HARTFORD ADVISORS FUND INC /CT/, 497, 1995-05-09

HARTFORD ADVISORS FUND INC /CT/
497, 1995-05-09

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<PAGE>

HARTFORD MUTUAL FUNDS
P.O. BOX 2999
HARTFORD, CT 06104-2999
PROSPECTUS -- MAY 1, 1995

This Prospectus contains information relating to eleven mutual funds offered
hereby (individually, a "Fund," collectively, the "Funds" or "Hartford Mutual
Funds"), each registered as a diversified open-end management investment company
with the Securities and Exchange Commission, that are made available to serve as
the underlying investment vehicles for certain variable annuity and variable
life insurance separate accounts of Hartford Life Insurance Company and ITT
Hartford Life and Annuity Insurance Company (collectively, the "ITT Hartford
Life Insurance Companies"). Each Fund is registered as a diversified open-end
management investment company with the Securities and Exchange Commission. The
Funds, which have different investment objectives and policies, are: Hartford
Capital Appreciation Fund, Inc., Hartford Dividend and Growth Fund, Inc.,
Hartford Index Fund, Inc., Hartford International Opportunities Fund, Inc.,
Hartford Stock Fund, Inc., Hartford Advisers Fund, Inc., Hartford International
Advisers Fund, Inc., Hartford Bond Fund, Inc., Hartford Mortgage Securities
Fund, Inc., HVA Money Market Fund, Inc. and Hartford U.S. Government Money
Market Fund, Inc. The investment objective of each Fund is the first sentence of
each of the following:

STOCK FUNDS

HARTFORD CAPITAL APPRECIATION FUND, INC. (formerly HARTFORD AGGRESSIVE
GROWTH FUND, INC.) seeks to achieve growth of capital by investing in securities
selected solely on the basis of potential for capital appreciation; income, if
any, is an incidental consideration. The Capital Appreciation Fund invests
primarily in equity securities and securities convertible into equity
securities.

HARTFORD DIVIDEND AND GROWTH FUND, INC. seeks to achieve a high level of
current income consistent with growth of capital and reasonable investment risk.
The Dividend and Growth Fund invests primarily in equity securities and
securities convertible into equity securities that typically have above average
income yield and favorable prospects for capital appreciation.

HARTFORD INDEX FUND, INC. seeks to provide investment results which
approximate the price and yield performance of publicly-traded common stocks in
the aggregate. The Index Fund attempts to approximate the capital performance
and the dividend income of the Standard & Poor's 500 Composite Stock Price
Index.

HARTFORD INTERNATIONAL OPPORTUNITIES FUND, INC. seeks to achieve long-term
total rate of return consistent with prudent investment risk through investment
primarily in equity securities issued by non-U.S. companies.

HARTFORD STOCK FUND, INC. seeks to achieve long-term capital growth
primarily through capital appreciation, with income a secondary consideration,
by investing in primarily equity securities. Its portfolio emphasizes
high-quality growth companies.

ASSET ALLOCATION FUNDS

HARTFORD ADVISERS FUND, INC. seeks to achieve maximum long-term total rate
of return consistent with prudent investment risk by investing in common stock
and other equity securities, bonds and other debt securities, and money market
instruments. The Advisers Fund actively allocates its assets among these asset
categories based on fundamental analysis, not on short-term market timing.

HARTFORD INTERNATIONAL ADVISERS FUND, INC. seeks to achieve maximum
long-term total rate of return consistent with prudent investment risk. The
International Advisers Fund's assets will be diversified among at least five
countries, and will be allocated among equity and debt securities and money
market instruments based on fundamental analysis, not on short-term market
timing.

1
<PAGE>
BOND FUNDS

HARTFORD BOND FUND, INC. seeks to achieve maximum current income consistent
with preservation of capital by investing primarily in fixed-income securities.

HARTFORD MORTGAGE SECURITIES FUND, INC. seeks to achieve maximum current
income consistent with safety of principal and maintenance of liquidity by
investing primarily in mortgage-related securities, including securities issued
by the Government National Mortgage Association.

MONEY MARKET FUNDS

HVA MONEY MARKET FUND, INC. seeks to achieve maximum current income
consistent with liquidity and preservation of capital. This Fund invests in
short-term money market instruments.

HARTFORD U.S. GOVERNMENT MONEY MARKET FUND, INC. seeks to achieve maximum
current income consistent with preservation of capital. This Fund invests in
short-term money market instruments.

- --------------------------------------------------------------------------------

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.
- --------------------------------------------------------------------------------

THIS PROSPECTUS SETS FORTH CONCISELY THE INFORMATION ABOUT A FUND THAT A
PROSPECTIVE INVESTOR SHOULD KNOW BEFORE INVESTING. PLEASE READ AND RETAIN THIS
PROSPECTUS FOR FUTURE REFERENCE. ADDITIONAL INFORMATION ABOUT THE FUNDS HAS BEEN
FILED WITH THE SECURITIES AND EXCHANGE COMMISSION IN A STATEMENT OF ADDITIONAL
INFORMATION DATED MAY 1, 1995, WHICH HAS BEEN INCORPORATED BY REFERENCE INTO
THIS PROSPECTUS AND WILL BE PROVIDED ON REQUEST AND WITHOUT CHARGE. WRITE
"HARTFORD FAMILY OF FUNDS, C/O INDIVIDUAL ANNUITY OPERATIONS," P.O. BOX 2999,
HARTFORD, CT 06104-2999.
- --------------------------------------------------------------------------------

NO DEALER, SALESPERSON OR ANY OTHER PERSON HAS BEEN AUTHORIZED TO GIVE ANY
INFORMATION OR TO MAKE ANY REPRESENTATIONS, OTHER THAN THOSE CONTAINED IN THIS
PROSPECTUS, IN CONNECTION WITH THE OFFER CONTAINED IN THIS PROSPECTUS AND, IF
GIVEN OR MADE, SUCH OTHER INFORMATION OR REPRESENTATIONS MUST NOT BE RELIED UPON
AS HAVING BEEN AUTHORIZED BY THE FUNDS. THIS PROSPECTUS DOES NOT CONSTITUTE AN
OFFER BY THE FUNDS TO SELL OR A SOLICITATION OF ANY OFFER TO BUY ANY OF THE
SECURITIES OFFERED HEREBY IN ANY JURISDICTION TO ANY PERSON TO WHOM IT IS
UNLAWFUL FOR THE FUNDS TO MAKE SUCH OFFER.
- --------------------------------------------------------------------------------

AN INVESTMENT IN EITHER OF THE MONEY MARKET FUNDS IS NEITHER INSURED NOR
GUARANTEED BY THE U.S. GOVERNMENT. THERE CAN BE NO ASSURANCE THAT EITHER OF THE
MONEY MARKET FUNDS WILL BE ABLE TO MAINTAIN A STABLE NET ASSET VALUE OF $1.00
PER SHARE.
- --------------------------------------------------------------------------------

HARTFORD INTERNATIONAL OPPORTUNITIES FUND, INC. AND HARTFORD INTERNATIONAL
ADVISERS FUND, INC. MAY EACH INVEST UP TO 15% OF ITS ASSETS IN HIGH YIELD DEBT
SECURITIES. INVESTMENTS OF THIS TYPE INVOLVE COMPARATIVELY HIGHER RISKS,
INCLUDING PRICE VOLATILITY AND RISK OF DEFAULT IN THE PAYMENT OF INTEREST AND
PRINCIPAL, THAN HIGHER-QUALITY DEBT SECURITIES. SEE "COMMON INVESTMENT POLICIES
AND RISK FACTORS."

2
<PAGE>
HARTFORD MUTUAL FUNDS
TABLE OF CONTENTS

<TABLE>
<CAPTION>
PAGE
<S> <C>
Glossary................................................................................................... 4
Financial Highlights....................................................................................... 5
The Funds.................................................................................................. 15
Investment Objectives and Policies of the Funds............................................................ 15
Common Investment Policies and Risk Factors................................................................ 24
-Repurchase Agreements................................................................................. 24
-Illiquid Securities................................................................................... 24
-When-Issued and Delayed-Delivery Securities........................................................... 25
-Other Investment Companies............................................................................ 25
-Currency Transactions................................................................................. 26
-Options and Futures Contracts......................................................................... 26
-Non-U.S. Securities, Including ADRs and GDRs.......................................................... 28
-Mortgage-Related Securities........................................................................... 29
-Asset-Backed Securities............................................................................... 30
-Swap Agreements....................................................................................... 31
-Money Market Instruments.............................................................................. 31
-Investment Grade Securities........................................................................... 31
-High Yield Securities................................................................................. 31
-Other Risk Factors.................................................................................... 32
Management of the Funds.................................................................................... 32
-Investment Advisory and Management Services........................................................... 32
-Investment Sub-Advisory Services...................................................................... 34
-Portfolio Managers.................................................................................... 36
Administrative Services for the Funds...................................................................... 36
Expenses of the Funds...................................................................................... 37
Performance Related Information............................................................................ 37
Dividends.................................................................................................. 37
Net Asset Value............................................................................................ 38
Purchase of Fund Shares.................................................................................... 38
Sale and Redemption of Shares.............................................................................. 39
Federal Income Taxes....................................................................................... 39
Ownership and Capitalization of the Funds.................................................................. 39
-Capital Stock......................................................................................... 39
-Voting................................................................................................ 40
-Liquidation........................................................................................... 40
General Information........................................................................................ 40
-Reports to Shareholders............................................................................... 40
-Custodian, Transfer and Dividend Disbursing Agents.................................................... 40
-"Majority" Defined.................................................................................... 40
-Pending Legal Proceedings............................................................................. 40
-Requests for Information.............................................................................. 41
Appendix -- Ratings of Bonds and Commercial Paper.......................................................... 42
</TABLE>

There is the possibility that an individual Fund may be held liable for a
misstatement, inaccuracy or incomplete disclosure in this Prospectus concerning
the other Fund(s).

Additional information about the performance of each Fund, including
Management's Discussion and Analysis of results, is contained in the Funds'
annual report to shareholders, which may be obtained without charge by calling
1-800-862-6668.

3
<PAGE>
GLOSSARY

<TABLE>
<S> <C>
ADRs: American Depository Receipts
CFTC: Commodity Futures Trading Commission
CMOs: Collateralized Mortgage Obligations
Code: Internal Revenue Code of 1986, as amended
FHLMC: Federal Home Loan Mortage Corporation
FNMA: Federal National Mortgage Association
GDRs: Global Depository Receipts
GNMA: Government National Mortgage Association
IMF: International Monetary Fund
Moody's: Moody's Investors Service, Inc.
NYSE: New York Stock Exchange
1940 Act: Investment Company Act of 1940, as amended
SEC: Securities and Exchange Commission
S&P: Standard & Poor's Corporation
World International Bank for Reconstruction and Development
Bank:
</TABLE>

4
<PAGE>

HARTFORD CAPITAL APPRECIATION FUND, INC.
FINANCIAL HIGHLIGHTS (FORMERLY HARTFORD AGGRESSIVE GROWTH FUND, INC.)

THE FOLLOWING INFORMATION, INSOFAR AS IT RELATES TO EACH OF THE FIVE YEARS IN
THE PERIOD ENDED DECEMBER 31, 1994, HAS BEEN EXAMINED 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 YEAR YEAR YEAR
ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED
12/31/94 12/31/93 12/31/92 12/31/91 12/31/90 12/31/89 12/31/88 12/31/87 12/31/86 12/31/85
- ------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Net asset value at
beginning of period.... $ 3.052 $ 2.634 $ 2.607 $ 1.709 $ 2.020 $ 1.678 $ 1.341 $ 1.482 $ 1.423 $ 1.080
Net investment income... 0.011 0.003 0.008 0.021 0.029 0.023 0.015 0.025 0.019 0.016
Net realized and
unrealized gains
(losses) on
investments............ 0.070 0.526 0.388 0.898 (0.246) 0.376 0.337 (0.075) 0.106 0.366
---------- -------- -------- -------- -------- -------- -------- -------- -------- --------
Total from investment
operations............. 0.081 0.529 0.396 0.919 (0.217) 0.399 0.352 (0.050) 0.125 0.382
Dividends from net
investment income...... (0.011) (0.003) (0.008) (0.021) (0.029) (0.023) (0.015) (0.025) (0.019) (0.016)
Distribution from net
realized gains on
securities............. (0.262) (0.108) (0.361) 0.000 (0.065) (0.034) 0.000 (0.066) (0.047) (0.023)
Return of capital....... 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
---------- -------- -------- -------- -------- -------- -------- -------- -------- --------
Total from
distributions.......... (0.273) (0.111) (0.369) (0.021) (0.094) (0.057) (0.015) (0.091) (0.066) (0.039)
---------- -------- -------- -------- -------- -------- -------- -------- -------- --------
Net increase (decrease)
in net assets.......... (0.192) 0.418 0.027 0.898 (0.311) 0.342 0.337 (0.141) 0.059 0.343
Net asset value at end
of period.............. $ 2.860 $ 3.052 $ 2.634 $ 2.607 $ 1.709 $ 2.020 $ 1.678 $ 1.341 $ 1.482 $ 1.423
---------- -------- -------- -------- -------- -------- -------- -------- -------- --------
---------- -------- -------- -------- -------- -------- -------- -------- -------- --------
- ------------------------------------------------------------------------------------------------------------------------------
Total Return............ 2.50% 20.80% 16.98% 53.99% -10.90% 24.11% 26.37% -4.31% 9.03% 36.18%
Net Assets (in
thousands)............. $1,158,644 778,904 300,373 158,046 56,032 59,922 34,226 26,123 22,556 7,988
Ratio of operating
expenses in average net
assets................. 0.72% 0.76% 0.87% 0.92% 0.96% 0.94% 0.97% 1.01% 1.12% 1.48%
Ratio of net investment
income to average net
assets................. 0.40% 0.12% 0.36% 0.92% 1.58% 1.25% 0.91% 1.27% 1.23% 1.40%
Portfolio turnover
rate................... 73.3% 91.4% 100.3% 107.2% 51.8% 35.0% 48.9% 68.7% 53.9% 71.7%
- ------------------------------------------------------------------------------------------------------------------------------
</TABLE>

5
<PAGE>

HARTFORD DIVIDEND AND GROWTH FUND, INC.
FINANCIAL HIGHLIGHTS

THE FOLLOWING INFORMATION HAS BEEN EXAMINED 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)
<S> <C>
- ---------------------------------------------------------------

<CAPTION>
03/06/94-
12/31/94(A)
- ---------------------------------------------------------------
<S> <C>
Net asset value at beginning of period............ $ 1.000
Net investment income............................. 0.024
Net realized and unrealized gains (losses) on
investments...................................... (0.005)
-----------
Total from investment operations.................. 0.019
Dividends from net investment income.............. (0.024)
Distribution from net realized gains on
securities....................................... (0.001)
Return of capital................................. 0.000
-----------
Total from distributions.......................... (0.025)
-----------
Net increase (decrease) in net assets............. (0.006)
Net asset value at end of period.................. $ 0.994
-----------
-----------
- ---------------------------------------------------------------
Total Return...................................... 1.96%
Net Assets (in thousands)......................... $ 55,066
Ratio of operating expenses to average net
assets........................................... 0.83%*
Ratio of net investment income to average net
assets........................................... 3.52%*
Portfolio turnover rate........................... 27.8%
- ---------------------------------------------------------------
</TABLE>

(a) The Fund was declared effective by the Securities and Exchange Commission on
March 6, 1994.

* Annualized

6
<PAGE>
HARTFORD INDEX FUND, INC.
FINANCIAL HIGHLIGHTS

<TABLE>
<CAPTION>
(FOR A SHARE OUTSTANDING THROUGHOUT THE INDICATED PERIOD)
- --------------------------------------------------------------------------------------------------------
YEAR YEAR YEAR YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED ENDED ENDED ENDED 05/01/87-
12/31/94 12/31/93 12/31/92 12/31/91 12/31/90 12/31/89 12/31/88 12/31/87
- --------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Net asset value at
beginning of period.... $ 1.546 $ 1.450 $ 1.390 $ 1.134 $ 1.220 $ 0.960 $ 0.854 $ 1.000
Net investment income... 0.038 0.035 0.033 0.036 0.037 0.029 0.030 0.016
Net realized and
unrealized gains
(losses) on
investments............ (0.024) 0.096 0.060 0.294 (0.086) 0.260 0.106 (0.144 )
-------- -------- -------- -------- -------- -------- -------- --------
Total from investment
operations............. 0.014 0.131 0.093 0.330 (0.049) 0.289 0.136 (0.128 )
Dividends from net
investment income...... (0.038) (0.035) (0.033) (0.036) (0.037) (0.029) (0.030) (0.016 )
Distribution from net
realized gains on
securities............. 0.000 0.000 0.000 (0.038) 0.000 0.000 0.000 (0.002 )
Return of capital....... 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
-------- -------- -------- -------- -------- -------- -------- --------
Total from
distributions.......... (0.038) (0.035) (0.033) (0.074) (0.037) (0.029) (0.030) (0.018 )
-------- -------- -------- -------- -------- -------- -------- --------
Net increase (decrease)
in net assets.......... (0.024) 0.096 0.060 0.256 (0.086) 0.260 0.106 (0.146 )
Net asset value at end
of period.............. $ 1.522 $ 1.546 $ 1.450 $ 1.390 $ 1.134 $ 1.220 $ 0.960 $ 0.854
-------- -------- -------- -------- -------- -------- -------- --------
-------- -------- -------- -------- -------- -------- -------- --------
- --------------------------------------------------------------------------------------------------------
Total Return............ 0.94% 9.12% 6.82% 29.53% -3.99% 30.47% 16.35% -12.91%
Net Assets (in
thousands)............. $157,660 140,396 82,335 47,770 26,641 19,456 10,050 7,212
Ratio of operating
expenses to average net
assets................. 0.45% 0.49% 0.60% 0.67% 0.91% 1.10% 1.23% 1.35%*
Ratio of net investment
income to average net
assets................. 2.50% 2.36% 2.48% 2.89% 3.27% 2.60% 3.29% 2.39%*
Portfolio turnover
rate................... 1.8% 0.8% 1.2% 6.7% 25.5% 12.9% 20.9% 1.9%
- --------------------------------------------------------------------------------------------------------

* Annualized
</TABLE>

7
<PAGE>
HARTFORD INTERNATIONAL OPPORTUNITIES FUND, INC.
FINANCIAL HIGHLIGHTS

<TABLE>
<CAPTION>
(FOR A SHARE OUTSTANDING THROUGHOUT THE INDICATED PERIOD)
- --------------------------------------------------------------------------
YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED 07/02/90-
1994 1993 1992 1991 12/31/90(A)
- --------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net asset value at
beginning of period.... $ 1.215 $ 0.917 $ 0.973 $ 0.871 $ 1.000
Net investment income... 0.016 0.009 0.013 0.011 0.015
Net realized and
unrealized gains
(losses) on
investments............ (0.039) 0.298 (0.056) 0.102 (0.129 )
-------- -------- -------- -------- --------
Total from investment
operations............. (0.023) 0.307 (0.043) 0.113 (0.114 )
Dividends from net
investment income...... (0.016) (0.009) (0.013) (0.011) (0.015 )
Distribution from net
realized gains on
securities............. 0.000 0.000 0.000 0.000 0.000
Return of capital....... 0.000 0.000 0.000 0.000 0.000
-------- -------- -------- -------- --------
Total from
distributions.......... (0.016) (0.009) (0.013) (0.011) (0.015 )
-------- -------- -------- -------- --------
Net increase (decrease)
in net assets.......... (0.039) 0.298 (0.056) 0.102 (0.129 )
Net asset value at end
of period.............. $ 1.176 $ 1.215 $ 0.917 $ 0.973 $ 0.871
-------- -------- -------- -------- --------
-------- -------- -------- -------- --------
- --------------------------------------------------------------------------
Total Return............ -1.96% 33.73% -4.43% 13.00% -11.76%
Net Assets (in
thousands)............. $563,765 281,608 47,560 22,854 9,352
Ratio of operating
expenses to average net
assets................. 0.85% 1.00% 1.23% 1.24% 1.04%*
Ratio of net investment
income to average net
assets................. 1.42% 0.84% 1.40% 1.17% 2.65%*
Portfolio turnover
rate................... 46.4% 31.8% 25.1% 24.7% 3.0%
- --------------------------------------------------------------------------
</TABLE>

(a) The Fund was declared effective by the Securities and Exchange Commission on
July 2, 1990.

* Annualized

8
<PAGE>
HARTFORD STOCK FUND, INC.
FINANCIAL HIGHLIGHTS

<TABLE>
<CAPTION>
(FOR A SHARE OUTSTANDING THROUGHOUT THE INDICATED PERIOD)
- ------------------------------------------------------------------------------------------------------------------------------
YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED
12/31/94 12/31/93 12/31/92 12/31/91 12/31/90 12/31/89 12/31/88 12/31/87 12/31/86 12/31/85
- ------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Net asset value at
beginning of period.... $ 3.099 $ 2.965 $ 2.927 $ 2.452 $ 2.775 $ 2.304 $ 1.977 $ 2.177 $ 2.107 $ 1.711
Net investment income... 0.061 0.053 0.051 0.059 0.070 0.065 0.045 0.045 0.049 0.052
Net realized and
unrealized gains
(losses) on
investments............ (0.111) 0.339 0.219 0.532 (0.179) 0.522 0.327 0.084 0.196 0.461
---------- -------- -------- -------- -------- -------- -------- -------- -------- --------
Total from investment
operations............. (0.050) 0.392 0.270 0.591 (0.109) 0.587 0.372 0.129 0.245 0.513
Dividends from net
investment income...... (0.061) (0.053) (0.051) (0.059) (0.070) (0.065) (0.045) (0.045) (0.049) (0.052)
Distribution from net
realized gains on
securities............. (0.187) (0.205) (0.181) (0.057) (0.144) (0.051) 0.000 (0.284) (0.126) (0.065)
Return of capital....... 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
---------- -------- -------- -------- -------- -------- -------- -------- -------- --------
Total from
distributions.......... (0.248) (0.258) (0.232) (0.116) (0.214) (0.116) (0.045) (0.329) (0.175) (0.117)
---------- -------- -------- -------- -------- -------- -------- -------- -------- --------
Net increase (decrease)
in net assets.......... (0.298) 0.134 0.038 0.475 (0.323) 0.471 0.327 (0.200) 0.070 0.396
Net asset value at end
of period.............. $ 2.801 $ 3.099 $ 2.965 $ 2.927 $ 2.452 $ 2.775 $ 2.304 $ 1.977 $ 2.177 $ 2.107
---------- -------- -------- -------- -------- -------- -------- -------- -------- --------
---------- -------- -------- -------- -------- -------- -------- -------- -------- --------
- ------------------------------------------------------------------------------------------------------------------------------
Total Return............ -1.89% 14.34% 10.04% 24.58% -3.87% 26.02% 19.00% 5.41% 12.33% 31.49%
Net Assets (in
thousands)............. $1,163,158 968,425 569,903 406,489 257,553 266,756 187,511 170,319 148,126 126,344
Ratio of operating
expenses to average net
assets................. 0.50% 0.53% 0.57% 0.60% 0.66% 0.64% 0.65% 0.65% 0.66% 0.64%
Ratio of net investment
income to average net
assets................. 2.17% 1.86% 1.90% 2.14% 2.76% 2.31% 2.08% 1.83% 2.24% 2.96%
Portfolio turnover
rate................... 63.8% 69.0% 69.8% 24.3% 20.2% 24.4% 22.9% 27.0% 25.7% 32.1%
- ------------------------------------------------------------------------------------------------------------------------------
</TABLE>

9
<PAGE>
HARTFORD ADVISERS FUND, INC.
FINANCIAL HIGHLIGHTS

<TABLE>
<CAPTION>
(FOR A SHARE OUTSTANDING THROUGHOUT THE INDICATED PERIOD)
- --------------------------------------------------------------------------------------------------------------------------------
YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED
12/31/94 12/31/93 12/31/92 12/31/91 12/31/90 12/31/89 12/31/88 12/31/87 12/31/86 12/31/85
- --------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Net asset value at
beginning of period.... $ 1.752 $ 1.676 $ 1.649 $ 1.436 $ 1.543 $ 1.332 $ 1.213 $ 1.227 $ 1.179 $ 0.987
Net investment income... 0.054 0.050 0.059 0.063 0.074 0.062 0.051 0.051 0.054 0.064
Net realized and
unrealized gains
(losses) on
investments............ (0.100) 0.145 0.070 0.223 (0.059) 0.221 0.119 0.025 0.089 0.192
---------- ---------- -------- -------- -------- -------- -------- -------- -------- --------
Total from investment
operations............. (0.046) 0.195 0.129 0.286 0.015 0.283 0.170 0.076 0.143 0.256
Dividends from net
investment income...... (0.054) (0.050) (0.059) (0.063) (0.074) (0.062) (0.051) (0.051) (0.054) (0.064)
Distribution from net
realized gains on
securities............. (0.052) (0.069) (0.043) (0.010) (0.048) (0.010) 0.000 (0.039) (0.041) 0.000
Return of capital....... 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
---------- ---------- -------- -------- -------- -------- -------- -------- -------- --------
Total from
distributions.......... (0.106) (0.119) (0.102) (0.073) (0.122) (0.072) (0.051) (0.090) (0.095) (0.064)
---------- ---------- -------- -------- -------- -------- -------- -------- -------- --------
Net increase (decrease)
in net assets.......... (0.152) 0.076 0.027 0.213 (0.107) 0.211 0.119 (0.014) 0.048 0.192
Net asset value at end
of period.............. $ 1.600 $ 1.752 $ 1.676 $ 1.649 $ 1.436 $ 1.543 $ 1.332 $ 1.213 $ 1.227 $ 1.179
---------- ---------- -------- -------- -------- -------- -------- -------- -------- --------
---------- ---------- -------- -------- -------- -------- -------- -------- -------- --------
- --------------------------------------------------------------------------------------------------------------------------------
Total Return............ -2.74% 12.25% 8.30% 20.33% 1.26% 21.72% 14.24% 6.08% 12.70% 26.85%
Net Assets (in
thousands)............. $3,034,034 2,426,550 985,747 631,424 416,839 371,917 264,750 239,704 127,214 41,286
Ratio of operating
expenses to average net
assets................. 0.65% 0.69% 0.78% 0.81% 0.89% 0.89% 0.90% 0.91% 0.98% 0.97%
Ratio of net investment
income to average net
assets................. 3.34% 3.07% 3.55% 4.13% 4.65% 4.14% 3.93% 4.00% 4.36% 6.03%
Portfolio turnover
rate................... 60.0% 55.3% 72.8% 42.1% 35.7% 33.5% 30.9% 28.3% 23.3% 63.0%
- --------------------------------------------------------------------------------------------------------------------------------
</TABLE>

10
<PAGE>
HARTFORD BOND FUND, INC.
FINANCIAL HIGHLIGHTS

<TABLE>
<CAPTION>
(FOR A SHARE OUTSTANDING THROUGHOUT THE INDICATED PERIOD)
- ----------------------------------------------------------------------------------------------------------------------------
YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED
12/31/94 12/31/93 12/31/92 12/31/91 12/31/90 12/31/89 12/31/88 12/31/87 12/31/86 12/31/85
- ----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Net asset value at
beginning of period.... $ 1.044 $ 1.024 $ 1.061 $ 0.979 $ 0.976 $ 0.945 $ 0.952 $ 1.033 $ 1.007 $ 0.929
Net investment income... 0.060 0.062 0.074 0.072 0.075 0.079 0.077 0.080 0.091 0.104
Net realized and
unrealized gains
(losses) on
investments............ (0.100) 0.039 (0.019) 0.082 0.003 0.031 (0.007) (0.081) 0.026 0.078
-------- -------- -------- -------- -------- -------- -------- -------- -------- --------
Total from investment
operations............. (0.040) 0.101 0.055 0.154 0.078 0.110 0.070 (0.001) 0.117 0.182
Dividends from net
investment income...... (0.060) (0.062) (0.074) (0.072) (0.075) (0.079) (0.077) (0.080) (0.091) (0.104)
Distribution from net
realized gains on
securities............. (0.018) (0.019) (0.018) 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 0.000 0.000 0.000
-------- -------- -------- -------- -------- -------- -------- -------- -------- --------
Total from
distributions.......... (0.078) (0.081) (0.092) (0.072) (0.075) (0.079) (0.077) (0.080) (0.091) (0.104)
-------- -------- -------- -------- -------- -------- -------- -------- -------- --------
Net increase (decrease)
in net assets.......... (0.118) 0.020 (0.037) 0.082 0.003 0.031 (0.007) (0.081) 0.026 0.078
Net asset value at end
of period.............. $ 0.926 $ 1.044 $ 1.024 $ 1.061 $ 0.979 $ 0.976 $ 0.945 $ 0.952 $ 1.033 $ 1.007
-------- -------- -------- -------- -------- -------- -------- -------- -------- --------
-------- -------- -------- -------- -------- -------- -------- -------- -------- --------
- ----------------------------------------------------------------------------------------------------------------------------
Total Return............ -3.95% 10.24% 5.53% 16.43% 8.39% 12.10% 7.60% -0.01% 12.19% 20.62%
Net Assets (in
thousands)............. $247,458 239,602 128,538 97,377 70,915 61,602 54,215 50,037 57,160 43,843
Ratio of operating
expenses to average net
assets................. 0.55% 0.57% 0.64% 0.66% 0.67% 0.67% 0.69% 0.69% 0.71% 0.69%
Ratio of net investment
income to average net
assets................. 6.23% 5.93% 7.21% 7.29% 7.82% 8.09% 8.12% 8.15% 8.93% 10.73%
Portfolio turnover
rate................... 328.8% 494.3% 434.1% 337.0% 161.6% 225.0% 230.3% 53.3% 46.7% 53.7%
Current Yield*.......... 7.19% 4.93% 6.48% 6.62% 8.17% 7.92% 9.15% 8.67% 8.82% 10.29%
- ----------------------------------------------------------------------------------------------------------------------------

* The yield information will fluctuate and publication of yield 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. In
addition, the yield information may be of limited use for comparative purposes because it does not reflect charges imposed
at the Separate Account level which, if included, would decrease the yield.
</TABLE>

11
<PAGE>
HARTFORD MORTGAGE SECURITIES FUND, INC.
FINANCIAL HIGHLIGHTS

<TABLE>
<CAPTION>
(FOR A SHARE OUTSTANDING THROUGHOUT THE INDICATED PERIOD)
- ----------------------------------------------------------------------------------------------------------------------------
YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR 1/15/85
ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED TO
12/31/94 12/31/93 12/31/92 12/31/91 12/31/90 12/31/89 12/31/88 12/31/87 12/31/86 12/31/85
- ----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Net asset value at
beginning of period.... $ 1.075 $ 1.079 1.115 $ 1.054 $ 1.045 $ 1.006 $ 1.011 $ 1.087 $ 1.077 $ 1.000
Net investment income... 0.068 0.071 0.086 0.088 0.087 0.088 0.087 0.093 0.104 0.111
Net realized and
unrealized gains
(losses) on
investments............ (0.086) (0.004) (0.036) 0.061 0.009 0.039 (0.005) (0.067) 0.010 0.077
-------- -------- -------- -------- -------- -------- -------- -------- -------- --------
Total from investment
operations............. (0.018) 0.067 0.050 0.149 0.096 0.127 0.082 0.026 0.114 0.188
Dividends from net
investment income...... (0.068) (0.071) (0.086) (0.088) (0.087) (0.088) (0.087) (0.093) (0.104) (0.111)
Distribution from net
realized gains on
securities............. (0.005) 0.000 0.000 0.000 0.000 0.000 0.000 (0.009) 0.000 0.000
Return of capital....... 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
-------- -------- -------- -------- -------- -------- -------- -------- -------- --------
Total from
distributions.......... (0.073) (0.071) (0.086) (0.088) (0.087) (0.088) (0.087) (0.102) (0.104) (0.111)
-------- -------- -------- -------- -------- -------- -------- -------- -------- --------
Net increase (decrease)
in net assets.......... (0.091) (0.004) (0.036) 0.061 0.009 0.039 (0.005) (0.076) 0.010 0.077
Net asset value at end
of period.............. $ 0.984 $ 1.075 $ 1.079 $ 1.115 $ 1.054 $ 1.045 $ 1.006 $ 1.011 $ 1.087 $ 1.077
-------- -------- -------- -------- -------- -------- -------- -------- -------- --------
-------- -------- -------- -------- -------- -------- -------- -------- -------- --------
- ----------------------------------------------------------------------------------------------------------------------------
Total Return............ -1.61% 6.31% 4.64% 14.71% 9.70% 13.13% 8.38% 2.64% 11.13% 20.61%
Net Assets (in
thousands)............. $304,147 365,198 258,711 162,484 105,620 85,908 85,075 84,075 100,518 50,090
Ratio of operating
expenses to average net
assets................. 0.48% 0.49% 0.56% 0.58% 0.58% 0.58% 0.60% 0.61% 0.62% 0.66%
Ratio of net investment
income to average net
assets................. 6.65% 6.49% 7.96% 8.25% 8.42% 8.64% 8.56% 9.02% 9.57% 10.93%*
Portfolio turnover
rate................... 365.7% 183.4% 277.2% 152.2% 85.6% 91.3% 185.0% 143.6% 103.1% 124.7%
Current Yield**......... 7.84% 5.73% 7.51% 8.16% 8.21% 8.28% 9.12% 9.41% 8.90% 10.33%
- ----------------------------------------------------------------------------------------------------------------------------
</TABLE>

(a) The Fund was declared effective by the Securities and Exchange Commission on
January 15, 1985.

* Annualized

** The yield information will fluctuate and publication of yield 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. In addition, the yield information may be of limited
use for comparative purposes because it does not reflect charges imposed at
the Separate Account level which, if included, would decrease the yield.

12
<PAGE>
HVA MONEY MARKET FUND, INC.
FINANCIAL HIGHLIGHTS

<TABLE>
<CAPTION>
(FOR A SHARE OUTSTANDING THROUGHOUT THE INDICATED PERIOD)
- ----------------------------------------------------------------------------------------------------------------------------
YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED
12/31/94 12/31/93 12/31/92 12/31/91 12/31/90 12/31/89 12/31/88 12/31/87 12/31/86 12/31/85
- ----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <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 $ 1.000 $ 1.000 $ 1.000
Net investment income... 0.039 0.029 0.036 0.059 0.078 0.088 0.071 0.063 0.066 0.082
Net realized and
unrealized gains
(losses) on
investments............ 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
-------- -------- -------- -------- -------- -------- -------- -------- -------- --------
Total from investment
operations............. 0.039 0.029 0.036 0.059 0.078 0.088 0.071 0.063 0.066 0.082
Dividends from net
investment income...... (0.039) (0.029) (0.036) (0.059) (0.078) (0.088) (0.071) (0.063) (0.066) (0.082)
Distribution from net
realized gains on
securities............. 0.000 0.000 0.000 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 0.000 0.000 0.000
-------- -------- -------- -------- -------- -------- -------- -------- -------- --------
Total from
distributions.......... (0.039) (0.029) (0.036) (0.059) (0.078) (0.088) (0.071) (0.063) (0.066) (0.082)
-------- -------- -------- -------- -------- -------- -------- -------- -------- --------
Net increase (decrease)
in net assets.......... 0.000 0.000 0.000 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 $ 1.000 $ 1.000 $ 1.000
-------- -------- -------- -------- -------- -------- -------- -------- -------- --------
-------- -------- -------- -------- -------- -------- -------- -------- -------- --------
- ----------------------------------------------------------------------------------------------------------------------------
Total Return............ 3.95% 2.94% 3.63% 6.01% 8.09% 9.10% 7.40% 6.49% 6.77% 8.53%
Net Assets (in
thousands)............. $321,465 234,088 190,246 177,483 194,462 129,808 127,346 104,002 79,683 84,025
Ratio of operating
expenses to average net
assets................. 0.47% 0.48% 0.53% 0.54% 0.57% 0.58% 0.58% 0.58% 0.58% 0.55%
Ratio of net investment
income to average net
asset.................. 3.99% 2.91% 3.60% 5.88% 7.80% 8.75% 7.19% 6.36% 6.56% 8.21%
Portfolio turnover
rate................... -- -- -- -- -- -- -- -- -- --
Current Yield*.......... 5.43% 2.89% 3.09% 4.66% 7.73% 8.21% 8.49% 7.17% 5.45% 7.78%
Effective Yield*........ 5.58% 2.93% 3.14% 4.79% 8.03% 8.55% 8.85% 7.43% 5.60% 8.13%
- ----------------------------------------------------------------------------------------------------------------------------

* The yield information will fluctuate and publication of yield 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.
In addition, the yield information may be of limited use for comparative purposes because it does not reflect charges
imposed at the Separate Account level which, if included, would decrease the yield.
</TABLE>

13
<PAGE>
HARTFORD U.S. GOVERNMENT MONEY MARKET FUND, INC.
FINANCIAL HIGHLIGHTS

<TABLE>
<CAPTION>
(FOR A SHARE OUTSTANDING THROUGHOUT THE INDICATED PERIOD)
- ----------------------------------------------------------------------------------------------------------------------------
YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED
12/31/94 12/31/93 12/31/92 12/31/91 12/31/90 12/31/89 12/31/88 12/31/87 12/31/86 12/31/85
- ----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <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 $ 1.000 $ 1.000 $ 1.000
Net investment income... 0.036 0.027 0.032 0.055 0.073 0.081 0.067 0.056 0.061 0.078
Net realized and
unrealized gains
(losses) on
investments............ 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
-------- -------- -------- -------- -------- -------- -------- -------- -------- --------
Total from investment
operations............. 0.036 0.027 0.032 0.055 0.073 0.081 0.067 0.056 0.061 0.078
Dividends from net
investment income...... (0.036) (0.027) (0.032) (0.055) (0.073) (0.081) (0.067) (0.056) (0.061) (0.078)
Distribution from net
realized gains on
securities............. 0.000 0.000 0.000 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 0.000 0.000 0.000
-------- -------- -------- -------- -------- -------- -------- -------- -------- --------
Total from
distributions.......... (0.036) (0.027) (0.032) (0.055) (0.073) (0.081) (0.067) (0.056) (0.061) (0.078)
-------- -------- -------- -------- -------- -------- -------- -------- -------- --------
Net increase (decrease)
in net assets.......... 0.000 0.000 0.000 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 $ 1.000 $ 1.000 $ 1.000
-------- -------- -------- -------- -------- -------- -------- -------- -------- --------
-------- -------- -------- -------- -------- -------- -------- -------- -------- --------
- ----------------------------------------------------------------------------------------------------------------------------
Total Return............ 3.67% 2.68% 3.22% 5.61% 7.52% 8.43% 6.92% 5.75% 6.29% 8.07%
Net Assets (in
thousands)............. $9,619 9,449 10,525 11,257 10,496 7,814 7,262 5,688 5,812 6.455
Ratio of operating
expenses to average net
assets................. 0.58% 0.58% 0.75% 0.73% 0.73% 0.77% 0.75% 0.66% 0.60% 0.62%
Ratio of net investment
income to average net
asset.................. 3.63% 2.65% 3.19% 5.48% 7.29% 8.14% 6.76% 5.57% 6.08% 7.72%
Portfolio turnover
rate................... -- -- -- -- -- -- -- -- -- --
Current Yield*.......... 5.14% 2.67% 2.69% 4.24% 7.59% 7.53% 8.27% 6.17% 5.26% 7.20%
Effective Yield*........ 5.27% 2.71% 2.72% 4.31% 7.88% 7.82% 8.62% 6.36% 5.40% 7.46%
- ----------------------------------------------------------------------------------------------------------------------------

* The yield information will fluctuate and publication of yield 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. In
addition, the yield information may be of limited use for comparative purposes because its does not reflect charges imposed
at the Separate Account level which, if included, would decrease the yield.
</TABLE>

14
<PAGE>
THE FUNDS

The Funds are made available to serve as the underlying investment vehicles
for certain variable annuity and variable life insurance separate accounts of
ITT Hartford Life Insurance Companies. The Hartford Investment Management
Company, Inc. ("HIMCO" or the "Adviser") serves as investment adviser to
Hartford Index Fund, Inc., Hartford Bond Fund, Inc., Hartford Mortgage
Securities Fund, Inc., HVA Money Market Fund, Inc. and Hartford U.S. Government
Money Market Fund, Inc. and as investment manager to Hartford Capital
Appreciation Fund, Inc. (formerly Hartford Aggressive Growth Fund, Inc.),
Hartford Dividend and Growth Fund, Inc., Hartford International Opportunities
Fund, Inc., Hartford Stock Fund, Inc., Hartford Advisers Fund, Inc., and
Hartford International Advisers Fund, Inc. Wellington Management Company ("WMC"
or the "Sub-Adviser") serves as investment sub-adviser to Hartford Capital
Appreciation Fund, Inc., Hartford Dividend and Growth Fund, Inc., Hartford
International Opportunities Fund, Inc., Hartford Stock Fund, Inc., Hartford
Advisers Fund, Inc., and Hartford International Advisers Fund, Inc.

