<PAGE>
Table of Contents
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PAGE
----
<S> <C>
Investment Review........................................... 3
Hartford Mutual Funds
Statements of Net Assets as of June 30, 1999:
The Hartford Money Market Fund.......................... 14
The Hartford Bond Income Strategy Fund.................. 16
The Hartford Advisers Fund.............................. 21
The Hartford Dividend and Growth Fund................... 24
The Hartford Stock Fund................................. 26
The Hartford Capital Appreciation Fund.................. 28
The Hartford Small Company Fund......................... 30
The Hartford International Opportunities Fund........... 32
The Hartford MidCap Fund................................ 35
The Hartford Growth and Income Fund..................... 37
The Hartford High Yield Fund............................ 39
The Hartford Global Leaders Fund........................ 43
Statement of Operations for the Six Months Ended June 30,
1999:................................................... 46
Statement of Changes in Net Assets for the Six Months
Ended June 30, 1999:.................................... 48
Statement of Changes in Net Assets for the Year Ended
December 31, 1998:...................................... 50
Notes to Financial Statements:............................ 52
Financial Highlights...................................... 68
</TABLE>
<PAGE>
THE [LOGO]
HARTFORD
1999
SEMI-ANNUAL REPORT
- Manager Discussions
- Financials
[LOGO]
<PAGE>
- ------------------------------------------------------------------------------
THE HARTFORD
SMALL COMPANY FUND
- ------------------------------------------------------------------------------
PORTFOLIO MANAGER
[PHOTO]
MARK S. WATERHOUSE
Vice President
Wellington Management Company, LLP
PERFORMANCE OVERVIEW
7/22/96 - 6/30/99
GROWTH OF A $10,000 INVESTMENT IN
CLASS A WHICH INCLUDES SALES CHARGE
<TABLE>
<S> <C>
SMALL COMPANY FUND
$9,450 starting value $17,250
RUSSELL 2000
$10,000 starting value $15,016
</TABLE>
- -------------------------------------------------------------------------------
RETURNS (INCEPTION 7/22/96)
<TABLE>
<CAPTION>
Non Sales Charge Adjusted Sales Charge Adjusted
------------------------- ---------------------
ANNUALIZED ANNUALIZED
YTD 1 YEAR(1) SINCE INCEPT.(1) 1 YEAR(2) SINCE INCEPT.(2)
<S> <C> <C> <C> <C> <C>
Small Co "A" 21.41% 22.98% 22.72% 16.22% 20.38%
Small Co "B" 21.01% 22.13% 21.92% 17.13% 21.22%
Small Co "C"* 21.04% 22.25% 21.96% 20.03% 21.54%
Russell 2000 9.28% 1.50% 14.83%
</TABLE>
- -------------------------------------------------------------------------------
THE CHART REPRESENTS A HYPOTHETICAL INVESTMENT IN THE SMALL COMPANY FUND. PAST
PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE VALUE OF SHARES WILL
FLUCTUATE SO THAT WHEN REDEEMED, SHARES MAY BE WORTH MORE OR LESS THAN THEIR
ORIGINAL COST.
(1) PERFORMANCE RESULTS DO NOT REFLECT SALES CHARGE.
(2) THE INITIAL INVESTMENT IN CLASS A, B AND C SHARES REFLECTS THE MAXIMUM SALES
CHARGE AND CDSC, RESPECTIVELY.
*CLASS C SHARES COMMENCED OPERATIONS ON 8/1/98. PERFORMANCE PRIOR TO 8/1/98
REFLECTS CLASS B PERFORMANCE LESS CLASS C EXPENSES.
A $10,000 INVESTMENT IN THE FUND'S CLASS B SHARES AT THE FUND'S INCEPTION ON
7/22/96 WOULD HAVE BEEN VALUED AT $17,906 ON 6/30/99 ($17,606 WITH A REDEMPTION
AT THE END OF THE PERIOD.)
A $10,000 INVESTMENT IN THE FUND'S CLASS C SHARES AT THE FUND'S INCEPTION ON
7/22/96 WOULD HAVE BEEN VALUED AT $17,923 ON 6/30/99 (WITH A REDEMPTION AT THE
END OF THE PERIOD THE VALUE WOULD REMAIN THE SAME BECAUSE THE CDSC PERIOD HAS
EXPIRED.)
Q. How Did The Fund Perform?
The Hartford Small Company Fund (Class A) returned 19.3% in the second
quarter bringing the return for the 6-month period ending June 30, 1999 to
21.4% versus a return of 8.6% for the Lipper Small Cap Average over the same
period.
Q. Why Did The Fund Perform This Way?
The tide has clearly turned for small-cap stocks. In the second quarter, the
Russell 2000 Index posted a 15.5% gain compared to an increase of 7.0% for
the S&P 500 Index. This type of relative outperformance was long overdue and
makes sense as the valuations for small cap stocks are very attractive and
the earnings growth forecasts remain strong. Within the small cap universe,
we focus on those companies within dynamic global industries trading at
attractive valuations which exhibit high earnings growth, margin expansion
potential, healthy balance sheets and strong management.
Q. What Is Your Outlook For The Rest Of 1999?
We are well positioned for the expected global economic recovery with
holdings in oil service, semiconductors and semiconductor equipment.
Currently, we are heavily weighted in technology due to market appreciation,
and we will be reducing this exposure. We will continue to look for stocks
one story at a time to uncover compelling opportunities as they presents
themselves.
<PAGE>
- ------------------------------------------------------------------------------
THE HARTFORD
CAPITAL APPRECIATION FUND
- ------------------------------------------------------------------------------
PORTFOLIO MANAGER
[PHOTO]
SAUL J. PANNELL, CFA
Senior Vice President and Partner
Wellington Management Company, LLP
PERFORMANCE OVERVIEW
7/22/96 - 6/30/99
GROWTH OF A $10,000 INVESTMENT
IN CLASS A WHICH INCLUDES
SALES CHARGE
<TABLE>
<S> <C>
CAPITAL APPRECIATION FUND
$9,450 starting value $26,496
S&P 500
$10,000 starting value $22,747
</TABLE>
- -------------------------------------------------------------------------------
RETURNS (INCEPTION 7/22/96)
<TABLE>
<CAPTION>
Non Sales Charge Adjusted Sales Charge Adjusted
------------------------- ---------------------
ANNUALIZED ANNUALIZED
YTD 1 YEAR(1) SINCE INCEPT.(1) 1 YEAR(2) SINCE INCEPT.(2)
<S> <C> <C> <C> <C> <C>
Cap Ap "A" 27.08% 24.58% 42.01% 17.73% 39.30%
Cap Ap "B" 26.69% 23.74% 41.08% 18.74% 40.55%
Cap Ap "C"* 26.60% 23.73% 41.07% 21.49% 40.59%
S&P 500 12.38% 22.77% 32.26%
</TABLE>
- -------------------------------------------------------------------------------
THE CHART REPRESENTS A HYPOTHETICAL INVESTMENT IN THE CAPITAL APPRECIATION FUND.
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE VALUE OF SHARES WILL
FLUCTUATE SO THAT WHEN REDEEMED, SHARES MAY BE WORTH MORE OR LESS THAN THEIR
ORIGINAL COST.
(1) PERFORMANCE RESULTS DO NOT REFLECT SALES CHARGE.
(2) THE INITIAL INVESTMENT IN CLASS A, B AND C SHARES REFLECTS THE MAXIMUM
SALES CHARGE AND CDSC, RESPECTIVELY.
*CLASS C SHARES COMMENCED OPERATIONS ON 8/1/98. PERFORMANCE PRIOR TO 8/1/98
REFLECTS CLASS B PERFORMANCE LESS CLASS C EXPENSES.
A $10,000 INVESTMENT IN THE FUND'S CLASS B SHARES AT THE FUND'S INCEPTION ON
7/22/96 WOULD HAVE BEEN VALUED AT $27,501 ON 6/30/99 ($27,201WITH A REDEMPTION
AT THE END OF THE PERIOD.)
A $10,000 INVESTMENT IN THE FUND'S CLASS C SHARES AT THE FUND'S INCEPTION ON
7/22/96 WOULD HAVE BEEN VALUED AT $27,499 ON 6/30/99 (WITH A REDEMPTION AT THE
END OF THE PERIOD THE VALUE WOULD REMAIN THE SAME BECAUSE THE CDSC PERIOD HAS
EXPIRED.)
Q. How Did The Fund Perform?
The Hartford Capital Appreciation Fund (Class A) returned 27.1% for the
6-month period ending June 30, 1999 versus a return of 13.7% for the Lipper
Capital Appreciation Average.
Q. Why Did The Fund Perform This Way?
The change in market sentiment that we have been anticipating finally took
hold during the quarter. We are seeing downward earnings revisions for larger
"quality growth" companies and a stabilization in interest rates. The
re-strengthening of the US dollar will make earnings progress for mega-cap
multinationals more difficult. These aggregate factors should result in
smaller, more domestically oriented companies outperforming larger companies.
Smaller companies' relative price-to-earnings and price-to-book ratios remain
significantly below the overall market's, while relative growth prospects are
probably better. The historic disparity in both relative performance and
valuations should lead to a further broadening of the market. We believe that
this trend will endure well beyond the most recent quarter, perhaps for
several years. The Fund's performance was helped by a diverse group of
companies, most of these in the mid-to-smaller capitalization range.
Q. What Is Your Outlook For The Rest Of 1999?
As we have argued for much of the past two years, the dichotomy in valuations
between large-cap, recognized growth on the one hand, and virtually
everything else on the other, has become extreme. It remains so, despite last
quarter's improvement. Our overall strategy for the Fund remains dual
faceted: an emphasis on smaller companies with dynamic earnings growth
prospects, and an opportunistic trading approach to larger-cap stocks where
we typically see a catalyst for outperformance. We have tended to roam off
the beaten path, historically where the most upside potential has been. This
approach should provide positive absolute and relative results over a
reasonable time frame. While the overall market outlook remains
controversial, macroeconomic and valuation factors would tend to endorse our
positioning.
<PAGE>
- ------------------------------------------------------------------------------
THE HARTFORD
MIDCAP FUND
- ------------------------------------------------------------------------------
PORTFOLIO MANAGER
[Photo]
PHILLIP H. PERELMUTER
Vice President
Wellington Management Company, LLP
PERFORMANCE OVERVIEW
12/30/97 - 6/30/99
GROWTH OF A $10,000 INVESTMENT IN
CLASS A WHICH INCLUDES SALES CHARGE
<TABLE>
<S> <C>
MIDCAP FUND
$9,450 starting value $14,359
S&P 400
$10,000 starting value $12,822
</TABLE>
- -------------------------------------------------------------------------------
RETURNS (INCEPTION 12/30/97)
<TABLE>
<CAPTION>
Non Sales Charge Adjusted Sales Charge Adjusted
------------------------- ---------------------
ANNUALIZED ANNUALIZED
YTD 1 YEAR(1) SINCE INCEPT.(1) 1 YEAR(2) SINCE INCEPT.(2)
<S> <C> <C> <C> <C> <C>
MidCap "A" 23.53% 32.35% 32.20% 25.07% 27.30%
MidCap "B" 23.11% 31.50% 31.33% 26.50% 28.99%
MidCap "C"* 23.12% 31.49% 31.32% 29.18% 30.44%
S&P 400 6.87% 17.18% 18.04%
</TABLE>
- -------------------------------------------------------------------------------
THE CHART REPRESENTS A HYPOTHETICAL INVESTMENT IN THE MIDCAP FUND. PAST
PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE VALUE OF SHARES WILL
FLUCTUATE SO THAT WHEN REDEEMED, SHARES MAY BE WORTH MORE OR LESS THAN THEIR
ORIGINAL COST.
(1) PERFORMANCE RESULTS DO NOT REFLECT SALES CHARGE.
(2) THE INITIAL INVESTMENT IN CLASS A, B AND C SHARES REFLECTS THE MAXIMUM
SALES CHARGE AND CDSC, RESPECTIVELY.
*CLASS C SHARES COMMENCED OPERATIONS ON 8/1/98. PERFORMANCE PRIOR TO 8/1/98
REFLECTS CLASS B PERFORMANCE LESS CLASS C EXPENSES. A $10,000 INVESTMENT IN THE
FUND'S CLASS B SHARES AT THE FUND'S INCEPTION ON 12/30/97 WOULD HAVE BEEN VALUED
AT $15,044 ON 6/30/99 ($14,644 WITH A REDEMPTION AT THE END OF THE PERIOD.)
A $10,000 INVESTMENT IN THE FUND'S CLASS C SHARES AT THE FUND'S INCEPTION ON
12/30/97 WOULD HAVE BEEN VALUED AT $15,043 ON 6/30/99 (WITH A REDEMPTION AT
THE END OF THE PERIOD THE VALUE WOULD REMAIN THE SAME BECAUSE THE CDSC PERIOD
HAS EXPIRED.)
Q. How Did The Fund Perform?
For the second quarter of 1999, The Hartford MidCap Fund (Class A) returned
16.3% bringing the total return through June 30 to 23.5% versus a return of
12.1% for the Lipper Mid Cap Average. For the 12-month and since inception
periods, the Fund has outperformed its peers and ranks in the first quartile
of its Lipper peer group.
Q. Why Did The Fund Perform This Way?
The Fund had good participation in the better performing sectors and was
generally underweighted in the poorer performing sectors. Mid-cap stocks
benefited from the broadening market with the S&P Mid Cap 400 Index rising
14.2% compared to the S&P 500 Index's 7.0% appreciation. Since the market's
low on October 8, 1998, mid-cap stocks have risen 51%. This return outpaces
that of large-cap stocks (S&P 500 index) at 43% and small-cap stocks (Russell
2000 index) at 48%. Within the mid-cap universe, the best performing areas
have been media, biotechnology, and technology. Some of the poorer performing
sectors have been banks, utilities, energy, and basic materials.
Q. What Is Your Outlook For The Rest Of 1999?
The Fund's strategy focuses on high quality, mid-cap companies on the "verge
of greatness." These companies have established critical mass, yet have the
potential to be much larger. The Fund consists of companies within our five
sectors of opportunity: consumer products, finance, health care, services,
and technology. These are the sectors that we believe will show faster
earnings growth than the overall market over the next 12-18 months. The
outlook for the type of mid-cap companies we seek is very good. These high
quality, market-leading companies should fare relatively well during a period
of accelerating economic growth while their relative valuation is near
10-year lows.
<PAGE>
- ------------------------------------------------------------------------------
THE HARTFORD
INTERNATIONAL OPPORTUNITIES FUND
- ------------------------------------------------------------------------------
PORTFOLIO MANAGER
[Photo]
Trond Skramstad
Senior Vice President and Partner
Wellington Management Company, LLP
PERFORMANCE OVERVIEW
7/22/96 - 6/30/99
GROWTH OF A $10,000 INVESTMENT IN
CLASS A WHICH INCLUDES SALES CHARGE
<TABLE>
<S> <C>
INTERNATIONAL OPPORTUNITIES
$9,450 starting value $14,983
EAFE GDP
$10,000 starting value $12,785
</TABLE>
- -------------------------------------------------------------------------------
RETURNS (INCEPTION 7/22/96)
<TABLE>
<CAPTION>
Non Sales Charge Adjusted Sales Charge Adjusted
------------------------- ---------------------
ANNUALIZED ANNUALIZED
YTD 1 YEAR(1) SINCE INCEPT.(1) 1 YEAR(2) SINCE INCEPT.(2)
<S> <C> <C> <C> <C> <C>
Int'l Opp "A" 10.24% 6.96% 10.83% 1.08% 8.71%
Int'l Opp "B" 9.80% 6.18% 10.07% 1.18% 9.22%
Int'l Opp "C"* 9.81% 6.23% 10.09% 4.17% 9.72%
EAFE GDP** 5.65% 9.84% 14.75%
</TABLE>
- -------------------------------------------------------------------------------
THE CHART REPRESENTS A HYPOTHETICAL INVESTMENT IN THE INTERNATIONAL
OPPORTUNITIES FUND. PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE
VALUE OF SHARES WILL FLUCTUATE SO THAT WHEN REDEEMED, SHARES MAY BE WORTH
MORE OR LESS THAN THEIR ORIGINAL COST.
(1) PERFORMANCE RESULTS DO NOT REFLECT SALES CHARGE.
(2) THE INITIAL INVESTMENT IN CLASS A, B AND C SHARES REFLECTS THE MAXIMUM
SALES CHARGE AND CDSC, RESPECTIVELY.
*CLASS C SHARES COMMENCED OPERATIONS ON 8/1/98. PERFORMANCE PRIOR TO 8/1/98
REFLECTS CLASS B PERFORMANCE LESS CLASS C EXPENSES.
A $10,000 INVESTMENT IN THE FUND'S CLASS B SHARES AT THE FUND'S INCEPTION ON
7/22/96 WOULD HAVE BEEN VALUED AT $13,259 ON 6/30/99 ($12,959 WITH A
REDEMPTION AT THE END OF THE PERIOD.)
A $10,000 INVESTMENT IN THE FUND'S CLASS C SHARES AT THE FUND'S INCEPTION ON
7/22/96 WOULD HAVE BEEN VALUED AT $13,266 ON 6/30/99 (WITH A REDEMPTION AT
THE END OF THE PERIOD THE VALUE WOULD REMAIN THE SAME BECAUSE THE CDSC PERIOD
HAS EXPIRED.)
** THE MORGAN STANLEY EUROPE AUSTRALIA FAR EAST GDP - NET INDEX THE HARTFORD
Q. How Did The Fund Perform?
In the second quarter, The Hartford International Opportunities Fund (Class
A) returned 4.0% bringing the return for the 6-month period ending June 30,
1999 to 10.2% versus a return of 7.4% for the Lipper International Average
over the same time period.
Q. Why Did The Fund Perform This Way?
Most equity markets posted positive returns on the back of stronger than
expected world growth and continued recovery in the world's "crisis stricken"
economies. This led to further sharp rises in emerging and Asian markets as
well as Japan. Europe, on the other hand, was held back by a further decline
in the euro. Sluggish growth and concerns about the new European Central Bank
have dampened investor enthusiasm for the region. From a sector point of
view, information technology and materials stocks outperformed while health
care and finance underperformed.
Q. What Is Your Outlook For The Rest Of 1999?
We will continue to increase holdings in economically sensitive stocks in
anticipation of accelerating global growth later this year. Sector exposure
will be used on an opportunistic basis; we will shift the Fund toward sectors
which will benefit most from increasing economic growth. For example, we have
been increasing the weighting in the materials sector while reducing the
weight in selected growth sectors. Within Europe, we have been reducing our
weighting in the UK in favor of Continental Europe, which is likely to
benefit more from stronger global growth than the UK. Finally, we have been
adding to Japan as the good news has finally begun to outweigh the bad news.
In general, we look to shift to more cyclically oriented sectors and markets
on the back of improving global growth.
<PAGE>
- ------------------------------------------------------------------------------
THE HARTFORD
GLOBAL LEADERS FUND
- ------------------------------------------------------------------------------
PORTFOLIO MANAGERS
[Photo]
RAND L. ALEXANDER, CFA
Senior Vice President
and Partner [PHOTO]
Wellington Management
Company, LLP
ANDREW S. OFFIT
[PHOTO] Vice President
Wellington Management Company, LLP
PERFORMANCE OVERVIEW
9/30/98 - 6/30/99
GROWTH OF A $10,000 INVESTMENT IN
CLASS A WHICH INCLUDES SALES CHARGE
<TABLE>
<S> <C>
GLOBAL LEADERS FUND
$9,450 starting value $13,876
MSCI WORLD
$10,000 starting value $13,146
</TABLE>
- -------------------------------------------------------------------------------
RETURNS (INCEPTION 9/30/98)
<TABLE>
<CAPTION>
Non Sales Charge Adjusted Sales Charge Adjusted
------------------------- ---------------------
CUMULATIVE CUMULATIVE
YTD SINCE INCEPT.(1) SINCE INCEPT.(2)
<S> <C> <C> <C>
Global Leaders "A" 12.64% 46.84% 38.76%
Global Leaders "B" 12.18% 46.02% 41.02%
Global Leaders "C"* 12.26% 46.13% 43.67%
MSCI World** 8.51% 31.46%
</TABLE>
- -------------------------------------------------------------------------------
THE CHART REPRESENTS A HYPOTHETICAL INVESTMENT IN THE GLOBAL LEADERS FUND.
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE VALUE OF SHARES WILL
FLUCTUATE SO THAT WHEN REDEEMED, SHARES MAY BE WORTH MORE OR LESS THAN THEIR
ORIGINAL COST.
(1) PERFORMANCE RESULTS DO NOT REFLECT SALES CHARGE.
(2) THE INITIAL INVESTMENT IN CLASS A, B AND C SHARES REFLECTS THE MAXIMUM
SALES CHARGE AND CDSC, RESPECTIVELY.
A $10,000 INVESTMENT IN THE FUND'S CLASS B SHARES AT THE FUND'S INCEPTION ON
9/30/98 WOULD HAVE BEEN VALUED AT $14,602 ON 6/30/99 ($14,102 WITH A
REDEMPTION AT THE END OF THE PERIOD.)
A $10,000 INVESTMENT IN THE FUND'S CLASS C SHARES AT THE FUND'S INCEPTION ON
9/30/98 WOULD HAVE BEEN VALUED AT $14,613 ON 6/30/99 ($14,513 WITH A
REDEMPTION AT THE END OF THE PERIOD.)
** THE MORGAN STANLEY WORLD INDEX
Q. How Did The Fund Perform?
For the quarter ended June 30, 1999, The Hartford Global Leaders Fund (Class
A) returned 5.3%, underperforming the Lipper Global Average. Since inception
(9/30/98), the Fund has returned 46.8%, well above the 31.3% return of its
Lipper peer group.
Q. Why Did The Fund Perform This Way?
World growth increased due to worldwide interest rate cuts and the revival of
Asia and Japan. By mid-April, the markets began to respond to the good news.
Rising commodity prices drove the returns of the materials and industrial
sectors. The large weight in health care and small exposure to materials
stocks limited Fund performance. Health care stocks have been tremendous
performers over the last five years but with the impending Medicare plan in
the United States and earnings disappointments for some major players, the
sector was the worst performing in the quarter. The materials sector, which
includes commodity-based and cyclical stocks, rebounded following a long
period of underperformance. The biggest positive influence on performance for
the quarter was the overweight in technology, which continues to benefit from
both the cyclical rebound and the secular need for more hardware and software
as we enter the 21st century.
Q. What Is Your Outlook For The Rest Of 1999?
The next six months will likely prove both interesting and challenging for
global investors. Following the Asia meltdown, financial markets were greeted
with over 100 interest rate cuts around the globe aimed at restoring
stability, confidence and growth. Growth is now increasing and interest rates
are rising, yet financial markets continue to hit all time highs. Secondly,
while much time, effort and money has been spent to ensure a smooth
transition at the turn of the century, nothing is certain. At best, there
will most likely be a temporary slowdown in corporate activity as we approach
Y2K. We continue to adhere to our themes, focusing on long-term growth
sectors, and keeping a watchful eye on valuation. Global leaders, by their
very nature, have superior products, market share and management. Over the
long-term, as we continue to identify the winning sectors and companies, the
Fund should succeed.
<PAGE>
- ------------------------------------------------------------------------------
THE HARTFORD
STOCK FUND
- ------------------------------------------------------------------------------
PORTFOLIO MANAGER
[Photo]
RAND L. ALEXANDER, CFA
Senior Vice President and Partner
Wellington Management Company, LLP
PERFORMANCE OVERVIEW
7/22/96 - 6/30/99
GROWTH OF A $10,000 INVESTMENT IN
CLASS A WHICH INCLUDES SALES CHARGE
<TABLE>
<S> <C>
Stock Fund
$9,450 starting value $22,747
S&P 500
$10,000 starting value $21,691
</TABLE>
- ------------------------------------------------------------------------------
RETURNS (INCEPTION 7/22/96)
<TABLE>
<CAPTION>
Non Sales Charge Adjusted Sales Charge Adjusted
------------------------- ---------------------
ANNUALIZED ANNUALIZED
YTD 1 YEAR(1) SINCE INCEPT.(1) 1 YEAR(2) SINCE INCEPT.(2)
<S> <C> <C> <C> <C> <C>
Stock "A" 14.82% 23.98% 32.66% 17.16% 30.14%
Stock "B" 14.46% 23.15% 31.75% 18.15% 31.15%
Stock "C"* 14.40% 23.03% 31.71% 20.80% 31.26%
S&P 500 12.38% 22.77% 32.26%
</TABLE>
- ------------------------------------------------------------------------------
THE CHART REPRESENTS A HYPOTHETICAL INVESTMENT IN THE STOCK FUND. PAST
PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE VALUE OF SHARES WILL
FLUCTUATE SO THAT WHEN REDEEMED, SHARES MAY BE WORTH MORE OR LESS THAN THEIR
ORIGINAL COST.
(1) PERFORMANCE RESULTS DO NOT REFLECT SALES CHARGE.
(2) THE INITIAL INVESTMENT IN CLASS A, B AND C SHARES REFLECTS THE MAXIMUM
SALES CHARGE AND CDSC, RESPECTIVELY.
*CLASS C SHARES COMMENCED OPERATIONS ON 8/1/98. PERFORMANCE PRIOR TO 8/1/98
REFLECTS CLASS B PERFORMANCE LESS CLASS C EXPENSES.
A $10,000 INVESTMENT IN THE FUND'S CLASS B SHARES AT THE FUND'S INCEPTION ON
7/22/96 WOULD HAVE BEEN VALUED AT $22,492 ON 6/30/99 ($22,192 WITH A
REDEMPTION AT THE END OF THE PERIOD.)
A $10,000 INVESTMENT IN THE FUND'S CLASS C SHARES AT THE FUND'S INCEPTION ON
7/22/96 WOULD HAVE BEEN VALUED AT $22,470 ON 6/30/99 (WITH A REDEMPTION AT
THE END OF THE PERIOD THE VALUE WOULD REMAIN THE SAME BECAUSE THE CDSC PERIOD
HAS EXPIRED.)
Q. How Did The Fund Perform?
The Hartford Stock Fund (Class A) returned 14.8% for the 6-month period ended
June 30, 1999. The Fund's return exceeded the returns of the S&P 500 Index
(12.4%) and the Lipper Growth Average (11.6%). Since inception, the Fund has
returned 32.7% outperforming its Lipper peer universe which was up 26.2% over
the same time period.
Q. Why Did The Fund Perform This Way?
The US equity markets demonstrated remarkable resilience during the second
quarter of 1999. Shrugging off a Federal Reserve increase in short-term
interest rates, chaotic conditions in Kosovo, rising commodity prices, and
falling bond prices, investors instead focused on the continuing strength of
the US economy and improving global economic growth. Favorable US equity
market performance has broadened with smaller-caps doing better than
larger-caps, cyclicals outperforming non-cyclicals, and value outpacing
growth. Strong sectors include basic materials, communications equipment,
machinery, computers, and office equipment, energy, and telephones. Weak
groups included household products, drugs and health services, media, and
automotive. The Fund's performance was helped by overweight positions in
basic materials, energy and technology and by our increasing commitment to
industrial and commercial stocks.
Q. What Is Your Outlook For The Rest Of 1999?
With low inflation, strong economic growth, rising corporate earnings, a
budget surplus, and low unemployment, the US economic backdrop remains
favorable for stocks. The one dark cloud on the horizon is rising interest
rates, but that does not appear to be enough to blot out the optimism that
has characterized the US equity market over the last several years, at least
for now. Nonetheless, the interest rate situation merits close scrutiny.
Since 1982, interest rates have been in a secular decline, favoring the
equity investor. We remain cautiously optimistic about the equity market.
<PAGE>
- ------------------------------------------------------------------------------
THE HARTFORD
GROWTH AND INCOME FUND
- ------------------------------------------------------------------------------
PORTFOLIO MANAGER
[PHOTO]
JAMES A. RULLO, CFA
Senior Vice President and Partner
Wellington Management Company, LLP
PERFORMANCE OVERVIEW
4/30/98 - 6/30/99
GROWTH OF A $10,000 INVESTMENT IN
CLASS A WHICH INCLUDES SALES CHARGE
<TABLE>
<S> <C>
GROWTH AND INCOME FUND
$9,450 starting value $12,555
S&P 500
$10,000 starting value $12,144
</TABLE>
- ------------------------------------------------------------------------------
RETURNS (INCEPTION 4/30/98)
<TABLE>
<CAPTION>
Non Sales Charge Adjusted Sales Charge Adjusted
------------------------- ---------------------
ANNUALIZED ANNUALIZED
YTD YEAR(1) SINCE INCEPT.(1) 1 YEAR(2) SINCE INCEPT.(2)
<S> <C> <C> <C> <C> <C>
Grow & Inc "A" 11.96% 26.62% 23.98% 19.66% 18.12%
Grow & Inc "B" 11.66% 25.76% 23.16% 20.76% 19.84%
Grow & Inc "C"* 11.64% 25.81% 23.20% 23.55% 22.14%
S&P 500 12.38% 22.77% 21.58% 21.54%
Russell 2000 9.28% 1.50% 14.83%
</TABLE>
- ------------------------------------------------------------------------------
THE CHART REPRESENTS A HYPOTHETICAL INVESTMENT IN THE GROWTH & INCOME FUND.
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE VALUE OF SHARES WILL
FLUCTUATE SO THAT WHEN REDEEMED, SHARES MAY BE WORTH MORE OR LESS THAN THEIR
ORIGINAL COST.
(1) PERFORMANCE RESULTS DO NOT REFLECT SALES CHARGE.
(2) THE INITIAL INVESTMENT IN CLASS A, B AND C SHARES REFLECTS THE MAXIMUM
SALES CHARGE AND CDSC, RESPECTIVELY.
*CLASS C SHARES COMMENCED OPERATIONS ON 8/1/98. PERFORMANCE PRIOR TO 8/1/98
REFLECTS CLASS B PERFORMANCE LESS CLASS C EXPENSES.
A $10,000 INVESTMENT IN THE FUND'S CLASS B SHARES AT THE FUND'S INCEPTION ON
4/30/98 WOULD HAVE BEEN VALUED AT $12,752 ON 6/30/99 ($12,352 WITH A
REDEMPTION AT THE END OF THE PERIOD.)
A $10,000 INVESTMENT IN THE FUND'S CLASS C SHARES AT THE FUND'S INCEPTION ON
4/30/98 WOULD HAVE BEEN VALUED AT $12,757 ON 6/30/99 (WITH A REDEMPTION AT
THE END OF THE PERIOD THE VALUE WOULD REMAIN THE SAME BECAUSE THE CDSC PERIOD
HAS EXPIRED.)
Q. How Did The Fund Perform?
For the second quarter of 1999, The Hartford Growth and Income Fund (Class A)
returned 7.4%. Through June 30, 1999 the Fund was up 12.0%. Over the past
year, the Fund has returned 26.6%, well ahead of the 14.5% return of the
Lipper Growth and Income Average.
Q. Why Did The Fund Perform This Way?
The S&P 500 Index continues to perform well, up over 12% for the 6-month
period ended June 30, 1999. While mega-cap growth stocks fueled the market
rise in 1998, value plays have made a comeback in the first 6 months of 1999.
Although "value" has prevailed, many of the Fund's best returning stocks were
in the growth-oriented technology sector. Top performing holdings in this
segment included ANALOG DEVICES and HEWLETT-PACKARD, which posted above
consensus earnings. Similarly, IBM beat the highest "Street" estimate.
Cyclical stocks recovered as investors move to economically sensitive
industries. As energy prices rebounded, companies leveraged to natural gas
prices, such as UNION PACIFIC RESOURCES, also recovered. Regional Bells
rebounded as analysts started to believe that competition for long distance
services would be a positive. BELL ATLANTIC, which has dominant market share
in the local phone service in the Northeast, was up sharply. Proposed merger
partners AMERITECH and SBC COMMUNICATIONS should also benefit from this
development.
Q. What Is Your Outlook For The Rest Of 1999?
In light of healthy economic growth, we expect corporate earnings to rise by
10% this year. The focus of the Fund is to seek superior stocks that we
believe will benefit from stronger global economic growth. We continue to
view the secular move in technology as a long-term positive. Drug stocks
continue to look expensive, but we will look to increase our weighting as
opportunities present themselves.
<PAGE>
- ------------------------------------------------------------------------------
THE HARTFORD
DIVIDEND AND GROWTH FUND
- ------------------------------------------------------------------------------
PORTFOLIO MANAGER
[Photo]
LAURIE A. GABRIEL, CFA
Senior Vice President and Partner
Wellington Management Company, LLP
PERFORMANCE OVERVIEW
7/22/96 - 6/30/99
GROWTH OF A $10,000 INVESTMENT IN
CLASS A WHICH INCLUDES SALES CHARGE
<TABLE>
<CAPTION>
<S> <C>
DIVIDEND AND GROWTH FUND
$9,450 starting value $22,747
S&P 500
$10,000 starting value $17,457
</TABLE>
- -------------------------------------------------------------------------------
RETURNS (INCEPTION 7/22/96)
<TABLE>
<CAPTION>
Non Sales Charge Adjusted Sales Charge Adjusted
------------------------- ---------------------
ANNUALIZED ANNUALIZED
YTD 1 YEAR(1) SINCE INCEPT.(1) 1 YEAR(2) SINCE INCEPT.(2)
<S> <C> <C> <C> <C> <C>
Div & Grow "A" 6.85% 11.39% 23.22% 5.26% 20.87%
Div & Grow "B" 6.54% 10.61% 22.36% 5.61% 21.67%
Div & Grow "C"* 6.48% 10.63% 22.37% 8.52% 21.96%
S&P 500 12.38% 22.77% 32.26%
</TABLE>
- -------------------------------------------------------------------------------
THE CHART REPRESENTS A HYPOTHETICAL INVESTMENT IN THE DIVIDEND AND GROWTH
FUND. PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE VALUE OF SHARES
WILL FLUCTUATE SO THAT WHEN REDEEMED, SHARES MAY BE WORTH MORE OR LESS THAN
THEIR ORIGINAL COST.
(1) PERFORMANCE RESULTS DO NOT REFLECT SALES CHARGE.
(2) THE INITIAL INVESTMENT IN CLASS A, B AND C SHARES REFLECTS THE MAXIMUM
SALES CHARGE AND CDSC, RESPECTIVELY.
*CLASS C SHARES COMMENCED OPERATIONS ON 8/1/98. PERFORMANCE PRIOR TO 8/1/98
REFLECTS CLASS B PERFORMANCE LESS CLASS C EXPENSES.
A $10,000 INVESTMENT IN THE FUND'S CLASS B SHARES AT THE FUND'S INCEPTION ON
7/22/96 WOULD HAVE BEEN VALUED AT $18,098 ON 6/30/98 ($17,798 WITH A
REDEMPTION AT THE END OF THE PERIOD.)
A $10,000 INVESTMENT IN THE FUND'S CLASS C SHARES AT THE FUND'S INCEPTION ON
7/22/96 WOULD HAVE BEEN VALUED AT $18,104 ON 6/30/99 (WITH A REDEMPTION AT
THE END OF THE PERIOD THE VALUE WOULD REMAIN THE SAME BECAUSE THE CDSC PERIOD
HAS EXPIRED.)
Q. How Did The Fund Perform?
For the 6 months ending June 30, 1999, The Hartford Dividend and Growth Fund
(Class A) lagged the returns of the Lipper Equity Income Average, returning
6.9% versus the peer group's 9.0% return. For longer time periods, the fund
has outperformed its peers and ranks within the first quartile of its Lipper
peer group.
Q. Why Did The Fund Perform This Way?
In line with our dividend-oriented, value style, we continue to be
underweighted in the information technology sector. Despite some solid
performers, this underweight relative to the market was a source of
underperformance. Over the most recent quarter, our greatest source of
outperformance came in the Consumer Staples sector. Kimberly Clark has been
surpassing street expectations through strong earnings improvements in the
tissue and personal care businesses. Hershey Foods is a true turnaround story
with a strong management team focused on shareholder returns. The Materials
sector was another source of positive contribution due to the shift in market
sentiment toward cyclical stocks. Holdings in this sector include Alcoa, BOC
Group, and Witco Chemical. Among our top holdings are Bell Atlantic whose
pending acquisition of GTE should both be approved by the FCC and completed
in the next several months. The company continues to have good growth
prospects, fueled by strong underlying demand and by merger-related cost
savings.
Q. What Is Your Outlook For The Rest Of 1999?
We expect further modest increases in interest rates over the next 18 months
to slow the growth rate of the US economy. However, small interest rate hikes
should not negatively affect the capital markets. We expect consumer income
and spending to continue to grow but at a more modest pace than in previous
months. We have increased our earnings growth expectations to 9% for 1999.
Broad diversification across economic sectors is an ongoing part of the
Fund's investment strategy. Since the focus of our investment approach is
stock selection, the sector representation will be fairly stable over time.
In keeping with the Fund's charter, the holdings have an above-average yield
and below average P/E and beta. Relative to the market, the Fund should
continue to exhibit these value-oriented characteristics over time.
<PAGE>
- ------------------------------------------------------------------------------
THE HARTFORD
ADVISERS FUND
- ------------------------------------------------------------------------------
PORTFOLIO MANAGERS
[PHOTO]
RAND L. ALEXANDER, CFA
Senior Vice President
and Partner [PHOTO]
Wellington Management
Company, LLP
PAUL D. KAPLAN
[PHOTO] Senior Vice President
and Partner
Wellington Management
Company, LLP
PERFORMANCE OVERVIEW
7/22/96 - 6/30/99
GROWTH OF A $10,000 INVESTMENT IN
CLASS A WHICH INCLUDES SALES CHARGE
<TABLE>
<S> <C>
Advisers Fund
$9,450 starting value $16,934
S&P 500
$10,000 $22,747
Lehman Govt/Corp
$10,000 $12,334
</TABLE>
- -------------------------------------------------------------------------------
RETURNS (INCEPTION 7/22/96)
<TABLE>
<CAPTION>
Non Sales Charge Adjusted Sales Charge Adjusted
------------------------- ---------------------
ANNUALIZED ANNUALIZED
YTD 1 YEAR(1) SINCE INCEPT.(1) 1 YEAR(2) SINCE INCEPT.(2)
<S> <C> <C> <C> <C> <C>
Advisers "A" 7.58% 14.36% 21.95% 8.07% 19.62%
Advisers "B" 7.13% 13.54% 21.10% 8.54% 20.39%
Advisers "C"* 7.15% 13.45% 21.07% 11.32% 20.66%
Lehman G/C -2.28% 2.70% 7.40%
S&P 500 12.38% 22.77% 32.26%
</TABLE>
- -------------------------------------------------------------------------------
THE CHART REPRESENTS A HYPOTHETICAL INVESTMENT IN THE ADVISERS FUND. PAST
PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE VALUE OF SHARES WILL
FLUCTUATE SO THAT WHEN REDEEMED, SHARES MAY BE WORTH MORE OR LESS THAN THEIR
ORIGINAL COST.
(1) PERFORMANCE RESULTS DO NOT REFLECT SALES CHARGE.
(2) THE INITIAL INVESTMENT IN CLASS A, B AND C SHARES REFLECTS THE MAXIMUM
SALES CHARGE AND CDSC, RESPECTIVELY.
*CLASS C SHARES COMMENCED OPERATIONS ON 8/1/98. PERFORMANCE PRIOR TO 8/1/98
REFLECTS CLASS B PERFORMANCE LESS CLASS C EXPENSES.
A $10,000 INVESTMENT IN THE FUND'S CLASS B SHARES AT THE FUND'S INCEPTION ON
7/22/96 WOULD HAVE BEEN VALUED AT $17,556 ON 6/30/99 ($17,256 WITH A
REDEMPTION AT THE END OF THE PERIOD.)
A $10,000 INVESTMENT IN THE FUND'S CLASS C SHARES AT THE FUND'S INCEPTION ON
7/22/96 WOULD HAVE BEEN VALUED AT $17,543 ON 6/30/99 (WITH A REDEMPTION AT
THE END OF THE PERIOD THE VALUE WOULD REMAIN THE SAME BECAUSE THE CDSC PERIOD
HAS EXPIRED.)
Q. How Did The Fund Perform?
The Hartford Advisers Fund (Class A) outperformed its Lipper peer group for
the 6 months ending June 30, 1999. The Fund had a total return of 7.6% versus
6.2% for the Lipper Flexible Portfolio Average. Since inception, the Fund has
returned 22.0% versus a return of 17.5% for its peer group.
Q. Why Did The Fund Perform This Way?
By gradually adjusting the weighting between stocks, bonds, and cash we were
able to use our expectations of market developments to produce attractive
returns. Although the economic environment continues to be supportive of
stocks, we reduced our equity exposure in response to higher equity
valuations and remain sensitive to the possible negative effects on the stock
market which might result from higher interest rates. At the beginning of
1999, the pattern of bond yields reflected expectations for lower short-term
interest rates. The subsequent change in outlook has had a substantial effect
on the bond market, causing yields to move noticeably higher over the course
of the year.
Q. What Is Your Outlook For The Rest Of 1999?
The Federal Reserve may raise interest rates again as the economy continues
to grow at a rate above the 3% level that the Fed seems to find comfortable.
On the other hand, inflation remains under control and this is the key to
interest rate levels. We currently believe inflation will remain low and
under control and that, in the end, interest rates will head lower. It may
not occur during the third quarter, nor is it certain to occur during 1999.
In fact, yields may go higher than current levels for a time. Nonetheless,
low inflation will mean lower interest rates at some point in the foreseeable
future.
<PAGE>
- ------------------------------------------------------------------------------
THE HARTFORD
HIGH YIELD FUND
- ------------------------------------------------------------------------------
PORTFOLIO MANAGER
[PHOTO]
ALISON D. GRANGER, CFA
Senior Vice President
The Hartford Investment
Management Company (HIMCO)
PERFORMANCE OVERVIEW
9/30/98 - 6/30/99
GROWTH OF A $10,000 INVESTMENT IN
CLASS A WHICH INCLUDES SALES CHARGE
<TABLE>
<S> <C>
HIGH YIELD FUND
$9,550 starting value $10,437
LEHMAN HIGH YIELD
$10,000 starting value $10,113
</TABLE>
- -------------------------------------------------------------------------------
RETURNS (INCEPTION 9/30/98)
<TABLE>
<CAPTION>
Non Sales Charge Adjusted Sales Charge Adjusted
------------------------- ---------------------
CUMULATIVE CUMULATIVE
YTD SINCE INCEPT.(1) SINCE INCEPT.(2)
<S> <C> <C> <C>
High Yield "A" 2.48% 5.90% 1.13%
High Yield "B" 2.24% 5.40% 0.40%
High Yield "C" 2.15% 5.30% 3.25%
Lehman High Yield 2.20% 4.37%
</TABLE>
- -------------------------------------------------------------------------------
THE CHART REPRESENTS A HYPOTHETICAL INVESTMENT IN THE HIGH YIELD FUND. PAST
PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE VALUE OF SHARES WILL
FLUCTUATE SO THAT WHEN REDEEMED, SHARES MAY BE WORTH MORE OR LESS THAN THEIR
ORIGINAL COST.
(1) PERFORMANCE RESULTS DO NOT REFLECT SALES CHARGE.
(2) THE INITIAL INVESTMENT IN CLASS A, B AND C SHARES REFLECTS THE MAXIMUM
SALES CHARGE AND CDSC, RESPECTIVELY.
*CLASS C SHARES COMMENCED OPERATIONS ON 8/1/98. PERFORMANCE PRIOR TO 8/1/98
REFLECTS CLASS B PERFORMANCE LESS CLASS C EXPENSES.
A $10,000 INVESTMENT IN THE FUND'S CLASS B SHARES AT THE FUND'S INCEPTION ON
9/30/98 WOULD HAVE BEEN VALUED AT $10,540 ON 6/30/99 ($10,240 WITH A
REDEMPTION AT THE END OF THE PERIOD.)
A $10,000 INVESTMENT IN THE FUND'S CLASS C SHARES AT THE FUND'S INCEPTION ON
9/30/98 WOULD HAVE BEEN VALUED AT $10,530 ON 6/30/99 ($10,430 WITH A
REDEMPTION AT THE END OF THE PERIOD.)
Q. How Did The Fund Perform?
The Hartford High Yield Fund commenced operations on September 30, 1998. The
Fund's Class A shares placed in the 59th percentile of its Lipper peer group
for the six months ended June 30, 1999, producing a since-inception total
return of 5.90% versus the 6.54% return of the Lipper High Yield Fixed Income
category.
