have executed this Power of Attorney for
the purpose herein set forth.
Dated: 1-24-96
/S/Joseph A. Biernat
- -----------------------------------
Joseph A. Biernat
Dated: 1-24-96
/S/ Winifred E. Coleman
- -----------------------------------
Winifred E. Coleman
Dated: 1-24-96
<PAGE>
/S/Joseph A. Gareau
- -----------------------------------
Joseph A. Gareau
Dated: 1-24-96
/S/ J. Richard Garrett
- -----------------------------------
J. Richard Garrett
Dated: 1-24-96
/S/ George R. Jay
- -----------------------------------
George R. Jay
Dated: 1-24-96
/S/ Charles M. O'Halloran
- -----------------------------------
Charles M. O'Halloran
Dated: 1-24-96
/S/ William A. O'Neill
- -----------------------------------
William A. O'Neill
Dated: 1-24-96
/S/ Millard H. Pryor, Jr.
- -----------------------------------
Millard H. Pryor, Jr.
Dated: 1-24-96
/S/ Lowndes A. Smith
- -----------------------------------
Lowndes A. Smith
Dated: 1-24-96
/S/ John K. Springer
- -----------------------------------
John K. Springer
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 6
<CIK> 0000700872
<NAME> HARTFORD MONEY MARKET
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-START> JAN-01-1995
<PERIOD-END> DEC-31-1995
<INVESTMENTS-AT-COST> 12,367,235
<INVESTMENTS-AT-VALUE> 12,367,235
<RECEIVABLES> 13,961
<ASSETS-OTHER> 693
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 12,381,890
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 293,221
<TOTAL-LIABILITIES> 293,221
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 0
<SHARES-COMMON-STOCK> 12,088,669
<SHARES-COMMON-PRIOR> 11,683,732
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 0
<NET-ASSETS> 12,088,669
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 771,313
<OTHER-INCOME> 0
<EXPENSES-NET> 204,206
<NET-INVESTMENT-INCOME> 567,107
<REALIZED-GAINS-CURRENT> 0
<APPREC-INCREASE-CURRENT> 0
<NET-CHANGE-FROM-OPS> 567,107
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 567,107
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 33,634,110
<NUMBER-OF-SHARES-REDEEMED> 33,793,518
<SHARES-REINVESTED> 564,345
<NET-CHANGE-IN-ASSETS> 404,936
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 32,031
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 204,206
<AVERAGE-NET-ASSETS> 12,812,000
<PER-SHARE-NAV-BEGIN> 1.000
<PER-SHARE-NII> 0.044
<PER-SHARE-GAIN-APPREC> 0.000
<PER-SHARE-DIVIDEND> 0.044
<PER-SHARE-DISTRIBUTIONS> 0.000
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 1.000
<EXPENSE-RATIO> .016
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
