N-CSR 1 b48293h1nvcsr.txt THE HARTFORD MUTUAL FUNDS, INC. UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM N-CSR CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES Investment Company Act file number: 811-07589 THE HARTFORD MUTUAL FUNDS, INC. (Exact name of registrant as specified in charter) P. O. Box 2999, Hartford, Connecticut 06104-2999 (Address of Principal Executive Offices) Kevin J. Carr, Esquire Investment Law Unit The Hartford Financial Services Group, Inc. 55 Farmington Avenue Hartford, Connecticut 06105 (Name and Address of Agent for Service) Registrant's telephone number, including area code: (860) 297-6443 Date of fiscal year end: October 31st Date of reporting period: November 1, 2002 - October 31, 2003 Form N-CSR is to be used by management investment companies to file reports with the Commission not later than 10 days after the transmission to stockholders of any report that is required to be transmitted to stockholders under Rule 30e-1 under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may use the information provided on Form N-CSR in its regulatory, disclosure review, inspection, and policymaking roles. A registrant is required to disclose the information specified by Form N-CSR, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-CSR unless the Form displays a currently valid Office of Management and Budget ("OMB") control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW, Washington, DC 20549-0609. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. Section 3507. ITEM 1. REPORTS TO STOCKHOLDERS. A message from the Chairman Dear Fellow Shareholders, At last it appears we are seeing signs of economic recovery in the U.S. and abroad. In fact, the nation's gross domestic product grew at an 8.2% annual growth rate in the third quarter. This more than doubled the second quarter of and 2003 and represents the fastest growth rate in nearly 20 years. An improving economy along with better than expected corporate profits have seemingly had a positive impact on the stock market. Although there continues to be significant volatility, the market as measured by the S&P 500 Index (1) posted a 20.8% one-year return as of October 31, 2003. During this same period, The Hartford Mutual Funds also experienced favorable performance results. As of October 31, 2003, all thirty-three Funds within The Hartford Mutual Funds Family with at least one year of performance history have reported a positive one-year average annual return. This is good news after three years of negative market performance. However, it's important that we keep such short-term performance in perspective. Historically, investors who have focused on the long-term have been rewarded over time. Even with economic and market resurgence, the past few months have been difficult for the mutual fund industry. Allegations of wrongdoing have been made against several large fund companies. We have been following the news of regulatory activity concerning the mutual fund industry very closely. The Hartford Mutual Funds, like many other companies, will continue to support the ongoing investigations of the Securities and Exchange Commission and the New York attorney general's office. We will continue to monitor news and events as they unfold. We take great care and pride in the fact that you have entrusted us with your money. Integrity is a guiding principle of our company and it's a virtue that our parent, The Hartford Financial Services Group, Inc., has built a reputation on for over 190 years. You can be assured it is a tradition that will remain steadfast within our company. Thank you for investing in The Hartford Mutual Funds. Tom Marra PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS. (1) The S&P 500 Index is an unmanaged list of 500 widely held U.S. common stocks frequently used as a measure of U.S. stock market performance. It does not represent the performance of a specific fund, and is not available for direct investment. Annual Report October 31, 2003 (ELK PHOTO)
- Manager Discussions - Financials Please note that the responses to the questions: How did the Fund perform?, Why did the Fund perform this way? and What is your outlook? represent the views of the portfolio manager(s) of the applicable fund. (THE HARTFORD LOGO) THE HARTFORD MUTUAL FUNDS, INC. THE HARTFORD MUTUAL FUNDS II, INC. TABLE OF CONTENTS Manager Discussions (Unaudited) 1 The Hartford Mutual Funds, Inc. and The Hartford Mutual Funds II, Inc. Financial Statements Schedule of Investments and Statements of Assets and Liabilities as of October 31, 2003: The Hartford Advisers Fund 36 The Hartford Capital Appreciation Fund 42 The Hartford Disciplined Equity Fund (formerly the Hartford Growth and Income Fund) 45 The Hartford Dividend and Growth Fund 47 The Hartford Equity Income Fund 49 The Hartford Focus Fund 51 The Hartford Global Communications Fund 52 The Hartford Global Financial Services Fund 54 The Hartford Global Health Fund 56 The Hartford Global