Q. Why Did The Fund Perform This Way?
The Fund's overweight to securities in cyclically-sensitive industries aided
performance, as oil, steel, chemical and paper issues generally outperformed
during the second quarter. The Fund's communications and media industry
holdings benefited its performance. These industries outperformed due to
recent significant credit-positive consolidation activity. The Fund's
allocation to Emerging Market sovereign issues which produced excess
performance during the first quarter, gave back some of that performance
during the second quarter.
Q. What Is Your Outlook For The Rest Of 1999?
The average current yield offered by high yield securities today exceeds
9.25%. We believe that the high current income and potential for capital
appreciation offered by high yield bonds offers a very attractive income and
diversification alternative to equity investors.
We continue to pursue opportunities where we feel we can be rewarded for
taking on risk. We are increasingly wary of credit risk in the corporate bond
sector and will remain very selective in our corporate bond holdings. The
Fund is currently holding the majority of its assets in the higher-quality BB
rated segment of the high yield market. We believe that the risk/reward
profile of these issues is currently more attractive, on average, than those
of lower-rated high yield issues. We continue to overweight energy related
issues in The Fund. We also are opportunistically investing a small portion
of Fund assets in Emerging Market sovereign issues. These securities provide
another way to express our positive outlook on oil, as a number of Emerging
Market economies will significantly benefit from a sustained increase in the
price of oil. Finally, the investment grade market is also providing
opportunities to The Fund. Heavy new issue supply is causing the pricing of
some investment grade issues to be competitive with high yield securities. To
the extent possible we will capitalize on this technical anomaly.
<PAGE>
- ------------------------------------------------------------------------------
THE HARTFORD
BOND INCOME STRATEGY FUND
- ------------------------------------------------------------------------------
PORTFOLIO MANAGER
[PHOTO]
ALISON D. GRANGER, CFA
Senior Vice President
The Hartford Investment
Management Company (HIMCO)
PERFORMANCE OVERVIEW
7/22/96 - 6/30/99
GROWTH OF A $10,000 INVESTMENT IN
CLASS A WHICH INCLUDES SALES CHARGE
<TABLE>
<S> <C>
BOND INCOME STRATEGY
$9,550 starting value $11,696
LEHMAN GOVT/CORP
$10,000 starting value $12,334
</TABLE>
- -------------------------------------------------------------------------------
RETURNS (INCEPTION 7/22/96)
<TABLE>
<CAPTION>
Non Sales Charge Adjusted Sales Charge Adjusted
------------------------- ---------------------
ANNUALIZED ANNUALIZED
YTD 1 YEAR(1) SINCE INCEPT.(1) 1 YEAR(2) SINCE INCEPT.(2)
<S> <C> <C> <C> <C> <C>
Bond "A" -2.75% 0.66% 7.13% -3.87% 5.47%
Bond "B" -3.10% -0.10% 6.34% -5.10% 5.43%
Bond "C"* -3.09% -0.06% 6.36% -2.06% 5.99%
Lehman G/C -2.28% 2.70% 7.40%
</TABLE>
- -------------------------------------------------------------------------------
THE CHART REPRESENTS A HYPOTHETICAL INVESTMENT IN THE BOND INCOME STRATEGY.
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE VALUE OF SHARES WILL
FLUCTUATE SO THAT WHEN REDEEMED, SHARES MAY BE WORTH MORE OR LESS THAN THEIR
ORIGINAL COST.
(1) PERFORMANCE RESULTS DO NOT REFLECT SALES CHARGE.
(2) THE INITIAL INVESTMENT IN CLASS A, B AND C SHARES REFLECTS THE MAXIMUM
SALES CHARGE AND CDSC, RESPECTIVELY.
*CLASS C SHARES COMMENCED OPERATIONS ON 8/1/98. PERFORMANCE PRIOR TO 8/1/98
REFLECTS CLASS B PERFORMANCE LESS CLASS C EXPENSES.
A $10,000 INVESTMENT IN THE FUND'S CLASS B SHARES AT THE FUND'S INCEPTION ON
7/22/96 WOULD HAVE BEEN VALUED AT $11,982 ON 6/30/99 ($11,682 WITH A
REDEMPTION AT THE END OF THE PERIOD.)
A $10,000 INVESTMENT IN THE FUND'S CLASS C SHARES AT THE FUND'S INCEPTION ON
7/22/96 WOULD HAVE BEEN VALUED AT $11,986 ON 6/30/99 (WITH A REDEMPTION AT
THE END OF THE PERIOD THE VALUE WOULD REMAIN THE SAME BECAUSE THE CDSC PERIOD
HAS EXPIRED.)
Q. How Did The Fund Perform?
The Hartford Bond Income Strategy Fund Class A shares placed in the 80th
percentile of its Lipper peer group for the six month period ending June 30,
1999. The Fund produced a total return for the six months ending 6/30/99 of
- -2.75% versus -1.71% return of the Lipper Corporate Debt BBB category.
Q. Why Did The Fund Perform This Way?
The Fund's performance was aided by its holdings in Treasury Inflation
Protected Securities and cash as the market favored these securities in
anticipation of the recent tightening by the Federal Reserve. The average
maturity and interest rate duration of The Fund, while shorter than it had
been in 1998 and during the first quarter of this year, remained marginally
longer than its benchmark index, resulting in relatively larger price
declines as yields rose sharply during the second quarter. Having contributed
excess returns to The Fund during the first quarter, holdings in long
maturity (10+ years) corporate securities hindered performance during the
second quarter. Corporate securities generally under-performed Treasuries
during May and June. The primary exception to this included portfolio
holdings in energy related corporate issues which have performed very well
since March.
Q. What Is Your Outlook For The Rest Of 1999?
With long term rates hovering around the 6% mark, we will maintain a neutral
interest rate position in the Fund. Effectively, we will keep the duration of
the Fund in line with that of its benchmark index.
We continue to view Treasuries as an attractive opportunity relative to other
sectors of the bond market. We believe Treasuries have a superior supply/
demand profile given the US government's reduced need for financing.
We are increasingly wary of credit deterioration in the corporate bond sector
and will remain very selective in our corporate bond holdings. The liquidity
injected into the credit markets by the Federal Reserve last autumn resulted
in a significant recovery in performance of the US economy and credit-related
fixed income, including investment grade and high yield corporate bonds. We
believe the recovery is temporary.
Fundamentally, we see a rising trend in credit rating downgrades relative to
upgrades, a steady rise in corporate defaults, and a high ratio of corporate
bonds trading at distressed levels. From a technical standpoint, new issue
supply has been coming to market at a high rate, and we expect this to
continue through the summer. As these issues price to clear, negatively
impact the performance of existing securities, and lead to under-performance
relative to Treasuries. In light of these conditions, our corporate strategy
will be to continue to emphasize commodity-related issues, and to look for
opportunities across industries among attractively priced new issues.
<PAGE>
THE HARTFORD MONEY MARKET FUND
- --------------------------------------------------------------------------------
STATEMENT OF NET ASSETS
JUNE 30, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
- ---------- -----------
<C> <S> <C>
COMMERCIAL PAPER -- 71.7%
$1,000,000 Abbey National, North America
4.93% due 01/18/00.................... $ 972,474
1,000,000 Abbey National, North America
4.82% due 08/09/99.................... 994,778
600,000 Abbott Laboratories
4.80% due 07/08/99.................... 599,440
1,400,000 Abbott Laboratories
4.90% due 07/19/99.................... 1,396,570
1,000,000 Anz (Delaware), Inc.
4.93% due 11/22/99.................... 980,300
1,000,000 Aristar, Inc.
5.18% due 08/16/99.................... 993,381
1,000,000 BankAmerica Corp.
5.05% due 02/14/00.................... 968,016
1,000,000 Bradford and Bingley
4.84% due 10/25/99.................... 984,404
769,000 Cafco
4.89% due 07/06/99.................... 768,477
1,000,000 Cafco
5.04% due 08/02/99.................... 995,520
1,000,000 Campbell Soup Company
4.83% due 01/31/00.................... 971,288
2,000,000 Ciesco L.P.
5.05% due 08/24/99.................... 1,984,850
1,000,000 Daimler Benz N.A.
4.80% due 08/30/99.................... 992,000
1,000,000 Daimler Chrysler
4.82% due 07/13/99.................... 998,393
1,000,000 du Pont (E.I.) De Nemours
4.81% due 07/12/99.................... 998,530
2,000,000 Electronic Data Systems
4.95% due 07/26/99.................... 1,993,125
1,000,000 Ford Motor Credit Co.
4.84% due 07/08/99.................... 999,058
1,000,000 General Mills, Inc.
4.84% due 07/06/99.................... 999,327
2,000,000 General Motors Acceptance Corp.
5.14% due 08/02/99.................... 1,990,862
1,000,000 Goldman Sachs Group
4.80% due 10/12/99.................... 986,266
1,000,000 Halifax PLC
4.80% due 07/12/99.................... 998,533
1,000,000 International Lease Finance
4.82% due 07/20/99.................... 997,456
1,000,000 International Lease Finance
4.84% due 07/07/99.................... 999,193
1,000,000 Johnson & Johnson, Co.'s
4.83% due 07/12/99.................... 998,524
2,000,000 Lucent Technologies, Inc.
4.92% due 01/24/00.................... 1,943,420
2,000,000 Market Street Funding
5.10% due 07/26/99.................... 1,992,916
1,000,000 Merita Bank Ltd.
4.82% due 07/19/99.................... 997,590
1,000,000 Merita Bank Ltd.
5.18% due 08/09/99.................... 994,388
1,000,000 Merrill Lynch & Co.
4.80% due 07/06/99.................... 999,333
<CAPTION>
PRINCIPAL
AMOUNT VALUE
- ---------- -----------
<C> <S> <C>
</TABLE>
<TABLE>
<C> <S> <C>
$1,000,000 Merrill Lynch & Co.
5.06% due 02/07/00.................... $ 968,937
1,000,000 Morgan (J.P.) & Co.
4.82% due 10/04/99.................... 987,280
1,000,000 Morgan Stanley Group, Inc.
4.81% due 07/12/99.................... 998,530
1,000,000 Morgan Stanley Group, Inc.
4.98% due 07/26/99.................... 996,541
1,000,000 National Rural Utilities
4.77% due 07/27/99.................... 996,555
500,000 Nationwide Building Society
4.84% due 09/08/99.................... 495,361
1,000,000 Nationwide Building Society
4.82% due 08/10/99.................... 994,644
1,073,000 Procter & Gamble Co.
4.81% due 07/13/99.................... 1,071,279
1,000,000 Salomon Smith Barney
5.10% due 08/04/99.................... 995,183
1,000,000 Southland Corp.
4.82% due 07/21/99.................... 997,322
1,000,000 Swedbank, Inc.
4.84% due 08/26/99.................... 992,471
1,000,000 Volkswagon of America
4.90% due 09/10/99.................... 990,336
2,000,000 Wood Street Funding Corp.
4.94% due 07/13/99.................... 1,996,706
-----------
Total commercial paper.................. $46,969,557
-----------
-----------
CORPORATE NOTES -- 18.9%
1,000,000 Air Products and Chemicals
8.22% due 12/07/99.................... $ 1,011,610
600,000 BankAmerica Corp.
5.5669% due 02/09/00.................. 600,855
1,000,000 Citigroup, Inc.
5.3195% due 02/03/00.................. 1,000,571
1,000,000 Comerica
4.8788% due 02/02/00.................. 999,825
1,000,000 Dow Chemical
4.90% due 03/15/00.................... 999,738
1,000,000 First Union National Bank
5.4369% due 11/17/99.................. 1,000,265
1,000,000 Goldman Sachs Group
5.0497% due 02/01/00.................. 1,000,000
1,000,000 Key Bank N.A.
5.6488% due 08/20/99.................. 999,997
1,000,000 Key Bank N.A.
5.44% due 09/15/99.................... 1,000,008
1,000,000 Morgan (J.P.) & Co.
5.575% due 02/25/00................... 1,000,125
750,000 PepsiCo, Inc.
5.4975% due 08/19/99.................. 749,886
1,000,000 Texaco Capital, Inc.
4.845% due 05/03/00................... 999,211
1,000,000 Wells Fargo & Co.
4.8913% due 03/10/00.................. 999,621
-----------
Total corporate notes................... $12,361,712
-----------
-----------
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THIS FINANCIAL STATEMENT.
14
<PAGE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
- ---------- -----------
<C> <S> <C>
REPURCHASE AGREEMENT -- 15.0%
$9,817,000 Interest in $153,141,000 joint
repurchase agreement dated 06/30/99 with
State Street Bank 4.800% due 07/01/99;
maturity amount $9,818,309
(Collateralized by $153,141,000 U.S.
Treasury Bonds 8.125% due 05/15/21)..... $ 9,817,000
-----------
-----------
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C>
DIVERSIFICATION OF NET ASSETS:
Total commercial paper (cost
$49,696,550)........................... 71.7% $46,969,557
Total corporate notes (cost
$12,361,719)........................... 18.9 12,361,712
Total repurchase agreement (cost
$9,817,000))........................... 15.0 9,817,000
----- -----------
Total investment in securities
(total cost $71,875,269)............... 105.6 69,148,269
Cash, receivables and other assets...... 1.2 783,193
Payable for Fund shares redeemed........ (6.6) (4,326,709)
Other liabilities....................... (0.2) (107,893)
----- -----------
Net assets.............................. 100.0% $65,496,860
----- -----------
----- -----------
<CAPTION>
VALUE
-----------
<S> <C> <C>
</TABLE>
<TABLE>
<CAPTION>
<S> <C>
SUMMARY OF SHAREHOLDERS' EQUITY:
Capital stock, par value $0.001 per share;
800,000,000 shares authorized; 65,496,860 shares
outstanding...................................... $ 65,497
Paid-in surplus................................... 65,431,363
-----------
Net assets........................................ $65,496,860
-----------
-----------
Class A
Shares of beneficial interest outstanding,
$0.001 par value 400,000,000 shares authorized
(Net assets $35,841,874)....................... 35,841,874
-----------
-----------
</TABLE>
<TABLE>
<S> <C>
Net asset value and offering price per share.... $1.00
-----
-----
</TABLE>
<TABLE>
<S> <C>
Class B
Shares of beneficial interest outstanding,
$0.001 par value 200,000,000 shares authorized
(Net assets $18,083,218)....................... 18,083,218
-----------
-----------
</TABLE>
<TABLE>
<S> <C>
Net asset value and offering price per share.... $1.00
-----
-----
</TABLE>
<TABLE>
<S> <C>
Class C
Shares of beneficial interest outstanding,
$0.001 par value 100,000,000 shares authorized
(Net assets $4,037,072)........................ 4,037,072
----------
----------
</TABLE>
<TABLE>
<S> <C>
Net asset value and offering price per share.... $1.00
-----
-----
Maximum offering price per share ($1.00
DIVIDED BY 99.0%)............................. $1.01
-----
-----
</TABLE>
<TABLE>
<S> <C>
Class Y
Shares of beneficial interest outstanding,
$0.001 par value 100,000,000 shares authorized
(Net assets $7,534,696)........................ 7,534,696
----------
----------
</TABLE>
<TABLE>
<S> <C>
Net asset value and offering price per share.... $1.00
-----
-----
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THIS FINANCIAL STATEMENT.
15
<PAGE>
THE HARTFORD BOND INCOME STRATEGY FUND
- --------------------------------------------------------------------------------
STATEMENT OF NET ASSETS
JUNE 30, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
- ---------- -----------
<C> <S> <C>
ASSET-BACKED SECURITIES -- 2.1%
$ 400,000 California Infrastructure Pacific Gas &
Electric, Series 1997-1, Class A6
6.32% due 09/25/05.................... $ 399,760
250,000 California Infrastructure Southern
California Edison, Series 1997-1, Class
A5
6.28% due 09/25/05.................... 249,290
600,000 California Infrastructure Southern
California Edison, Series 1997-1, Class
A6
6.38% due 09/25/08.................... 595,326
600,000 Comed Transitional Funding Trust, Series
1998-1, Class A5
5.44% due 03/25/07.................... 574,320
444,151 Premier Auto Trust, Series 1998-5, Class
A2
5.07% due 04/09/01.................... 443,143
-----------
Total asset-backed securities........... $ 2,261,839
-----------
-----------
COMMERCIAL MORTGAGE-BACKED SECURITIES -- 0.6%
57,766 Capital Lease Funding Securitization,
Series 1997-CTL1, Class A1
7.421% due 06/22/24................... $ 58,625
575,000 DLJ Commercial Mortgage Corp., Series
1998-CF1, Class B2
7.33% due 01/15/10.................... 524,308
-----------
Total commercial mortgage-backed
securities.............................. $ 582,933
-----------
-----------
CORPORATE NOTES -- 51.3%
COLLEGES -- 1.7%
1,300,000 Massachusetts Institute of Technology
7.25% due 11/02/2096.................. $ 1,285,636
500,000 Yale University
7.375% due 04/15/2096................. 498,566
-----------
1,784,202
-----------
CONSUMER DURABLE -- 0.6%
100,000 Federal-Mogul Corp.
7.375% due 01/15/06................... 94,163
100,000 Mark IV Industries, Inc.
7.50% due 09/01/07.................... 92,493
500,000 TRW, Inc.
7.125% due 06/01/09................... 487,599
-----------
674,255
-----------
ENERGY & SERVICES -- 8.7%
1,150,000 Amoco Company
6.00% due 06/09/08.................... 1,097,042
200,000 Clark Refining & Marketing, Inc.
8.375% due 11/15/07................... 182,750
250,000 CMS Energy Corp.
6.75% due 01/15/04.................... 236,361
100,000 CMS Energy Corp.
7.50% due 01/15/09.................... 93,089
600,000 Conoco, Inc.
5.90% due 04/15/04.................... 584,649
600,000 Conoco, Inc.
6.95% due 04/15/29.................... 560,419
300,000 Enterprise Oil PLC
6.70% due 09/15/07.................... 283,151
550,000 Enterprise Oil PLC
6.50% due 05/01/05.................... 523,073
<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
- ---------- -----------
<C> <S> <C>
</TABLE>
CORPORATE NOTES -- (CONTINUED)
ENERGY & SERVICES -- (CONTINUED)
<TABLE>
<C> <S> <C>
$ 200,000 Gulf Canada Resources Ltd.
8.375% due 11/15/05................... $ 196,500
100,000 Gulf Canada Resources Ltd.
8.25% due 03/15/17.................... 90,284
300,000 Lasmo (USA), Inc.
8.375% due 06/01/23................... 315,337
1,150,000 Occidental Petroleum Corp.
7.375% due 11/15/08................... 1,132,411
400,000 Panhandle Eastern Pipeline
6.125% due 03/15/04................... 389,106
175,000 Pioneer Natural Resource
7.20% due 01/15/28.................... 134,656
450,000 Pioneer Natural Resource
6.50% due 01/15/08.................... 384,052
180,000 R&B Falcon Corp.
6.75% due 04/15/05.................... 151,200
1,000,000 R&B Falcon Corp.
11.375% due 03/15/09.................. 1,035,000
200,000 R&B Falcon Corp.
7.375% due 04/15/18................... 144,000
1,150,000 Seagull Energy Corp.
7.50% due 09/15/27.................... 952,219
100,000 Tesoro Petroleum Corp.
9.00% due 07/01/08.................... 97,250
250,000 Tuboscope, Inc.
7.50% due 02/15/08.................... 217,500
500,000 Vastar Resource, Inc.
6.50% due 04/01/09.................... 484,325
-----------
9,284,374
-----------
FINANCIAL SERVICES -- 10.8%
400,000 Abbey National First Capital
8.20% due 10/15/04.................... 423,862
500,000 Abbey National PLC
6.69% due 10/17/05.................... 490,706
145,000 Allstate Corp.
6.75% due 05/15/18.................... 139,519
500,000 Associates Corporation of North America
5.80% due 04/20/04.................... 482,721
500,000 Associates Corporation of North America
5.75% due 11/01/03.................... 484,484
500,000 Bank of New York Co., Inc. (The)
7.625% due 07/15/02................... 515,703
300,000 BankBoston Corp.
7.00% due 09/15/07.................... 298,343
500,000 CIT Group, Inc.
7.125% due 06/17/02................... 507,813
375,000 CIT Group, Inc.
5.57% due 12/08/03.................... 357,796
500,000 Citicorp, Inc.
7.125% due 05/15/06................... 503,871
1,000,000 Ford Motor Credit Co.
5.80% due 01/12/09.................... 914,300
1,000,000 Ford Motor Credit Co.
5.75% due 02/23/04.................... 963,419
500,000 Ford Motor Credit Co.
6.125% due 01/09/06................... 476,437
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THIS FINANCIAL STATEMENT.
16
<PAGE>
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
- ---------- -----------
<C> <S> <C>
</TABLE>
CORPORATE NOTES -- (CONTINUED)
FINANCIAL SERVICES -- (CONTINUED)
<TABLE>
<C> <S> <C>
$ 200,000 General Motors Acceptance Corp.
5.10% due 08/18/03.................... $ 198,502
550,000 Golden State Holdings
6.75% due 08/01/01.................... 543,270
1,000,000 Goldman Sachs Group
6.65% due 05/15/09.................... 963,877
500,000 Household Finance Corp.
6.00% due 05/01/04.................... 484,451
1,260,000 NationsBank Corp.
7.00% due 09/15/01.................... 1,277,374
200,000 Swiss Bank Corporation - NY
7.375% due 06/15/17................... 197,717
300,000 Trenwick Group
6.70% due 04/01/03.................... 296,885
350,000 Wachovia Corp.
6.25% due 08/01/08.................... 333,210
725,000 Wachovia Corp.
5.625% due 12/15/08................... 661,540
-----------
11,515,800
-----------
FOOD, BEVERAGE & TOBACCO -- 1.1%
200,000 Keebler Corp.
10.75% due 07/01/06................... 218,607
250,000 Ralcorp Holdings, Inc.
8.75% due 09/15/04.................... 273,770
700,000 Seagram (J) & Sons, Inc.
6.25% due 12/15/01.................... 694,691
-----------
1,187,068
-----------
HEALTH CARE -- 0.5%
100,000 Columbia Healthcare
7.50% due 12/15/23.................... 79,238
200,000 Columbia/HCA Healthcare Corp.
7.50% due 11/15/95.................... 157,781
250,000 Tenet Healthcare Corp.
8.625% due 01/15/07................... 246,250
-----------
483,269
-----------
HOME BUILDING -- 0.4%
220,000 Kaufman & Broad Home Corp.
9.625% due 11/15/06................... 229,900
100,000 U.S. Home Corp.
8.25% due 08/15/04.................... 98,250
50,000 U.S. Home Corp.
7.95% due 03/01/01.................... 50,342
-----------
378,492
-----------
HOTELS & GAMING -- 2.4%
250,000 Host Marriot Properties
8.45% due 12/01/08.................... 237,500
350,000 La Quinta Motor Inns
7.25% due 03/15/04.................... 309,755
600,000 Marriott International
6.875% due 11/15/05................... 581,104
500,000 MGM Grand, Inc.
6.875% due 02/06/08................... 447,589
440,000 Park Place Entertainment
7.875% due 12/15/05................... 419,100
<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
- ---------- -----------
<C> <S> <C>
</TABLE>
HOTELS & GAMING -- (CONTINUED)
<TABLE>
<C> <S> <C>
$ 606,000 Starwood Hotels & Resorts
7.375% due 11/15/15................... $ 521,161
100,000 Starwood Hotels & Resorts
6.75% due 11/15/05.................... 90,623
-----------
2,606,832
-----------
INDUSTRIAL -- 5.1%
320,000 Agriculture Minerals and Chemicals Co.
10.75% due 09/30/03................... 317,200
200,000 Arco Chemical Co.
9.80% due 02/01/20.................... 195,300
500,000 Bowater
8.50% due 12/15/01.................... 519,612
180,000 Domtar, Inc.
9.50% due 08/01/16.................... 190,800
300,000 du Pont (E.I.) de Nemours & Co.
6.75% due 09/01/07.................... 301,629
500,000 Equistar Chemicals LP
8.75% due 02/15/09.................... 505,353
180,000 International Paper Co.
9.05% due 02/08/01.................... 186,726
1,000,000 James River Corp.
6.75% due 10/01/99.................... 1,001,326
100,000 Polaroid Corporation
11.50% due 02/15/06................... 106,250
300,000 Raytheon Co.
6.15% due 11/01/08.................... 282,214
750,000 Rohm & Haas Co.
6.95% due 07/15/04.................... 757,230
250,000 Tyco International Group
6.125% due 01/15/09................... 232,114
850,000 United Technologies Corp.
6.50% due 06/01/09.................... 830,897
-----------
5,426,651
-----------
MEDIA & SERVICES -- 4.7%
500,000 British Sky Broadcasting
6.875% due 02/23/09................... 455,958
100,000 CBS Corp.
8.875% due 06/01/22................... 100,834
100,000 CSC Holdings, Inc.
9.875% due 02/15/13................... 106,750
200,000 CSC Holdings, Inc.
7.25% due 07/15/08.................... 190,000
195,000 Hollinger International Publishing
8.625% due 03/15/05................... 197,437
100,000 Jones Intercable, Inc.
7.625% due 04/15/08................... 100,000
100,000 Jones Intercable, Inc.
9.625% due 03/15/02................... 105,500
400,000 Jones Intercable, Inc.
10.50% due 03/01/08................... 428,000
500,000 Liberty Media
7.875% due 07/15/09................... 497,020
450,000 News America Holdings
7.70% due 10/30/25.................... 435,793
100,000 News America, Inc.
7.30% due 04/30/28.................... 92,173
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THIS FINANCIAL STATEMENT.
17
<PAGE>
THE HARTFORD BOND INCOME STRATEGY FUND
- --------------------------------------------------------------------------------
STATEMENT OF NET ASSETS -- (CONTINUED)
JUNE 30, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
- ---------- -----------
<C> <S> <C>
</TABLE>
CORPORATE NOTES -- (CONTINUED)
MEDIA & SERVICES -- (CONTINUED)
<TABLE>
<C> <S> <C>
$ 650,000 Noble Drilling Corp.
7.50% due 03/15/19.................... $ 634,347
113,000 Paramount Communication
7.50% due 07/15/23.................... 110,028
400,000 Placer Dome, Inc.
7.125% due 06/15/07................... 375,182
500,000 Rogers Cablesystems, Inc.
9.625% due 08/01/02................... 522,500
200,000 Rogers Cablesystems, Inc.
10.125% due 09/01/12.................. 214,250
200,000 Time Warner Enterprises, Inc.
8.875% due 10/01/12................... 224,748
100,000 Turner Broadcasting System, Inc.
7.40% due 02/01/04.................... 101,949
100,000 Viacom, Inc.
7.75% due 06/01/05.................... 102,871
-----------
4,995,340
-----------
PACKAGING & CONTAINERS -- 0.1%
100,000 Owens-Illinois, Inc.
8.10% due 05/15/07.................... 98,497
-----------
RETAIL -- 3.3%
300,000 Ahold Finance USA, Inc.
6.25% due 05/01/09.................... 282,936
600,000 Fred Meyer, Inc.
7.375% due 03/01/05................... 608,056
100,000 Kmart Corp.
7.84% due 01/02/02.................... 99,436
100,000 Kmart Corp.
7.55% due 07/27/04.................... 96,287
275,000 Kmart Corp.
7.95% due 02/01/23.................... 266,875
500,000 Kmart Corp.
7.75% due 10/01/12.................... 496,484
120,000 Kmart Corp.
12.50% due 03/01/05................... 141,029
500,000 Kroger Co. (The)
7.00% due 05/01/18.................... 466,139
200,000 Safeway, Inc.
6.50% due 11/15/08.................... 191,662
825,000 Stop & Shop Companies, Inc.
9.75% due 02/01/02.................... 881,153
-----------
3,530,057
-----------
SHIPBUILDING -- 0.1%
100,000 Newport News Shipbuilding
8.625% due 12/01/06................... 105,000
-----------
TECHNOLOGY -- 0.2%
150,000 UNISYS Corp.
12.00% due 04/15/03................... 163,500
-----------
TELECOMMUNICATIONS -- 2.8%
1,000,000 AT&T Corp.
6.50% due 03/15/29.................... 899,386
500,000 AT&T Corp.
7.00% due 05/15/05.................... 505,721
100,000 Rogers Cantel Mobile, Inc.
8.30% due 10/01/07.................... 98,750
<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
- ---------- -----------
<C> <S> <C>
</TABLE>
TELECOMMUNICATIONS -- (CONTINUED)
<TABLE>
<C> <S> <C>
$1,000,000 Sprint Capital Corp.
6.90% due 05/01/19.................... $ 930,618
500,000 Tele-Communications, Inc.
8.35% due 02/15/05.................... 537,665
-----------
2,972,140
-----------
TRANSPORTATION -- 1.9%
400,000 AMR Corp.
10.00% due 03/07/01................... 420,004
451,483 Continental Airlines, Inc.
7.461% due 04/01/13................... 460,142
200,000 CSX Corp.
7.25% due 05/01/04.................... 202,837
200,000 Interpool, Inc.
7.35% due 08/01/07.................... 188,374
220,000 Interpool, Inc.
7.20% due 08/01/07.................... 205,871
600,000 Norfolk Southern Corp.
6.70% due 05/01/00.................... 601,530
-----------
2,078,758
-----------
UTILITIES -- 6.2%
500,000 Calpine Corp.
7.625% due 04/15/06................... 470,625
200,000 Calpine Corp.
7.875% due 04/01/08................... 189,000
250,000 Cleveland Electric Illuminating Co.
7.13% due 07/01/07.................... 249,768
400,000 Connecticut Light & Power Co.
7.875% due 10/01/24................... 409,708
650,000 El Paso Electric Co.
8.90% due 02/01/06.................... 696,712
550,000 Illinois Power Co.
6.25% due 07/15/02.................... 541,408
525,000 Niagara Mohawk Power Corp.
6.875% due 03/01/01................... 529,319
300,000 Niagara Mohawk Power Corp.
7.25% due 10/01/02.................... 302,093
1,300,000 Pacific Gas & Electric Co.
7.05% due 03/01/24.................... 1,272,007
250,000 Pacific Gas & Electric Co.
7.25% due 03/01/26.................... 236,458
200,000 Pacificorp
6.12% due 01/15/06.................... 192,086
1,050,000 Pacificorp
6.375% due 05/15/08................... 1,013,934
460,000 Philadelphia Electric
5.625% due 11/01/01................... 452,918
125,000 Public Service EI-IBC
7.00% due 09/01/24.................... 117,561
-----------
6,673,597
-----------
WASTE MANAGEMENT -- 0.8%
1,000,000 Browning-Ferris, Inc.
7.40% due 09/15/35.................... $ 805,840
-----------
Total corporate notes................... $54,763,672
-----------
-----------
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THIS FINANCIAL STATEMENT.
18
<PAGE>
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
- ---------- -----------
<C> <S> <C>
ENHANCED EQUIPMENT TRUST CERTIFICATES -- 0.1%
$ 88,923 Norwest Airlines Trust, Series 2
11.30% due 06/21/14................... $ 102,873
-----------
-----------
FOREIGN/YANKEE BONDS & NOTES -- 4.3%
FOREIGN CORPORATIONS -- 2.0%
500,000 KFW International Finance, Inc.
9.50% due 12/15/00.................... $ 525,321
250,000 Southern Investments UK PLC
6.80% due 12/01/06.................... 241,073
500,000 Bayerische Landesbank NY
6.375% due 10/15/05................... 489,869
625,000 Landeskreditbank Baden-Wuerttemberg
7.625% due 02/01/23................... 655,241
250,000 Petroleos Mexicanos
9.50% due 09/15/27.................... 235,625
-----------
2,147,129
-----------
FOREIGN GOVERNMENT -- 2.3%
250,000 Province of Alberta
4.875% due 10/29/03................... 236,527
285,000 Province of Manitoba
5.50% due 10/01/08.................... 260,041
550,000 Quebec Province
5.75% due 02/15/09.................... 504,625
500 Republic of Argentina
8.38% due 12/20/03.................... 3,500
200,000 Republic of Colombia
7.625% due 02/15/07................... 151,560
300,000 Republic of Colombia
9.75% due 04/23/09.................... 247,500
200,000 Republic of Panama
8.875% due 09/30/27................... 164,000
175,000 Russian Federation (The)
10.00% due 06/26/07................... 87,390
250,000 United Mexican States Series A
6.25% due 12/31/19.................... 185,468
600,000 United Mexican States Series B
6.25% due 12/31/19.................... 445,125
250,000 United Mexican States Series C
5.8743% due 12/31/19.................. 208,437
-----------
2,494,173
-----------
Total foreign/yankee bonds & notes...... $ 4,641,302
-----------
-----------
REAL-ESTATE INVESTMENT TRUST -- 0.2%
250,000 Duke Realty LP
7.25% due 09/22/02.................... $ 251,280
-----------
-----------
SUPRANATIONAL -- 0.8%
700,000 Inter-American Development Bank
8.875% due 06/01/09................... $ 820,049
-----------
-----------
U.S. TREASURIES & FEDERAL AGENCIES -- 35.3%
FEDERAL NATIONAL MORTGAGE
ASSOCIATION -- 8.1%
150,000 5.25% due 01/15/03...................... $ 146,160
8,576,678 6.00% due 07/01/12 - 06/01/28........... 8,278,758
244,180 6.50% due 09/01/28...................... 236,477
-----------
8,661,395
-----------
</TABLE>
U.S. TREASURIES & FEDERAL AGENCIES -- (CONTINUED)
<TABLE>
<C> <S> <C>
U.S. TREASURY BONDS -- 9.7%
$ 450,000 10.625% due 08/15/15.................... $ 645,609
420,000 11.875% due 11/15/03.................... 516,337
550,000 5.25% due 11/15/28...................... 486,750
25,000 6.875% due 08/15/25..................... 26,992
310,000 7.50% due 11/15/24...................... 358,825
3,205,000 8.125% due 08/15/19..................... 3,862,025
3,455,000 8.875% due 08/15/17..................... 4,400,806
-----------
10,297,344
-----------
U.S. TREASURY INFLATION-INDEXED
SECURITIES -- 6.9%
458,825 3.375% due 01/15/07..................... 452,729
7,079,020 3.625% due 07/15/02 - 04/15/28.......... 6,897,193
-----------
7,349,922
-----------
U.S. TREASURY NOTES -- 10.6%
400,000 5.375% due 07/31/00..................... 399,875
400,000 5.625% due 11/30/99 - 12/31/99.......... 400,953
3,250,000 6.25% due 04/30/01 - 06/30/02........... 3,289,986
330,000 6.50% due 08/31/01 - 10/15/06........... 338,484
370,000 6.625% due 03/31/02 - 05/15/07.......... 379,746
3,670,000 6.875% due 05/15/06..................... 3,863,823
1,535,000 7.00% due 07/15/06...................... 1,626,140
1,010,000 7.50% due 10/31/99 - 02/15/05........... 1,049,831
-----------
11,348,838
-----------
Total U.S. treasuries & federal
agencies................................ $37,657,499
-----------
-----------
SHORT-TERM SECURITIES -- 4.0%
REPURCHASE AGREEMENT -- 4.0%
4,288,000 Interest in $153,141,000 joint
repurchase agreement dated 06/30/99 with
State Street Bank 4.800% due 07/01/99;
maturity amount $4,288,572
(Collateralized by $153,141,000 U.S.
Treasury Bonds 8.125% due 05/15/21)..... $ 4,288,000
-----------
-----------
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C>
DIVERSIFICATION OF NET ASSETS:
Total asset-backed securities (cost
$2,318,043)............................ 2.1% $ 2,261,839
Total commercial mortgage-backed
securities (cost $597,108)............. 0.6 582,933
Total corporate notes (cost
$56,160,924)........................... 51.3 54,763,672
Total enhanced equipment trust
certicates (cost $108,202)............. 0.1 102,873
Total foreign/yankee bonds & notes (cost
$4,881,190)............................ 4.3 4,641,302
Total real-estate investment trust (cost
$251,464).............................. 0.2 251,280
Total supranational (cost $878,250)..... 0.8 820,049
Total U.S. treasuries & federal agencies
(cost $38,771,243)..................... 35.3 37,657,499
Total short-term securities (cost
$4,288,000)............................ 4.0 4,288,000
----- ------------
Total investment in securities (total
cost $108,254,424)..................... 98.7 105,369,447
Cash, receivables and other assets...... 3.7 3,957,501
Payable for securities purchased........ (2.1) (2,248,584)
Payable for Fund shares redeemed........ (0.2) (228,166)
Other liabilities....................... (0.1) (70,660)
----- ------------
Net assets.............................. 100.0% $106,779,538
----- ------------
----- ------------
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THIS FINANCIAL STATEMENT.
19
<PAGE>
THE HARTFORD BOND INCOME STRATEGY FUND
- --------------------------------------------------------------------------------
STATEMENT OF NET ASSETS -- (CONTINUED)
JUNE 30, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
VALUE
------------
<S> <C>
SUMMARY OF SHAREHOLDERS' EQUITY:
Capital stock, par value $0.001 per share;
300,000,000 shares authorized; 10,480,564 shares
outstanding...................................... $ 10,481
Paid-in surplus................................... 110,237,002
Accumulated undistributed net investment income... 43,226
Distribution in excess of net realized gain on
investments...................................... (626,193)
Unrealized depreciation of investments............ (2,884,978)
------------
Net assets........................................ $106,779,538
------------
------------
</TABLE>
<TABLE>
<CAPTION>
<S> <C>
Class A
Net assets value per share ($56,882,791
DIVIDED BY 5,583,812 shares outstanding)
(125,000,000 shares authorized)................ $10.19
------
------
Maximum offering price per share ($10.19
DIVIDED BY 95.5%)............................. $10.67
------
------
Class B
Net assets value per share ($21,432,844
DIVIDED BY 2,111,071 shares outstanding)
(75,000,000 shares authorized)................. $10.15
------
------
Class C
Net assets value per share ($12,155,540
DIVIDED BY 1,193,244 shares outstanding)
(50,000,000 shares authorized)................. $10.19
------
------
Maximum offering price per share ($10.19
DIVIDED BY 99.0%)............................. $10.29
------
------
Class Y
Net assets value per share ($16,308,363
DIVIDED BY 1,592,437 shares outstanding)
(50,000,000 shares authorized)................. $10.24
------
------
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THIS FINANCIAL STATEMENT.
20
<PAGE>
THE HARTFORD ADVISERS FUND
- --------------------------------------------------------------------------------
STATEMENT OF NET ASSETS
JUNE 30, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
- ----------- ------------
<C> <S> <C>
COMMON STOCKS -- 59.5%
AEROSPACE & DEFENSE -- 1.6%
130,400 AlliedSignal, Inc....................... $ 8,215,200
169,600 United Technologies Corporation......... 12,158,200
------------
20,373,400
------------
COMMUNICATIONS EQUIPMENT -- 2.7%
*193,450 Cisco Systems, Inc...................... 12,477,525
214,000 Lucent Technologies, Inc................ 14,431,625
*112,800 Tellabs, Inc............................ 7,621,050
------------
34,530,200
------------
COMPUTERS & OFFICE
EQUIPMENT -- 2.2%
110,000 International Business Machines Corp.... 14,217,516
221,800 Xerox Corporation....................... 13,100,062
------------
27,317,578
------------
CONSUMER DURABLES -- 0.6%
141,100 Ford Motor Co........................... 7,963,331
------------
CONSUMER NON-DURABLES -- 0.7%
95,900 Procter & Gamble Co..................... 8,559,075
------------
ELECTRONICS -- 4.5%
236,700 General Electric Company................ 26,747,100
220,000 Intel Corporation....................... 13,090,000
*200,000 Micron Technology, Inc.................. 8,062,500
60,000 Texas Instruments, Inc.................. 8,700,000
------------
56,599,600
------------
ENERGY & SERVICES -- 3.8%
180,000 Anadarko Petroleum Corporation.......... 6,626,250
218,800 Exxon Corporation....................... 16,874,950
120,000 Royal Dutch Petroleum................... 7,230,000
160,000 Schlumberger Ltd........................ 10,190,000
165,800 Unocal Corporation...................... 6,569,825
------------
47,491,025
------------
FINANCIAL SERVICES -- 8.7%
160,000 American General Corporation............ 12,060,000
89,750 American International Group, Inc....... 10,506,359
350,000 Associates First Capital Corporation.... 15,509,375
292,875 Citigroup, Inc.......................... 13,911,562
240,000 Franklin Resources Corp................. 9,750,000
197,500 Marsh & McLennan Companies, Inc......... 14,911,250
188,000 Mellon Bank Corporation................. 6,838,500
130,700 Merrill Lynch & Co., Inc................ 10,447,831
120,000 State Street Corporation................ 10,245,000
170,500 U.S. Bancorp............................ 5,797,000
------------
109,976,877
------------
FOOD, BEVERAGE & TOBACCO -- 2.0%
250,500 Philip Morris Co., Inc.................. 10,066,968
*176,700 Safeway, Inc............................ 8,746,650
98,482 Unilever N.V. New York Shares........... 6,869,119
------------
25,682,737
------------
HEALTH CARE -- 9.2%
240,000 Abbott Laboratories..................... 10,920,000
280,000 American Home Products Corporation...... 16,100,000
150,000 Baxter International, Inc............... 9,093,750
*149,900 Boston Scientific Corporation........... 6,586,231
140,000 Bristol-Myers Squibb Company............ 9,861,250
120,000 Cardinal Health, Inc.................... 7,695,000
<CAPTION>
MARKET
SHARES VALUE
- ----------- ------------
<C> <S> <C>
</TABLE>
HEALTH CARE -- (CONTINUED)
<TABLE>
<C> <S> <C>
160,000 Guidant Corporation..................... $ 8,230,000
140,000 Johnson & Johnson Co.................... 13,720,000
185,800 Merck & Co., Inc........................ 13,749,200
95,900 Pharmacia & Upjohn, Inc................. 5,448,318
123,750 ServiceMaster Company (The)............. 2,320,312
170,400 Warner-Lambert Company.................. 11,821,500
------------
115,545,561
------------
INDUSTRIAL MATERIALS -- 3.0%
140,200 Alcoa, Inc.............................. 8,674,875
100,000 du Pont (E.I.) de Nemours & Co.......... 6,831,250
147,900 Praxair, Inc............................ 7,237,856
*124,900 Sealed Air Corporation.................. 8,102,887
100,000 Weyerhaeuser Company.................... 6,875,000
------------
37,721,868
------------
MANUFACTURING -- 2.6%
130,000 Caterpillar, Inc........................ 7,800,000
100,000 Corning, Inc............................ 7,012,500
100,000 Illinois Tool Works, Inc................ 8,200,000
100,000 Tyco International, Ltd................. 9,475,000
------------
32,487,500
------------
MEDIA & SERVICES -- 3.0%
*260,000 American Tower Corporation.............. 6,240,000
*260,000 AT&T Liberty Media Group - Class A...... 9,555,000
*170,000 CBS Corporation......................... 7,384,375
210,000 Gannett Co., Inc........................ 14,988,750
------------
38,168,125
------------
RETAIL -- 4.9%
86,800 CVS Corporation......................... 4,405,100
270,000 Gap, Inc. (The)......................... 13,601,250
144,000 Home Depot, Inc. (The).................. 9,279,000
370,000 McDonald's Corporation.................. 15,285,625
*190,000 Staples, Inc............................ 5,878,125
262,200 Wal-Mart Stores, Inc.................... 12,651,150
------------
61,100,250
------------
SOFTWARE & SERVICES -- 4.5%
200,000 Automatic Data Processing, Inc.......... 8,800,000
*110,000 Computer Sciences Corp.................. 7,610,625
141,900 Electronic Data Systems Corporation..... 8,026,218
144,500 First Data Corporation.................. 7,071,468
*280,000 Microsoft Corporation................... 25,252,500
------------
56,760,811
------------
TRANSPORTATION -- 1.1%
*106,900 AMR Corporation......................... 7,295,925
150,000 CSX Corporation......................... 6,796,875
------------
14,092,800
------------
UTILITIES -- 4.3%
25,000 Ameritech Corporation................... 1,837,500
244,850 AT&T Corp............................... 13,665,690
150,000 Bell Atlantic Corporation............... 9,806,250
*174,878 MCI WorldCom, Inc....................... 15,083,227
240,000 SBC Communications, Inc................. 13,920,000
------------
54,312,667
------------
Total common stocks..................... $748,683,405
------------
------------
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THIS FINANCIAL STATEMENT.