INVESTMENT OBJECTIVES AND POLICIES OF THE FUNDS

The Funds have different investment objectives and policies, as described
below. The differences in objectives and policies among the Funds can be
expected to affect the return of each Fund and the degree of market and
financial risk to which each Fund is subject. For more information about the
investment strategies employed by the Funds, see "Common Investment Policies and
Risk Factors." The investment objective of each Fund is fundamental and cannot
be changed without the affirmative vote of a majority of the outstanding voting
securities of the particular Fund. All other policies not specifically
designated as fundamental are nonfundamental and may be changed by the Board of
Directors of the particular Fund. See the Statement of Additional Information
for a complete listing of investment restrictions.

HARTFORD CAPITAL APPRECIATION FUND, INC. (FORMERLY HARTFORD AGGRESSIVE GROWTH
FUND, INC.)

Hartford Capital Appreciation Fund, Inc. (the "Capital Appreciation Fund")
was incorporated in 1983 under Maryland law.

INVESTMENT OBJECTIVE. The Capital Appreciation Fund seeks to achieve growth
of capital by investing in securities selected solely on the basis of potential
for capital appreciation; income, if any, is an incidental consideration.

INVESTMENT POLICIES. The Capital Appreciation Fund seeks to achieve its
objective by investing primarily in equity securities and securities convertible
into equity securities. The Sub-Adviser identifies, through fundamental
analysis, companies that it believes have substantial near-term capital
appreciation potential regardless of company size or industry sector. This
approach is sometimes referred to as a "stock picking" approach and results in
having all market capitalization sectors (i.e., small, medium, and large
companies) represented in the portfolio. Small and medium companies are selected
primarily on the basis of dynamic earnings growth potential. Larger companies
are selected primarily based on the expectation for a catalyst event that will
trigger stock price appreciation. Fundamental analysis involves the assessment
of a company through such factors as its business environment, management,
balance sheet, income statement, anticipated earnings, revenues, dividends, and
other related measures of value.

The Capital Appreciation Fund will invest primarily in securities issued by
U.S. companies but may also invest in securities issued by non-U.S. companies,
including those traded in U.S. markets and non-U.S. markets. Under normal
circumstances, securities of non-U.S. companies will not exceed 20% of the
Capital Appreciation Fund's total assets. The Capital Appreciation Fund's
investments in securities of non-U.S. companies may include ADRs and GDRs. When
selecting securities of non-U.S. issuers, the Sub-Adviser also will evaluate the
economic and political climate and the principal securities markets of

15
<PAGE>

the country in which an issuer is located. The Capital Appreciation Fund will be
subject to certain risks as a result of its ability to invest in the securities
of non-U.S. companies. See "Common Investment Policies and Risk Factors."

From time to time, the Capital Appreciation Fund may invest in debt
securities. The non- convertible debt securities in which the Capital
Appreciation Fund may invest include debt securities assigned within the four
highest bond rating categories by Moody's or S&P, i.e., investment grade, or
considered to be of comparable quality as determined by the Sub-Adviser. In
addition, the Capital Appreciation Fund may invest up to 5% of total assets in
high yield debt securities, commonly known as "junk bonds." Such securities are
rated as low as "C" by Moody's and S&P, or if unrated, are of comparable quality
as determined by the Sub-Adviser. See "Common Investment Policies and Risk
Factors."

Although the Capital Appreciation Fund intends to be fully invested in
equity and debt securities, it may hold cash or cash equivalents and may invest
any portion or all of its assets in high quality money market instruments in the
following circumstances: (1) during periods when the Sub- Adviser deems it
necessary for temporary defensive purposes; (2) to meet liquidity needs; or (3)
in anticipation of investment of its assets.

The Capital Appreciation Fund may invest up to 10% of its total assets in
illiquid securities and may from time to time purchase securities on a
when-issued or delayed delivery basis. In addition, the Capital Appreciation
Fund may invest to a limited extent in other investment companies and may enter
into certain currency transactions. Finally, the Capital Appreciation Fund may
invest in options, futures, and options on futures. See "Common Investment
Policies and Risk Factors."

HARTFORD DIVIDEND AND GROWTH FUND, INC.

Hartford Dividend and Growth Fund, Inc. (the "Dividend and Growth Fund") was
incorporated in 1993 under Maryland law.

INVESTMENT OBJECTIVE. The Dividend and Growth Fund seeks to achieve a high
level of current income consistent with growth of capital and reasonable
investment risk.

INVESTMENT POLICIES. The Dividend and Growth Fund seeks to achieve its
objective by investing primarily in equity securities and securities convertible
into equity securities that typically have above average income yield and whose
prospects for capital appreciation are considered favorable by the Sub-Adviser.
The Sub-Adviser uses fundamental analysis to evaluate a security for purchase or
sale by the Dividend and Growth Fund. Fundamental analysis involves the
assessment of a company through such factors as its business environment,
management, balance sheet, income statement, anticipated earnings, revenues,
dividends, and other related measures of value. As a key component of the
fundamental analysis done for the Dividend and Growth Fund, the Sub-Adviser
evaluates a company's ability to sustain and potentially increase its dividend.
The Dividend and Growth Fund's portfolio will be broadly diversified by industry
and company; the Fund seeks to diversify its investments over a carefully
selected list of securities in order to moderate the risks inherent in equity
investments.

The Dividend and Growth Fund will invest primarily in securities issued by
U.S. companies but may also invest in securities issued by non-U.S. companies,
including those traded in U.S. markets and non-U.S. markets. Under normal
circumstances, securities of non-U.S. companies will not exceed 20% of the
Dividend and Growth Fund's total assets. The Dividend and Growth Fund's
investments in securities of non-U.S. companies may include ADRs and GDRs. When
selecting securities of non-U.S. issuers, the Sub-Adviser also will evaluate the
economic and political climate and the principal securities markets of the
country in which an issuer is located. The Dividend and Growth Fund will be
subject to certain risks as a result of its ability to invest in the securities
of non-U.S. companies. See "Common Investment Policies and Risk Factors."

From time to time, the Dividend and Growth Fund may invest in debt
securities. The non- convertible debt securities in which the Dividend and
Growth Fund may invest include debt securities assigned within the four highest
bond rating categories by Moody's or S&P, i.e., investment grade, or considered
to be of comparable quality as determined by the Sub-Adviser.

16
<PAGE>

Although the Dividend and Growth Fund intends to be fully invested in equity
and debt securities, it may hold cash or cash equivalents and may invest any
portion or all of its assets in high quality money market instruments in the
following circumstances: (1) during periods when the Sub- Adviser deems it
necessary for temporary defensive purposes; (2) to meet liquidity needs; or (3)
in anticipation of investment of its assets.

The Dividend and Growth Fund may invest up to 15% of its total assets in
illiquid securities and may from time to time purchase securities on a
when-issued or delayed delivery basis. In addition, the Dividend and Growth Fund
may invest to a limited extent in other investment companies and may engage in
certain currency transactions. Finally, the Dividend and Growth Fund may invest
in options, futures, and options on futures. See "Common Investment Policies and
Risk Factors."

HARTFORD INDEX FUND, INC.

Hartford Index Fund, Inc. (the "Index Fund") was incorporated in 1983 under
Maryland law.

INVESTMENT OBJECTIVE. The Index Fund seeks to provide investment results
which approximate the price and yield performance of publicly-traded common
stocks in the aggregate.

INVESTMENT POLICIES. The Index Fund uses the Standard & Poor's 500
Composite Stock Price Index (the "Index") as its standard performance comparison
because it represents a significant proportion of the total market value of all
common stocks, is well known to investors and, in the opinion of the management
of the Index Fund, is representative of the performance of publicly-traded
common stocks. Therefore, the Index Fund attempts to approximate the capital
performance and dividend income of the Index.

The Index Fund will generally invest in no fewer than 475 stocks. The
Adviser will select stocks for the Index Fund's portfolio after taking into
account their individual weights in the Index. Temporary cash balances, normally
not expected to exceed 2% of the Index Fund's net assets, may be invested in
short-term money market instruments. The Index Fund may invest in ADRs and GDRs.
The Index Fund may also from time to time enter into stock index futures
contracts and options on such futures contracts to maintain optimal exposure to
the Index and to hedge against changes in security prices. See "Common
Investment Policies and Risk Factors."

The Index is composed of 500 selected common stocks, most of which are
listed on the New York Stock Exchange. S&P chooses the stocks to be included in
the Index on a proprietary basis. Inclusion of a stock in the Index in no way
implies an opinion by S&P as to its attractiveness as an investment; nor is S&P
a sponsor or in any other way affiliated with the Index Fund.

The weightings of stocks in the Index are based on each stock's relative
total market value, that is, its market price per share times the number of
shares outstanding. Because of this weighting, as of December 31, 1994, 50
percent of the Index was composed of the 58 largest companies, the five largest
being General Electric Co., AT&T Corp., Exxon Corp., Coca-Cola Company and Royal
Dutch Petroleum.

No attempt is made to "manage" the Index Fund's portfolio in the traditional
sense, using economic, financial and market analysis, nor will the adverse
financial situation of a company directly result in its elimination from the
Index Fund's portfolio unless, of course, the company is removed from the Index.
From time to time administrative adjustments may be made in the Index Fund's
portfolio because of mergers, changes in the composition of the Index and
similar reasons.

The Index Fund's management believes that the "indexing" approach described
above is an effective method of substantially duplicating percentage changes in
the Index. It is a reasonable expectation that the correlation between the
performance of the Index Fund (before expenses) and that of the Index will be
above 98%; a figure of 100% would indicate perfect correlation. The Index Fund
is regularly monitored to determine if it is meeting its targeted performance.
In the event of any deviation from the targeted performance, the security
holdings of the Index Fund are rebalanced to better replicate the

17
<PAGE>
Index. At some time in the future, the Board of Directors of the Index Fund may,
subject to shareholder approval, select another index if such a standard of
comparison is deemed to be more representative of the performance of common
stocks.

The Index Fund's ability to approximate the performance of the Index will
depend to some extent on the size of cash flows into and out of the Index Fund.
Investment changes to accommodate these cash flows will be made to maintain the
similarity of the Index Fund's portfolio to the Index, to the maximum
practicable extent.

HARTFORD INTERNATIONAL OPPORTUNITIES FUND, INC.

Hartford International Opportunities Fund, Inc. (the "International
Opportunities Fund") was incorporated in 1990 under Maryland law.

INVESTMENT OBJECTIVE. The International Opportunities Fund seeks to achieve
long-term total rate of return consistent with prudent investment risk through
investment primarily in equity securities issued by non-U.S. companies.

INVESTMENT POLICIES. The International Opportunities Fund seeks to achieve
its investment objective by investing in a diversified portfolio of primarily
equity securities which covers a broad range of countries, industries, and
companies. The International Opportunities Fund anticipates that, under normal
market conditions, it will diversify its investments among a minimum of five
countries; the Fund will not invest more than 20% of its net assets in
securities of issuers located in any one country, except that it may invest up
to 35% of its net assets in securities of issuers located in any one of the
following countries: Australia, Canada, France, Japan, the United Kingdom or
Germany.

Securities in which the International Opportunities Fund invests are
denominated in both U.S. dollars and non-U.S. currencies (including the European
Currency Unit) and generally are traded on non-U.S. markets.

Under normal market conditions, at least 70% of the International
Opportunities Fund's total assets will be invested in equity securities issued
by non-U.S. companies. Equity securities in which the International
Opportunities Fund invests include common stocks, preferred stocks, convertible
securities, and warrants and rights to acquire such securities. The
International Opportunities Fund may invest in ADRs and GDRs. See "Common
Investment Policies and Risk Factors." Equity investments are selected on the
basis of fundamental analysis to identify those markets and securities that
provide capital appreciation potential. Fundamental analysis involves the
assessment of a company through such factors as its business environment,
management, balance sheet, income statement, anticipated earnings, revenues,
dividends and other related measures of value. In analyzing companies for
investment, the Sub-Adviser looks for, among other things, a strong balance
sheet, attractive industry dynamics, strong competitive advantages, and
attractive relative value within the context of a security's primary trading
market. In addition to fundamental analysis of companies and industries, the
Sub-Adviser evaluates the economic and political environments of the countries
in which the securities are traded. The International Opportunities Fund's
investments in debt securities will be substantially similar to the debt
securities investments permitted for the International Advisers Fund. See
"Hartford International Advisers Fund, Inc. -- Investment Policies."

Although the International Opportunities Fund intends to be fully invested
in equity and debt securities, it may hold cash and cash equivalents (U.S.
dollars, non-U.S. currencies, multinational currency units) and may invest any
portion or all of its assets in high quality money market instruments of U.S.,
non-U.S., or supranational issuers in the following circumstances: (1) during
periods when the Sub-Adviser deems it necessary for temporary defensive
purposes; (2) to meet liquidity needs; or (3) in anticipation of investment of
its assets. The International Opportunities Fund may invest in non-U.S. money
market funds and commingled pools offered by non-U.S. banks.

The International Opportunities Fund will be subject to certain risks as a
result of its ability to invest in the securities of non-U.S. companies. The
International Opportunities Fund is permitted to invest up to 15% of its total
assets in illiquid securities and may from time to time purchase securities on a
when-

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issued or delayed delivery basis. In addition, the International Opportunities
Fund may invest to a limited extent in other investment companies and enter into
certain currency transactions. Finally, the International Opportunities Fund is
permitted to invest in options, futures and options on futures. See "Common
Investment Policies and Risk Factors."

HARTFORD STOCK FUND, INC.

Hartford Stock Fund, Inc. (the "Stock Fund") was incorporated in 1976 under
Maryland law.

INVESTMENT OBJECTIVE. The Stock Fund seeks to achieve long-term capital
growth primarily through capital appreciation, with income a secondary
consideration, by investing in primarily equity securities.

INVESTMENT POLICIES. The Stock Fund seeks to achieve its objective by
investing primarily in equity securities and securities convertible into equity
securities, using a two-tiered investment approach. First, under what is
sometimes referred to as a "top down" approach, the Sub-Adviser analyzes the
macro economic and investment environment. This includes an evaluation of
economic conditions, U.S. fiscal and monetary policy, demographic trends, and
investor sentiment. Through top down analysis, the Sub-Adviser anticipates
secular and cyclical changes and identifies industries and economic sectors that
are expected to grow faster than the overall economy.

Second, top down analysis is followed by what is sometimes referred to as a
"bottom up" approach, which is the use of fundamental analysis to identify
specific securities for purchase or sale. The Stock Fund's portfolio emphasizes
high-quality growth companies. The key characteristics of high-quality growth
companies include a leadership position within an industry, a strong balance
sheet, a high return on equity, sustainable or increasing dividends, a strong
management team, and a globally competitive position. Fundamental analysis
involves the assessment of a company through such factors as its business
environment, management, balance sheet, income statement, anticipated earnings,
revenues, dividends, and other related measures of value.

The Stock Fund will invest primarily in securities issued by U.S. companies
but may also invest in securities issued by non-U.S. companies, including those
traded in U.S. markets and non-U.S. markets. Under normal circumstances,
securities of non-U.S. companies will not exceed 20% of the Stock Fund's total
assets. The Stock Fund's investments in securities of non-U.S. companies may
include ADRs and GDRs. When selecting securities of non-U.S. issuers, the
Sub-Adviser also will evaluate the economic and political climate and the
principal securities markets of the country in which an issuer is located. The
Stock Fund will be subject to certain risks as a result of its ability to invest
in the securities of non-U.S. companies. See "Common Investment Policies and
Risk Factors."

From time to time, the Stock Fund may invest in debt securities. The
non-convertible debt securities in which the Stock Fund may invest include debt
securities assigned within the four highest bond rating categories by Moody's or
S&P, i.e., investment grade, or considered to be of comparable quality as
determined by the Sub-Adviser.

Although the Stock Fund intends to be fully invested primarily in equity
securities and securities convertible into equity securities it may hold cash or
cash equivalents and may invest any portion or all of its assets in high quality
money market instruments in the following circumstances: (1) during periods when
the Sub-Adviser deems it necessary for temporary defensive purposes; (2) to meet
liquidity needs; or (3) in anticipation of investment of its assets.

The Stock Fund may invest up to 10% of its total assets in illiquid
securities and may from time to time purchase securities on a when-issued or
delayed delivery basis. In addition, the Stock Fund may invest to a limited
extent in other investment companies and may enter into certain currency
transactions. Finally, the Stock Fund may invest in options, futures and options
on futures. See "Common Investment Policies and Risk Factors."

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HARTFORD ADVISERS FUND, INC.

Hartford Advisers Fund, Inc. (the "Advisers Fund") was incorporated in 1982
under Maryland law.

INVESTMENT OBJECTIVE. The Advisers Fund seeks to achieve maximum long-term
total rate of return consistent with prudent investment risk by investing in
common stock and other equity securities, bonds and other debt securities, and
money market instruments.

INVESTMENT POLICIES. The Advisers Fund seeks to achieve its objective
through the active allocation of its assets among the asset categories of equity
and debt securities and money market instruments, based upon the Sub-Adviser's
judgment of the projected investment environment for financial assets, relative
fundamental values and attractiveness of each asset category, and expected
future returns of each asset category. The Sub-Adviser will base its asset
allocation decisions on fundamental analysis and will not attempt to make
short-term market timing decisions among asset categories. As a result, shifts
in asset allocation are expected to be gradual and continuous and the Advisers
Fund will normally have some portion of its assets invested in each asset
category. The Advisers Fund does not have percentage limitations on the amount
allocated to each asset category.

The Advisers Fund's investments in equity securities and securities that are
convertible into equity securities will be substantially similar to the
investments permitted for the Stock Fund. See "Hartford Stock Fund, Inc. --
Investment Policies." The Advisers Fund's investments in debt securities will be
substantially similar to the investments permitted for the Bond Fund. See
"Hartford Bond Fund, Inc. -- Investment Policies." In the event a security owned
by the Advisers Fund is downgraded to a rating category below investment grade,
the Advisers Fund generally will sell it within a reasonable period thereafter
based on the Sub-Adviser's outlook for the issuer and the security.

The Advisers Fund will invest primarily in securities issued by U.S.
companies but may also invest in securities issued by non-U.S. companies,
including those traded in U.S. markets and non-U.S. markets. Under normal
circumstances, securities of non-U.S. companies will not exceed 20% of the
Advisers Fund's total assets. The Advisers Fund's investments in securities of
non-U.S. companies may include ADRs and GDRs. When selecting securities of
non-U.S. issuers, the Sub-Adviser also will evaluate the economic and political
climate and the principal securities markets of the country in which an issuer
is located. The Advisers Fund will be subject to certain risks as a result of
its ability to invest in the securities of non-U.S. companies. See "Common
Investment Policies and Risk Factors."

The Advisers Fund may hold cash and cash equivalents and may invest any
portion or all of its assets in high quality money market instruments in the
following circumstances: (1) when the Sub-Adviser expects returns on such
instruments to be attractive relative to investments in equity and debt
securities; (2) during periods when the Sub-Adviser deems it necessary for
temporary defensive purposes; (3) to meet liquidity needs; or (4) in
anticipation of investment of its assets.

The Advisers Fund may invest up to 10% of its total assets in illiquid
securities and may from time to time purchase securities on a when-issued or
delayed delivery basis. In addition, the Advisers Fund may invest to a limited
extent in other investment companies and enter into certain currency
transactions. Finally, the Advisers Fund may invest in options, futures, and
options on futures. See "Common Investment Policies and Risk Factors."

HARTFORD INTERNATIONAL ADVISERS FUND, INC.

Hartford International Advisers Fund, Inc. (the "International Advisers
Fund") was incorporated in 1994 under Maryland law.

INVESTMENT OBJECTIVE. The International Advisers Fund seeks to achieve
maximum long-term total rate of return consistent with prudent investment risk.

INVESTMENT POLICIES. The International Advisers Fund seeks to achieve its
objective through the active allocation of its assets among the asset categories
of equity and debt securities and money market instruments, based upon its
judgment of the projected investment environment for financial assets, relative
fundamental values and attractiveness of each asset category, and expected
future

20
<PAGE>
returns of each asset category. The Sub-Adviser will base its asset allocation
decisions on fundamental analysis and will not attempt to make short-term timing
decisions among asset categories. As a result, shifts in asset allocation are
expected to be gradual and continuous and the International Advisers Fund will
normally have some portion of its assets invested in each asset category at all
times. The International Advisers Fund does not have percentage limitations on
the amount allocated to each asset category.

The International Advisers Fund will consist of a diversified portfolio of
securities covering a broad range of countries, industries, and companies. The
International Advisers Fund anticipates that, under normal market conditions, it
will diversify its investments among a minimum of five countries; the Fund will
not invest more than 20% of its net assets in securities of issuers located in
any one country, except that it may invest up to 35% of its net assets in
securities of issuers located in any one of the following countries: Australia,
Canada, France, Japan, the United Kingdom or Germany.

Securities in which the International Advisers Fund invests are denominated
in both U.S. dollars and non-U.S. currencies (including the European Currency
Unit) and generally are traded on non-U.S. markets.

The International Advisers Fund's investments in equity securities will be
substantially similar to the equity securities investments permitted for the
International Opportunities Fund. See "Hartford International Opportunities
Fund, Inc. -- Investment Policies."

The International Advisers Fund's investments in debt securities include,
but are not limited to: (1) debt securities issued or guaranteed by the U.S.
Government, its agencies or instrumentalities; (2) debt obligations issued or
guaranteed by a non-U.S. sovereign government or one of its agencies or
political subdivisions, including Brady Bonds (see "Common Investment Policies
and Risk Factors"); (3) debt obligations issued or guaranteed by supranational
organizations such as the World Bank; (4) debt obligations of non-U.S. banks and
bank holding companies; (5) non- U.S. corporate debt securities; (6) debt
obligations of U.S. banks and corporations; (7) non-U.S. commercial paper; (8)
asset-backed securities and mortgage-related securities, including CMOs; these
debt securities will be rated investment grade by Moody's or S&P, or, if
unrated, will be determined by the Sub-Adviser to be of comparable quality (see
"Common Investment Policies and Risk Factors"); and (9) repurchase agreements
involving any of the foregoing. The International Advisers Fund's investments in
debt securities will be based on an analysis of such factors as yield, credit
quality, economic policies, inflation rates, and the pace of economic growth in
various markets.

Debt securities in which the International Advisers Fund may invest include
investment grade, non-convertible debt securities assigned within the four
highest bond rating categories by Moody's or S&P, or, if unrated, which are
determined by the Sub-Adviser to be of comparable quality. In addition, the
International Advisers Fund may invest up to 15% of its total assets in high
yield debt securities, commonly known as "junk bonds." Such securities are rated
as low as "C" by Moody's and by S&P, or, if unrated, are of comparable quality
as determined by the Sub-Adviser. See "Common Investment Policies and Risk
Factors."

The International Advisers Fund may hold cash and cash equivalents (U.S.
dollars, non-U.S. currencies, multinational currency units) and may invest any
portion or all of its assets in high quality money market instruments,
including, but not limited to, instruments of U.S., non-U.S., or supranational
issuers. These money market instruments may also include non-U.S. money market
funds and commingled pools offered by non-U.S. banks. The International Advisers
Fund may invest in high quality money market instruments in the following
circumstances: (1) when the Sub-Adviser expects returns on such instruments to
be attractive relative to investments in equity and debt securities; (2) during
periods when the Sub-Adviser deems it necessary for temporary defensive
purposes; (3) to meet liquidity needs; or (4) in anticipation of investment of
its assets.

The International Advisers Fund will be subject to certain risks as a result
of its ability to invest in the securities of non-U.S. companies. The
International Advisers Fund may invest up to 15% of its total assets in illiquid
securities and may from time to time purchase securities on a when- issued or
delayed

21
<PAGE>
delivery basis. In addition, the International Advisers Fund may invest to a
limited extent in other investment companies and may enter into certain currency
transactions. Finally, the International Advisers Fund may invest in options,
futures, and options on futures. See "Common Investment Policies and Risk
Factors."

HARTFORD BOND FUND, INC.

Hartford Bond Fund, Inc. (the "Bond Fund") was incorporated in 1982 under
Maryland law.

INVESTMENT OBJECTIVE. The Bond Fund seeks to achieve maximum current income
consistent with preservation of capital by investing primarily in fixed-income
securities.

INVESTMENT POLICIES. The Bond Fund's investments in bonds and other debt
securities include: (i) securities issued or guaranteed as to principal or
interest by the U.S. Government, its agencies or instrumentalities; (ii)
publicly-traded, non-convertible debt securities issued or guaranteed by U.S.
corporations or other issuers and rated investment grade by Moody's or S&P, or
if unrated, determined by the Adviser to be of comparable quality; (iii)
asset-backed securities and mortgage- related securities, including CMOs, which
are rated investment grade by Moody's or S&P, or, if unrated, which are
determined by the Adviser to be of comparable quality (see "Common Investment
Policies and Risk Factors"); (iv) securities issued or guaranteed as to
principal or interest by a sovereign government or one of its agencies or
political subdivisions, supranational entities such as development banks,
non-U.S. corporations, banks or bank holding companies, or other non- U.S.
issuers and rated investment grade by Moody's or S&P, or, if unrated, which are
determined by the Adviser to be of comparable quality. Bonds and other debt
securities owned by the Bond Fund will be denominated in U.S. dollars. In the
event a security owned by the Bond Fund is downgraded to a rating category below
investment grade, the Bond Fund generally will sell it within a reasonable
period thereafter based on the Adviser's outlook for the issuer and the
security.

The Bond Fund will invest primarily in securities issued by U.S. companies
but may also invest in securities issued by non-U.S. companies, including those
traded in U.S. markets and non-U.S. markets. Under normal circumstances,
securities of non-U.S. companies will not exceed 20% of the Bond Fund's total
assets. The Bond Fund's investments in securities of non-U.S. companies may
include ADRs and GDRs. When selecting securities of non-U.S. issuers, the
Adviser also will evaluate the economic and political climate, and the principal
securities markets of the country in which an issuer is located. The Bond Fund
will be subject to certain risks as a result of its ability to invest in the
securities of non-U.S. companies. See "Common Investment Policies and Risk
Factors."

The Bond Fund will invest at least 65% of its total assets in bonds and debt
securities with a maturity of at least one year. The Bond Fund may invest up to
15% of its total assets in preferred stocks, convertible securities, and
securities carrying warrants to purchase equity securities. The Bond Fund will
not invest in common stocks directly, but may retain, for reasonable periods of
time, common stocks acquired upon conversion of debt securities or upon exercise
of warrants acquired with debt securities.

Although the Bond Fund intends to be fully invested in equity and debt
securities, it may hold cash or cash equivalents and may invest any portion or
all of its assets in high quality money market instruments in the following
circumstances: (1) during periods when the Adviser deems it necessary for
temporary defensive purposes; (2) to meet liquidity needs; or (3) in
anticipation of investment of its assets.

The Bond Fund may invest up to 10% of its total assets in illiquid
securities and may from time to time purchase securities on a when-issued or
delayed delivery basis. In addition, the Bond Fund may invest to a limited
extent in other investment companies.

HARTFORD MORTGAGE SECURITIES FUND, INC.

Hartford Mortgage Securities Fund, Inc. (the "Mortgage Securities Fund") was
incorporated in 1984 under Maryland law.

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<PAGE>

INVESTMENT OBJECTIVE. The Mortgage Securities Fund seeks maximum current
income consistent with safety of principal and maintenance of liquidity by
investing primarily in mortgage-related securities, including securities issued
by the Government National Mortgage Association.

INVESTMENT POLICIES. The Mortgage Securities Fund seeks to achieve its
objective by investing, under normal circumstances, at least 65% of its total
assets in high quality mortgage-related securities either (i) issued by U.S.
Government agencies, instrumentalities or sponsored corporations or (ii) rated A
or better by Moody's or S&P or, if not rated, which are of equivalent investment
quality as determined by the Adviser. At times the Mortgage Securities Fund may
invest in mortgage-related securities not meeting the foregoing investment
quality standards when the Adviser deems such investments to be consistent with
the Fund's investment objective; however, no such investments will be made in
excess of 20% of the value of the Fund's total assets. Such investments will be
considered mortgage-related securities for purposes of the policy that the Fund
invest at least 65% of the value of its total assets in mortgage-related
securities, including securities issued by the GNMA. See "Common Investment
Policies and Risk Factors".

Consistent with its objective, the Mortgage Securities Fund may seek to
increase its current return by writing covered call or covered put options with
respect to some or all of the securities held in its portfolio. In addition,
through the writing and purchase of options and the purchase and sale of
interest rate futures contracts and related options, the Mortgage Securities
Fund may at times seek to reduce fluctuations in net asset value by hedging
against a decline in the value of securities owned by the Fund or an increase in
the price of securities which the Fund plans to purchase. The Mortgage
Securities Fund may also invest up to 10% of its total assets in illiquid
securities, purchase asset-backed securities, and enter into swap transactions.
See "Common Investment Policies and Risk Factors."

Although the Mortgage Securities Fund intends to be fully invested in debt
securities, it may hold cash or cash equivalents and invest any portion or all
of its assets in high quality money market instruments in the following
circumstances: (1) during periods when the Sub-Adviser deems it necessary for
temporary defensive purposes; (2) to meet liquidity needs; or (3) in
anticipation of investment of its assets.

HARTFORD U.S. GOVERNMENT MONEY MARKET FUND, INC.

Hartford U.S. Government Money Market Fund, Inc. (the "U.S. Government Money
Market Fund") was incorporated in 1982 under Maryland law.

INVESTMENT OBJECTIVE. The U.S. Government Money Market Fund seeks to
achieve maximum current income consistent with preservation of capital.

INVESTMENT POLICIES. The U.S. Government Money Market Fund's portfolio will
consist entirely of cash and investments permitted by Rule 2a-7 under the 1940
Act. Each has an effective maturity date of 397 days or less, computed in
accordance with Rule 2a-7, from date of purchase. The average maturity of the
portfolio will vary according to the Adviser's appraisal of money market
conditions and will not exceed 90 days.

The U.S. Government Money Market Fund seeks to achieve its objective by
investing in short-term, marketable obligations issued or guaranteed by the U.S.
Government or by agencies or instrumentalities of the U.S. Government, whether
or not they are guaranteed by the full faith and credit of the U.S. government.

HVA MONEY MARKET FUND, INC.

HVA Money Market Fund, Inc. (the "Money Market Fund") was incorporated in
1982 under Maryland law.

INVESTMENT OBJECTIVE. The Money Market Fund seeks to achieve maximum
current income consistent with liquidity and preservation of capital.

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<PAGE>

INVESTMENT POLICIES. The Money Market Fund's portfolio will consist
entirely of cash and investments permitted under Rule 2a-7 of the 1940 Act. Each
has an effective maturity date of 397 days or less computed in accordance with
Rule 2a-7. The average maturity of the portfolio will vary according to the
Adviser's appraisal of money market conditions and will not exceed 90 days.

The Money Market Fund seeks to achieve its objective by investing in money
market securities such as, but not limited to: (a) banker's acceptances; (b)
obligations of governments (whether U.S. or non-U.S.) and their agencies and
instrumentalities; (c) short-term corporate obligations, including commercial
paper, notes, and bonds; (d) other short- term debt obligations; (e) obligations
of U.S. banks, non-U.S. branches of U.S. banks (Eurodollars), U.S. branches and
agencies of non-U.S. banks (Yankee dollars), and non-U.S. branches of non-U.S.
banks; and (f) asset-backed securities. See "Common Investment Policies and Risk
Factors." Under normal circumstances, foreign securities will not exceed 25% of
the Money Market Fund's total assets.

The Money Market 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 Money Market
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
Adviser deems that such transactions will improve the yield or return of the
portfolio.

COMMON INVESTMENT POLICIES AND RISK FACTORS

REPURCHASE AGREEMENTS

The Funds may enter into repurchase agreements with respect to securities
issued or guaranteed by the U.S. Government, with commercial banks having assets
in excess of $1 billion or with recognized government securities dealers with
net capital in excess of $50 million. The Funds' Boards of Directors have
established standards for evaluation of the creditworthiness of the banks and
securities dealers with which the Funds will engage in repurchase agreements and
monitors on a quarterly basis the Adviser's and Sub-Adviser's compliance with
such standards.

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.
It may also be viewed as the loan of money by a Fund to the seller. The resale
price normally is in excess of the purchase price, reflecting an agreed upon
market rate. The rate is effective for the period of time a Fund is invested in
the agreement and is not related to the coupon rate on the underlying security.
The period of these repurchase agreements will usually be short, from overnight
to one week, and at no time will a Fund invest in repurchase agreements for a
period of more than one year. The securities which are subject to repurchase
agreements, however, may have maturity dates in excess of one year from the
effective date of the repurchase agreement. A Fund will always receive as
collateral securities whose market value, including accrued interest, will be at
least equal to 100% of the dollar amount invested by a Fund in each agreement,
and a Fund will make payment for such securities only upon physical delivery or
evidence of book entry transfer. If the seller defaults, a 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. A
Fund may not enter into a repurchase agreement with more than seven days to
maturity if, as a result, more than 10% of the Fund's total assets would be
invested in such repurchase agreements together with any other investment for
which market quotations are not readily available.

ILLIQUID SECURITIES

Each Fund, except the Index Fund, the U.S. Government Money Market Fund and
the Money Market Fund, is permitted to invest in illiquid securities. No
illiquid securities will be acquired if upon the purchase more than 10% or 15%
of the value of a Fund's total assets, varying by Fund (15% for the Dividend and
Growth Fund, International Advisers Fund and International Opportunities Fund,
10% for the Advisers

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<PAGE>

Fund, Capital Appreciation Fund, Bond Fund, Mortgage Securities Fund and Stock
Fund), would consist of these securities. "Illiquid securities" are securities
that may not be sold or disposed of in the ordinary course of business within
seven days at approximately the price used to determine a Fund's net asset
value.

Under current interpretations of the SEC Staff, the following securities in
which a Fund may invest will be considered illiquid: (1) repurchase agreements
maturing in more than seven days; (2) certain restricted securities (securities
whose public resale is subject to legal or contractual restrictions); (3)
options, with respect to specific securities, not traded on a national
securities exchange that are not readily marketable; and (4) any other
securities in which a Fund may invest that are not readily marketable.

These Funds may purchase without limit, however, certain restricted
securities that can be resold to qualifying institutions pursuant to a
regulatory exemption under Rule 144A under the 1933 Act ("Rule 144A
securities"). If a dealer or institutional trading market exists for Rule 144A
securities, such securities are deemed to be liquid and thus treated as exempt
from a Fund's 10% or 15% limitation on the investment in illiquid securities.
Under the supervision of the Board of Directors, the Adviser or Sub-Adviser
determines the liquidity of Rule 144A securities and, through reports from the
Adviser or Sub-Adviser, the Board of Directors monitors trading activity in
these securities. In reaching liquidity decisions, the Adviser or Sub-Adviser
will consider, among other things, the following factors: (1) the frequency of
trades and price quotes for the security; (2) the number of dealers willing to
purchase or sell the security and the number of other potential purchasers; (3)
dealer undertakings to make a market in the security; and (4) the nature of the
security and the marketplace trades (e.g., the time needed to dispose of the
security, the method of soliciting offers, and the procedures for transfer).
Because institutional trading in Rule 144A securities is relatively new, it is
difficult to predict accurately how these markets will develop. If institutional
trading in Rule 144A securities declines, a Fund's liquidity could be adversely
affected to the extent that a Fund is invested in such securities.

WHEN-ISSUED AND DELAYED-DELIVERY SECURITIES

The Capital Appreciation Fund, the Dividend and Growth Fund, the
International Opportunities Fund, the Stock Fund, the Index Fund, the Advisers
Fund, the International Advisers Fund, the Bond Fund and the Mortgage Securities
Fund may purchase or sell securities on a when-issued or delayed-delivery basis.
When-issued or delayed-delivery transactions arise when securities are purchased
or sold with payment and delivery taking place in the future in order to secure
what is considered to be an advantageous price and yield at the time of entering
into the transaction. While these Funds will purchase securities on a
when-issued or delayed-delivery basis only with the intention of acquiring the
securities, the Funds may sell the securities before the settlement date, if the
Adviser or Sub-Adviser deems it advisable. At the time a Fund makes the
commitment to purchase securities on a when-issued or delayed-delivery basis,
the Fund will record the transaction and thereafter reflect the value, each day,
of such security in determining the net asset value of the Fund. At the time of
delivery of the securities, the value may be more or less than the purchase
price. The Funds' custodian will maintain, in a segregated account of the Fund,
cash, U.S. Government securities or other liquid, high-grade debt obligations
having a value equal to or greater than the Fund's purchase commitments; the
custodian will likewise segregate securities sold on a delayed-delivery basis.