Leaders Fund 58 The Hartford Global Technology Fund 61 The Hartford Growth Fund 63 The Hartford Growth Opportunities Fund 65 The Hartford High Yield Fund 67 The Hartford Income Fund 77 The Hartford Inflation Plus Fund 83 The Hartford International Capital Appreciation Fund 85 The Hartford International Opportunities Fund 88 The Hartford International Small Company Fund 92 The Hartford MidCap Fund 96 The Hartford MidCap Value Fund 99 The Hartford Money Market Fund 102 The Hartford Short Duration Fund 105 The Hartford Small Company Fund 111 The Hartford SmallCap Growth Fund 113 The Hartford Stock Fund 116 The Hartford Tax-Free California Fund 118 The Hartford Tax-Free Minnesota Fund 121 The Hartford Tax-Free National Fund 124 The Hartford Tax-Free New York Fund 131 The Hartford Total Return Bond Fund 133 The Hartford U.S. Government Securities Fund 140 The Hartford Value Fund 142 The Hartford Value Opportunities Fund 144 Statements of Operations for the Period Ended October 31, 2003 146 Statements of Changes in Net Assets for the Periods Ended October 31, 2003 and 2002 156 Notes to Financial Statements 170 Financial Highlights 188 Report of Independent Auditors 210 Directors and Officers (Unaudited) 211 Federal Tax Information Notice (Unaudited) 218 Privacy Policy 223 IMPORTANT FUND INFORMATION The following disclosure applies to all of The Hartford Mutual Funds: The graphs on the following pages represent hypothetical investments in The Hartford Mutual Funds. 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. The chart and table do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. Performance information may reflect historical or current expense waivers/reimbursements from an affiliate of the investment adviser, without which performance would have been lower. For information on current expense waivers/reimbursements, please see the prospectus. The Hartford Advisers Fund (1,2,3) The Hartford International Opportunities Fund The Hartford Capital Appreciation Fund (1,2,3) (1,2,3) The Hartford Disciplined Equity Fund (1,2,3) The Hartford International Small Company Fund The Hartford Dividend and Growth Fund (1,2,3) (2,3) The Hartford Equity Income Fund (2,3) The Hartford MidCap Fund (1,2,3) The Hartford Focus Fund (2,3) The Hartford MidCap Value Fund (2,3) The Hartford Global Communications Fund (2,3) The Hartford Short Duration Fund (2,3) The Hartford Global Financial Services Fund The Hartford Small Company Fund (1,2,3) (2,3) The Hartford SmallCap Growth Fund (4,5,6) The Hartford Global Health Fund (2,3) The Hartford Stock Fund (1,2,3) The Hartford Global Leaders Fund (2,3) The Hartford Tax-Free California Fund (2,3) The Hartford Global Technology Fund (2,3) The Hartford Tax-Free Minnesota Fund (7,8,9) The Hartford Growth Fund (4,5,6) The Hartford Tax-Free National Fund (7,8,9) The Hartford Growth Opportunities (4,5,6) The Hartford Tax-Free New York Fund (2,3) The Hartford High Yield Fund (2,3) The Hartford Total Return Bond Fund (1,2,3) The Hartford Income Fund (2,3) The Hartford U.S. Government Securities Fund The Hartford Inflation Plus Fund (2,3) (7,8,9) The Hartford International Capital Appreciation The Hartford Value Fund (2,3) Fund (2,3) The Hartford Value Opportunities Fund (4,5,6)
( 1) Class C shares commenced operations on 7/31/98. Performance prior to 7/31/98 reflects Class B performance less Class C sales charges where applicable. ( 2) The initial investment in Class A and C shares reflects the maximum sales charge and Class B shares reflect a CDSC. ( 3) Growth of a $10,000 Investment in Class B, C and Y shares will vary from the results seen on the following pages due to differences in the expenses charged to these share classes. ( 4) New Class A, B and C shares were offered beginning on February 19, 2002. Performance prior to that date is that of the fund's Class L, M and N shares, respectively, which have lower operating expenses. Performance prior to February 19, 2002 would have been lower if Class A, B and C share expenses were applied during that period. ( 5) The initial investment in Class A, C and L shares reflects the maximum sales charges and B, H, M and N shares reflect a CDSC. ( 6) Growth of a $10,000 Investment in Class B, C, H, L, M, N, Y and Z shares will vary from the results seen on the following pages due to differences in expenses charged to these share classes. ( 7) New Class A, B and C shares were offered beginning on February 19, 2002. Performance prior to that date is of the fund's Class E, M and N shares, respectively, which have lower operating expenses. Performance prior to February 19, 2002 would have been lower if Class A, B and C share expenses were applied during that period. ( 8) The initial investment in Class A, C, E and L shares reflects the maximum sales charge and B, H, M and N shares reflect a CDSC. ( 9) Growth of a $10,000 Investment in Class B, C, E, H, L, M, N and Y shares will vary from the results seen on the following pages due to differences in expenses charged to these share classes. (10) New Class Y shares were offered beginning on February 19, 2002. Performance prior to that date is that of the fund's Class L shares. Performance prior to February 19, 2002 would have been lower if Class Y share expenses were applied during that period. (11) New Class Y shares were offered beginning on February 19, 2002. Performance prior to that date is that of the fund's Class E shares. Performance prior to February 19, 2002 would have been lower if Class Y share expenses were applied during that period. 