21
<PAGE>
THE HARTFORD ADVISERS FUND
- --------------------------------------------------------------------------------
STATEMENT OF NET ASSETS -- (CONTINUED)
JUNE 30, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
- ----------- ------------
<C> <S> <C>
CORPORATE NOTES -- 9.0%
CONSUMER NON-DURABLES -- 0.1%
$ 2,000,000 Colgate-Palmolive Company
5.58% due 11/06/08.................... $ 1,861,344
------------
ENERGY & SERVICES -- 0.5%
1,000,000 Cigna Corp.
6.375% due 01/15/06................... 955,514
1,360,000 Conoco, Inc.
5.90% due 04/15/04.................... 1,325,205
4,000,000 National Fuel & Gas
6.00% due 03/01/09.................... 3,719,772
500,000 Williams Companies, Inc.
6.50% due 11/15/02.................... 494,493
------------
6,494,984
------------
FINANCIAL SERVICES -- 4.7%
2,000,000 Allmerica Financial Corp.
7.625% due 10/15/25................... 2,003,500
2,000,000 Allstate Corp.
6.75% due 05/15/18.................... 1,924,410
1,420,000 Amerus Life Holdings
6.95% due 06/15/05.................... 1,364,483
3,000,000 Apache Finance Property Limited
7.00% due 03/15/09.................... 2,931,681
2,000,000 Associates Corp. N.A.
6.00% due 07/15/05.................... 1,918,546
500,000 BankAmerica Corp.
7.875% due 12/01/02................... 520,706
2,000,000 Bayerische Landesbank NY
5.65% due 02/01/09.................... 1,831,012
2,000,000 Becton Dickinson & Co.
6.70% due 08/01/28.................... 1,806,086
1,260,000 Cigna Corp.
7.40% due 05/15/07.................... 1,274,545
500,000 Finova Capital Corporation
6.39% due 10/08/02.................... 494,358
1,000,000 First Union National Bank
5.80% due 12/01/08.................... 911,050
1,000,000 Fleet Financial Group
6.875% due 01/15/28................... 910,195
3,000,000 Ford Motor Credit Co.
6.625% due 10/01/28................... 2,717,820
2,000,000 General Motors Acceptance Corporation
6.75% due 05/01/28.................... 1,827,858
500,000 Heller Financial
6.382% due 11/10/00................... 500,530
^2,000,000 Jackson National Life Insurance Co.
8.15% due 03/15/27.................... 2,115,208
^2,000,000 John Hancock 144A Surplus Notes
7.375% due 02/15/24................... 1,979,624
2,755,000 Key Bank N.A.
5.80% due 04/01/04.................... 2,633,722
1,000,000 Liberty Financial Co.
6.75% due 11/15/08.................... 969,316
^5,000,000 Liberty Mutual Insurance
8.20% due 05/04/07.................... 5,203,035
1,000,000 MBIA, Inc.
7.00% due 12/15/25.................... 954,282
1,000,000 NationsBank Corp.
7.80% due 09/15/16.................... 1,034,731
^2,000,000 New England Mutual Life Insurance Co.
7.875% due 02/15/24................... 2,093,826
<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
- ----------- ------------
<C> <S> <C>
</TABLE>
FINANCIAL SERVICES -- (CONTINUED)
<TABLE>
<C> <S> <C>
$ 1,000,000 New York Telephone
6.00% due 04/15/08.................... $ 945,843
2,000,000 Parker Hannifin Corp.
5.65% due 09/15/03.................... 1,920,980
^2,000,000 Prudential Funding Corp.
6.75% due 09/15/23.................... 1,818,732
2,055,000 Sprint Capital Corp.
6.125% due 11/15/08................... 1,915,157
2,000,000 Torchmark Corp.
8.25% due 08/15/09.................... 2,081,168
2,000,000 Toyota Motor Credit Corp.
5.50% due 12/15/08.................... 1,832,600
2,000,000 Transamerica Financial
6.125% due 11/01/01................... 1,983,778
^4,000,000 TXU Eastern Funding
6.45% due 05/15/05.................... 3,856,600
785,000 US West Capital Funding, Inc.
6.875% due 07/15/28................... 707,606
3,000,000 Wachovia Corp.
5.625% due 12/15/08................... 2,737,410
------------
59,720,398
------------
FOOD, BEVERAGE & TOBACCO -- 0.2%
2,000,000 Hershey Foods Corp.
7.20% due 08/15/27.................... 2,011,924
------------
HEALTH CARE -- 0.1%
^1,000,000 United HealthCare Corp.
6.60% due 12/01/03.................... 980,552
------------
INDUSTRIAL -- 1.1%
2,000,000 American Home Products
7.25% due 03/01/23.................... 1,979,214
1,000,000 Computer Associates International
6.50% due 04/15/08.................... 927,926
2,000,000 Equitable Cos., Inc.
7.00% due 04/01/28.................... 1,909,618
2,000,000 Pitney Bowes, Inc.
5.50% due 04/15/04.................... 1,934,866
2,000,000 Rockwell International Corp.
6.70% due 01/15/28.................... 1,844,546
2,500,000 USX Corporation
6.65% due 02/01/06.................... 2,406,830
3,000,000 Whitman Corp.
6.375% due 05/01/09................... 2,850,219
------------
13,853,219
------------
INDUSTRIAL MATERIALS -- 1.4%
2,000,000 Alcan Aluminum Ltd.
7.25% due 11/01/28.................... 1,903,068
2,000,000 Archer Daniels
8.125% due 06/01/12................... 2,170,968
2,000,000 Danaher Corp.
6.00% due 10/15/08.................... 1,848,874
500,000 ICI Wilmington
6.95% due 09/15/04.................... 498,811
^3,000,000 Monsanto Company
6.60% due 12/01/08.................... 2,666,040
1,000,000 Praxair, Inc.
6.15% due 04/15/03.................... 973,885
^1,225,000 Rohm & Haas Co.
7.40% due 07/15/09.................... 1,224,706
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THIS FINANCIAL STATEMENT.
22
<PAGE>
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
- ----------- ------------
<C> <S> <C>
</TABLE>
CORPORATE NOTES -- (CONTINUED)
INDUSTRIAL MATERIALS -- (CONTINUED)
<TABLE>
<C> <S> <C>
$ 4,000,000 Vulcan Materials
5.75% due 04/01/04.................... $ 3,879,640
3,000,000 Washington Post Co.
5.50% due 02/15/09.................... 2,768,652
------------
17,934,644
------------
MEDIA & SERVICES -- 0.0%
500,000 Scripps (E.W.) Company
6.375% due 10/15/02................... 497,658
------------
RETAIL -- 0.3%
1,345,000 Dayton Hudson Corp.
5.875% due 11/01/08................... 1,251,307
2,000,000 Gap, Inc. (The)
6.90% due 09/15/07.................... 2,021,304
------------
3,272,611
------------
UTILITIES -- 0.5%
3,000,000 AT&T Corp.
6.50% due 03/15/29.................... 2,698,158
4,000,000 Duke Energy Corp.
5.375% due 01/01/09................... 3,584,552
------------
6,282,710
------------
Total corporate notes................... $112,910,044
------------
------------
PREFERRED STOCKS -- 0.5%
COMMUNICATIONS EQUIPMENT -- 0.5%
70,000 Nokia Corp. - Sponsored ADR............. $ 6,409,375
INDUSTRIAL MATERIALS -- 0.0%
9,400 Monsanto Company........................ 377,175
------------
Total preferred stocks.................. $ 6,786,550
------------
------------
U.S. TREASURIES & FEDERAL AGENCIES -- 25.7%
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION
-- 2.7%
29,652,727 6.00% due 06/15/28 - 01/15/29........... $ 27,792,930
4,989,069 6.50% due 04/15/26 - 12/15/28........... 4,809,327
1,161,592 7.00% due 07/15/23 - 04/15/26........... 1,149,820
------------
33,752,077
------------
U.S. TREASURY BOND -- 3.3%
41,500,000 6.25% due 08/15/23...................... 41,538,927
------------
U.S. TREASURY NOTES -- 19.7%
14,500,000 4.625% due 12/31/00..................... 14,323,288
16,300,000 4.875% due 03/31/01..................... 16,131,914
21,000,000 5.25% due 05/31/01...................... 20,895,000
20,000,000 5.75% due 04/30/03 - 08/15/03........... 20,009,380
24,750,000 5.875% due 11/15/05..................... 24,734,531
19,800,000 6.125% due 08/15/07..................... 20,016,572
25,850,000 6.25% due 05/31/00...................... 26,068,122
24,550,000 6.375% due 08/15/02..................... 25,017,996
25,550,000 6.5 % due 08/15/05 - 10/15/06........... 26,344,729
30,000,000 7.25% due 05/15/04...................... 31,828,140
21,750,000 7.50% due 11/15/01 - 02/15/05........... 22,865,867
------------
248,235,539
------------
Total U.S. treasuries & federal
agencies................................ $323,526,543
------------
------------
<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
- ----------- ------------
<C> <S> <C>
SHORT-TERM SECURITIES -- 3.6%
REPURCHASE AGREEMENT -- 3.6%
$44,836,000 Interest in $1,933,099,000 joint
repurchase agreement dated 06/30/99 with
State Street Bank 4.822% due 07/01/99;
maturity amount $44,842,006
(Collateralized by $125,000,000 U.S.
Treasury Notes 6.625% due 05/15/07,
$1,170,609,000 U.S. Treasury Bonds
6.125% - 12.000% due 08/15/13 -
11/15/27, $637,490,000 U.S. Treasury
Strips (principal) 0.00% due 06/30/00 -
05/15/15)............................... $ 44,836,000
------------
------------
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C>
DIVERSIFICATION OF NET ASSETS:
Total common stocks (cost
$615,614,759).......................... 59.5% $ 748,683,405
Total corporate notes (cost
$120,097,467).......................... 9.0 112,910,044
Total preferred stocks (cost
$5,085,663)............................ 0.5 6,786,550
Total U.S. treasuries & federal agencies
(cost $328,710,832).................... 25.7 323,526,543
Total short-term securities (cost
$44,836,000)........................... 3.6 44,836,000
----- --------------
Total investment in securities (total
cost $1,114,344,721)................... 98.3 1,236,742,542
Cash, receivables and other assets...... 3.3 43,089,358
Payable for securities purchased........ (1.3) (16,940,180)
Payable for Fund shares redeemed........ (0.2) (2,674,269)
Other liabilities....................... (0.1) (999,404)
----- --------------
Net assets.............................. 100.0% $1,259,218,047
-----
----- --------------
--------------
</TABLE>
<TABLE>
<S> <C>
SUMMARY OF SHAREHOLDERS' EQUITY:
Capital stock, par value $0.001 per share;
400,000,000 shares authorized; 75,384,391 shares
outstanding...................................... $ 75,384
Paid-in surplus................................... 1,125,415,484
Distribution in excess of net investment income... (56,848)
Accumulated undistributed net realized gain on
investments...................................... 11,386,205
Unrealized appreciation of investments............ 122,397,822
--------------
Net assets........................................ $1,259,218,047
--------------
--------------
</TABLE>
<TABLE>
<S> <C>
Class A
Net assets value per share ($538,084,776
DIVIDED BY 32,131,480 shares outstanding)
(175,000,000 shares authorized)................ $16.75
------
------
Maximum offering price per share($16.75
DIVIDED BY 94.5%)............................. $17.72
------
------
Class B
Net assets value per share ($438,636,963
DIVIDED BY 26,416,500 shares outstanding)
(75,000,000 shares authorized)................. $16.60
------
------
Class C
Net assets value per share ($216,227,605
DIVIDED BY 12,906,013 shares outstanding)
(50,000,000 shares authorized)................. $16.75
------
------
Maximum offering price per share ($16.75
DIVIDED BY 99.0%)............................. $16.92
------
------
Class Y
Net assets value per share ($66,268,703
DIVIDED BY 3,930,398 shares outstanding)
(100,000,000 shares authorized)................ $16.86
------
------
</TABLE>
* Non-income producing during period.
^ Security Exempt from registration under Rule 144A of the Securities Act of
1933. These securities may be resold in transactions exempt from
registration, normally to qualified institutional buyers. At June 30, 1999,
the market value of these securities amounted to $21,938,923 or 1.74% of
net assets.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THIS FINANCIAL STATEMENT.
23
<PAGE>
THE HARTFORD DIVIDEND AND GROWTH FUND
- --------------------------------------------------------------------------------
STATEMENT OF NET ASSETS
JUNE 30, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
- ----------- ------------
<C> <S> <C>
COMMON STOCKS -- 95.7%
AEROSPACE & DEFENSE -- 4.7%
^36,000 Qwest Trends Trust...................... $ 2,052,000
230,900 United Technologies Corporation......... 16,552,643
------------
18,604,643
------------
COMPUTERS & OFFICE
EQUIPMENT -- 1.2%
81,700 Xerox Corporation....................... 4,825,524
------------
CONSUMER DURABLES -- 1.8%
65,500 Ford Motor Co........................... 3,696,656
40,100 General Motors Corporation.............. 2,646,600
17,900 Newell Rubbermaid, Inc.................. 832,350
------------
7,175,606
------------
CONSUMER NON-DURABLES -- 3.5%
22,300 Clorox Company (The).................... 2,381,918
52,100 Colgate-Palmolive Company............... 5,144,875
81,600 Kimberly-Clark Corporation.............. 4,651,200
52,300 Stanley Works (The)..................... 1,683,406
------------
13,861,399
------------
CONSUMER SERVICES -- 0.4%
24,200 Eastman Kodak Company................... 1,639,550
------------
ELECTRONICS -- 4.0%
142,100 General Electric Company................ 16,057,300
------------
16,057,300
------------
ENERGY & SERVICES -- 8.2%
72,000 Chevron Corporation..................... 6,853,500
37,600 Kerr-McGee Corporation.................. 1,887,050
54,000 Mobil Corporation....................... 5,346,000
287,600 Repsol S.A. ADR......................... 5,841,875
185,210 Sunoco, Inc............................. 5,591,026
111,100 Total Fina S.A. ADR..................... 7,159,006
------------
32,678,457
------------
FINANCIAL SERVICES -- 18.5%
48,400 CIGNA Corporation....................... 4,307,600
306,625 Citigroup, Inc.......................... 14,564,687
68,700 Edwards (A.G.) & Sons, Inc.............. 2,215,575
51,200 Federal National Mortgage Association... 3,500,800
84,500 Household International, Inc............ 4,003,187
96,300 Marsh & McLennan Companies, Inc......... 7,270,650
135,900 MBNA Corporation........................ 4,161,937
70,500 National City Corporation............... 4,617,750
115,500 National Commerce Bancorporation........ 2,526,562
181,900 Pacific Century Financial Corporation... 3,922,218
52,000 Peoples Bank............................ 1,582,750
98,400 Pinnacle West Capital Corporation....... 3,960,600
234,300 U.S. Bancorp............................ 7,966,200
75,700 UnionBanCal Corporation................. 2,734,662
46,000 Wachovia Corporation.................... 3,935,875
41,200 XI Capital Ltd. - Class A............... 2,327,800
------------
73,598,853
------------
FOOD, BEVERAGE & TOBACCO -- 7.2%
39,600 Anheuser-Busch Companies, Inc........... 2,809,125
94,100 Flowers Industries, Inc................. 2,040,793
64,800 Hershey Foods Corporation............... 3,847,500
156,500 McCormick & Co., Inc.................... 4,939,531
11,400 Nabisco Group Holdings Corp............. 223,012
99,900 Nabisco Holdings Corporation............ 4,320,675
206,900 Philip Morris Co., Inc.................. 8,314,793
74,800 Reynolds (R.J.) Tobacco Holdings,
Inc..................................... 2,356,199
------------
28,851,628
------------
<CAPTION>
MARKET
SHARES VALUE
- ----------- ------------
<C> <S> <C>
</TABLE>
<TABLE>
<C> <S> <C>
HEALTH CARE -- 9.0%
61,500 Abbott Laboratories..................... $ 2,798,250
76,800 American Home Products Corporation...... 4,416,000
27,900 AstraZeneca Group PLC................... 1,093,331
90,500 Baxter International, Inc............... 5,486,562
36,600 Bristol-Myers Squibb Company............ 2,578,012
37,400 Merck & Co., Inc........................ 2,767,600
148,400 Pharmacia & Upjohn, Inc................. 8,430,975
117,700 Warner-Lambert Company.................. 8,165,437
------------
35,736,167
------------
INDUSTRIAL MATERIALS -- 4.5%
119,600 Abitibi-Consolidated, Inc............... 1,360,450
28,000 Air Products & Chemicals, Inc........... 1,127,000
50,100 Alcoa, Inc.............................. 3,099,937
22,800 BOC Group PLC - Sponsored ADR........... 919,125
16,400 Bowater, Inc............................ 774,900
66,700 du Pont (E.I.) de Nemours & Co.......... 4,556,443
8,700 Eastman Chemical Company................ 450,225
38,600 Temple-Inland, Inc...................... 2,634,450
31,900 Weyerhaeuser Company.................... 2,193,125
13,600 Willamette Industries, Inc.............. 626,450
------------
17,742,105
------------
MANUFACTURING -- 5.4%
70,200 Caterpillar, Inc........................ 4,212,000
86,900 Corning, Inc............................ 6,093,862
53,900 Dana Corporation........................ 2,482,768
35,930 Delphi Automotive Systems Corporation... 666,956
32,600 Eaton Corporation....................... 2,999,200
36,400 Minnesota Mining and Manufacturing
Company................................. 3,164,525
47,900 New Holland N.V......................... 820,287
31,800 Trinity Industries, Inc................. 1,065,300
------------
21,504,898
------------
MEDIA & SERVICES -- 1.4%
^270,000 CBS Radio, Inc.......................... 429,300
70,100 Gannett Co., Inc........................ 5,003,387
466 Nielson Media Research, Inc............. 13,630
------------
5,446,317
------------
REAL ESTATE -- 2.0%
73,800 Archstone Communities Trust............. 1,618,987
29,800 Boston Properties, Inc.................. 1,069,075
46,800 Kimco Realty Corp....................... 1,831,050
59,300 Liberty Property Trust.................. 1,475,087
18,200 Spieker Properties, Inc. REIT........... 707,525
41,900 Starwood Hotels & Resorts
Worldwide, Inc.......................... 1,280,568
------------
7,982,292
------------
RETAIL -- 3.1%
162,225 Intimate Brands, Inc.................... 7,685,409
112,050 May Department Stores Company........... 4,580,043
------------
12,265,452
------------
SOFTWARE & SERVICES -- 0.8%
17,000 Cabot Corp.............................. 411,187
49,200 Electronic Data Systems Corporation..... 2,782,875
------------
3,194,062
------------
TRANSPORTATION -- 0.7%
57,600 USFreightways Corporation............... 2,667,600
------------
UTILITIES -- 19.4%
105,000 Ameritech Corporation................... 7,717,500
191,550 AT&T Corp............................... 10,690,884
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THIS FINANCIAL STATEMENT.
24
<PAGE>
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
- ----------- ------------
<C> <S> <C>
</TABLE>
COMMON STOCKS -- (CONTINUED)
UTILITIES -- (CONTINUED)
<TABLE>
<C> <S> <C>
186,834 Bell Atlantic Corporation............... $ 12,214,272
81,200 BellSouth Corp.......................... 3,806,250
27,250 Columbia Gas System, Inc................ 1,708,234
88,300 DQE, Inc................................ 3,543,037
28,700 Duke Energy Corporation................. 1,560,562
69,900 El Paso Energy Corporation.............. 2,459,606
136,900 Endesa S.A.............................. 2,909,125
61,600 Enron Corp.............................. 5,035,800
83,200 GPU, Inc................................ 3,510,000
*20,656 MCI WorldCom, Inc....................... 1,781,580
22,500 Montana Power Company................... 1,586,250
93,300 Nisource, Inc........................... 2,408,306
62,800 Peco Energy Company..................... 2,629,750
42,500 Powergen PLC Sponsored ADR.............. 1,822,187
68,700 SBC Communications, Inc................. 3,984,600
53,000 Sprint Corporation (FON Group).......... 2,799,062
42,900 Texas Utilities Company................. 1,769,625
53,100 Unicom Corporation...................... 2,047,668
56,000 UtiliCorp United, Inc................... 1,361,500
------------
77,345,798
------------
Total common stocks..................... $381,177,651
------------
------------
CONVERTIBLE PREFERRED STOCKS -- 1.2%
AEROSPACE & DEFENSE -- 0.6%
286,500 Morgan Street........................... $ 2,542,688
MEDIA & SERVICES -- 0.6%
18,300 Tribune Co.............................. 2,276,062
------------
Total convertible preferred stocks...... $ 4,818,750
------------
------------
PREFERRED STOCKS -- 0.1%
SOFTWARE & SERVICES -- 0.0%
800 Microsoft Corporation................... $ 79,950
UTILITIES -- 0.1%
7,400 Texas Utilities Co...................... 407,000
------------
Total preferred stocks.................. $ 486,950
------------
------------
<CAPTION>
PRINCIPAL
AMOUNT
- -----------
<C> <S> <C>
SHORT-TERM SECURITIES -- 3.3%
REPURCHASE AGREEMENT -- 3.3%
$12,993,000 Interest in $1,933,099,000 joint
repurchase agreement dated 06/30/99 with
State Street Bank 4.822% due 07/01/99;
maturity amount $12,994,740
(Collateralized by $125,000,000 U.S.
Treasury Notes 6.625% due 05/15/07,
$1,170,609,000 U.S. Treasury Bonds
6.125% - 12.000% due 08/15/13 -
11/15/27, $637,490,000 U.S. Treasury
Strips (principal) 0.00% due 06/30/00 -
05/15/15)............................... $ 12,993,000
------------
------------
</TABLE>
<TABLE>
<CAPTION>
MARKET
VALUE
-------------
<S> <C> <C>
DIVERSIFICATION OF NET ASSETS:
Total common stocks (cost
$333,901,053).......................... 95.7% $381,177,651
Total convertible preferred bonds (cost
$5,283,054)............................ 1.2 4,818,750
Total preferred stocks (cost
$441,040).............................. 0.1 486,950
Total short-term securities (cost
$12,993,000)........................... 3.3 12,993,000
----- -------------
Total investment in securities (total
cost $352,618,147)..................... 100.3 399,476,351
Cash, receivables and other assets...... 1.2 4,529,834
Payable for securities purchased........ (1.3) (5,206,318 )
Payable for Fund shares redeemed........ (0.1) (331,189 )
Other liabilities....................... (0.1) (344,922 )
----- -------------
Net assets.............................. 100.0% $398,123,756
----- -------------
----- -------------
</TABLE>
<TABLE>
<CAPTION>
<S> <C>
SUMMARY OF SHAREHOLDERS' EQUITY:
Capital stock, par value $0.001 per share;
300,000,000 shares authorized; 22,596,319 shares
outstanding...................................... $ 22,596
Paid-in surplus................................... 341,596,828
Distribution in excess of net investment income... (1,021,634)
Accumulated undistributed net realized gain on
investments...................................... 10,689,229
Unrealized appreciation of investments............ 46,858,126
Unrealized depreciation of option contracts
written
(See Note 2) O................................... (21,389)
------------
Net assets........................................ $398,123,756
------------
------------
</TABLE>
<TABLE>
<S> <C>
Class A
Net assets value per share ($225,063,078
DIVIDED BY 12,734,654 shares outstanding)
(125,000,000 shares authorized)................ $17.67
------
------
Maximum offering price per share ($17.67
DIVIDED BY 94.5%)............................. $18.70
------
------
Class B
Net assets value per share ($123,577,121
DIVIDED BY 7,055,026 shares outstanding)
(75,000,000 shares authorized)................. $17.52
------
------
Class C
Net assets value per share ($25,903,672
DIVIDED BY 1,479,618 shares outstanding)
(50,000,000 shares authorized)................. $17.51
------
------
Maximum offering price per share ($17.51
DIVIDED BY 99.0%)............................. $17.68
------
------
Class Y
Net assets value per share ($23,579,885
DIVIDED BY 1,327,021 shares outstanding)
(50,000,000 shares authorized)................. $17.77
------
------
</TABLE>
* Non-income producing during period.
^ Security Exempt from registration under Rule 144A of the Securities Act of
1933. These securities may be resold in transactions exempt from
registration, normally to qualified institutional buyers. At June 30, 1999,
the market value of these securities amounted to $2,481,300 or 0.62% of net
assets.
O OPTION CONTRACTS WRITTEN--NOTE 2--OUTSTANDING AT JUNE 30, 1999
<TABLE>
<CAPTION>
NUMBER OF EXERCISE EXPIRATION
DESCRIPTION CONTRACTS PRICE DATE MARKET VALUE
- ------------------------------ --------- --------- -------------- -------------
<S> <C> <C> <C> <C>
Bristol-Meyers Squibb Company 53 73 July 1999 $ (6,148)
Eastman Kodak Company 24 75 July 1999 (216)
General Electric Company 33 114 July 1999 (4,261)
General Electric Company 13 117 August 1999 (3,159)
Minnesota Mining and
Manufacturing Company 36 100 August 1999 (792)
U.S. Bankcorp 117 36 July 1999 (4,483)
Warner-Lambert Company 111 70 August 1999 (41,958)
--- -------------
Total option contracts written
(cost ($39,629)) 387 $ (61,017)
--- -------------
--- -------------
</TABLE>
The securities underlying these option contracts are included in the Fund's
Statements of Net Assets.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THIS FINANCIAL STATEMENT.
25
<PAGE>
THE HARTFORD STOCK FUND
- --------------------------------------------------------------------------------
STATEMENT OF NET ASSETS
JUNE 30, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
- ----------- --------------
<C> <S> <C>
COMMON STOCKS -- 97.6%
AEROSPACE & DEFENSE -- 2.4%
150,200 AlliedSignal, Inc....................... $ 9,462,600
205,200 United Technologies Corporation......... 14,710,275
--------------
24,172,875
--------------
COMMUNICATIONS EQUIPMENT -- 4.6%
*286,800 Cisco Systems, Inc...................... 18,498,600
258,600 Lucent Technologies, Inc................ 17,439,337
*144,800 Tellabs, Inc............................ 9,783,050
--------------
45,720,987
--------------
COMPUTERS & OFFICE
EQUIPMENT -- 3.7%
150,000 International Business Machines Corp.... 19,387,511
300,000 Xerox Corporation....................... 17,718,750
--------------
37,106,261
--------------
CONSUMER DURABLES -- 1.0%
180,000 Ford Motor Co........................... 10,158,750
--------------
CONSUMER NON-DURABLES -- 1.1%
120,000 Procter & Gamble Co..................... 10,710,000
--------------
ELECTRONICS -- 7.2%
309,300 General Electric Company................ 34,950,900
274,600 Intel Corporation....................... 16,338,700
*250,000 Micron Technology, Inc.................. 10,078,110
70,000 Texas Instruments, Inc.................. 10,150,000
--------------
71,517,710
--------------
ENERGY & SERVICES -- 6.7%
227,300 Anadarko Petroleum Corporation.......... 8,367,481
271,100 Exxon Corporation....................... 20,908,587
174,400 Royal Dutch Petroleum................... 10,507,600
200,000 Schlumberger Ltd........................ 12,737,500
100,000 Texaco, Inc............................. 6,250,000
193,200 Unocal Corporation...................... 7,655,550
--------------
66,426,718
--------------
FINANCIAL SERVICES -- 13.9%
194,100 American General Corporation............ 14,630,287
116,350 American International Group, Inc....... 13,620,221
460,000 Associates First Capital Corporation.... 20,383,750
377,598 Citigroup, Inc.......................... 17,935,905
286,500 Franklin Resources, Inc................. 11,639,062
270,000 Marsh & McLennan Companies, Inc......... 20,385,000
299,200 Mellon Bank Corporation................. 10,883,400
141,400 Merrill Lynch & Co., Inc................ 11,303,162
130,800 State Street Corporation................ 11,167,050
173,700 U.S. Bancorp............................ 5,905,800
--------------
137,853,637
--------------
FOOD, BEVERAGE & TOBACCO -- 3.3%
330,800 Philip Morris Co., Inc.................. 13,294,025
*210,000 Safeway, Inc............................ 10,395,000
127,589 Unilever N.V. New York Shares........... 8,899,332
--------------
32,588,357
--------------
HEALTH CARE -- 15.8%
300,300 Abbott Laboratories..................... 13,663,650
370,000 American Home Products Corporation...... 21,275,000
<CAPTION>
MARKET
SHARES VALUE
- ----------- --------------
<C> <S> <C>
</TABLE>
HEALTH CARE -- (CONTINUED)
<TABLE>
<C> <S> <C>
200,000 Baxter International, Inc............... $ 12,125,000
*199,500 Boston Scientific Corporation........... 8,765,531
190,000 Bristol-Myers Squibb Company............ 13,383,125
159,300 Cardinal Health, Inc.................... 10,215,112
220,000 Guidant Corporation..................... 11,316,250
180,000 Johnson & Johnson Co.................... 17,640,000
242,800 Merck & Co., Inc........................ 17,967,200
171,900 Pharmacia & Upjohn, Inc................. 9,766,068
214,150 ServiceMaster Company (The)............. 4,015,312
250,000 Warner-Lambert Company.................. 17,343,750
--------------
157,475,998
--------------
INDUSTRIAL MATERIALS -- 4.6%
176,000 Alcoa, Inc.............................. 10,890,000
130,000 du Pont (E.I.) de Nemours & Co.......... 8,880,625
209,100 Praxair, Inc............................ 10,232,831
*140,100 Sealed Air Corporation.................. 9,088,987
100,000 Weyerhaeuser Company.................... 6,875,000
--------------
45,967,443
--------------
MANUFACTURING -- 4.2%
160,000 Caterpillar, Inc........................ 9,600,000
170,000 Corning, Inc............................ 11,921,250
120,000 Illinois Tool Works, Inc................ 9,840,000
110,000 Tyco International, Ltd................. 10,422,500
--------------
41,783,750
--------------
MEDIA & SERVICES -- 5.1%
*315,000 American Tower Corporation.............. 7,560,000
*240,000 AT&T Liberty Media Group - Class A...... 8,820,000
*224,500 CBS Corporation......................... 9,751,718
230,000 Gannett Co., Inc........................ 16,416,250
250,000 Walt Disney Company (The)............... 7,703,125
--------------
50,251,093
--------------
RETAIL -- 8.0%
123,000 CVS Corporation......................... 6,242,250
287,250 Gap, Inc. (The)......................... 14,470,218
210,000 Home Depot, Inc. (The).................. 13,531,875
450,000 McDonald's Corporation.................. 18,590,625
*270,000 Staples, Inc............................ 8,353,125
380,000 Wal-Mart Stores, Inc.................... 18,335,000
--------------
79,523,093
--------------
SOFTWARE & SERVICES -- 7.1%
230,000 Automatic Data Processing, Inc.......... 10,120,000
*160,000 Computer Sciences Corp.................. 11,070,000
210,000 Electronic Data Systems Corporation..... 11,878,125
178,300 First Data Corporation.................. 8,725,556
*317,800 Microsoft Corporation................... 28,661,587
--------------
70,455,268
--------------
TRANSPORTATION -- 1.8%
*130,200 AMR Corporation......................... 8,886,150
190,000 CSX Corporation......................... 8,609,375
--------------
17,495,525
--------------
UTILITIES -- 7.1%
25,000 Ameritech Corporation................... 1,837,500
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THIS FINANCIAL STATEMENT.
26
<PAGE>
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
- ----------- --------------
<C> <S> <C>
</TABLE>
COMMON STOCKS -- (CONTINUED)
UTILITIES -- (CONTINUED)
<TABLE>
<C> <S> <C>
280,100 AT&T Corp............................... $ 15,633,081
166,100 Bell Atlantic Corporation............... 10,858,787
*273,878 MCI WorldCom, Inc....................... 23,621,977
320,000 SBC Communications, Inc................. 18,560,000
--------------
70,511,345
--------------
Total common stocks..................... $ 969,718,810
--------------
--------------
PREFERRED STOCKS -- 1.1%
COMMUNICATIONS EQUIPMENT -- 1.0%
110,000 Nokia Corp. - Sponsored ADR............. 10,071,875
INDUSTRIAL MATERIALS -- 0.1%
12,500 Monsanto Company........................ 501,562
--------------
Total preferred stocks.................. $ 10,573,437
--------------
--------------
<CAPTION>
PRINCIPAL
AMOUNT
- -----------
<C> <S> <C>
SHORT-TERM SECURITIES -- 6.9%
REPURCHASE AGREEMENT -- 6.9%
$68,914,000 Interest in $1,933,099,000 joint
repurchase agreement dated 06/30/99 with
State Street Bank 4.822% due 07/01/99;
maturity amount $68,923,231
(Collateralized by $125,000,000 U.S.
Treasury Notes 6.625% due 05/15/07,
$1,170,609,000 U.S. Treasury Bonds
6.125% - 12.000% due 08/15/13 -
11/15/27, $637,490,000 U.S. Treasury
Strips (principal) 0.00% due 06/30/00 -
05/15/15)............................... $ 68,914,000
--------------
--------------
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C>
DIVERSIFICATION OF NET ASSETS:
Total common stocks (cost
$807,465,693).......................... 97.6% $ 969,718,810
Total preferred stocks (cost
$7,900,093)............................ 1.1 10,573,437
Total short-term securities (cost
$68,914,000)........................... 6.9 68,914,000
----- --------------
Total investment in securities (total
cost $884,279,786)..................... 105.6 1,049,206,247
Cash, receivables and other assets...... 4.1 40,200,624
Payable for securities purchased........ (9.5) (93,907,883)
Payable for Fund shares redeemed........ (0.1) (1,185,823)
Other liabilities....................... (0.1) (621,860)
----- --------------
Net assets.............................. 100.0% $ 993,691,305
----- --------------
----- --------------
<CAPTION>
MARKET
VALUE
--------------
<S> <C> <C>
</TABLE>
<TABLE>
<CAPTION>
<S> <C>
SUMMARY OF SHAREHOLDERS' EQUITY:
Capital stock, par value $0.001 per share;
300,000,000 shares authorized; 44,369,825 shares
outstanding...................................... $ 44,370
Paid-in surplus................................... 816,847,722
Distribution in excess of net investment income... (1,205,744)
Accumulated undistributed net realized gain on
investments...................................... 13,078,496
Unrealized appreciation of investments............ 164,926,461
------------
Net assets........................................ $993,691,305
------------
------------
</TABLE>
<TABLE>
<S> <C>
Class A
Net assets value per share ($506,404,200
DIVIDED BY 22,387,935 shares outstanding)
(125,000,000 shares authorized)................ $22.62
------
------
Maximum offering price per share ($22.62
DIVIDED BY 94.5%)............................. $23.94
------
------
Class B
Net assets value per share ($329,174,906
DIVIDED BY 14,857,858 shares outstanding)
(75,000,000 shares authorized)................. $22.16
------
------
Class C
Net assets value per share ($148,804,167
DIVIDED BY 6,717,587 shares outstanding)
(50,000,000 shares authorized)................. $22.15
------
------
Maximum offering price per share ($22.15
DIVIDED BY 99.0%)............................. $22.38
------
------
Class Y
Net assets value per share ($9,308,032
DIVIDED BY 406,445 shares outstanding)
(50,000,000 shares authorized)................. $22.90
------
------
</TABLE>
* Non-income producing during period.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THIS FINANCIAL STATEMENT.
27
<PAGE>
THE HARTFORD CAPITAL APPRECIATION FUND
- --------------------------------------------------------------------------------
STATEMENT OF NET ASSETS
JUNE 30, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
- ----------- ------------
<C> <S> <C>
COMMON STOCKS -- 96.1%
AEROSPACE & DEFENSE -- 0.4%
*216,100 Howmet International, Inc............... $ 3,714,218
------------
BUSINESS SERVICES -- 4.3%
*443,600 Bright Horizons Family Solutions,
Inc.................................... 8,372,950
550,000 Chicago Bridge & Iron Company N.V....... 7,665,625
450,000 Comdisco, Inc........................... 11,531,250
550,000 Manpower, Inc........................... 12,443,750
------------
40,013,575
------------
COMMUNICATIONS EQUIPMENT -- 8.9%
*350,000 Ancor Communications, Inc............... 11,331,250
*310,900 Gilat Satellite Network................. 16,322,250
*56,700 Network Plus Corp....................... 1,183,612
*200,000 Oak Industries, Inc..................... 8,737,500
*180,000 Qualcomm................................ 25,830,000
150,000 Raychem Corporation..................... 5,550,000
380,000 Scientific-Atlanta, Inc................. 13,680,000
------------
82,634,612
------------
COMPUTERS & OFFICE
EQUIPMENT -- 4.4%
*727,300 Concurrent Computer Corp................ 4,591,081
1,100,000 Danka Business Systems PLC.............. 6,187,500
*215,000 Global Imaging Systems, Inc............. 3,923,764
*1,200,000 Maxtor Corporation...................... 6,037,500
*380,500 MTI Technology Corp..................... 4,970,281
*181,500 NCR Corporation......................... 8,859,468
*24,500 SeaChange International, Inc............ 444,062
163,500 Symbol Technologies, Inc................ 6,029,062
------------
41,042,718
------------
CONSUMER DURABLES -- 0.5%
*202,700 Dollar Thrifty Automotive............... 4,712,775
------------
CONSUMER NON-DURABLES -- 2.1%
*540,000 Ivex Packaging Corp..................... 11,880,000
*110,000 Timberland Company (The)................ 7,486,875
------------
19,366,875
------------
CONSUMER SERVICES -- 4.2%
*184,000 Anchor Gaming........................... 8,843,500
*400,000 Cheesecake Factory Incorporated (The)... 12,200,000
*378,200 Harrah's Entertainment, Inc............. 8,320,400
*242,700 Pegasus Systems, Inc.................... 9,086,081
*7,900 Ryanair Holdings PLC - ADR.............. 418,700
------------
38,868,681
------------
ELECTRONICS -- 5.1%
*300,000 Micron Technology, Inc.................. 12,093,750
*355,300 Peak International Ltd.................. 2,409,378
1,025,000 Sensormatic Electronics Corporation..... 14,285,937
170,000 Sony Corporation........................ 18,763,750
------------
47,552,815
------------
ENERGY & SERVICES -- 1.2%
100,000 Kerr-McGee Corporation.................. 5,018,750
400,000 Pennzoil-Quaker State Company........... 6,000,000
------------
11,018,750
------------
FINANCIAL SERVICES -- 9.6%
463,700 Ace Ltd................................. 13,099,525
490,000 Annuity and Life Re (Holdings), Ltd..... 10,994,375
300,000 Citigroup, Inc.......................... 14,250,000
450,000 Conseco, Inc............................ 13,696,875
120,600 Marshall & Ilsley Corp.................. 7,763,625
<CAPTION>
MARKET
SHARES VALUE
- ----------- ------------
<C> <S> <C>
</TABLE>
FINANCIAL SERVICES -- (CONTINUED)
<TABLE>
<C> <S> <C>
*700,000 Pairgain Technologies, Inc.............. $ 8,050,000
332,900 St. Paul Companies, Inc................. 10,590,381
*215,000 The Profit Recovery Group International,
Inc.................................... 10,172,187
------------
88,616,968
------------
FOOD, BEVERAGE & TOBACCO -- 1.8%
*835,700 General Cigar Holdings, Inc............. 6,528,906
*400,000 United Natural Foods, Inc............... 9,900,000
------------
16,428,906
------------
HEALTH CARE -- 8.5%
*130,000 Boston Scientific Corporation........... 5,711,875
275,000 Columbia/HCA Healthcare Corporation..... 6,273,437
*401,000 Genzyme Corporation..................... 19,448,500
*440,039 Genzyme Surgical Products............... 1,938,921
*130,263 LifePoint Hospitals, Inc................ 1,750,404
*171,300 Millennium Pharmaceuticals, Inc......... 6,166,800
*499,800 NeXstar Pharmaceuticals, Inc............ 9,964,762
*255,000 Novoste Corporation..................... 5,355,000
*465,000 Pediatrix Medical Group, Inc............ 9,881,250
140,000 Pharmacia & Upjohn, Inc................. 7,953,750
*426,000 Repligen Corp........................... 1,224,750
*86,100 Rexall Sundown, Inc..................... 1,049,450
*130,263 Triad Hospitals, Inc.................... 1,758,546
------------
78,477,445
------------
INDUSTRIAL MATERIALS -- 3.0%
*500,000 Asia Pulp & Paper Company Ltd........... 4,812,500
*341,200 Cytyc Corp.............................. 6,653,400
150,000 Engelhard Corporation................... 3,393,750
398,700 Freeport-McMoRan Copper & Gold, Inc..... 7,151,681
*275,500 Smurfit-Stone Container Corporation..... 5,664,968
------------
27,676,299
------------
MANUFACTURING -- 5.1%
600,000 Delphi Automotive Systems Corporation... 11,137,500
650,000 Helix Technology Corporation............ 15,559,375
*250,000 Hexcel Corp............................. 2,531,250
*257,400 Quintiles Transnational Corp............ 10,810,800
*225,000 Terex Corp.............................. 6,848,437
------------
46,887,362
------------
MEDIA & SERVICES -- 4.5%
*450,000 Alloy Online, Inc....................... 5,146,875
*95,000 America Online, Inc..................... 10,497,500
*479,200 American Tower Corporation.............. 11,500,800
*181,700 Central European Media Enterprises
Ltd.................................... 1,181,050
*180,000 Pegasus Communications Corp............. 7,098,750
450,000 Stewart Enterprises, Inc................ 6,553,125
------------
41,978,100
------------
REAL ESTATE -- 2.0%
^*300,000 Beacon Properties Corporation........... 4,612,500
525,000 LNR Property Corporation................ 11,221,875
100,000 Starwood Hotels & Resorts Worldwide,
Inc.................................... 3,056,250
------------
18,890,625
------------
RETAIL -- 5.6%
357,000 Intimate Brands, Inc.................... 16,912,875
*500,000 Lone Star Steakhouse & Saloon, Inc...... 4,859,375
*1,593,400 The Sports Authority, Inc............... 7,070,712
*408,000 United Rentals (North America), Inc..... 12,036,000
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THIS FINANCIAL STATEMENT.
28
<PAGE>
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
- ----------- ------------
<C> <S> <C>
</TABLE>
COMMON STOCKS -- (CONTINUED)
RETAIL -- (CONTINUED)
<TABLE>
<C> <S> <C>
*225,000 Whole Foods Market, Inc................. $ 10,814,062
------------
51,693,024
------------
SOFTWARE & SERVICES -- 11.7%
*19,600 Ariba, Inc.............................. 1,906,100
*364,500 Avant! Corporation...................... 4,601,812
300,000 First Data Corporation.................. 14,681,250
*100,000 IDT Corp................................ 2,225,000
*250,000 IMRglobal Corp.......................... 4,812,500
*215,000 Legato Systems, Inc..................... 12,416,250
*390,000 Mobius Management Systems, Inc.......... 3,217,500
*645,000 Pegasystems, Inc........................ 6,611,250
*250,000 Policy Management Systems Corporation... 7,500,000
*500,000 Rational Software Corporation........... 16,468,750
*29,700 Software.com, Inc....................... 688,668
*160,000 Sterling Commerce, Inc.................. 5,840,000
*454,300 Sterling Software, Inc.................. 12,124,131
*380,000 Unigraphics Solutions, Inc.............. 7,148,750
*480,000 Wind River Systems, Inc................. 7,710,000
------------
107,951,961
------------
TRANSPORTATION -- 6.0%
*573,800 Airtran Holdings, Inc................... 3,299,350
*433,700 Atlas Air, Inc.......................... 13,986,825
*360,000 Jevic Transportation, Inc............... 4,995,000
300,000 Robinson (C.H.) Worldwide, Inc.......... 11,025,000
*291,900 Swift Transportation Co., Inc........... 6,421,800
338,500 USFreightways Corporation............... 15,676,781
------------
55,404,756
------------
UTILITIES -- 5.2%
150,000 AT&T Corp............................... 8,371,875
*140,000 Calpine Corporation..................... 7,560,000
*325,000 Intermedia Communications, Inc.......... 9,750,000
*694,200 Snyder Communications, Inc.............. 22,735,050
------------
48,416,925
------------
WASTE MANAGEMENT -- 1.8%
*500,000 Allied Waste Industries, Inc............ 9,875,000
*740,900 Newpark Resources, Inc.................. 6,575,487
------------
16,450,487
------------
Total common stocks..................... $887,797,877
------------
------------
<CAPTION>
PRINCIPAL
AMOUNT
- -----------
<C> <S> <C>
CORPORATE BONDS -- 0.7%
INDUSTRIAL MATERIALS -- 0.7%
$10,000,000 American Pad & Paper
13.00% due 11/15/05................... $ 6,325,000
------------
------------
<CAPTION>
SHARES
- -----------
<C> <S> <C>
PREFERRED STOCKS -- 0.0%
CONSUMER SERVICES -- 0.0%
+*193,536 SGW Holdings Corporation................ $ 193,536
------------
------------
<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
- ----------- ------------
<C> <S> <C>
SHORT-TERM SECURITIES -- 2.3%
REPURCHASE AGREEMENT -- 2.3%
$21,016,000 Interest in $1,933,099,000 joint
repurchase agreement dated 06/30/99 with
State Street Bank 4.822% due 07/01/99;
maturity amount $21,018,815
(Collateralized by $125,000,000 U.S.