OTHER INVESTMENT COMPANIES

The Capital Appreciation Fund, the Dividend and Growth Fund, the
International Opportunities Fund, the Bond Fund, the Stock Fund, the Advisers
Fund, and the International Advisers Fund are permitted to invest in other
investment companies. Securities issued in certain countries are currently
accessible to the Funds only through such investments. The investment in other
investment companies is limited in amount by the 1940 Act, and will involve the
indirect payment of a portion of the expenses, including advisory fees, of such
other investment companies. No Fund may acquire more than 3% of the

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outstanding voting securities of any other investment company, and no Fund may
have more than 5% of its total assets invested in any other investment company.
See "Investment Restrictions of the Funds" in the Statement of Additional
Information.

CURRENCY TRANSACTIONS

The Capital Appreciation Fund, the Dividend and Growth Fund, the
International Opportunities Fund, the Stock Fund, the Advisers Fund and the
International Advisers Fund may engage in currency transactions to hedge the
value of portfolio securities denominated in particular currencies against
fluctuations in relative value. Currency transactions include forward currency
contracts, exchange-listed and over-the-counter ("OTC") currency futures
contracts and options thereon, exchange listed and OTC options on currencies,
and currency swaps.

These Funds may invest in forward currency contracts, which involve a
privately negotiated obligation to purchase or sell a specific currency at a
future date, which may be any fixed number of days from the date of the contract
agreed upon by the parties, at a price set at the time of the contract. In
addition, these Funds may engage in currency swaps, which are agreements to
exchange cash flows based on the notional difference among two or more
currencies. See "Swap Agreements." These Funds also may engage in
exchange-listed and OTC currency futures contracts and options thereon, and
exchange listed and OTC options on currencies. See "Options and Futures
Contracts."

These Funds may cross-hedge currencies by entering into transactions to
purchase or sell one or more currencies that are expected to increase or decline
in value relative to other currencies to which the Funds have, or in which the
Funds expect to have, exposure. To reduce the effect of currency fluctuation on
the value of existing or anticipated holdings of their securities, these Funds
may also engage in proxy hedging. Proxy hedging is used when the currency to
which a portfolio holding is exposed is difficult to hedge generally or
difficult to hedge against the U.S. dollar. Proxy hedging entails entering into
a forward contract to buy U.S. dollars and to sell a currency, the changes in
the value of which generally are considered to be linked to the currency to
which the portfolio holding is exposed. The amount of the contract would not
exceed the market value of the Fund's securities denominated in the linked
currency.

The use of currency transactions to protect the value of a Fund's assets
against a decline in the value of a currency does not eliminate fluctuations in
the value of the Fund's underlying securities. Further, these Funds may enter
into currency transactions only with counterparties that the Sub-Adviser deems
to be creditworthy.

OPTIONS AND FUTURES CONTRACTS

In seeking to protect against the effect of changes in equity market values,
currency exchange rates or interest rates that are adverse to the present or
prospective position of the Funds, for cash flow management, and, to a lesser
extent, to enhance returns, the Capital Appreciation Fund, the Dividend and
Growth Fund, the Index Fund, the International Opportunities Fund, the Stock
Fund, the Advisers Fund, the International Advisers Fund, the Bond Fund and the
Mortgage Securities Fund may employ certain hedging, income enhancement and risk
management techniques, including the purchase and sale of options, futures and
options on futures involving equity and debt securities and foreign currencies,
aggregates of equity and debt securities, indices of prices of equity and debt
securities, and other financial indices. A Fund's ability to engage in these
practices may be limited by tax considerations and certain other legal
considerations.

These Funds may write covered call options or purchase covered put options
on portfolio securities as a partial hedge (to the extent of the premium
received less transaction costs) against a decline in the value of portfolio
securities and in circumstances in which the Adviser or the Sub-Adviser
anticipates that the price of the underlying securities will not increase above
the exercise price of the option by an amount greater than the premium received
(less transaction costs incurred) by the Fund. This strategy limits potential
capital appreciation in the portfolio securities subject to the put or call
option.

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These Funds may also write covered put and call options and purchase put and
call options on foreign currencies to hedge against the risk of foreign exchange
fluctuations on foreign securities the particular Fund holds in its portfolio or
that it intends to purchase. For example, if a Fund enters into a contract to
purchase securities denominated in foreign currency, it could effectively
establish the maximum U.S. dollar cost of the securities by purchasing call
options on that foreign currency. Similarly, if a Fund held securities
denominated in a foreign currency and anticipated a decline in the value of that
currency against the U.S. dollar, the Fund could hedge against such a decline by
purchasing a put option on the foreign currency involved.

In addition, these Funds may purchase put and call options and write covered
put and call options on aggregates of equity and debt securities, indices of
prices of equity and debt securities and other financial indices, and may enter
into futures contracts and options thereon for the purchase or sale of
aggregates of equity and debt securities, indices of equity and debt securities
and other financial indices, all for the purpose of protecting against potential
changes in the market value of portfolio securities or in interest rates.
Aggregates are composites of equity or debt securities that are not tied to a
commonly known index. An index is a measure of the value of a group of
securities or other interests. An index assigns relative values to the
securities included in that index, and the index fluctuates with changes in the
market value of those securities.

These Funds may write covered options only. "Covered" means that, so long as
a Fund is obligated as the writer of a call option, it will own either the
underlying securities or currency or an option to purchase the same underlying
securities or currency having an expiration date not earlier than the expiration
date of the covered option and an exercise price equal to or less than the
exercise price of the covered option, or will establish or maintain with its
custodian for the term of the option a segregated account consisting of cash,
U.S. Government securities or other liquid, high grade debt obligations having a
value equal to the fluctuating market value of the optioned securities or
currencies. A Fund will cover any put option it writes by maintaining a
segregated account with its custodian as described above. A Fund will not write
covered call options on portfolio securities representing more than 25% of the
value of its total assets.

To hedge against fluctuations in currency exchange rates, these Funds may
purchase or sell foreign currency futures contracts, and write put and call
options and purchase put and call options on such futures contracts. For
example, a Fund may use foreign currency futures contracts when it anticipates a
general weakening of the foreign currency exchange rate that could adversely
affect the market values of the Fund's foreign securities holdings. In this
case, the sale of futures contracts on the underlying currency may reduce the
risk of the Fund of a reduction in market value caused by foreign currency
variations and, by so doing, provide an alternative to the liquidation of
securities positions in the Fund and resulting transaction costs. When the Fund
anticipates a significant foreign exchange rate increase while intending to
invest in a non-U.S. security, the Fund may purchase a foreign currency futures
contract to hedge against a rise in foreign exchange rates pending completion of
the anticipated transaction. Such a purchase of a futures contract would serve
as a temporary measure to protect the Fund against any rise in the foreign
exchange rate that may add additional costs to acquiring the non-U.S. security
position. The Fund similarly may use futures contracts on equity and debt
securities to hedge against fluctuations in the value of securities it owns or
expects to acquire.

These Funds also may purchase call or put options on foreign currency
futures contracts to obtain a fixed foreign exchange rate at limited risk. A
Fund may purchase a call option on a foreign currency futures contract to hedge
against a rise in the foreign exchange rate while intending to invest in a non-
U.S. security of the same currency. A Fund may purchase put options on foreign
currency futures contracts to hedge against a decline in the foreign exchange
rate or the value of its non-U.S. portfolio securities. A Fund may write a call
option on a foreign currency futures contract as a partial hedge against the
effects of declining foreign exchange rates on the value of non-U.S. securities
and in circumstances in which the Fund anticipates that the foreign exchange
rate will not increase above the exercise price of the option by an amount
greater than the premium received (less transaction costs incurred by the Fund).
This strategy will limit potential capital appreciation in the underlying
currency.

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To the extent that a Fund enters into futures contracts, options on futures
contracts and options on foreign currencies that are traded on an exchange
regulated by the CFTC, in each case that are not for BONA FIDE hedging purposes
(as defined by the CFTC), the aggregate initial margin and premiums required to
establish those positions may not exceed 5% of the liquidation value of the
Fund's portfolio, after taking into account the unrealized profits and
unrealized losses on any such contracts the Fund has entered into. However, the
"in-the-money" amount of such options may be excluded in computing the 5% limit.
Adoption of this guideline will not limit the percentage of the Fund's assets at
risk to 5%.

Although any one Fund may not employ all or any of the foregoing strategies,
its use of options, futures and options thereon and forward currency contracts
(as described under "Currency Transactions") would involve certain investment
risks and transaction costs to which it might not be subject were such
strategies not employed. Such risks include: (1) dependence on a Fund's ability
to predict movements in the prices of individual securities, fluctuations in the
general securities markets or market sections and movements in interest rates
and currency markets; (2) imperfect correlation between movements in the price
of the securities or currencies hedged or used for cover; (3) the fact that
skills and techniques needed to trade options, futures contracts and options
thereon or to use forward currency contracts are different from those needed to
select the securities in which a Fund invests; (4) lack of assurance that a
liquid secondary market will exist for any particular option, futures contract,
option thereon or forward contract at any particular time, which may affect a
Fund's ability to establish or close out a position; (5) possible impediments to
effective portfolio management or the ability to meet current obligations caused
by the segregation of a large percentage of a Fund's assets to cover its
obligations; and (6) the possible need to defer closing out certain options,
futures contracts, options thereon and forward contracts in order to continue to
qualify for the beneficial tax treatment afforded "regulated investment
companies" under the Code. In the event that the anticipated change in the price
of the securities or currencies that are the subject of such a strategy does not
occur, it may be that a Fund would have been in a better position had it not
used such a strategy at all.

NON-U.S. SECURITIES, INCLUDING ADRS AND GDRS

Each Fund, except the Mortgage Securities Fund and the U.S. Government Money
Market Fund, is permitted to invest a portion of its assets in non-U.S.
securities, including, in the case of permitted equity investments, ADRs and
GDRs, as described under each Fund's investment objective and policies. ADRs are
certificates issued by a U.S. bank or trust company and represent the right to
receive securities of a non-U.S. issuer deposited in a domestic bank or non-U.S.
branch of a U.S. bank. ADRs are traded on a U.S. securities exchange, or in an
over-the-counter market, and are denominated in U.S. dollars. GDRs are
certificates issued globally and evidence a similar ownership arrangement. GDRs
are traded on non-U.S. securities exchanges and are denominated in non-U.S.
currencies. The value of an ADR or a GDR will fluctuate with the value of the
underlying security, will reflect any changes in exchange rates and otherwise
will involve risks associated with investing in non-U.S. securities.

The International Opportunities Fund and the International Advisers Fund are
permitted to invest in Brady Bonds, which are debt securities issued under the
framework of the Brady Plan, an initiative announced by former U.S. Treasury
Secretary Nicholas F. Brady in 1989 as a mechanism for debtor nations to
restructure their outstanding external commercial bank debt. In restructuring
its external debt under the Brady Plan framework, a debtor nation negotiates
with its existing bank lenders as well as multilateral institutions such as the
World Bank and the IMF. The Brady Plan framework, as it has developed,
contemplates the exchange of commercial bank debt for newly issued bonds ("Brady
Bonds"). Brady Bonds may also be issued in respect of new money being advanced
by existing lenders in connection with debt restructuring. Agreements
implemented under the Brady Plan to date are designed to achieve debt and
debt-service reduction through specific options negotiated by a debtor nation
with its creditors. As a result, the financial packages offered by each country
differ. Brady Bonds issued to date may be purchased and sold in the secondary
markets through U.S. securities dealers and other financial institutions and are
generally maintained through European securities depositories. See also "High
Yield Securities."

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Investing in securities issued by non-U.S. companies involves considerations
and potential risks not typically associated with investing in obligations
issued by U.S. companies. Less information may be available about non-U.S.
companies than about U.S. companies and non-U.S. companies generally are not
subject to uniform accounting, auditing and financial reporting standards or to
other regulatory practices and requirements comparable to those applicable to
U.S. companies. The values of non-U.S. investments are affected by changes in
currency rates or exchange control regulations, restrictions or prohibition on
the repatriation of non-U.S. currencies, application of non-U.S. tax laws,
including withholding taxes, changes in governmental administration or economic
or monetary policy (in the U.S. or outside the U.S.) or changed circumstances in
dealings between nations. Costs are also incurred in connection with conversions
between various currencies.

Investing in non-U.S. sovereign debt will expose a Fund to the direct or
indirect consequences of political, social or economic changes in the developing
and emerging countries that issue the securities. The ability and willingness of
sovereign obligors in developing and emerging countries or the governmental
authorities that control repayment of their external debt to pay principal and
interest on such debt when due may depend on general economic and political
conditions within the relevant country. Countries such as those in which the
Funds may invest have historically experienced, and may continue to experience,
high rates of inflation, high interest rates, exchange rate trade difficulties
and unemployment. Some of these countries are also characterized by political
uncertainty or instability. Additional factors which may influence the ability
or willingness to service debt include, but are not limited to, a country's cash
flow situation, the availability of sufficient foreign exchange on the date a
payment is due, the relative size of its debt service burden to the economy as a
whole, and its government's policy towards the IMF, the World Bank and other
international agencies.

MORTGAGE-RELATED SECURITIES

The mortgage-related securities in which the International Opportunities
Fund, International Advisers Fund, Advisers Fund and Bond Fund may invest, and
the Mortgage Securities Fund principally invests, provide funds for mortgage
loans made to residential home buyers. These include securities which represent
interests in pools of mortgage loans made by lenders such as savings and loan
institutions, mortgage bankers, commercial banks and others. Pools of mortgage
loans are assembled for sale to investors (such as the Funds) by various
governmental, government-related and private organizations. These Funds may also
invest in similar mortgage-related securities which provide funds for
multi-family residences or commercial real estate properties. CMOs will also be
considered mortgage-related securities.

Interests in pools of mortgage-related securities differ from other forms of
debt securities, which normally provide for periodic payment of interest in
fixed amounts with principal payments at maturity or specified call dates.
Instead, these securities provide a monthly payment which consists of both
interest and principal payments. In effect, these payments are a "pass-through"
of the monthly payments made by the individual borrowers on their mortgage
loans, net of any fees paid to the issuer, servicer, insurer or guarantor of
such securities. Additional payments are caused by repayments of principal
resulting from the sale of the underlying property, refinancing or foreclosure,
net of fees or costs which may be incurred. Some mortgage-related securities
(such as GNMA securities) are described as "modified pass-through." These
securities entitle the holder to receive all interest and principal payments
owed on the mortgage pool, net of certain fees, regardless of whether or not the
mortgagor actually makes the payment.

The principal governmental (i.e., backed by the full faith and credit of the
U.S. Government) guarantor of mortgage-related securities is the GNMA. GNMA is a
wholly-owned United States Government corporation within the Department of
Housing and Urban Development. GNMA is authorized to guarantee, with the full
faith and credit of the U.S. Government, the timely payment of principal and
interest on securities known as Ginnie Maes issued by institutions approved by
GNMA (such as savings and loan institutions, commercial banks and mortgage
bankers) and backed by pools of FHA-insured or VA-guaranteed mortgages.

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<PAGE>

Government-related (i.e., not backed by the full faith and credit of the
U.S. Government) guarantors include the FNMA and the FHLMC. FNMA is a
government-sponsored corporation owned entirely by private stockholders. It is
subject to general regulation by the Secretary of Housing and Urban Development.
FNMA purchases residential mortgages from a list of approved seller/servicers
which include state and federally-chartered savings and loan associations,
mutual savings banks, commercial banks and credit unions and mortgage bankers.
Pass-through securities known as Fannie Maes issued by FNMA are guaranteed as to
timely payment of principal and interest by FNMA but are not backed by the full
faith and credit of the U.S. Government. FHLMC is a corporate instrumentality of
the U.S. Government created by Congress in 1970 for the purpose of increasing
the availability of mortgage credit for residential housing. Its stock is owned
by the twelve Federal Home Loan Banks. FHLMC issues Participation Certificates
("PCs") known as Freddy Macs which represent interests in mortgages from
portfolios created by FHLMC. FHLMC guarantees the timely payment of interest and
ultimate collection of principal but PCs are not backed by the full faith and
credit of the United States Government.

Commercial banks, savings and loan institutions, private mortgage insurance
companies, investment banks, mortgage bankers and other secondary market issuers
also create pass-through pools of conventional residential mortgage loans. Such
issuers may in addition be the originators of the underlying mortgage loans as
well as the guarantors of the mortgage-related securities. Pools created by such
non-governmental issuers generally offer a higher rate of interest than
government and government-related pools because there are no direct or indirect
government guarantees of payments in the former pools. However, timely payment
of interest and principal in these pools is supported by various forms of
insurance or guarantees, including individual loan, title, pool and hazard
insurance. The insurance and guarantees are issued by government entities,
private insurers and the mortgage poolers. Such insurance and guarantees and the
credit worthiness of the issuers thereof will be considered in determining
whether a mortgage-related security meets a Fund's investment quality standards.
There can be no assurance that the private insurers can meet their obligations
under the policies. These Funds may buy mortgage-related securities without
insurance or guarantees if through an examination of the loan experience and
practices of the poolers the Adviser or Sub-Adviser determines that the
securities meet the Fund's quality standards. Although the market for such
securities is becoming increasingly liquid, securities issued by certain private
organizations may not be readily marketable.

These Funds may invest in CMOs, which are securities collateralized by
mortgages or mortgage-backed securities. CMOs are issued with a variety of
classes or series, which have different maturities.

These Funds expect that governmental, government-related or private entities
may create mortgage loan pools offering pass-through investments in addition to
those described above. The mortgages underlying these securities may be
alternative mortgage instruments, that is, mortgage instruments whose principal
or interest payments may vary or whose terms to maturity may differ from
customary long-term fixed rate mortgages. These Funds may invest in stripped
mortgage- backed securities, which security is separated into the interest and
principal component of a mortgage backed security and are sold as separate
securities. As new types of mortgage-related securities are developed and
offered to investors, the Adviser or Sub-Adviser will, consistent with a Fund's
investment objective, policies and quality standards, consider making
investments in such new types of securities.

ASSET-BACKED SECURITIES

The International Opportunities Fund, the International Advisers Fund, the
Advisers Fund, the Bond Fund, the Mortgage Securities Fund, and the Money Market
Fund may invest in asset-backed securities. The securitization techniques used
for asset-backed securities are similar to those used for mortgage-related
securities. The collateral for these securities has included home equity loans,
automobile and credit card receivables, boat loans, computer leases, airplane
leases, mobile home loans, recreational vehicle loans and hospital account
receivables. These Funds may invest in these and other types of asset-backed
securities that may be developed in the future.

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SWAP AGREEMENTS

Each Fund, except the Index Fund, the U.S. Government Money Market Fund and
the Money Market Fund, may enter into interest rate swaps, currency swaps, and
other types of swap agreements such as caps, collars, and floors. In a typical
interest rate swap, one party agrees to make regular payments equal to a
floating interest rate multiplied by a "notional principal amount," in return
for payments equal to a fixed rate multiplied by the same amount, for a
specified period of time. If a swap agreement provides for payments in different
currencies, the parties might agree to exchange the notional principal amount as
well. Swaps may also depend on other prices or rates, such as the value of an
index or mortgage prepayment rates.

In a typical cap or floor agreement, one party agrees to make payments only
under specified circumstances, usually in return for payment of a fee by the
other party. For example, the buyer of an interest rate cap obtains the right to
receive payments to the extent that a specified interest rate exceeds an
agreed-upon level, while the seller of an interest rate floor is obligated to
make payments to the extent that a specified interest rate falls below an
agreed-upon level. An interest rate collar combines elements of buying a cap and
selling a floor.

Swap agreements will tend to shift a Fund's investment exposure from one
type of investment to another. For example, if a Fund agreed to exchange
floating rate payments for fixed rate payments, the swap agreement would tend to
decrease the Fund's exposure to rising interest rates. Caps and floors have an
effect similar to buying or writing options. Depending on how they are used,
swap agreements may increase or decrease the overall volatility of a Fund's
investments and its share price and yield.

MONEY MARKET INSTRUMENTS

The Funds may invest in high quality money market instruments, including,
but not limited to: (1) securities issued or guaranteed by governments, their
agencies or instrumentalities; (2) commercial paper; (3) certificates of
deposit; (4) bankers' acceptances and other bank obligations; and (5) repurchase
agreements involving any of the foregoing. The U.S. Government Money Market Fund
may only invest in high quality money market instruments, issued or guaranteed
by the U.S. Government, its agencies or instrumentalities.

INVESTMENT GRADE SECURITIES

The U.S. Government Money Market Fund and the Money Market Fund are
permitted to invest only in high-quality short-term instruments as defined by
Rule 2a-7 under the 1940 Act. Each of the other Funds is permitted to invest in
investment grade securities (i.e., rated as low as "Baa" by Moody's and as low
as "BBB" by S&P, and unrated securities of comparable quality as determined by
the Adviser or Sub-Adviser). Debt securities carrying the fourth highest rating
(i.e., "Baa" by Moody's and "BBB" by S&P, and unrated securities of comparable
quality as determined by the Adviser or Sub-Adviser) are viewed to have adequate
capacity for payment of principal and interest, but do involve a higher degree
of risk than that associated with investments in debt securities in the higher
rating categories and such bonds lack outstanding investment characteristics and
do have speculative characteristics.

HIGH YIELD SECURITIES

To the extent described in their investment policies, the Capital
Appreciation Fund, the International Opportunities Fund and the International
Advisers Fund are permitted to invest in high yield securities, commonly known
as "junk bonds" (i.e., rated as low as "C" by Moody's and by S&P, and unrated
securities of comparable quality as determined by the Sub-Adviser). Securities
in the rating categories below Baa as determined by Moody's and BBB as
determined by S&P are considered to be of poor standing and predominantly
speculative. The rating services' descriptions of securities in the lower rating
categories, including their speculative characteristics, are set forth in the
Appendix to this Prospectus. These securities are considered to have extremely
poor prospects of ever attaining any real investment standing, to have a current
identifiable vulnerability to default, to be unlikely to have the capacity to
pay interest and repay principal when due in the event of adverse business,
financial or economic conditions, and/or to be in default or not current in the
payment of interest or principal. These securities are considered speculative
with respect

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to the issuer's capacity to pay interest and repay principal in accordance with
the terms of the obligations. Accordingly, it is possible that these types of
factors could, in certain instances, reduce the value of securities held by a
Fund with a commensurate effect on the value of the Fund's shares.

OTHER RISK FACTORS

As mutual funds that primarily invest in equity and/or debt securities, each
Fund is subject to market risk, i.e., the possibility that equity and/or debt
prices in general will decline over short or even extended periods of time. The
financial markets tend to be cyclical, with periods when security prices
generally rise and periods when security prices generally decline.

The value of the debt securities in which the Funds invest will tend to
increase when interest rates are falling and to decrease when interest rates are
rising.

No Fund should be considered to be a complete investment program in and of
itself. Each prospective purchaser should take into account his or her own
investment objectives as well as his or her other investments when considering
the purchase of shares of any investment company.

There can be no assurance that the investment objectives of the Funds will
be met. In addition, the risk inherent in investing in the Funds is common to
any security -- the net asset value will fluctuate in response to changes in
economic conditions, interest rates and the market's perception of the
underlying portfolio securities of each Fund.

HIMCO, as Adviser to certain Funds, and WMC, as Sub-Adviser to certain
Funds, attempt, in pursuit of a Fund's investment objective, to select
appropriate individual securities for inclusion in a Fund's portfolio. In
addition, HIMCO and WMC attempt to successfully forecast market trends and
increase investments in the types of securities best suited to take advantage of
such trends. Thus, the investor is dependent on HIMCO's and WMC's success not
only in selecting individual securities, but also in identifying attractive
asset classes to determine the total mix of invested assets.

MANAGEMENT OF THE FUNDS

Each Fund's Board of Directors manages the business and affairs of that Fund
and takes action on all matters not reserved for the shareholders, including 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 AND MANAGEMENT SERVICES

HIMCO serves as investment adviser or manager to each Fund. HIMCO serves as
investment adviser to the Bond Fund, the Money Market Fund, the U.S. Government
Money Market Fund, the Mortgage Securities Fund and the Index Fund, pursuant to
Investment Advisory Agreements, effective as of August 1, 1984, with each Fund.
HIMCO serves as investment manager for the Advisers Fund, the Capital
Appreciation Fund and the Stock Fund, pursuant to Investment Management
Agreements, effective as of August 1, 1984, with each Fund. Each of these
agreements was approved by the Funds' Board of Directors on July 17, 1984, was
renewed on July 22, 1986 and has been reapproved each year since. Each of these
agreements was approved by the shareholders on October 31, 1984. HIMCO serves as
the investment manager for the International Opportunities Fund, pursuant to an
Investment Management Agreement, effective as of June 15, 1990, with the Fund.
This agreement was approved by the Fund's Board of Directors on January 30,
1990, was renewed on April 22, 1991 and has been reapproved each year since, and
was approved by the Fund's shareholders on April 22, 1991. HIMCO serves as the
investment manager for the Dividend and Growth Fund, pursuant to an Investment
Management Agreement, effective as of March 8, 1994, with the Fund. This
agreement was approved by the Fund's Board of Directors on January 25, 1994, and
by the Fund's shareholders on March 8, 1994. HIMCO serves as the investment
manager for the International Advisers Fund, pursuant to an Investment

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Management Agreement, effective as of February 28, 1995, with the Fund. This
agreement was approved by the Fund's Board of Directors on October 21, 1994 and
by the Fund's shareholders on February 28, 1995.

The Investment Advisory Agreements with respect to the Bond Fund, the Money
Market Fund, the U.S. Government Money Market Fund, the Mortgage Securities Fund
and the Index Fund will remain in effect through July 31, 1995, unless sooner
terminated or reapproved. The Investment Management Agreements with respect to
the Advisers Fund, the Capital Appreciation Fund and the Stock Fund will remain
in effect through July 31, 1995, unless sooner terminated or reapproved. The
Investment Management Agreement with respect to the International Opportunities
Fund will remain in effect through June 30, 1995, unless sooner terminated. The
Investment Management Agreement with respect to the Dividend and Growth Fund
will remain in effect through March 8, 1996, unless sooner terminated or
reapproved. The Investment Management Agreement with respect to the
International Advisers Fund will remain in effect through February 28, 1997,
unless sooner terminated or reapproved.

For 1994, the advisory and management fees for the Funds were as follows:
Advisers Fund, $12,575,934; Capital Appreciation Fund, $4,889,579; Bond Fund,
$808,161; Dividend and Growth Fund, $99,465; Index Fund, $300,556; International
Opportunities Fund, $2,546,060; Money Market Fund, $704,435; Mortgage Securities
Fund, $827,557; Stock Fund, $3,096,882; and U.S. Government Money Market Fund,
$23,635.

Under the terms of the Investment Advisory Agreements, HIMCO has
responsibility for the investment decisions with respect to the assets of the
Bond Fund, the Money Market Fund, the U.S. Government Money Market Fund, the
Mortgage Securities Fund and the Index Fund. HIMCO continuously provides the
Funds' Board of Directors with an investment program for its consideration and,
upon approval of the program by the Board, HIMCO implements the same by placing
orders for the purchase or sale of securities.

The investment advisory fee for the Money Market Fund, the U.S. Government
Money Market Fund and the Mortgage Securities Fund is .25% annually of the value
of the average daily net assets of each Fund. The investment advisory fee for
the Index Fund is .20% annually of the value of the average daily net assets of
the Fund. The investment advisory fee for the Bond Fund is:

.325% annually of the value of the average daily net assets of the Fund
up to $250,000,000;
.30% annually of the value of the next $250,000,000 of the average daily
net assets of the Fund;
.275% annually of the value of the next $500,000,000 of the average daily
net assets of the Fund;
.25% annually of the value of the average daily net assets of the Fund in
excess of $1,000,000,000.

Under the terms of the Investment Management Agreements, HIMCO, subject to
the supervision of the Funds' Board of Directors, provides investment management
supervision to the Stock Fund, the Advisers Fund, the Capital Appreciation Fund,
the International Opportunities Fund, the Dividend and Growth Fund and the
International Advisers Fund in accordance with the Funds' investment objectives,
policies and restrictions. HIMCO's responsibilities include:

(1) Engaging, subject to consultation with the Funds' Board of
Directors, the services of one or more firms to serve as investment
sub-adviser to the Funds;

(2) Reviewing from time to time the investment policies and restrictions
of the Funds in light of the Funds' performance and otherwise and, after
consultation with the investment sub-adviser, recommending any appropriate
changes to the Funds' Board of Directors;

(3) Supervising the investment program prepared for the Funds by the
investment sub-adviser;

(4) Monitoring on a continuing basis the performance of the Funds'
portfolio securities;

33
<PAGE>
(5) Arranging for the provision of such economic and statistical data as
HIMCO shall determine or as may be requested by the Funds' Board of
Directors;

(6) Providing the Funds' Board of Directors with such information
concerning important economic and political developments as HIMCO shall deem
appropriate or as shall be requested by the Funds' Board of Directors.

For services rendered to the Funds, HIMCO charges a monthly fee based on the
following annual rates as applied to the average of the calculated daily net
asset value of the Funds.

Advisers, Capital Appreciation, Dividend and Growth, International Advisers
and International Opportunities Funds:

.575% annually of the value of the average daily net assets of the Fund
up to $250,000,000;
.525% annually of the next $250,000,000 of the value of the average daily
net assets of the Fund;
.475% annually of the next $500,000,000 of the value of the average daily
net assets of the Fund;
.425% annually of the value of the average daily net assets of the Fund
in excess of $1,000,000,000.

HIMCO has agreed to waive its fees for the International Advisers Fund until
the assets (excluding assets contributed by companies affiliated by HIMCO) first
reach $20 million.

Stock Fund:

.325% annually of the value of the average daily net assets of the Fund
up to $250,000,000;
.275% annually of the value of the next $250,000,000 of the average daily
net assets of the Fund;
.225% annually of the next $500,000,000 of the value of the average daily
net assets of the Fund;
.150% annually of the value of the average daily net assets of the Fund
in excess of $1,000,000,000.

HIMCO, Hartford Plaza, Hartford, Connecticut 06115, 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
SEC. 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.

Certain officers of the Funds are also officers and directors of HIMCO;
Joseph H. Gareau is a Director and the President of HIMCO; Andrew W. Kohnke is a
Managing Director of HIMCO; Donald E. Waggaman, Jr. is the Treasurer of HIMCO;
and Charles M. O'Halloran is a Director, Secretary and Counsel of HIMCO.

INVESTMENT SUB-ADVISORY SERVICES

WMC serves as Sub-Adviser to the International Opportunities Fund, pursuant
to an Investment Sub-Advisory Agreement, effective as of June 15, 1990, with the
Fund. This agreement was approved by the Fund's Board of Directors on January
30, 1990, was renewed in 1992 and has been reapproved each year since. It was
approved by the Fund's shareholders on April 22, 1991. WMC serves as Sub-Adviser
to the Dividend and Growth Fund, pursuant to an Investment Sub-Advisory
Agreement, effective as of March 8, 1994, with the Fund. This agreement was
approved by the Fund's Board of Directors on October 26, 1993, and by the Fund's
shareholders on March 8, 1994. WMC serves as Sub-Adviser to the Advisers Fund,
the Capital Appreciation Fund and the Stock Fund pursuant to Investment
Sub-Advisory

34
<PAGE>

Agreements, effective as of May 1, 1994 with each Fund. Each of these agreements
was approved by the Fund's Board of Directors on January 24, 1994 and by the
Fund's shareholders on April 26, 1994. WMC serves as Sub-Adviser to the
International Advisers Fund, pursuant to an Investment Sub-Advisory Agreement,
effective as of February 28, 1995, with the Fund. This agreement was approved by
the Fund's Board of Directors on October 21, 1994, and by the Fund's
shareholders on February 28, 1995.

Under the terms of the Investment Sub-Advisory Agreements, WMC provides an
investment program to HIMCO for use by HIMCO in rendering services to these
Funds. WMC makes all determinations with respect to the purchase and sale of
portfolio securities (subject to the terms and conditions of the investment
objectives, policies and restrictions of these Funds and to the supervision of
the Funds' Board of Directors and HIMCO) and places, in the name of the Funds,
all orders for execution of these Funds' portfolio transactions. In conjunction
with such activities, WMC regularly furnishes reports to these Funds' Board of
Directors concerning economic forecasts, investment strategy, portfolio activity
and performance of the Funds.

For services rendered to these Funds, WMC charges a quarterly fee to HIMCO.
The Funds will not pay WMC's fee nor any part thereof, nor will the Funds have
any obligation or responsibility to do so. WMC's quarterly fee is based upon the
following annual rates as applied to the average of the calculated daily net
asset value of each Fund.

Advisers Fund, Stock Fund, Dividend and Growth Fund:

.325% annually of the value of the average daily net assets of the Fund
up to $50,000,000;
.25% annually of the next $100,000,000 of the value of the average daily
net assets of the Fund;
.20% annually of the next $350,000,000 of the value of the average daily
net assets of the Fund;
.15% annually of the value of the average daily net assets of the Fund in
excess of $500,000,000.

Capital Appreciation Fund, International Opportunities Fund and
International Advisers Fund:

.40% annually of the value of the average daily net assets of the Fund up
to $50,000,000;
.30% annually of the next $100,000,000 of the value of the average daily
net assets of the Fund;
.25% annually of the next $100,000,000 of the value of the average daily
net assets of the Fund;
.20% annually of the value of the average daily net assets of the Fund in
excess of $500,000,000.

WMC has agreed to waive its fees for the International Advisers Fund until
the assets (excluding assets contributed by companies affiliated with HIMCO)
first reach $20 million.

The Investment Sub-Advisory Agreements with respect to the Advisers Fund,
the Capital Appreciation Fund and the Stock Fund will remain in effect through
May 1, 1996, unless sooner terminated. The Investment Sub-Advisory Agreement
with respect to the International Opportunities Fund will remain in effect
through July 27, 1995, unless sooner terminated. The Investment Sub-Advisory
Agreement with respect to the Dividend and Growth Fund will remain in effect
through March 8, 1996, unless sooner terminated. The Investment Sub- Advisory
Agreement with respect to the International Advisers Fund will remain in effect
through February 28, 1997, unless sooner terminated.

WMC is a professional investment counseling firm which provides investment
services to investment companies, employee benefit plans, endowments,
foundations, and other institutions and individuals. As of March 31, 1995, WMC
held discretionary management authority with respect to approximately $88
billion of client assets. WMC and its predecessor organizations have provided
investment advisory services to investment companies since 1933 and to
investment counseling clients since 1960. WMC, 75 State Street, Boston, MA
02109, is a Massachusetts general partnership, of which the following persons
are managing partners: Robert W. Doran, Duncan M. McFarland, and John B. Neff.

35
<PAGE>
PORTFOLIO MANAGERS

Saul J. Pannell, Senior Vice President of WMC, serves as portfolio manager
to the Capital Appreciation Fund. Mr. Pannell has been a portfolio manager with
WMC since 1979.

Laurie A. Gabriel, CFA and Senior Vice President of WMC, serves as portfolio
manager to the Dividend and Growth Fund. Ms. Gabriel joined WMC in 1976. She has
been a quantitative research analyst with WMC since 1986, and took on portfolio
management responsibilities in 1987.

The International Opportunities Fund is managed by WMC's Global Equity
Strategy Group, headed by Trond Skramstad, Senior Vice President of WMC. The
Global Equity Strategy Group is comprised of global portfolio managers and
senior investment professionals. No person or persons is primarily responsible
for making recommendations to or within the Global Equity Strategy Group. Prior
to joining WMC as Director of WMC's International Equity Department in 1993, Mr.
Skramstad was a global equity portfolio manager at Scudder, Stevens & Clark
since 1990.

Rand L. Alexander, Senior Vice President of WMC, serves as portfolio manager
to the Stock Fund. Mr. Alexander has been a portfolio manager with WMC since
1990. He was employed by the Putnam Investment Management Company as a portfolio
manager and security analyst from 1981 until 1989.

Paul D. Kaplan, Senior Vice President of WMC, serves as portfolio manager to
the Advisers Fund. Mr. Kaplan manages the fixed income component of the Advisers
Fund. He has been a portfolio manager with WMC since 1982. Rand L. Alexander,
who is portfolio manager to the Stock Fund, manages the equity component of the
Advisers Fund.

The equity component of the International Advisers Fund is managed by WMC's
Global Equity Strategy Group, headed by Trond Skramstad. The debt component of
the International Advisers Fund is managed by Robert Evans, Vice President of
WMC. Prior to joining WMC as a portfolio manager in 1995, Mr. Evans was a Senior
Global Fixed Income Portfolio Manager with Pacific Investment Management Company
from 1991 through 1994, and in the Global Fixed Income Department of Lehman
Brothers International in London, England and New York City, New York from 1985
through 1990.

The Bond Fund and the Mortgage Securities Fund are both managed by Tracy T.
Eccles and Timothy J. Wilhide. Ms. Eccles is a Senior Vice President of HIMCO
and an Assistant Vice President of ITT Hartford Life. She is a Senior Portfolio
Manager, and also manages several fixed income insurance company separate
accounts. She has worked for ITT Hartford since 1986 trading various fixed
income securities, including mortgage-backed securities, corporates and
treasuries. Prior to joining ITT Hartford, Ms. Eccles worked as an international
trade officer for a major New York bank. A Chartered Financial Analyst, she
received her B.A. from Smith College and her MBA from Northwestern University.
Mr. Wilhide is a Portfolio Manager and Vice President of HIMCO. He has 17 years
of experience in the fixed income markets. Prior to joining ITT Hartford in June
1994, Mr. Wilhide was vice president and fixed income manager for J.P. Morgan &
Co. He received his B.A. from Gannon University and his MBA from the University
of Delaware.

ADMINISTRATIVE SERVICES FOR THE FUNDS

An Administrative Services Agreement between each Fund and HL provides that
HL will manage the business affairs and provide administrative services to each
Fund. Under the terms of these Agreements, HL will provide the following:
administrative personnel, services, equipment and facilities and office space
for proper operation of the Funds.

HL has also agreed to arrange for the provision of additional services
necessary for the proper operation of the Funds, although the Funds pay for
these services directly. See "Expenses of the Funds."

As compensation for the services to be performed by HL, each 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 the average daily net assets of the Fund.

36
<PAGE>
EXPENSES OF THE FUNDS

Each 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 each Fund and its securities; all federal and state registration,
qualification and filing costs and fees, (except the initial costs and fees,
which will be borne by HL), 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 each Fund other than those who are also officers of HL; industry membership
dues; all annual and semiannual reports and prospectuses mailed to each Fund's
shareholders as well as all quarterly, annual and any other periodic report
required to be filed with the SEC or with any state; any notices required by a
federal or state regulatory authority, and any proxy solicitation materials
directed to each Fund's shareholders as well as all printing, mailing and
tabulation costs incurred in connection therewith, and any expenses incurred in
connection with the holding of meetings of each Fund's shareholders and other
miscellaneous expenses related directly to the Funds' operations and interest.

The total expenses of each Fund including administrative and investment
advisory fees for 1994 as a percentage of the Funds' average net assets were as
follows: Stock Fund, .50%; Bond Fund, .55%; Money Market Fund, .47%; U.S.
Government Money Market Fund, .58%; Advisers Fund, .65%; Capital Appreciation
Fund, .72%; Mortgage Securities Fund, .48%; Index Fund .45%; International
Opportunities Fund, .85%; Dividend and Growth Fund, .83%. The International
Advisers Fund did not commence operations in 1994.