1 COMPARATIVE BENCHMARKS appear throughout the fund commentary as a measure of fund performance. S & P 500 INDEX is a market capitalization weighted price index composed of 500 widely held common stocks. S & P MIDCAP 400 INDEX is an unmanaged index measuring the performance of the mid-size company segment of the U.S. market. MSCI AC (ALL COUNTRY) WORLD FREE TELECOMMUNICATIONS SERVICES INDEX is a free float-adjusted market capitalization index of developed and emerging market countries that is designed to measure international equity market performance. MSCI AC WORLD FREE EX U.S. INDEX is a broad based, unmanaged, market capitalization weighted, total return index that measures the performance of both developed and emerging stock markets, excluding the U.S. MSCI WORLD INDEX is a broad based, unmanaged, market capitalization weighted, total return index that measures the performance of 23 developed country global stock markets, including the United States, Canada, Europe, Australia, New Zealand and the Far East. MSCI FINANCE EX-REAL ESTATE INDEX is a cap-weighted index that measures the performance of financial stocks from around the world. This index excludes real estate. MSCI EAFE - the Morgan Stanley Capital International Europe, Australia and Far East Index is a free float-adjusted capitalization index that is designed to measure developed market equity performance, excluding the U.S. and Canada. GOLDMAN SACHS HEALTH CARE INDEX is an unmanaged index designed to measure the performance of companies in the health care sector. Issues in the index include providers of health care related services including long-term care and hospitalization facilities, health care management organizations and continuing care services. GOLDMAN SACHS TECHNOLOGY COMPOSITE INDEX is an unmanaged index designed to measure performance of companies in the technology sector. Issues in the index include producers of sophisticated devices, services and software related to the fields of computers, electronics, networking and Internet services. CITIGROUP BROAD MARKET EURO-PACIFIC <$2B INDEX takes the entire international universe of all stocks, and divides it evenly each year to include only those companies with a market cap between $100m and $2b regardless of country or industry. This represents roughly the bottom 20% of the international equity market. RUSSELL 1000 GROWTH INDEX is an unmanaged index that measures the performance of those Russell 1000 Index companies with higher price-to-book ratios and higher forecasted growth values. RUSSELL 2000 GROWTH INDEX is an unmanaged index of those Russell 2000 Index growth companies with higher price-to-book ratios and higher forecasted growth values. RUSSELL 3000 GROWTH INDEX is an unmanaged index that measures the performance of those Russell 3000 Index companies with higher price-to-book ratios and higher forecasted growth values. RUSSELL 1000 VALUE INDEX measures the performance of those Russell 1000 Index companies with lower price-to-book ratios and lower forecasted growth values. RUSSELL 2500 VALUE INDEX measures the performance of those Russell 2500 Index companies with lower price-to-book ratios and lower forecasted growth values. RUSSELL 3000 VALUE INDEX is an unmanaged index measuring the performance of those Russell 3000 Index companies with lower price-to-book ratios and lower forecasted growth values. LEHMAN BROTHERS GOVERNMENT / CREDIT BOND INDEX is a broad based unmanaged, market value-weighted index of all debt obligations of the U.S. Treasury and U.S. Government agencies (excluding mortgage-backed securities) and of all publicly issued fixed-rate, nonconvertible, investment grade domestic corporate debt. LEHMAN BROTHERS CORPORATE HIGH YIELD INDEX is an unmanaged broad-based market value-weighted index that tracks the total return performance of non-investment grade, fixed-rate, publicly placed, dollar denominated and nonconvertible debt registered with the SEC. LEHMAN BROTHERS INTERMEDIATE GOVERNMENT INDEX is an unmanaged index of government bonds with maturities of between one and ten years. LEHMAN BROTHERS MUNICIPAL BOND INDEX is an unmanaged index of municipal bonds with maturities greater than two years. LEHMAN BROTHERS U.S. AGGREGATE BOND INDEX is an unmanaged index and is composed of securities from the Lehman Brothers Government / Credit Bond Index, Mortgage-Backed Securities Index, Asset-Backed Securities Index and Commercial