Treasury Notes 6.625% due 05/15/07,
$1,170,609,000 U.S. Treasury Bonds
6.125% - 12.000% due 08/15/13 -
11/15/27, $637,490,000 U.S. Treasury
Strips (principal) 0.00% due 06/30/00 -
05/15/15................................ $ 21,016,000
------------
------------
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C>
DIVERSIFICATION OF NET ASSETS:
Total common stocks (cost
$783,497,866).......................... 96.1% $887,797,877
Total corporate bonds (cost
$5,610,026)............................ 0.7 6,325,000
Total preferred stocks (cost
$2,000,001)............................ 0.0 193,536
Total short-term securities (cost
$21,016,000)........................... 2.3 21,016,000
------ ------------
Total investment in securities
(total cost $812,123,893).............. 99.1 915,332,413
Cash, receivables and other assets...... 2.2 22,653,895
Payable for securities purchased........ (1.2) (11,473,486)
Payable for Fund shares redeemed........ (0.1) (1,115,537)
Other liabilities....................... (0.0) (244,887)
------ ------------
Net assets.............................. 100.0% $925,152,398
------ ------------
------ ------------
</TABLE>
<TABLE>
<S> <C>
SUMMARY OF SHAREHOLDERS' EQUITY:
Capital stock, par value $0.001 per share;
300,000,000 shares authorized; 35,948,278 shares
outstanding...................................... $ 35,948
Paid-in surplus................................... 714,639,582
Distribution in excess of net investment income... (2,958,898)
Accumulated undistributed net realized gain on
investments...................................... 109,031,081
Unrealized appreciation of investments............ 104,405,986
Unrealized depreciation of other assets and
liabilities in foreign currencies................ (1,301)
------------
Net assets........................................ $925,152,398
------------
------------
</TABLE>
<TABLE>
<S> <C>
Class A
Net assets value per share ($475,652,000
DIVIDED BY 18,327,813 shares outstanding)
(125,000,000 shares authorized)................ $25.95
------
------
Maximum offering price per share ($25.95
DIVIDED BY 94.5%)............................. $27.46
------
------
Class B
Net assets value per share ($360,987,442
DIVIDED BY 14,191,972 shares outstanding)
(75,000,000 shares authorized)................. $25.44
------
------
Class C
Net assets value per share ($48,702,090
DIVIDED BY 1,915,677 shares outstanding)
(50,000,000 shares authorized)................. $25.42
------
------
Maximum offering price per share($25.42
DIVIDED BY 99.0%)............................. $25.68
------
------
Class Y
Net assets value per share ($39,810,866
DIVIDED BY 1,512,816 shares outstanding)
(50,000,000 shares authorized)................. $26.32
</TABLE>
* Non-income producing during period.
^ Security Exempt from registration under Rule 144A of the Securities Act of
1933. These securities may be resold in transactions exempt from
registration, normally to qualified institutional buyers. At June 30, 1999,
the market value of these securities amounted to $4,612,500 or 0.5% of net
assets.
+ Restricted Security (see Note 2).
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THIS FINANCIAL STATEMENT.
29
<PAGE>
THE HARTFORD SMALL COMPANY FUND
- --------------------------------------------------------------------------------
STATEMENT OF NET ASSETS
JUNE 30, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
- ----------- ------------
<C> <S> <C>
COMMON STOCKS -- 93.3%
AEROSPACE & DEFENSE -- 0.8%
42,000 Primex Technologies, Inc................ $ 905,625
------------
BUSINESS SERVICES -- 4.1%
*22,400 Consolidated Graphics, Inc.............. 1,120,000
*48,400 Iron Mountain, Inc...................... 1,385,450
*19,400 Lason, Inc.............................. 962,725
*37,600 Pierce Leahy Corp....................... 928,250
------------
4,396,425
------------
COMMUNICATIONS EQUIPMENT -- 10.3%
*76,400 Andrew Corporation...................... 1,446,825
*25,900 Burr-Brown Corp......................... 948,587
*27,700 Computer Network Technology 599,012
Corporation.............................
*72,800 Digital Microwave Corporation........... 928,200
*35,600 Gilat Satellite Network................. 1,869,000
*44,500 ICG Communications, Inc................. 951,187
*41,700 MMC Networks, Inc....................... 1,866,075
*40,700 Oak Industries, Inc..................... 1,778,081
*21,400 Visual Networks, Inc.................... 684,800
------------
11,071,767
------------
COMPUTERS & OFFICE EQUIPMENT -- 4.7%
*212,800 Concurrent Computer Corp................ 1,343,300
93,600 Danka Business Systems PLC.............. 526,500
*289,800 Maxtor Corporation...................... 1,458,072
*91,900 Mentor Graphics......................... 1,177,468
*30,300 SeaChange International, Inc............ 549,187
------------
5,054,527
------------
CONSUMER DURABLES -- 3.0%
*62,200 Dollar Thrifty Automotive............... 1,446,150
*77,600 Unova, Inc.............................. 1,231,900
26,800 Valero Energy Corporation............... 574,525
------------
3,252,575
------------
CONSUMER NON-DURABLES -- 2.8%
*135,700 Ivex Packaging Corp..................... 2,985,400
------------
ELECTRONICS -- 14.5%
*57,800 Amkor Technology, Inc................... 592,450
*16,900 Applied Micro Circuits Corporation...... 1,390,025
*38,300 Cognex Corporation...................... 1,208,843
*67,100 Cypress Semiconductor Corporation....... 1,107,150
*51,800 Electroglas, Inc........................ 1,036,000
*25,200 Flextronics International Ltd........... 1,398,600
*60,300 GaSonics International Corporation...... 844,200
96,700 General Cable Corporation............... 1,547,200
*56,600 Kulicke and Soffa Industries, Inc....... 1,517,587
*17,400 Micrel, Inc............................. 1,287,600
*29,400 Quanta Services, Inc.................... 1,293,600
*21,000 Sawtek, Inc............................. 963,375
*38,600 The DII Group, Inc...................... 1,440,262
------------
15,626,892
------------
ENERGY & SERVICES -- 4.6%
*49,800 BJ Services Company..................... 1,465,987
17,100 Coflexip ADR............................ 743,850
*72,200 Marine Drilling Company, Inc............ 988,237
<CAPTION>
MARKET
SHARES VALUE
- ----------- ------------
<C> <S> <C>
</TABLE>
ENERGY & SERVICES -- (CONTINUED)
<TABLE>
<C> <S> <C>
58,700 Pennzoil-Quaker State Company........... $ 880,500
50,100 Pogo Producing Company.................. 933,112
------------
5,011,686
------------
FINANCIAL SERVICES -- 9.4%
68,400 Annuity and Life Re (Holdings), Ltd..... 1,534,725
41,900 Heller Financial, Inc................... 1,165,343
36,000 Legg Mason, Inc......................... 1,386,000
*37,000 NCO Group, Inc.......................... 1,406,000
*24,500 NextCard, Inc........................... 831,468
*80,500 PairGain Technologies, Inc.............. 925,750
9,600 Reinsurance Group of America, Inc....... 321,600
25,082 Reinsurance Group of America, Inc....... 884,140
8,900 Southwest Securities Group, Inc......... 638,575
*22,000 The Profit Recovery Group International, 1,040,875
Inc.....................................
------------
10,134,476
------------
FOOD, BEVERAGE & TOBACCO -- 1.0%
*41,600 United Natural Foods, Inc............... 1,029,600
------------
HEALTH CARE -- 4.0%
*12,600 Human Genome Sciences, Inc.............. 497,700
*82,800 NeXstar Pharmaceuticals, Inc............ 1,650,825
*30,200 Trigon Healthcare, Inc.................. 1,098,525
*64,400 Varian Semiconductor Equipment 1,094,800
Associates, Inc.........................
------------
4,341,850
------------
INDUSTRIAL MATERIALS -- 2.1%
41,400 Minerals Technologies, Inc.............. 2,310,637
------------
MANUFACTURING -- 2.6%
*38,600 Covance, Inc............................ 923,987
*69,200 Quest Diagnostics, Inc.................. 1,894,350
------------
2,818,337
------------
MEDIA & SERVICES -- 3.2%
*53,600 Capstar Broadcasting Corporation........ 1,467,300
*15,100 Pegasus Communications Corp............. 595,506
*26,400 Rogers Communications, Inc.............. 427,350
*27,200 Valasis Communications, Inc............. 996,200
------------
3,486,356
------------
RETAIL -- 3.6%
*7,500 Charming Shoppes, Inc................... 45,703
10,650 Ethan Allen Interiors, Inc.............. 402,037
*61,100 Guitar Center, Inc...................... 637,731
*58,750 Pacific Sunwear of California........... 1,432,031
*28,900 Whole Foods Market, Inc................. 1,389,006
------------
3,906,508
------------
SOFTWARE & SERVICES -- 8.7%
*84,300 Aspen Technologies, Inc................. 990,525
*28,000 Bisys Group, Inc. (The)................. 1,638,000
*54,200 Cognos, Inc............................. 1,178,850
*33,100 Genesys Telecomm Labs, Inc.............. 827,500
*33,500 National Instruments Corporation........ 1,352,562
*32,300 Policy Management Systems Corporation... 969,000
*32,500 Sterling Software, Inc.................. 867,343
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THIS FINANCIAL STATEMENT.
30
<PAGE>
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
- ----------- ------------
<C> <S> <C>
</TABLE>
COMMON STOCKS -- (CONTINUED)
SOFTWARE & SERVICES -- (CONTINUED)
<TABLE>
<C> <S> <C>
*56,100 TSI International Software Ltd.......... $ 1,591,837
------------
9,415,617
TRANSPORTATION -- 5.6%
*58,350 Atlas Air, Inc.......................... 1,881,787
42,200 Robinson (C.H.) Worldwide, Inc.......... 1,550,850
*66,550 Swift Transportation Co., Inc........... 1,464,100
26,000 USFreightways Corporation............... 1,204,125
------------
6,100,862
------------
UTILITIES -- 8.2%
*194,400 Advanced Fibre Communications........... 3,037,500
*81,200 Intermedia Communications, Inc.......... 2,436,000
*47,900 Primus Telecommunications Group, Inc.... 1,074,755
*42,000 Viatel, Inc............................. 2,357,250
------------
8,905,505
------------
Total common stocks..................... $100,754,645
------------
------------
<CAPTION>
<C> <S> <C>
PREFERRED STOCKS -- 0.0%
CONSUMER SERVICES -- 0.0%
+*8,612 SGW Holdings Corporation................ 8,612
------------
Total preferred stocks.................. $ 8,612
------------
------------
<CAPTION>
PRINCIPAL
AMOUNT
- -----------
<C> <S> <C>
SHORT-TERM SECURITIES -- 10.1%
REPURCHASE AGREEMENT -- 10.1%
$10,868,000 Interest in $1,933,099,000 joint $ 10,868,000
repurchase agreement dated 06/30/99 with
State Street Bank 4.822% due 07/01/99;
maturity amount $10,869,456
(Collateralized by $125,000,000 U.S.
Treasury Notes 6.625% due 05/15/07,
$1,170,609,000 U.S. Treasury Bonds
6.125% - 12.000% due 08/15/13 -
11/15/27, $637,490,000 U.S. Treasury
Strips (principal) 0.00% due 06/30/00 -
05/15/15................................
------------
------------
</TABLE>
<TABLE>
<CAPTION>
MARKET
VALUE
------------
<S> <C> <C>
DIVERSIFICATION OF NET ASSETS:
Total common stocks (cost
$87,845,897)........................... 93.3% $100,754,645
Total preferred stocks (cost $88,996)... 0.0 8,612
Total short-term securities (cost
$10,868,000)........................... 10.1 10,868,000
----- ------------
Total investment in securities (total
cost $98,802,893)...................... 103.4 111,631,257
Cash, receivables and other assets...... 2.3 2,486,928
Payable for securities purchased........ (5.3) (5,744,120)
Payable for Fund shares redeemed........ (0.3) (344,611)
Other liabilities....................... (0.1) (28,999)
----- ------------
Net assets.............................. 100.0% $108,000,455
----- ------------
----- ------------
</TABLE>
<TABLE>
<CAPTION>
<S> <C>
SUMMARY OF SHAREHOLDERS' EQUITY:
Capital stock, par value $0.001 per share;
300,000,000 shares authorized; 6,713,388 shares
outstanding...................................... $ 6,713
Paid-in surplus................................... 84,230,609
Distribution in excess of net investment income... (442,662)
Accumulated undistributed net realized gain on
investments...................................... 11,377,432
Unrealized appreciation of investments............ 12,828,362
------------
Net assets........................................ $108,000,455
------------
------------
</TABLE>
<TABLE>
<S> <C>
Class A
Net assets value per share ($52,935,480
DIVIDED BY 3,275,187 shares outstanding)
(125,000,000 shares authorized)................ $16.16
------
------
Maximum offering price per share ($16.16
DIVIDED BY 94.5%)............................. $17.10
------
------
Class B
Net assets value per share ($26,603,589
DIVIDED BY 1,680,014 shares outstanding)
(75,000,000 shares authorized)................. $15.84
------
------
Class C
Net assets value per share ($10,215,278
DIVIDED BY 645,107 shares outstanding)
(50,000,000 shares authorized)................. $15.84
------
------
Maximum offering price per share ($15.84
DIVIDED BY 99.0%)............................. $16.00
------
------
Class Y
Net assets value per share ($18,246,108
DIVIDED BY 1,113,080 shares outstanding)
(50,000,000 shares authorized)................. $16.39
------
------
</TABLE>
* Non-income producing during period.
+ Restricted Security (see Note 2).
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THIS FINANCIAL STATEMENT.
31
<PAGE>
THE HARTFORD INTERNATIONAL OPPORTUNITIES FUND
- --------------------------------------------------------------------------------
STATEMENT OF NET ASSETS
JUNE 30, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
- ---------- -----------
<C> <S> <C>
COMMON STOCKS -- 88.7%
AUSTRALIAN -- 2.8%
71,186 Australia & New Zealand Banking $ 523,451
(Financial Services)....................
52,211 Broken Hill Proprietary Co. (Industrial 604,792
Materials)..............................
44,939 News Corp., Ltd. (Media & Services)..... 383,427
259,855 Pasminco Ltd. (Industrial Materials).... 286,902
*41,498 Telstra Corporation Ltd. (Utilities).... 237,794
-----------
2,036,366
-----------
BRAZIL -- 1.0%
10,900 Embratel Participacoes S.A. 151,237
(Utilities).............................
1,505,700 Petroleo Brasileiro S.A. (Energy & 231,848
Services)...............................
*2,400 Telebras-sponsored ADR (Utilities)...... 150
2,400 Telecomunicacoes Brasileiras S.A. 216,450
(Utilities).............................
5,800 Telesp Participacoes S.A. (Utilities)... 132,675
-----------
732,360
-----------
CANADA -- 2.4%
21,700 Alcan Aluminum Ltd. (Industrial 687,633
Materials)..............................
18,500 Canadian Imperial Bank of Commerce 438,735
(Financial Services)....................
6,000 Canadian National Railway Company 402,000
(Transportation)........................
*7,000 Newbridge Networks Corp. (Communications 198,642
Equipment)..............................
-----------
1,727,010
-----------
CHINA -- 2.1%
*59,000 Cheung Kong Holdings Ltd. (Business 524,707
Services)...............................
*3,400 China Telecom (Hong Kong) Ltd. (Media & 193,800
Services)...............................
*34,200 China Telecom (Hong Kong) Ltd. (Media & 94,992
Services)...............................
59,000 New World Development (Real Estate)..... 176,803
30,000 Oversea-Chinese Banking Corp., Ltd. 250,224
(Financial Services)....................
35,000 Overseas Union Bank - Foreign (Financial 168,578
Services)...............................
11,000 Sun Hung Kai Properties (Real Estate)... 100,307
-----------
1,509,411
-----------
DENMARK -- 0.6%
6,830 Unidanmark A/S - A Shares (Financial 455,853
Services)...............................
-----------
FINLAND -- 2.1%
13,845 Nokia Oy (Communications Equipment)..... 1,213,626
12,200 UPM-Kymmene Oyj (Industrial 349,766
Materials)..............................
-----------
1,563,392
-----------
FRANCE -- 12.5%
5,100 Accor S.A. (Consumer Services).......... 1,280,685
2,550 Alcatel (Communications Equipment)...... 358,960
6,200 Alstom (Manufacturing).................. 195,013
4,850 Axa (Financial Services)................ 591,697
5,105 Banque National de Paris (Financial 425,383
Services)...............................
2,010 Casino Guichard-Perrachon S.A. 176,192
(Retail)................................
<CAPTION>
MARKET
SHARES VALUE
- ---------- -----------
<C> <S> <C>
</TABLE>
FRANCE -- (CONTINUED)
<TABLE>
<C> <S> <C>
4,000 Compagnie de Saint-Gobain S.A. $ 637,326
(Industrial Materials)..................
8,470 Compagnie Financiere de Paribas 949,480
(Financial Services)....................
4,240 Elf Aquitaine (Energy & Services)....... 622,220
13,400 Michelin - Class B (Consumer 548,201
Durables)...............................
3,700 Societe Generale - Class A (Financial 652,104
Services)...............................
4,950 Suez Lyonnaise des Eaux (Utilities)..... 892,828
7,920 Total S.A. - B Shares (Energy & 1,021,776
Services)...............................
9,760 Vivendi (Utilities)..................... 790,622
-----------
9,142,487
-----------
GERMANY -- 9.3%
1,540 Allianz AG (Financial Services)......... 430,391
19,230 Bayer AG (Health Care).................. 800,195
8,300 DaimlerChrysler AG (Consumer Durables).. 724,994
6,100 Deutsche Bank AG (Financial Services)... 371,783
17,530 Hoechst AG (Health Care)................ 790,017
7,904 Mannesmann AG (Media & Services)........ 1,181,920
3,100 Muenchener 584,081
Rueckversicherungs-Gesellschaft AG
(Financial Services)....................
15,720 Siemens AG (Electronics)................ 1,212,627
12,300 Veba AG (Utilities)..................... 725,561
-----------
6,821,569
-----------
INDIA -- 0.2%
289,200 Companhia Cervejaria Brahma (Food, 159,261
Beverage & Tobacco).....................
-----------
INDONESIA -- 0.3%
*24,300 Asia Pulp & Paper Company Ltd. 233,887
(Industrial Materials)..................
-----------
IRELAND -- 1.0%
53,540 Allied Irish Banks PLC (Financial 703,855
Services)...............................
-----------
ITALY -- 1.6%
90,788 Telecom Italia S.p.A (Utilities)........ 943,761
52,600 Unicredito Italiano S.p.A. (Financial 231,083
Services)...............................
-----------
1,174,844
-----------
JAPAN -- 16.8%
2,000 Advantest Corporation (Electronics)..... 219,769
31,000 Bank of Toyko-Mitsubishi Ltd. (Financial 441,297
Services)...............................
10,000 Bridgestone Corp. (Consumer Durables)... 302,388
34,000 Dai Nippon Printing Co. (Media & 543,556
Services)...............................
10,000 Eisai Co., Ltd. (Health Care)........... 197,048
5,000 Fuji Machine Manufacturing Co. 154,086
(Manufacturing).........................
22,000 Fujisawa Pharmaceutical (Health Care)... 358,074
16,000 Fujitsu Limited (Electronics)........... 321,887
56,000 Hitachi Ltd. (Electronics).............. 525,132
11,000 Kao Corporation (Consumer 308,998
Non-Durables)...........................
2,000 Mabuchi Motor Co., Ltd. (Electronics)... 185,894
9,000 Matsumotokiyoshi (Retail)............... 539,095
3,000 Matsushita Communication Industrial Co., 214,398
Ltd. (Communications Equipment).........
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THIS FINANCIAL STATEMENT.
32
<PAGE>
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
- ---------- -----------
<C> <S> <C>
</TABLE>
COMMON STOCKS -- (CONTINUED)
JAPAN -- (CONTINUED)
<TABLE>
<C> <S> <C>
13,000 Matsushita Electric Industrial Co. $ 252,403
(Communications Equipment)..............
48,000 Nikko Securities Co. (Financial 309,725
Services)...............................
710 Nippon Telegraph & Telephone Corp. 827,108
(Utilities).............................
60 NTT Mobile Communication Network, Inc. 81,298
(Media & Services)......................
240 Ntt Mobile New (Media & Services)....... 321,226
52,000 Olympus Optical Co., Ltd. (Health 768,596
Care)...................................
2,000 Rohm Company Ltd. (Electronics)......... 313,129
34,000 Sharp Corporation (Computers & Office 401,698
Equipment)..............................
1,100 Softbank Corp. (Software & Services).... 222,751
12,000 Sony Corporation (Media & Services)..... 1,293,828
15,000 Takeda Chemical Industries Ltd. (Health 695,246
Care)...................................
11,000 Takefuji Corp. (Financial Services)..... 1,136,932
20,000 Tokyo Style Co. (Consumer 214,811
Non-Durables)...........................
117,000 Toshiba Corporation (Computers & Office 834,221
Equipment)..............................
8,000 Yamanouchi Pharmaceuticals Co., Ltd. 306,024
(Health Care)...........................
-----------
12,290,618
-----------
MEXICO -- 0.8%
2,600 Femsa S.A. ADR (Food, Beverage & 103,675
Tobacco)................................
4,500 Grupo Televisa S.A. (Media & 201,656
Services)...............................
5,400 Panamerican Beverages, Inc. (Food, 128,587
Beverage & Tobacco).....................
2,000 Telefonos de Mexico S.A. ADR 161,625
(Utilities).............................
-----------
595,543
-----------
NETHERLANDS -- 7.0%
17,566 ING Groep N.V. (Financial Services)..... 951,054
18,838 Koninklijke Ahold N.V. (Retail)......... 648,865
7,715 Koninklijke KPN N.V. (Utilities)........ 362,009
*13,340 Koninklijke Philips Electronics N.V. 1,315,873
(Electronics)...........................
7,400 Royal Dutch Petroleum Company (Energy & 433,464
Services)...............................
*14,400 Unilever N.V. (Consumer Non-Durables)... 77,221
20,057 Unilever N.V. CVA (Consumer Non- 1,351,723
Durables)...............................
-----------
5,140,209
-----------
NEW ZEALAND -- 0.3%
6,800 Telecom Corporation (Utilities)......... 237,575
-----------
PHILLIPINES -- 0.1%
11,000 Metropolitan Bank & Trust (Financial 109,858
Services)...............................
-----------
SPAIN -- 4.0%
9,200 Banco Popular Espanol (Financial 661,767
Services)...............................
34,300 ENDESA - Empresa Nacional de 731,505
Electricidad S.A. (Utilities)...........
19,900 Repsol S.A. (Energy & Services)......... 406,341
<CAPTION>
MARKET
SHARES VALUE
- ---------- -----------
<C> <S> <C>
</TABLE>
SPAIN -- (CONTINUED)
<TABLE>
<C> <S> <C>
2,668 Telefonica S.A. (Utilities)............. $ 128,519
7,046 Telefonica S.A. (Utilities)............. 1,036,569
-----------
2,964,701
-----------
SWEDEN -- 1.7%
*10,840 Hennes & Mauritz (Retail)............... 267,756
64,800 Nordbanken Holding AB (Financial 378,811
Services)...............................
18,170 Telefonaktiebolaget LM Ericsson 582,389
(Ericsson AB) (Communications
Equipment)..............................
-----------
1,228,956
-----------
SWITZERLAND -- 5.5%
170 Alusuisse Lonza Group AG (Industrial 198,148
Materials)..............................
4,380 Credit Suisse Group (Financial 757,897
Services)...............................
285 Holderbank Financiere Glarus AG (Bearer) 336,407
(Industrial Materials)..................
697 Nestle S.A. (Food, Beverage & 1,255,827
Tobacco)................................
420 Novartis (Health Care).................. 613,280
40 Roche Holdings AG Genusss (Health 411,169
Care)...................................
1,230 Swisscom AG (Utilities)................. 462,855
-----------
4,035,583
-----------
THAILAND -- 0.2%
279,500 Siam Commercial Warrants (Financial 180,022
Services)...............................
-----------
UNITED KINGDOM -- 15.1%
20,800 Barclays PLC (Financial Services)....... 606,232
25,300 British Airways PLC (Consumer 173,978
Services)...............................
92,432 British Petroleum Co., PLC (Energy & 1,655,158
Services)...............................
21,372 British Telecommunications PLC 357,100
(Utilities).............................
*70,819 Cadbury Schweppes PLC (Food, Beverage & 452,109
Tobacco)................................
33,888 Diageo PLC (Food, Beverage & Tobacco)... 353,090
17,247 Granada Group PLC (Consumer Services)... 321,887
10,600 HSBC Holdings PLC (Financial 375,947
Services)...............................
43,700 Imperial Chemical Industries PLC 431,904
(Industrial Materials)..................
135,800 Invensys PLC (Electronics).............. 643,254
41,800 National Westminster Bank PLC (Financial 885,552
Services)...............................
32,900 Prudential Corporation PLC (Financial 486,967
Services)...............................
20,100 Reed International PLC (Media & 135,130
Services)...............................
50,800 Scottish Power PLC (Utilities).......... 439,617
91,502 Smith & Nephew PLC (Health Care)........ 278,012
161,347 SmithKline Beecham PLC (Health Care).... 2,094,418
^*8,300 South African Breweries PLC (Food, 71,173
Beverage & Tobacco).....................
67,004 Vodafone Group PLC (Media & Services)... 1,324,454
-----------
11,085,982
-----------
UNITED STATES OF AMERICA -- 1.1%
14,850 Pharmacia & Upjohn (Health Care)........ 820,949
Total common stocks..................... $64,950,291
-----------
-----------
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THIS FINANCIAL STATEMENT.
33
<PAGE>
THE HARTFORD INTERNATIONAL OPPORTUNITIES FUND
- --------------------------------------------------------------------------------
STATEMENT OF NET ASSETS -- (CONTINUED)
JUNE 30, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
- ---------- -----------
<C> <S> <C>
U.S. TREASURIES & FEDERAL AGENCIES -- 0.2%
U.S. TREASURY BILLS -- 0.2%
$ 50,000 4.175% due 07/08/99..................... $ 49,959
75,000 4.26% due 07/08/99...................... 74,937
25,000 4.29% due 07/08/99...................... 24,979
-----------
Total U.S. treasuries & federal $ 149,875
agencies................................
-----------
-----------
SHORT-TERM SECURITIES -- 8.4%
REPURCHASE AGREEMENT -- 8.4%
6,158,000 Interest in $1,933,099,000 joint $ 6,158,000
repurchase agreement dated 06/30/99 with
State Street Bank 4.822% due 07/01/99;
maturity amount $6,158,825
(Collateralized by $125,000,000 U.S.
Treasury Notes 6.625% due 05/15/07,
$1,170,609,000 U.S. Treasury Bonds
6.125% - 12.000% due 08/15/13 -
11/15/27, $637,490,000 U.S. Treasury
Strips (principal) 0.00% due 06/30/00 -
05/15/15)...............................
-----------
</TABLE>
<TABLE>
<CAPTION>
<S> <C>
SUMMARY OF SHAREHOLDERS' EQUITY:
Capital stock, par value $0.001 per share;
300,000,000 shares authorized; 5,607,609 shares
outstanding...................................... $ 5,608
Paid-in surplus................................... 64,873,745
Accumulated undistributed net investment income... 212,130
Accumulated undistributed net realized gain on
investments...................................... 2,745,593
Unrealized appreciation of investments............ 5,435,709
Unrealized appreciation of futures contracts -.... 719
Unrealized depreciation of forward foreign
currency contracts (See Note 2) o................ (8,753)
Unrealized depreciation of other assets and
liabilities in foreign currencies................ (23,430)
-----------
Net assets........................................ $73,241,321
-----------
-----------
</TABLE>
<TABLE>
<S> <C>
Class A
Net assets value per share ($39,586,796
DIVIDED BY 3,024,108 shares outstanding)
(125,000,000 shares authorized)................ $13.09
------
------
Maximum offering price per share ($13.09
DIVIDED BY 94.5%)............................. $13.85
------
------
Class B
Net assets value per share ($13,969,515
DIVIDED BY 1,084,503 shares outstanding)
(75,000,000 shares authorized)................. $12.88
------
------
Class C
Net assets value per share ($3,860,632
DIVIDED BY 300,069 shares outstanding)
(50,000,000 shares authorized)................. $12.87
------
------
Maximum offering price per share ($12.87
DIVIDED BY 99.0%)............................. $13.00
------
------
Class Y
Net assets value per share ($15,824,378
DIVIDED BY 1,198,929 shares outstanding)
(50,000,000 shares authorized)................. $13.20
------
------
</TABLE>
<TABLE>
<CAPTION>
MARKET
VALUE
-----------
<S> <C>
STATEMENT OF ASSETS AND LIABILITIES
ASSETS
Investments in securities, at value (total cost
$65,822,456) - see accompanying portfolio........ $71,258,166
Receivable for Investment securities sold......... 2,925,864
Receivable for Fund shares sold................... 434,968
Receivable for dividends and interest............. 537,802
Cash and other assets............................. 181
-----------
TOTAL ASSETS...................................... $75,156,981
-----------
LIABILITIES
Payables:
Investment securities purchased................... $ 1,676,818
Fund shares redeemed.............................. 143,924
Other accrued expenses............................ 94,918
-----------
TOTAL LIABILITIES................................. 1,915,660
-----------
NET ASSETS, AT VALUE.............................. $73,241,321
-----------
-----------
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C>
DIVERSIFICATION BY INDUSTRY:
Business Services....................... 0.7% $ 524,707
Communications Equipment................ 3.9 2,820,418
Computers & Office Equipment............ 1.7 1,235,919
Consumer Durables....................... 2.4 1,749,561
Consumer Non-Durables................... 2.7 1,952,753
Consumer Services....................... 2.2 1,602,572
Electronics............................. 6.5 4,737,565
Energy & Services....................... 6.0 4,370,807
Financial Services...................... 19.2 14,058,759
Food, Beverage & Tobacco................ 3.4 2,523,722
Health Care............................. 11.1 8,133,028
Industrial Materials.................... 5.1 3,766,765
Manufacturing........................... 0.5 349,099
Media & Services........................ 7.9 5,755,287
Real Estate............................. 0.4 277,110
Retail.................................. 2.2 1,631,908
Software & Services..................... 0.3 222,751
Transportation.......................... 0.5 402,000
Utilities............................... 12.1 8,835,560
----- -----------
Total common stocks..................... 88.7% $64,950,291
----- -----------
----- -----------
</TABLE>
* Non-income producing during period.
^ Security Exempt from registration under Rule 144A of the Securities Act of
1933. These securities may be resold in transactions exempt from
registration, normally to qualified institutional buyers. At June 30, 1999,
the market value of these securities amounted to $71,173 or 0.10% of net
assets.
- The fund had 4 September ASX ALL ORDS Index futures contracts and 14 July
OMX Index futures contracts open as of June 30, 1999. These contracts had a
market value of $333,310 as of June 30, 1999 and are collateralized by
various U.S. Treasury obligations having a market value of $149,875.
o FORWARD FOREIGN CURRENCY CONTRACTS OUTSTANDING AT JUNE 30, 1999
<TABLE>
<CAPTION>
TOTAL AGGREGATE DELIVERY UNREALIZED
DESCRIPTION MARKET VALUE FACE VALUE DATE (DEPRECATION)
- ------------------------------ ------------- ----------- --------- --------------
<S> <C> <C> <C> <C>
Australian Dollars (Buy) $ 98,049 $ 97,919 09/30/99 $ 130
British Pounds (Buy) 613,903 619,490 09/17/99 (5,587)
British Pounds (Sell) 613,664 614,879 09/17/99 1,215
EURO Dollars (Buy) 320,061 323,520 09/17/99 (3,459)
EURO Dollars (Sell) 141,403 141,694 09/17/99 291
Swedish Krona (Buy) 138,532 139,875 07/23/99 (1,343)
--------------
$ (8,753)
--------------
--------------
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THIS FINANCIAL STATEMENT.
34
<PAGE>
THE HARTFORD MIDCAP FUND
- --------------------------------------------------------------------------------
STATEMENT OF NET ASSETS
JUNE 30, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
- ---------- -----------
<C> <S> <C>
COMMON STOCKS -- 97.3%
AEROSPACE & DEFENSE -- 0.8%
*37,980 Loral Space & Communications............ $ 683,640
-----------
BUSINESS SERVICES -- 9.5%
*56,050 Iron Mountain, Inc...................... 1,604,431
83,900 Manpower, Inc........................... 1,898,237
*43,500 Pierce Leahy Corp....................... 1,073,906
44,000 Viad Corp............................... 1,361,250
*17,300 Waters Corp............................. 919,062
31,300 Young & Rubicam, Inc.................... 1,422,193
-----------
8,279,079
-----------
COMMUNICATIONS EQUIPMENT -- 2.9%
*19,400 ADC Telecommunications, Inc............. 883,912
*4,200 Exodus Communications, Inc.............. 503,737
*800 Juniper Networks, Inc................... 119,200
*7,100 Qualcomm................................ 1,018,850
-----------
2,525,699
-----------
COMPUTERS & OFFICE
EQUIPMENT -- 8.9%
*22,600 Affiliated Computer Services, Inc....... 1,144,144
*19,200 ASM Lithography Holding N.V............. 1,140,000
*7,100 Lexmark International Group, Inc........ 469,043
*14,200 NCR Corporation......................... 693,137
67,600 Steelcase, Inc.......................... 1,352,000
14,700 Symbol Technologies, Inc................ 542,062
*44,400 Unisys Corporation...................... 1,728,825
*13,100 Xilinx, Inc............................. 749,975
-----------
7,819,186
-----------
CONSUMER DURABLES -- 2.5%
17,855 Hertz Corporation....................... 1,107,010
*68,400 Unova, Inc.............................. 1,085,850
-----------
2,192,860
-----------
CONSUMER NON-DURABLES -- 3.6%
14,400 Avon Products, Inc...................... 799,200
19,000 Black & Decker Corporation.............. 1,199,375
56,300 Miller (Herman), Inc.................... 1,182,300
-----------
3,180,875
-----------
CONSUMER SERVICES -- 5.0%
20,975 Galileo International, Inc.............. 1,120,851
*31,800 ITT Educational Services, Inc........... 828,787
*53,900 Mirage Resorts, Inc..................... 902,825
*22,400 Ryanair Holdings PLC - ADR.............. 1,187,200
*9,200 Starbucks Corporation................... 345,575
-----------
4,385,238
-----------
ELECTRONICS -- 8.4%
*35,220 Analog Devices, Inc..................... 1,767,603
*18,900 Flextronics International Ltd........... 1,048,950
8,700 Linear Technology Corporation........... 585,075
*9,600 Maxim Integrated Products, Inc.......... 638,400
*28,600 Micron Technology, Inc.................. 1,152,937
*11,000 Sanmina Corporation..................... 834,625
*18,900 Teradyne, Inc........................... 1,356,075
-----------
7,383,665
-----------
<CAPTION>
MARKET
SHARES VALUE
- ---------- -----------
<C> <S> <C>
</TABLE>
<TABLE>
<C> <S> <C>
ENERGY & SERVICES -- 1.1%
25,800 Anadarko Petroleum Corporation.......... $ 949,762
-----------
FINANCIAL SERVICES -- 15.5%
26,535 Ace Ltd................................. 749,613
29,990 City National Corporation............... 1,122,750
34,070 Franklin Resources, Corp................ 1,384,093
31,500 Heller Financial, Inc................... 876,093
23,440 Legg Mason, Inc......................... 902,440
22,000 Lincoln National Corporation............ 1,150,875
24,000 MBIA, Inc............................... 1,554,000
17,687 Old Kent Financial Corporation.......... 740,649
*10,600 Sabre Group Holdings.................... 728,750
13,000 SAFECO Corp............................. 573,625
7,850 State Street Corporation................ 670,193
26,100 Summit Bancorp.......................... 1,091,306
28,200 UnionBanCal Corporation................. 1,018,725
18,300 Unum Corporation........................ 1,001,925
-----------
13,565,037
-----------
FOOD, BEVERAGE & TOBACCO -- 1.0%
*28,500 Keebler Foods Company................... 865,687
-----------
HEALTH CARE -- 5.8%
*17,400 Forest Laboratories, Inc................ 804,750
*26,070 Human Genome Sciences, Inc.............. 1,029,765
*9,300 Immunex Corporation..................... 1,185,168
8,350 Pe Corporation-Pe Biosystems Group...... 958,162
59,200 ServiceMaster Company (The)............. 1,110,000
-----------
5,087,845
-----------
INDUSTRIAL MATERIALS -- 4.1%
96,700 Abitibi-Consolidated, Inc............... 1,099,962
13,600 Phelps Dodge Corporation................ 842,350
*25,000 Sealed Air Corporation.................. 1,621,875
-----------
3,564,187
-----------
MANUFACTURING -- 4.4%
*69,450 Covance, Inc............................ 1,662,459
*24,000 Quintiles Transnational Corp............ 1,008,000
33,400 Weatherford International............... 1,223,275
-----------
3,893,734
-----------
MEDIA & SERVICES -- 7.7%
*87,525 American Tower Corporation.............. 2,100,600
*21,700 Donotuse - Chancellor Media Corp........ 1,196,212
*4,200 Echostar Communications Corporation..... 644,437
*20,000 Lamar Advertising Company............... 818,750
*19,690 Outdoor Systems, Inc.................... 718,685
12,100 Scripps (E.W.) Co....................... 575,506
*10,900 Univision Communications, Inc........... 719,400
-----------
6,773,590
-----------
RETAIL -- 6.5%
14,800 Circuit City Stores, Inc................ 1,376,400
57,450 Dollar General Corporation.............. 1,666,050
44,700 Family Dollar Stores, Inc............... 1,072,800
34,020 Intimate Brands, Inc.................... 1,611,697
-----------
5,726,947
-----------
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THIS FINANCIAL STATEMENT.
35
<PAGE>
THE HARTFORD MIDCAP FUND
- --------------------------------------------------------------------------------
STATEMENT OF NET ASSETS -- (CONTINUED)
JUNE 30, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
- ---------- -----------
<C> <S> <C>
</TABLE>
COMMON STOCKS -- (CONTINUED)
<TABLE>
<C> <S> <C>
SOFTWARE & SERVICES -- 5.5%
*900 Ariba, Inc.............................. $ 87,525
*10,440 Bisys Group, Inc. (The)................. 610,740
*35,860 Ceridan Corporation..................... 1,172,173
22,000 First Data Corporation.................. 1,076,625
*15,540 Policy Management Systems Corporation... 466,200
*13,100 Rational Software Corporation........... 431,481
*14,300 Siebel Systems, Inc..................... 949,162
-----------
4,793,906
-----------
TRANSPORTATION -- 0.6%
16,370 Southwest Airlines Co................... 509,516
-----------
UTILITIES -- 3.4%
*23,400 Intermedia Communications, Inc.......... 702,000
*23,800 McLeodUSA Incorporated.................. 1,309,000
*22,900 Smith International, Inc................ 994,718
-----------
3,005,718
-----------
Total common stocks..................... $85,186,171
-----------
-----------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT
- ----------
<C> <S> <C>
SHORT-TERM SECURITIES -- 7.0%
REPURCHASE AGREEMENT -- 7.0%
$6,145,000 Interest in 1,933,099,000 joint
repurchase agreement dated 06/30/99 with
State Street Bank 4.822% due 07/01/99;
maturity amount $6,145,823
(Collateralized by $125,000,000 U.S.
Treasury Notes 6.625% due 05/15/07,
$1,170,609,000 U.S. Treasury Bonds
6.125% - 12.000% due 08/15/13 -
11/15/27, $637,490,000 U.S. Treasury
Strips (principal) 0.00% due 06/30/00 -
05/15/15................................ $ 6,145,000
-----------
-----------
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C>
<CAPTION>
MARKET
VALUE
------------
<S> <C> <C>
DIVERSIFICATION OF NET ASSETS:
Total common stocks (cost
$73,354,805)........................... 97.3% $ 85,186,171
Total short term securities (cost
$6,145,000)............................ 7.0 6,145,000
------ ------------
Total investment in securities
(total cost $79,499,805)............... 104.3 91,331,171
Cash, receivables and other assets...... 2.2 1,948,030
Payable for securities purchased........ (6.3) (5,521,605)
Payable for Fund shares redeemed........ (0.2) (195,340)
------ ------------
Net assets.............................. 100.0% $ 87,562,256
------ ------------
------ ------------
</TABLE>
<TABLE>
<S> <C>
SUMMARY OF SHAREHOLDERS' EQUITY:
Capital stock, par value 0.001 per share;
300,000,000 shares authorized; 5,782,310 shares
outstanding...................................... $ 5,782
Paid-in surplus................................... 70,472,870
Distribution in excess of net investment income... (260,951)
Accumulated undistributed net realized gain on
investments...................................... 5,513,189
Unrealized appreciation of investments............ 11,831,366
------------
Net assets........................................ $ 87,562,256
------------
------------
</TABLE>
<TABLE>
<S> <C>
Class A
Net assets value per share ($49,833,916
DIVIDED BY 3,281,946 shares outstanding)
(125,000,000 shares authorized)................ $15.18
------
------
Maximum offering price per share ($15.18
DIVIDED BY 94.5%)............................. $16.07
------
------
Class B
Net assets value per share ($18,086,102
DIVIDED BY 1,203,451 shares outstanding)
(75,000,000 shares authorized)................. $15.03
------
------
Class C
Net assets value per share ($10,299,189
DIVIDED BY 685,488 shares outstanding)
(50,000,000 shares authorized)................. $15.02
------
------
Maximum offering price per share ($15.02
DIVIDED BY 99.0%)............................. $15.18
------
------
Class Y
Net assets value per share ($9,343,049
DIVIDED BY 611,425 shares outstanding)
(50,000,000 shares authorized)................. $15.28
------
------
</TABLE>
* Non-income producing during period.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THIS FINANCIAL STATEMENT.