PERFORMANCE RELATED INFORMATION

The Funds may advertise certain performance related information. Performance
information about a Fund is based on the Fund's past performance only and is no
indication of future performance.

Each Fund may include its total return in advertisements or other sales
material. When a 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
(assuming immediate reinvestment of any dividends or capital gains
distributions).

The U.S. Government Money Market Fund and the Money Market Fund may
advertise yield and effective yield. The yield of each of those Funds is based
upon the income earned by the Fund over a seven-day period and then annualized,
i.e. the income earned in the period is assumed to be earned every seven days
over a 52-week period and stated as a percentage of the investment. Effective
yield is calculated similarly but when annualized, the income earned by the
investment is assumed to be reinvested in Fund shares and thus compounded in the
course of a 52-week period.

DIVIDENDS

The shareholders of each Fund shall be entitled to receive such dividends as
may be declared by each Fund's Board of Directors, from time to time based upon
the investment performance of the assets making up that Fund's portfolio. The
policy with respect to each Fund, except the U.S. Government Money Market Fund
and the Money Market Fund, is to pay dividends from net investment income
monthly and to make distributions of realized capital gains, if any, once each
year. The U.S. Government Money Market Fund and the Money Market Fund declare
dividends on a daily basis and pay them monthly.

37
<PAGE>
Such dividends and distributions will be automatically invested in
additional full or fractional shares monthly on the last business day of each
month at the per share net asset value on that date. Provision is also made to
pay such dividends and distributions in cash if requested. Such dividends and
distributions will be in cash or in full or fractional shares of the Fund at net
asset value.

NET ASSET VALUE

The net asset value of each Fund's shares will be determined as of the close
of business (currently 4:00 P.M. Eastern Time) on each day the NYSE is open for
trading. Orders for the purchase of a Fund's shares received prior to the close
of the NYSE on any day on which the Fund is open for business will be priced at
the per-share net asset value determined as of the close of the NYSE. Orders
received after the close of the NYSE or on a day on which the NYSE or a Fund are
not open for business will be priced at the per-share net asset value next
determined.

The per-share net asset value of the shares each Fund will be determined by
dividing the value of the Fund's assets, less the liabilities, by the number of
outstanding shares issued by the Fund.

Equity securities are valued at the last sales price as of the time when the
valuation is being made. If no sales took place on such day and in the case of
certain equity securities traded over-the-counter, then such securities are
valued at the mean between the bid and the asked prices. Debt securities (other
than short-term obligations) including mortgage-backed securities, are valued on
the basis of valuations furnished by an unaffiliated pricing service which
determines valuations for normal institutional size trading units of debt
securities. Short-term investments with a maturity of 60 days or less when
purchased are valued at cost plus interest earned (amortized cost), which
approximates market value. Short-term investments with a maturity of more than
60 days when purchased are valued based on market quotations until the remaining
days to maturity become less than 61 days.

From such time, until maturity, the investments are valued at amortized cost
using the value of the investment on the 61st day. Options are valued at the
last sales price; if no sale took place on such day, then options are valued at
the mean between the bid and asked prices.

Assets for which market quotations are not readily available are valued at
fair value as determined in good faith by or under the direction of a Fund's
Board of Directors.

PURCHASE OF FUND SHARES

Fund shares are made available to serve as the underlying investment
vehicles for variable annuity and variable life insurance separate accounts of
ITT Hartford Life Insurance Companies. Shares of the Funds are sold on a no-load
basis at their net asset values. See "Net Asset Value" and "Sale and Redemption
of Shares."

It is conceivable that in the future it may be disadvantageous for variable
annuity separate accounts and variable life insurance separate accounts to
invest in the Funds simultaneously. Although ITT Hartford Life Insurance
Companies and the Funds do not currently foresee any such disadvantages either
to variable annuity contract owners or variable life insurance policyowners,
each Fund's Board of Directors intends to monitor events in order to identify
any material conflicts between such contract owners and policyowners and to
determine what action, if any, should be taken in response thereto. If the Board
of Directors of a Fund were to conclude that separate funds should be
established for variable life and variable annuity separate accounts, the
variable life and variable annuity contract holders would not bear any expenses
attendant to the establishment of such separate funds.

SALE AND REDEMPTION OF SHARES

The shares of each Fund are sold and redeemed by the Fund at their net asset
value next determined after receipt of a purchase or redemption order in good
order in writing at its home office,

38
<PAGE>

P.O. Box 2999, Hartford, CT 06104-2999. Hartford Equity Sales Company, Inc.,
Hartford, Connecticut, is the Fund's principal underwriter. The value of shares
redeemed may be more or less than original cost, depending upon the market value
of the portfolio securities at the time of redemption. Payment for shares
redeemed will be made within seven days after the redemption request is received
in proper form by the Funds. However, the right to redeem Fund shares may be
suspended or payment therefor postponed for any period during which: (1) trading
on the NYSE is closed for other than weekends and holidays; (2) an emergency
exists, as determined by the SEC, as a result of which (a) disposal by a Fund of
securities owned by it is not reasonably practicable, or (b) it is not
reasonably practicable for a Fund to determine fairly the value of its net
assets; or (3) the SEC by order so permits for the protection of stockholders of
the Funds.

FEDERAL INCOME TAXES

Each Fund has elected and intends to qualify under Part I of Subchapter M of
the Code. Each Fund intends to distribute all of its net income and gains to
shareholders. Such distributions are taxable income and capital gains. Each Fund
will inform shareholders of the amount and nature of such income and gains. Each
Fund may be subject to a 4% nondeductible excise tax as well as an income tax
measured with respect to certain undistributed amounts of income and capital
gain. Each Fund expects to make such additional distributions of net investment
income as are necessary to avoid the application of these taxes. For a
discussion of the tax implications of a purchase or sale of the Funds' shares by
the insurer, reference should be made to the section entitled "Federal Tax
Considerations" in the appropriate separate account prospectus.

If eligible, each Fund may make an election to pass through to its
shareholders, ITT Hartford Life Insurance Companies, a credit for any foreign
taxes paid during the year. If such election is made, the pass-through of the
foreign tax credit will result in additional taxable income and income tax to
ITT Hartford Life Insurance Companies. The amount of additional tax may be more
than offset by the foreign tax credits which are passed through. These foreign
tax credits may provide a benefit to ITT Hartford Life Insurance Companies.

OWNERSHIP AND CAPITALIZATION OF THE FUNDS

CAPITAL STOCK

As of the date of this prospectus, the authorized capital stock of the Funds
consisted of the following shares of a par value of $.10 per share: Advisers
Fund, 3 billion; Capital Appreciation Fund, 800 million; Bond Fund, 800 million;
Dividend and Growth Fund, 750 million; Index Fund, 400 million; International
Opportunities Fund, 1500 million; Money Market Fund, 800 million; Mortgage
Securities Fund, 800 million; Stock Fund, 800 million; U.S. Government Money
Market Fund, 100 million; International Advisers Fund, 750 million.

As of December 31, 1994, Hartford Accident and Indemnity Company owned
3,000,000 shares (5.4%) of Dividend and Growth Fund. As of March 1, 1995, HL
owned 10,000,000 shares (100%) of the International Advisers Fund.

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<PAGE>

At December 31, 1994, certain HL group pension contracts held direct
interests in shares of the Funds as follows:

<TABLE>
<CAPTION>
PERCENT OF
SHARES TOTAL SHARES
------------- ------------
<S> <C> <C>
Hartford Advisers Fund, Inc......................................................... 10,709,364 0.56%
Hartford Capital Appreciation Fund, Inc............................................. 5,313,800 1.31%
Hartford Index Fund, Inc............................................................ 9,462,900 9.14%
Hartford International Opportunities Fund, Inc...................................... 5,547,408 1.16%
Hartford Mortgage Securities Fund, Inc.............................................. 16,249,689 5.26%
Hartford Stock Fund, Inc............................................................ 65,899 0.02%
</TABLE>

VOTING

Each shareholder shall be entitled to one vote for each share of the Funds
held upon all matters submitted to the shareholders generally. With respect to
the Funds' shares, issued as described above under "Purchase of Fund Shares," as
well as Fund shares which are not otherwise attributable to variable annuity
contract owners or variable life policy holders, the ITT Hartford Life Insurance
Companies shall be the shareholders of record. Each of the ITT Hartford Life
Insurance Companies will vote all Fund shares, pro rata, according to the
written instructions of the contract owners of the variable annuity contracts
and the policy holders of the variable life contracts issued by it using the
Funds as investment vehicles. This position is consistent with the policy of the
SEC Staff.

OTHER RIGHTS

Each share of Fund stock, when issued and paid for in accordance with the
terms of the offering, will be fully paid and non-assessable. Shares of Fund
stock have no pre-emptive, subscription or conversion rights and are redeemable
as set forth under "Sale and Redemption of Shares." There are no shareholder
pre-emptive rights. Upon liquidation of a Fund, the shareholders of that Fund
shall be entitled to share, pro rata, in any assets of the Fund after discharge
of all liabilities and payment of the expenses of liquidation.

GENERAL INFORMATION

REPORTS TO SHAREHOLDERS

The Funds will issue unaudited semiannual reports showing current
investments in each Fund and other information and annual financial statements
examined by independent auditors for the Funds.

CUSTODIAN, TRANSFER AND DIVIDEND DISBURSING AGENTS

Chase Manhattan Bank, N.A., New York, New York, serves as custodian of the
Funds' assets. Hartford Life Insurance Company, P.O. Box 2999, Hartford,
Connecticut 06104-2999, serves as Transfer and Dividend Disbursing Agent for the
Funds.

"MAJORITY" DEFINED

As used in this Prospectus, the term "majority of the Fund's outstanding
shares" means the vote of: (1) 67% or more of each Fund's shares present at a
meeting, if the holders of more than 50% of the outstanding shares of each Fund
are present or represented by proxy, or (2) more than 50% of each Fund's
outstanding shares, whichever is less.

PENDING LEGAL PROCEEDINGS

As of the date of this Prospectus, there are no pending legal proceedings
involving the Funds or the Adviser or Sub-Adviser as a party.

40
<PAGE>
REQUESTS FOR INFORMATION

This Prospectus does not contain all the information included in the
Registration Statement filed with the SEC. The Registration Statement, including
the exhibits filed therewith, may be examined at the SEC's office in Washington,
D.C. Statements contained in the Prospectus as to the contents of any contract
or other document referred to herein are not necessarily complete, and, in each
instance, reference is made to the copy of such contract or other document filed
as an exhibit to the Registration Statement of which this Prospectus forms a
part, each such statement being qualified, in all respects by such reference.

For additional information, write to "Hartford Family of Funds", c/o
Individual Annuity Operations, P.O. Box 2999, Hartford, CT 06104-2999.

41
<PAGE>

APPENDIX
RATINGS 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

Aaa - 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.

Aa - 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.

A - 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.

Baa - 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.

Ba - Bonds which are rated Ba are judged to have speculative elements; their
future cannot be considered as well assured. Often the protection of interest
and principal payments may be very moderate and thereby not well safeguarded
during both good and bad times over the future. Uncertainty of position
characterizes bonds in this class.

B - Bonds which are rated B generally lack characteristics of the desirable
investment. Assurance of interest and principal payments or of maintenance of
other terms of the contract over any long period of time may be small.

Caa - Bonds which are rated Caa are of poor standing. Such issues may be in
default or there may be present elements of danger with respect to principal or
interest.

Ca - Bonds which are rated Ca represent obligations which are speculative in
a high degree. Such issues are often in default or have other marked
shortcomings.

C - Bonds which are rated C are the lowest rated class of bonds and issues
so rated can be regarded as having extremely poor prospects of ever earning any
real investment standing.

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<PAGE>
STANDARD & POOR'S

AAA - Bonds rated AAA are the highest grade obligations. Capacity to pay
interest and repay principal is extremely strong.

AA - Bonds rated AA have a very strong capacity to pay interest and repay
principal and differ from AAA issues only in small degree.

A - Bonds rated A have a very strong capacity to pay interest and repay
principal although they are somewhat more susceptible to the considerable
investment strength but are not entirely free from adverse effects of changes in
circumstances and economic conditions than debt in the highest rated categories.

BBB - Bonds rated BBB and regarded as having an adequate capacity to pay
interest and repay principal. Whereas they normally exhibit adequate protection
parameters, adverse economic conditions or changing circumstances are more
likely to lead to a weakened capacity to pay interest and repay principal for
debt in this category then in higher rated categories.

BB, B, CCC, CC, C - Debt rated BB, B, CCC, CC, and C is regarded, on
balance, as predominantly speculative with respect to the issuer's capacity to
pay interest and repay principal in accordance with the terms of the obligation.
While such debt will likely have some quality and protective characteristics,
these are outweighed by large uncertainties or major risk exposures to adverse
conditions.

RATING OF COMMERCIAL PAPER

Purchases of corporate debt securities used for short-term investment,
generally called commercial paper, will be limited to the top two grades of
Moody's, Standard & Poor's, Duff & Phelps, Fitch Investor Services and Thomson
Bank Watch or other NRSROs (nationally recognized statistical rating
organizations) rating services and will be an eligible security under Rule 2a-7.

MOODY'S

Issuers rated Prime-1 (or related supporting institutions) have a superior
capacity for repayment of short-term promissory obligations. Prime-1 repayment
capacity will normally be evidenced by the following characteristics:

- Leading market positions in well-established industries.

- High rates of return on funds employed.

- Conservative capitalization structures with moderate reliance
on debt and ample asset protection.

- Broad margins in earnings coverage of fixed financial charges
and high internal cash generation.

- Well-established access to a range of financial markets and
assured sources of alternate liquidity.

Issuers rated Prime-2 (or related supporting institutions) have a strong
capacity for repayment of short-term promissory obligations. This will normally
be evidenced by many of the characteristics cited above but to a lesser degree.
Earnings trends and coverage ratios, while sound, will be more subject to
variation. Capitalization characteristics, while still appropriate, may be more
affected by external conditions. Ample alternate liquidity is maintained.

Issuers rate Prime-3 (or related supporting institutions) have an acceptable
capacity for repayment of short-term promissory obligations. The effect of
industry characteristics and market composition may be more pronounced.
Variability in earnings and profitability may result in changes in the level of
debt protection measurements and the requirement for relatively high financial
leverage. Adequate alternate liquidity is maintained.

Issuers rated Not Prime do not fall within any of the Prime rating
categories.

43
<PAGE>
STANDARD & 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.

44
<PAGE>

PART B

<PAGE>

STATEMENT OF ADDITIONAL INFORMATION

HARTFORD ADVISERS FUND, INC.
HARTFORD CAPITAL APPRECIATION FUND, INC.
(FORMERLY HARTFORD AGGRESSIVE GROWTH FUND, INC.)
HARTFORD BOND FUND, INC.
HARTFORD DIVIDEND AND GROWTH FUND, INC.
HARTFORD INDEX FUND, INC.
HARTFORD INTERNATIONAL ADVISERS FUND, INC.
HARTFORD INTERNATIONAL OPPORTUNITIES FUND, INC.
HARTFORD MORTGAGE SECURITIES FUND, INC.
HARTFORD STOCK FUND, INC.
HARTFORD U.S. GOVERNMENT MONEY MARKET FUND, INC.
HVA MONEY MARKET FUND, INC.

P.O. Box 2999
Hartford, CT 06104-2999

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 Family of
Funds," c/o Individual Annuity Operations, P.O. Box 2999, Hartford, Connecticut
06104-2999.

Date of Prospectus: May 3, 1995
Date of Statement of Additional Information: May 3, 1995

<PAGE>

Form HV-1743-11

TABLE OF CONTENTS PAGE
- ----------------- ----

INVESTMENT OBJECTIVES OF THE FUNDS . . . . . . . . . . . .

INVESTMENT RESTRICTIONS OF THE FUNDS . . . . . . . . . . . .

PORTFOLIO TURNOVER . . . . . . . . . . . . . . . . . . . . .

MANAGEMENT OF THE FUND . . . . . . . . . . . . . . . . . . .

CUSTODIAN AND TRANSFER AGENT . . . . . . . . . . . . . . . .

INDEPENDENT PUBLIC ACCOUNTANTS . . . . . . . . . . . . . . .

PORTFOLIO BROKERAGE. . . . . . . . . . . . . . . . . . . . .

DETERMINATION OF YIELD . . . . . . . . . . . . . . . . . . .

PERFORMANCE COMPARISONS. . . . . . . . . . . . . . . . . . .

MUTUAL FUNDS TOTAL RETURNS . . . . . . . . . . . . . . . . .

PRICE MAKE-UP SHEETS . . . . . . . . . . . . . . . . . . . .

FINANCIAL STATEMENTS . . . . . . . . . . . . . . . . . . . .

APPENDIX I . . . . . . . . . . . . . . . . . . . . . . . . .

APPENDIX II. . . . . . . . . . . . . . . . . . . . . . . . .

APPENDIX III . . . . . . . . . . . . . . . . . . . . . . . .

APPENDIX IV. . . . . . . . . . . . . . . . . . . . . . . . .

APPENDIX V . . . . . . . . . . . . . . . . . . . . . . . . .

APPENDIX VI. . . . . . . . . . . . . . . . . . . . . . . . .

<PAGE>

INVESTMENT OBJECTIVES OF THE FUNDS

HARTFORD ADVISERS FUND, INC.:

To achieve maximum long term total rate of return consistent with prudent
investment risk by investing in common stock and other equity securities, bonds
and other debt securities, and money market instruments.

HARTFORD CAPITAL APPRECIATION FUND, INC.:

To achieve growth of capital by investing in securities selected solely on the
basis of potential for capital appreciation; income, if any, is an incidental
consideration.

HARTFORD BOND FUND, INC.:

To achieve maximum current income consistent with preservation of capital by
investing primarily in fixed-income securities.

HARTFORD DIVIDEND AND GROWTH FUND, INC.:

To achieve a high level of current income consistent with growth of capital and
reasonable investment risk.

HARTFORD INDEX FUND, INC.:

To provide investment results that approximate the price and yield performance
of publicly-traded common stocks in the aggregate.

HARTFORD INTERNATIONAL ADVISERS FUND, INC.:

To achieve maximum long-term total rate of return consistent with prudent
investment risk.

HARTFORD INTERNATIONAL OPPORTUNITIES FUND, INC.:

To achieve long-term total return consistent with prudent investment risk
through investment primarily in equity securities issued by non-U.S. companies.

HARTFORD MORTGAGE SECURITIES FUND, INC.:

To achieve maximum current income consistent with safety of principal and
maintenance of liquidity by investing primarily in mortgage-related securities,
including securities issued by the Government National Mortgage Association.

<PAGE>

HARTFORD STOCK FUND, INC.:

To achieve long-term capital growth primarily through capital appreciation, with
income a secondary consideration, by investing in primarily equity securities.

HARTFORD U.S. GOVERNMENT MONEY MARKET FUND, INC.:

To achieve maximum current income consistent with preservation of capital.

HVA MONEY MARKET FUND, INC.:

To achieve maximum current income consistent with liquidity and preservation of
capital.

INVESTMENT RESTRICTIONS OF THE FUNDS

Each of the Funds is governed by a number of investment restrictions -
investment practices which are prohibited or which are only permitted to a
limited extent. Under the 1940 Act, investment restrictions must be designated
either "fundamental" or "nonfundamental." "Fundamental" restrictions may only
be changed with the approval of a majority of the outstanding voting securities
of a Fund. "Nonfundamental" restrictions may be changed with the approval of a
majority of a Fund's Board of Directors. Some restrictions are common to all
Funds, usually because governing law so requires. Others vary because of
differences in the objectives of the Funds or for historical reasons.

A. FUNDAMENTAL RESTRICTIONS

1. Issuer Concentration. At least 75% of the assets of each Fund will be
represented by securities limited in respect of any one issuer (except U.S.
Government securities) to an amount not greater in value than 5% of the
value of the total assets of such Fund. Not more than 10% of the assets of
a Fund will be invested in the securities of any one issuer (except U.S.
Government securities). No Fund will acquire more than 5% of the
outstanding voting securities of any one issuer.

2. Industry Concentration. No Fund will invest more than 25% of its
assets in the securities of issuers primarily engaged in any one industry;
however, this restriction shall not apply to investments in obligations of
the U.S. Government and its agencies and instrumentalities, bank
certificates of deposit, bankers' acceptances or instruments secured by
these money market instruments. In addition, for the Dividend and Growth
Fund only, electric utilities, natural gas utilities, water utilities and
telecommunications issuers will be considered separate, distinct
industries.

<PAGE>

3. Senior Securities. No Fund will issue senior securities, but for this
purpose transactions in futures contracts and options thereon shall not be
deemed the issuance of senior securities.

4. Borrowings. Except for the Dividend and Growth Fund, the
International Advisers Fund and the International Opportunities Fund, none
of the Funds may borrow amounts in excess of 5% of its assets, and
borrowings by each of the Funds can be only from banks or through reverse
repurchase agreements and as a temporary measure for extraordinary or
emergency purposes. For the Dividend and Growth Fund and the International
Advisers Fund, the percentage limit on borrowing is 15% and for the
International Opportunities Fund the percentage limit is 20%. In addition,
the Dividend and Growth Fund will not purchase securities when its
borrowings exceed 5% of its assets.

5. Underwriting. No Fund will underwrite securities of other issuers.

6. Commodities. No Fund will purchase commodities or commodity
contracts, except for transactions in futures contracts and options on
futures contracts.

7. Real Estate. No Fund will invest in real estate, except that each of
the Advisers Fund, Bond Fund, Index Fund and Stock Fund may invest up to
10% of its assets in interests in real estate which are readily marketable,
and except that the Dividend and Growth Fund, the International
Opportunities Fund and the International Advisers Fund may hold up to 5% of
its assets in real estate or mineral leases acquired through the ownership
of securities, but such Funds will not acquire securities for the purpose
of acquiring real estate or mineral leases, commodities or commodity
contracts.

8. Loans. No Fund will make loans, except through the acquisition of (a)
publicly distributed bonds, debentures or other evidences of indebtedness
of a type customarily purchased by institutional investors; (b) money
market instruments as permitted in accordance with the Fund's investment
policies; and (c) repurchase agreements.

B. NONFUNDAMENTAL RESTRICTIONS

9. Short Sales and Margin. No Fund will purchase securities on margin or
make short sales of securities, except that a Fund may obtain such short-
term credit as may be necessary for the clearance of purchases and sales of
securities and except for transactions in futures contracts and options
thereon.

10. Illiquid Securities. No Fund will invest more than 10% of its assets
in illiquid securities, except that the Dividend and Growth Fund, the
International Advisers Fund and the International Opportunities Fund may
each invest up to 15% of its assets in illiquid securities, and except that
the Index Fund and the two money market funds may not invest in illiquid
securities at all.

<PAGE>

11. Control. No Fund will, alone or together with any other of the
Hartford Mutual Funds, make investments for the purpose of exercising
control over or management of any issuer.

12. Pledges. No Fund will mortgage, pledge, hypothecate, or in any manner
transfer, as security for indebtedness, any securities owned or held by it,
except to secure reverse repurchase agreements; however, for purposes of
this restriction, collateral arrangement with respect to transactions in
futures contracts and options thereon are not deemed to be a pledge of
securities.

13. Other Investment Companies. The Index Fund, the Mortgage Securities
Fund and the money market funds will not purchase securities of other
investment companies. Each of the other Funds may not invest more than 5%
of its assets in securities of other investment companies and will not
acquire more than 3% of the total outstanding voting securities of any one
investment company.

14. Geographic Concentration. Each of the International Advisers Fund and
the International Opportunities Fund will not invest more than 20% of its
assets in securities of issuers located in any one country, except that it
may invest up to 35% of its assets in any one of the following countries:
Australia, Canada, France, Japan, the United Kingdom or Germany.

ALL FUNDS

U.S. TREASURY DEPARTMENT DIVERSIFICATION REGULATIONS. The U.S. Treasury
Department has issued diversification regulations under Section 817 of the
Internal Revenue Code. If a mutual fund underlying a variable contract, other
than a pension plan contract, is not adequately diversified within the terms of
these regulations, the contract owner will have adverse income tax consequences.
These regulations provide, among other things, that a mutual fund shall be
considered adequately diversified if (i) no more than 55% of the value of the
assets in the fund is represented by any one investment; (ii) no more than 70%
of the value of the assets in the fund is represented by any two investments;
(iii) no more than 80% of the value of the assets in the fund is represented by
any three investments and (iv) no more than 90% of the value of the total assets
of the fund is represented by any four investments. In determining whether the
diversification standards are met, each United States Government Agency or
instrumentality shall be treated as a separate issuer.

PORTFOLIO TURNOVER

The portfolio turnover rates for the Bond Fund for 1992, 1993 and 1994 were
434.1%, 494.3% and 328.8% respectively.

The portfolio turnover rates for the Stock Fund for 1992, 1993 and 1994 were
69.8%, 69.0% and 63.8% respectively.

<PAGE>

The portfolio turnover rates for the Advisers Fund for 1992, 1993 and 1994 were
72.8%, 55.3% and 60.0% respectively.

The portfolio turnover rates for the Capital Appreciation Fund for 1992, 1993
and 1994 were 100.3%, 91.4% and 73.3% respectively.

The portfolio turnover rates for the Mortgage Securities Fund for 1992, 1993 and
1994 were 277.2%, 183.4% and 365.7% respectively.

The portfolio turnover rate for the Index Fund for 1992, 1993 and 1994 were
1.2%, .8% and 1.8% respectively.

The portfolio turnover rate for the International Opportunities Fund for 1992,
1993 and 1994 were 24.7%, 25.1% and 31.8% respectively.

The portfolio turnover rate for the Dividend and Growth Fund for the period
March 8, 1994 to December 31, 1994 was 27.8%.

Because of the short-term nature of these securities and market conditions, no
meaningful or accurate prediction can be made of the portfolio turnover rate for
the Money Market and U.S. Government Money Market Funds.

The International Advisers Fund did not commence operations until February 28,
1995.

Turnover rate is computed by determining the percentage relationship of the
lesser of purchases and sales of securities to the monthly average of the value
of securities owned for the fiscal year, exclusive of securities whose
maturities at the time of acquisition were one year or less. A high turnover
rate will result in increased brokerage expenses and the likelihood of some
short term gains which may be taxable to shareholders at ordinary income tax
rates (see "Federal Income Taxes" in the prospectus).

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 1940, 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

<PAGE>

results of such auditor's engagement; and (3) reviewing the Fund's internal
audit arrangements.

JOSEPH ANTHONY BIERNAT
Director
30 Hurdle Fence Drive
Avon, CT 06001

Mr. Biernat served as Senior Vice President and Treasurer of United Technologies
Corporation from 1984 until March, 1987, when he retired. He subsequently
served as Executive Vice President of Boston Security Counselors, Inc.,
Hartford, Connecticut, and served as Vice President-Client Services of Wright
Investors' Service, Bridgeport, Connecticut. Mr. Biernat presently is
consulting to organizations on financial matters, with the majority of time
spent with T.O. Richardson & Co., Farmington, Connecticut.

WINIFRED ELLEN COLEMAN
Director
27 Buckingham Lane
West Hartford, CT 06117

Ms. Coleman has served as President of Saint Joseph College since 1991.

JOSEPH HARRY GAREAU
President
Hartford Plaza
Hartford, CT 06116

Mr. Gareau has served as the Executive Vice President and Chief Investment
Officer of ITT Hartford Insurance Group since April, 1993. Formerly, he served
as Senior Vice President (September, 1992 - April, 1993) and Vice President
(October, 1987 - September, 1992).

JOHN PHILIP GINNETTI*
Vice President
P.O. Box 2999
Hartford, CT 06104-2999

Mr. Ginnetti has served as Senior Vice President and Director of the Individual
Life and Annuities Division of ITT Hartford Insurance Group-Life Companies since
1988.

<PAGE>

GEORGE RICHARD JAY*
Controller
P.O. Box 2999
Hartford, CT 06104-2999

Mr. Jay has served as Secretary and Director, Life and Equity Accounting and
Financial Control of ITT Hartford Insurance Group-Life Companies since 1987.

CHARLES MINER O'HALLORAN*
Secretary
Hartford Plaza
Hartford, CT 06115

Mr. O'Halloran has served as Senior Associate General Counsel and Director of
the Corporate Unit of ITT Hartford Insurance Group since 1988.

WILLIAM ATCHISON O'NEILL
Director
Box 360
East Hampton, CT 06424

The Honorable William A. O'Neill served as Governor of the State of Connecticut
from 1980 until 1991. He is presently retired.

MILLARD HANDLEY PRYOR, JR.
Director
90 State House Square
Hartford, CT 06103

Mr. Pryor is the Chairman and Chief Executive Officer of Corcap, Inc., a holding
Company, and a Managing Director of Pryor & Clark Company, Hartford,
Connecticut. He served as Chairman of the Board of Lydall, Inc. from 1985 until
October, 1991 and formerly served as President and Chief Executive Officer.

LOWNDES ANDREW SMITH*
Director
P.O. Box 2999
Hartford, CT 06104-2999

Mr. Smith has served as President, Chief Operating Officer, and Director of ITT
Hartford Insurance Group-Life Companies and as a Director of ITT Hartford
Insurance Group since November, 1989. As President and Chief Operating Officer
of ITT Hartford Insurance

<PAGE>

Group-Life Companies. He has direct operating responsibilities for ITT Life and
Annuity Insurance Company in Minneapolis and Abbey Life of Canada.

JOHN KELLEY SPRINGER
Director
55 Farmington Avenue
Hartford, CT 06105

Mr. Springer has served as President and Chief Executive Officer of Connecticut
Health System, Inc., a hospital holding company, since 1986. Formerly, he
served as the President and Chief Executive Officer of Hartford Hospital,
Hartford, Connecticut.

JOSEPH WILLIAM TEDESCO*
Assistant Secretary
Hartford Plaza
Hartford, CT 06115

Mr. Tedesco has served as Director of Tax Administration of ITT Hartford
Insurance Group since 1987.

DONALD EDWARD WAGGAMAN, JR.*
Vice President and Treasurer
Hartford Plaza
Hartford, CT 06115

Mr. Waggaman has served as the Treasurer of the ITT Hartford Insurance
Group-Life Companies since December, 1992 and as Assistant Vice President of ITT
Hartford Insurance Group (since 1987) and Associate Treasurer (since September,
1990). Formerly, he served as Assistant Treasurer.

CUSTODIAN AND TRANSFER AGENT

Chase Manhattan Bank N.A., New York, New York, serves as Custodian of the Funds'
assets. The Custodian is not involved in determining investment policies of the
Funds or their portfolio securities transactions. Its services do not protect
shareholders against possible depreciation of their assets. The fees of Chase
Manhattan Bank are paid by the Funds and thus borne by the Funds' shareholders.

Hartford Life Insurance Company, Hartford Plaza, Hartford, Connecticut 06115,
serves as Transfer and Dividend Disbursing Agent for the Funds.

<PAGE>

The Custodian maintains actual custody of the securities of the Funds. The
Transfer Agent issues and redeems shares of the Funds and disburses any
dividends declared by the Funds.

INDEPENDENT PUBLIC ACCOUNTANTS

The financial statements and schedules included in this prospectus and elsewhere
in the registration statement have been audited by Arthur Andersen LLP,
independent public accountants, as indicated in their reports with respect
thereto, and are included herein in reliance upon the authority of said firm as
experts in accounting and auditing.

PORTFOLIO BROKERAGE

In accordance with the terms of the Investment Advisory Agreements and
Sub-Investment Advisory Agreements, the investment adviser or sub-investment
adviser (the "Adviser") places all portfolio brokerage on behalf of the Funds.
The 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 Funds.

Purchases and sales of debt securities issued or guaranteed by the U.S.
Government will usually 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 Adviser may also place
orders for the purchase of part of an issue of securities, on behalf of the
Funds, 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 Adviser has been authorized by the Boards of Directors of the Funds 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 Funds. Research services may include
statistical analysis and economic, market and individual security research. The
Adviser has been authorized by the Funds' 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. Evaluation of the
reasonableness of brokerage commissions is based on a broker's standard of
efficiency in executing and clearing a trade, and its ability to provide
information and services which help in the areas of research and portfolio
selection. There is no certainty that any research services thus acquired will
be beneficial to the Funds and under certain circumstances, other clients of the
Adviser may benefit from research

<PAGE>

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 Funds pay may tend to increase.

Subject to applicable laws and regulations, the Adviser may also consider the
willingness of particular brokers to sell ITT Hartford's variable annuity or
variable life insurance contracts as a factor in the selection of brokers for
its portfolio transactions. At all times, the Adviser attempts to obtain best
price and execution.

The aggregate amount of brokerage commissions paid by the Stock Fund for 1992,
1993 and 1994 was $857,000, $1,556,000 and $1,872,000 respectively.

The aggregate amount of brokerage commissions paid by the Advisers Fund in 1992,
1993 and 1994 was $884,000, $2,366,000 and $2,771,000 respectively.

The aggregate amount of brokerage commissions paid by the Capital Appreciation
Fund in 1992, 1993 and 1994 was $580,000, $1,595,000 and $2,045,000
respectively.

The aggregate amount of brokerage commissions paid by the Index Fund in 1992,
1993 and 1994 was $12,000, $48,000 and $24,000 respectively.

The aggregate amount of brokerage commissions paid by the International
Opportunities Fund in 1992, 1993, and 1994 was $144,000, $785,000 and $1,940,000
respectively.

The aggregate amount of brokerage commissions paid by the Dividend and Growth
Fund in 1994 was $65,000. The Dividend and Growth Fund commenced operations in
1994.

Changes in the amounts of brokerage commissions paid reflect changes in
portfolio turnover rates.

No brokerage commissions were paid in 1992, 1993 or 1994 by the Bond Fund, Money
Market Fund, Mortgage Securities Fund, or U.S. Government Money Market Fund.
The International Advisers Fund had not commenced operations in 1994.

DETERMINATION OF YIELD

HVA Money Market Fund, Inc.

The Fund's yield quotations as they appear in advertising and sales materials
are calculated by a method prescribed by the rules of the Securities and
Exchange Commission.

Yield calculations of the Fund used for illustration purposes are based on the
consideration of a

<PAGE>

hypothetical account having a balance of exactly one share at the beginning of a
seven day period, which period will end on the date of the most recent financial
statements. The yield for the fund during this seven day period will be the
change in the value of the hypothetical account, including dividends declared on
the original share, dividends declared on any shares purchased with dividends on
that share, and any monthly account charges or sales charges that would affect
an account of average size, but excluding any capital changes. The following is
an example of this yield calculation for the Fund based on a seven day period
ending December 31, 1994.

Example:

Assumptions:

Value of a hypothetical pre-existing account with exactly one share at the
beginning of the period: $1.000000

Value of the same account* (excluding capital changes) at the end of the
seven day period: $1.000554

*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 $1.000554
Less beginning account value 1.000000
---------
Net change in account value $0.000554

Base period return:
(adjusted change/beginning account value)
$0.000554/$1.000000 = $0.000554
---------

Current yield = $0.000554 x (365/7) = 2.89%
Effective yield = (1 + 0.000554) 365/7 - 1 = 2.93%

The current yield and effective 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. In addition, the
current yield and effective yield information may be of limited use for
comparative purposes because it does not reflect charges imposed at the Separate
Account level which, if included, would decrease the yield.

<PAGE>

Hartford U.S. Government Money Market Fund, Inc.

The Fund's yield quotations as they appear in advertising and sales materials
are calculated by a method prescribed by the rules of the Securities and
Exchange Commission.

Yield calculations of the Fund used for illustrations purposes are based on the
consideration of a hypothetical account having a balance of exactly one share at
the beginning of a seven day period, which period will end on the date of the
most recent financial statements. The yield for the Fund during this seven day
period will be the change in the value of the hypothetical account, including
dividends declared on the original share, dividends declared on any shares
purchased with dividends on that share, and any monthly account charges or sales
charges that would affect an account of average size, but excluding any capital
changes. The following is an example of this yield calculation for the fund
based on a seven day period ending December 31, 1994.

Example:

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: $1.000512

*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 $1.000512
Less beginning account value 1.000000
---------
Net change in account value $0.000512

Base period return:
(adjusted change/beginning account value)
$0.000512/$1.000000 = $0.000512
---------

Current yield = $0.000512 x (365/7) = 2.67%
Effective yield = (1 + 0.000512) 365/7 - 1 = 2.71%

<PAGE>

In addition, the current yield and effective yield information may be of limited
use for comparative purposes because it does not reflect charges imposed at the
Separate Account level which, if included, would decrease the yield.

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 four steps: (1) adding to the total number of shares purchased
by a hypothetical $1,000 investment in the Fund all additional shares which
would have been purchased if all dividends and distributions paid or distributed
during the period had been immediately reinvested; (2) 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; (3) assuming
redemption at the end of the period and deducting any applicable contingent
deferred sales charge and (4) 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.

PERFORMANCE COMPARISONS

YIELD AND TOTAL RETURN. Each Fund may from time to time include its yield
and/or total return in advertisements or information furnished to present or
prospective shareholders. Each Fund may from time to time include in
advertisements the ranking of those performance figures relative to such figures
for groups of mutual funds categorized by Lipper Analytical Services and
Morningstar, Inc. as having the same investment objectives.

The total return and yield may also be used to compare the performance of the
Funds against certain widely acknowledged outside standards or indices for stock
and bond market performance. The Standard & Poor's 500 Stock Price Index (the
"S&P 500") is a market value-weighted and unmanaged index showing the changes in
the aggregate market value of 500 stocks. The S&P 500 represents about 80% of
the market value of all issues traded on the New York Stock Exchange.

<PAGE>

The NASDAQ Composite OTC Price Index (the "NASDAQ Index") is a market
value-weighted and unmanaged index showing the changes in the aggregate market
value of approximately 3,500 stocks. The NASDAQ Index is composed entirely of
common stocks of companies traded over-the-counter and often through the
National Association of Securities Dealers Automated Quotations ("NASDAQ")
system. Only those over-the-counter stocks having only one market maker or
traded on exchanges are excluded.

The Lehman Government Bond Index (the "Lehman Government Index") is a measure of
the market value of all public obligations of the U.S. Treasury; all publicly
issued debt of all agencies of the U.S. Government and all quasi-federal
corporations; and all corporate debt guaranteed by the U.S. Government.
Mortgage backed securities, flower bonds and foreign targeted issues are not
included in the Lehman Government Index.

A. The Morgan Stanley Capital International EAFE Index (the "EAFE Index")
is an unmanaged index, which includes over 1,000 companies representing the
stock markets of Europe, Australia, New Zealand, and the Far East, The EAFE
Index is weighted by market capitalization, and therefore, it has a heavy
representation in countries with large stock markets, such as Japan.