36
<PAGE>
THE HARTFORD GROWTH AND INCOME FUND
- --------------------------------------------------------------------------------
STATEMENT OF NET ASSETS
JUNE 30, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
- ---------- -----------
<C> <S> <C>
COMMON STOCKS -- 92.8%
AEROSPACE & DEFENSE -- 2.8%
4,400 AlliedSignal, Inc....................... $ 277,200
14,200 United Technologies Corporation......... 1,017,962
-----------
1,295,162
-----------
COMMUNICATIONS EQUIPMENT -- 4.5%
*12,400 Cisco Systems, Inc...................... 799,800
7,900 Lucent Technologies, Inc................ 532,756
6,900 Motorola, Inc........................... 653,775
*1,950 Sprint Corporation (PCS Group).......... 111,393
-----------
2,097,724
-----------
COMPUTERS & OFFICE EQUIPMENT -- 6.3%
*8,600 Adaptec, Inc............................ 303,717
*4,600 Dell Computer Corp...................... 170,200
*3,200 EMC Corporation......................... 176,000
8,800 Hewlett-Packard Company................. 884,400
10,700 International Business Machines Corp.... 1,382,975
-----------
2,917,292
-----------
CONSUMER DURABLES -- 1.1%
7,300 Ford Motor Co........................... 411,993
1,400 General Motors Corporation.............. 92,400
-----------
504,393
-----------
CONSUMER NON-DURABLES -- 2.7%
11,800 Kimberly-Clark Corporation.............. 672,600
6,500 Procter & Gamble Co..................... 580,125
-----------
1,252,725
-----------
CONSUMER SERVICES -- 1.4%
13,300 Darden Restaurants, Inc................. 290,106
1,850 Vodafone Airtouch PLC ADR............... 364,450
-----------
654,556
-----------
ELECTRONICS -- 5.5%
*6,500 Analog Devices, Inc..................... 326,218
7,100 General Electric Company................ 802,300
17,000 Intel Corporation....................... 1,011,500
3,000 Texas Instruments, Inc.................. 435,000
-----------
2,575,018
-----------
ENERGY & SERVICES -- 5.0%
2,300 Atlantic Richfield Company.............. 192,193
3,300 Exxon Corporation....................... 254,512
13,300 Noble Affiliates, Inc................... 374,893
19,900 Pennzoil-Quaker State Company........... 298,500
4,000 Royal Dutch Petroleum................... 241,000
5,100 Sunoco, Inc............................. 153,956
500 Transocean Offshore, Inc. 13,125.....
8,900 Transocean Offshore, Inc................ 233,625
34,900 Union Pacific Resources Group, Inc...... 569,306
-----------
2,331,110
-----------
FINANCIAL SERVICES -- 14.3%
3,300 American International Group, Inc....... 386,306
7,400 Associates First Capital Corporation.... 327,912
4,000 Chase Manhattan Corp.................... 346,500
1,900 CIGNA Corporation....................... 169,100
30,000 Citigroup, Inc.......................... 1,425,000
5,500 City National Corporation............... 205,906
<CAPTION>
MARKET
SHARES VALUE
- ---------- -----------
<C> <S> <C>
</TABLE>
FINANCIAL SERVICES -- (CONTINUED)
<TABLE>
<C> <S> <C>
5,800 Conseco, Inc............................ $ 176,537
14,200 Cullen/Frost Bankers, Inc............... 391,387
7,100 Edwards (A.G.) & Sons, Inc.............. 228,975
3,300 Federal Home Loan Mortgage Corporation.. 191,400
6,600 Federal National Mortgage Association... 451,275
5,100 FINOVA Group, Inc....................... 268,387
5,900 Lincoln National Corporation............ 308,643
3,700 Marsh & McLennan Companies, Inc......... 279,350
2,200 Merrill Lynch & Co., Inc................ 175,862
8,300 National City Corporation............... 543,650
13,600 Pacific Century Financial Corporation... 293,250
6,200 UnionBanCal Corporation................. 223,975
3,300 Wachovia Corporation.................... 282,356
-----------
6,675,771
-----------
FOOD, BEVERAGE & TOBACCO -- 4.7%
14,500 Anheuser-Busch Companies, Inc........... 1,028,593
900 Coca-Cola Company, (The)................ 56,250
10,100 Nabisco Group Holdings Corp............. 197,581
19,600 Philip Morris Co., Inc.................. 787,675
3,200 Reynolds (R.J.) Tobacco Holdings,
Inc..................................... 100,799
-----------
2,170,898
-----------
HEALTH CARE -- 9.9%
15,900 Abbott Laboratories..................... 723,450
5,000 American Home Products Corporation...... 287,500
*5,900 Amgen, Inc.............................. 359,162
8,300 Bergen Brunswig Corporation............. 143,175
*12,000 Boston Scientific Corporation........... 527,250
4,400 Bristol-Myers Squibb Company............ 309,925
6,600 Cardinal Health, Inc.................... 423,225
9,700 Columbia/HC Healthcare Corporation...... 221,281
*9,600 Genzyme Corporation..................... 465,600
*1,718 Genzyme Surgical Products............... 7,572
3,800 Johnson & Johnson Co.................... 372,400
4,400 Merck & Co., Inc........................ 325,600
3,100 Pharmacia & Upjohn, Inc................. 176,118
3,700 Warner-Lambert Company.................. 256,687
-----------
4,598,945
-----------
INDUSTRIAL MATERIALS -- 3.3%
14,000 Engelhard Corporation................... 316,750
10,500 Freeport-McMoRan Copper & Gold, Inc..... 175,875
*9,800 Grace (W.R.) & Co....................... 180,075
3,000 Minerals Technologies, Inc.............. 167,437
5,100 Monsanto Company........................ 201,131
2,400 Temple-Inland, Inc...................... 163,800
3,000 Weyerhaeuser Company.................... 206,250
3,000 Willamette Industries, Inc.............. 138,187
-----------
1,549,505
-----------
MANUFACTURING -- 3.3%
5,700 Caterpillar, Inc........................ 342,000
6,500 Corning, Inc............................ 455,812
9,279 Delphi Automotive Systems Corporation... 172,232
2,400 Eaton Corporation....................... 220,800
8,600 York International Corp................. 368,187
-----------
1,559,031
-----------
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THIS FINANCIAL STATEMENT.
37
<PAGE>
THE HARTFORD GROWTH AND INCOME FUND
- --------------------------------------------------------------------------------
STATEMENT OF NET ASSETS -- (CONTINUED)
JUNE 30, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
- ---------- -----------
<C> <S> <C>
</TABLE>
COMMON STOCKS -- (CONTINUED)
<TABLE>
<C> <S> <C>
MEDIA & SERVICES -- 1.9%
*3,900 America Online, Inc..................... $ 430,950
6,500 Gannett Co., Inc........................ 463,937
-----------
894,887
-----------
RETAIL -- 8.5%
5,500 Dayton-Hudson Corp...................... 357,500
16,650 Gap, Inc. (The)......................... 838,743
10,000 Home Depot, Inc. (The).................. 644,375
8,600 May Department Stores Company........... 351,525
7,400 McDonald's Corporation.................. 305,712
30,000 Wal-Mart Stores, Inc.................... 1,447,500
-----------
3,945,355
-----------
SOFTWARE & SERVICES -- 5.9%
*5,500 Bisys Group, Inc. (The)................. 321,750
*3,000 BMC Software, Inc....................... 162,000
*22,300 Microsoft Corporation................... 2,011,181
*8,700 Sterling Software, Inc.................. 232,181
-----------
2,727,112
-----------
TRANSPORTATION -- 0.5%
5,500 USFreightways Corporation............... 254,718
-----------
UTILITIES -- 11.2%
1,400 ALLTEL Corp............................. 100,100
11,700 Ameritech Corporation................... 859,950
12,450 AT&T Corp............................... 694,865
17,600 Bell Atlantic Corporation............... 1,150,600
9,400 BellSouth Corp.......................... 440,625
3,300 DQE, Inc................................ 132,412
3,400 El Paso Energy Corporation.............. 119,637
8,600 GPU, Inc................................ 362,812
*7,000 MCI WorldCom, Inc....................... 603,750
7,100 SBC Communications, Inc................. 411,800
3,000 Sprint Corporation (FON Group).......... 158,437
5,100 Unicom Corporation...................... 196,668
5,231,656
-----------
Total common stocks..................... $43,235,858
-----------
-----------
<CAPTION>
PRINCIPAL
AMOUNT
- ----------
<C> <S> <C>
SHORT-TERM SECURITIES -- 6.3%
REPURCHASE AGREEMENT -- 6.3%
$2,943,000 Interest in $1,933,099,000 joint
repurchase agreement dated 06/30/99 with
State Street Bank 4.822% due 07/01/99;
maturity amount $2,943,394
(Collateralized by $125,000,000 U.S.
Treasury Notes 6.625% due 05/15/07,
$1,170,609,000 U.S. Treasury Bonds
6.125% - 12.000% due 08/15/13 -
11/15/27, $637,490,000 U.S. Treasury
Strips (principal) 0.00% due 06/30/00 -
05/15/15................................ $ 2,943,000
-----------
-----------
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C>
<CAPTION>
MARKET
VALUE
-----------
<S> <C> <C>
DIVERSIFICATION OF NET ASSETS:
Total common stocks (cost
$37,631,503)........................... 92.8% $43,235,858
Total short-term securities (cost
$2,943,000)............................ 6.3 2,943,000
------ -----------
Total investment in securities
(total cost $40,574,503)............... 99.1 46,178,858
Cash, receivables and other assets...... 2.9 1,340,934
Payable for securities purchased........ (2.0) (915,258)
Payable for Fund shares redeemed........ (0.0) (32,504)
------ -----------
Net assets.............................. 100.0% $46,572,030
------ -----------
------ -----------
</TABLE>
<TABLE>
<S> <C>
SUMMARY OF SHAREHOLDERS' EQUITY:
Capital stock, par value $0.001 per share;
300,000,000 shares authorized; 3,641,693 shares
outstanding...................................... $ 3,642
Paid-in surplus................................... 40,681,043
Distribution in excess of net investment income... (40,101)
Accumulated undistributed net realized gain on
investments...................................... 252,009
Unrealized appreciation of investments............ 5,604,349
Unrealized appreciation of futures contracts ++... 71,088
-----------
Net assets........................................ $46,572,030
-----------
-----------
</TABLE>
<TABLE>
<S> <C>
Class A
Net assets value per share ($27,254,383
DIVIDED BY 2,125,604 shares outstanding)
(125,000,000 shares authorized)................ $12.82
------
------
Maximum offering price per share ($12.82
DIVIDED BY 94.5%)............................. $13.57
------
------
Class B
Net assets value per share ($8,370,116
DIVIDED BY 657,061 shares outstanding)
(75,000,000 shares authorized)................. $12.74
------
------
Class C
Net assets value per share ($10,513,366
DIVIDED BY 825,333 shares outstanding)
(50,000,000 shares authorized)................. $12.74
------
------
Maximum offering price per share ($12.74
DIVIDED BY 99.0%)............................. $12.87
------
------
Class Y
Net assets value per share ($434,165
DIVIDED BY 33,695 shares outstanding)
(50,000,000 shares authorized)................. $12.89
------
------
</TABLE>
* Non-income producing during period.
++ The Fund had 6 Standard & Poor's 500 September 1999 futures contracts open
as of June 30, 1999. These contracts had a value of $2,072,550 as of June
30, 1999 and were collateralized by $112,500 of cash.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THIS FINANCIAL STATEMENT.
38
<PAGE>
THE HARTFORD HIGH YIELD FUND
- --------------------------------------------------------------------------------
STATEMENT OF NET ASSETS
JUNE 30, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
- ---------- -----------
<C> <S> <C>
COLLATERALIZED MORTGAGE OBLIGATIONS -- 0.3%
$ 100,000 DLJ Commercial Mortgage Corp., Series
1998-CF1, Class B2
7.33% due 01/15/10................... $ 91,184
-----------
-----------
<CAPTION>
SHARES
- ----------
<C> <S> <C>
CONVERTIBLE PREFERRED STOCK -- 0.7%
FINANCIAL SERVICES -- 0.7%
8,000 Coastal Finance Corp.................... $ 197,500
-----------
-----------
<CAPTION>
PRINCIPAL
AMOUNT
- ----------
<C> <S> <C>
CORPORATE NOTES -- 87.1%
CONSUMER DURABLES -- 1.2%
$ 200,000 Federal-Mogul Corp.
7.50% due 01/15/09................... $ 184,325
100,000 Federal-Mogul Corp.
7.375% due 01/15/06................... 94,163
75,000 Hayes Lemmerz International, Inc.
8.25% due 12/15/08.................. 71,437
-----------
349,925
-----------
CONSUMER NON-DURABLES -- 0.2%
50,000 Revlon Consumer Products Corp.
8.625% due 02/01/08................... 46,750
-----------
CONSUMER SERVICES -- 1.7%
100,000 Premier Parks, Inc.
9.75% due 06/15/07.................. 101,000
125,000 Simmons Company
10.25% due 03/15/09................... 126,875
250,000 Six Flags Entertainment Corp.
8.875% due 04/01/06................... 250,000
-----------
477,875
-----------
ENERGY AND SERVICES -- 13.4%
150,000 Belco Oil & Gas Corp.
8.875% due 09/15/07................... 147,750
175,000 Clark Refining & Marketing, Inc.
8.375% due 11/15/07................... 159,906
150,000 Clark Refining & Marketing, Inc.
8.625% due 08/15/08................... 139,500
225,000 CMS Energy Corp.
6.75% due 01/15/04.................. 212,724
50,000 Coda Energy Group
10.50% due 04/01/06.................. 51,375
125,000 Cogentrix Energy, Inc.
8.75% due 10/15/08.................. 124,375
50,000 Cross Timbers Oil Co.
8.75% due 11/01/09.................. 48,125
50,000 Gulf Canada Resources Ltd.
8.375% due 11/15/05.................. 49,125
100,000 Gulf Canada Resources Ltd.
9.625% due 07/01/05.................. 102,500
103,000 Nuevo Energy Co.
9.50% due 04/15/06.................. 102,485
275,000 Pioneer Natural Resource
7.20% due 01/15/28.................. 211,602
200,000 Pioneer Natural Resource
6.50% due 01/15/08.................. 170,690
<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
- ---------- -----------
<C> <S> <C>
</TABLE>
CORPORATE NOTES -- (CONTINUED)
ENERGY AND SERVICES -- (CONTINUED)
<TABLE>
<C> <S> <C>
$ 650,000 Pogo Producing Co.
10.375% due 02/15/09.................. $ 674,375
150,000 R&B Falcon Corp.
6.50% due 04/15/03.................. 127,125
100,000 R&B Falcon Corp.
7.375% due 04/15/18.................. 72,000
525,000 R&B Falcon Corp.
11.375% due 03/15/09.................. 543,375
425,000 Seagull Energy Corp.
7.50% due 09/15/27.................. 351,907
100,000 Tesoro Petroleum Corp.
9.00% due 07/01/08.................. 97,250
300,000 Tuboscope, Inc.
7.50% due 02/15/08.................. 261,000
125,000 Vintage Petroleum
9.75% due 06/30/09.................. 127,812
-----------
3,775,001
-----------
FINANCIAL SERVICES -- 1.3%
250,000 Sumitomo Bank International
8.50% due 06/15/09.................. 251,636
100,000 Trizec Finance Ltd.
10.875% due 10/15/05.................. 104,125
-----------
355,761
-----------
FOOD, BEVERAGE & TOBACCO -- 4.7%
450,000 Agrilink Foods, Inc.
11.875% due 11/01/08.................. 463,500
100,000 Canandaigua Brands, Inc.
8.50% due 03/01/09.................. 96,250
200,000 Chiquita Brands International, Inc.
10.25% due 11/01/06.................. 202,000
200,000 Chiquita Brands International, Inc.
10.00% due 06/15/09.................. 199,500
250,000 Keebler Corp.
10.75% due 07/01/06.................. 273,259
100,000 New World Pasta Company
9.25% due 02/15/09.................. 97,250
-----------
1,331,759
-----------
HEALTH CARE -- 3.2%
250,000 Columbia/HCA Healthcare Corp.
9.00% due 12/15/14................... 247,217
150,000 Express Scripts, Inc.
9.625% due 06/15/09................... 151,875
125,000 Quorum Health Group, Inc.
8.75% due 11/01/05................... 121,875
300,000 Tenet Healthcare Corp.
8.625% due 01/15/07................... 295,500
100,000 Tenet Healthcare Corp.
8.625% due 12/01/03................... 100,869
-----------
917,336
-----------
HOME BUILDING -- 2.2%
50,000 Del Webb Corp.
10.25% due 02/15/10................... 49,500
50,000 Del Webb Corp.
9.375% due 05/01/09................... 48,062
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THIS FINANCIAL STATEMENT.
39
<PAGE>
THE HARTFORD HIGH YIELD FUND
- --------------------------------------------------------------------------------
STATEMENT OF NET ASSETS -- (CONTINUED)
JUNE 30, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
- ---------- -----------
<C> <S> <C>
</TABLE>
CORPORATE NOTES -- (CONTINUED)
HOME BUILDING -- (CONTINUED)
<TABLE>
<C> <S> <C>
$ 200,000 Kaufman & Broad Home Corp.
9.625% due 11/15/06................... $ 209,000
100,000 MDC Holdings, Inc.
8.375% due 02/01/08................... 96,500
125,000 Toll Corp.
7.75% due 09/15/07................... 117,500
100,000 Toll Corp.
8.75% due 11/15/06................... 98,500
-----------
619,062
-----------
HOTELS & GAMING -- 6.0%
275,000 Circus Circus Enterprises, Inc.
7.625% due 07/15/13................... 248,033
400,000 Horseshoe Gaming Holdings
8.625% due 05/15/09................... 388,500
300,000 Host Marriot Properties
8.45% due 12/01/08................... 285,000
50,000 La Quinta Motor Inns
7.25% due 03/15/04................... 44,250
100,000 La Quinta Motor Inns
7.40% due 09/15/05................... 85,206
200,000 MGM Grand, Inc.
6.875% due 02/06/08................... 179,035
225,000 Park Place Entertainment
7.875% due 12/15/05................... 214,312
250,000 Starwood Hotels & Resorts
7.375% due 11/15/15................... 215,000
50,000 Starwood Hotels & Resorts
6.75% due 11/15/05................... 45,311
-----------
1,704,647
-----------
INDUSTRIAL -- 10.7%
175,000 Agriculture Minerals and Chemicals Co.
10.75% due 09/30/03................... 173,468
300,000 AK Steel
7.875% due 02/15/09................... 288,000
225,000 Arco Chemical Co.
9.80% due 02/01/20................... 219,712
100,000 Bethlehem Steel
7.625% due 08/01/04................... 94,244
100,000 Borden Chemical, Inc.
9.50% due 05/01/05.................. 95,500
145,000 Domtar, Inc.
8.75% due 08/01/06.................. 150,075
300,000 Domtar, Inc.
9.50% due 08/01/16.................. 318,000
125,000 Equistar Chemicals LP
8.75% due 02/15/09.................. 126,338
275,000 Fisher Scientific International, Inc.
9.00% due 02/01/08.................. 261,250
75,000 Fisher Scientific International, Inc.
9.00% due 02/01/08.................. 71,250
100,000 General Chemical Industrial
10.625% due 05/01/09.................. 100,500
300,000 Huntsman Corp.
9.50% due 07/01/07.................. 283,500
175,000 Huntsman ICI Chemical
10.125% due 07/01/09.................. 176,750
<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
- ---------- -----------
<C> <S> <C>
</TABLE>
INDUSTRIAL -- (CONTINUED)
<TABLE>
<C> <S> <C>
$ 125,000 ISP Holdings, Inc.
9.00% due 10/15/03.................. $ 124,375
50,000 Lyondell Chemical Co.
9.625% due 05/01/07.................. 51,375
125,000 Oregon Steel Mills
11.00% due 06/15/03.................. 131,562
150,000 Polaroid Corporation
11.50% due 02/15/06................... 159,375
35,000 Terra Industries, Inc.
10.50% due 06/15/05.................. 33,600
170,000 WHX Corp.
10.50% due 04/15/05.................. 160,225
-----------
3,019,099
-----------
MANUFACTURING -- 0.3%
100,000 American Standard Companies
7.375% due 04/15/05................... 95,500
-----------
MEDIA AND SERVICES -- 13.2%
147,000 Adelphia Communications Corp.
9.25% due 10/01/02.................. 148,837
75,000 Big Flower Press Holdings
8.625% due 12/01/08.................. 69,000
200,000 Chancellor Media Corp. of Los Angeles
8.75% due 06/15/07.................. 199,250
500,000 Charter Communication International
8.625% due 04/01/09................... 480,000
200,000 CSC Holdings, Inc.
9.875% due 02/15/13.................. 213,500
275,000 Echostar Communications Corp.
9.25% due 02/01/06................... 278,093
200,000 Echostar Communications Corp.
9.375% due 02/01/09................... 203,500
275,000 Fox Family Worldwide, Inc.
9.25% due 11/01/07.................. 255,062
150,000 Fox/Liberty Networks LLC
8.875% due 08/15/07.................. 155,625
100,000 Hollinger International Publishing, Inc.
9.25% due 02/01/06.................. 102,125
125,000 Jones Intercable, Inc.
9.625% due 03/15/02................... 131,875
100,000 Jones Intercable, Inc.
10.50% due 03/01/08................... 107,000
125,000 Lanfest Communications
10.50% due 06/15/06................... 143,750
200,000 Liberty Media
7.875% due 07/15/09.................. 198,808
250,000 Primedia, Inc.
10.25% due 06/01/04.................. 261,875
200,000 Regal Cinemas, Inc.
9.50% due 06/01/08.................. 187,000
242,000 Rogers Cablesystems, Inc.
10.125% due 09/01/12.................. 259,242
150,000 Rogers Cablesystems, Inc.
9.625% due 08/01/02.................. 156,750
175,000 World Color Press, Inc.
7.75% due 02/15/09................... 164,500
-----------
3,715,792
-----------
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THIS FINANCIAL STATEMENT.
40
<PAGE>
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
- ---------- -----------
<C> <S> <C>
</TABLE>
CORPORATE NOTES -- (CONTINUED)
<TABLE>
<C> <S> <C>
PACKAGES & CONTAINERS -- 3.0%
$ 115,000 Ball Corp.
8.25% due 08/01/08................... $ 113,275
175,000 Container Corp. of America
11.25% due 05/01/04................... 182,875
162,000 Owens-Illinois, Inc.
7.80% due 05/15/18................... 147,640
250,000 Packaging Corp. of America
9.625% due 04/01/09................... 253,750
125,000 Stone Container Corp.
12.58% due 08/01/16................... 137,343
-----------
834,883
-----------
RETAIL -- 4.8%
400,000 Ames Department Stores
10.00% due 04/15/06................... 392,500
275,000 Duane Reade, Inc.
9.25% due 02/15/08................... 277,750
72,000 Kmart Corp.
12.50% due 03/01/05................... 84,617
50,000 Kmart Corp.
7.75% due 10/01/12................... 49,648
475,000 Kmart Corp.
7.95% due 02/01/23................... 460,967
90,000 Nine West Group, Inc.
8.375% due 08/15/05................... 92,700
-----------
1,358,182
-----------
SHIPBUILDING -- 0.5%
150,000 Newport News Shipbuilding
9.25% due 12/01/06................... 155,250
-----------
TECHNOLOGY -- 2.5%
100,000 Advanced Micro Devices
11.00% due 08/01/03................... 100,500
450,000 Condor Systems, Inc.
11.875% due 05/01/09.................. 434,250
150,000 Unisys Corp.
12.00% due 04/15/03................... 163,500
-----------
698,250
-----------
TELECOMMUNICATIONS -- 12.1%
200,000 Call-Net Enterprises, Inc.
8.00% due 08/15/08................... 176,000
150,000 Call-Net Enterprises, Inc.
9.375% due 05/15/09................... 142,875
200,000 Comcast Cellular Holdings Corp.
9.50% due 05/01/07................... 223,750
150,000 Flag Limited
8.25% due 01/30/08................... 141,000
175,000 Hyperion Telecommunication
12.00% due 11/01/07................... 178,937
300,000 Level 3 Communications
9.125% due 05/01/08................... 294,750
250,000 Loral Space & Communications
9.50% due 01/15/06................... 216,875
100,000 McLeod USA, Inc.
8.125% due 02/15/09.................. 92,500
100,000 McLeod USA, Inc.
9.25% due 07/15/07.................. 99,250
<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
- ---------- -----------
<C> <S> <C>
</TABLE>
TELECOMMUNICATIONS -- (CONTINUED)
<TABLE>
<C> <S> <C>
$ 100,000 McLeod USA, Inc.
9.50% due 11/08/08.................. $ 99,250
200,000 Metromedia Fiber Network
10.00% due 11/15/08................... 205,500
125,000 Nextel Communications
9.75% due 08/15/04.................. 127,187
200,000 Nextlink Communications
10.75% due 06/01/09.................. 205,000
150,000 Nextlink Communications
12.50% due 04/15/06.................. 159,750
100,000 Nextlink Communications
10.75% due 11/15/08.................. 102,250
125,000 Price Communications
9.125% due 12/15/06.................. 126,250
75,000 PSINet, Inc.
10.00% due 02/15/05.................. 75,375
75,000 Rogers Cantel Mobile, Inc.
9.75% due 06/01/16.................. 83,062
150,000 Rogers Cantel Mobile, Inc.
9.375% due 06/01/08.................. 155,437
100,000 Telewest Communications PLC
11.25% due 11/01/08.................. 112,250
50,000 Telewest Communications PLC
9.625% due 10/01/06.................. 51,500
250,000 Teligent, Inc.
11.50% due 12/01/07.................. 247,500
100,000 Time Warner Telecommunications LLC
9.75% due 07/15/08.................. 102,500
-----------
3,418,748
-----------
TEXTILE -- 0.3%
100,000 Westpoint Stevens, Inc.
7.875% due 06/15/05.................. 98,000
-----------
TRANSPORTATION -- 1.5%
50,000 AMR Corp.
10.00% due 03/07/01.................. 52,500
75,000 Interpool, Inc.
7.35% due 08/01/07.................. 70,666
200,000 Teekay Shipping Corp.
8.32% due 02/01/08.................. 188,750
100,000 United Airlines, Inc.
9.125% due 01/15/12.................. 108,055
-----------
419,971
-----------
UTILITIES -- 3.4%
160,000 AES Corp. Senior Subordinated Note
9.50% due 06/01/09................... 164,400
75,000 AES Corp. Senior Subordinated Note
10.25% due 07/15/06................... 76,687
100,000 Calpine Corp.
7.625% due 04/15/06.................. 94,125
200,000 Calpine Corp.
9.25% due 02/01/04.................. 202,500
225,000 Connecticut Light & Power Co.
7.875% due 10/01/24.................. 230,460
125,000 El Paso Electric Co.
9.40% due 05/01/11.................. 138,398
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THIS FINANCIAL STATEMENT.
41
<PAGE>
THE HARTFORD HIGH YIELD FUND
- --------------------------------------------------------------------------------
STATEMENT OF NET ASSETS -- (CONTINUED)
JUNE 30, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
- ---------- -----------
<C> <S> <C>
</TABLE>
CORPORATE NOTES -- (CONTINUED)
UTILITIES -- (CONTINUED)
<TABLE>
<C> <S> <C>
$ 50,000 Public Service Company of New Mexico
7.10% due 08/01/05.................. $ 49,320
-----------
955,890
-----------
WASTE MANAGEMENT -- 0.9%
185,000 Allied Waste North American
7.625% due 01/01/06.................. 172,281
100,000 Browning-Ferris, Inc.
7.40% 09/15/35...................... 80,584
-----------
252,865
-----------
Total corporate notes................... $24,600,546
-----------
-----------
FOREIGN/YANKEE BONDS & NOTES -- 7.5%
FOREIGN CORPORATIONS -- 1.3%
400,000 Petroleos Mexicanos
9.50% due 09/15/27.................. $ 377,000
-----------
FOREIGN GOVERNMENTS -- 6.2%
250 Republic of Argentina
8.38% due 12/20/03.................. 1,750
175,000 Republic of Brazil
11.625% due 04/15/04.................. 164,718
100,000 Republic of Colombia
8.375% due 02/15/27.................. 70,405
1,250,000 Republic of Ecuador
6.00% due 02/28/25.................. 578,906
250,000 Republic of Panama
8.875% due 09/30/27.................. 205,000
250,000 Republic of Venezuela
6.75% due 03/31/20.................. 173,281
200,000 Russian Federation (The)
12.75% due 06/24/28.................. 111,250
300,000 United Mexican States
6.25% due 12/31/19.................. 222,562
250,000 United Mexican States Discount Bond
6.0975% due 12/31/19.................. 208,437
-----------
1,736,309
-----------
Total foreign/yankee bonds & notes...... $ 2,113,309
-----------
-----------
SHORT-TERM SECURITIES -- 0.9%
REPURCHASE AGREEMENT -- 0.9%
245,000 Interest in $153,141,000 joint
repurchase agreement dated 06/30/99 with
State Street Bank 4.800% due 07/01/99;
maturity amount $245,033 (Collateralized
by $153,141,000 U.S. Treasury Bonds
8.125% due 05/15/21).................... $ 245,000
-----------
-----------
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C>
<CAPTION>
MARKET
VALUE
-----------
<S> <C> <C>
DIVERSIFICATION OF NET ASSETS:
Total collateralized mortgage
obligations (cost $93,604)............. 0.3% $ 91,184
Total convertible preferred stock (cost
$196,000).............................. 0.7 197,500
Total corporate notes (cost
$24,846,332)........................... 87.1 24,600,546
Total foreign/yankee bonds & notes (cost
$2,164,168)............................ 7.5 2,113,309
Total short-term securities (cost
$245,000).............................. 0.9 245,000
----- -----------
Total investment in securities (total
cost $27,545,104)...................... 96.5 27,247,539
Cash, receivables and other assets...... 5.0 1,406,363
Payable for securities purchased........ (1.2) (324,972)
Payable for Fund shares redeemed........ (0.3) (78,842)
----- -----------
Net assets.............................. 100.0% $28,250,088
----- -----------
----- -----------
</TABLE>
<TABLE>
<S> <C>
SUMMARY OF SHAREHOLDERS' EQUITY:
Capital stock, par value $0.001 per share;
300,000,000 shares authorized; 2,813,643 shares
outstanding...................................... $ 2,814
Paid-in surplus................................... 28,492,630
Accumulated undistributed net investment income... 17,202
Accumulated undistributed net realized gain on
investments...................................... 35,007
Unrealized depreciation of investments............ (297,565)
-----------
Net assets........................................ $28,250,088
-----------
-----------
</TABLE>
<TABLE>
<S> <C>
Class A
Net assets value per share ($14,695,944
DIVIDED BY 1,463,396 shares outstanding)
(125,000,000 shares authorized)................ $10.04
------
------
Maximum offering price per share ($10.04
DIVIDED BY 95.5%)............................. $10.52
------
------
Class B
Net assets value per share ($4,925,104
DIVIDED BY 490,813 shares outstanding)
(75,000,000 shares authorized)................. $10.04
------
------
Class C
Net assets value per share ($6,373,261
DIVIDED BY 635,103 shares outstanding)
(50,000,000 shares authorized)................. $10.03
------
------
Maximum offering price per share ($10.03
DIVIDED BY 99.0%)............................. $10.14
------
------
Class Y
Net assets value per share ($2,255,779
DIVIDED BY 224,331 shares outstanding)
(50,000,000 shares authorized)................. $10.06
------
------
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THIS FINANCIAL STATEMENT.
42
<PAGE>
THE HARTFORD GLOBAL LEADERS FUND
- --------------------------------------------------------------------------------
STATEMENT OF NET ASSETS
JUNE 30, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
- ------- -----------
<C> <S> <C>
COMMON STOCKS -- 93.4%
BRAZIL -- 0.3%
1,190 Telecomunicacoes Brasileiras S.A.
(Utilities)............................. $ 107,323
-----------
FINLAND -- 1.6%
6,620 Nokia Oy (Communications Equipment)..... 580,296
-----------
FRANCE -- 5.3%
1,300 Accor S.A. (Consumer Services).......... 326,449
4,100 Banque National de Paris (Financial
Services)............................... 341,639
200 L'oreal (Consumer Non-Durables)......... 135,199
2,000 Pinault-Printemps-Redoute S.A.
(Retail)................................ 343,207
3,230 Total S.A. - B Shares (Energy &
Services)............................... 416,709
4,360 Vivendi (Utilities)..................... 353,187
-----------
1,916,390
-----------
GERMANY -- 4.8%
4,070 DaimlerChrysler AG (Consumer
Durables)............................... 355,509
6,900 Deutsche Bank AG (Financial Services)... 420,542
3,030 Mannesmann AG (Media & Services)........ 453,089
6,680 Siemens AG (Electronics)................ 515,289
-----------
1,744,429
-----------
IRELAND -- 0.9%
*6,500 Ryanair Holdings PLC - ADR (Consumer
Services)............................... 344,500
-----------
JAPAN -- 14.0%
21,000 Dai Nippon Printing Co. (Media &
Services)............................... 335,726
20,000 Fujitsu Limited (Electronics)........... 402,359
37,000 Hitachi Ltd. (Electronics).............. 346,962
10,000 Kao Corporation (Consumer
Non-Durables)........................... 280,907
4,000 Matsushita Communication Industrial Co.,
Ltd. (Communications Equipment)......... 285,864
1,300 NIDEC Corp. (Computers & Office
Equipment).............................. 195,586
58,000 Nikko Securities Co. (Financial
Services)............................... 374,251
420 Nippon Telegraph & Telephone Corp.
(Utilities)............................. 489,275
30,000 Olympus Optical Co., Ltd. (Health
Care)................................... 443,421
30,000 Sharp Corporation (Computers & Office
Equipment).............................. 354,439
1,500 Softbank Corp. (Software & Services).... 303,752
4,170 Sony Corporation (Media & Services)..... 449,605
4,200 Takefuji Corp. (Financial Services)..... 434,101
59,810 Toshiba Corporation (Computers & Office
Equipment).............................. 426,451
-----------
5,122,699
-----------
MEXICO -- 0.4%
3,500 Grupo Televisa S.A. (Media &
Services)............................... 156,843
-----------
NETHERLANDS -- 4.9%
6,830 ING Groep N.V. (Financial Services)..... 369,788
13,082 Koninklijke Ahold N.V. (Retail)......... 450,602
*4,766 Koninklijke Philips Electronics N.V.
(Electronics)........................... 470,084
7,341 Unilever N.V. CVA (Consumer
Non-Durables)........................... 494,741
-----------
1,785,215
-----------
SPAIN -- 1.6%
12,070 Telefonica S.A. (Utilities)............. 581,420
-----------
SWEDEN -- 1.7%
16,000 Assa Abloy AB (Business Services)....... 173,140
*17,670 Hennes & Mauritz (Retail)............... 436,463
-----------
609,603
-----------
SWITZERLAND -- 2.0%
2,480 Credit Suisse Group (Financial
Services)............................... 429,129
<CAPTION>
MARKET
SHARES VALUE
- ------- -----------
<C> <S> <C>
</TABLE>
SWITZERLAND -- (CONTINUED)
<TABLE>
<C> <S> <C>
160 Nestle S.A. (Food, Beverage &
Tobacco)................................ $ 288,281
-----------
717,410
-----------
UNITED KINGDOM -- 8.4%
21,200 British American Tobacco PLC (Food,
Beverage & Tobacco)..................... $ 197,831
31,150 British Petroleum Co., PLC (Energy &
Services)............................... 557,795
25,300 British Telecommunications PLC
(Utilities)............................. 422,732
*14,400 COLT Telecom Group PLC (Utilities)...... 302,346
7,600 HSBC Holdings PLC (Financial
Services)............................... 269,547
56,600 Invensys PLC (Electronics).............. 268,101
38,850 SmithKline Beecham PLC (Health Care).... 504,305
27,170 Vodafone Group PLC (Media & Services)... 537,064
-----------
3,059,721
-----------
UNITED STATES OF AMERICA -- 47.5%
4,200 Alcoa, Inc. (Industrial Materials)...... 259,875
7,300 AlliedSignal, Inc. (Aerospace &
Defense)................................ 459,900
4,160 American International Group, Inc.
(Financial Services).................... 486,980
*7,400 AMR Corporation (Consumer Services)..... 505,050
7,750 Associates First Capital Corporation
(Financial Services).................... 343,421
8,995 AT&T Corp. (Utilities).................. 502,033
9,510 Automatic Data Processing, Inc.
(Software & Services)................... 418,440
8,400 Bristol-Myers Squibb Company (Health
Care)................................... 591,675
5,500 Caterpillar, Inc. (Manufacturing)....... 330,000
*10,640 Cisco Systems, Inc. (Communications
Equipment).............................. 686,280
12,610 Citigroup, Inc. (Financial Services).... 598,975
4,400 Colgate-Palmolive Company (Consumer
Non-Durables)........................... 434,500
2,500 Corning, Inc. (Manufacturing)........... 175,312
6,280 Exxon Corporation (Energy & Services)... 484,345
9,195 Gap, Inc. (The) (Retail)................ 463,198
8,280 General Electric Company
(Electronics)........................... 935,640
8,800 Home Depot, Inc. (The) (Retail)......... 567,050
4,900 Illinois Tool Works, Inc.
(Manufacturing)......................... 401,800
8,900 Intel Corporation (Electronics)......... 529,550
5,100 International Business Machines Corp.
(Computers & Office Equipment).......... 659,202
4,400 Johnson & Johnson Co. (Health Care)..... 431,200
9,100 Lucent Technologies, Inc.
(Communications Equipment).............. 613,681
7,890 Marsh & McLennan Companies, Inc.
(Financial Services).................... 595,695
6,280 McDonald's Corporation (Consumer
Services)............................... 259,442
*5,480 MCI WorldCom, Inc. (Utilities).......... 472,650
*10,010 Micron Technology, Inc. (Electronics)... 403,528
*7,560 Microsoft Corporation (Software &
Services)............................... 681,817
3,500 Morgan Stanley, Dean Witter, Discover
and Co. (Financial Services)............ 358,750
4,880 Pharmacia & Upjohn (Health Care)........ 269,779
*3,600 Qualcomm (Communications Equipment)..... 516,600
5,630 Schlumberger Ltd. (Energy & Services)... 358,560
4,230 Texas Instruments, Inc. (Electronics)... 613,350
4,610 Tyco International, Ltd.
(Manufacturing)......................... 436,797
14,060 Wal-Mart Stores, Inc. (Retail).......... 678,395
6,700 Warner-Lambert Company (Health Care).... 464,812
5,100 Weyerhaeuser Company (Industrial
Materials).............................. 350,625
-----------
17,338,907
-----------
Total common stocks..................... $34,064,756
-----------
-----------
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THIS FINANCIAL STATEMENT.
43
<PAGE>
THE HARTFORD GLOBAL LEADERS FUND
- --------------------------------------------------------------------------------
STATEMENT OF NET ASSETS -- (CONTINUED)
JUNE 30, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
- ------- -----------
<C> <S> <C>
SHORT-TERM SECURITIES -- 8.7%
REPURCHASE AGREEMENT -- 8.7%
$3,178,000 Interest in $1,933,099,000 joint
repurchase agreement dated 06/30/99 with
State Street Bank 4.822% due 07/01/99;
maturity amount $3,178,426
(Collateralized by $125,000,000 U.S.
Treasury Notes 6.625% due 05/15/07,
$1,170,609,000 U.S. Treasury Bonds
6.125% - 12.000% due 08/15/13 -
11/15/27, $637,490,000 U.S. Treasury
Strips (principal) 0.00% due 06/30/00 -
05/15/15................................ $3,178,000
----------
----------
</TABLE>
<TABLE>
<CAPTION>
<S> <C>
SUMMARY OF SHAREHOLDERS' EQUITY:
Capital stock, par value $0.001 per share;
300,000,000 shares authorized; 2,566,267 shares
outstanding...................................... $ 2,566
Paid-in surplus................................... 33,607,329
Accumulated undistributed net investment income... 43,241
Accumulated undistributed net realized gain on
investments...................................... 803,764
Unrealized appreciation of investments............ 2,024,185
Unrealized depreciation of forward foreign
currency contracts (See Note 2) o................ (3,651)
Unrealized appreciation of other assets and
liabilities in foreign currencies................ 2,373
-----------
Net assets........................................ $36,479,808
-----------
-----------
</TABLE>
<TABLE>
<S> <C>
Class A
Net assets value per share
($21,871,447 DIVIDED BY 1,536,204 shares
outstanding) (125,000,000 shares authorized)... $14.24
------
------
Maximum offering price per share
($14.24 DIVIDED BY 94.5%).................... $15.07
------
------
Class B
Net assets value per share ($5,760,668
DIVIDED BY 406,767 shares outstanding)
(75,000,000 shares authorized)................. $14.16
------
------
Class C
Net assets value per share ($6,749,971
DIVIDED BY 476,471 shares outstanding)
(50,000,000 shares authorized)................. $14.17
------
------
Maximum offering price per share ($14.17
DIVIDED BY 99.0%)............................. $14.31
------
------
Class Y
Net assets value per share ($2,097,722
DIVIDED BY 146,825 shares outstanding)
(50,000,000 shares authorized)................. $14.29
------
------
<CAPTION>
MARKET
VALUE
------
<S> <C>
</TABLE>
<TABLE>
<CAPTION>
<S> <C>
STATEMENT OF ASSETS AND LIABILITIES
ASSETS
Investments in securities, at value (total cost
$35,218,571) - see accompanying portfolio........ $37,242,756
Receivable for Investment securities sold......... 2,216,050
Receivable for Fund shares sold................... 1,051,158
Receivable for dividends and interest............. 72,639
Cash and other assets............................. 37,243
-----------
TOTAL ASSETS...................................... $40,619,846
-----------
LIABILITIES
Investment securities purchased................... $ 4,096,386
Fund shares redeemed.............................. 43,652
-----------
TOTAL LIABILITIES................................. 4,140,038
-----------
NET ASSETS, AT VALUE.............................. $36,479,808
-----------
-----------
</TABLE>
<TABLE>
<S> <C> <C>
DIVERSIFICATION BY INDUSTRY:
Aerospace & Defense..................... 1.3% $ 459,900
Business Services....................... 0.5 173,140
Communications Equipment................ 7.4 2,682,721
Computers & Office Equipment............ 4.5 1,635,678
Consumer Durables....................... 1.0 355,509
Consumer Non-Durables................... 3.7 1,345,347
Consumer Services....................... 3.9 1,435,441
Electronics............................. 12.3 4,484,863
Energy & Services....................... 5.0 1,817,409
Financial Services...................... 13.8 5,022,818
Food, Beverage & Tobacco................ 1.3 486,112
Health Care............................. 7.4 2,705,192
Industrial Materials.................... 1.7 610,500
Manufacturing........................... 3.7 1,343,909
Media & Services........................ 5.3 1,932,327
Retail.................................. 8.1 2,938,915
Software & Services..................... 3.8 1,404,009
Utilities............................... 8.9 3,230,966
----- -----------
Total Common Stocks..................... 93.4% $34,064,756
----- -----------
----- -----------
</TABLE>
* Non-income producing during period.
o FORWARD FOREIGN CURRENCY CONTRACTS OUTSTANDING AT JUNE 30, 1999
<TABLE>
<CAPTION>
TOTAL AGGREGATE DELIVERY UNREALIZED
DESCRIPTION MARKET VALUE FACE VALUE DATE (DEPRECATION)
- ------------------------------ ------------- ----------- --------- --------------
<S> <C> <C> <C> <C>
British Pounds (Sell) $486,227 $486,289 07/06/99 $ 62
British Pounds (Sell) 134,279 134,258 07/07/99 (21)
EURO Dollars (Buy) 410,028 411,296 07/02/99 (1,268)
EURO Dollars (Buy) 141,112 141,527 07/02/99 (415)
EURO Dollars (Buy) 78,097 78,356 07/06/99 (259)
EURO Dollars (Buy) 132,060 132,730 07/30/99 (670)
Japanese Yen (Buy) 459,868 460,588 07/02/99 (720)
Japanese Yen (Buy) 572,335 572,695 07/02/99 (360)
$ (3,651)
--------------
--------------
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THIS FINANCIAL STATEMENT.
44
<PAGE>
This page intentionally left blank
<PAGE>
THE HARTFORD MUTUAL FUNDS, INC.