The Lehman Government/Corporate Bond Index (the "Lehman Government/Corporate
Index") is a measure of the market value of approximately 5,300 bonds with a
face value currently in excess of $1,3 trillion. To be included in the Lehman
Government/Corporate Index, an issue must have amounts outstanding in excess of
$1 million, have at least one year to maturity and be rated "Baa" or higher
("investment grade") by a nationally recognized rating agency.

B. The Composite Index for Hartford Advisers Fund is comprised of the S&P
500 (55%), the Lehman Government/Corporate Bond Index (35%), both mentioned
above, and 90 Day U.S. Treasury Bills (10%).

C. The Russell 2500 Index is a market value-weighted, unmanaged index
showing total return (i.e., principal changes with income) in the aggregate
market value of 2,500 stocks of publicly traded companies domiciled in the
United States. The Index includes stocks traded on the New York Stock
Exchange and the American Stock Exchange as well as in the over-the-counter
market.

The Composite Index for Aggressive Growth Fund is the Russell 2500 Index
(60%)/S&P 500 Index (40%), both of which are mentioned above.

The manner in which total return and yield will be calculated for public use is
described above. The following table summarizes the calculation of total return
and yield for each Fund, where applicable, through December 31, 1994.

17
<PAGE>
REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS

TO THE BOARD OF DIRECTORS AND SHAREHOLDERS OF:
HARTFORD BOND FUND, INC., HARTFORD STOCK FUND, INC.,
HVA MONEY MARKET FUND, INC.,
HARTFORD ADVISERS FUND, INC., HARTFORD U.S. GOVERNMENT MONEY MARKET FUND, INC.,
HARTFORD AGGRESSIVE GROWTH FUND, INC., HARTFORD MORTGAGE SECURITIES FUND, INC.,
HARTFORD INDEX FUND, INC., HARTFORD INTERNATIONAL OPPORTUNITIES FUND, INC.,
AND HARTFORD DIVIDEND AND GROWTH FUND, INC.

We have audited the accompanying statements of net assets of Hartford Bond
Fund, Inc., Hartford Stock Fund, Inc., HVA Money Market Fund, Inc., Hartford
Advisers Fund, Inc., Hartford U.S. Government Money Market Fund, Inc., Hartford
Aggressive Growth Fund, Inc., Hartford Mortgage Securities Fund, Inc., Hartford
Index Fund, Inc., Hartford International Opportunities Fund, Inc., and Hartford
Dividend and Growth Fund, Inc., (all Maryland corporations) as of December 31,
1994, and the related statements of operations for the year then ended, the
statement of changes in net assets for each of the two years in the period then
ended (except for the Hartford Dividend and Growth Fund, Inc. which reflect the
period since inception, March 8, 1994, to December 31, 1994) and the financial
highlights for each of the five years in the period then ended (except for the
Hartford International Opportunities Fund, Inc. which reflect each of the four
years then ended and from the period since inception, July 2, 1990, to December
31, 1990 and the Hartford Dividend and Growth Fund, Inc. which reflect the
period since inception, March 8, 1994, to December 31, 1994). These financial
statements and financial highlights are the responsibility of the Funds'
management. Our responsibility is to express an opinion on these financial
statements and financial highlights based on our audits.

We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of
material misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements. Our
procedures included confirmation of securities owned as of December 31, 1994,
by correspondence with the custodian. An audit also includes assessing the
accounting principles used and significant estimates made by management, as
well as evaluating the overall financial statement presentation. We believe
that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of
Hartford 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 Aggressive Growth Fund, Inc., Hartford Mortgage Securities Fund,
Inc., Hartford Index Fund, Inc., Hartford International Opportunities Fund,
Inc., and Hartford Dividend and Growth Fund, Inc., as of December 31, 1994, the
results of their operations for the year then ended, the changes in their net
assets for each of the two years in the period then ended (except for the
Hartford Dividend and Growth Fund, Inc. which reflect the period since
inception, March 8, 1994, to December 31, 1994) and the financial highlights
for each of the five years in the period then ended (except for the Hartford
International Opportunities Fund, Inc. which reflect each of the four years
then ended and from the period since inception, July 2, 1990, to December 31,
1990 and the Hartford Dividend and Growth Fund, Inc. which reflect the period
since inception, March 8, 1994, to December 31, 1994) in conformity with
generally accepted accounting principles.

Hartford, Connecticut
February 10, 1995 Arthur Andersen LLP

18
<PAGE>
HARTFORD BOND FUND, INC.
STATEMENT OF NET ASSETS
DECEMBER 31, 1994

<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
- ----------- -------------
<C> <S> <C>
LONG-TERM BONDS -- 89.6%
FEDERAL AGENCIES COLLATERALIZED MORTGAGE
OBLIGATION -- 5.4%
Federal Home Loan Mortgage
Corporation
$ 2,419,294 8.100% due 12/15/04......... $ 2,419,004
Federal National Mortgage
Association
5,593,000 6.500% due 07/25/23......... 4,536,818
6,605,272 7.500% due 01/25/19 -
02/25/19.................... 6,430,940
-------------
13,386,762
-------------
COLLATERALIZED MORTGAGE OBLIGATIONS -- 3.5%
Oakwood Mortgage Investors
6,455,000 8.400% due 02/15/15......... 6,387,424
2,333,178 Paine Webber 94-7 Class AA
6.750% due 04/25/24......... 2,257,910
-------------
8,645,334
-------------
FEDERAL AGENCIES -- 12.3%
Federal Home Loan Mortgage
Corporation
5,000,000 6.250% due 02/15/18 4,419,650
5,000,000 6.800% due 03/15/23......... 4,202,400
3,703,780 7.000% due 04/15/17......... 3,671,891
1,000,000 7.800% due 05/15/12......... 981,030
770,608 8.000% due 01/15/19......... 769,467
Federal National Mortgage
Association
5,000,000 5.800% due 12/10/03......... 4,258,385
5,000,001 7.000% due 06/01/23......... 4,541,151
3,000,000 8.200% due 03/10/16......... 2,940,474
Government National Mortgage
Association
5,000,000 7.000% due 02/01/09......... 4,676,565
-------------
30,461,013
-------------
U.S. GOVERNMENT SECURITIES -- 31.2%
U.S. Treasury Bonds
22,050,000 8.125% due 08/15/19......... 22,325,625
5,000,000 8.875% due 08/15/17......... 5,442,185
3,000,000 9.375% due 02/15/06......... 3,328,125
1,500,000 11.750% due 11/15/14........ 1,987,500
U.S. Treasury Notes
11,300,000 6.375% due 08/15/02......... 10,350,088
8,000,000 6.500% due 04/30/99......... 7,605,000
9,500,000 6.875% due 07/31/99......... 9,149,688
6,400,000 7.250% due 05/15/04......... 6,145,997
4,000,000 7.875% due 07/15/96......... 4,015,000
U.S. Treasury Strips
9,000,000 0.000% due 08/15/98......... 6,798,150
-------------
77,147,358
-------------
CHEMICALS -- 2.2%
Eastman Chemical Company
2,500,000 7.625% due 06/15/24......... 2,340,045
Ethyl Corp.
3,000,000 9.800% due 09/15/98......... 3,038,814
-------------
5,378,859
-------------
CONSUMER DURABLES -- 1.6%
MASCO Corp.
4,000,000 9.000% due 04/15/96......... 4,035,220
-------------
ELECTRONICS -- 1.3%
Motorola Inc.
3,100,000 8.400% due 08/15/31......... 3,167,546
-------------
ENERGY & SERVICES -- 1.8%
Enron Corp.
$ 1,000,000 9.650% due 05/15/01......... $ 1,054,837
Mobil Oil
735,375 9.170% due 02/29/00......... 758,008
Union Oil Co. of California
2,500,000 9.375% due 02/15/11......... 2,637,675
-------------
4,450,520
-------------

FINANCIAL SERVICES -- 7.4%
Aristar Inc.
3,000,000 6.250% due 07/15/96......... 2,922,890
Bank of New York
3,000,000 7.625% due 07/15/02......... 2,823,066
Chrysler Financial Corp.
2,500,000 8.125% due 12/15/96......... 2,485,755
Ford Motor Credit Company
3,000,000 7.750% due 11/15/02......... 2,841,672
General Motors Acceptance
Corp.
4,000,000 5.700% due 12/22/97......... 3,707,640
IBM Credit Corp.
3,500,000 6.058% due 07/28/98......... 3,500,000
-------------
18,281,023
-------------

FOREIGN GOVERNMENTS -- 4.2%
Bank of Montreal
2,000,000 10.000% due 09/01/98........ 2,097,642
Belgium Kingdom
1,000,000 9.200% due 06/28/10......... 1,088,000
KFW International Finance Inc.
1,000,000 7.000% due 03/01/13......... 872,306
Landeskreditbank
Baden-Wurttemberg
3,150,000 7.625% due 02/01/23......... 2,863,016
Province of Manitoba Debenture
1,230,000 9.125% due 01/15/18......... 1,331,918
Skandinaviska Enskilda Banken
2,500,000 6.875% due 02/15/09......... 2,080,017
-------------
10,332,899
-------------
INDUSTRIAL MATERIALS -- 2.5%
Georgia-Pacific
3,000,000 9.950% due 06/15/02......... 3,197,079
Noranda Inc.
3,000,000 6.688% due 08/18/00......... 3,013,500
-------------
6,210,579
-------------
MEDIA & SERVICES -- 0.4%
Tele-Communications, Inc.
1,000,000 8.650% due 09/15/04......... 957,230
-------------
UTILITIES -- 5.4%
Baltimore Gas & Electric Co.
3,000,000 5.775% due 04/15/99......... 2,970,000
Bell Telephone Co. of
Pennsylvania
3,000,000 8.350% due 12/15/30......... 3,101,346
Chesapeake & Potomac Telephone
1,500,000 8.300% due 08/01/31......... 1,524,219
GTE Corp.
3,000,000 8.850% due 03/01/98......... 3,037,223
Texas Utilities Electric
3,000,000 5.875% due 04/01/98......... 2,786,160
-------------
13,418,948
-------------
</TABLE>

THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.

19
<PAGE>

<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
- ---------- ---------------
<C> <S> <C>
LONG-TERM BONDS -- (CONTINUED)
ASSET-BACKED SECURITIES -- 8.5%
Corestates 94-1 A
$ 4,752,652 6.650% due 05/15/09......... $ 4,545,674
Discover 93-1
3,000,000 5.300% due 10/16/01......... 2,667,630
Fleet 94-B A
4,627,081 6.750% due 03/15/10......... 4,443,109
Green Tree 93-3 A-2
5,000,000 4.900% due 10/15/18......... 4,737,200
Green Tree 93-3 A-3
5,000,000 5.200% due 10/15/18......... 4,590,400
-------------
20,984,013
-------------
CERTIFICATES OF DEPOSIT -- 2.0%
Abbey National First Capital
3,000,000 8.200% due 10/15/04......... 2,934,420
First USA Bank
2,000,000 5.050% due 10/16/95......... 1,952,200
-------------
4,886,620
-------------
Total Long-Term Bonds......... $ 221,743,924
-------------
-------------

SHORT-TERM SECURITIES -- 10.8%

COMMERCIAL PAPER -- 1.2%
American Honda Finance
$ 3,000,000 6.120% due 01/10/95......... $ 2,994,900
-------------
REPURCHASE AGREEMENT -- 9.6%
23,611,000 Interest in $92,095,000
joint repurchase agreement
dated 12/30/94 with Shawmut
Bank 5.95% due 01/03/95;
maturity amount $23,626,609;
(Collateralized by
$96,165,000 U.S. Treasury
Note 4.250% due 11/30/95)... 23,611,000
-------------
Total Short-Term Securities... $ 26,605,900
-------------
-------------
</TABLE>

<TABLE>
<S> <C> <C>
DIVERSIFICATION OF ASSETS:
Total long-term bonds........................ 89.6 % $221,743,924
Total short-term securities.................. 10.8 26,605,900
------ ------------
Total investment in securities
*(Identified cost $255,720,192)............ 100.4 248,349,824
Excess of liabilities over cash and
receivables................................ (0.4) (891,737)
------ ------------
Net assets (Applicable to $.92602 per share
based on 267,227,677 shares outstanding)... 100.0% $247,458,087
------ ------------
------ ------------

SUMMARY OF SHAREHOLDERS' EQUITY:
Capital stock, par value $.10 per share; authorized
800,000,000 shares; outstanding 267,227,677
shares............................................. $ 26,722,768
Capital surplus...................................... 245,131,510
Undistributed net realized (loss) on investments..... (17,025,823)
Unrealized depreciation of investments............... (7,370,368)
------------
Net assets, applicable to shares outstanding......... $247,458,087
------------
------------
<FN>
* Aggregate cost for Federal income tax purposes.
</TABLE>

20
<PAGE>
HARTFORD STOCK FUND, INC.
STATEMENT OF NET ASSETS
DECEMBER 31, 1994

<TABLE>
<CAPTION>
MARKET
SHARES VALUE
- ----------- --------------
<C> <S> <C>
COMMON STOCKS -- 85.9%
BUSINESS SERVICES -- 3.0%
*175,000 Cisco Systems Inc............. $ 6,146,875
320,000 Pitney Bowes Inc.............. 10,160,000
190,000 Xerox......................... 18,810,000
--------------
35,116,875
--------------
CONSUMER DURABLES -- 3.4%
450,000 General Motors Corp........... 19,012,500
410,000 Whirlpool Corp................ 20,602,500
--------------
39,615,000
--------------
CONSUMER NON-DURABLES -- 9.0%
280,000 Anheuser Busch Cos. Inc....... 14,245,000
250,000 General Mills Corp............ 14,250,000
430,000 Kimberly Clark Corp........... 21,715,000
350,000 Pepsico Inc................... 12,687,500
350,000 Philip Morris................. 20,125,000
820,000 Sara Lee Corp................. 20,705,000
--------------
103,727,500
--------------
CONSUMER SERVICES -- 2.1%
*710,000 Circus Circus Enterprises..... 16,507,500
500,000 International Game
Technology.................. 7,750,000
--------------
24,257,500
--------------
ELECTRONICS -- 1.0%
50,000 Intel Corp.................... 3,193,750
140,000 Motorola Inc.................. 8,102,500
--------------
11,296,250
--------------
ENERGY & SERVICES -- 10.7%
320,000 Amoco Corporation............. 18,920,000
487,100 Burlington Resources.......... 17,048,500
640,000 Exxon......................... 38,880,000
250,000 Fluor Corp.................... 10,781,250
350,000 Kerr McGee Corp............... 16,100,000
*50,000 Reading & Bates Corp.......... 300,000
400,000 Schlumberger Ltd.............. 20,150,000
62,500 Vastar Resources Inc.......... 1,554,687
--------------
123,734,437
--------------
FINANCIAL SERVICES -- 9.0%
500,000 Allstate Corp................. 11,812,500
75,000 Federal National Mortgage
Association................. 5,465,625
50,000 Franklin Resources Inc........ 1,781,250
350,000 Green Point Financial Corp.... 7,218,750
320,000 Marsh and Mclennan Cos.,
Inc......................... 25,360,000
153,600 Merrill Lynch & Co. Inc....... 5,491,200
230,000 J.P. Morgan................... 12,880,000
170,000 Republic New York Corp........ 7,692,500
555,000 Travelers Inc................. 18,037,500
250,000 Unum Corp..................... 9,437,500
--------------
105,176,825
--------------
HEALTH CARE -- 8.1%
600,000 Abbott Laboratories........... 19,575,000
110,000 American Home Products
Corp........................ 6,902,500
350,000 IVAX Corp..................... 6,650,000
280,000 Johnson & Johnson............. 15,330,000
300,000 Merck & Co., Inc.............. 11,437,500
200,000 Pfizer, Inc................... 15,450,000

HEALTH CARE -- (CONTINUED)

550,000 SmithKline Beecham PLC ADR
Unit........................ $ 18,837,500
--------------
94,182,500
--------------
INDUSTRIAL MATERIALS -- 10.7%
285,000 Air Products & Chemical
Corp........................ 12,718,125
125,000 Aluminum Company of America... 10,828,125
235,000 Dow Chemical.................. 15,803,750
400,000 Dupont EI De Nemours.......... 22,500,000
260,000 Eastman Chemical Co........... 13,130,000
550,000 Englehard Corp................ 12,237,500
130,000 International Paper Co........ 9,798,750
500,000 Louisiana Pacific Corp........ 13,625,000
216,900 Phelps Dodge Corp............. 13,420,688
--------------
124,061,938
--------------
MANUFACTURING -- 5.1%
900,000 General Electric.............. 45,900,000
431,000 Ingersoll-Rand Company........ 13,576,500
--------------
59,476,500
--------------

MEDIA & SERVICES -- 10.8%
270,000 CBS Inc....................... 14,951,250
200,000 Capital Cities/ABC Inc........ 17,050,000
600,000 Gannett Co., Inc.............. 31,950,000
550,000 Gaylord Entertainment Class
A........................... 12,512,500
700,000 Time Warner Inc............... 24,587,500
*68,000 Viacom Inc.-Class A........... 2,830,500
*850,000 Viacom Inc.-RT................ 956,250
*515,228 Viacom Inc.-Class B........... 20,931,117
--------------
125,769,117
--------------
REAL ESTATE -- 1.4%
63,000 Burnham Pacific Property...... 803,250
390,000 General Growth Properties..... 8,823,750
350,000 Spieker Properties............ 7,131,250
--------------
16,758,250
--------------
RETAIL -- 6.6%
450,000 Albertson's Inc............... 13,050,000
309,400 Dillard Department Stores
Class A..................... 8,276,450
300,000 May Department Stores Co...... 10,125,000
850,000 McDonalds Corp................ 24,862,500
960,000 Wal-Mart...................... 20,400,000
--------------
76,713,950
--------------
TRANSPORTATION -- 2.4%
620,000 Union Pacific Corp............ 28,287,500
--------------
UTILITY -- 2.6%
250,000 AT&T Corp..................... 12,562,500
975,000 MCI Communications............ 17,915,625
--------------
30,478,125
--------------
Total Common Stocks........... $ 998,652,267
--------------
--------------
PREFERRED STOCKS -- 5.5%
CONSUMER DURABLES -- 2.6%
110,000 Chrysler Corp. 144-A.......... $ 15,083,750
160,000 Ford Motor Company Series A... 14,720,000
--------------
29,803,750
--------------
</TABLE>

THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.

21
<PAGE>

<TABLE>
<CAPTION>
MARKET
SHARES VALUE
- ----------- --------------
<C> <S> <C>

PREFERRED STOCKS -- (CONTINUED)
CONSUMER NON-DURABLES -- 1.1%
2,200,000 RJR Nabisco Preferred Equity
Redemption Cumulative
Stock....................... $ 13,200,000
--------------
CONSUMER SERVICES -- 0.3%
220,000 First Chicago Debt
Exchangeable for Common
Stock....................... 3,850,000
--------------
ENERGY -- 0.8%
191,000 Occidental Petroleum 144A..... 9,263,500
--------------
REAL ESTATE -- 0.7%
347,500 Property Trust of America..... 7,645,000
--------------
Total Preferred Stocks........ $ 63,762,250
--------------
--------------

PRINCIPAL
AMOUNT
- ------------
CONVERTIBLE CORPORATE BONDS -- 2.9%
CONSUMER SERVICES -- 1.0%
Autotote Corp.
$ 16,000,000 5.500% due 08/20/01......... $ 11,190,128
--------------
INDUSTRIAL -- 0.4%
Empresas ICA Sociedad
7,250,000 5.000% due 03/15/04......... 4,957,188
--------------
MEDIA & SERVICES -- 1.0%
News America Holdings
*30,940,000 0.000% due 03/11/13......... 11,370,450
--------------
TRANSPORTATION -- 0.5%
AMR Corp.
7,500,000 6.125% due 11/01/24......... 6,037,500
--------------
Total Convertible Corporate
Bonds....................... $ 33,555,266
--------------
--------------

SHORT-TERM SECURITIES -- 9.0%
$105,160,000 Repurchase Agreement dated
12/30/94 with Donaldson,
Lufkin & Jenrette 5.875% due
01/03/95; maturity amount
$105,228,646;
(Collateralized by
$110,964,000 U.S. Treasury
Notes 5.000% to 7.875% due
04/15/98 to 08/15/02)....... $ 105,160,000
--------------
--------------
</TABLE>

<TABLE>
<CAPTION>
DIVERSIFICATION OF ASSETS:
<S> <C> <C>
Total common stocks.......................... 85.9 % $ 998,652,267
Total preferred stocks....................... 5.5 63,762,250
Total convertible corporate bonds............ 2.9 33,555,266
Total short-term securities.................. 9.0 105,160,000
------ --------------
Total investment in securities
**(Identified cost $1,170,475,768)......... 103.3 1,201,129,783
Excess of liabilities over cash and
receivables................................ (3.3) (37,971,801)
------ --------------
Net assets (Applicable to $2.80146 per share
based on 415,196,663 shares outstanding)... 100.0% $1,163,157,982
------ --------------
------ --------------

SUMMARY OF SHAREHOLDERS' EQUITY:
Capital stock, par value $.10 per share; authorized
800,000,000 shares; outstanding 415,196,663
shares............................................. $ 41,519,666
Capital surplus...................................... 1,043,494,655
Undistributed net realized gain on investments....... 47,489,646
Unrealized appreciation of investments............... 30,654,015
--------------
Net assets, applicable to shares outstanding......... $1,163,157,982
--------------
--------------
<FN>
* Non-income producing during period.
** Aggregate cost for Federal income tax purposes.
</TABLE>

22
<PAGE>
HVA MONEY MARKET FUND, INC.
STATEMENT OF NET ASSETS
DECEMBER 31, 1994
<TABLE>
<CAPTION>
AMORTIZED
PRINCIPAL COST AND
AMOUNT VALUE
- ----------- --------------
<C> <S> <C>
CORPORATE BONDS -- 2.8%
BANKS
First National Bank of Boston
$ 4,000,000 5.550% due 01/04/95......... $ 4,000,000
5,000,000 5.690% due 02/22/95......... 5,000,000
--------------
9,000,000
--------------
COMMERCIAL PAPER -- 75.3%
ANZ (Delaware) Inc.
4,000,000 5.010% due 01/20/95......... 3,988,867
5,000,000 5.020% due 02/03/95......... 4,976,294
American Home Products
4,000,000 5.900% due 01/18/95......... 3,988,200
5,000,000 5.920% due 02/06/95......... 4,969,578
2,500,000 6.000% due 02/08/95......... 2,483,750
American Honda Finance
5,000,000 5.620% due 01/09/95......... 4,992,975
4,000,000 6.300% due 03/06/95......... 3,954,500
Aristar Inc.
4,000,000 5.550% due 01/26/95......... 3,983,967
5,000,000 6.050% due 02/22/95......... 4,955,465
AT&T Co.
4,000,000 5.030% due 02/14/95......... 3,974,850
5,000,000 5.750% due 02/07/95......... 4,969,653
Bass Finance C.I. Ltd.
5,000,000 6.250% due 03/06/95......... 4,943,576
Canadian Wheat Board
5,000,000 5.030% due 02/15/95......... 4,967,864
Commerzbank U.S. Financ
5,500,000 6.530% due 06/23/95......... 5,326,411
Corporate Asset Funding Company
5,000,000 5.700% due 01/23/95......... 4,981,792
4,000,000 6.200% due 04/03/95......... 3,935,933
Dean Witter, Discover Card
5,000,000 5.200% due 01/03/95......... 4,997,833
4,000,000 5.500% due 01/05/95......... 3,996,944
Electronic Data Systems
4,000,000 5.520% due 01/09/95......... 3,994,480
5,000,000 6.150% due 02/27/95......... 4,950,458
Fleet Financial Group
5,000,000 6.080% due 01/04/95......... 4,996,622
Goldman Sachs Group Limited Partnership
3,500,000 5.000% due 01/03/95......... 3,498,542
General Motors Acceptance Corp.
5,000,000 6.220% due 02/07/95......... 4,967,172
4,000,000 6.440% due 04/13/95......... 3,926,298
Gillette Co.
5,000,000 5.700% due 02/06/95......... 4,970,708
Greyhound Financial
4,500,000 5.500% due 01/10/95......... 4,493,125
4,500,000 5.720% due 01/11/95......... 4,492,135
Honeywell Inc.
$ 4,500,000 5.450% due 02/13/95......... $ 4,470,025
Merrill Lynch & Co.
9,000,000 5.520% due 02/17/95-02/21/95 8,931,307
Nationwide Building Society
5,000,000 5.250% due 03/21/95......... 4,941,667
4,000,000 5.790% due 01/23/95......... 3,985,203
Northern Indiana Public
5,000,000 5.950% due 01/30/95......... 4,975,208
4,000,000 6.320% due 02/21/95......... 3,963,484
NYNEX Corp.
5,000,000 5.580% due 02/10/95......... 4,968,225
4,000,000 5.670% due 02/03/95......... 3,978,580
Pacific Dunlop Asia Ltd.
5,000,000 5.125% due 02/02/95......... 4,976,510
4,000,000 5.550% due 03/27/95......... 3,946,968
Rockwell International
5,000,000 6.585% due 06/01/95......... 4,860,983
4,000,000 6.630% due 06/05/95......... 3,885,080
RTZ America Inc.
4,000,000 6.200% due 03/01/95......... 3,958,667
Sharp Electronics Corp.
5,000,000 5.350% due 01/20/95......... 4,985,139
4,000,000 6.350% due 04/07/95......... 3,931,561
2,500,000 6.425% due 05/05/95......... 2,444,227
Spintab D/N
5,000,000 6.100% due 03/15/95......... 4,937,306
4,000,000 6.300% due 03/15/95......... 3,948,200
Tambrands Inc.
5,000,000 5.050% due 01/17/95......... 4,988,076
4,000,000 5.820% due 02/16/95......... 3,969,607
US Bankcorp DN
4,000,000 5.400% due 01/09/95......... 3,994,600
U.S. Borax & Chemical Corp.
4,700,000 6.200% due 03/15/95......... 4,640,101
USL Capital
4,000,000 5.750% due 01/05/95......... 3,996,806
Westpac Capital Corp.
5,000,000 5.050% due 01/17/95......... 4,988,076
Whirlpool Corp.
5,000,000 5.480% due 01/23/95......... 4,982,495
Zeneca, Inc.
5,000,000 5.480% due 01/23/95......... 4,982,494
3,000,000 5.750% due 02/01/95......... 2,984,667
--------------
242,293,254
--------------
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
23
<PAGE>

<TABLE>
<CAPTION>
AMORTIZED
PRINCIPAL COST AND
AMOUNT VALUE
- ----------- --------------
<C> <S> <C>
CORPORATE NOTES -- 4.7%

Abbey National Treasury
$ 5,000,000 5.540% due 11/16/95......... $ 4,996,607
MBNA America Bank Notes
5,000,000 5.650% due 03/21/95 5,000,000
Pepsico Inc. Floating Rate
5,000,000 3.845% due 04/13/95......... 4,999,647
--------------
14,996,254
--------------
REPURCHASE AGREEMENT -- 17.2%
55,230,000 Interest in $92,095,000 joint
repurchase agreement dated
12/30/94 with Shawmut Bank
5.950% due 01/03/95 maturity
amount $55,266,513;
(Collateralized by
$96,165,000 U.S. Treasury
Note 4.250% due 11/30/95)... 55,230,000
--------------
Total Short-Term Securities... $ 321,519,508
--------------
--------------

</TABLE>

<TABLE>
<CAPTION>
DIVERSIFICATION OF ASSETS:
<S> <C> <C>
Total investment in securities
*(Identified cost $321,519,508)............ 100.0% $321,519,508
Excess of liabilities over cash and
receivables................................ (0.0) (54,836)
------ ------------
Net assets (Applicable to $1.00 per share
based on 321,464,672 shares outstanding)... 100.0% $321,464,672
------ ------------
------ ------------
SUMMARY OF SHAREHOLDERS' EQUITY:
Capital stock, par value $.10 per share; authorized
800,000,000 shares; outstanding 321,464,672
shares............................................. $ 32,146,467
Capital surplus...................................... 289,318,205
------------
Net assets, applicable to shares outstanding......... $321,464,672
------------
------------
<FN>
* Aggregate cost for Federal income tax purposes.
</TABLE>

24
<PAGE>
HARTFORD ADVISERS FUND, INC.
STATEMENT OF NET ASSETS
DECEMBER 31, 1994

MARKET
SHARES VALUE
- ----------- -------------
<C> <S> <C>
COMMON STOCKS -- 51.1%
COMPUTER & SERVICES -- 1.9%
*275,000 Cisco Systems Inc............. $ 9,659,375
575,000 Pitney Bowes Inc.............. 18,256,250
290,000 Xerox......................... 28,710,000
-------------
56,625,625
-------------
CONSUMER DURABLES -- 2.0%
700,000 General Motors Corp........... 29,575,000
640,000 Whirlpool Corp................ 32,160,000
-------------
61,735,000
-------------
CONSUMER NON-DURABLES -- 5.2%
410,000 Anheuser Busch Cos. Inc....... 20,858,750
375,000 General Mills Comp............ 21,375,000
620,000 Kimberly Clark Corp........... 31,310,000
600,000 Pepsico Inc................... 21,750,000
500,000 Philip Morris................. 28,750,000
1,350,000 Sara Lee Corp................. 34,087,500
-------------
158,131,250
-------------
CONSUMER SERVICES -- 1.3%
*1,170,000 Circus Circus Enterprises..... 27,202,500
700,000 International Game
Technology.................. 10,850,000
-------------
38,052,500
-------------
ELECTRONICS -- 0.6%
80,000 Intel Corp.................... 5,110,000
250,000 Motorola Inc.................. 14,468,750
-------------
19,578,750
-------------
ENERGY & SERVICES -- 6.1%
580,000 Amoco Corporation............. 34,292,500
587,100 Burlington Resources.......... 20,548,500
920,000 Exxon......................... 55,890,000
330,000 Fluor Corp.................... 14,231,250
550,000 Kerr McGee Corp............... 25,300,000
*150,000 Reading & Bates Corp.......... 900,000
600,000 Schlumberger Ltd.............. 30,225,000
62,500 Vastar Resources Inc.......... 1,554,688
-------------
182,941,938
-------------
FINANCIAL SERVICES -- 5.6%
900,000 Allstate Corp................. 21,262,500
150,000 Federal National Mortgage
Association................. 10,931,250
60,000 Franklin Resources Inc........ 2,137,500
350,000 Green Point Financial Corp.... 7,218,750
490,000 Marsh and McLennan Cos.,
Inc......................... 38,832,500
153,700 Merrill Lynch & Co. Inc....... 5,494,775
470,000 J.P. Morgan................... 26,320,000
150,000 PNC Bank Corp................. 3,168,750
250,000 Republic New York Corp........ 11,312,500
945,000 Travelers Inc................. 30,712,500
360,000 UNUM Corp..................... 13,590,000
-------------
170,981,025
-------------
HEALTH CARE -- 4.9%
1,000,000 Abbott Laboratories........... 32,625,000
120,000 American Home Products
Corp........................ 7,530,000
500,000 IVAX Corp..................... 9,500,000
450,000 Johnson & Johnson............. 24,637,500

HEALTH CARE -- (CONTINUED)
500,000 Merck & Co., Inc.............. $ 19,062,500
300,000 Pfizer, Inc................... 23,175,000
900,000 SmithKline Beecham PLC ADR
Unit........................ 30,825,000
-------------
147,355,000
-------------
INDUSTRIAL MATERIALS -- 6.2%
430,000 Air Products & Chemical
Corp........................ 19,188,750
175,000 Aluminum Company of America... 15,159,375
350,000 Dow Chemical.................. 23,537,500
580,000 DuPont EI De Nemours.......... 32,625,000
410,000 Eastman Chemical Co........... 20,705,000
900,000 Englehard Corp................ 20,025,000
240,000 International Paper Co........ 18,090,000
800,000 Louisiana Pacific Corp........ 21,800,000
283,700 Phelps Dodge Corp............. 17,553,938
-------------
188,684,563
-------------
MANUFACTURING -- 3.0%
1,410,000 General Electric.............. 71,910,000
650,100 Ingersoll-Rand Company........ 20,478,150
-------------
92,388,150
-------------
MEDIA & SERVICES -- 6.3%
400,000 CBS Inc....................... 22,150,000
300,000 Capital Cities/ABC Inc........ 25,575,000
920,000 Gannett Co., Inc.............. 48,990,000
810,000 Gaylord Entertainment
Class A..................... 18,427,500
360,000 News Corp Ltd. ADR............ 5,625,000
1,000,000 Time Warner Inc............... 35,125,000
*96,000 Viacom Inc.-Class A........... 3,996,000
*1,200,000 Viacom Inc.-RT................ 1,350,000
*727,380 Viacom Inc.-Class B........... 29,549,812
-------------
190,788,312
-------------
REAL ESTATE -- 0.7%
63,000 Burnham Pacific Property...... 803,250
460,000 General Growth Properties..... 10,407,500
500,000 Spieker Properties............ 10,187,500
-------------
21,398,250
-------------
RETAIL -- 4.6%
1,000,000 Albertson's Inc............... 29,000,000
719,400 Dillard Department Stores
Class A..................... 19,243,950
600,000 May Department Stores Co...... 20,250,000
1,400,000 McDonalds Corp................ 40,950,000
1,400,000 Wal-Mart...................... 29,750,000
-------------
139,193,950
-------------
TRANSPORTATION -- 1.3%
890,000 Union Pacific Corp............ 40,606,250
-------------
UTILITIES -- 1.4%
350,000 AT&T Corp..................... 17,587,500
1,325,000 MCI Communications............ 24,346,875
-------------
41,934,375
-------------
Total Common Stocks........... $1,550,394,938
-------------
-------------
</TABLE>

THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.

25
<PAGE>
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
- ----------- -------------
<C> <S> <C>
PREFERRED STOCKS -- 3.6%
CONSUMER DURABLES -- 1.6%
180,000 Chrysler Corp. 144-A ......... $ 24,682,500
264,000 Ford Motor Company Series A... 24,288,000
-------------
48,970,500
-------------
CONSUMER NON-DURABLES -- 0.7%
3,300,000 RJR Nabisco Preferred Equity
Redemption Cumulative
Stock....................... 19,800,000
-------------
CONSUMER SERVICES -- 0.2%
370,000 First Chicago Debt Exchangable
for Common Stock............ 6,475,000
-------------
ENERGY -- 0.6%
397,200 Occidental Petroleum 144A..... 19,264,200
-------------
MEDIA & SERVICES -- 0.1%
180,000 News Corp.-Pref. Shares ADR... 2,497,500
-------------
REAL ESTATE -- 0.4%
591,900 Property Trust of America..... 13,021,800
-------------
Total Preferred Stocks........ $110,029,000
-------------
-------------
PRINCIPAL
AMOUNT
- -----------
LONG-TERM BONDS -- 33.8%
U.S. TREASURY NOTES & BONDS -- 26.8%
$50,000,000 3.875% due 08/31/95......... 49,000,000
25,000,000 4.250% due 11/30/95......... 24,343,750
120,000,000 4.625% due 02/15/96......... 116,400,000
50,000,000 6.500% due 08/15/97......... 48,484,350
100,000,000 7.125% due 02/15/23......... 90,937,500
100,000,000 7.250% due 05/15/16......... 92,375,000
325,000,000 7.500% due 11/15/01-11/15/16 313,992,100
50,000,000 7.875% due 11/15/04......... 50,140,600
25,000,000 8.875% due 02/15/19......... 27,273,425
-------------
812,946,725
-------------
FEDERAL AGENCIES -- 0.5%
Federal Home Loan Mortgage
Corp.
7,898,028 6.500% due 06/01/04-08/01/14 7,530,805
8,185,196 8.000% due 03/15/97......... 8,190,788
46,559 8.500% due 05/01/01......... 46,243
-------------
15,767,836
-------------

FEDERAL HOME LOAN MORTGAGE CORP. CMO -- 0.2%
3,166,000 7.000% due 08/25/03......... 2,921,458
2,618,378 8.500% due 03/15/97......... 2,599,476
-------------
5,520,934
-------------
FEDERAL NATIONAL MORTGAGE ASSOCIATION -- 1.1%
669,076 6.000% due 03/15/20......... 575,151
14,543,300 6.125% due 07/25/03......... 13,093,653
162,224 6.500% due 06/01/03......... 158,786
3,347,154 6.750% due 08/01/08......... 3,152,349
6,920,016 7.000% due 09/01/04-04/01/08 6,638,617
406,830 7.250% due 12/25/96......... 404,763
2,699,210 7.500% due 06/25/97......... 2,676,834
2,878,951 8.750% due 08/25/21......... 2,901,522
5,000,000 9.000% due 09/25/00......... 5,037,500
-------------
34,639,175
-------------
LONG-TERM BONDS -- (CONTINUED)
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION 5.2%
$83,543,659 6.500% due 03/15/23-09/15/24 $ 72,397,906
93,429,414 7.000% due 01/15/23-06/15/24 83,832,880
39,737 11.000% due 06/15/13........ 43,463
-------------
156,274,248
-------------
Total Long-Term Bonds......... $1,025,148,918
-------------
-------------
CONVERTIBLE CORPORATE BONDS -- 1.8%
24,000,000 CONSUMER SERVICES -- 0.6%
Autotote Corporation
5.500% due 08/20/01......... 16,785,192
-------------
10,500,000 INDUSTRIAL -- 0.2%
Empresas ICA Sociedad
5.000% due 03/15/04......... 7,179,375
-------------
*42,660,000 MEDIA & SERVICES -- 0.5%
News America Holdings
0.000% due 03/11/13......... 15,677,550
-------------
12,500,000 TRANSPORTATION -- 0.3%
AMR Corp.
6.125% due 11/01/24......... 10,062,500
-------------
8,000,000 UTILITIES -- 0.2%
Korea Electric Power Global
6.375% due 12/01/03......... 6,762,512
------------
Total Convertible Corporate
Bonds....................... $ 56,467,129
-------------
-------------
NON-CONVERTIBLE CORPORATE BONDS -- 7.8%
ASSET-BACKED -- 0.2%
5,000,000 Discover Card 92-A
5.500% due 05/16/98......... 4,908,900
912,366 GMAC 92-D Grantor Trust
5.550% due 05/15/97......... 901,409
-------------
5,810,309
-------------
CONSUMER SERVICES -- 0.7%
15,000,000 Circus Circus Enterprises
6.750% due 07/15/03......... 13,013,700
10,000,000 Hertz Corp.
6.000% due 02/01/01......... 8,799,240
-------------
21,812,940
-------------
FEDERAL AGENCIES -- 0.1%
1,659,569 Resolution Trust Corp. 91-6 E
11.626% due 05/25/24........ 1,727,867
-------------
FINANCIAL SERVICES -- 5.3%
10,000,000 Associates Corp. North America
4.500% due 02/15/96......... 9,654,210
10,000,000 Bank of Boston Corp.
6.625% due 02/01/04......... 8,618,910
10,000,000 Chemical Banking Corp. 2-15-02
8.500% due 02/15/02......... 9,869,460
15,000,000 Chrysler Financial
6.625% due 08/15/00......... 13,671,915
12,000,000 Countrywide Funding
6.100% due 07/31/96......... 11,642,520
10,000,000 Dean Witter Discover
5.000% due 04/01/96......... 9,652,480
5,000,000 First National Bank of Boston
8.000% due 09/15/04......... 4,707,390

</TABLE>

<PAGE>
HARTFORD ADVISERS FUND, INC.
STATEMENT OF NET ASSETS -- (CONTINUED)
DECEMBER 31, 1994

<TABLE>
PRINCIPAL MARKET
AMOUNT VALUE
- ----------- -------------
<C> <S> <C>
NON-CONVERTIBLE CORPORATE BONDS -- (CONTINUED)
FINANCIAL SERVICES -- (CONTINUED)
$10,000,000 Ford Motor Credit Company
5.625% due 12/15/98......... $ 9,084,380
2,250,000 General Electric Credit
4.260% due 02/05/96......... 2,173,815
15,000,000 General Motors Acceptance
Corp.
5.625% due 02/01/99......... 13,411,620
10,000,000 Great Western Financial
8.625% due 12/01/98......... 9,974,140
15,000,000 Home Savings America
6.000% due 11/01/00......... 13,175,715
1,311,675 Merrill Lynch Mortgage
6.850% due 04/15/12......... 1,300,814
15,000,000 Society National Bank
6.500% due 04/25/97......... 14,493,300
19,000,000 Society Bank
6.700% due 04/15/96......... 18,743,500
12,000,000 World Savings & Loan
4.875% due 03/01/96......... 11,625,120
-------------
161,799,289
-------------
FOREIGN GOVERNMENT -- 0.3%
Thailand Kingdom
10,000,000 5.880% due 09/30/00......... 8,813,600
-------------
HEALTHCARE -- 0.3%
Zeneca Group PLC
10,000,000 6.300% due 06/15/03......... 8,771,600
-------------
MEDIA & SERVICES -- 0.5%
Tele-Communications...........
15,000,000 7.375% due 02/15/00 13,905,570
-------------
TRANSPORTATION -- 0.1%
Penske Truck Leasing
2,000,000 7.750% due 05/15/99......... 1,932,136
-------------
UTILITIES -- 0.3%
Pacific Gas & Electric
11,000,000 7.875% due 03/01/02......... 10,580,207
-------------
Total Non-Convertible
Corporate Bonds............. $235,153,518
-------------
-------------

SHORT-TERM SECURITIES -- 2.7%
$82,255,000 Repurchase Agreement dated
12/30/94 with Union Bank of
Switzerland 5.500% due
01/03/95; maturity amount
$82,305,267; (Collateralized
by $79,170,000 U.S. Treasury
Securities 6.125% to 10.375%
due 07/31/96 to 08/15/19)... $ 82,255,000
-------------
-------------
</TABLE>

<TABLE>
<S> <C> <C>
DIVERSIFICATION OF ASSETS:
Total common stocks.......................... 51.1% 1,550,394,938
Total preferred stocks....................... 3.6 110,029,000
Total long-term bonds........................ 33.8 1,025,148,918
Total convertible corporate bonds............ 1.8 56,467,129
Total non-convertible corporate bonds........ 7.8 235,153,518
Total short-term securities.................. 2.7 82,255,000
------ -------------
Total investment in securities
**(Identified cost $3,117,462,059)......... 100.8 3,059,448,503
Excess liabilities over cash and
receivables................................ (0.8) (25,414,442)
------ -------------
Net assets (Applicable to $1.60048 per share
based on 1,895,705,407 shares
outstanding)............................... 100.0% $3,034,034,061
------ --------------
------ --------------
SUMMARY OF SHAREHOLDERS' EQUITY:
Capital stock, par value $.10 per share; authorized
3,000,000,000 shares; outstanding 1,895,705,407
shares............................................. 189,570,541
Capital surplus...................................... 2,865,967,424
Undistributed net realized gain on investments....... 36,509,653
Unrealized depreciation of investments............... (58,013,556)
--------------
Net assets, applicable to shares outstanding......... $3,034,034,061
--------------
--------------
<FN>
* Non-income producing during period.
** Aggregate cost for Federal income tax purposes.
</TABLE>

THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.