- --------------------------------------------------------------------------------
STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED AS OF JUNE 30, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
THE HARTFORD THE HARTFORD THE HARTFORD
MONEY BOND INCOME THE HARTFORD DIVIDEND AND
MARKET FUND STRATEGY FUND ADVISERS FUND GROWTH FUND
------------- -------------- -------------- -------------
<S> <C> <C> <C> <C>
INVESTMENT INCOME:
Dividends............................. $ -- $ -- $ 3,578,759 $ 3,839,963
Interest.............................. 1,481,549 2,944,616 10,870,036 237,833
Less: Foreign tax withheld............ -- -- (124,508) (37,520)
------------- -------------- -------------- -------------
Total investment income............. 1,481,549 2,944,616 14,324,287 4,040,278
------------- -------------- -------------- -------------
EXPENSES:
Investment advisory fees.............. 149,282 304,820 3,341,854 1,306,417
Transfer agent fees................... 66,758 102,460 71,941 405,440
Distribution fees
Class A............................. 54,159 78,649 627,964 297,854
Class B............................. 73,202 95,990 1,659,821 567,612
Class C............................. 12,345 45,462 711,451 83,217
Custodian fees gross.................. 4,923 7,977 7,551 7,570
Custodian fee expense offset.......... (1,847) (3,537) (1,800) (3,413)
Accounting fees....................... 4,484 7,047 71,941 26,172
Registration and filing fees.......... 8,928 14,681 180,731 47,128
Board of directors fees............... 429 675 6,889 2,506
Amortization of deferred
organizational costs................. 3,737 3,737 -- --
Other expenses........................ 8,409 12,975 1,248,336 59,516
------------- -------------- -------------- -------------
Total expenses (before waivers and
reimbursements).................... 384,809 670,936 7,926,679 2,800,019
Expense waivers and reimbursements.... (40,329) (14,074) -- --
------------- -------------- -------------- -------------
Total expenses, net................... 344,480 656,862 7,926,679 2,800,019
------------- -------------- -------------- -------------
Net investment income (loss).......... 1,137,069 2,287,754 6,397,608 1,240,259
------------- -------------- -------------- -------------
NET REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS:
Net realized gain (loss) on
investments.......................... 362 (586,101) 12,432,143 9,520,603
Net realized gain (loss) on forward
foreign currency contracts........... -- -- -- --
Net realized gain (loss) on option
contracts............................ -- -- -- 27,802
Net realized gain (loss) on futures
contracts............................ -- -- -- --
Net realized gain (loss) on foreign
currency transactions................ -- -- -- --
Net unrealized appreciation
(depreciation) of investments........ -- (4,476,949) 52,167,430 13,425,777
Net unrealized appreciation
(depreciation) of future contracts... -- -- -- --
Net unrealized appreciation
(depreciation) of foreign foward
currency contracts................... -- -- -- --
Net unrealized appreciation
(depreciation) of purchased
options.............................. -- -- -- 3,584
Net unrealized appreciation
(depreciation) on translation of
other assets and liabilities in
foreign currencies................... -- -- -- --
------------- -------------- -------------- -------------
Net realized and unrealized gain
(loss) on investments................ 362 (5,063,051) 64,599,573 22,977,767
------------- -------------- -------------- -------------
Net increase in net assets resulting
from operations...................... $1,137,431 $(2,775,296) $70,997,181 $24,218,025
------------- -------------- -------------- -------------
------------- -------------- -------------- -------------
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THIS FINANCIAL STATEMENT.
46
<PAGE>
<TABLE>
<CAPTION>
THE HARTFORD THE HARTFORD THE HARTFORD
THE HARTFORD CAPITAL SMALL INTERNATIONAL THE HARTFORD
STOCK FUND APPRECIATION FUND COMPANY FUND OPPORTUNITIES FUND MIDCAP FUND
------------- ------------------ ------------- ------------------- ---------------
<S> <C> <C> <C> <C> <C>
INVESTMENT INCOME:
Dividends............................. $ 4,273,924 $ 2,382,708 $ 69,503 $ 850,508 $ 121,698
Interest.............................. 912,831 1,131,367 139,266 129,484 46,477
Less: Foreign tax withheld............ (146,870) (30,615) -- (72,434) (1,256)
------------- ------------------ ------------- ------------------- ---------------
Total investment income............. 5,039,885 3,483,460 208,769 907,558 166,919
------------- ------------------ ------------- ------------------- ---------------
EXPENSES:
Investment advisory fees.............. 2,774,838 2,946,801 346,833 268,944 227,467
Transfer agent fees................... 871,252 907,644 86,722 65,685 60,141
Distribution fees
Class A............................. 566,627 598,056 61,616 52,764 48,909
Class B............................. 1,254,438 1,559,381 102,640 63,535 56,302
Class C............................. 424,436 142,625 28,220 12,833 18,828
Custodian fees gross.................. 4,814 29,258 5,876 66,928 3,405
Custodian fee expense offset.......... (279) (739) (651) (55) (104)
Accounting fees....................... 54,438 57,952 6,143 4,756 4,042
Registration and filing fees.......... 136,010 92,973 11,806 8,710 11,137
Board of directors fees............... 5,213 5,549 588 455 387
Amortization of deferred
organizational costs................. 3,737 -- 3,737 3,737 --
Other expenses........................ 150,086 81,573 11,283 10,360 7,437
------------- ------------------ ------------- ------------------- ---------------
Total expenses (before waivers and
reimbursements).................... 6,245,610 6,421,073 664,813 558,652 437,951
Expense waivers and reimbursements.... -- -- (12,892) (11,247) (10,080)
------------- ------------------ ------------- ------------------- ---------------
Total expenses, net................... 6,245,610 6,421,073 651,921 547,405 427,871
------------- ------------------ ------------- ------------------- ---------------
Net investment income (loss).......... (1,205,725) (2,937,613) (443,152) 360,153 (260,952)
------------- ------------------ ------------- ------------------- ---------------
NET REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS:
Net realized gain (loss) on
investments.......................... 13,540,845 123,014,775 15,742,211 5,089,639 5,632,901
Net realized gain (loss) on forward
foreign currency contracts........... -- (51,994) (1,560) 103,441 --
Net realized gain (loss) on option
contracts............................ -- -- -- -- --
Net realized gain (loss) on futures
contracts............................ -- -- -- 94,449 --
Net realized gain (loss) on foreign
currency transactions................ -- 28,682 1,593 (68,969) --
Net unrealized appreciation
(depreciation) of investments........ 90,362,008 69,111,442 2,033,816 519,371 7,059,392
Net unrealized appreciation
(depreciation) of future contracts... -- -- -- 719 --
Net unrealized appreciation
(depreciation) of foreign foward
currency contracts................... -- -- -- 37,558 --
Net unrealized appreciation
(depreciation) of purchased
options.............................. -- -- -- -- --
Net unrealized appreciation
(depreciation) on translation of
other assets and liabilities in
foreign currencies................... -- (3,820) (31) (26,993) --
------------- ------------------ ------------- ------------------- ---------------
Net realized and unrealized gain
(loss) on investments................ 103,902,853 192,099,085 17,776,029 5,749,215 12,692,293
------------- ------------------ ------------- ------------------- ---------------
Net increase in net assets resulting
from operations...................... $102,697,128 $189,161,472 $17,332,877 $6,109,368 $12,431,341
------------- ------------------ ------------- ------------------- ---------------
------------- ------------------ ------------- ------------------- ---------------
<CAPTION>
THE HARTFORD THE HARTFORD THE HARTFORD
GROWTH AND HIGH YIELD GLOBAL LEADERS
INCOME FUND FUND FUND
------------- ------------- ---------------
<S> <C> <C> <C>
INVESTMENT INCOME:
Dividends............................. $ 175,861 $ 8,375 $ 161,145
Interest.............................. 31,862 953,171 46,332
Less: Foreign tax withheld............ (613) -- (7,967)
------------- ------------- ---------------
Total investment income............. 207,110 961,546 199,510
------------- ------------- ---------------
EXPENSES:
Investment advisory fees.............. 115,700 81,282 73,000
Transfer agent fees................... 34,923 24,510 20,084
Distribution fees
Class A............................. 26,165 17,299 16,337
Class B............................. 27,257 17,941 11,747
Class C............................. 28,145 22,051 13,414
Custodian fees gross.................. 5,460 4,158 24,359
Custodian fee expense offset.......... (58) (1,505) (137)
Accounting fees....................... 2,185 1,634 1,312
Registration and filing fees.......... 6,597 4,366 5,923
Board of directors fees............... 209 156 125
Amortization of deferred
organizational costs................. -- -- --
Other expenses........................ 4,003 3,298 2,453
------------- ------------- ---------------
Total expenses (before waivers and
reimbursements).................... 250,586 175,190 168,617
Expense waivers and reimbursements.... (3,375) (101) (12,039)
------------- ------------- ---------------
Total expenses, net................... 247,211 175,089 156,578
------------- ------------- ---------------
Net investment income (loss).......... (40,101) 786,457 42,932
------------- ------------- ---------------
NET REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS:
Net realized gain (loss) on
investments.......................... 397,650 31,894 792,047
Net realized gain (loss) on forward
foreign currency contracts........... -- -- (31,572)
Net realized gain (loss) on option
contracts............................ -- -- --
Net realized gain (loss) on futures
contracts............................ (2,668) -- --
Net realized gain (loss) on foreign
currency transactions................ -- -- 50,301
Net unrealized appreciation
(depreciation) of investments........ 3,276,242 (466,454) 1,201,783
Net unrealized appreciation
(depreciation) of future contracts... 57,524 -- --
Net unrealized appreciation
(depreciation) of foreign foward
currency contracts................... -- -- (3,651)
Net unrealized appreciation
(depreciation) of purchased
options.............................. -- -- --
Net unrealized appreciation
(depreciation) on translation of
other assets and liabilities in
foreign currencies................... -- -- 2,372
------------- ------------- ---------------
Net realized and unrealized gain
(loss) on investments................ 3,728,748 (434,560) 2,011,280
------------- ------------- ---------------
Net increase in net assets resulting
from operations...................... $3,688,647 $ 351,897 $2,054,212
------------- ------------- ---------------
------------- ------------- ---------------
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THIS FINANCIAL STATEMENT.
47
<PAGE>
THE HARTFORD MUTUAL FUNDS, INC.
- --------------------------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS
FOR THE SIX MONTHS ENDED JUNE 30, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
THE HARTFORD THE HARTFORD THE HARTFORD
MONEY BOND INCOME THE HARTFORD DIVIDEND AND
MARKET FUND STRATEGY FUND ADVISERS FUND GROWTH FUND
------------- -------------- --------------- -------------
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment income................. $ 1,137,069 $ 2,287,754 $ 6,397,608 $ 1,240,258
Net realized gain (loss).............. 362 (586,101) 12,432,143 9,548,405
Net unrealized appreciation
(depreciation) of investments........ -- (4,476,949) 52,167,430 13,429,362
------------- -------------- --------------- -------------
Net increase (decrease) in net assets
resulting from operations............ 1,137,431 (2,775,296) 70,997,181 24,218,025
------------- -------------- --------------- -------------
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income
Class A............................. (715,442) (1,318,690) (3,417,375) (953,469)
Class B............................. (237,536) (418,754) (1,656,111) (133,074)
Class Y............................. (143,876) (362,145) (537,809) (133,911)
Class C............................. (40,215) (205,802) (842,931) (39,674)
From net realized gain on investments
Class A............................. (235) (106,002) (898,346) (85,830)
Class B............................. (83) (40,029) (738,724) (47,806)
Class Y............................. (34) (30,398) (110,346) (8,972)
Class C............................. (10) (22,706) (365,542) (9,750)
------------- -------------- --------------- -------------
Total distributions................... (1,137,431) (2,504,526) (8,567,184) (1,412,486)
------------- -------------- --------------- -------------
CAPITAL SHARE TRANSACTIONS:
Class A............................. 6,418,044 12,682,355 194,131,885 29,606,732
Class B............................. 6,147,426 5,741,029 179,028,478 7,964,110
Class Y............................. 2,214,276 6,258,738 4,314,101 5,101,533
Class C............................. 2,833,718 7,276,923 152,121,327 15,027,183
------------- -------------- --------------- -------------
Net increase (decrease) from capital
share transactions................... 17,613,464 31,959,045 529,595,791 57,699,558
------------- -------------- --------------- -------------
Net increase in net assets............ 17,613,464 26,679,223 592,025,788 80,505,097
NET ASSETS:
Beginning of period................... 47,883,396 80,100,315 667,192,259 317,618,659
------------- -------------- --------------- -------------
End of period......................... $65,496,860 $106,779,538 $1,259,218,047 $398,123,756
------------- -------------- --------------- -------------
------------- -------------- --------------- -------------
Accumulated undistributed
(distribution in excess of) net
investment income.................... $ -- $ 43,226 $ (56,848) $ (1,021,634)
------------- -------------- --------------- -------------
------------- -------------- --------------- -------------
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THIS FINANCIAL STATEMENT.
48
<PAGE>
<TABLE>
<CAPTION>
THE HARTFORD THE HARTFORD THE HARTFORD
THE HARTFORD CAPITAL SMALL INTERNATIONAL
STOCK FUND APPRECIATION FUND COMPANY FUND OPPORTUNITIES FUND
------------- ------------------ --------------- -------------------
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment income................. $ (1,205,725) $ (2,937,613) $ (443,152) $ 360,153
Net realized gain (loss).............. 13,540,845 122,991,462 15,742,243 5,218,559
Net unrealized appreciation
(depreciation) of investments........ 90,362,008 69,107,623 2,033,786 530,655
------------- ------------------ --------------- -------------------
Net increase (decrease) in net assets
resulting from operations............ 102,697,128 189,161,472 17,332,877 6,109,367
------------- ------------------ --------------- -------------------
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income
Class A............................. -- -- -- (51,384)
Class B............................. -- -- -- --
Class Y............................. -- -- -- (21,545)
Class C............................. -- -- -- (4,886)
From net realized gain on investments
Class A............................. -- -- -- --
Class B............................. -- -- -- --
Class Y............................. -- -- -- --
Class C............................. -- -- -- --
------------- ------------------ --------------- -------------------
Total distributions................... -- -- -- (77,815)
------------- ------------------ --------------- -------------------
CAPITAL SHARE TRANSACTIONS:
Class A............................. 183,954,815 12,410,750 6,772,886 4,200,243
Class B............................. 108,980,852 (5,227,318) 4,010,993 1,013,072
Class Y............................. 178,805 4,111,255 2,141,787 3,710,776
Class C............................. 100,490,961 26,057,561 6,005,228 2,265,090
------------- ------------------ --------------- -------------------
Net increase (decrease) from capital
share transactions................... 393,605,433 37,352,248 18,930,894 11,189,181
------------- ------------------ --------------- -------------------
Net increase in net assets............ 496,302,561 226,513,720 36,263,771 17,220,733
NET ASSETS:
Beginning of period................... 497,388,744 698,638,678 71,736,684 56,020,588
------------- ------------------ --------------- -------------------
End of period......................... $993,691,305 $925,152,398 $108,000,455 $73,241,321
------------- ------------------ --------------- -------------------
------------- ------------------ --------------- -------------------
Accumulated undistributed
(distribution in excess of) net
investment income.................... $ (1,205,744) $ (2,958,898) $ (442,662) $ 212,130
------------- ------------------ --------------- -------------------
------------- ------------------ --------------- -------------------
<CAPTION>
THE HARTFORD THE HARTFORD THE HARTFORD
THE HARTFORD GROWTH AND HIGH YIELD GLOBAL LEADERS
MIDCAP FUND INCOME FUND FUND FUND
--------------- ------------- ------------- ---------------
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment income................. $ (260,952) $ (40,101) $ 786,457 $ 42,932
Net realized gain (loss).............. 5,632,901 394,981 31,894 810,775
Net unrealized appreciation
(depreciation) of investments........ 7,059,392 3,333,766 (466,454) 1,200,505
--------------- ------------- ------------- ---------------
Net increase (decrease) in net assets
resulting from operations............ 12,431,341 3,688,646 351,897 2,054,212
--------------- ------------- ------------- ---------------
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income
Class A............................. -- -- (429,102) --
Class B............................. -- -- (122,195) --
Class Y............................. -- -- (84,048) --
Class C............................. -- -- (152,242) --
From net realized gain on investments
Class A............................. (42,810) -- -- (45,328)
Class B............................. (15,481) -- -- (12,142)
Class Y............................. (8,016) -- -- (4,450)
Class C............................. (8,785) -- -- (13,851)
--------------- ------------- ------------- ---------------
Total distributions................... (75,092) -- (787,587) (75,771)
--------------- ------------- ------------- ---------------
CAPITAL SHARE TRANSACTIONS:
Class A............................. 18,145,911 13,918,299 6,400,230 16,840,472
Class B............................. 7,106,388 4,150,044 2,672,834 5,007,290
Class Y............................. 4,201,223 512 1,269,431 1,584,811
Class C............................. 8,227,699 6,044,251 4,201,999 5,903,071
--------------- ------------- ------------- ---------------
Net increase (decrease) from capital
share transactions................... 37,681,221 24,113,106 14,544,494 29,335,644
--------------- ------------- ------------- ---------------
Net increase in net assets............ 50,037,470 27,801,752 14,108,804 31,314,085
NET ASSETS:
Beginning of period................... 37,524,786 18,770,278 14,141,284 5,165,723
--------------- ------------- ------------- ---------------
End of period......................... $87,562,256 $46,572,030 $28,250,088 $36,479,808
--------------- ------------- ------------- ---------------
--------------- ------------- ------------- ---------------
Accumulated undistributed
(distribution in excess of) net
investment income.................... $ (260,951) $ (40,101) $ 17,202 $ 43,241
--------------- ------------- ------------- ---------------
--------------- ------------- ------------- ---------------
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THIS FINANCIAL STATEMENT.
49
<PAGE>
THE HARTFORD MUTUAL FUNDS, INC.
- --------------------------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED DECEMBER 31, 1998
<TABLE>
<CAPTION>
THE HARTFORD THE HARTFORD THE HARTFORD
MONEY BOND INCOME THE HARTFORD DIVIDEND AND
MARKET FUND STRATEGY FUND ADVISERS FUND GROWTH FUND
------------- -------------- -------------- -------------
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment
income................ $ 1,715,610 $ 2,794,355 $ 5,421,704 $ 1,939,182
Net realized gains
(losses).............. 678 615,427 12,814,094 1,355,479
Net change in
unrealized
appreciation of
investments........... -- 574,704 53,719,779 24,268,127
------------- -------------- -------------- -------------
Net increase in net
assets resulting from
operations............ 1,716,288 3,984,486 71,955,577 27,562,788
DISTRIBUTIONS TO
SHAREHOLDERS:
From net investment
income
Class A.............. (1,250,248) (1,856,234) (3,501,112) (1,330,894)
Class B.............. (293,833) (465,495) (1,575,666) (278,341)
Class Y.............. (158,226) (415,556) (964,943) (188,063)
Class C.............. (13,303) (49,319) (335,363) (40,654)
From net realized gains
on investments
Class A.............. (458) (332,756) (4,769,981) (660,247)
Class B.............. (148) (110,679) (3,555,678) (402,501)
Class Y.............. (60) (72,826) (915,537) (66,070)
Class C.............. (12) (28,241) (1,043,179) (21,621)
From capital
Class A.............. -- -- -- --
Class B.............. -- -- -- --
Class Y.............. -- -- -- --
Class C.............. -- -- -- --
CAPITAL SHARE
TRANSACTIONS:
Class A.............. 6,845,426 18,077,755 189,233,392 100,464,774
Class B.............. 7,486,854 10,923,635 181,342,293 66,777,347
Class Y.............. 2,682,545 5,928,169 10,589,232 1,867,464
Class C.............. 1,203,354 5,427,294 52,992,750 9,091,056
------------- -------------- -------------- -------------
Net increase in net
assets................ 18,218,179 41,010,233 489,451,785 202,775,038
NET ASSETS:
Beginning of period.... 29,665,217 39,090,082 177,740,474 114,843,621
------------- -------------- -------------- -------------
End of period.......... $47,883,396 $80,100,315 $667,192,259 $317,618,659
------------- -------------- -------------- -------------
------------- -------------- -------------- -------------
Accumulated
undistributed
(distribution in
excess of) net
investment income..... $ -- $ 60,865 $ 248 $ 148,410
------------- -------------- -------------- -------------
------------- -------------- -------------- -------------
</TABLE>
* From inception April 30, 1998, to December 31, 1998.
** From inception September 30, 1998, to December 31, 1998.
*** This amount represents seed money deposited in the fund on December 31,
1997.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THIS FINANCIAL STATEMENT.
50
<PAGE>
<TABLE>
<CAPTION>
THE HARTFORD THE HARTFORD THE HARTFORD
THE HARTFORD CAPITAL SMALL INTERNATIONAL THE HARTFORD
STOCK FUND APPRECIATION FUND COMPANY FUND OPPORTUNITIES FUND MIDCAP FUND
------------- ------------------ ------------- ------------------- ---------------
<S> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment
income................ $ (890,834) $ (5,794,332) $ (454,318) $ 273,645 $ (174,148)
Net realized gains
(losses).............. 5,767,222 (15,459,825) (4,257,930) (1,992,573) 129,529
Net change in
unrealized
appreciation of
investments........... 65,840,333 32,090,327 10,894,769 5,627,451 4,771,974
------------- ------------------ ------------- ------------------- ---------------
Net increase in net
assets resulting from
operations............ 70,716,721 10,836,170 6,182,521 3,908,523 4,727,355
DISTRIBUTIONS TO
SHAREHOLDERS:
From net investment
income
Class A.............. -- -- -- (41,500) --
Class B.............. -- -- -- -- --
Class Y.............. -- -- -- (37,687) --
Class C.............. -- -- -- (3,377) --
From net realized gains
on investments
Class A.............. (2,436,707) (2,172,667) (271,473) -- --
Class B.............. (1,709,941) (1,804,600) (131,872) -- --
Class Y.............. (74,780) (169,843) (103,247) -- --
Class C.............. (499,945) -- -- -- --
From capital
Class A.............. (98,443) -- -- -- --
Class B.............. (69,082) -- -- -- --
Class Y.............. (3,021) -- -- -- --
Class C.............. (20,198) -- -- -- --
CAPITAL SHARE
TRANSACTIONS:
Class A.............. 164,791,250 127,426,826 15,445,033 14,249,167 19,029,730
Class B.............. 126,414,554 116,849,576 7,306,977 3,691,053 6,757,968
Class Y.............. 690,373 (3,521,427) 2,803,478 3,654,992 3,069,631
Class C.............. 33,120,833 13,508,727 2,358,036 1,288,344 940,059
------------- ------------------ ------------- ------------------- ---------------
Net increase in net
assets................ 390,821,614 260,952,762 33,589,453 26,709,515 34,524,743
NET ASSETS:
Beginning of period.... 106,567,130 437,685,916 38,147,231 29,311,073 3,000,043***
------------- ------------------ ------------- ------------------- ---------------
End of period.......... $497,388,744 $698,638,678 $71,736,684 $56,020,588 $37,524,786
------------- ------------------ ------------- ------------------- ---------------
------------- ------------------ ------------- ------------------- ---------------
Accumulated
undistributed
(distribution in
excess of) net
investment income..... $ -- $ (20,872) $ 831 $ 73,679 $ --
------------- ------------------ ------------- ------------------- ---------------
------------- ------------------ ------------- ------------------- ---------------
<CAPTION>
THE HARTFORD THE HARTFORD THE HARTFORD
GROWTH AND HIGH YIELD GLOBAL LEADERS
INCOME FUND* FUND** FUND**
------------- ------------- ---------------
<S> <C> <C> <C>
OPERATIONS:
Net investment
income................ $ 1,435 $ 222,288 $ (2,920)
Net realized gains
(losses).............. (142,973) 3,092 192,108
Net change in
unrealized
appreciation of
investments........... 2,341,672 168,889 822,402
------------- ------------- ---------------
Net increase in net
assets resulting from
operations............ 2,200,134 394,269 1,011,590
DISTRIBUTIONS TO
SHAREHOLDERS:
From net investment
income
Class A.............. (1,118) (131,217) --
Class B.............. (139) (29,122) --
Class Y.............. (72) (17,821) --
Class C.............. (106) (25,775) --
From net realized gains
on investments
Class A.............. -- -- (85,972)
Class B.............. -- -- (11,627)
Class Y.............. -- -- (10,428)
Class C.............. -- -- (12,093)
From capital
Class A.............. (13,420) -- --
Class B.............. (1,667) -- --
Class Y.............. (868) -- --
Class C.............. (1,271) -- --
CAPITAL SHARE
TRANSACTIONS:
Class A.............. 9,822,522 8,391,345 3,137,747
Class B.............. 3,098,120 2,290,229 398,757
Class Y.............. 340,604 1,017,821 310,428
Class C.............. 3,327,559 2,251,555 427,321
------------- ------------- ---------------
Net increase in net
assets................ 18,770,278 14,141,284 5,165,723
NET ASSETS:
Beginning of period.... -- -- --
------------- ------------- ---------------
End of period.......... $18,770,278 $14,141,284 $5,165,723
------------- ------------- ---------------
------------- ------------- ---------------
Accumulated
undistributed
(distribution in
excess of) net
investment income..... $ -- $ 18,333 $ 511
------------- ------------- ---------------
------------- ------------- ---------------
</TABLE>
* From inception April 30, 1998, to December 31, 1998.
** From inception September 30, 1998, to December 31, 1998.
*** This amount represents seed money deposited in the fund on December 31,
1997.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THIS FINANCIAL STATEMENT.
51
<PAGE>
THE HARTFORD MUTUAL FUNDS, INC.
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 1999 (UNAUDITED)
1. ORGANIZATION:
The Hartford Mutual Funds, Inc. (the Company) is an open-end management
investment company comprised of twelve diversified portfolios (each a
"Fund" or together the "Funds"). The Funds are The Hartford Money Market
Fund, The Hartford Bond Income Strategy Fund, The Hartford Advisers Fund,
The Hartford Dividend and Growth Fund, The Hartford Stock Fund, The
Hartford Capital Appreciation Fund, The Hartford Small Company Fund, The
Hartford International Opportunities Fund, The Hartford MidCap Fund, The
Hartford Growth and Income Fund, The Hartford High Yield Fund and The
Hartford Global Leaders Fund. The Company was organized under the laws of
the State of Maryland and was registered with the Securities and Exchange
Commission (SEC) under the Investment Company Act of 1940, as amended, as a
diversified open-end management investment company.
The Funds and their investment objectives are listed below:
<TABLE>
<S> <C> <C>
The Hartford Money Market Fund -- Seeks maximum current income consistent
(Money Market Fund) with liquidity and preservation of
capital.
The Hartford Bond Income Strategy Fund -- Seeks a high level of current income
(Bond Income Strategy Fund) consistent with a competitive total
return, as compared to bond funds with
similar investment objectives and
policies, by investing primarily in debt
securities.
The Hartford Advisers Fund -- Seeks maximum long-term total rate of
(Advisers Fund) return by investing in common stocks and
other equity securities, bonds and other
debt securities and money market
instruments.
The Hartford Dividend and Growth Fund -- Seeks a high level of current income
(Dividend and Growth Fund) consistent with growth of capital by
investing primarily in equity
securities.
The Hartford Stock Fund -- Seeks long-term growth of capital with
(Stock Fund) income as a secondary consideration by
investing primarily in equity
securities.
The Hartford Capital Appreciation Fund -- Seeks maximum capital appreciation by
(Capital Appreciation Fund) investing in stocks of small, medium and
large companies.
The Hartford Small Company Fund -- Seeks maximum capital appreciation by
(Small Company Fund) investing primarily in stocks of
companies with market capitalizations
within the range represented by the
Russell 2000 Index.
The Hartford International Opportunities -- Seeks growth of capital by investing
Fund primarily in equity securities issued by
(International Opportunities Fund) non-U.S. companies.
The Hartford MidCap Fund -- Seeks to achieve long-term capital
(MidCap Fund) growth through capital appreciation by
investing primarily in equity
securities.
The Hartford Growth and Income Fund -- Seeks growth of capital and current
(Growth and Income Fund) income by investing primarily in equity
securities with earnings growth
potential and steady or rising
dividends.
The Hartford High Yield Fund -- Seeks high current income, growth of
(High Yield Fund) capital is a secondary objective.
The Hartford Global Leaders Fund -- Seeks growth of capital by investing
(Global Leaders Fund) primarily in high-quality U.S. and
non-U.S. companies.
</TABLE>
Each Fund is divided into Class A, Class B, Class C and Class Y shares.
Class A shares are sold with a front-end load sales charge of up to 5.50%.
Class B shares are sold with a contingent deferred sales charge which is
assessed on the lesser of the net asset value of the shares at the time of
redemption or the original purchase price, and declines from 5.00% to zero
depending on the period of time the shares are held. Class C Shares are
sold with a front-end load sales charge of up to 1% and a deferred sales
charge of up to 1%. Class Y shares are sold to certain eligible
institutional investors without a sales charge. All classes of shares have
identical voting, redemption, dividend, liquidation and other rights and
the same terms and conditions, except that each class may have different
expenses which may affect performance.
______________________________________ 52 ______________________________________
<PAGE>
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 Money Market Fund are valued
at amortized cost or original cost plus accrued interest receivable, both
of which approximate market value. The Hartford Bond Income Strategy
Fund, The Hartford Advisers Fund, The Hartford Dividend and Growth Fund,
The Hartford Stock Fund, The Hartford Capital Appreciation Fund, The
Hartford Small Company Fund, The Hartford International Opportunities
Fund, The Hartford MidCap Fund, The Hartford Growth and Income Fund, The
Hartford High Yield Fund, and The Hartford Global Leaders Fund,
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 purchased 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 the
principal securities exchange on which such securities are traded
(domestic or foreign) or on the principal over-the-counter market on
which such securities are traded, as of the close of business on the day
the securities are being valued. If no sale took place on a particular
day then such securities are valued at the mean between the bid and asked
prices. The difference between amortized cost and market value for debt
and equity securities is recorded in the Statement of Operations and
accumulated in shareholders' equity.
Securities quoted in foreign currencies are translated into U.S. dollars
at the exchange rates at the end of each business 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. Securities for
which market quotations are not readily available and all other assets
are valued in good faith at fair value by, or under the direction of, the
Funds' Board of Directors. (See note 2 f)
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 on the date translated. 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 portfolio security valuation
resulting from fluctuations in foreign currency exchange rates on
portfolio securities 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 in the
accompanying financial statements.
Net realized and unrealized foreign exchange gains or losses arise from
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 are reported as net
realized gain (loss) on foreign currency transactions and net unrealized
appreciation (depreciation) on translation of other assets and
liabilities in foreign currencies, respectively.
d) REPURCHASE AGREEMENTS--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 The Hartford
Investment Management Company (HIMCO) or Wellington Management Company
LLP (Wellington). These balances may be invested in one or more
repurchase agreements and/or short-term money market instruments.
______________________________________ 53 ______________________________________
<PAGE>
THE HARTFORD MUTUAL FUNDS, INC.
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS -- (CONTINUED)
JUNE 30, 1999 (UNAUDITED)
f) FUTURES, OPTIONS ON FUTURES AND OPTIONS TRANSACTIONS--The Funds enter
into futures contracts to retain their cash balance and yet be exposed to
the market, thereby providing the liquidity necessary to accommodate
redemptions while at the same time providing shareholders with the
investment return of a fully invested portfolio. A futures contract is an
agreement between two parties to buy and sell a security at a set price
on a future date. When the Funds enter into such contracts, they are
required to deposit with their custodian an amount of "initial margin" of
cash or U.S. Treasury Bills. Subsequent payments, called maintenance
margin, to and from the broker, are made on a daily basis as the price of
the underlying debt security fluctuates, making the long and short
positions in the futures contract more or less valuable (i.e.,
mark-to-market), which results in an unrealized gain or loss to the
Funds. The market value of a traded futures contract is the last sale
price. In the absence of a last sale price, the last offering price is
used. 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" through net unrealized appreciation
(depreciation) of options to reflect the current market value of the
option purchased as of the end of the reporting period. If an option
which the Fund has purchased expires on its stipulated expiration date,
the Fund realizes a loss in the amount of the cost of the option. If the
Fund enters into a closing transaction, it realizes a gain or loss,
depending on whether the proceeds from the sale are greater or less than
the cost of the option. If the Fund exercises a put option, it realizes a
gain or loss from the sale of the underlying security and the proceeds
from such sale will be decreased by the premium originally paid. If the
Fund exercises a call option, the cost of the security which the Fund
purchases upon exercise will be increased by the premium originally paid
to buy the call.
The Funds may write covered options. "Covered" means that so long as the
Fund is obligated as the writer of an option, it will own either the
underlying securities or currency or the option to purchase or sell the
same underlying securities or currency having 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 it's
custodian for the term of the option a "segregated account" consisting of
cash or other liquid securities having a value equal to the fluctuating
market value of the option securities or currencies. The Fund receives a
premium for writing a call or put option, recorded as a component of
other liabilities on the Statement of Net Assets, which increases the
funds return, recorded as a realized gain, if the option expires
unexercised or is closed out at a net profit. Any loss realized from the
covered option is offset by the gain realized on the sale of the
underlying securities or currency. Covered options, at times before
exercise or close out, are marked-to-market through net unrealized
appreciation (depreciation) of options. The Fund's option activity was as
follows as of June 30, 1999:
THE HARTFORD DIVIDEND AND GROWTH FUND
OPTIONS CONTRACTS WRITTEN DURING THE PERIOD
<TABLE>
<CAPTION>
NUMBER OF PREMIUM
CALL WRITES CONTRACTS DOLLAR AMOUNTS
- ---------------------------------------- --------- ---------------
<S> <C> <C>
Beginning of Period..................... 757 $ 67,058
During the Period....................... 3,101 281,720
Expired during the period............... (2,624) (242,061)
Closed during the period................ (778) (61,154)
Exercised during the period............. (69) (5,934)
--------- ---------------
Balance at the end of period............ 387 $ 39,629
--------- ---------------
--------- ---------------
</TABLE>
g) FORWARD FOREIGN CURRENCY CONTRACTS--As of June 30, 1999, the
International Opportunities Fund and the Global Leaders Fund entered into
forward foreign currency exchange contracts that obligate the Funds to
repurchase/replace or sell currencies at specified future dates. The
Funds enter into forward foreign currency contracts to hedge against
adverse fluctuations in exchange rates between currencies.
Forward contracts involve elements of market risk in excess of the amount
reflected in the Statement of Net Assets. In addition, risks may arise
upon entering into these contracts from the potential inability of
counterparties to meet the terms of the contract and from unanticipated
movement in the value of foreign currencies relative to the U.S. dollar.
h) 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 net investment income and net realized capital gains to their
shareholders or otherwise complying with the
______________________________________ 54 ______________________________________
<PAGE>
requirements of regulated investment companies. Accordingly, no provision
for federal income taxes has been made in the accompanying financial
statements.
i) FUND SHARE VALUATION AND DIVIDEND DISTRIBUTIONS TO SHAREHOLDERS--Orders
for the Funds' shares are executed in accordance with the investment
instructions of the shareholders. 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 each Fund's shares is determined as of the
close of each business day of the New York Stock Exchange (the Exchange).
The net asset value per share is determined separately for each class of
each fund by dividing the Fund's net assets attributable to that class by
the number of shares of the class outstanding. Orders for the purchase of
a Fund's 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.
Each Fund intends to distribute substantially all of its net investment
income and net realized capital gains to shareholders no less frequently
than once a year. Normally, dividends from net investment income of the
Stock Fund, the Capital Appreciation Fund, the Small Company Fund, the
International Opportunities Fund, the MidCap Fund, and the Global Leaders
Fund will be declared and paid annually; dividends from net investment
income of the Advisers Fund, the Dividend and Growth Fund, and the Growth
and Income Fund will be declared and paid quarterly; dividends from the
net investment income of the Bond Income Strategy Fund, and the High
Yield Fund will be declared and paid monthly and dividends from net
investment income of the Money Market Fund will be declared daily and
paid monthly. Dividends from the Money Market Fund are not paid on shares
until the day following the date on which the shares are issued. Unless
shareholders specify otherwise, all dividends and distributions will be
automatically reinvested in additional full or fractional shares of each
Fund.
Distributions from net investment income and net realized capital gains
are determined in accordance with federal income tax regulations which
may differ from generally accepted accounting principles. These
differences include the treatment of non-taxable dividends, expiring
capital loss carryforwards, foreign currency gains and losses, losses
deferred due to wash sales and excise tax regulations. Permanent book and
federal income tax basis differences relating to shareholder
distributions will result in reclassifications to certain of the Funds'
capital accounts (see Note 8).
j) ORGANIZATIONAL COSTS--Costs incurred by the Funds in connection with
their organization have been deferred and are being amortized on a
straight line basis over five years. The unamortized deferred
organizational costs of each Fund as of June 30, 1999, are included in
the excess of cash, receivables and other assets over liabilities or the
excess of liabilities over cash, receivables and other assets, as
applicable, in each Fund's Statement of Net Assets.
k) USE OF ESTIMATES--The preparation of financial statements in conformity
with generally accepted accounting principles requires management to make
estimates and assumptions that affect the reported amounts of assets and
liabilities as of the date of the financial statements and the reported
amounts of income and expenses during the period. Operating results in
the future could vary from the amounts derived from management's
estimates.
l) RESTRICTED SECURITIES--Each Fund is permitted to invest up to 15% of its
net assets in illiquid securities, except for the Money Market Fund,
which may invest up to 10% in such securities. "Illiquid Securities" are
those that may not be sold or disposed of in the ordinary course of
business, at approximately the price used to determine a Fund's net asset
value per share. Each Fund may also purchase certain restricted
securities, commonly known as Rule 144A securities, that can be resold to
institutions and which may be determined to be liquid pursuant to
policies and guidelines established by the Funds' Board of Directors.
At June 30, 1999, the Funds held the following restricted securities
(excluding 144A issues):
<TABLE>
<CAPTION>
PERCENTAGE OF
ACQUISITION ACQUISITION MARKET FUND'S
FUND SECURITY DATE COST VALUE NET ASSETS
- ------------------------- ------------------------ ----------- ------------ --------- -------------
<S> <C> <C> <C> <C> <C>
Capital Appreciation
Fund.................... SGW Holdings Corporation 8/15/97 $ 2,000,001 $ 193,536 0.02%
Small Company Fund....... SGW Holdings Corporation 8/15/97 $ 88,996 $ 8,612 0.01%
</TABLE>
3. EXPENSES:
a) INVESTMENT MANAGEMENT AND ADVISORY AGREEMENTS--Hartford Investment
Financial Services Company (HIFSCO), a majority-owned indirect subsidiary
of The Hartford Financial Services Group, Inc. (The Hartford), serves as
investment manager to each Fund pursuant to an Investment Advisory
Agreement dated March 3, 1997. As investment manager, HIFSCO has overall
investment supervisory responsibility for each Fund. In addition, HIFSCO
provides administrative personnel, services, equipment and facilities and
office space for proper operation of the Company. HIFSCO has contracted
with Wellington for the provision of day to day management services to
the Advisers Fund,
______________________________________ 55 ______________________________________
<PAGE>
THE HARTFORD MUTUAL FUNDS, INC.
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS -- (CONTINUED)
JUNE 30, 1999 (UNAUDITED)
Dividend and Growth Fund, Stock Fund, Capital Appreciation Fund, Small
Company Fund, International Opportunities Fund, MidCap Fund, Growth and
Income Fund, and Global Leaders Fund in accordance with each Fund's
investment objective and policies. In addition, HIFSCO has contracted
with HIMCO, a wholly owned subsidiary of The Hartford, for the provision
of day to day investment management service for the Money Market Fund,
Bond Income Strategy Fund, and High Yield Fund. Each Fund pays a fee to
HIFSCO, a portion of which may be used to compensate Wellington or HIMCO.
The schedule below reflects the rates of compensation paid to HIFSCO for
services rendered:
MONEY MARKET FUND
<TABLE>
<CAPTION>
AVERAGE DAILY NET ASSETS ANNUAL FEE
- -------------------------------------------------- ----------
<S> <C>
On first $500 million .50%
On next $500 million .45%
Over $1 billion .40%
</TABLE>
BOND INCOME STRATEGY FUND
<TABLE>
<CAPTION>
AVERAGE DAILY NET ASSETS ANNUAL FEE
- -------------------------------------------------- ----------
<S> <C>
On first $500 million .65%
On next $500 million .55%
Over $1 billion .50%
</TABLE>
ADVISERS, HIGH YIELD AND
DIVIDEND AND GROWTH FUNDS
<TABLE>
<CAPTION>
AVERAGE DAILY NET ASSETS ANNUAL FEE
- -------------------------------------------------- ----------
<S> <C>
On first $500 million .75%
On next $500 million .65%
Over $1 billion .60%
</TABLE>
CAPITAL APPRECIATION, STOCK AND
GROWTH AND INCOME FUNDS
<TABLE>
<CAPTION>
AVERAGE DAILY NET ASSETS ANNUAL FEE
- -------------------------------------------------- ----------
<S> <C>
On first $500 million .80%
On next $500 million .70%
Over $1 billion .65%
</TABLE>
SMALL COMPANY, INTERNATIONAL
OPPORTUNITIES, GLOBAL LEADERS AND
MIDCAP FUNDS
<TABLE>
<CAPTION>
AVERAGE DAILY NET ASSETS ANNUAL FEE
- -------------------------------------------------- ----------
<S> <C>
On first $500 million .85%
On next $500 million .75%
Over $1 billion .70%
</TABLE>
b) DISTRIBUTION AND SERVICE PLAN FOR CLASS A B AND C SHARES--Hartford
Investment Financial Services Company (HIFSCO), an indirect
majority-owned subsidiary of The Hartford, was the principal underwriter
and distributor of the Funds. HIFSCO is solely engaged in distribution
activities which include marketing, distribution and clearing of shares
through broker-dealers, financing distribution costs, supervising the
activities of the transfer agent and maintaining financial books and
records. During the period ended June 30, 1999, the following revenues
were received by HSD and HIFSCO:
<TABLE>
<CAPTION>
FRONT-END LOAD CONTINGENT DEFERRED
SALES CHARGE SALES CHARGE
- --------------- --------------------
<S> <C>
$23,072,880 $2,338,120
</TABLE>
The Funds have adopted Distribution and Service Plans in accordance with
Rule 12b-1 of the Investment Company Act of 1940, as amended, to
compensate the Distributor (HIFSCO) for the distribution of Class A,
Class B and Class C shares and servicing the accounts of Class A, Class B
and Class C shareholders. The Class A plan provides for periodic payments
to brokers who provide services to accounts that hold Class A shares and
for promotional and other sales related costs. The Distributor is
compensated at an annual rate that may not exceed 0.35% of the average
daily net asset value of Class A shares of the Fund, some or all of which
may be remitted to brokers. Up to 0.25% of the fee may be used for
shareholder servicing expenses with the remainder used for distribution
expenses. The Class A Rule 12b-1 fee for each Fund has been voluntarily
capped at 0.30%. The cap may be removed at any time after such
______________________________________ 56 ______________________________________
<PAGE>
date. Some or all of the 12b-1 fee for Class B shares may be paid to
broker-dealers for distribution and/or shareholder account services.
Under the Class B plan, the Fund pays the Distributor 1.00% of the
average daily net assets of Class B shares that are outstanding for 8
years or less, 0.25% of which is intended as a fee for service provided
to existing shareholders with the remainder used for distribution
expenses. After eight years, Class B shares convert to Class A shares.
Upon conversion to Class A shares, the Class A plan described above will
apply to those shares. For Class C shares, some or all of the fee may be
re-allocated to broker-dealers for distribution and/or shareholder
account services. Under the Class C plan, the Fund pays the Distributor
1.00% of the average daily new assets of Class C shares outstanding,
0.25% of which is intended as a fee for services provided to existing
shareholders with the remainder used for distribution expenses.
c) OPERATING EXPENSES--Allocable expenses incurred by the Funds are
allocated to each Fund in proportion to the average daily net assets of
each Fund, except where allocation of certain expenses is more fairly
made directly to the Fund. The Hartford has voluntarily agreed to limit
the total operating expenses of the Class A, B, C and Y shares of all the
Funds, exclusive of taxes, interest, brokerage commissions, certain
distribution expenses and extraordinary expenses, until at least April
30, 1999 as follows:
<TABLE>
<CAPTION>
FUND CLASS A CLASS B CLASS C CLASS Y
- ------------------------------ ------- ------- ------- -------
<S> <C> <C> <C> <C>
Money Market Fund............. 1.00% 1.70% 1.70% 0.55%
Bond Income Strategy Fund..... 1.25% 1.95% 1.95% 0.80%
Advisers Fund................. 1.40% 2.10% 2.10% 0.95%
Dividend and Growth Fund...... 1.40% 2.10% 2.10% 0.95%
Stock Fund.................... 1.45% 2.15% 2.15% 1.00%
Capital Appreciation Fund..... 1.45% 2.15% 2.15% 1.00%
Small Company Fund............ 1.45% 2.15% 2.15% 1.00%
International Opportunities
Fund......................... 1.65% 2.35% 2.35% 1.20%
MidCap Fund................... 1.45% 2.15% 2.15% 1.00%
Growth and Income Fund........ 1.45% 2.15% 2.15% 1.00%
High Yield Fund............... 1.40% 2.10% 2.10% 0.95%
Global Leaders Fund........... 1.65% 2.35% 2.35% 1.20%
</TABLE>
Such voluntary and temporary fee waivers and expense limitation
arrangements may be terminated by the Hartford at any time without
notice.
Amounts incurred which exceed the above limits are deducted from expenses
and are reported as expense waivers and reimbursements on the Statement
of Operations.
d) OTHER RELATED PARTY TRANSACTIONS--The Hartford and its subsidiaries
provide facilities and office equipment, as well as perform certain other
services, including fund accounting and financial reporting, to the
Funds. Certain officers of the Funds are Directors and/or officers of
HIFSCO, HIMCO, HSD and/or The Hartford or its subsidiaries. No officer of
the Funds receives any compensation directly from the Funds.
e) EXPENSE OFFSET--The funds have entered into certain expense offset
arrangements with the Custodian bank. The amount of the Funds' expense
reductions is shown on the accompanying Statement of Operations as
Custodian expense offset.
4. AFFILIATE HOLDINGS:
As of June 30, 1999, affiliates of The Hartford had ownership of shares in
the Funds as follows:
<TABLE>
<CAPTION>
FUND CLASS A CLASS B CLASS C CLASS Y
- ------------------------------ --------- --------- ------- -------
<S> <C> <C> <C> <C>
Money Market Fund............. 9,131,633 2,143,732 10,323 146
Bond Income Strategy Fund..... 2,331,334 312,272 981 210,532
Advisers Fund................. -- -- 673 --
Dividend and Growth Fund...... -- -- 637 --
Stock Fund.................... 3,765 1,993 551 298,104
Capital Appreciation Fund..... -- -- 508 --
Small Company Fund............ 6,641 297,163 800 38,962
International Opportunities
Fund......................... -- 127,349 819 184,712
MidCap Fund................... 210,191 60,055 891 30,027
Growth and Income Fund........ 210,522 60,057 988 30,098
High Yield Fund............... 737,567 104,874 104,880 105,593
Global Leaders Fund........... 216,547 30,937 30,937 30,934
</TABLE>
______________________________________ 57 ______________________________________
<PAGE>
THE HARTFORD MUTUAL FUNDS, INC.
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS -- (CONTINUED)
JUNE 30, 1999 (UNAUDITED)
5. INVESTMENT TRANSACTIONS:
For the six months ended June 30, 1999, aggregate purchases and sales of
investment securities (excluding short-term investments) were as follows:
<TABLE>
<CAPTION>
FUND COST OF PURCHASES PROCEEDS FROM SALES
- ---------------------------------------- ------------------ --------------------
<S> <C> <C>
Bond Income Strategy Fund............... $ 85,505,592 $ 55,105,607
Advisers Fund........................... 659,879,940 176,724,637
Dividend and Growth Fund................ 154,019,363 101,502,086
Stock Fund.............................. 547,338,116 135,018,911
Capital Appreciation Fund............... 843,429,023 823,492,980
Small Company Fund...................... 99,844,831 81,946,301
International Opportunities Fund........ 46,800,080 40,564,366
MidCap Fund............................. 61,694,423 26,129,588
Growth and Income Fund.................. 27,892,325 6,212,120
High Yield Fund......................... 18,704,263 4,963,577
Global Leaders Fund..................... 44,405,611 17,122,448
</TABLE>
6. TAX COST AND UNREALIZED APPRECIATION (DEPRECIATION) OF INVESTMENTS:
As of June 30, 1999, the aggregate gross unrealized appreciation and
depreciation of all investments, based on cost for federal income tax
purposes, was as follows:
<TABLE>
<CAPTION>
AGGREGATE GROSS AGGREGATE GROSS
UNREALIZED UNREALIZED NET UNREALIZED
FUND TAX COST APPRECIATION DEPRECIATION APPRECIATION
- ------------------------------ -------------- ---------------- ---------------- ---------------
<S> <C> <C> <C> <C>
Bond Income Strategy Fund..... $ 108,372,619 $ 329,088 $ (3,332,261) $ (3,003,173)
Advisers Fund................. 1,115,045,754 144,933,394 (23,236,606) 121,696,788
Dividend and Growth Fund...... 352,729,934 55,638,372 (8,891,955) 46,746,417
Stock Fund.................... 884,288,013 177,155,539 (12,237,305) 164,918,234
Capital Appreciation Fund..... 813,324,751 158,013,587 (56,005,926) 102,007,661
Small Company Fund............ 98,910,743 16,715,339 (3,994,825) 12,720,514
International Opportunities
Fund......................... 66,241,518 7,182,272 (2,165,624) 5,016,648
Midcap Fund................... 79,741,155 13,079,860 (1,489,844) 11,590,016
Growth & Income............... 40,609,132 6,195,627 (625,900) 5,569,727
High Yield Fund............... 27,547,223 293,517 (593,201) (299,684)
Global Leaders Fund........... 35,341,252 2,505,863 (604,356) 1,901,507
</TABLE>
7. CAPITAL SHARE TRANSACTIONS:
The following information is for the six months ended June 30, 1999:
<TABLE>
<CAPTION>
BOND INCOME STRATEGY
MONEY MARKET FUND FUND ADVISERS FUND
--------------------------- ------------------------ -------------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
------------ ------------- ---------- ------------ ---------- -------------
<S> <C> <C> <C> <C> <C> <C>
CLASS A
Shares sold.............. 128,493,633 $ 128,493,633 1,835,077 $ 19,349,313 13,348,896 $ 216,132,441
Shares issued on
reinvestment of
distributions........... 772,405 772,405 132,270 1,378,813 261,954 4,231,246
Shares redeemed.......... (122,847,994) (122,847,994) (764,814) (8,045,771) (1,615,341) (26,231,802)
------------ ------------- ---------- ------------ ---------- -------------
Net Increase............. 6,418,044 $ 6,418,044 1,202,533 $ 12,682,355 11,995,509 $ 194,131,885
------------ ------------- ---------- ------------ ---------- -------------
------------ ------------- ---------- ------------ ---------- -------------
</TABLE>
<TABLE>
<CAPTION>
DIVIDEND AND GROWTH FUND STOCK FUND CAPITAL APPRECIATION FUND
--------------------------- ------------------------- -------------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
------------ ------------- ----------- ------------ ---------- -------------
<S> <C> <C> <C> <C> <C> <C>
CLASS A
Shares sold.............. 2,725,060 $ 46,059,808 10,126,822 $212,426,034 6,590,114 $ 151,198,260
Shares issued on
reinvestment of
distributions........... 60,760 1,024,470 -- -- 5 108
Shares redeemed.......... (1,032,609) (17,477,546) (1,355,869) (28,471,219) (6,137,146) (138,787,618)
------------ ------------- ----------- ------------ ---------- -------------
Net Increase............. 1,753,211 $ 29,606,732 8,770,953 $183,954,815 452,973 $ 12,410,750
------------ ------------- ----------- ------------ ---------- -------------
------------ ------------- ----------- ------------ ---------- -------------
</TABLE>
______________________________________ 58 ______________________________________
<PAGE>
<TABLE>
<CAPTION>
INTERNATIONAL
SMALL COMPANY FUND OPPORTUNITIES FUND MIDCAP FUND
------------------------ ----------------------- ------------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
---------- ------------ --------- ------------ ---------- ------------
<S> <C> <C> <C> <C> <C> <C>
CLASS A
Shares sold.............. 1,101,026 $ 15,814,453 932,205 $ 11,767,947 1,548,604 $ 21,232,849
Shares issued on
reinvestment of
distributions........... -- -- 3,864 50,615 2,892 42,168
Shares redeemed.......... (651,985) (9,041,567) (603,615) (7,618,319) (244,005) (3,129,106)
---------- ------------ --------- ------------ ---------- ------------
Net Increase............. 449,041 $ 6,772,886 332,454 $ 4,200,243 1,307,491 $ 18,145,911
---------- ------------ --------- ------------ ---------- ------------
---------- ------------ --------- ------------ ---------- ------------
</TABLE>
<TABLE>
<CAPTION>
GROWTH AND INCOME FUND HIGH YIELD FUND GLOBAL LEADERS FUND
------------------------ ----------------------- ------------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
---------- ------------ --------- ------------ ---------- ------------
<S> <C> <C> <C> <C> <C> <C>
CLASS A
Shares sold.............. 1,225,787 $ 14,781,016 636,024 $ 6,511,982 1,262,190 $ 17,158,195
Shares issued on
reinvestment of
distributions........... -- -- 40,884 416,034 3,211 44,626
Shares redeemed.......... (71,546) (862,717) (51,676) (527,786) (26,747) (362,349)
---------- ------------ --------- ------------ ---------- ------------
Net Increase............. 1,154,241 $ 13,918,299 625,232 $ 6,400,230 1,238,654 $ 16,840,472
---------- ------------ --------- ------------ ---------- ------------
---------- ------------ --------- ------------ ---------- ------------
</TABLE>
<TABLE>
<CAPTION>
BOND INCOME STRATEGY
MONEY MARKET FUND FUND ADVISERS FUND
------------------------ ----------------------- ------------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
---------- ------------ --------- ------------ ---------- ------------
<S> <C> <C> <C> <C> <C> <C>
CLASS B
Shares sold.............. 14,339,763 $ 14,339,763 955,805 $ 10,029,129 12,025,410 $192,990,873
Shares issued on
reinvestment of
distributions........... 260,421 260,421 37,136 385,462 140,206 2,247,505
Shares redeemed.......... (8,452,758) (8,452,758) (445,727) (4,673,562) (1,009,510) (16,209,900)
---------- ------------ --------- ------------ ---------- ------------
Net Increase............. 6,147,426 $ 6,147,426 547,214 $ 5,741,029 11,156,106 $179,028,478
---------- ------------ --------- ------------ ---------- ------------
---------- ------------ --------- ------------ ---------- ------------
</TABLE>
<TABLE>
<CAPTION>
CAPITAL APPRECIATION
DIVIDEND AND GROWTH FUND STOCK FUND FUND
------------------------ ----------------------- ------------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
---------- ------------ --------- ------------ ---------- ------------
<S> <C> <C> <C> <C> <C> <C>
CLASS B
Shares sold.............. 1,065,010 $ 17,798,228 5,989,494 $123,353,784 1,568,292 $ 35,159,678
Shares issued on
reinvestment of
distributions........... 10,174 170,339 -- -- -- --
Shares redeemed.......... (598,390) (10,004,457) (698,129) (14,372,932) (1,856,094) (40,386,996)
---------- ------------ --------- ------------ ---------- ------------
Net Increase............. 476,794 $ 7,964,110 5,291,365 $108,980,852 (287,802) $ (5,277,318)
---------- ------------ --------- ------------ ---------- ------------
---------- ------------ --------- ------------ ---------- ------------
</TABLE>
<TABLE>
<CAPTION>
INTERNATIONAL
SMALL COMPANY FUND OPPORTUNITIES FUND MIDCAP FUND
------------------------ ----------------------- ------------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
---------- ------------ --------- ------------ ---------- ------------
<S> <C> <C> <C> <C> <C> <C>
CLASS B
Shares sold.............. 405,786 $ 5,719,848 168,632 $ 2,085,044 577,887 $ 7,933,093
Shares issued on
reinvestment of
distributions........... -- -- -- -- 1,055 15,225
Shares redeemed.......... (127,425) (1,708,859) (87,357) (1,071,972) (63,158) (841,930)
---------- ------------ --------- ------------ ---------- ------------
Net Increase............. 278,361 $ 4,010,993 81,275 $ 1,013,072 515,784 $ 7,106,388
---------- ------------ --------- ------------ ---------- ------------
---------- ------------ --------- ------------ ---------- ------------
</TABLE>
______________________________________ 59 ______________________________________
<PAGE>
THE HARTFORD MUTUAL FUNDS, INC.
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS -- (CONTINUED)
JUNE 30, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
GROWTH AND INCOME FUND HIGH YIELD FUND GLOBAL LEADERS FUND
------------------------ ------------------------ --------------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
---------- ------------ ---------- ------------ ----------- -------------
<S> <C> <C> <C> <C> <C> <C>
CLASS B
Shares sold.............. 366,517 $ 4,386,189 298,135 $ 3,044,138 375,166 $ 5,100,863
Shares issued on
reinvestment of
distributions........... -- -- 8,100 82,366 871 12,040
Shares redeemed.......... (19,447) (236,145) (44,325) (453,670) (7,681) (105,613)
---------- ------------ ---------- ------------ ----------- -------------
Net Increase............. 347,070 $ 4,150,044 261,910 $ 2,672,834 368,356 $ 5,007,290
---------- ------------ ---------- ------------ ----------- -------------
---------- ------------ ---------- ------------ ----------- -------------
</TABLE>
<TABLE>
<CAPTION>
BOND INCOME STRATEGY
MONEY MARKET FUND FUND ADVISERS FUND
------------------------ ------------------------ --------------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
---------- ------------ ---------- ------------ ----------- -------------
<S> <C> <C> <C> <C> <C> <C>
CLASS C
Shares sold.............. 6,078,512 $ 6,078,512 1,755,353 $ 17,892,359 21,786,996 $ 264,306,801
Shares issued on
reinvestment of
distributions........... 41,966 41,966 20,158 207,993 69,968 1,132,125
Shares redeemed.......... (3,286,760) (3,286,760) (1,071,260) (10,823,429) (10,760,840) (113,317,599)
---------- ------------ ---------- ------------ ----------- -------------
Net Increase............. 2,833,718 $ 2,833,718 704,251 $ 7,276,923 11,096,124 $ 152,121,327
---------- ------------ ---------- ------------ ----------- -------------
---------- ------------ ---------- ------------ ----------- -------------
</TABLE>
<TABLE>
<CAPTION>
DIVIDEND AND GROWTH FUND STOCK FUND CAPITAL APPRECIATION FUND
------------------------ ------------------------ --------------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
---------- ------------ ---------- ------------ ----------- -------------
<S> <C> <C> <C> <C> <C> <C>
CLASS C
Shares sold.............. 2,302,419 $ 28,233,331 10,835,991 $156,603,045 3,373,767 $ 47,599,785
Shares issued on
reinvestment of
distributions........... 2,842 47,683 2 16 -- --
Shares redeemed.......... (1,296,272) (13,253,841) (5,209,850) (56,112,099) (1,997,577) (21,542,225)
---------- ------------ ---------- ------------ ----------- -------------
Net Increase............. 1,008,989 $ 15,027,183 5,626,143 $100,490,962 1,376,190 $ 26,057,560
---------- ------------ ---------- ------------ ----------- -------------
---------- ------------ ---------- ------------ ----------- -------------
</TABLE>
<TABLE>
<CAPTION>
INTERNATIONAL
SMALL COMPANY FUND OPPORTUNITIES FUND MIDCAP FUND
------------------------ ------------------------ --------------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
---------- ------------ ---------- ------------ ----------- -------------
<S> <C> <C> <C> <C> <C> <C>
CLASS C
Shares sold.............. 835,754 $ 10,003,733 391,884 $ 4,208,098 768,675 $ 10,022,225
Shares issued on
reinvestment of
distributions........... -- -- 376 4,844 582 8,368
Shares redeemed.......... (382,223) (3,998,505) (201,426) (1,947,852) (165,949) (1,802,924)
---------- ------------ ---------- ------------ ----------- -------------
Net Increase............. 453,531 $ 6,005,228 190,834 $ 2,265,090 603,308 $ 8,227,699
---------- ------------ ---------- ------------ ----------- -------------
---------- ------------ ---------- ------------ ----------- -------------
</TABLE>
______________________________________ 60 ______________________________________
<PAGE>
<TABLE>
<CAPTION>
GROWTH AND INCOME FUND HIGH YIELD FUND GLOBAL LEADERS FUND
------------------------ ------------------------ --------------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
---------- ------------ ---------- ------------ ----------- -------------
<S> <C> <C> <C> <C> <C> <C>
CLASS C
Shares sold.............. 906,871 $ 10,596,983 479,626 $ 4,904,580 439,455 $ 5,956,065
Shares issued on
reinvestment of
distributions........... -- -- 13,402 136,302 958 13,255
Shares redeemed.......... (407,291) (4,552,732) (82,486) (838,883) (4,776) (66,250)
---------- ------------ ---------- ------------ ----------- -------------
Net Increase............. 499,580 $ 6,044,251 410,542 $ 4,201,999 435,637 $ 5,903,070
---------- ------------ ---------- ------------ ----------- -------------
---------- ------------ ---------- ------------ ----------- -------------
</TABLE>
<TABLE>
<CAPTION>
BOND INCOME STRATEGY
MONEY MARKET FUND FUND ADVISERS FUND
----------------------- --------------------- ---------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
---------- ----------- -------- ----------- -------- -----------
<S> <C> <C> <C> <C> <C> <C>
CLASS Y
Shares sold.............. 8,547,258 $ 8,547,258 942,016 $ 9,914,876 418,194 $ 6,794,293
Shares issued on
reinvestment of
distributions........... 163,942 163,942 37,528 392,541 39,881 648,155
Shares redeemed.......... (6,496,924) (6,496,924) (383,225) (4,048,379) (190,564) (3,128,347)
---------- ----------- -------- ----------- -------- -----------
Net Increase............. 2,214,276 $ 2,214,276 596,319 $ 6,258,738 267,511 $ 4,314,101
---------- ----------- -------- ----------- -------- -----------
---------- ----------- -------- ----------- -------- -----------
</TABLE>
<TABLE>
<CAPTION>
DIVIDEND AND GROWTH CAPITAL APPRECIATION
FUND STOCK FUND FUND
----------------------- --------------------- ---------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
---------- ----------- -------- ----------- -------- -----------
<S> <C> <C> <C> <C> <C> <C>
CLASS Y
Shares sold.............. 457,654 $ 7,759,404 13,909 $ 295,022 300,080 $ 7,034,852
Shares issued on
reinvestment of
distributions........... 8,423 142,676 -- -- -- --
Shares redeemed.......... (163,215) (2,800,547) (5,494) (116,217) (128,219) (2,923,597)
---------- ----------- -------- ----------- -------- -----------
Net Increase............. 302,862 $ 5,101,533 8,415 $ 178,805 171,861 $ 4,111,255
---------- ----------- -------- ----------- -------- -----------
---------- ----------- -------- ----------- -------- -----------
</TABLE>
<TABLE>
<CAPTION>
INTERNATIONAL
SMALL COMPANY FUND OPPORTUNITIES FUND MIDCAP FUND
----------------------- --------------------- ---------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
---------- ----------- -------- ----------- -------- -----------
<S> <C> <C> <C> <C> <C> <C>
CLASS Y
Shares sold.............. 353,058 $ 5,040,765 478,891 $ 6,099,317 380,566 $ 5,170,623
Shares issued on
reinvestment of
distributions........... -- -- 1,631 21,545 546 8,016
Shares redeemed.......... (205,289) (2,898,978) (189,168) (2,410,086) (73,222) (977,416)
---------- ----------- -------- ----------- -------- -----------
Net Increase............. 147,769 $ 2,141,787 291,354 $ 3,710,776 307,890 $ 4,201,223
---------- ----------- -------- ----------- -------- -----------
---------- ----------- -------- ----------- -------- -----------
</TABLE>
<TABLE>
<CAPTION>
GROWTH AND INCOME FUND HIGH YIELD FUND GLOBAL LEADERS FUND
----------------------- --------------------- ---------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
---------- ----------- -------- ----------- -------- -----------
<S> <C> <C> <C> <C> <C> <C>
CLASS Y
Shares sold.............. 48 $ 590 204,954 $ 2,104,543 140,025 $ 1,912,280
Shares issued on
reinvestment of
distributions........... -- -- 8,239 84,047 319 4,450
Shares redeemed.......... (6) (78) (90,638) (919,160) (24,386) (331,918)
---------- ----------- -------- ----------- -------- -----------
Net Increase............. 42 $ 512 122,555 $ 1,269,430 155,958 $ 1,584,811
---------- ----------- -------- ----------- -------- -----------
---------- ----------- -------- ----------- -------- -----------
</TABLE>
______________________________________ 61 ______________________________________
<PAGE>
THE HARTFORD MUTUAL FUNDS, INC.
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS -- (CONTINUED)
JUNE 30, 1999 (UNAUDITED)
The following information is for the year ended December 31, 1998:
<TABLE>
<CAPTION>
BOND INCOME STRATEGY
MONEY MARKET FUND FUND ADVISERS FUND
------------------------- ------------------------ ------------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
----------- ------------ ---------- ------------ ---------- ------------
<S> <C> <C> <C> <C> <C> <C>
CLASS A
Shares sold.............. 72,590,461 $ 72,590,461 2,217,207 $ 23,772,753 14,668,464 $216,723,178
Shares issued on
reinvestment of
distributions........... 1,109,430 1,109,430 197,172 2,108,757 534,467 8,159,366
Shares redeemed.......... (66,854,465) (66,854,465) (727,575) (7,803,755) (2,419,880) (35,649,152)
----------- ------------ ---------- ------------ ---------- ------------
Net Increase............. 6,845,426 $ 6,845,426 1,686,804 $ 18,077,755 12,783,051 $189,233,392
----------- ------------ ---------- ------------ ---------- ------------
----------- ------------ ---------- ------------ ---------- ------------
</TABLE>
<TABLE>
<CAPTION>
CAPITAL APPRECIATION
DIVIDEND AND GROWTH FUND STOCK FUND FUND
------------------------- ------------------------ ------------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
----------- ------------ ---------- ------------ ---------- ------------
<S> <C> <C> <C> <C> <C> <C>
CLASS A
Shares sold.............. 7,385,119 $116,092,425 10,615,322 $188,034,558 11,038,450 $220,993,901
Shares issued on
reinvestment of
distributions........... 125,486 1,961,799 130,820 2,493,447 103,173 2,127,930
Shares redeemed.......... (1,137,735) (17,589,450) (1,467,139) (25,736,755) (5,002,856) (95,695,005)
----------- ------------ ---------- ------------ ---------- ------------
Net Increase............. 6,372,870 $100,464,774 9,279,003 $164,791,250 6,138,767 $127,426,826
----------- ------------ ---------- ------------ ---------- ------------
----------- ------------ ---------- ------------ ---------- ------------
</TABLE>
<TABLE>
<CAPTION>
INTERNATIONAL
SMALL COMPANY FUND OPPORTUNITIES FUND MIDCAP FUND
------------------------- ------------------------ ------------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
----------- ------------ ---------- ------------ ---------- ------------
<S> <C> <C> <C> <C> <C> <C>
CLASS A
Shares sold.............. 2,098,937 $ 25,705,200 1,561,672 $ 18,230,610 1,877,292 $ 20,232,636
Shares issued on
reinvestment of
distributions........... 19,781 255,555 3,432 40,680 -- --
Shares redeemed.......... (887,713) (10,515,722) (357,834) (4,022,123) (112,836) (1,202,906)
----------- ------------ ---------- ------------ ---------- ------------
Net Increase............. 1,231,005 $ 15,445,033 1,207,270 $ 14,249,167 1,764,456 $ 19,029,730
----------- ------------ ---------- ------------ ---------- ------------
----------- ------------ ---------- ------------ ---------- ------------
</TABLE>
<TABLE>
<CAPTION>
GROWTH AND INCOME FUND HIGH YIELD FUND GLOBAL LEADERS FUND
------------------------- ------------------------ ------------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
----------- ------------ ---------- ------------ ---------- ------------
<S> <C> <C> <C> <C> <C> <C>
CLASS A
Shares sold.............. 989,220 $ 10,007,211 827,597 $ 8,285,112 290,399 $ 3,051,775
Shares issued on
reinvestment of
distributions........... 1,522 14,537 12,984 130,321 7,152 85,972
Shares redeemed.......... (19,379) (199,227) (2,419) (24,088) -- --
----------- ------------ ---------- ------------ ---------- ------------
Net Increase............. 971,363 $ 9,822,522 838,162 $ 8,391,345 297,551 $ 3,137,747
----------- ------------ ---------- ------------ ---------- ------------
----------- ------------ ---------- ------------ ---------- ------------
</TABLE>
______________________________________ 62 ______________________________________
<PAGE>
<TABLE>
<CAPTION>
BOND INCOME STRATEGY
MONEY MARKET FUND FUND ADVISERS FUND
------------------------- ------------------------ ------------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
----------- ------------ ---------- ------------ ---------- ------------
<S> <C> <C> <C> <C> <C> <C>
CLASS B
Shares sold.............. 18,281,807 $ 18,281,807 1,343,487 $ 14,373,594 12,788,835 $188,280,059
Shares issued on
reinvestment of
distributions........... 245,990 245,990 47,193 503,881 319,674 4,856,441
Shares redeemed.......... (11,040,944) (11,040,944) (369,800) (3,953,640) (799,212) (11,794,207)
----------- ------------ ---------- ------------ ---------- ------------
Net Increase............. 7,486,854 $ 7,486,854 1,020,880 $ 10,923,635 12,309,297 $181,342,293
----------- ------------ ---------- ------------ ---------- ------------
----------- ------------ ---------- ------------ ---------- ------------
</TABLE>
<TABLE>
<CAPTION>
CAPITAL APPRECIATION
DIVIDEND AND GROWTH FUND STOCK FUND FUND
------------------------- ------------------------ ------------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
----------- ------------ ---------- ------------ ---------- ------------
<S> <C> <C> <C> <C> <C> <C>
CLASS B
Shares sold.............. 4,738,961 $ 74,046,718 7,718,134 $134,930,641 8,049,387 $161,848,122
Shares issued on
reinvestment of
distributions........... 42,146 645,761 90,591 1,697,807 84,258 1,714,921
Shares redeemed.......... (512,477) (7,915,132) (594,162) (10,213,894) (2,499,822) (46,713,467)
----------- ------------ ---------- ------------ ---------- ------------
Net Increase............. 4,268,630 $ 66,777,347 7,214,563 $126,414,554 5,633,823 $116,849,576
----------- ------------ ---------- ------------ ---------- ------------
----------- ------------ ---------- ------------ ---------- ------------
</TABLE>
<TABLE>
<CAPTION>
INTERNATIONAL
SMALL COMPANY FUND OPPORTUNITIES FUND MIDCAP FUND
------------------------- ------------------------ ------------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
----------- ------------ ---------- ------------ ---------- ------------
<S> <C> <C> <C> <C> <C> <C>
CLASS B
Shares sold.............. 695,531 $ 8,513,456 425,868 $ 4,892,462 657,060 $ 7,070,206
Shares issued on
reinvestment of
distributions........... 9,889 126,081 2 25 -- --
Shares redeemed.......... (109,150) (1,332,560) (107,860) (1,201,434) (29,393) (312,238)
----------- ------------ ---------- ------------ ---------- ------------
Net Increase............. 596,270 $ 7,306,977 318,011 $ 3,691,053 627,667 $ 6,757,968
----------- ------------ ---------- ------------ ---------- ------------
----------- ------------ ---------- ------------ ---------- ------------
</TABLE>
<TABLE>
<CAPTION>
GROWTH AND INCOME FUND HIGH YIELD FUND GLOBAL LEADERS FUND
------------------------- ------------------------ ------------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
----------- ------------ ---------- ------------ ---------- ------------
<S> <C> <C> <C> <C> <C> <C>
CLASS B
Shares sold.............. 312,295 $ 3,119,978 228,235 $ 2,283,684 40,185 $ 421,831
Shares issued on
reinvestment of
distributions........... 189 1,806 2,050 20,573 969 11,627
Shares redeemed.......... (2,494) (23,663) (1,382) (14,028) (2,743) (34,701)
----------- ------------ ---------- ------------ ---------- ------------
Net Increase............. 309,991 $ 3,098,120 228,903 $ 2,290,229 38,411 $ 398,757
----------- ------------ ---------- ------------ ---------- ------------
----------- ------------ ---------- ------------ ---------- ------------
</TABLE>
<TABLE>
<CAPTION>
BOND INCOME STRATEGY
MONEY MARKET FUND FUND ADVISERS FUND
------------------------- ------------------------ ------------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
----------- ------------ ---------- ------------ ---------- ------------
<S> <C> <C> <C> <C> <C> <C>
CLASS C
Shares sold.............. 2,584,648 $ 2,584,648 577,572 $ 5,816,789 5,386,522 $ 52,552,713
Shares issued on
reinvestment of
distributions........... 9,179 9,179 6,895 69,395 129,003 1,283,774
Shares redeemed.......... (1,390,473) 1,390,473) (45,670) (458,890) (86,185) (843,737)
----------- ------------ ---------- ------------ ---------- ------------
Net Increase............. 1,203,354 $ 1,203,354 538,797 $ 5,427,294 5,429,340 $ 52,992,750
----------- ------------ ---------- ------------ ---------- ------------
----------- ------------ ---------- ------------ ---------- ------------
</TABLE>
______________________________________ 63 ______________________________________
<PAGE>
THE HARTFORD MUTUAL FUNDS, INC.
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS -- (CONTINUED)
JUNE 30, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
CAPITAL APPRECIATION
DIVIDEND AND GROWTH FUND STOCK FUND FUND
------------------------- ------------------------ ------------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
----------- ------------ ---------- ------------ ---------- ------------
<S> <C> <C> <C> <C> <C> <C>
CLASS C
Shares sold.............. 952,615 $ 9,249,867 3,472,413 $ 33,293,936 1,549,815 $ 14,023,487
Shares issued on
reinvestment of
distributions........... 6,321 61,804 50,177 507,292 -- --
Shares redeemed.......... (22,367) (220,615) (73,495) (680,394) (57,413) (514,760)
----------- ------------ ---------- ------------ ---------- ------------
Net Increase............. 936,569 $ 9,091,056 3,449,096 $ 33,120,833 1,492,402 $ 13,508,727
----------- ------------ ---------- ------------ ---------- ------------
----------- ------------ ---------- ------------ ---------- ------------
</TABLE>
<TABLE>
<CAPTION>
INTERNATIONAL
SMALL COMPANY FUND OPPORTUNITIES FUND MIDCAP FUND
------------------------- ------------------------ ------------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
----------- ------------ ---------- ------------ ---------- ------------
<S> <C> <C> <C> <C> <C> <C>
CLASS C
Shares sold.............. 269,600 $ 2,413,522 144,221 $ 1,288,663 104,562 $ 989,561
Shares issued on
reinvestment of
distributions........... -- -- 353 3,362 -- --
Shares redeemed.......... (5,840) (55,486) (394) (3,680) (5,508) (49,502)
----------- ------------ ---------- ------------ ---------- ------------
Net Increase............. 263,760 $ 2,358,036 144,180 $ 1,288,344 99,054 $ 940,059
----------- ------------ ---------- ------------ ---------- ------------
----------- ------------ ---------- ------------ ---------- ------------
</TABLE>
<TABLE>
<CAPTION>
GROWTH AND INCOME FUND HIGH YIELD FUND GLOBAL LEADERS FUND
------------------------- ------------------------ ------------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
----------- ------------ ---------- ------------ ---------- ------------
<S> <C> <C> <C> <C> <C> <C>
CLASS C
Shares sold.............. 339,082 $ 3,403,834 223,263 $ 2,238,547 39,826 $ 415,228
Shares issued on
reinvestment of
distributions........... 128 1,202 2,376 23,878 1,008 12,093
Shares redeemed.......... (7,974) (77,476) (1,078) (10,870) --
----------- ------------ ---------- ------------ ---------- ------------
Net Increase............. 331,236 $ 3,327,559 224,561 $ 2,251,555 40,834 $ 427,321
----------- ------------ ---------- ------------ ---------- ------------
----------- ------------ ---------- ------------ ---------- ------------
</TABLE>
<TABLE>
<CAPTION>
BOND INCOME STRATEGY
MONEY MARKET FUND FUND ADVISERS FUND
------------------------- ------------------------ ------------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
----------- ------------ ---------- ------------ ---------- ------------
<S> <C> <C> <C> <C> <C> <C>
CLASS Y
Shares sold.............. 11,162,631 $ 11,162,631 782,903 $ 8,441,971 1,028,339 $ 15,147,226
Shares issued on
reinvestment of
distributions........... 138,240 138,240 45,476 488,379 123,062 1,880,476
Shares redeemed.......... (8,618,326) (8,618,326) (279,284) (3,002,181 (442,801) (6,438,471)
----------- ------------ ---------- ------------ ---------- ------------
Net Increase............. 2,682,545 $ 2,682,545 549,095 $ 5,928,169 708,600 $ 10,589,232
----------- ------------ ---------- ------------ ---------- ------------
----------- ------------ ---------- ------------ ---------- ------------
</TABLE>
<TABLE>
<CAPTION>
CAPITAL APPRECIATION
DIVIDEND AND GROWTH FUND STOCK FUND FUND
------------------------- ------------------------ ------------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
----------- ------------ ---------- ------------ ---------- ------------
<S> <C> <C> <C> <C> <C> <C>
CLASS Y
Shares sold.............. 534,171 $ 8,408,783 39,075 $ 725,569 678,544 $ 13,618,020
Shares issued on
reinvestment of
distributions........... 16,122 254,131 4,044 77,800 8,140 169,470
Shares redeemed.......... (422,594) (6,795,450) (6,476) (112,996) (826,549) (17,308,917)
----------- ------------ ---------- ------------ ---------- ------------
Net Increase
(decrease).............. 127,700 $ 1,867,464 36,643 $ 690,373 (139,865) $ (3,521,427)
----------- ------------ ---------- ------------ ---------- ------------
----------- ------------ ---------- ------------ ---------- ------------
</TABLE>
______________________________________ 64 ______________________________________
<PAGE>
<TABLE>
<CAPTION>
INTERNATIONAL
SMALL COMPANY FUND OPPORTUNITIES FUND MIDCAP FUND
------------------------- ------------------------ ------------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
----------- ------------ ---------- ------------ ---------- ------------
<S> <C> <C> <C> <C> <C> <C>
CLASS Y
Shares sold.............. 513,335 $ 6,387,840 574,757 $ 6,741,690 355,368 $ 3,943,675
Shares issued on
reinvestment of
distributions........... 7,878 102,734 3,164 37,687 -- --
Shares redeemed.......... (296,016) (3,687,096) (275,192) (3,124,385) (81,834) (874,044)
----------- ------------ ---------- ------------ ---------- ------------
Net Increase............. 225,198 $ 2,803,478 302,729 $ 3,654,992 273,535 $ 3,069,631
----------- ------------ ---------- ------------ ---------- ------------
----------- ------------ ---------- ------------ ---------- ------------
</TABLE>
<TABLE>
<CAPTION>
GROWTH AND INCOME FUND HIGH YIELD FUND GLOBAL LEADERS FUND
------------------------- ------------------------ ------------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
----------- ------------ ---------- ------------ ---------- ------------
<S> <C> <C> <C> <C> <C> <C>
CLASS Y
Shares sold.............. 33,554 $ 339,664 100,000 $ 1,000,000 30,000 $ 300,000
Shares issued on
reinvestment of
distributions........... 98 940 1,776 17,821 867 10,428
Shares redeemed.......... -- -- -- -- -- --
----------- ------------ ---------- ------------ ---------- ------------
Net Increase............. 33,652 $ 340,604 101,776 $ 1,017,821 30,867 $ 310,428
----------- ------------ ---------- ------------ ---------- ------------
----------- ------------ ---------- ------------ ---------- ------------
</TABLE>
8. CAPITAL LOSS CARRYOVER:
At December 31, 1998, (tax year-end) the following Funds had capital loss
carry forwards for U.S. federal tax purposes of approximately:
<TABLE>
<CAPTION>
YEAR OF
FUND AMOUNT EXPIRATION
- ---------------------------------------- ---------- ----------
<S> <C> <C>
Capital Appreciation Fund............... $3,188,259 2006
International Income Strategy Fund...... 1,727,302 2006
Dividend and Growth Fund................ 108,720 2006
Stock Fund.............................. 2,550,045 2006
</TABLE>
9. EUROPEAN MONETARY UNION:
On January 1, 1999, the European Monetary Union "EMU" introduced a new
single currency, the euro, which will replace the national currencies of
the participating members countries. Until 2002, the national currencies
will continue to exist, but exchange rates will be tied to the euro. The
introduction of the euro is likely to effect all stages of the investment
process, including trading, foreign exchange and accounting. Because this
change to a single currency is new, the introduction of the euro may result
in market volatility and may effect the business or financial conditions of
European issuers or of a Portfolio investing in European Issuers. In
addition, while the conversion will eliminate currency risk among the
participating nations, currency risk between the euro and the U.S. dollar
remains a factor.
10. LINE OF CREDIT:
The Funds participate in a $500,000,000 committed revolving line of credit
facility. The facility is to be used for temporary or emergency purposes.
Under the arrangement, the Funds are required to own securities having a
market value in excess of 300% of the total bank borrowings. The interest
rate on borrowings varies depending on the nature of the loan. The facility
also requires a fee to be paid based on the amount of the commitment which
has not been utilized. During the six months ended June 30, 1999, the Funds
did not have any borrowings under these facilities.
______________________________________ 65 ______________________________________
<PAGE>
THE HARTFORD MUTUAL FUNDS, INC.
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS -- (CONTINUED)
JUNE 30, 1999 (UNAUDITED)
11. REVERSE STOCK SPLIT FOR CLASS C:
On February 11, 1999, a reverse stock split was declared for Class C of
each of the following funds, using the following reverse split percentages:
<TABLE>
<CAPTION>
REVERSE SPLIT
FUND PERCENTAGE
- -------------------------------------------------- -------------
<S> <C>
Bond Income Strategy Fund......................... 93.451824%
Advisers Fund..................................... 64.258312
Dividend and Growth Fund.......................... 62.727844
Stock Fund........................................ 53.974026
Capital Appreciation Fund......................... 50.849102
Small Company Fund................................ 80.078431
International Opportunities Fund.................. 81.545064
MidCap Fund....................................... 89.020270
Growth and Income Fund............................ 98.582817
</TABLE>
______________________________________ 66 ______________________________________
<PAGE>
This page intentionally left blank
<PAGE>
THE HARTFORD MUTUAL FUNDS, INC.
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
-- SELECTED PER-SHARE DATA(A)(F) --
------------------------------------------------------------------------------------------------------
NET REALIZED
AND
NET ASSET UNREALIZED DIVIDENDS
VALUE AT NET GAIN TOTAL FROM FROM NET DISTRIBUTIONS DISTRIBUTIONS
BEGINNING INVESTMENT (LOSS) ON INVESTMENT INVESTMENT FROM REALIZED FROM
OF PERIOD INCOME INVESTMENTS OPERATIONS INCOME CAPITAL GAINS CAPITAL
---------- ----------- ------------- ----------- ----------- -------------- --------------
<S> <C> <C> <C> <C> <C> <C> <C>
THE HARTFORD MONEY MARKET
FUND
For the Six Months
Ended June 30, 1999
(unaudited)
Class A............... $ 1.00 $ 0.02 $-- $-- $ (0.02) $-- $--
Class B............... 1.00 0.02 -- -- (0.02) -- --
Class Y............... 1.00 0.02 -- -- (0.02) -- --
Class C............... 1.00 0.02 -- -- (0.02) -- --
For the Year Ended
December 31, 1998
Class A............... 1.00 0.50 -- 0.50 (0.50) -- --
Class B............... 1.00 0.40 -- 0.40 (0.40) -- --
Class Y............... 1.00 0.50 -- 0.50 (0.50) -- --
From inception August
1, 1998, through
December 31, 1998
Class C............... 1.00 0.20 -- 0.20 (0.20) -- --
For the Year Ended
December 31, 1997
Class A............... 1.00 0.05 -- 0.05 (0.05) -- --
Class B............... 1.00 0.01 -- 0.01 (0.01) -- --
Class Y............... 1.00 0.05 -- 0.05 (0.05) -- --
From inception July 1,
1996 to December 31,
1996
Class A............... 1.00 0.02 -- 0.02 (0.02) -- --
Class Y............... 1.00 0.02 -- 0.02 (0.02) -- --
THE HARTFORD BOND INCOME
STRATEGY FUND
For the Six Months
Ended June 30, 1999
(unaudited)
Class A............... 10.76 0.27 (0.57) (0.30) (0.26) (0.02) --
Class B............... 10.72 0.24 (0.57) (0.33) (0.22) (0.02) --
Class Y............... 10.81 0.28 (0.56) (0.28) (0.27) (0.02) --
Class C............... 10.76 0.24 (0.57) (0.33) (0.22) (0.02) --
For the Year Ended
December 31, 1998
Class A............... 10.61 0.54 0.23 0.77 (0.54) (0.08) --
Class B............... 10.58 0.47 0.22 0.69 (0.47) (0.08) --
Class Y............... 10.64 0.58 0.24 0.82 (0.57) (0.08) --
From inception August
1, 1998, through
December 31, 1998
Class C............... 10.70 0.19 0.15 0.34 (0.21) (0.07) --
For the Year Ended
December 31, 1997
Class A............... 10.26 0.57 0.50 1.07 (0.56) (0.16) --
Class B............... 10.25 0.53 0.46 0.99 (0.50) (0.16) --
Class Y............... 10.27 0.58 0.54 1.12 (0.59) (0.16) --
From inception July 1,
1996 to December 31,
1996
Class A............... 10.00 0.26 0.31 0.57 (0.25) (0.06) --
Class B............... 10.00 0.20 0.34 0.54 (0.23) (0.06) --
Class Y............... 10.00 0.28 0.31 0.59 (0.26) (0.06) --
THE HARTFORD ADVISERS
FUND
For the Six Months
Ended June 30, 1999
(unaudited)
Class A............... 15.71 0.15 1.03 1.18 (0.12) (0.03) --
Class B............... 15.59 0.10 1.01 1.11 (0.07) (0.03) --
Class Y............... 15.80 0.19 1.04 1.23 (0.14) (0.03) --
Class C............... 15.73 0.11 1.02 1.13 (0.08) (0.03) --
For the Year Ended
December 31, 1998
Class A............... 13.41 0.23 2.58 2.81 (0.25) (0.26) --
Class B............... 13.33 0.15 2.54 2.69 (0.17) (0.26) --
Class Y............... 13.46 0.29 2.59 2.88 (0.28) (0.26) --
From inception August
1, 1998, through
December 31, 1998
Class C............... 15.56 0.16 0.64 0.80 (0.22) (0.40) --
For the Year Ended
December 31, 1997
Class A............... 11.08 0.16 2.41 2.57 (0.17) (0.07) --
Class B............... 11.05 0.16 2.31 2.47 (0.12) (0.07) --
Class Y............... 11.10 0.31 2.32 2.63 (0.20) (0.07) --
From inception July 1,
1996 to December 31,
1996
Class A............... 10.00 0.09 1.07 1.16 (0.08) -- --
Class B............... 10.00 0.02 1.11 1.13 (0.08) -- --
Class Y............... 10.00 0.03 1.16 1.19 (0.09) -- --
</TABLE>
(a) Information presented relates to a capital share outstanding throughout the
indicated period.
(b) Annualized.
(c) Does not include sales charges.
(d) Not annualized.
(e) Portfolio turnover rate is calculated on the basis of the Fund as a whole
without distinguishing between the classes of shares issued.
(f) Per share amounts for the period of August 1, 1998 through December 31,
1998 have been restated to reflect a reverse stock split for Class C
effective February 11, 1998. The following reverse split percentages were
used: Bond Fund 93.451824% and Advisers Fund 64.258312%.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THIS FINANCIAL STATEMENT.