27
<PAGE>
HARTFORD U.S. GOVERNMENT MONEY MARKET FUND, INC.
STATEMENT OF NET ASSETS
DECEMBER 31, 1994

<TABLE>
<CAPTION>
AMORTIZED
PRINCIPAL COST AND
AMOUNT VALUE
- ----------- ------------
<C> <S> <C>
Federal Farm Credit Bank
$ 400,000 4.930% due 02/22/95......... $ 397,097
420,000 5.310% due 01/23/95......... 418,575
490,000 5.370% due 01/06/95......... 489,562
550,000 5.950% due 03/16/95......... 543,182
100,000 5.960% due 03/06/95......... 98,924
270,000 6.250% due 05/17/95......... 263,578
Federal Home Loan Banks
680,000 4.880% due 01/23/95......... 677,880
120,000 5.200% due 01/27/95......... 119,532
655,000 5.250% due 01/05/95......... 654,522
500,000 5.270% due 01/06/95......... 499,561
500,000 6.310% due 04/05/95......... 491,674
500,000 6.350% due 04/05/95......... 491,622
Federal Home Loan Mortgage
Association
500,000 6.110% due 03/13/95......... 493,890
Federal National Mortgage
Association
500,000 5.020% due 02/17/95......... 496,653
500,000 6.050% due 03/02/95......... 494,874
300,000 6.090% due 03/01/95......... 296,955
500,000 6.270% due 04/18/95......... 490,595
-------------
7,418,676
-------------
REPURCHASE AGREEMENT -- 22.7%
2,184,000 Interest in $92,095,000 joint
repurchase agreement dated
12/30/94 with Shawmut Bank
5.950% due 01/03/95;
maturity amount $2,185,444
(Collateralized by
$96,165,000; U.S. Treasury
Note 4.250% due 11/30/95)... 2,184,000
-------------
Total Short-Term Securities... $ 9,602,676
-------------
-------------
</TABLE>

<TABLE>
<CAPTION>
AMORTIZED
COST AND
VALUE
-------------
<S> <C> <C>
DIVERSIFICATION OF ASSETS:
Total investment in securities
*(Identified cost $9,602,676).............. 99.8% $ 9,602,676
Excess of cash and receivables over
liabilities................................ 0.2 16,623
------ ------------
Net assets (Applicable to $1.00 per share
based on 9,619,299 shares outstanding)..... 100.0% $ 9,619,299
------ ------------
------ ------------

SUMMARY OF SHAREHOLDERS' EQUITY:
Common stock, par value $.10 per share; authorized
100,000,000 shares; outstanding 9,619,299 shares... $ 961,930
Capital surplus...................................... 8,657,369
------------
Net assets, applicable to shares outstanding......... $ 9,619,299
------------
------------
<FN>
* Aggregate cost for Federal income tax purposes.
</TABLE>

THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.

28
<PAGE>
HARTFORD AGGRESSIVE GROWTH FUND, INC.
STATEMENT OF NET ASSETS
DECEMBER 31, 1994

<TABLE>
<CAPTION>
MARKET
SHARES VALUE
- ----------- --------------
<C> <S> <C>
COMMON STOCKS
BUSINESS SERVICES -- 2.4%
*400,000 Autofinance Group Inc......... $ 3,500,000
250,000 McKesson...................... 8,156,250
*615,000 Merisel Inc................... 4,920,000
*325,000 Tabcorp ADR 144A.............. 5,924,068
*160,000 Vivus......................... 2,440,000
179,500 Wheelabrator Technologies..... 2,647,625
--------------
27,587,943
--------------
CONSUMER DURABLES -- 1.8%
*130,000 Detroit Diesel Corp........... 2,778,750
200,000 General Motors Class H........ 6,975,000
*277,500 International Imaging
Materials................... 9,018,750
185,000 EK Chor China Motorcycle
Co.......................... 2,520,625
--------------
21,293,125
--------------
CONSUMER NON-DURABLES -- 4.5%
105,000 Baesa ADR..................... 3,386,250
*375,000 Canandaigua Wine Co. Class
A........................... 14,250,000
375,000 Dreyers Grand Ice Cream
Inc......................... 9,281,250
*137,000 Duracraft Corp................ 4,366,875
200,000 Eastman Kodak................. 9,550,000
145,700 Reebok International Ltd...... 5,755,150
280,000 Universal Corp................ 5,565,000
--------------
52,154,525
--------------
CONSUMER SERVICES -- 1.5%
*395,070 Autotote Corp. Class A........ 4,493,921
*625,000 Hanover Direct Inc............ 2,343,750
*200,000 Rogers Cantel Mobile
Communications Class B...... 5,831,260
434,000 Sotheby's Holdings Class A.... 4,991,000
--------------
17,659,931
--------------
COMPUTER SERVICES -- 5.4%
*262,000 Bisys Group Inc............... 5,796,750
*225,000 BMC Software Inc.............. 12,796,875
*400,000 Cray Computer Corp............ 412,520
*380,000 Interleaf Inc................. 1,330,000
120,000 International Business Machine
Corp........................ 8,820,000
*326,500 McAfee Associates Inc......... 6,611,625
*24,900 Norand Corp................... 883,950
*265,000 Parallan Computer............. 1,060,000
*210,000 Policy Management Systems..... 8,820,000
*975,000 SHL Systemhouse Inc........... 4,996,875
*320,000 Symbol Technologies........... 9,880,000
*200,000 Teledata Communcations........ 950,000
--------------
62,358,595
--------------
ELECTRONICS -- 9.7%
*160,000 Advanced Micro Devices Inc.... 3,980,000
375,000 Augat Inc..................... 7,078,125
*141,300 Broad Band Technologies
Inc......................... 4,309,650
*126,300 California Microwave.......... 4,609,950
*225,000 Cirrus Logic Inc.............. 5,062,500
*315,000 Cognex Corp................... 8,111,250
*200,000 General Datacomm Industries
Inc......................... 6,475,000
*350,000 General Instrument............ 10,500,000
*280,000 Geotek Communications......... 2,415,000
*149,700 Macromedia Inc................ 3,817,350
300,000 Molex Inc. Non Voting A....... 9,300,000
250,000 Motorola Inc.................. 14,468,750
270,000 Northern Telecom Ltd.......... 9,011,250

ELECTRONICS -- (CONTINUED)
375,000 Philips NV ADR................ $ 11,015,625
*350,200 Silicon Valley Group.......... 7,222,875
*100,000 Vishay Intertechnology........ 4,900,000
--------------
112,277,325
--------------
ENERGY & SERVICES -- 3.1%
118,100 Coflexip ADR.................. 2,745,825
*250,000 Energy Service Inc............ 3,062,500
*365,000 Home Oil Co. Ltd.............. 3,832,500
*398,200 Input Output Inc.............. 9,407,475
400,000 Lasmo PLC-ADR................. 2,650,000
*600,800 Maxus Enegry Corp............. 2,027,700
300,000 Petroleum Heat & Power Class
A........................... 2,775,000
*385,000 Rowan Cos..................... 2,358,125
300,000 USX-Marathon Group............ 4,912,500
*300,000 Varco International........... 1,875,000
--------------
35,646,625
--------------
FINANCIAL SERVICES -- 9.3%
340,000 Ace Ltd....................... 7,947,500
*320,000 Anchor Bancorp. Inc........... 4,320,000
150,000 Chubb Corp.................... 11,606,250
150,000 Crestar Financial Corp........ 5,643,750
380,000 Fleet Financial Group Inc..... 12,350,000
305,000 Foothill Group Inc............ 4,575,000
490,000 Green Point Financial Corp.... 10,106,250
*261,800 Imperial Credit Industries.... 2,225,300
180,000 John Alden Financial.......... 5,175,000
340,000 Lehman Brothers Holdings...... 5,015,000
80,070 Long Island Bancorp........... 1,171,024
150,000 Midlantic Corp. Inc........... 3,975,000
285,000 Morgan Stanley Group.......... 16,815,000
310,000 Transatlantic Holding Inc..... 17,321,250
--------------
108,246,324
--------------
FOREIGN SECURITIES -- 0.4%
203,480 Hafslund Nyco A............... 4,346,963
--------------
HEALTHCARE -- 13.1%
290,000 A L Pharmaceutical Inc. Class
A........................... 5,872,500
*425,000 Abbey Healthcare Group Inc.... 9,881,250
*200,000 Amylin Pharmaceutical Inc..... 1,200,000
*200,000 Athena Neurosciences.......... 1,125,000
*376,800 Beverly Enterprises........... 5,416,500
*1,100,000 Biomet........................ 15,400,000
38,500 Collagen Corp................. 875,875
*310,400 Coram Healthcare.............. 5,121,600
*223,000 Dura Pharmaceuticals.......... 3,233,500
*414,800 FHP International............. 10,681,100
*130,000 Genetics Institute-Depository
Shares...................... 4,680,000
*348,750 Grancare Inc.................. 6,103,125
*420,000 Haemonetics................... 7,245,000
91,520 Hafslund Nycomed-Class B
ADR......................... 1,887,600
*420,000 Hillhaven Corp................ 8,925,000
*150,000 Immunex....................... 2,231,250
*275,000 Incontrol..................... 2,818,750
*240,000 Isomedix Inc.................. 3,780,000
*240,000 Medic Computer Systems Inc.... 7,440,000
*310,000 Physician Corp. of America.... 6,355,000
*100,000 Sci-Med Life Systems.......... 5,050,000
*300,000 Sybron Corp................... 10,350,000
*354,000 Syncor International Corp..... 2,478,000
</TABLE>

THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.

29
<PAGE>

<TABLE>
<CAPTION>
MARKET
SHARES VALUE
- ----------- -------------
<C> <S> <C>
COMMON STOCKS -- (CONTINUED)
HEALTHCARE -- (CONTINUED)
*201,900 Value Health Inc.............. $ 7,520,775
400,000 Zeneca Group ADR.............. 16,450,000
--------------
152,121,825
--------------
INDUSTRIAL MATERIALS -- 7.7%
*415,400 Beazer Homes USA Inc.......... 4,829,025
315,000 British Steel PLC-ADR......... 7,638,750
133,700 Cambrex....................... 3,476,200
420,000 Englehard Corp................ 9,345,000
14,700 Huntco Inc. Class A........... 323,400
100,000 Lennar Corp................... 1,550,000
150,000 Loctite Corp.................. 6,975,000
260,000 Longview Fibre................ 4,095,000
205,000 Louisiana Pacific Corp........ 5,586,250
*300,000 M/I Schottenstein Homes
Inc......................... 2,100,000
270,000 Morton International.......... 7,695,000
350,000 Nova Corp..................... 3,237,500
*280,000 Owens Corning Fiberglass
Corp........................ 8,960,000
330,000 Precision Castparts Corp...... 6,682,500
580,000 Quanex Corp................... 13,267,500
*320,000 Southern Energy Homes Inc..... 3,560,000
*215,000 Vengold Inc................... 456,875
--------------
89,778,000
--------------
MANUFACTURING -- 10.2%
150,000 Agco Corp..................... 4,556,250
*60,600 Bally Gaming International
Inc......................... 643,875
150,000 Borg-Warner Automotive Inc.... 3,768,750
*200,000 Cherry Corp. Class A.......... 2,900,000
350,000 Cincinnati Milacron Inc....... 8,268,750
*340,000 Credence Systems Corp......... 7,777,500
*126,900 Glenayre...................... 7,328,475
*230,000 Johnstown America
Industries.................. 3,766,250
130,000 McDonnell Douglas Corp........ 18,460,000
200,000 Northrop Grumman Corp......... 8,400,000
*450,000 Oak Industries Inc............ 10,293,750
640,000 Raychem Corp.................. 22,800,000
350,000 Spartan Motors Inc............ 4,681,250
175,000 Wabash National Corp.......... 6,825,000
175,500 York International Corp....... 6,471,562
--------------
116,941,412
--------------
MEDIA & SERVICES -- 4.4%
*290,000 Comcast UK Cable.............. 4,640,000
*215,000 Emmis Broadcast Corp.......... 2,902,500
*228,700 Evergreen Media Corp. Class
A........................... 4,002,250
*200,000 IVI Publishing Inc............ 2,300,000
*175,000 International Cabletel Inc.... 4,856,250
*350,000 Jacor Communications Inc...... 4,637,500
*290,000 Lodgenet Entertainment
Corp........................ 2,193,125
278,700 E.W. Scripps Co............... 8,430,675
*190,000 Viacom Inc. Class B........... 7,718,730
*415,000 Westwood One Inc.............. 4,046,250
*292,500 Young Broadcasting............ 5,191,875
--------------
50,919,155
--------------
POLLUTION CONTROL -- 2.1%
*315,000 Catalytica Inc................ 905,625
*295,000 Ionics Inc.................... 18,511,250
205,000 WMX Technologies Inc.......... 5,381,250
--------------
24,798,125
--------------
REAL ESTATE -- 1.5%
285,000 Avalon Properties Inc......... $ 6,555,000
250,000 Liberty Property Trust........ 4,906,250
120,000 Oasis Residential............. 2,940,000
210,000 Saul Centers Inc.............. 3,097,500
--------------
17,498,750
--------------
RETAIL -- 7.3%
*610,000 Carr-Gottstein Foods Co....... 3,965,000
500,000 Cash America Investments
Inc......................... 4,937,500
*450,000 Cheesecake Factory............ 7,087,500
*185,000 Compusa Inc................... 2,775,000
*675,000 Egghead Inc................... 7,931,250
*150,000 Ethan Allen Inc............... 3,637,500
375,000 Fingerhut Companies Inc....... 5,812,500
260,000 The Gap, Inc.................. 7,930,000
*510,000 Home Shopping Network......... 5,100,000
269,200 Intelligent Electronics....... 2,153,600
*290,000 Landry's Seafood
Restaurants................. 8,228,750
*350,000 Musicland Stores Inc.......... 3,150,000
165,000 J.C. Penney................... 7,363,125
*91,900 The Sports Authority Inc...... 1,929,900
*250,000 Urban Outfitters Inc.......... 6,812,500
*500,000 Whole Foods Market............ 5,125,000
--------------
83,939,125
--------------

TECHNOLOGY -- 2.1%
150,000 American Superconductor
Corp........................ 3,712,500
350,000 Cheyenne Software Corp........ 4,637,500
165,000 Computer Sciences Corp........ 8,415,000
150,000 EMC Corp...................... 3,243,750
*50,000 Powersoft Corp................ 4,112,500
--------------
24,121,250
--------------
TRANSPORTATION & SERVICES -- 4.1%
*240,000 AMR........................... 12,780,000
*350,000 Continental Airlines Class
B........................... 3,237,500
*213,800 Landstar System Inc........... 7,001,950
*460,000 M.S. Carriers................. 10,005,000
300,000 Skywest Inc................... 3,750,000
450,000 Werner Enterprises, Inc....... 10,687,500
--------------
47,461,950
--------------
UTILITIES -- 0.7%
*250,000 The Columbia Gas System,
Inc......................... 5,875,000
*380,000 Petersburg Long Distance
Inc......................... 2,422,500
--------------
8,297,500
--------------
Total Common Stocks........... $1,057,448,448
--------------
--------------

CONVERTIBLE PREFERRED STOCKS -- 2.1%
CONSUMER DURABLES -- 1.1%
90,000 Chrysler Corp. 144-A.......... 12,341,250
--------------
CONSUMER NON-DURABLES -- 0.6%
1,200,000 RJR Nabisco Preferred Equity
Redemption Cumulative
Stock....................... 7,200,000
--------------
FINANCIAL SERVICES -- 0.4%
160,000 Glendale Federal Bank Class
E........................... 4,460,000
--------------
Total Convertible Preferred
Stocks...................... $ 24,001,250
--------------
--------------
</TABLE>

30
<PAGE>
HARTFORD AGGRESSIVE GROWTH FUND, INC.
STATEMENT OF NET ASSETS -- (CONTINUED)
DECEMBER 31, 1994

<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
- ----------- --------------
<C> <S> <C>
CONVERTIBLE CORPORATE BONDS -- 0.7%
UTILITIES
7,250,000 Rohr Inc.
7.750% due 05/15/04......... $ 7,766,563
--------------
--------------
SHARES
- -----------
NON-CONVERTIBLE PREFERRED STOCK -- 1.0$%
160,000 Nokia Preferred ADR........... $ 12,000,000
--------------
--------------

PRINCIPAL
AMOUNT
- -----------
SHORT-TERM SECURITIES -- 4.5%
$52,700,000 Repurchase Agreement dated
12/30/94 with Donaldson,
Lufkin & Jenrette 5.875% due
01/03/95; maturity amount
$52,734,401; (Collateralized
by $14,680,000 U.S. Treasury
Note 9.500% due 11/15/95 and
$41,582,000 U.S. Treasury
Note 6.250% due 02/15/03)... $ 52,700,000
--------------
--------------
</TABLE>

<TABLE>
<CAPTION>
MARKET
VALUE
--------------
<S> <C> <C>
DIVERSIFICATION OF ASSETS:
Total common stocks.......................... 91.3% $1,057,448,448
Total convertible preferred stocks........... 2.1 24,001,250
Total convertible corporate bonds............ 0.7 7,766,563
Total non-convertible preferred stock........ 1.0 12,000,000
Total short-term securities.................. 4.5 52,700,000
------ --------------
Total investment in securities
**(Identified cost $1,125,734,985)......... 99.6% 1,153,916,261
Excess of cash and receivables over
liabilities................................ 0.4 4,727,377
------ --------------
Net assets (Applicable to $2.85988 per share
based on 405,137,719 shares outstanding)... 100.0% $1,158,643,638
------ --------------
------ --------------

SUMMARY OF SHAREHOLDERS' EQUITY:
Capital stock, par value $.10 per share; authorized
800,000,000 shares; outstanding 405,137,719
shares............................................. $ 40,513,772
Capital surplus...................................... 1,026,164,106
Undistributed net realized gain on investments....... 63,993,984
***Unrealized (loss) on futures contracts............ (193,825)
Unrealized appreciation of investments............... 28,181,276
Unrealized depreciation on forward currency
contracts.......................................... (15,675)
--------------
Net assets, applicable to shares outstanding......... $1,158,643,638
--------------
--------------
<FN>
* Non-income producing during period.
** Aggregate cost for Federal income tax purposes.
*** The Fund has 110 Standard & Poor's March 1995 futures contracts open at
December 31, 1994. These contracts have a value of $25,374,250.
See note 2(f).
</TABLE>

FUTURES CURRENCY CONTRACTS -- NOTE 2 -- OUTSTANDING AT DECEMBER 31, 1994

THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.

31
<PAGE>
HARTFORD MORTGAGE SECURITIES FUND, INC.
STATEMENT OF NET ASSETS
DECEMBER 31, 1994

<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
- ----------- -------------
<C> <S> <C>

LONG-TERM BONDS -- 95.0%
FEDERAL AGENCIES COLLATERALIZED MORTGAGE
OBLIGATION -- 15.7%
Federal National Mortgage
Association
$ 18,564 0.000% due 01/25/21......... $ 18,460
(A)2,000,000 3.754% due 12/25/08 (Inverse
Floater).................... 1,055,138
5,000,000 5.750% due 07/25/06......... 4,480,050
(A)6,645,695 6.898% due 03/25/09 (Inverse
Floater).................... 2,872,186
1,520,631 7.950% due 03/25/20......... 1,502,642
6,733,185 8.500% due 03/25/19 -
06/25/19.................... 6,731,256
5,000,000 8.750% due 02/25/18......... 5,023,550
4,539,909 9.000% due 01/25/17 -
03/25/19.................... 4,565,203
1,400,000 9.250% due 12/25/03......... 1,411,690
1,418,713 11.000% due 04/01/09........ 1,486,223
(B) 50,000 1,144.141% due 01/25/22
(Interest Only)............. 3,075,000
-------------
32,221,398
-------------
Federal Home Loan Mortgage
Corp.
5,000,000 5.750% due 03/15/19......... 4,427,600
4,679,000 5.850% due 02/15/18......... 4,151,068
5,000,000 6.000% due 01/15/08......... 4,234,550
2,588,645 8.100% due 12/15/04......... 2,588,334
-------------
15,401,552
-------------
FEDERAL AGENCIES MORTGAGE PASS-THROUGHS --
55.4%
Federal National Mortgage
Association
5,662 6.000% due 01/01/24......... 4,817
10,613,936 6.500% due 04/01/14 -
12/01/23.................... 9,333,635
29,116,454 7.000% due 02/01/23 -
08/01/24.................... 26,415,391
17,700,000 7.500% due 03/01/24......... 16,521,853
24,179,714 8.000% due 06/01/24 -
12/01/24.................... 23,159,644
6,169,005 8.500% due 06/01/24 -
12/01/24.................... 6,049,481
-------------
81,484,821
-------------
Federal Home Loan Mortgage
Corp.
14,822,425 7.000% due 01/01/24 -
07/01/24.................... 13,483,271
8,222,622 8.000% due 02/01/13 -
11/01/24.................... 7,886,009
4,194,957 8.500% due 07/01/01 -
06/01/03.................... 4,166,472
694,796 10.000% due 09/01/05........ 719,649
-------------
26,255,401
-------------
Government National Mortgage
Association
33,019,365 7.500% due
06/01/09-10/15/24........... 31,022,370
20,000,380 8.000% due
09/15/05-11/15/24........... 19,206,292
5,502,712 9.500% due
10/15/09-11/15/09........... 5,666,141
3,265,086 10.000% due
11/15/09-05/15/13........... 3,428,442
1,031,455 11.000% due
02/15/10-09/15/10........... 1,131,360
136,800 11.250% due 01/15/01........ 144,845
119,836 12.000% due 05/15/15........ 133,110
138,484 12.500% due
06/15/14-08/15/15........... 154,882
43,885 13.000% due 11/15/14........ 49,534
8,859 13.500% due 07/15/14........ 10,093
-------------
60,947,069
-------------
ASSET BACKED -- 2.1%
Corestates 94-1 A
4,752,652 6.650% due 05/15/09......... 4,545,674
Fleet 94-B A
1,850,833 6.750% due 03/15/10......... 1,777,243
-------------
6,322,917
-------------
CONVENTIONAL COLLATERALIZED MORTGAGE
OBLIGATIONS -- 5.3%
Green Tree Financial
$ 5,000,000 4.900% due 10/15/18......... $ 4,737,200
5,000,000 5.200% due 10/15/18......... 4,590,400
3,100,000 5.450% due 10/15/18......... 2,775,430
4,500,000 5.850% due 01/15/19......... 4,148,280
-------------
16,251,310
-------------
CONVENTIONAL MORTGAGE PASS-THROUGHS -- 0.2%
Ryland Series 82
598,541 10.250% due 03/25/11........ 598,541
-------------
COLLATERALIZED MORTGAGE OBLIGATIONS -- 10.3%
CMC 92-D IIL
1,838,683 7.200% due 12/25/08......... 1,805,473
CWF 93-C A1
4,494,604 6.500% due 01/25/24......... 4,353,028
CMO 52 CL A
(B)1,276,562 0.000% due 05/01/17
(Principal Only)............ 712,271
G E 94-24CL A1
4,911,486 7.000% due 07/25/24......... 4,665,430
HSI 93E CL E15
6,027,076 10.00% due 09/25/08......... 6,285,891
Paine Webber 94-7 CL AA
4,666,356 6.750% due 04/25/24......... 4,515,820
Prudential 92-43 A-2
38,163 7.500% due 01/25/23......... 38,095
Saxon 94-9 A
9,605,124 7.000% due 07/25/09......... 8,841,487
Smart 92-5 B
15,641 8.000% due 05/22/22......... 15,641
-------------
31,233,136
-------------
U.S. GOVERNMENTS -- 6.0%
U.S. Treasury Notes
10,000,000 5.750% due 08/15/03......... 8,690,620
10,300,000 6.375% due 08/15/02......... 9,434,151
-------------
18,124,771
-------------
Total Long-Term Bonds......... $288,840,916
-------------
-------------
SHORT-TERM SECURITIES -- 17.0%
COMMERCIAL PAPER -- 7.2%
American Home Products
3,000,000 6.050% due 01/12/95......... 2,993,950
American Honda Finance
3,000,000 6.120% due 01/10/95......... 2,994,900
ANZ (Delaware) Inc.
3,000,000 6.100% due 01/03/95......... 2,998,475
Goldman Sachs Group Limited
Partnership
3,000,000 6.020% due 01/18/95......... 2,990,970
Cooper Industries
3,000,000 6.000% due 01/06/95......... 2,997,000
Fleet Financial Group
1,000,000 5.950% due 02/02/95......... 994,546
Pepsico Inc.
3,000,000 6.100% due 01/10/95......... 2,994,917
USL Capital
3,000,000 6.050% due 01/06/95......... 2,996,975
-------------
21,961,733
-------------
</TABLE>

THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.

<PAGE>

HARTFORD MORTGAGE SECURITIES FUND, INC.
STATEMENT OF NET ASSETS -- (CONTINUED)
DECEMBER 31, 1994

<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
- ----------- -------------
<C> <S> <C>
SHORT-TERM SECURITIES -- (CONTINUED)
REPURCHASE AGREEMENTS -- 9.8%
$29,955,000 Repurchase Agreement dated
12/30/94 with Lehman 6.050%
due 01/03/95; maturity
amount $29,975,136;
(Collateralized by
$15,081,000 Federal National
Mortgage Association 6.500%
due 09/01/23 and $10,879,000
Federal Home Loan Mortgage
Corp 6.500% due 06/01/08 and
$3,995,000 Federal Home Loan
Mortgage Corp. 6.500% due
02/01/04)................... $ 29,955,000
-------------
Total Short-Term Securities... $ 51,916,733
-------------
-------------

DIVERSIFICATION OF ASSETS:
Total long-term bonds........................ 95.0% $288,840,916
Total short-term securities.................. 17.0 51,916,733
-------- ------------
Total investment in securities
*(Identified cost $354,662,578)............ 112.0 340,757,649
Excess of liabilities over cash and
receivables................................ (12.0) (36,611,082)
-------- ------------
Net assets (Applicable to $.98438 per share
based on 308,973,173 shares outstanding)... 100.0% $304,146,567
-------- ------------
-------- ------------
SUMMARY OF SHAREHOLDERS' EQUITY:
Capital stock, par value $.10 per share; authorized
800,000,000 shares; outstanding 308,973,173 shares... $ 30,897,317
Capital surplus........................................ 305,978,330
Undistributed net realized (loss) on investments....... (18,824,150)
Unrealized depreciation of investments................. (13,904,929)
------------
Net assets, applicable to shares outstanding........... $304,146,567
------------
------------
<FN>
* Aggregate cost for Federal income tax purposes.
(A) Inverse Floaters -- Bonds whose return characteristics are linked to short
term interest rates. In the event that short term interest rates fall, the
return on the bond will be substantially enhanced. Conversely, as short term
interest rise, the value of the bond will fall.
(B) Interest Only/Principal Only -- Securities created by investment bankers by
separating regular bonds into their principal and coupon components and
selling each piece separately. If the underlying bonds are subject to
prepayment, the interest only investor is at risk for faster than
anticipated prepayments and the principal only investor is at risk for
slower than anticipated prepayments.
These instruments are used for a very small percentage of the funds assets
when they are determined they improve the portfolio's return profile.
</TABLE>

THE ACCOMPNAYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.

33
<PAGE>
HARTFORD INDEX FUND, INC.
STATEMENT OF NET ASSETS
DECEMBER 31, 1994

<TABLE>
<CAPTION>
MARKET
SHARES VALUE
- ----------- ------------
<C> <S> <C>
COMMON STOCKS -- 92.4%
BUSINESS SERVICES -- 1.2%
2,300 Alco Standard Corp............ $ 144,325
*1,150 Andrew Corp................... 60,088
6,800 Donnelley (RR) & Sons......... 200,600
7,400 Dun & Bradstreet Corp......... 407,000
2,500 E G & G, Inc.................. 35,313
*2,500 Federal Express Corp.......... 150,625
1,600 Fleming Companies, Inc........ 37,200
5,450 Genuine Parts Co.............. 196,200
2,200 Grainger W W Inc.............. 127,050
4,300 Moore Corp. Ltd............... 81,161
2,200 National Service Industries
Inc......................... 56,375
1,900 Ogden Corp.................... 35,625
3,300 Ryder Systems, Inc............ 72,600
2,500 Safety Kleen Corp............. 36,875
3,100 Supervalu, Inc................ 75,950
8,100 Sysco Corp.................... 208,575
-------------
1,925,562
-------------
COMPUTER & SERVICES -- 3.0%
*10,800 Cisco Systems Inc............. 379,350
*1,500 Data General Corp............. 15,000
25,500 International Business Machine
Corp........................ 1,874,250
*25,000 Microsoft Corp................ 1,528,125
*16,000 Novell Inc.................... 274,000
6,900 Pitney Bowes Inc.............. 219,075
4,600 Xerox......................... 455,400
-------------
4,745,200
-------------
CONSUMER DURABLES -- 3.0%
3,700 Black & Decker Corporation.... 87,875
1,200 Briggs & Stratton............. 39,300
4,200 Brunswick..................... 79,275
15,300 Chrysler Corp................. 749,700
3,600 Cooper Tire & Rubber
Company..................... 85,050
4,000 Dial Corp. Arizona............ 85,000
2,500 Echlin Inc.................... 75,000
2,000 Fleetwood..................... 37,500
46,900 Ford Motor Co................. 1,313,200
32,500 General Motors Corp........... 1,373,125
1,100 The B.F. Goodrich Co.......... 47,712
6,500 Goodyear Tire & Rubber
Company..................... 218,562
6,700 Masco Corporation............. 151,588
4,700 Maytag Corp................... 70,500
500 Skyline Corp.................. 9,625
1,900 Snap-On Tools................. 63,175
1,900 Stanley Works................. 67,925
3,100 Whirlpool Corp................ 155,775
-------------
4,709,887
-------------
CONSUMER NON-DURABLES -- 12.4%
1,300 Alberto Culver Co............. 35,425
8,800 American Brands Inc........... 330,000
3,200 American Greetings Corp.
Class....................... 86,400
11,500 Anheuser Busch Cos. Inc....... 585,063
22,425 Archer-Daniels-Midland........ 462,516
3,100 Avon Products................. 185,225
1,300 Ball Corp..................... 40,950
3,600 Brown-Forman.................. 109,800
3,400 Brunos Inc.................... 28,475
6,600 CPC International............. 351,450
11,000 Campbell Soup Co.............. 485,375
2,400 Clorox Company................ 141,300
56,100 Coca-Cola Co.................. 2,889,150

CONSUMER NON-DURABLES -- (CONTINUED)
6,800 Colgate Palmolive Co.......... $ 430,950
10,950 Conagra Inc................... 342,187
1,700 Coors (Adolph) Class B........ 28,475
14,400 Eastman Kodak................. 687,600
6,900 General Mills Co.............. 393,300
2,600 Giant Food, Inc............... 56,550
9,600 Gillette Co................... 717,600
1,700 Great Atlantic & Pacific Tea
Co.......................... 30,811
1,400 Handleman Co.................. 15,925
3,850 Hasbro, Inc................... 112,613
11,000 H.J. Heinz Company............ 404,250
3,900 Hershey Foods Corp............ 188,663
10,000 Kellogg Co.................... 581,250
7,000 Kimberly Clark Corp........... 353,500
3,500 Liz Claiborne, Inc............ 59,063
6,800 Newell Co..................... 142,800
3,300 Nike, Inc. Class B............ 246,263
600 Oshkosh B Gosh Inc............ 8,400
34,600 Pepsico Inc................... 1,254,250
4,500 Pet Inc....................... 88,875
38,200 Philip Morris................. 2,196,500
3,900 Pioneer Hi-Bred
International............... 134,550
2,000 Polaroid Corp................. 65,000
2,800 Premark International......... 122,500
29,900 Proctor and Gamble............ 1,853,800
6,000 Quaker Oats Co................ 184,500
4,500 Ralston Purina Group.......... 200,812
3,700 Reebok International Ltd...... 146,150
7,000 Rubbermaid, Inc............... 201,250
1,800 Russell Corp.................. 56,475
20,700 Sara Lee Corp................. 522,675
16,000 Seagram....................... 472,000
2,200 Stride Rite Corp.............. 24,475
9,100 UST Inc....................... 252,525
7,100 Unilever NV New York Shares... 827,150
2,800 V F Corp...................... 136,150
4,700 Whitman Corp.................. 81,075
3,300 Winn Dixie Stores Inc......... 169,536
5,200 Wrigley Wm. Jr. Co............ 256,750
-------------
19,778,327
-------------
CONSUMER SERVICES -- 1.0%
*21,400 Airtouch Communications....... 623,275
2,000 Bally Entertainment Corp...... 12,250
4,600 H & R Block, Inc.............. 170,775
3,600 De Luxe Corp.................. 95,400
3,300 Harcourt General Inc.......... 116,325
1,400 John H. Harland Co............ 28,000
2,100 Hilton Hotels Corporation..... 141,487
5,100 Marriott International Inc.... 143,438
*4,550 Promus Cos. Inc............... 141,050
3,700 Service Corp. International... 102,675
-------------
1,574,675
-------------
ELECTRONICS -- 2.1%
*4,000 Advanced Micro Devices Inc.... 99,500
4,600 Amp Inc....................... 334,650
18,200 Intel Corp.................... 1,162,525
24,300 Motorola Inc.................. 1,406,362
11,000 Northern Telecom Ltd.......... 367,125
-------------
3,370,162
-------------

THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.