68
<PAGE>
<TABLE>
<CAPTION>
-- RATIOS AND SUPPLEMENTAL DATA --
--------------------------------------------------
-- SELECTED PER-SHARE DATA(A) -- RATIO OF
-------------------------------------------- EXPENSES TO
NET ASSET NET ASSETS AVERAGE
NET INCREASE VALUE AT AT END OF NET ASSETS
TOTAL (DECREASE) IN END OF TOTAL PERIOD BEFORE WAIVERS AND
DISTRIBUTIONS NET ASSETS PERIOD RETURN(C) (IN THOUSANDS) REIMBURSEMENTS
-------------- -------------- ---------- ----------- --------------- ------------------
<S> <C> <C> <C> <C> <C> <C>
THE HARTFORD MONEY MARKET
FUND
For the Six Months
Ended June 30, 1999
(unaudited)
Class A................ $ (0.02) $-- $ 1.00 2.00% $ 35,842 1.14%(b)
Class B................ (0.02) -- 1.00 1.64 18,083 1.84(b)
Class Y................ (0.02) -- 1.00 2.23 7,535 0.67(b)
Class C................ (0.02) -- 1.00 1.65 4,037 1.85(b)
For the Year Ended
December 31, 1998
Class A................ (0.50) -- 1.00 4.69 29,424 1.20
Class B................ (0.40) -- 1.00 3.97 11,936 1.86
Class Y................ (0.50) -- 1.00 5.16 5,320 0.71
From inception August
1, 1998, through
December 31, 1998
Class C................ (0.20) -- 1.00 1.58(d) 1,203 2.02(b)
For the Year Ended
December 31, 1997
Class A................ (0.05) -- 1.00 4.73 22,578 1.23
Class B................ (0.01) -- 1.00 1.45(d) 4,449 3.63(b)
Class Y................ (0.05) -- 1.00 5.23 2,638 0.82
From inception July 1,
1996 to December 31,
1996
Class A................ (0.02) -- 1.00 2.01(d) 10,754 2.70(b)
Class Y................ (0.02) -- 1.00 2.34(d) 0.30 3,496.38(b)
THE HARTFORD BOND INCOME
STRATEGY FUND
For the Six Months
Ended June 30, 1999
(unaudited)
Class A................ (0.28) (0.57) 10.19 (2.75) 56,883 1.28(b)
Class B................ (0.24) (0.57) 10.15 (3.10) 21,433 1.98(b)
Class Y................ (0.29) (0.57) 10.24 (2.59) 16,308 0.82(b)
Class C................ (0.24) (0.57) 10.19 (3.09) 12,156 1.99(b)
For the Year Ended
December 31, 1998
Class A................ (0.62) 0.15 10.76 7.48 47,143 1.27
Class B................ (0.55) 0.14 10.72 6.70 16,772 2.01
Class Y................ (0.65) 0.17 10.81 7.98 10,766 0.84
From inception August
1, 1998, through
December 31, 1998
Class C................ (0.28) 0.06 10.76 3.19(d) 5,420 2.13(b)
For the Year Ended
December 31, 1997
Class A................ (0.72) 0.35 10.61 10.80 28,589 1.44
Class B................ (0.66) 0.33 10.58 9.96 5,745 2.19
Class Y................ (0.75) 0.37 10.64 11.30 5,756 1.01
From inception July 1,
1996 to December 31,
1996
Class A................ (0.31) 0.26 10.26 5.73(d) 10,925 2.72(b)
Class B................ (0.29) 0.25 10.25 5.38(d) 124 22.36(b)
Class Y................ (0.32) 0.27 10.27 5.95(d) 5 185.34(b)
THE HARTFORD ADVISERS
FUND
For the Six Months
Ended June 30, 1999
(unaudited)
Class A................ (0.15) 1.04 16.75 7.58 538,085 1.32(b)
Class B................ (0.10) 1.01 16.60 7.13 438,637 2.02(b)
Class Y................ (0.17) 1.06 16.86 7.81 66,269 0.84(b)
Class C................ (0.11) 1.02 16.75 7.15 216,228 2.04(b)
For the Year Ended
December 31, 1998
Class A................ (0.51) 2.30 15.71 21.09 316,435 1.38
Class B................ (0.43) 2.26 15.59 20.27 237,959 2.11
Class Y................ (0.54) 2.34 15.80 21.62 57,891 0.90
From inception August
1, 1998, through
December 31, 1998
Class C................ (0.62) 0.17 15.73 5.25(d) 54,907 2.18(b)
For the Year Ended
December 31, 1997
Class A................ (0.24) 2.33 13.41 23.30 98,633 1.55
Class B................ (0.19) 2.28 13.33 22.44 39,334 2.31
Class Y................ (0.27) 2.36 13.46 23.80 39,773 1.03
From inception July 1,
1996 to December 31,
1996
Class A................ (0.08) 1.08 11.08 11.56(d) 14,347 2.94(b)
Class B................ (0.08) 1.05 11.05 11.28(d) 1,499 6.71(b)
Class Y................ (0.09) 1.10 11.10 11.88(d) 34 144.82(b)
<CAPTION>
RATIO OF RATIO OF
EXPENSES TO NET
AVERAGE INVESTMENT
NET ASSETS INCOME PORTFOLIO
AFTER WAIVERS AND TO AVERAGE TURNOVER
REIMBURSEMENTS NET ASSETS RATE(E)
----------------- -------------- --------
<S> <C> <C> <C>
THE HARTFORD MONEY MARKET
FUND
For the Six Months
Ended June 30, 1999
(unaudited)
Class A................ 1.00%(b) 1.96% N/A
Class B................ 1.70(b) 1.61 --
Class Y................ 0.55(b) 2.19 --
Class C................ 1.70(b) 1.60 --
For the Year Ended
December 31, 1998
Class A................ 1.00 4.57 N/A
Class B................ 1.70 3.83 --
Class Y................ 0.55 4.99 --
From inception August
1, 1998, through
December 31, 1998
Class C................ 1.70(b) 3.57(b) --
For the Year Ended
December 31, 1997
Class A................ 1.00 4.67 N/A
Class B................ 1.70(b) 3.92(b) --
Class Y................ 0.55 5.13 --
From inception July 1,
1996 to December 31,
1996
Class A................ 1.00(b) 4.49(b) N/A
Class Y................ 0.55(b) 4.56(b) --
THE HARTFORD BOND INCOME
STRATEGY FUND
For the Six Months
Ended June 30, 1999
(unaudited)
Class A................ 1.25(b) 2.49 68.70%
Class B................ 1.95(b) 2.14 --
Class Y................ 0.80(b) 2.72 --
Class C................ 1.95(b) 2.15 --
For the Year Ended
December 31, 1998
Class A................ 1.25 5.04 135.01
Class B................ 1.95 4.32 --
Class Y................ 0.80 5.48 --
From inception August
1, 1998, through
December 31, 1998
Class C................ 1.95(b) 4.13(b) --
For the Year Ended
December 31, 1997
Class A................ 1.25 5.59 220.45
Class B................ 1.95 4.85 --
Class Y................ 0.80 5.98 --
From inception July 1,
1996 to December 31,
1996
Class A................ 1.25(b) 5.72(b) 75.52
Class B................ 1.95(b) 5.22(b) --
Class Y................ 0.80(b) 6.17(b) --
THE HARTFORD ADVISERS
FUND
For the Six Months
Ended June 30, 1999
(unaudited)
Class A................ 1.32(b) 0.82 22.52
Class B................ 2.02(b) 0.47 --
Class Y................ 0.84(b) 1.06 --
Class C................ 2.04(b) 0.47 --
For the Year Ended
December 31, 1998
Class A................ 1.38 1.67 40.24
Class B................ 2.10 0.98 --
Class Y................ 0.90 2.09 --
From inception August
1, 1998, through
December 31, 1998
Class C................ 2.10(b) 1.06(b) --
For the Year Ended
December 31, 1997
Class A................ 1.40 1.54 38.62
Class B................ 2.10 0.80 --
Class Y................ 0.95 2.08 --
From inception July 1,
1996 to December 31,
1996
Class A................ 1.40(b) 2.13(b) 19.75
Class B................ 2.10(b) 1.24(b) --
Class Y................ 0.95(b) 2.75(b) --
</TABLE>
(a) Information presented relates to a capital share outstanding throughout the
indicated period.
(b) Annualized.
(c) Does not include sales charges.
(d) Not annualized.
(e) Portfolio turnover rate is calculated on the basis of the Fund as a whole
without distinguishing between the classes of shares issued.
(f) Per share amounts for the period of August 1, 1998 through December 31,
1998 have been restated to reflect a reverse stock split for Class C
effective February 11, 1998. The following reverse split percentages were
used: Bond Fund 93.451824% and Advisers Fund 64.258312%.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THIS FINANCIAL STATEMENT.
69
<PAGE>
THE HARTFORD MUTUAL FUNDS, INC.
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS -- (CONTINUED)
<TABLE>
<CAPTION>
-- SELECTED PER-SHARE DATA(A)(F) --
------------------------------------------------------------------------------------------------------
NET REALIZED
AND
NET ASSET UNREALIZED DIVIDENDS
VALUE AT NET GAIN TOTAL FROM FROM NET DISTRIBUTIONS DISTRIBUTIONS
BEGINNING INVESTMENT (LOSS) ON INVESTMENT INVESTMENT FROM REALIZED FROM
OF PERIOD INCOME INVESTMENTS OPERATIONS INCOME CAPITAL GAINS CAPITAL
---------- ----------- ------------- ----------- ----------- -------------- --------------
<S> <C> <C> <C> <C> <C> <C> <C>
THE HARTFORD DIVIDEND AND
GROWTH FUND
For the Six Months
Ended June 30, 1999
(unaudited)
Class A............... $16.62 $ 0.09 $ 1.05 $ 1.14 $ (0.08) $ (0.01) $--
Class B............... 16.47 0.03 1.04 1.07 (0.02) (0.01) --
Class Y............... 16.69 0.12 1.07 1.19 (0.10) (0.01) --
Class C............... 16.48 0.05 1.02 1.07 (0.03) (0.01) --
For the Year Ended
December 31, 1998
Class A............... 14.72 0.15 1.97 2.12 (0.15) (0.07) --
Class B............... 14.61 0.06 1.92 1.98 (0.05) (0.07) --
Class Y............... 14.77 0.24 1.94 2.18 (0.19) (0.07) --
From inception August
1, 1998, through
December 31, 1998
Class C............... 15.94 0.05 0.70 0.75 (0.10) (0.11) --
For the Year Ended
December 31, 1997
Class A............... 11.45 0.13 3.40 3.53 (0.12) (0.14) --
Class B............... 11.40 0.13 3.30 3.43 (0.08) (0.14) --
Class Y............... 11.46 0.21 3.39 3.60 (0.15) (0.14) --
From inception July 1,
1996 to December 31,
1996
Class A............... 10.00 0.07 1.46 1.53 (0.06) (0.02) --
Class B............... 10.00 0.01 1.48 1.49 (0.07) (0.02) --
Class Y............... 10.00 0.02 1.53 1.55 (0.07) (0.02) --
THE HARTFORD STOCK FUND
For the Six Months
Ended June 30, 1999
(unaudited)
Class A............... 19.70 (0.01) 2.93 2.92 -- -- --
Class B............... 19.36 (0.04) 2.84 2.80 -- -- --
Class Y............... 19.89 0.04 2.97 3.01 -- -- --
Class C............... 19.36 (0.04) 2.83 2.79 -- -- --
For the Year Ended
December 31, 1998
Class A............... 15.16 (0.01) 4.75 4.74 -- (0.19) (0.01)
Class B............... 15.01 (0.05) 4.60 4.55 -- (0.19) (0.01)
Class Y............... 15.25 0.06 4.78 4.84 -- (0.19) (0.01)
From inception August
1, 1998, through
December 31, 1998
Class C............... 18.53 (0.02) 1.22 1.20 -- (0.35) (0.02)
For the Year Ended
December 31, 1997
Class A............... 11.53 -- 3.66 3.66 -- (0.03) --
Class B............... 11.50 (0.02) 3.56 3.54 -- (0.03) --
Class Y............... 11.55 0.03 3.70 3.73 -- (0.03) --
From inception July 1,
1996 to December 31,
1996
Class A............... 10.00 0.02 1.53 1.55 (0.02) -- --
Class B............... 10.00 -- 1.52 1.52 (0.02) -- --
Class Y............... 10.00 0.01 1.57 1.58 (0.03) -- --
THE HARTFORD CAPITAL
APPRECIATION FUND
For the Six Months
Ended June 30, 1999
(unaudited)
Class A............... 20.42 (0.05) 5.59 5.53 -- -- --
Class B............... 20.08 (0.13) 5.49 5.36 -- -- --
Class Y............... 20.66 (0.03) 5.68 5.66 -- -- --
Class C............... 20.08 (0.09) 5.43 5.34 -- -- --
For the Year Ended
December 31, 1998
Class A............... 19.90 (0.10) 0.75 0.65 -- (0.13) --
Class B............... 19.71 (0.21) 0.71 0.50 -- (0.13) --
Class Y............... 20.05 (0.06) 0.80 0.74 -- (0.13) --
From inception August
1, 1998, through
December 31, 1998
Class C............... 19.67 (0.06) 0.47 0.41 -- -- --
For the Year Ended
December 31, 1997
Class A............... 13.36 (0.03) 7.34 7.31 -- (0.77) --
Class B............... 13.32 (0.06) 7.22 7.16 -- (0.77) --
Class Y............... 13.38 (0.03) 7.47 7.44 -- (0.77) --
From inception July 1,
1996 to December 31,
1996
Class A............... 10.00 (0.03) 3.80 3.77 -- (0.41) --
Class B............... 10.00 (0.02) 3.75 3.73 -- (0.41) --
Class Y............... 10.00 -- 3.79 3.79 -- (0.41) --
</TABLE>
(a) Information presented relates to a capital share outstanding throughout the
indicated period.
(b) Annualized.
(c) Does not include sales charges.
(d) Not annualized.
(e) Portfolio turnover rate is calculated on the basis of the Fund as a whole
without distinguishing between the classes of shares issued.
(f) Per share amounts for the period of August 1, 1998 through December 31,
1998 have been restated to reflect a reverse stock split for Class C
effective February 11, 1998. The following reverse split percentages were
used: Dividend and Growth Fund 62.727844%, Stock Fund 53.974026% and
Capital Appreciation Fund 50.849102%.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THIS FINANCIAL STATEMENT.
70
<PAGE>
<TABLE>
<CAPTION>
-- RATIOS AND SUPPLEMENTAL DATA --
--------------------------------------------------
-- SELECTED PER-SHARE DATA(A) -- RATIO OF
-------------------------------------------- EXPENSES TO
NET ASSET NET ASSETS AVERAGE
NET INCREASE VALUE AT AT END OF NET ASSETS
TOTAL (DECREASE) IN END OF TOTAL PERIOD BEFORE WAIVERS AND
DISTRIBUTIONS NET ASSETS PERIOD RETURN(C) (IN THOUSANDS) REIMBURSEMENTS
-------------- -------------- ---------- ----------- --------------- ------------------
<S> <C> <C> <C> <C> <C> <C>
THE HARTFORD DIVIDEND AND
GROWTH FUND
For the Six Months
Ended June 30, 1999
(unaudited)
Class A................ $ (0.08) $ 1.05 $17.67 6.85% $225,063 1.36%(b)
Class B................ (0.03) 1.05 17.52 6.54 123,577 2.06(b)
Class Y................ (0.11) 1.08 17.77 7.16 23,580 0.90(b)
Class C................ (0.04) 1.03 17.51 6.48 25,904 2.08(b)
For the Year Ended
December 31, 1998
Class A................ (0.22) 1.90 16.62 14.47 182,495 1.38
Class B................ (0.12) 1.86 16.47 13.62 108,344 2.10
Class Y................ (0.26) 1.92 16.69 14.86 17,098 0.91
From inception August
1, 1998, through
December 31, 1998
Class C................ (0.21) 0.54 16.48 4.82(d) 9,682 2.20(b)
For the Year Ended
December 31, 1997
Class A................ (0.26) 3.27 14.72 30.99 67,861 1.59
Class B................ (0.22) 3.21 14.61 30.20 33,730 2.34
Class Y................ (0.29) 3.31 14.77 31.59 13,236 1.09
From inception July 1,
1996 to December 31,
1996
Class A................ (0.08) 1.45 11.45 15.29(d) 6,083 4.12(b)
Class B................ (0.09) 1.40 11.40 14.82(d) 33,741 12.97(b)
Class Y................ (0.09) 1.46 11.46 15.49(d) 13,241 141.53(b)
THE HARTFORD STOCK FUND
For the Six Months
Ended June 30, 1999
(unaudited)
Class A................ -- 2.92 22.62 14.82 506,404 1.39(b)
Class B................ -- 2.80 22.16 14.46 329,175 2.09(b)
Class Y................ -- 3.01 22.90 15.13 9,308 0.90(b)
Class C................ -- 2.79 22.15 14.40 148,804 2.11(b)
For the Year Ended
December 31, 1998
Class A................ (0.20) 4.54 19.70 31.33 268,226 1.44
Class B................ (0.20) 4.35 19.36 30.38 185,205 2.16
Class Y................ (0.20) 4.64 19.89 31.80 7,919 0.96
From inception August
1, 1998, through
December 31, 1998
Class C................ (0.37) 0.83 19.36 6.60(d) 36,039 2.24(b)
For the Year Ended
December 31, 1997
Class A................ (0.03) 3.63 15.16 31.78 65,763 1.64
Class B................ (0.03) 3.51 15.01 30.82 35,294 2.38
Class Y................ (0.03) 3.70 15.25 32.33 5,510 1.11
From inception July 1,
1996 to December 31,
1996
Class A................ (0.02) 1.53 11.53 15.50(d) 6,273 3.96(b)
Class B................ (0.02) 1.50 11.50 15.20(d) 1,254 7.76(b)
Class Y................ (0.03) 1.55 11.55 15.80(d) 44 133.50(b)
THE HARTFORD CAPITAL
APPRECIATION FUND
For the Six Months
Ended June 30, 1999
(unaudited)
Class A................ -- 5.53 25.95 27.08 475,652 1.38(b)
Class B................ -- 5.36 25.44 26.69 360,987 2.08(b)
Class Y................ -- 5.66 26.32 27.40 39,811 0.91(b)
Class C................ -- 5.34 25.42 26.60 48,702 2.10(b)
For the Year Ended
December 31, 1998
Class A................ (0.13) 0.52 20.42 3.26 364,951 1.44
Class B................ (0.13) 0.37 20.08 2.52 290,756 2.15
Class Y................ (0.13) 0.61 20.66 3.68 27,700 0.96
From inception August
1, 1998, through
December 31, 1998
Class C................ -- 0.41 20.08 2.10(d) 15,231 2.29(b)
For the Year Ended
December 31, 1997
Class A................ (0.77) 6.54 19.90 55.11 233,601 1.64
Class B................ (0.77) 6.39 19.71 54.15 174,392 2.38
Class Y................ (0.77) 6.67 20.05 56.00 26,693 1.13
From inception July 1,
1996 to December 31,
1996
Class A................ (0.41) 3.36 13.36 37.75(d) 9,028 4.10(b)
Class B................ (0.41) 3.32 13.32 37.35(d) 889 9.05(b)
Class Y................ (0.41) 3.38 13.38 37.95(d) 107 93.64(b)
<CAPTION>
RATIO OF RATIO OF
EXPENSES TO NET
AVERAGE INVESTMENT
NET ASSETS INCOME PORTFOLIO
AFTER WAIVERS AND TO AVERAGE TURNOVER
REIMBURSEMENTS NET ASSETS RATE(E)
----------------- -------------- --------
<S> <C> <C> <C>
THE HARTFORD DIVIDEND AND
GROWTH FUND
For the Six Months
Ended June 30, 1999
(unaudited)
Class A................ 1.36%(b) 0.47% 33.96%
Class B................ 2.06(b) 0.12 --
Class Y................ 0.90(b) 0.69 --
Class C................ 2.08(b) 0.12 --
For the Year Ended
December 31, 1998
Class A................ 1.38 1.08 46.43
Class B................ 2.10 0.39 --
Class Y................ 0.91 1.53 --
From inception August
1, 1998, through
December 31, 1998
Class C................ 2.10(b) 0.23(b) --
For the Year Ended
December 31, 1997
Class A................ 1.40 1.42 28.75
Class B................ 2.10 0.69 --
Class Y................ 0.95 1.83 --
From inception July 1,
1996 to December 31,
1996
Class A................ 1.40(b) 1.95(b) 29.80
Class B................ 2.10(b) 0.82(b) --
Class Y................ 0.95(b) 2.41(b) --
THE HARTFORD STOCK FUND
For the Six Months
Ended June 30, 1999
(unaudited)
Class A................ 1.39(b) (0.01) 22.36
Class B................ 2.09(b) (0.35) --
Class Y................ 0.90(b) 0.22 --
Class C................ 2.11(b) (0.34) --
For the Year Ended
December 31, 1998
Class A................ 1.44 (0.07) 37.03
Class B................ 2.15 (0.77) --
Class Y................ 0.96 0.36 --
From inception August
1, 1998, through
December 31, 1998
Class C................ 2.15(b) (0.76)(b) --
For the Year Ended
December 31, 1997
Class A................ 1.45 0.06 42.83
Class B................ 2.15 (0.66) --
Class Y................ 1.00 0.53 --
From inception July 1,
1996 to December 31,
1996
Class A................ 1.45(b) 0.71(b) 11.87
Class B................ 2.15(b) (0.12)(b) --
Class Y................ 1.00(b) 1.37(b) --
THE HARTFORD CAPITAL
APPRECIATION FUND
For the Six Months
Ended June 30, 1999
(unaudited)
Class A................ 1.38(b) (0.23) 123.20
Class B................ 2.08(b) (0.58) --
Class Y................ 0.91(b) (0.01) --
Class C................ 2.10(b) (0.59) --
For the Year Ended
December 31, 1998
Class A................ 1.44 (0.70) 123.42
Class B................ 2.15 (1.39) --
Class Y................ 0.96 (0.27) --
From inception August
1, 1998, through
December 31, 1998
Class C................ 2.15(b) (1.34)(b) --
For the Year Ended
December 31, 1997
Class A................ 1.45 (0.80) 119.62
Class B................ 2.15 (1.46) --
Class Y................ 1.00 (0.35) --
From inception July 1,
1996 to December 31,
1996
Class A................ 1.45(b) (0.70)(b) 149.99
Class B................ 2.15(b) (1.53)(b) --
Class Y................ 1.00(b) 0.04(b) --
</TABLE>
(a) Information presented relates to a capital share outstanding throughout the
indicated period.
(b) Annualized.
(c) Does not include sales charges.
(d) Not annualized.
(e) Portfolio turnover rate is calculated on the basis of the Fund as a whole
without distinguishing between the classes of shares issued.
(f) Per share amounts for the period of August 1, 1998 through December 31,
1998 have been restated to reflect a reverse stock split for Class C
effective February 11, 1998. The following reverse split percentages were
used: Dividend and Growth Fund 62.727844%, Stock Fund 53.974026% and
Capital Appreciation Fund 50.849102%.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THIS FINANCIAL STATEMENT.
71
<PAGE>
THE HARTFORD MUTUAL FUNDS, INC.
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS -- (CONTINUED)
<TABLE>
<CAPTION>
-- SELECTED PER-SHARE DATA(A)(F) --
------------------------------------------------------------------------------------------------------
NET REALIZED
AND
NET ASSET UNREALIZED DIVIDENDS
VALUE AT NET GAIN TOTAL FROM FROM NET DISTRIBUTIONS DISTRIBUTIONS
BEGINNING INVESTMENT (LOSS) ON INVESTMENT INVESTMENT FROM REALIZED FROM
OF PERIOD INCOME INVESTMENTS OPERATIONS INCOME CAPITAL GAINS CAPITAL
---------- ----------- ------------- ----------- ----------- -------------- --------------
<S> <C> <C> <C> <C> <C> <C> <C>
THE HARTFORD SMALL
COMPANY FUND
For the Six Months
Ended June 30, 1999
(unaudited)
Class A............... $13.31 $(0.06) $ 2.91 $ 2.85 $-- $-- $--
Class B............... 13.09 (0.09) 2.83 2.75 -- -- --
Class Y............... 13.47 (0.04) 2.97 2.92 -- -- --
Class C............... 13.09 (0.07) 2.82 2.75 -- -- --
For the Year Ended
December 31, 1998
Class A............... 12.16 (0.06) 1.33 1.27 -- (0.12) --
Class B............... 12.04 (0.12) 1.29 1.17 -- (0.12) --
Class Y............... 12.24 (0.03) 1.38 1.35 -- (0.12) --
From inception August
1, 1998, through
December 31, 1998
Class C............... 12.49 (0.02) 0.62 0.60 -- -- --
For the Year Ended
December 31, 1997
Class A............... 10.68 (0.02) 2.05 2.03 -- (0.55) --
Class B............... 10.65 (0.03) 1.97 1.94 -- (0.55) --
Class Y............... 10.71 (0.01) 2.09 2.08 -- (0.55) --
From inception July 1,
1996 to December 31,
1996
Class A............... 10.00 (0.02) 1.42 1.40 -- (0.72) --
Class B............... 10.00 (0.02) 1.39 1.37 -- (0.72) --
Class Y............... 10.00 -- 1.43 1.43 -- (0.72) --
THE HARTFORD
INTERNATIONAL
OPPORTUNITIES FUND
For the Six Months
Ended June 30, 1999
(unaudited)
Class A............... 11.89 0.06 1.16 1.22 (0.02) -- --
Class B............... 11.73 0.02 1.13 1.15 -- -- --
Class Y............... 11.97 0.08 1.17 1.25 (0.02) -- --
Class C............... 11.74 0.06 1.09 1.15 (0.02) -- --
For the Year Ended
December 31, 1998
Class A............... 10.58 0.07 1.26 1.33 (0.02) -- --
Class B............... 10.49 0.01 1.23 1.24 -- -- --
Class Y............... 10.62 0.12 1.27 1.39 (0.04) -- --
From inception August
1, 1998, through
December 31, 1998
Class C............... 12.26 (0.02) (0.48) (0.50) (0.03) -- --
For the Year Ended
December 31, 1997
Class A............... 10.72 0.09 (0.01) 0.08 (0.05) (0.17) --
Class B............... 10.69 0.07 (0.06) 0.01 (0.04) (0.17) --
Class Y............... 10.73 0.15 (0.02) 0.13 (0.07) (0.17) --
From inception July 1,
1996 to December 31,
1996
Class A............... 10.00 0.02 0.79 0.81 (0.06) (0.03) --
Class B............... 10.00 (0.01) 0.80 0.79 (0.07) (0.03) --
Class Y............... 10.00 -- 0.84 0.84 (0.08) (0.03) --
THE HARTFORD MIDCAP FUND
For the Six Months
Ended June 30, 1999
(unaudited)
Class A............... 12.30 (0.03) 2.93 2.90 -- (0.01) --
Class B............... 12.22 (0.04) 2.86 2.82 -- (0.01) --
Class Y............... 12.35 (0.02) 2.97 2.94 -- (0.01) --
Class C............... 12.21 (0.02) 2.84 2.82 -- (0.01) --
For the Year Ended
December 31, 1998
Class A............... 10.00 (0.05) 2.35 2.30 -- -- --
Class B............... 10.00 (0.10) 2.32 2.22 -- -- --
Class Y............... 10.00 (0.02) 2.37 2.35 -- -- --
From inception August
1, 1998, through
December 31, 1998
Class C............... 11.23 (0.03) 1.01 0.98 -- -- --
</TABLE>
(a) Information presented relates to a capital share outstanding throughout the
indicated period.
(b) Annualized.
(c) Does not include sales charges.
(d) Not annualized.
(e) Portfolio turnover rate is calculated on the basis of the Fund as a whole
without distinguishing between the classes of shares issued.
(f) Per share amounts for the period of August 1, 1998 through December 31,
1998 have been restated to reflect a reverse stock split for Class C
effective February 11, 1998. The following reverse split percentages were
used: Small Company Fund 80.078431%, International Opportunities Fund
81.545064% and MidCap Fund 89.020270%.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THIS FINANCIAL STATEMENT.
72
<PAGE>
<TABLE>
<CAPTION>
-- RATIOS AND SUPPLEMENTAL DATA --
--------------------------------------------------
-- SELECTED PER-SHARE DATA(A) -- RATIO OF
-------------------------------------------- EXPENSES TO
NET ASSET NET ASSETS AVERAGE
NET INCREASE VALUE AT AT END OF NET ASSETS
TOTAL (DECREASE) IN END OF TOTAL PERIOD BEFORE WAIVERS AND
DISTRIBUTIONS NET ASSETS PERIOD RETURN(C) (IN THOUSANDS) REIMBURSEMENTS
-------------- -------------- ---------- ----------- --------------- ------------------
<S> <C> <C> <C> <C> <C> <C>
THE HARTFORD SMALL
COMPANY FUND
For the Six Months
Ended June 30, 1999
(unaudited)
Class A................ $-- $ 2.85 $16.16 21.41% $ 52,935 1.49%(b)
Class B................ -- 2.75 15.84 21.01 26,604 2.19(b)
Class Y................ -- 2.92 16.39 21.68 18,246 1.01(b)
Class C................ -- 2.75 15.84 21.04 10,215 2.20(b)
For the Year Ended
December 31, 1998
Class A................ (0.12) 1.15 13.31 10.46 37,623 1.52
Class B................ (0.12) 1.05 13.09 9.73 18,345 2.22
Class Y................ (0.12) 1.23 13.47 11.05 13,004 1.02
From inception August
1, 1998, through
December 31, 1998
Class C................ -- 0.60 13.09 4.80(d) 2,765 2.46(b)
For the Year Ended
December 31, 1997
Class A................ (0.55) 1.48 12.16 19.28 19,391 1.77
Class B................ (0.55) 1.39 12.04 18.49 9,694 2.53
Class Y................ (0.55) 1.53 12.24 19.69 9,062 1.30
From inception July 1,
1996 to December 31,
1996
Class A................ (0.72) 0.68 10.68 14.11(d) 4,673 4.24(b)
Class B................ (0.72) 0.65 10.65 13.81(d) 241 20.03(b)
Class Y................ (0.72) 0.71 10.71 14.41(d) 72 115.33(b)
THE HARTFORD
INTERNATIONAL
OPPORTUNITIES FUND
For the Six Months
Ended June 30, 1999
(unaudited)
Class A................ (0.02) 1.20 13.09 10.24 39,587 1.69(b)
Class B................ -- 1.15 12.88 9.80 19,970 2.39(b)
Class Y................ (0.02) 1.23 13.20 10.43 15,824 1.22(b)
Class C................ (0.02) 1.13 12.87 9.81 3,861 2.40(b)
For the Year Ended
December 31, 1998
Class A................ (0.02) 1.31 11.89 12.53 32,014 1.84
Class B................ -- 1.24 11.73 11.82 11,767 2.56
Class Y................ (0.04) 1.35 11.97 13.11 10,860 1.36
From inception August
1, 1998, through
December 31, 1998
Class C................ (0.03) (0.53) 11.74 (4.05)(d) 1,379 2.83(b)
For the Year Ended
December 31, 1997
Class A................ (0.22) (0.14) 10.58 0.84 15,701 2.25
Class B................ (0.21) (0.20) 10.49 0.12 7,188 3.03
Class Y................ (0.24) (0.11) 10.62 1.31 6,422 1.76
From inception July 1,
1996 to December 31,
1996
Class A................ (0.09) 0.72 10.72 8.14(d) 4,294 5.35(b)
Class B................ (0.10) 0.69 10.69 7.86(d) 163 32.61(b)
Class Y................ (0.11) 0.73 10.73 8.36(d) 64 126.52(b)
THE HARTFORD MIDCAP FUND
For the Six Months
Ended June 30, 1999
(unaudited)
Class A................ (0.01) 2.88 15.18 23.53 49,834 1.49(b)
Class B................ (0.01) 2.81 15.03 23.11 18,086 2.19(b)
Class Y................ (0.01) 2.93 15.28 23.84 9,343 1.02(b)
Class C................ (0.01) 2.81 15.02 23.12 10,299 2.23(b)
For the Year Ended
December 31, 1998
Class A................ -- 2.30 12.30 23.12 24,294 1.57
Class B................ -- 2.22 12.22 22.32 8,403 2.31
Class Y................ -- 2.35 12.35 23.62 3,750 1.12
From inception August
1, 1998, through
December 31, 1998
Class C................ -- 0.98 12.21 8.70(d) 1,077 2.57(b)
<CAPTION>
RATIO OF RATIO OF
EXPENSES TO NET
AVERAGE INVESTMENT
NET ASSETS INCOME PORTFOLIO
AFTER WAIVERS AND TO AVERAGE TURNOVER
REIMBURSEMENTS NET ASSETS RATE(E)
----------------- -------------- --------
<S> <C> <C> <C>
THE HARTFORD SMALL
COMPANY FUND
For the Six Months
Ended June 30, 1999
(unaudited)
Class A................ 1.45%(b) (0.47)% 120.71%
Class B................ 2.15(b) (0.81) --
Class Y................ 1.00(b) (0.24) --
Class C................ 2.15(b) (0.80) --
For the Year Ended
December 31, 1998
Class A................ 1.45 (0.79) 266.82
Class B................ 2.15 (1.49) --
Class Y................ 1.00 (0.33) --
From inception August
1, 1998, through
December 31, 1998
Class C................ 2.15(b) (1.49)(b) --
For the Year Ended
December 31, 1997
Class A................ 1.45 (0.61) 255.37
Class B................ 2.15 (1.30) --
Class Y................ 1.00 (0.14) --
From inception July 1,
1996 to December 31,
1996
Class A................ 1.45(b) (0.60)(b) 69.92
Class B................ 2.15(b) (1.30)(b) --
Class Y................ 1.00(b) 0.03(b) --
THE HARTFORD
INTERNATIONAL
OPPORTUNITIES FUND
For the Six Months
Ended June 30, 1999
(unaudited)
Class A................ 1.65(b) 0.58 79.98
Class B................ 2.35(b) 0.23
Class Y................ 1.20(b) 0.86 --
Class C................ 2.35(b) 0.47 --
For the Year Ended
December 31, 1998
Class A................ 1.65 0.69 148.58
Class B................ 2.35 0.01 --
Class Y................ 1.20 1.17 --
From inception August
1, 1998, through
December 31, 1998
Class C................ 2.35(b) (0.71)(b) --
For the Year Ended
December 31, 1997
Class A................ 1.65 0.88 59.16
Class B................ 2.35 (0.05) --
Class Y................ 1.20 1.33 --
From inception July 1,
1996 to December 31,
1996
Class A................ 1.65(b) 0.51(b) 21.51
Class B................ 2.35(b) (0.86)(b) --
Class Y................ 1.20(b) 0.57(b) --
THE HARTFORD MIDCAP FUND
For the Six Months
Ended June 30, 1999
(unaudited)
Class A................ 1.45(b) (0.41) 55.76
Class B................ 2.15(b) (0.76) --
Class Y................ 1.00(b) (0.18) --
Class C................ 2.15(b) (0.71) --
For the Year Ended
December 31, 1998
Class A................ 1.45 (0.78) 139.02
Class B................ 2.15 (1.48) --
Class Y................ 1.00 (0.33) --
From inception August
1, 1998, through
December 31, 1998
Class C................ 2.15(b) (1.45)(b) --
</TABLE>
(a) Information presented relates to a capital share outstanding throughout the
indicated period.
(b) Annualized.
(c) Does not include sales charges.
(d) Not annualized.
(e) Portfolio turnover rate is calculated on the basis of the Fund as a whole
without distinguishing between the classes of shares issued.
(f) Per share amounts for the period of August 1, 1998 through December 31,
1998 have been restated to reflect a reverse stock split for Class C
effective February 11, 1998. The following reverse split percentages were
used: Small Company Fund 80.078431%, International Opportunities Fund
81.545064% and MidCap Fund 89.020270%.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THIS FINANCIAL STATEMENT.
73
<PAGE>
THE HARTFORD MUTUAL FUNDS, INC.
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS -- (CONTINUED)
<TABLE>
<CAPTION>
-- SELECTED PER-SHARE DATA(A)(F) --
------------------------------------------------------------------------------------------------------
NET REALIZED
AND
NET ASSET UNREALIZED DIVIDENDS
VALUE AT NET GAIN TOTAL FROM FROM NET DISTRIBUTIONS DISTRIBUTIONS
BEGINNING INVESTMENT (LOSS) ON INVESTMENT INVESTMENT FROM REALIZED FROM
OF PERIOD INCOME INVESTMENTS OPERATIONS INCOME CAPITAL GAINS CAPITAL
---------- ----------- ------------- ----------- ----------- -------------- --------------
<S> <C> <C> <C> <C> <C> <C> <C>
THE HARTFORD GROWTH AND
INCOME FUND
For the Six Months
Ended June 30, 1999
(unaudited)
Class A............... $11.45 $(0.00) $ 1.38 $ 1.37 $-- $-- $--
Class B............... 11.41 (0.02) 1.35 1.33 -- -- --
Class Y............... 11.48 0.03 1.38 1.41 -- -- --
Class C............... 11.41 (0.02) 1.35 1.33 -- -- --
From inception April
30, 1998, through
December 31, 1998
Class A............... 10.00 0.02 1.45 1.47 -- -- (0.02)
Class B............... 10.00 (0.01) 1.43 1.42 -- -- (0.01)
Class Y............... 10.00 0.05 1.46 1.51 -- -- (0.03)
From inception August
1, 1998, through
December 31, 1998
Class C............... 10.14 0.01 1.29 1.30 -- -- (0.03)
THE HARTFORD HIGH YIELD
FUND
For the Six Months
Ended June 30, 1999
(unaudited)
Class A............... 10.15 0.35 (0.10) 0.25 (0.36) -- --
Class B............... 10.14 0.33 (0.10) 0.22 (0.33) -- --
Class Y............... 10.16 0.37 (0.09) 0.27 (0.38) -- --
Class C............... 10.14 0.32 (0.10) 0.22 (0.33) -- --
From inception
September 30, 1998,
through December 31,
1998
Class A............... 10.00 0.19 0.13 0.32 (0.17) -- --
Class B............... 10.00 0.16 0.14 0.30 (0.16) -- --
Class Y............... 10.00 0.21 0.13 0.34 (0.18) -- --
Class C............... 10.00 0.16 0.14 0.30 (0.16) -- --
THE HARTFORD GLOBAL
LEADERS FUND
For the Six Months
Ended June 30, 1999
(unaudited)
Class A............... 12.67 0.05 1.55 1.60 -- (0.03) --
Class B............... 12.65 0.04 1.50 1.54 -- (0.03) --
Class Y............... 12.69 0.06 1.56 1.63 -- (0.03) --
Class C............... 12.65 0.04 1.50 1.55 -- (0.03) --
From inception
September 30, 1998,
through December 31,
1998
Class A............... 10.00 (0.01) 3.03 3.02 -- (0.35) --
Class B............... 10.00 (0.02) 3.02 3.00 -- (0.35) --
Class Y............... 10.00 0.01 3.03 3.04 -- (0.35) --
Class C............... 10.00 (0.02) 3.02 3.00 -- (0.35) --
</TABLE>
(a) Information presented relates to a capital share outstanding throughout the
indicated period.
(b) Annualized.
(c) Does not include sales charges.
(d) Not annualized.
(e) Portfolio turnover rate is calculated on the basis of the Fund as a whole
without distinguishing between the classes of shares issued.
(f) Per share amounts for the period of August 1, 1998 through December 31,
1998 have been restated to reflect a reverse stock split for Class C
effective February 11, 1998. The following reverse split percentage was
used: Growth and Income Fund 98.582817%.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THIS FINANCIAL STATEMENT.
74
<PAGE>
<TABLE>
<CAPTION>
-- RATIOS AND SUPPLEMENTAL DATA --
--------------------------------------------------
-- SELECTED PER-SHARE DATA(A) -- RATIO OF
-------------------------------------------- EXPENSES TO
NET ASSET NET ASSETS AVERAGE
NET INCREASE VALUE AT AT END OF NET ASSETS
TOTAL (DECREASE) IN END OF TOTAL PERIOD BEFORE WAIVERS AND
DISTRIBUTIONS NET ASSETS PERIOD RETURN(C) (IN THOUSANDS) REIMBURSEMENTS
-------------- -------------- ---------- ----------- --------------- ------------------
<S> <C> <C> <C> <C> <C> <C>
THE HARTFORD GROWTH AND
INCOME FUND
For the Six Months
Ended June 30, 1999
(unaudited)
Class A................ $-- $ 1.37 $12.82 11.96% $ 27,254 1.47%(b)
Class B................ -- 1.33 12.74 11.66 8,370 2.17(b)
Class Y................ -- 1.41 12.89 12.28 434 0.97(b)
Class C................ -- 1.33 12.74 11.64 10,513 2.18(b)
From inception April
30, 1998, through
December 31, 1998
Class A................ (0.02) 1.45 11.45 14.78(d) 11,120 1.58(b)
Class B................ (0.01) 1.41 11.41 14.21(d) 3,538 2.32(b)
Class Y................ (0.03) 1.48 11.48 15.18(d) 386 1.20(b)
From inception August
1, 1998, through
December 31, 1998
Class C................ (0.03) 1.27 11.41 12.80(d) 3,726 2.38(b)
THE HARTFORD HIGH YIELD
FUND
For the Six Months
Ended June 30, 1999
(unaudited)
Class A................ (0.36) (0.11) 10.04 2.48 14,696 1.40(b)
Class B................ (0.33) (0.10) 10.04 2.24 4,925 2.10(b)
Class Y................ (0.38) (0.10) 10.06 2.73 2,256 0.93(b)
Class C................ (0.33) (0.11) 10.03 2.15 6,373 2.11(b)
From inception
September 30, 1998,
through December 31,
1998
Class A................ (0.17) 0.15 10.15 3.33(d) 8,507 1.53(b)
Class B................ (0.16) 0.14 10.14 3.09(d) 2,322 2.31(b)
Class Y................ (0.18) 0.16 10.16 3.51(d) 1,034 1.17(b)
Class C................ (0.16) 0.14 10.14 3.08(d) 2,278 2.31(b)
THE HARTFORD GLOBAL
LEADERS FUND
For the Six Months
Ended June 30, 1999
(unaudited)
Class A................ (0.03) 1.57 14.24 12.64 21,871 1.78(b)
Class B................ (0.03) 1.51 14.16 12.18 5,761 2.49(b)
Class Y................ (0.03) 1.60 14.29 12.86 2,098 1.30(b)
Class C................ (0.03) 1.52 14.17 12.26 6,750 2.49(b)
From inception
September 30, 1998,
through December 31,
1998
Class A................ (0.35) 2.67 12.67 30.36(d) 3,771 2.66(b)
Class B................ (0.35) 2.65 12.65 30.16(d) 486 3.55(b)
Class Y................ (0.35) 2.69 12.69 30.57(d) 392 2.46(b)
Class C................ (0.35) 2.65 12.65 30.16(d) 517 3.57(b)
<CAPTION>
RATIO OF RATIO OF
EXPENSES TO NET
AVERAGE INVESTMENT
NET ASSETS INCOME PORTFOLIO
AFTER WAIVERS AND TO AVERAGE TURNOVER
REIMBURSEMENTS NET ASSETS RATE(E)
----------------- -------------- --------
<S> <C> <C> <C>
THE HARTFORD GROWTH AND
INCOME FUND
For the Six Months
Ended June 30, 1999
(unaudited)
Class A................ 1.45%(b) (0.01)% 24.76%
Class B................ 2.15(b) (0.35) --
Class Y................ 1.00(b) 0.23 --
Class C................ 2.15(b) (0.35) --
From inception April
30, 1998, through
December 31, 1998
Class A................ 1.45(b) 0.23(b) 35.10
Class B................ 2.15(b) (0.47)(b) --
Class Y................ 1.00(b) 0.76(b) --
From inception August
1, 1998, through
December 31, 1998
Class C................ 2.15(b) (0.53)(b) --
THE HARTFORD HIGH YIELD
FUND
For the Six Months
Ended June 30, 1999
(unaudited)
Class A................ 1.40(b) 3.68 27.34
Class B................ 2.10(b) 3.34 --
Class Y................ 0.93(b) 3.91 --
Class C................ 2.10(b) 3.35 --
From inception
September 30, 1998,
through December 31,
1998
Class A................ 1.40(b) 7.06(b) 10.85
Class B................ 2.10(b) 6.50(b) --
Class Y................ 0.95(b) 7.48(b) --
Class C................ 2.10(b) 6.49(b) --
THE HARTFORD GLOBAL
LEADERS FUND
For the Six Months
Ended June 30, 1999
(unaudited)
Class A................ 1.65(b) 0.31 120.63
Class B................ 2.35(b) 0.01 --
Class Y................ 1.20(b) 0.56 --
Class C................ 2.35(b) 0.02 --
From inception
September 30, 1998,
through December 31,
1998
Class A................ 1.65(b) (0.19)(b) 49.04
Class B................ 2.35(b) (0.92)(b) --
Class Y................ 1.20(b) 0.31(b) --
Class C................ 2.35(b) (0.90)(b) --
</TABLE>
(a) Information presented relates to a capital share outstanding throughout the
indicated period.
(b) Annualized.
(c) Does not include sales charges.
(d) Not annualized.
(e) Portfolio turnover rate is calculated on the basis of the Fund as a whole
without distinguishing between the classes of shares issued.
(f) Per share amounts for the period of August 1, 1998 through December 31,
1998 have been restated to reflect a reverse stock split for Class C
effective February 11, 1998. The following reverse split percentage was
used: Growth and Income Fund 98.582817%.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THIS FINANCIAL STATEMENT.
75