34
<PAGE>
HARTFORD INDEX FUND, INC.
STATEMENT OF NET ASSETS -- (CONTINUED)
DECEMBER 31, 1994

MARKET
SHARES VALUE
- ----------- ------------

COMMON STOCKS -- (CONTINUED)
ENERGY & SERVICES -- 9.6%
4,100 Amerada Hess Corp............. $ 187,063
15,200 American Barrick Resource..... 338,200
21,700 Amoco Corporation............. 1,283,013
2,600 Ashland Oil................... 89,700
6,900 Atlantic Richfield............ 702,075
6,100 Baker Hughes, Inc............. 111,325
5,700 Burlington Resources.......... 199,500
28,400 Chevron Corp.................. 1,267,350
4,550 Coastal Corp.................. 117,163
7,600 Dresser Industries............ 143,450
54,200 Exxon......................... 3,292,650
3,600 Fluor Corp.................... 155,250
5,100 Halliburton Co................ 168,938
1,100 Helmerich & Payne Inc......... 28,188
2,300 Kerr McGee Corp............... 105,800
1,400 Louisiana Land & Exploration
Co.......................... 50,925
5,800 Maxus Enegry Corp............. 19,575
2,300 McDermott International....... 56,925
17,400 Mobil Corp.................... 1,465,950
400 Nacco......................... 19,350
13,300 Occidental Petroleum Corp..... 256,025
4,200 Oryx Energy Company........... 49,875
5,200 Panhandle Eastern Corp........ 102,700
2,000 Pennzoil Co................... 88,250
11,400 Phillips Petroleum............ 373,350
*3,700 Rowan Cos..................... 22,662
23,300 Royal Dutch Petroleum......... 2,504,750
4,012 Santa Fe Energy Resources
Corp........................ 32,095
10,800 Schlumberger Ltd.............. 544,050
4,600 Sun Company, Inc.............. 132,250
11,300 Texaco Inc.................... 676,588
1,800 Transco Energy Co............. 29,925
12,500 USX-Marathon Group............ 204,686
10,500 Unocal Corp................... 286,125
500 Zurn Industries............... 9,000
-------------
15,114,721
-------------
FINANCIAL SERVICES -- 10.4%
5,300 Aetna Life & Casualty Co...... 249,763
5,100 H.F. Ahmanson & Company....... 82,238
1,800 Alexander & Alexander......... 33,300
21,500 American Express Co........... 634,250
9,400 American General Corp......... 265,550
14,288 American International
Group....................... 1,400,175
17,790 Banc One Corp................. 451,421
4,600 Bank of Boston................ 119,025
16,236 Bank America Corporation...... 641,322
3,600 Bankers Trust................. 199,350
4,200 Barnett Banks Inc............. 161,175
2,200 Beneficial Corp............... 85,800
4,500 Boatman Bancshares............ 122,063
3,500 Cigna Corporation............. 222,688
8,000 Chase Manhattan............... 275,000
10,968 Chemical Banking Corp......... 393,477
4,100 Chubb Corp.................... 317,238
17,000 Citicorp...................... 703,375
2,500 Continental Corp.............. 47,500
6,300 Corestates Financial Corp..... 163,800
7,356 Dean Witter Discover & Co..... 249,184
7,800 Federal Home Loan Mortgage
Corp........................ 393,900
12,000 Federal National Mortgage
Association................. 874,500
4,200 First Chicago Corporation..... 200,550
3,500 First Fidelity Bancorp........ 157,063

FINANCIAL SERVICES -- (CONTINUED)
3,400 First Interstate Bancorp...... $ 229,925
7,300 First Union Corporation....... 302,038
6,000 Fleet Financial Group Inc..... 195,000
4,000 General RE Corp............... 495,000
2,800 Golden West Financial......... 98,700
5,700 Great Western Financial
Corp........................ 91,200
4,100 Household International
Inc......................... 152,213
2,200 Jefferson Pilot Corp.......... 114,125
10,401 Keycorp....................... 260,025
4,300 Lincoln National Corp......... 150,500
6,500 MBNA Corp..................... 151,938
3,400 Marsh and McLennan Cos.,
Inc......................... 269,450
6,300 Mellon Bank Corporation....... 192,937
8,800 Merrill Lynch & Co. Inc....... 314,600
8,400 J.P. Morgan................... 470,400
7,000 NBD Bancorp................... 191,625
6,400 National City Corp............ 165,600
12,264 Nationsbank Corp.............. 553,412
13,500 Norwest Corporation........... 315,562
10,200 PNC Bank Corp................. 215,475
4,400 Providian Corp................ 135,850
1,200 Pulte Corp.................... 27,600
2,900 Safeco Corp................... 150,800
4,000 St. Paul Cos, Inc............. 179,000
4,800 Salomon Brothers.............. 180,000
5,100 Shawmut National Corp......... 83,512
5,400 Sun Trust Banks, Inc.......... 257,850
3,400 Torchmark Corp................ 118,575
3,600 Transamerica Corp............. 179,100
14,191 Travelers Inc................. 461,207
3,400 Unum Corp..................... 128,350
3,800 USF&G Corporation............. 51,775
4,350 U.S. Bancorp Oregon........... 98,417
7,200 U.S. Healthcare Inc........... 297,000
1,000 U.S. Life Corp................ 34,875
7,500 Wachovia Corp................. 241,875
2,400 Wells Fargo & Company......... 348,000
-------------
16,347,218
-------------
HEALTHCARE -- 8.3%
36,200 Abbott Laboratories........... 1,181,025
2,900 Allergan Inc.................. 81,925
*3,400 Alza Corp. Del................ 61,200
13,500 American Home Products
Corp........................ 847,125
*5,900 Amgen......................... 348,100
2,300 Bard C. R. Inc................ 62,100
2,600 Bausch & Lomb Inc............. 88,075
12,000 Baxter International.......... 399,000
3,300 Becton, Dickinson............. 158,400
3,600 Beverly Enterprises........... 51,750
*5,000 Biomet........................ 70,000
22,600 Bristol-Myers Squibb
Company..................... 1,307,975
15,621 Columbia/HCA Healthcare
Corp........................ 570,176
1,900 Community Psychiatric
Centers..................... 20,900
28,000 Johnson & Johnson............. 1,533,000
12,800 Lilly Eli & Co................ 840,000
3,300 Mallinckrodt Group Inc........ 98,588
2,500 Manor Care Inc................ 68,438
5,000 Medtronic, Inc................ 278,125
54,700 Merck & Co., Inc.............. 2,085,437
1,200 Millipore Corp................ 58,050
7,200 National Medical
Enterprises................. 101,700
13,200 Pfizer, Inc................... 1,019,700

THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.

35
<PAGE>

MARKET
SHARES VALUE
- ----------- -------------

COMMON STOCKS -- (CONTINUED)

HEALTHCARE -- (CONTINUED)
2,000 St. Jude Medical Inc.......... $ 79,500
8,400 Schering-Plough Corp.......... 621,600
1,000 Shared Medical Systems
Corp........................ 32,750
*7,500 United Healthcare Corp........ 338,436
2,400 United States Surgical........ 45,600
7,600 The Upjohn Company............ 233,700
5,900 Warner-Lambert Company........ 454,300
-------------
13,076,675
-------------
INDUSTRIAL MATERIALS -- 7.8%
5,000 Air Products & Chemical
Corp........................ 223,125
9,900 Alcan Aluminum Ltd............ 251,213
3,900 Aluminum Company of America... 337,838
4,500 Armco Inc..................... 29,813
1,600 Armstrong World Industries,
Inc......................... 61,600
1,800 Asarco Corporation............ 51,300
2,500 Avery Dennison
International............... 88,750
562 Bassett Furniture Inc......... 16,017
2,200 Bemis Co...................... 52,800
*4,700 Bethlehem Steel Corp.......... 84,600
1,700 Boise Cascade Corp............ 45,475
1,400 Centex Corp................... 31,850
4,200 Champion International
Corp........................ 153,300
9,600 Corning Inc................... 286,800
1,300 Crane Company................. 34,938
*3,800 Crown Cork & Seal............. 143,450
4,000 Cyprus Amax Minerals.......... 104,500
12,000 Dow Chemical.................. 807,000
29,500 DuPont EI De Nemours.......... 1,659,375
3,575 Eastman Chemical Co........... 180,538
5,000 Echo Bay Mines Ltd............ 53,125
2,800 Ecolab Inc.................... 58,800
4,175 Englehard Corp................ 92,894
1,600 FMC Corp...................... 92,400
1,800 Federal Paper Board Inc....... 52,200
900 First Mississippi Corp........ 22,500
3,900 Georgia-Pacific Corp.......... 278,850
1,500 Giddings & Lewis.............. 22,125
4,100 Grace (W.R.) Company.......... 158,363
3,100 Great Lakes Chemical.......... 176,700
1,800 Hercules Inc.................. 207,675
6,100 Homestake Mining.............. 104,461
5,100 Inco Co. Ltd.................. 145,988
*1,800 Inland Steel Company.......... 63,225
4,900 International Flavors &
Fragrances.................. 226,625
5,400 International Paper Co........ 407,025
3,600 James River Corp.............. 72,900
1,400 Kaufman & Broad Home Corp..... 18,025
4,900 Louisiana Pacific Corp........ 133,525
2,600 Mead Corp. (The).............. 126,425
18,600 Minnesota Mining &
Manufacturing Co............ 992,775
5,200 Monsanto Co................... 366,600
1,400 Morrison Knudsen Corp......... 17,850
6,300 Morton Intl................... 179,550
3,000 Nalco Chemical Co............. 100,500
3,744 Newmont Mining................ 134,795
3,800 Nucor Corp.................... 210,900
1,900 Owens Corning Fiberglass
Corp........................ 60,800
9,200 PPG Industries, Inc........... 341,550
5,133 Pall Corp..................... 96,244
3,100 Phelps Dodge Corp............. 191,811

INDUSTRIAL MATERIALS -- (CONTINUED)
10,500 Placer Dome, Inc.............. $ 228,375
1,300 Potlatch Corp................. 48,425
5,800 Praxair....................... 118,900
2,600 Reynolds Metal Co............. 127,400
3,000 Rohm & Haas Co................ 171,375
*5,707 Santa Fe Pacific Gold Corp.... 73,477
3,200 Scott Paper Co................ 221,200
3,900 Sherwin Williams.............. 129,187
2,100 Sigma Aldrich Corp............ 69,300
800 Springs Industries Inc........ 29,600
3,830 Stone Container Corporation... 66,068
2,400 Temple-Inland Inc............. 108,300
3,160 USX - U.S. Steel Group........ 112,180
3,000 Union Camp Corp............... 141,375
6,600 Union Carbide Corp............ 193,875
2,900 Westvaco Corp................. 113,825
8,900 Weyerhaeuser Company.......... 333,750
4,500 The Williams Companies........ 113,061
3,875 Worthington Industries........ 77,500
-------------
12,328,661
-------------

MANUFACTURING -- 7.5%
12,400 Allied Signal Inc............. 421,600
14,800 Boeing Company................ 691,900
9,200 Caterpillar, Inc.............. 507,150
1,500 Cincinnati Milacron Inc....... 35,438
800 Clark Equipment Co............ 43,400
5,000 Cooper Industries............. 170,625
1,600 Cummins Engine................ 72,400
4,200 Dana Corporation.............. 98,175
3,900 Deere & Company............... 258,375
2,500 Dover Corp.................... 129,063
1,500 E Systems Inc................. 62,438
3,000 Eaton Corp.................... 148,500
10,000 Emerson Electric Co........... 625,000
1,600 Foster Wheeler Corp........... 47,600
2,800 General Dynamics.............. 121,800
74,500 General Electric.............. 3,799,500
2,000 General Signal Corp........... 63,750
1,900 Harnischfeger Industries
Inc......................... 53,438
5,900 Honeywell Inc................. 185,850
4,900 Illinois Tool Works........... 214,375
4,600 Ingersoll-Rand Company........ 144,900
1,800 Johnson Controls, Inc......... 88,200
2,700 Lockheed...................... 196,088
3,600 Loral Corp.................... 136,350
4,200 Martin Marietta Corp.......... 186,375
7,302 Mattel, Inc................... 183,462
1,700 McDonnell Douglas Corp........ 241,400
*4,800 National Semiconductor
Corp........................ 93,600
*3,230 Navistar International
Corp........................ 48,853
2,100 Northrop Grumman
Corporation................. 88,200
900 Outboard Marine Corp.......... 17,662
1,695 Paccar Inc.................... 75,004
2,100 Parker-Hannifin Corp.......... 95,550
1,900 Raychem Corp.................. 67,688
5,900 Raytheon Co................... 376,862
9,600 Rockwell Intl. Corp........... 343,200
600 SPX Corp...................... 9,975
2,800 TRW, Inc...................... 184,800
1,300 Tektronix Inc................. 44,525

36
<PAGE>

HARTFORD INDEX FUND, INC.
STATEMENT OF NET ASSETS -- (CONTINUED)
DECEMBER 31, 1994

MARKET
SHARES VALUE
- ----------- -------------

COMMON STOCKS -- (CONTINUED)

MANUFACTURING -- (CONTINUED)
7,600 Tenneco, Inc.................. $ 323,000
3,800 Textron, Inc.................. 191,425
1,300 Timken........................ 45,825
1,200 Trinova Corporation........... 35,250
3,300 Tyco International Ltd........ 156,750
5,500 United Technologies Corp...... 345,811
*1,780 Varity Corp................... 64,525
2,000 Western Atlas Inc............. 75,250
15,300 Westinghouse Electric
Corporation................. 187,425
-------------
11,798,332
-------------
MEDIA & SERVICES -- 3.2%
2,545 CBS Inc....................... 140,929
6,700 Capital Cities/ABC Inc........ 571,175
10,000 Comcast Corp. Class A SP...... 156,875
23,300 Walt Disney Company........... 1,074,713
4,300 Dow Jones & Co................ 133,300
6,400 Gannett Co., Inc.............. 340,800
3,300 Interpublic Group............. 106,013
*1,650 King World Productions,
Inc......................... 56,925
2,400 Knight Ridder Inc............. 121,200
2,200 McGraw-Hill, Inc.............. 147,125
600 Meredith Corp................. 27,975
1,300 National Education Corp....... 5,362
4,500 New York Times Co. Class A.... 99,563
*24,900 Tele-Communications, Inc.
Class A..................... 541,575
16,380 Time Warner Inc............... 575,347
5,600 Times Mirror Co. Class A...... 175,700
2,900 Tribune Company............... 158,775
15,200 Viacom Inc. Class B........... 617,500
-------------
5,050,852
-------------
POLLUTION CONTROL -- 0.5%
8,400 Browning Ferris Industries
Inc......................... 238,350
2,600 Rollins Environmental Services
Inc......................... 12,675
21,000 WMX Technologies Inc.......... 551,250
-------------
802,275
-------------
RETAIL -- 5.9%
11,000 Albertson's Inc............... 319,000
6,200 American Stores Co............ 166,625
800 Brown Group Inc............... 25,600
4,500 Charming Shoppes Inc.......... 29,813
4,200 Circuit City Store Inc........ 93,450
3,100 Dayton Hudson Corporation..... 219,325
4,900 Dillard Department Stores
Class A..................... 131,075
6,300 The Gap, Inc.................. 192,150
1,400 Hartmarx Corp................. 8,225
19,473 Home Depot Inc................ 895,773
2,000 Jostens Inc................... 37,250
19,900 K Mart Corporation............ 258,700
*4,700 Kroger Co..................... 113,388
15,800 The Limited, Inc.............. 286,375
900 Longs Drug Store.............. 28,575
6,400 Lowe's Companies.............. 222,400
1,200 Luby's Cafeterias............. 26,850
10,800 May Department Stores Co...... 364,500
30,800 McDonald's Corp............... 900,900
4,600 Melville Corporation.......... 142,025
1,600 Mercantile Stores, Inc........ 63,200
3,600 Nordstrom Inc................. 151,200
10,300 J.C. Penney................... 459,638
2,700 Pep Boys-Manny, Moe, Jack..... 83,700

RETAIL -- (CONTINUED)
8,434 Price/Costco Inc.............. $ 108,588
3,800 Rite Aid Corp................. 88,825
*2,300 Ryan's Family Steak House..... 17,250
15,300 Sears Roebuck................. 703,800
*1,800 Shoney's Inc.................. 22,950
3,200 TJX Companies................. 50,000
2,849 Tandy Corp.................... 142,806
12,700 Toys R Us..................... 387,350
99,100 Wal-Mart...................... 2,105,875
5,400 Walgreen Co................... 236,250
4,300 Wendy's International Inc..... 61,813
5,700 F.W. Woolworth Company........ 85,500
-------------
9,230,744
-------------

TECHNOLOGY -- 3.3%
5,000 Amdahl Corp................... 55,000
5,100 Apple Computer................ 198,900
2,000 Autodesk Inc.................. 79,250
6,100 Automatic Data Processing..... 356,850
*1,900 Ceridian Corporation.......... 51,063
*10,800 Compaq Computer............... 426,600
7,200 Computer Associates........... 349,200
2,200 Computer Sciences Corp........ 112,200
*1,100 Cray Research Inc............. 17,325
*4,800 DSC Communications............ 172,200
*5,700 Digital Equipment Corp........ 189,525
4,700 First Data Corp............... 222,663
1,700 Harris Corp. Del.............. 72,250
85 Harris Computer Systems....... 1,041
11,100 Hewlett-Packard Co............ 1,108,613
*2,000 Intergraph Corp............... 16,250
*1,900 Lotus Development Corp........ 77,900
*1,100 M/A Com, Inc.................. 7,975
4,300 Micron Technology Inc......... 189,738
*12,500 Oracle Systems................ 551,563
1,900 Perkin Elmer.................. 48,688
4,900 Scientific Atlanta, Inc....... 102,900
4,300 Sun Microsystems Inc.......... 152,650
*4,900 Tandem Computers.............. 83,913
2,400 Teledyne Inc.................. 48,300
4,000 Texas Instruments............. 299,500
800 Thomas & Betts Corp........... 53,700
*7,400 Unisys Corp................... 63,825
*1,500 Zenith Electronics Corp....... 17,438
-------------
5,127,020
-------------

TRANSPORTATION & SERVICES -- 1.4%
*3,300 AMR........................... 175,725
3,900 Burlington Northern Inc....... 187,688
4,500 CSX Corp...................... 313,313
3,500 Consolidated Rail
Corporation................. 176,750
1,500 Consolidated Freightways,
Inc......................... 33,563
2,300 Delta Airlines, Inc........... 116,150
6,100 Norfolk Southern Corp......... 369,812
1,800 Pittston Services Group....... 47,700
1,700 Roadway Services.............. 96,475
8,013 Santa Fe Pacific Corp......... 140,227
6,200 Southwest Airlines............ 103,850
8,900 Union Pacific Corp............ 406,062
2,600 USAIR Group................... 11,375
1,200 Yellow Corp................... 28,650
-------------
2,207,340
-------------

THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.

<PAGE>

MARKET
SHARES VALUE
- ----------- -------------

COMMON STOCKS -- (CONTINUED)
UTILITIES -- 11.8%
67,971 AT&T Corp..................... $ 3,415,543
8,000 Alltel Corp................... 241,000
8,000 American Electric Power....... 263,000
23,800 Ameritech Corp................ 960,925
6,300 Baltimore Gas and Electric.... 139,388
19,000 Bell Atlantic Corp............ 945,250
21,600 Bell South Corp............... 1,169,100
7,000 Carolina Power and Lighting... 186,375
8,200 Central & Southwest Corp...... 185,525
6,458 Cinergy Corp.................. 150,944
2,200 The Columbia Gas System,
Inc......................... 51,700
10,200 Consolidated Edison NY........ 262,650
4,100 Consolidated Natural Gas
Co.......................... 145,550
6,400 Detroit Edison Inc............ 167,200
7,300 Dominion Resources, Inc....... 260,975
8,900 Duke Power Co................. 339,313
1,000 Eastern Enterprises........... 26,250
11,000 Enron Corp.................... 335,500
2,900 Enserch Corp.................. 38,063
10,100 Entergy Corp.................. 220,938
8,200 Florida Power & Light Group
Inc......................... 288,025
41,700 GTE Corp...................... 1,266,638
5,700 Houston Industries Inc........ 203,061
29,600 MCI Communications............ 543,900
6,200 Niagara Mohawk Power Corp..... 88,350
2,400 Nicor, Inc.................... 54,600
5,300 Noram Energy.................. 28,488
2,900 Northern States Power
Company..................... 127,600
18,000 Nynex Corporation............. 661,500
6,600 Ohio Edison Co................ 122,100
1,200 Oneok Inc..................... 21,600
9,600 Peco Energy Company........... 235,200
3,700 Pacific Enterprises........... 78,624
18,900 Pacific Gas & Electric
Company..................... 460,688
18,100 Pacific Telesis Group......... 515,850
12,200 Pacificorp.................... 221,124
1,500 Peoples Energy Corp........... 39,187
10,500 Public Service Enterprises.... 278,250
19,500 SCE Corp...................... 285,188
3,800 Sonat, Inc.................... 106,400
28,100 The Southern Co............... 562,000
26,100 Southwestern Bell
Corporation................. 1,053,788
14,900 Sprint Corp................... 411,612
9,700 Texas Utilities............... 310,400
9,300 Unicom Corp................... 223,200
4,500 Union Electric Co............. 159,188
19,800 U.S. West, Inc................ 705,374
-------------
18,557,124
-------------
Total Common Stocks........... $145,744,775
-------------
-------------

PRINCIPAL MARKET
AMOUNT VALUE
----------- -------------
<C> <S> <C>

SHORT-TERM SECURITIES -- 7.7%
CORPORATE NOTES
Abbey National
$ 1,000,000 5.540% due 11/16/95......... $ 999,321
1,000,000 Pepsico Inc. Floating Rate
4.000% due 04/13/95......... 999,950
-------------
1,999,271
-------------
U.S. TREASURY BILLS
250,000 U.S. Treasury Bill
4.685% due 01/19/95......... 249,382
30,000 U.S. Treasury Bill
4.730% due 01/19/95......... 29,925
325,000 U.S. Treasury Bill
4.630% due 02/02/95......... 323,621
-------------
602,928
-------------

REPURCHASE AGREEMENT
9,533,000 Interest in $92,095,000 joint
repurchase agreement dated
12/30/94 with Shawmut Bank
5.950% due 01/03/95;
maturity amount $9,539,302;
(Collateralized by
$96,165,000 U.S. Treasury
Note 4.250% due 11/30/95)... 9,533,000
-------------
Total Short-Term Securities... $ 12,135,199
-------------
-------------
</TABLE>

<TABLE>

<S> <C> <C>
DIVERSIFICATION OF ASSETS:
Total common stocks.......................... 92.4 % $145,744,775
Total short-term securities.................. 7.7 12,135,199
------ ------------
Total investment in securities
**(Identified cost $141,320,144)........... 100.1% 157,879,974
Excess of liabilities over cash and
receivables................................ (0.1) (219,602)
------ ------------
Net assets (Applicable to $1.52219 per share
based on 103,574,519 shares outstanding)... 100.0% $157,660,372
------ ------------
------ ------------

SUMMARY OF SHAREHOLDERS' EQUITY:
Capital stock, par value $.10 per share; authorized
400,000,000 shares; outstanding 103,574,519
shares............................................. $ 10,357,452
Capital surplus...................................... 130,677,913
Undistributed net realized (loss) on investments..... (66,407)
***Unrealized gain on futures contract............... 131,584
Unrealized appreciation of investments............... 16,559,830
------------
Net assets, applicable to shares outstanding......... $157,660,372
------------
------------
<FN>
* Non-income producing during period.
** Aggregate cost for Federal income tax purposes.
*** The fund has 48 Standard & Poor's 500, March 1995 futures contracts open at
December 31, 1994. These contracts have a value of $11,072,400.
See note 2(f).

</TABLE>

38
<PAGE>

HARTFORD INTERNATIONAL OPPORTUNITIES FUND, INC.
STATEMENT OF NET ASSETS
DECEMBER 31, 1994

<TABLE>
<CAPTION>
MARKET
SHARES VALUE
- ----------- -------------
<C> <S> <C>
COMMON STOCKS 90.3%

ARGENTINA -- 1.3%
34,000 Baesa ADR..................... $ 1,096,500
57,500 Banco de Galicia Y Buenos
Aires ADR................... 991,875
76,500 Telefonica de Argentina GDS
144A........................ 4,054,500
55,000 YPF S.A. Sponsored ADR........ 1,175,625
-------------
7,318,500
-------------
AUSTRALIA -- 5.0%
708,035 Amcor Ltd..................... 5,118,590
465,446 Broken Hill Proprietary....... 7,069,060
1,900,000 Coles Myer Ltd................ 6,455,166
612,811 National Australia Bank....... 4,915,037
1,829,001 Pacific Dunlop................ 4,866,175
-------------
28,424,028
-------------
AUSTRIAN -- 1.2%
50,600 EVN........................... 6,573,477
-------------
BELGIUM -- 0.3%
*6,680 Generale Banque De............ 1,699,906
-------------
CANADA -- 1.9%
460,000 Canadian Pacific Ltd.......... 6,900,000
*75,000 Canadian Pacific Ltd. P.P..... 1,125,000
160,000 Westcoast Energy.............. 2,537,963
-------------
10,562,963
-------------
CHILE -- 1.4%
67,500 Compania de Telefon Chile..... 5,315,625
100,000 Enersis ADR................... 2,775,000
-------------
8,090,625
-------------
DENMARK -- 2.1%
201,000 Tele Danmark.................. 5,125,500
*175,000 UniDanmark A REGD............. 6,729,110
-------------
11,854,610
-------------
FRANCE -- 7.8%
100,000 Assurance Gen France.......... 3,972,418
*20,000 B S N......................... 2,806,926
29,000 Credit Local de France........ 2,075,776
28,401 Euro RSCG..................... 2,926,951
*138,650 Renault....................... 4,585,468
68,135 Saint Gobain.................. 7,838,947
52,600 Societe Generale.............. 5,529,268
*117,700 Technip....................... 5,379,072
114,000 Total SA...................... 6,626,218
*32,000 Ugine SA...................... 2,248,537
-------------
43,989,581
-------------
GERMANY -- 4.6%
28,600 Bayer AG...................... 6,624,129
2,200 Krones AG..................... 1,263,226
15,749 Mannesmann AG................. 4,267,471
5,500 Schering AG................... 3,601,613
5,000 Siemens AG.................... 2,080,645
23,500 Veba AG....................... 8,138,581
-------------
25,975,665
-------------

HONG KONG -- 2.8%
1,250,000 Cathay Pacific Airways........ $ 1,817,565
401,000 HSBC Holdings Plc............. 4,327,711
1,125,000 Hutchison Whampoa Ltd......... 4,551,183
650,000 Swire Pacific Ltd............. 4,049,373
350,000 Wharf Holdings................ 1,180,690
-------------
15,926,522
-------------
INDIA -- 0.6%
200,000 India Tobacco Co. ADS......... 2,075,000
225,000 Indo Gulf Fertilizer GDR...... 641,250
29,000 Reliance Industries GDS....... 637,893
-------------
3,354,143
-------------
ITALY -- 1.3%
2,000,000 Stet.......................... 5,893,049
530,000 Telecom Italia Spa............ 1,378,702
-------------
7,271,751
-------------
JAPAN -- 23.9%
*1,000 East Japan Railway............ 4,991,480
556,000 Fujisawa Pharmaceutical....... 6,018,643
468,000 Hitachi Ltd................... 4,639,190
65,000 Ito-Yokado Ltd................ 3,472,487
500,000 Kajima Corp................... 4,279,844
1,200,000 Kawasaki Heavy Industries..... 5,412,449
175,000 Kokusai Electric.............. 3,367,746
50,000 Kyocera Corp.................. 3,703,518
9,000 Kyoritsu Air Tech............. 220,106
50,000 Mabuchi Motor................. 3,758,645
490,000 Mitsubishi Corp............... 6,433,798
266,000 Mitsui Petrochemical.......... 2,346,196
97,000 Murata Manufacturing Co....... 3,743,109
35,000 Nihon Jumbo Co., Ltd.......... 1,438,308
*2,165,000 NKK Corporation............... 5,989,175
*490 Nippon Telegraph &
Telephone................... 4,326,852
737,000 Minebea Co., Ltd.............. 6,205,072
200,000 Nomura Securities............. 4,149,544
782,000 Onada Cement Co............... 4,452,000
75,000 Orix Corp..................... 2,766,363
25,000 Riso Kagaku................... 2,164,979
204,000 Sankyo........................ 5,070,863
53,000 Sanyo Shinpan Finance Co...... 5,105,042
35,000 Secom......................... 2,175,003
27,000 Seven Eleven.................. 2,167,686
70,000 Shimamura Co. Ltd............. 3,508,069
350,000 Showa Corporation............. 3,402,827
10,000 Shohkoh Fund.................. 2,064,749
124,000 Sony Corp..................... 7,022,151
761,000 Sumitomo Realty............... 4,500,250
365,000 Sumitomo Trust & Banking...... 5,121,780
122,000 TDK Corp...................... 5,906,183
325,000 Tokio Marine & Fire
Insurance................... 3,974,140
10,000 Tsutsumi Jewelry.............. 912,097
-------------
134,810,344
-------------
MALAYSIA -- 2.8%
670,666 Arab Malaysia Finance......... 1,733,462
750,000 Resort World.................. 4,405,718
3,224,400 Sime Darby Berhad............. 7,387,014
75,000 Telekom Malaysia.............. 508,126
500,000 Tenaga Nasional Berhad........ 1,977,677
-------------
16,011,997
-------------

THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.

<PAGE>

MARKET
SHARES VALUE
- ----------- -------------

COMMON STOCKS -- (CONTINUED)
MEXICO -- 1.7%
250,000 Kimberly Clark de Mexico...... $ 2,954,315
155,000 Telefonos de Mexico ADR....... 6,355,000
-------------
9,309,315
-------------
NETHERLANDS -- 3.9%
530,000 Elesevier..................... 5,528,151
145,625 International Nederlanden
CVA......................... 6,881,375
35,000 Royal Dutch Petroleum......... 3,812,021
47,000 Unilever CVA.................. 5,522,561
-------------
21,744,108
-------------
NEW ZEALAND -- 1.7%
2,525,000 Carter Holt................... 5,172,193
700,000 Lion Nathan................... 1,335,296
55,000 Telecom Corp. NZ ADR.......... 2,825,625
-------------
9,333,114
-------------
NORWAY -- 1.9%
225,000 Hafslund Nyco A-Free.......... 4,806,697
549,000 Saga Petro A Free............. 5,965,627
-------------
10,772,324
-------------
PORTUGAL -- 1.0%
447,500 Banco Commerical Port REGD.... 5,846,730
-------------
SINGAPORE -- 2.0%
256,875 Devel Bank of Singapore....... 2,642,747
*1,000,000 Keppel Corp................... 8,504,801
-------------
11,147,548
-------------
SPAIN -- 4.0%
125,000 Argentaria SA................. 4,430,031
15,000 Empresa Nacional de
Electricidad................ 607,500
94,000 Endesa........................ 3,827,699
750,000 Iberdrola SA.................. 4,626,605
30,000 Repsol SA..................... 813,644
115,000 Repsol........................ 3,133,750
188,000 Tabacalera SA-A............... 5,013,143
-------------
22,452,372
-------------
SWEDEN -- 3.3%
550,000 Aga AB-B Free................. 5,067,863
214,000 Astra A Free.................. 5,526,964
502,000 Pharmacia ABA................. 8,035,673
-------------
18,630,500
-------------
SWITZERLAND -- 2.3%
11,500 Ciba Geigy AG................. 6,862,917
6,600 Nestle SA..................... 6,288,836
-------------
13,151,753
-------------
UNITED KINGDOM -- 11.5%
373,000 Abbey National Plc............ 2,512,148
925,000 Bass.......................... 7,445,440
5,152,000 Bet Plc....................... $ 8,180,976
950,000 British Telecom Co. Plc....... 5,610,529
765,000 Cadbury Schweppes............. 5,158,245
1,236,000 General Electric UK........... 5,317,584
425,000 Kwik Save Group Plc........... 3,656,915
1,070,500 Redland Plc................... 7,703,849
650,000 Royal Insurance Holding....... 2,837,140
894,000 Smith WH and Son A............ 6,699,406
1,475,000 Tomkins Plc................... 5,076,658
350,000 Zeneca Group Plc.............. 4,813,047
-------------
65,011,937
-------------
Total Common Stocks........... $509,263,813
-------------
-------------
</TABLE>

<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT
- -----------
<C> <S> <C>
FOREIGN GOVERNMENT BONDS -- 0.5%
NETHERLANDS GOVERNMENT BOND
5,000,000 7.500% due 01/15/20........... $ 2,709,906
--------------
--------------
SHORT-TERM SECURITIES -- 8.1%
$45,765,000.. Repurchase Agreement dated
12/30/94 with Lehman 5.850%
due 01/03/95; maturity
amount $45,794,747
(Collateralized by
$45,010,000 U.S. treasury
note 7.875% due 01/15/98)... $ 45,765,000
--------------
Total Short-Term Securities... $ 45,765,000
--------------
--------------

<S> <C> <C>
DIVERSIFICATION OF ASSETS:
Total common stocks.......................... 90.3 % $ 509,263,813
Total foreign government bonds............... 0.5 2,709,906
Total short term securities.................. 8.1 45,765,000
------ --------------
Total investment in securities
**(identified cost $543,622,428)........... 98.9% 557,738,719
Excess of cash and receivables over
liabilities................................ 1.1 6,026,384
------ --------------
Net assets (Applicable to $1.17571 per share
based on 479,509,143 shares outstanding)... 100.0% $ 563,765,103
------ --------------
------ --------------

<S> <C>
SUMMARY OF SHAREHOLDER'S EQUITY
Capital Stock, Par Value $.10 per share authorized
1,500,000,000 shares, outstanding 479,509,143
shares............................................. $ 47,950,915
Capital surplus...................................... 496,586,570
Undistributed net realized gain on investments....... 4,153,005
Unrealized appreciation of investments............... 14,116,291
Unrealized appreciation on forward currency
contracts.......................................... 934,704
Unrealized appreciation on translation on other
assets and liabilities in foreign currencies....... 23,618
--------------
Net assets, applicable to shares outstanding......... $ 563,765,103
--------------
--------------
<FN>
* Non-income producing during period.
** Aggregate cost for Federal income tax purposes.
</TABLE>

40
<PAGE>

HARTFORD INTERNATIONAL OPPORTUNITIES FUND, INC.
STATEMENT OF NET ASSETS -- (CONTINUED)
DECEMBER 31, 1994

FORWARD CURRENCY CONTRACTS -- NOTE 2 -- OUTSTANDING AT DECEMBER 31, 1994

<TABLE>
<CAPTION>
TOTAL AGGREGATE DELIVERY UNREALIZED
DESCRIPTION VALUE FACE VALUE DATE APPREC./(DEPREC.)
- --------------------------- ---------- ---------- --------- -----------------
<S> <C> <C> <C> <C>
Japanese Yen (Sell) $14,788,228 $15,000,000 02/22/95 211,772
Japanese Yen (Sell) 9,929,883 10,030,036 02/22/95 100,153
Japanese Yen (Sell) 24,377,221 25,000,000 04/19/95 622,779
-------
934,704
-------
-------
</TABLE>

THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.

41
<PAGE>

HARTFORD DIVIDEND & GROWTH FUND, INC.
STATEMENT OF NET ASSETS
DECEMBER 31, 1994

<TABLE>
<CAPTION>
MARKET
SHARES VALUE
- ---------- -------------
<C> <S> <C>
COMMON STOCKS -- 93.7%
BUSINESS SERVICES -- 1.4%
13,700 Dun & Bradstreet Corp......... $ 753,500
-------------
COMPUTER & SERVICES -- 1.5%
8,500 Xerox......................... 841,500
-------------
CONSUMER DURABLES -- 2.0%
39,500 Ford Motor Co................. 1,106,000
-------------
CONSUMER NON-DURABLES -- 10.1%
10,500 Avon Products................. 627,375
13,300 Clorox Company................ 783,038
9,100 Eastman Kodak................. 434,525
34,600 Flowers Industries, Inc....... 627,125
17,400 General Mills Company......... 991,800
43,000 Interstate Bakeries........... 596,625
13,700 Kimberly Clark Corp........... 691,850
13,000 Sara Lee Corp................. 328,250
24,500 Universal Corp................ 486,937
-------------
5,567,525
-------------
ENERGY & SERVICES -- 12.3%
25,800 Amoco Corporation............. 1,525,425
15,100 Atlantic Richfield............ 1,536,425
17,200 Exxon......................... 1,044,900
12,900 Pennzoil Co................... 569,213
16,500 Phillips Petroleum............ 540,375
36,600 USX-Marathon Group............ 599,325
34,300 Unocal Corp................... 934,675
-------------
6,750,338
-------------
FINANCIAL SERVICES -- 13.5%
32,900 Bank of New York Co........... 954,100
31,100 Exel Limited.................. 1,228,450
20,100 First Bank System Inc......... 668,325
2,200 First Fidelity Bancorp........ 98,725
24,600 First Union Corporation....... 1,017,825
25,100 Fleet Financial Group Inc..... 815,750
34,900 Keycorp....................... 872,500
12,900 J.P. Morgan................... 722,400
25,000 Nationsbank Corp.............. 1,128,125
-------------
7,506,200
-------------
HEALTH CARE -- 13.4%
21,000 American Home Products
Corp........................ 1,317,750
27,800 Baxter International.......... 785,350
22,800 Bristol-Myers Squibb
Company..................... 1,319,550
19,500 Lilly Eli & Co................ 1,279,688
32,900 Merck & Co., Inc.............. 1,254,312
18,200 Pfizer, Inc................... 1,405,950
-------------
7,362,600
-------------
INDUSTRIAL MATERIALS -- 8.2%
22,400 Albemarle Corp................ 310,800
11,600 Dow Chemical.................. 780,100
13,400 DuPont EI De Nemours.......... 753,750
11,400 Eastman Chemical Co........... 575,700
11,500 International Paper Co........ 866,813
6,700 Minnesota Mining &
Manufacturing Co............ 357,612
16,000 PPG Industries, Inc........... $ 594,000
10,900 Witco Chemical Corp........... 268,412
-------------
4,507,187
-------------
MANUFACTURING -- 6.9%
7,600 Cooper Industries............. 259,350
5,600 Deere & Company............... 371,000
4,200 Eaton Corp.................... 207,900
21,330 General Electric.............. 1,087,830
21,100 Northrop Grumman Corp......... 886,200
400 Hewlatt Packard 5.25% Equity
Linked Securities........... 34,800
10,600 Sundstrand Corp............... 482,300
10,900 Tenneco, Inc.................. 463,250
-------------
3,792,630
-------------
MEDIA & SERVICES -- 1.5%
15,200 Gannett Co., Inc.............. 809,400
-------------
REAL ESTATE -- 1.4%
34,000 Mark Centers Trust............ 437,750
13,000 Oasis Residential............. 318,500
-------------
756,250
-------------
RETAIL -- 5.8%
27,900 May Department Stores Co...... 941,625
29,000 Mercantile Stores, Inc........ 1,145,500
24,600 J.C. Penney................... 1,097,775
-------------
3,184,900
-------------
UTILITIES -- 15.7%
12,000 AT&T Corp..................... 603,000
9,000 Alltel Corp................... 271,125
15,400 BCE Inc....................... 494,725
9,100 Bell Atlantic Corp............ 452,725
9,300 CMS Energy Corp............... 212,738
16,800 Central Hudson Gas &
Electric.................... 445,200
4,200 Cinergy Corp.................. 98,175
8,600 Consolidated Natural Gas
Co.......................... 305,300
18,300 Entergy Corp.................. 400,313
9,100 Equitable Resources........... 246,838
8,800 Pacific Gas & Electric
Company..................... 214,500
18,700 Pinnacle West Cap............. 369,325
9,600 Public Service Co. of
Colorado.................... 282,000
26,000 Rochester Telephone Co........ 549,250
29,200 SCE Corp...................... 427,050
27,200 Sierra Pacific Res............ 513,400
31,300 Sprint Corp................... 864,662
9,500 Telefonos de Mexico ADR....... 389,500
6,200 Texas Utilities............... 198,400
22,200 U.S. West, Inc................ 790,875
8,100 Western Resources Inc......... 231,862
10,700 Wisconsin Energy Corp......... 276,862
-------------
8,637,825
-------------
Total Common Stocks........... $ 51,575,855
-------------
-------------

THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.

42
<PAGE>

HARTFORD DIVIDEND & GROWTH FUND, INC.
STATEMENT OF NET ASSETS -- (CONTINUED)
DECEMBER 31, 1994
MARKET
SHARES VALUE
- ----------- -------------
<C> <S> <C>
PREFERRED STOCKS -- 1.6%

CONSUMER DURABLES -- 0.5%
13,000 Noble Drilling Corp........... $ 273,000
-------------
CONSUMER NON-DURABLES -- 1.1%
96,900 RJR Nabisco Preferred Equity
Redemption Cumulative
Stock....................... 581,400
-------------
Total Preferred Stocks........ $ 854,400
-------------
-------------
</TABLE>

<TABLE>

PRINCIPAL
AMOUNT
- ----------
<S> <C>

CONVERTIBLE CORPORATE BONDS -- 1.0%
TRANSPORTATION
AMR Corp.
$ 710,000 6.125% due 11/01/24........... $ 571,550
-------------
-------------

SHORT-TERM SECURITIES -- 4.7%
1,313,000 Repurchase Agreement dated
12/30/94 with Union Bank
of Switzerland 5.500% due
01/03/95; maturity amount
$1,313,802; (Collateralized
by $1,060,000 U.S. Treasury
Note 11.625% due 11/15/04)..... 1,131,000

1,312,000 Repurchase Agreement dated
12/30/94 with Donaldson,
Lufkin & Jenrette 5.875%
due 01/03/95; maturity
amount $1,312,856;
(Collateralized by
$1,292,000 U.S.
Treasury Note 7.875% due
01/15/98)...................... 1,312,000
-------------
Total Short-Term Securities..... $ 2,625,000
-------------
-------------

DIVERSIFICATION OF ASSETS:
<S> <C> <C>
Total common stocks.......................... 93.7 % $ 51,575,855
Total preferred stocks....................... 1.6 854,400
Total convertible corporate bonds............ 1.0 571,550
Total short-term securities.................. 4.7 2,625,000
------ ------------
Total investment in securities
**(Identified cost $56,527,273)............ 101.0% 55,626,805
Excess of liabilities over cash and
receivables................................ (1.0) (561,288)
------ ------------
Net assets (Applicable to $0.99409 per share
based on 55,392,785 shares outstanding).... 100.0% $ 55,065,517
------ ------------
------ ------------

SUMMARY OF SHAREHOLDERS' EQUITY:
Capital stock, par value $.10 per share; authorized
750,000,000 shares; outstanding 55,392,785
shares............................................. $ 5,539,279
Capital surplus...................................... 50,426,706
Undistributed net realized gain/(loss) on
investments........................................ 0
Unrealized depreciation of investments............... (900,471)
Unrealized appreciation on translation of other
assets and liabilities in foreign currencies....... 3
------------
Net assets, applicable to shares outstanding......... $ 55,065,517
------------
------------
<FN>

* Non-income producing during period.
** Aggregate cost for Federal income tax purposes.
</TABLE>

THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.

43
<PAGE>

HARTFORD MUTUAL FUNDS
STATEMENT OF OPERATIONS,
STATEMENT OF CHANGES IN NET ASSETS
AND NOTES TO FINANCIAL STATEMENTS

<PAGE>
HARTFORD MUTUAL FUNDS
STATEMENT OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 1994

<TABLE>
<CAPTION>
HARTFORD HVA MONEY
HARTFORD BOND STOCK MARKET FUND,
FUND, INC. FUND, INC. INC.
--------------- ------------- ------------
<S> <C> <C> <C>
INVESTMENT INCOME:
Dividends........................................................ $ -- $ 25,003,011 $ --
Interest......................................................... 16,859,415 3,857,028 12,578,696
Less: foreign tax withheld....................................... -- -- --
--------------- ------------- ------------
Total Income................................................... 16,859,415 28,860,039 12,578,696
--------------- ------------- ------------
EXPENSES:
Investment advisory services..................................... 808,161 3,096,882 704,435
Administrative services.......................................... 435,417 1,888,808 493,104
Accounting services.............................................. 28,666 118,074 29,590
Registration Fees................................................ 13,158 100,059 43,269
Custodian Fees................................................... 27,147 31,911 23,536
Board of Directors............................................... 2,386 9,831 2,460
Other............................................................ 45,103 157,855 39,533
--------------- ------------- ------------
Total expenses................................................. 1,360,038 5,403,420 1,335,927
--------------- ------------- ------------
Net investment income............................................ 15,499,377 23,456,619 11,242,769
--------------- ------------- ------------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain (loss) on security transactions................ (15,502,624) 47,489,646 --
Net realized gain (loss) on futures contracts.................... (1,484,713) -- --
Net realized gain (loss) on options contracts.................... -- -- --
Net unrealized appreciation (depreciation) of investments during
the period...................................................... (8,713,699) (91,880,275) --
--------------- ------------- ------------
Net gain (loss) on investments................................... (25,701,036) (44,390,629) --
--------------- ------------- ------------
Net increase (decrease) in net assets resulting from
operations...................................................... $ (10,201,659) $ (20,934,010) $11,242,769
--------------- ------------- ------------
--------------- ------------- ------------
<FN>

* From Inception, March 8, 1994, to December 31, 1994.
</TABLE>

THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.

44
<PAGE>

<TABLE>
<CAPTION>
HARTFORD
HARTFORD U.S. HARTFORD HARTFORD HARTFORD DIVIDEND &
HARTFORD GOVERNMENT AGGRESSIVE MORTGAGE HARTFORD INTERNATIONAL GROWTH
ADVISERS MONEY MARKET GROWTH FUND, SECURITIES INDEX OPPORTUNITIES FUND,
FUND, INC. FUND, INC. INC. FUND, INC. FUND, INC. FUND, INC. INC.*
------------- ------------- ------------ ------------- ------------ ------------- ----------

<S> <C> <C> <C> <C> <C> <C>
$ 41,560,689 $ -- $ 7,809,645 $ -- $ 4,093,528 $ 9,365,154 $ 777,142
72,717,884 398,040 3,235,514 23,586,487 359,702 2,310,327 101,307
-- -- (52,107) -- (10,551) (1,170,141) (879)
------------- ------------- ------------ ------------- ------------ ------------- ----------
114,278,573 398,040 10,993,052 23,586,487 4,442,679 10,505,340 877,570
------------- ------------- ------------ ------------- ------------ ------------- ----------

12,575,934 23,635 4,889,579 827,557 300,556 2,546,060 99,465
5,001,520 16,545 1,710,237 579,290 262,987 810,246 35,293
310,849 1,072 102,735 39,886 16,748 45,128 645
318,439 249 140,693 194 6,154 128,419 16,855
58,819 11,968 47,870 45,078 71,803 319,122 14,951
25,884 88 8,545 3,315 1,392 3,750 54
423,677 1,437 137,254 82,637 22,365 89,290 856
------------- ------------- ------------ ------------- ------------ ------------- ----------
18,715,122 54,994 7,036,913 1,577,957 682,005 3,942,015 168,119
------------- ------------- ------------ ------------- ------------ ------------- ----------
95,563,451 343,046 3,956,139 22,008,530 3,760,674 6,563,325 709,451
------------- ------------- ------------ ------------- ------------ ------------- ----------

36,509,652 -- 65,960,774 (18,809,782) 303,039 8,495,707 68,307
-- -- (2,071,865) (40,932) 60,051 -- --
-- -- -- 26,563 -- -- --

(211,113,159) -- (40,815,773) (9,086,028) (2,407,858) (25,853,182) (900,465)
------------- ------------- ------------ ------------- ------------ ------------- ----------
(174,603,507) -- 23,073,136 (27,910,179) (2,044,768) (17,357,475) (832,158)
------------- ------------- ------------ ------------- ------------ ------------- ----------
$(79,040,056) $343,046 $27,029,275 $ (5,901,649) $ 1,715,906 $(10,794,150) $(122,707)
------------- ------------- ------------ ------------- ------------ ------------- ----------
------------- ------------- ------------ ------------- ------------ ------------- ----------
</TABLE>

45
<PAGE>
HARTFORD MUTUAL FUNDS
STATEMENT OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED DECEMBER 31, 1994

<TABLE>
<CAPTION>
HVA MONEY
HARTFORD BOND HARTFORD STOCK MARKET FUND,
FUND, INC. FUND, INC. INC.
-------------- --------------- ----------------
<S> <C> <C> <C>
OPERATIONS:
Net investment income............................................ $ 15,499,377 $ 23,456,619 $ 11,242,769
Net realized gain (loss) on security transactions................ (15,502,624) 47,489,646 --
Net realized gain (loss) on futures contracts.................... (1,484,713) -- --
Net realized gain (loss) on options contracts.................... -- -- --
Net unrealized appreciation (depreciation) of investments during
the period...................................................... (8,713,699) (91,880,275) --
-------------- --------------- ----------------
Net increase (decrease) in net assets resulting from
operations...................................................... (10,201,659) (20,934,010) 11,242,769
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income............................................ (15,499,377) (23,456,619) (11,242,769)
Net realized gain on security transactions....................... (4,467,655) (59,838,405) --
CAPITAL SHARE TRANSACTIONS:
Proceeds from Fund shares sold................................... 321,606,810 491,044,914 1,169,307,801
Net asset value of Fund shares issued upon reinvestment of
dividends and capital gains..................................... 19,967,032 83,295,024 11,242,769
Cost of Fund shares redeemed..................................... (303,548,769) (275,377,788) (1,093,173,662)
-------------- --------------- ----------------
Net increase (decrease) in net assets resulting from capital
share transactions.............................................. 38,025,073 298,962,150 87,376,908
-------------- --------------- ----------------
Total increase (decrease) in net assets........................ 7,856,382 194,733,116 87,376,908
NET ASSETS:
Beginning of period.............................................. 239,601,705 968,424,866 234,087,764
-------------- --------------- ----------------
End of period.................................................... $ 247,458,087 $ 1,163,157,982 $ 321,464,672
-------------- --------------- ----------------
-------------- --------------- ----------------
CHANGE IN CAPITAL SHARES OUTSTANDING:
Shares sold...................................................... 324,129,384 170,123,593 1,169,307,801
Shares issued upon reinvestment of dividends and capital gains... 20,471,697 28,261,576 11,242,769
Shares redeemed.................................................. (306,837,163) (95,662,565) (1,093,173,662)
-------------- --------------- ----------------
Net increase (decrease) in shares outstanding.................... 37,763,918 102,722,604 87,376,908
-------------- --------------- ----------------
-------------- --------------- ----------------
<FN>

* From Inception, March 8, 1994, to December 31, 1994.
</TABLE>

THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.

46
<PAGE>

<TABLE>
<CAPTION>
HARTFORD U.S. HARTFORD HARTFORD HARTFORD HARTFORD
HARTFORD GOVERNMENT AGGRESSIVE MORTGAGE INTERNATIONAL DIVIDEND &
ADVISERS MONEY MARKET GROWTH FUND, SECURITIES HARTFORD INDEX OPPORTUNITIES GROWTH FUND,
FUND, INC. FUND, INC. INC. FUND, INC. FUND, INC. FUND, INC. INC.*
--------------- ---------------- --------------- -------------- -------------- ------------- ------------

<S> <C> <C> <C> <C> <C> <C>
$ 95,563,451 $ 343,046 $ 3,956,139 $ 22,008,530 $ 3,760,674 $ 6,563,325 $ 709,451
36,509,652 -- 65,960,774 (18,809,782) 303,039 8,495,707 68,307
-- -- (2,071,865) (40,932) 60,051 -- --
-- -- -- 26,563 -- -- --

(95,563,451) (343,046) (3,956,139) (22,008,530) (3,760,674) (6,563,325) (709,451)
(75,830,481) -- (71,271,919) (1,593,324) -- -- (68,307)

753,833,772 3,263,991 882,948,421 19,488,680 94,987,497 311,466,613 55,786,553

171,393,932 343,046 75,228,058 23,601,854 3,638,667 6,509,276 701,056
(67,309,913) (3,437,141) (530,237,732) (74,638,761) (79,317,298) (18,461,122) (521,627)
--------------- ---------------- --------------- -------------- -------------- ------------- ------------

857,917,791 169,896 427,938,747 (31,548,227) 19,308,866 299,514,767 55,965,982
--------------- ---------------- --------------- -------------- -------------- ------------- ------------
607,483,803 169,896 379,739,964 (61,051,730) 17,264,098 282,157,292 55,065,517

2,426,550,258 9,449,403 778,903,674 365,198,297 140,396,274 281,607,811 --
--------------- ---------------- --------------- -------------- -------------- ------------- ------------
$3,034,034,061 $ 9,619,299 $1,158,643,638 $304,146,567 $ 157,660,372 $563,765,103 $55,065,517
--------------- ---------------- --------------- -------------- -------------- ------------- ------------
--------------- ---------------- --------------- -------------- -------------- ------------- ------------

449,571,900 3,263,991 310,435,654 18,922,336 61,853,526 257,732,430 55,208,333
102,233,951 343,046 25,754,762 23,146,211 2,385,383 5,455,472 696,988
(41,310,436) (3,437,141) (186,291,460) (72,966,325) (51,476,702) (15,397,114) (512,536)
--------------- ---------------- --------------- -------------- -------------- ------------- ------------
510,495,415 169,896 149,898,956 (30,897,778) 12,762,207 247,790,788 55,392,785
--------------- ---------------- --------------- -------------- -------------- ------------- ------------
--------------- ---------------- --------------- -------------- -------------- ------------- ------------
</TABLE>

47
<PAGE>
HARTFORD MUTUAL FUNDS
STATEMENT OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED DECEMBER 31, 1993

<TABLE>
<CAPTION>
HVA MONEY
HARTFORD BOND HARTFORD STOCK MARKET FUND,
FUND, INC. FUND, INC. INC.
-------------- -------------- ----------------
<S> <C> <C> <C>
OPERATIONS:
Net investment income............................................ $ 10,891,432 $ 14,026,287 $ 5,875,875
Net realized gain (loss) on security transactions................ 4,428,069 59,838,405 --
Net realized gain (loss) on futures contracts.................... 1,100 -- --
Net unrealized appreciation (depreciation) of investments
during the period............................................... 594,738 32,912,789 --
-------------- -------------- ----------------
Net increase (decrease) in net assets resulting from
operations...................................................... 15,915,339 106,777,481 5,875,875
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income............................................ (10,891,432) (14,026,287) (5,875,875)
Net realized gain on security transactions....................... (2,481,886) (40,736,676) --
CAPITAL SHARE TRANSACTIONS:
Proceeds from Fund shares sold................................... 512,706,706 722,904,911 1,131,123,257
Net asset value of Fund shares issued upon reinvestment
of dividends and capital gains.................................. 13,373,318 54,762,963 5,875,875
Cost of Fund shares redeemed..................................... (417,558,154) (431,160,591) (1,093,157,725)
-------------- -------------- ----------------
Net increase (decrease) in net assets resulting from
capital share transactions...................................... 108,521,870 346,507,283 43,841,407
-------------- -------------- ----------------
Total increase (decrease) in net assets........................ 111,063,891 398,521,801 43,841,407
NET ASSETS:
Beginning of period.............................................. 128,537,814 569,903,065 190,246,357
-------------- -------------- ----------------
End of period.................................................... $ 239,601,705 $ 968,424,866 $ 234,087,764
-------------- -------------- ----------------
-------------- -------------- ----------------
CHANGE IN CAPITAL SHARES OUTSTANDING:
Shares sold...................................................... 490,586,032 247,224,141 1,131,123,257
Shares issued upon reinvestment of dividends and capital gains... 12,878,609 19,566,551 5,875,875
Shares redeemed.................................................. (399,531,483) (146,527,465) (1,093,157,725)
-------------- -------------- ----------------
Net increase (decrease) in shares outstanding.................... 103,933,158 120,263,227 43,841,407
-------------- -------------- ----------------
-------------- -------------- ----------------
</TABLE>

THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.

48
<PAGE>

<TABLE>
<CAPTION>
HARTFORD
U.S. HARTFORD HARTFORD HARTFORD
HARTFORD GOVERNMENT AGGRESSIVE MORTGAGE HARTFORD INTERNATIONAL
ADVISERS MONEY MARKET GROWTH FUND, SECURITIES INDEX OPPORTUNITIES FUND,
FUND, INC. FUND, INC. INC. FUND, INC. FUND, INC. INC.
--------------- ------------ -------------- ------------- ------------- -------------------

<S> <C> <C> <C> <C> <C>
$ 49,117,655 $ 261,866 $ 611,043 $ 20,398,708 $ 2,678,344 $ 966,933
75,830,481 -- 70,202,075 1,593,324 266,532 (2,274,828)
-- -- 1,143,059 -- (349,437) --

66,773,643 -- 23,150,559 (3,651,786) 7,429,967 40,504,618
--------------- ------------ -------------- ------------- ------------- -------------------
191,721,779 261,866 95,106,736 18,340,246 10,025,406 39,196,723

(49,117,655) (261,866) (611,043) (20,398,708) (2,678,344) (966,933)
(42,260,621) -- (12,893,253) (11,319) -- --

1,454,263,348 1,951,439 940,905,560 142,007,929 167,863,087 223,383,830

91,378,276 261,866 13,504,296 20,410,027 2,505,210 921,132
(205,182,230) (3,288,997) (557,481,366) (53,860,800) (119,653,631) (28,486,629)
--------------- ------------ -------------- ------------- ------------- -------------------

1,340,459,394 (1,075,692) 396,928,490 108,557,156 50,714,666 195,818,333
--------------- ------------ -------------- ------------- ------------- -------------------
1,440,802,897 (1,075,692) 478,530,930 106,487,375 58,061,728 234,048,123

985,747,361 10,525,095 300,372,744 258,710,922 82,334,546 47,559,688
--------------- ------------ -------------- ------------- ------------- -------------------
$2,426,550,258 $ 9,449,403 $ 778,903,674 $365,198,297 $ 140,396,274 $281,607,811
--------------- ------------ -------------- ------------- ------------- -------------------
--------------- ------------ -------------- ------------- ------------- -------------------

860,240,498 1,951,439 332,523,961 130,876,634 112,438,560 204,598,652
55,223,116 261,866 5,163,099 18,847,767 1,659,053 865,812
(118,278,746) (3,288,997) (196,477,578) (49,707,708) (80,078,761) (25,621,555)
--------------- ------------ -------------- ------------- ------------- -------------------
797,184,868 (1,075,692) 141,209,482 100,016,693 34,018,852 179,842,909
--------------- ------------ -------------- ------------- ------------- -------------------
--------------- ------------ -------------- ------------- ------------- -------------------
</TABLE>

THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.

49
<PAGE>
HARTFORD MUTUAL FUNDS
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1994

1. ORGANIZATION:

Hartford Bond Fund Inc. (formerly Hartford Bond/Debt Securities Fund, Inc.),
Hartford Stock Fund Inc. (formerly HVA Stock Fund, Inc.), HVA Money Market
Fund, Inc., Hartford Advisers Fund, Inc. (formerly HVA Advisers Fund, Inc.),
Hartford U.S. Government Money Market Fund Inc., Hartford Aggressive Growth
Fund, Inc. (formerly HVA Aggressive Growth Fund, Inc.), Hartford Mortgage
Securities Fund, Inc. (formerly Hartford GNMA/Mortgage Securities Fund,
Inc.), Hartford Index Fund, Inc., Hartford International Opportunities Fund,
Inc., and Hartford Dividend and Growth Fund, Inc. (the Funds) are organized
under the laws of the State of Maryland and are registered with the
Securities and Exchange Commission (SEC) under the Investment Company Act of
1940, as amended, as diversified open-ended management investment companies.

Fund shares are made available to serve as the underlying investment media
of the variable annuity, variable life insurance and group pension contracts
issued by the affiliated life insurance company Separate Accounts of the ITT
Hartford Life Insurance Companies (Hartford Life Insurance Company, Hartford
Life and Accident Insurance Company and ITT Hartford Life and Annuity
Insurance Company.)

2. SIGNIFICANT ACCOUNTING POLICIES:

The following is a summary of significant accounting policies of the Funds,
which are in accordance with generally accepted accounting principles in the
investment company industry:

a) SECURITY TRANSACTIONS--Security transactions are recorded on the trade
date (date the order to buy or sell is executed). Security gains and
losses are determined on the basis of identified cost.

b) SECURITY VALUATION--Debt securities (other than short-term obligations)
are valued on the basis of valuations furnished by an unaffiliated pricing
service which determines valuations for normal institutional size trading
units of debt securities. Mortgage securities are valued at the bid price.
Short-term securities held in the HVA Money Market Fund, Inc. and the
Hartford U.S. Government Money Market Fund, Inc. are valued at amortized
cost or original cost plus accrued interest receivable, both of which
approximate market value. In the Hartford Advisers Fund, Inc., Hartford
Aggressive Growth Fund, Inc., Hartford Index Fund, Inc., Hartford Stock
Fund, Inc., Hartford Bond Fund, Inc., Hartford Mortgage Securities Fund,
Inc., Hartford International Opportunities Fund, Inc., and Hartford
Dividend and Growth Fund, Inc., short-term investments with a maturity of
60 days or less when purchased are valued at amortized cost, which
approximates market value. Short-term investments with a maturity of more
than 60 days when purchased are valued based on market quotations until
the remaining days to maturity become less than 61 days. From such time
until maturity, the investments are valued at amortized cost.

Equity securities are valued at the last sales price reported on principal
securities exchanges (domestic or foreign). If no sale took place on such
day and in the case of certain equity securities traded over-the-counter,
then such securities are valued at the mean between the bid and asked
prices. Options are valued at the last sales price; if no sale took place
on such day, then options are valued at the mean between the bid and asked
prices. Securities for which market quotations are not readily available
and all other assets are valued in good faith at fair value by a person
designated by the Funds' Board of Directors.

c) FOREIGN CURRENCY TRANSACTIONS--The accounting records of the Funds are
maintained in U.S. dollars. All assets and liabilities initially expressed
in foreign currencies are converted into U.S. dollars at prevailing
exchange rates. Purchases and sales of investment securities, dividend and
interest income, and certain expenses are translated at the rates of
exchange prevailing on the respective dates of such transactions.

The Funds do not isolate that portion of the results of operations
resulting from changes in the foreign exchange rates on investments from
the fluctuations arising from changes in the market prices of securities
held. Such fluctuations are included with the net realized and unrealized
gain or loss on investments.

Net realized foreign exchange gains or losses arise from sales of
portfolio securities, sales of foreign currencies, and the difference
between asset and liability amounts initially stated in foreign currencies
and the U.S. dollar value of the amounts actually received or paid. Net
unrealized foreign exchange gains or losses arise from changes in the
value of portfolio securities and other assets and liabilities at the end
of the reporting period, resulting from changes in the exchange rates.

50
<PAGE>
d) REPURCHASE TRANSACTIONS--A repurchase agreement is an agreement by which
the seller of a security agrees to repurchase the security sold at a
mutually agreed upon time and price. At the time the Funds enter into a
repurchase agreement, the value of the underlying collateral
security(ies), including accrued interest, will be equal to or exceed the
value of the repurchase agreement and, in the case of repurchase
agreements exceeding one day, the value of the underlying security(ies),
including accrued interest, is required during the term of the agreement
to be equal to or exceed the value of the repurchase agreement. Securities
which serve to collateralize the repurchase agreement are held by each
Fund's custodian in book entry or physical form in the custodial account
of the Fund. Repurchase agreements are valued at cost plus accrued
interest receivable.

e) JOINT TRADING ACCOUNT--Pursuant to an exemptive order issued by the
Securities and Exchange Commission, the Funds may transfer uninvested cash
balances into a joint trading account managed by Hartford Investment
Management Company (HIMCO) . These balances may be invested in one or more
repurchase agreements and/or short-term money market instruments.

f) FUTURES, OPTIONS ON FUTURES AND OPTIONS ACCOUNTING PRINCIPLES--The Funds
enter into futures contracts to retain their cash balance and yet be fully
exposed to the market thereby providing the liquidity necessary to
accommodate redemptions while at the same time providing shareholders the
investment return of a fully invested portfolio. A futures contract is an
agreement between two parties to buy and sell a security for a set price
on a future date. When the Funds enter into such contracts, they are
required to deposit with their custodian an amount of "initial margin" of
cash or U.S. Treasury bills. Subsequent payments, called maintenance
margin, to and from the broker, are made on a daily basis as the price of
the underlying debt security fluctuates, making the long and short
positions in the futures contract more or less valuable (i.e.,
mark-to-market), which results in an unrealized gain or loss to the Funds.
The current market value of a traded futures contract is the last sale
price or, in the absence of a last sale price, the last offering price or,
in the absence of either of these prices, fair value is determined
according to procedures established by the Funds' Board of Directors.

At any time prior to expiration of the futures contract, the Funds may
close the position by taking an opposite position which would operate to
terminate the position in the futures contract. A final determination of
maintenance margin is then made, additional cash is required to be paid by
or released to the Funds and the Funds realize a gain or loss.

The premium paid by the Fund for the purchase of a call or put option is
included in the Fund's Statement of Net Assets as an investment and
subsequently "marked to market" to reflect the current market value of the
option purchased. If an option which the Fund has purchased expires on its
stipulated expiration date, the Fund realizes a loss in the amount of the
cost of the option. If the Fund enters into a closing transaction, it
realizes a gain or loss, depending on whether the proceeds from the sale
are greater or less than the cost of the option. If the Fund exercises a
put option, it realizes a gain or loss from the sale of the underlying
security and the proceeds from such sale will be decreased by the premium
originally paid. If the Fund exercises a call option, the cost of the
security which the Fund purchases upon exercise will be increased by the
premium originally paid.

g) FEDERAL INCOME TAXES--For Federal income tax purposes, the Funds intend
to continue to qualify as regulated investment companies under Subchapter
M of the Internal Revenue Code by distributing substantially all of their
taxable income to their shareholders or otherwise complying with the
requirements for regulated investment companies. Accordingly, no provision
for Federal income taxes has been made.

h) FUND SHARE VALUATION AND DIVIDEND DISTRIBUTIONS TO SHAREHOLDERS--Orders
for the Fund's shares are executed in accordance with the investment
instructions of the contract owners. Dividend income is accrued as of the
ex-dividend date. Interest income and expenses are accrued on a daily
basis. The net asset value of the Fund's shares is determined as of the
close of each business day of the New York Stock Exchange (the Exchange).
Orders for the purchase of the Funds' shares received prior to the close
of the Exchange on any day on which the Fund is open for business are
priced at the per-share net asset value determined as of the close of the
Exchange. Orders received after the close of the Exchange, or on a day on
which the Exchange and/or the Fund is not open for business, are priced at
the per-share net asset value next determined.

Dividends are declared by the Funds' Board of Directors based upon the
investment performance of the respective Funds. The policy with respect to
the Hartford Bond Fund, Inc., Hartford Stock Fund, Inc., Hartford Advisers
Fund, Inc., Hartford Aggressive Growth Fund, Inc., Hartford Mortgage
Securities Fund, Inc., Hartford Index Fund, Inc., Hartford International
Opportunities Fund, Inc., and Hartford Dividend and Growth Fund, Inc., is
to distribute dividends from net investment income monthly and distribute
realized capital gains, if any, annually.

51
<PAGE>
HARTFORD MUTUAL FUNDS
NOTES TO FINANCIAL STATEMENTS -- (CONTINUED)
DECEMBER 31, 1994

The HVA Money Market Fund, Inc. and the Hartford U.S. Government Money
Market Fund, Inc. seek to maintain a stable net asset value per share of
$1.00 by declaring a daily dividend from net investment income, including
net short-term capital gains and losses, and by valuing their investments
using the amortized cost method. Dividends are distributed monthly.

The character of distributions made during the year from net investment
income or net realized gains may differ from their ultimate
characterization for federal income tax purposes. These differences are
primarily due to differing treatments for futures and foreign currency
transactions.

i) RESTRICTED SECURITIES--The following securities are restricted for sale
to qualified institutional investors.

<TABLE>
<CAPTION>
PAR ACQUISITION MARKET % OF
FUND SECURITY VALUE DATE COST VALUE NET ASSETS
- ---------- ------------------------------------ ------------- ---------- ------------- ------------- ----------
<S> <C> <C> <C> <C> <C> <C>
Stock Autotote Corp
5.500% due 8/15/01................ $ 16,000,000 8/13/93 $ 16,000,000 $ 11,190,128 1.0%
Advisers Autotote Corp
5.500% due 8/15/01................ $ 24,000,000 8/13/93 $ 24,000,000 $ 16,785,192 0.6%
</TABLE>

j) FOREIGN CURRENCY CONTRACTS--As of December 31, 1994, the Hartford
International Opportunities Fund, Inc. and the Hartford Aggressive Growth
Fund, Inc. have entered into forward foreign currency exchange contracts
that obligate the Funds to repurchase currencies at specified future
dates. The Funds enter into forward foreign currency contracts to manage
currency exchange rate risk.

Forward contracts involve elements of market risk in excess of the amount
reflected in the Statement of Net Assets. The Fund bears the risk of an
unfavorable change in the foreign exchange rate underlying the forward
contract.

3. EXPENSES:

a) INVESTMENT MANAGEMENT AND ADVISORY AGREEMENTS--The Hartford Investment
Management Company (HIMCO), a wholly-owned subsidiary of Hartford Life
Insurance Company (HL) provides investment management and supervision for
Hartford Stock Fund, Inc., Hartford Advisers Fund, Inc., Hartford
Aggressive Growth Fund, Inc., Hartford International Opportunities Fund,
Inc., and Hartford Dividend and Growth Fund, Inc., pursuant to an
Investment Management Agreement, which was approved by each Fund's Board
of Directors and shareholders.

HIMCO also serves as investment adviser to Hartford Bond Fund Inc., HVA
Money Market Fund, Inc., Hartford U.S. Government Money Market Fund, Inc.,
Hartford Mortgage Securities Fund, Inc., and Hartford Index Fund, Inc.
pursuant to an Agreement, which was approved by each Fund's Board of
Directors and shareholders. The annual fees paid to HIMCO are .25% of the
average daily net assets for the HVA Money Market Fund, Inc., Hartford
U.S. Government Money Market Fund, Inc. and Hartford Mortgage Securities
Fund, Inc., and .20% of the average daily net assets for the Hartford
Index Fund, Inc.

The schedule below reflects the rates of compensation paid to HIMCO for
services rendered:

SCHEDULE A
<TABLE>
<CAPTION>
HARTFORD BOND FUND, INC.
AND HARTFORD STOCK FUND, INC.

AVERAGE DAILY NET ASSETS ANNUAL FEE
- ------------------------------------ ------------
<S> <C>
On first $250 million .325%
On next $250 million .300
On next $500 million .275
Over $1 billion .250

<CAPTION>
HARTFORD ADVISERS FUND, INC.,
HARTFORD AGGRESSIVE GROWTH FUND, INC.,
HARTFORD INTERNATIONAL OPPORTUNITIES FUND, INC.
AND HARTFORD DIVIDEND AND GROWTH FUND, INC.

AVERAGE DAILY NET ASSETS ANNUAL FEE
- ------------------------------------ ------------
<S> <C>
On first $250 million .575%
On next $250 million .525
On next $500 million .475
Over $1 billion .425
</TABLE>

52
<PAGE>
Wellington Management Company (Wellington), under a Sub-Investment
Advisory Agreement with HIMCO, furnishes an investment program to HIMCO,
for utilization by HIMCO in rendering services to the Hartford Stock Fund,
Inc., Hartford Advisers Fund, Inc., Hartford Aggressive Growth Fund, Inc.,
Hartford International Opportunities Fund, Inc. and Hartford Dividend and
Growth Fund, Inc. Wellington determines the purchase and sale of portfolio
securities and places such orders for execution, in the name of the
respective Fund. In conjunction with such activities, Wellington regularly
furnishes reports to the Funds' Board of Directors concerning economics
forecasts, investment strategy, portfolio activity and performance of the
Funds.

Effective August 1, 1993, both Wellington and HIMCO agreed to voluntarily
waive a portion of their respectively, sub-investment and investment
advisory fees for the Hartford Stock Fund, Inc., Hartford Aggressive
Growth Fund, Inc., and Hartford Advisers Fund, Inc. Pursuant to this
waiver, HIMCO charged investment advisory fees at the following rates from
August 1, 1993 to April 30, 1994.

SCHEDULE B

<TABLE>
<CAPTION>
AGGRESSIVE
ASSET LEVEL STOCK ADVISERS GROWTH
- --------------------------------------------- --------- --------- ----------
<S> <C> <C> <C>
$0-$50 Million .325% .500% .475%
$50-$150 Million .300% .525% .475%
$150-$250 Million .300% .525% .525%
$250-$500 Million .275% .475% .475%
$500-$1,000 Million .275% .425% .475%
Over $1,000 Million .250% .375% .425%
</TABLE>

An amended investment advisory agreement with Wellington was approved by
the shareholders at the April 26, 1994 Shareholders' Meeting. As a result,
this voluntary waiver by Wellington and HIMCO was discontinued. Effective
May 1, 1994, compensation paid to HIMCO for the Hartford Stock Fund, Inc.,
Hartford Advisers Fund, Inc. and Hartford Aggressive Growth Fund, Inc.,
reflect rates as shown in Schedule A.

b) ADMINISTRATIVE SERVICES AGREEMENT--Under the Administrative Services
Agreement between HL and each of the Funds, HL provides administrative
services to the Funds and receives monthly compensation at the annual rate
of .175% of each Fund's average daily net assets. The Funds assume and pay
certain other expenses (including, but not limited to, shareholder
accounting, state taxes and directors' fees). Directors' fees represent
remuneration paid or accrued to directors not affiliated with HL or any
other related company.

c) OPERATING EXPENSES--Allocable expenses of the Funds are charged to each
fund based on the ratio of the net assets of each fund to the combined net
assets of the Funds. Nonallocable expenses are charged to each fund based
on specific identification.

4. UNREALIZED APPRECIATION (DEPRECIATION) ON INVESTMENTS:

The aggregate gross unrealized appreciation on all investments (including
foreign currency and futures contracts) where there was an excess of value
over tax cost, the aggregate gross unrealized depreciation of investments
where there was an excess of tax cost over value and the net unrealized
appreciation (depreciation) on investments as of December 31, 1994 were as
follows:

<TABLE>
<CAPTION>
AGGREGATE AGGREGATE NET
GROSS GROSS UNREALIZED
UNREALIZED UNREALIZED APPRECIATION
APPRECIATION (DEPRECIATION) (DEPRECIATION)
------------- -------------- -------------
<S> <C> <C> <C>
Hartford Bond Fund, Inc. $ 71,603 $ (7,441,971) $ (7,370,368)
Hartford Stock Fund, Inc. 94,491,939 (63,837,924) 30,654,015
Hartford Advisers Fund, Inc. 117,279,290 (175,292,846) (58,013,556)
Hartford Aggressive Growth Fund, Inc. 123,755,630 (95,783,854) 27,971,776
Hartford Mortgage Securities Fund, Inc. 361,305 (14,266,234) (13,904,929)
Hartford Index Fund, Inc. 21,943,508 (5,252,094) 16,691,414
Hartford International Opportunities
Fund, Inc. 33,988,197 (18,913,584) 15,074,613
Hartford Dividend and Growth Fund, Inc. 1,362,228 (2,262,696) (900,468)
</TABLE>

53
<PAGE>
HARTFORD MUTUAL FUNDS
NOTES TO FINANCIAL STATEMENTS -- (CONTINUED)
DECEMBER 31, 1994

5. EQUITY OF AFFILIATES:

a) HARTFORD INDEX FUND, INC.--Hartford Life Insurance Company redeemed
ownership of 4,000,000 shares of Hartford Index Fund, Inc. on September
27, 1994, realizing a gain of $2,141,120. Hartford Life & Accident
Insurance Company redeemed ownership of 1,000,000 shares of Hartford Index
Fund, Inc. on September 27, 1994, realizing a gain of $535,280.

b) HARTFORD INTERNATIONAL OPPORTUNITIES FUND, INC.--Hartford Life Insurance
Company redeemed ownership of 5,000,000 shares of Hartford International
Opportunities Fund, Inc. on September 27, 1994, realizing a gain of
$1,057,500.

c) HARTFORD DIVIDEND AND GROWTH FUND, INC.--Hartford Accident & Indemnity
Insurance Company has ownership of 3,000,000 shares of Hartford Dividend
and Growth Fund, Inc. representing 5.4% of the total outstanding shares of
the Fund as of December 31, 1994.

d) At December 31, 1994, certain Hartford Life Insurance Company group
pension contracts held direct interest in shares as follows:

<TABLE>
<CAPTION>
PERCENT OF
TOTAL
SHARES SHARES
------------ -----------
<S> <C> <C>
Hartford Stock Fund, Inc.......................................................................... 65,899 0.02%
Hartford Advisers Fund, Inc....................................................................... 10,709,364 0.56%
Hartford Aggressive Growth Fund, Inc.............................................................. 5,313,800 1.31%
Hartford Mortgage Securities Fund, Inc............................................................ 16,249,689 5.26%
Hartford Index Fund, Inc.......................................................................... 9,462,900 9.14%
Hartford International Opportunities Fund, Inc.................................................... 5,547,408 1.16%
</TABLE>

6. CAPITAL GAINS DISTRIBUTION:

The Board of Directors declared a distribution from capital gains as follows
in the respective Funds.

<TABLE>
<CAPTION>
RECORD DATE PAYABLE DATE PER SHARE AMOUNT
------------------- ------------------- -----------------
<S> <C> <C> <C>
Hartford Stock Fund, Inc........................................ January 30, 1995 January 31, 1995 0.114069
Hartford Advisers Fund, Inc..................................... January 30, 1995 January 31, 1995 0.019381
Hartford Aggressive Growth Fund, Inc............................ January 30, 1995 January 31, 1995 0.155213
Hartford Index Fund, Inc........................................ January 30, 1995 January 31, 1995 0.000628
Hartford International Opportunities Fund, Inc.................. January 30, 1995 January 31, 1995 0.010575
</TABLE>

7. INVESTMENT TRANSACTIONS:

Investment transactions (excluding short-term investments) for the year
ended December 31, 1994, were as follows:

<TABLE>
<CAPTION>
PURCHASES AT SALES AT
COST PROCEEDS
---------------- ----------------
<S> <C> <C>
Hartford Bond Fund, Inc................................................................. $ 822,255,121 $ 758,343,558
Hartford Stock Fund, Inc................................................................ 843,135,562 660,308,313
Hartford Advisers Fund, Inc............................................................. 2,476,480,871 1,647,452,947
Hartford Aggressive Growth Fund, Inc.................................................... 1,020,206,539 676,742,923
Hartford Mortgage Securities Fund, Inc.................................................. 1,207,167,185 1,169,995,777
Hartford Index Fund, Inc................................................................ 19,336,591 2,522,575
Hartford International Opportunities Fund, Inc.......................................... 461,869,753 195,952,437
Hartford Dividend & Growth Fund, Inc.................................................... 61,690,701 7,856,734
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