Mortgage-Backed Securities Index. LEHMAN BROTHERS CALIFORNIA EXEMPT INDEX is an unmanaged index of municipal bonds issued by the State of California with maturities greater than two years. LEHMAN BROTHERS NEW YORK EXEMPT INDEX is an unmanaged index of municipal bonds issued by the State of New York with maturities greater than two years. LEHMAN BROTHERS U.S. GOVERNMENT INDEX is an unmanaged index of government bonds with maturities of one year or more. LEHMAN BROTHERS U.S. TIPS INDEX represents securities that protect against adverse inflation and provide a minimum level of real return. To be included in this index, bonds must have cash flows linked to an inflation index, be sovereign issues denominated in U.S. currency, and have more than one year to maturity. LEHMAN BROTHERS U.S. GOVERNMENT/CREDIT 1-5 YEAR INDEX is an unmanaged index comprised of the U.S. Government/Credit component of the U.S. Aggregate Index. The Government/Credit Index includes securities in the 1-5 year maturity range in the Government and Credit Indices. 2 The Hartford Advisers Fund (subadvised by Wellington Management Company, LLP) PERFORMANCE OVERVIEW(3) 7/22/96 - 10/31/03 Growth of a $10,000 investment in Class A which includes Sales Charge (LINE GRAPH)
LEHMAN BROTHERS GOVERNMENT/CREDIT BOND ADVISERS FUND S&P 500 INDEX INDEX ------------- ------------- ---------------------- 7/22/96 9450 10000 10000 9516 10102 10020 9583 10317 10014 9952 10897 10192 10/96 10188 11198 10430 10773 12043 10622 10543 11805 10504 10923 12542 10517 10971 12641 10539 10705 12122 10413 11123 12845 10565 11589 13630 10664 12031 14236 10792 12750 15368 11122 12156 14507 10997 12667 15301 11170 10/97 12484 14790 11349 12889 15475 11409 13001 15741 11529 13127 15914 11691 13700 17061 11668 14179 17935 11704 14383 18118 11762 14247 17806 11888 14809 18529 12009 14907 18333 12019 13667 15684 12253 14226 16689 12604 10/98 14766 18044 12514 15258 19138 12590 15742 20240 12621 16063 21086 12711 15713 20430 12408 16195 21248 12470 16678 22070 12501 16296 21549 12373 16936 22745 12334 16633 22035 12300 16462 21925 12290 16243 21324 12400 10/99 16771 22674 12432 16953 23134 12425 17643 24495 12349 17074 23265 12346 17157 22825 12500 18317 25058 12681 17964 24304 12619 17692 23805 12608 17998 24391 12865 17840 24010 13001 18525 25501 13185 18034 24155 13235 10/00 18086 24054 13318 17538 22158 13546 17801 22267 13813 18111 23057 14045 17403 20957 14189 16719 19630 14255 17388 21153 14147 17510 21295 14229 17067 20777 14297 17079 20574 14653 16464 19288 14841 15820 17731 14977 10/01 16157 18070 15358 16808 19456 15106 16874 19627 14987 16648 19341 15096 16546 18967 15224 16822 19680 14915 15951 18488 15205 15860 18352 15345 15199 17045 15475 14721 15717 15661 14744 15820 16012 13812 14102 16356 10/02 14475 15342 16199 15126 16244 16208 14645 15290 16638 14381 14891 16638 14289 14668 16934 14314 14810 16912 15028 16029 17093 15638 16872 17621 15760 17088 17551 15818 17389 16815 15980 17728 16926 15925 17540 17419 10/03 16448 18531 17198
--- ADVISERS FUND -- LEHMAN BROTHERS GOVERNMENT/ --- S&P 500 INDEX $9,450 starting value CREDIT BOND INDEX $10,000 starting value $16,448 ending value $10,000 starting value $18,531 ending value $17,198 ending value
AVERAGE ANNUAL TOTAL RETURNS(1,2) (as of 10/31/03)
INCEPTION SINCE DATE 1 YEAR 5 YEAR INCEPTION ---------------------------------------------------------- Advisers A# 7/22/1996 13.62% 2.18% 7.91% ---------------------------------------------------------- Advisers A## 7/22/1996 7.34% 1.03% 7.07% ---------------------------------------------------------- Advisers B# 7/22/1996 12.86% 1.46% 7.16% ---------------------------------------------------------- Advisers B## 7/22/1996 7.86% 1.10% 7.16% ---------------------------------------------------------- Advisers C# 7/22/1996 12.92% 1.50% 7.17% ---------------------------------------------------------- Advisers C## 7/22/1996 10.79% 1.30% 7.02% ---------------------------------------------------------- Advisers Y# 7/22/1996 14.28% 2.72% 8.45% ----------------------------------------------------------
# Without sales charge ## With sales charge PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS. Please see page 1 for important additional information including inception dates and expenses. PORTFOLIO MANAGERS RAND L. ALEXANDER, CFA Senior Vice President, Partner PAUL D. KAPLAN Senior Vice President, Partner, Director of Fixed Income -------------------------------------------------------------------------------- HOW DID THE FUND PERFORM? The Hartford Advisers Fund Class A, before sales charge, returned 13.62% for the twelve-month period ended October 31, 2003. The Fund underperformed both the Lipper Flexible Average return of 16.6% and the Fund's Composite Index (S&P 500 55%: Lehman Brothers Government/ Credit 35%: T-Bill 10%) return of 13.8%. WHY DID THE FUND PERFORM THIS WAY? After a three-year decline, the US equity markets rallied during the period, with the S&P 500 rising 20.79%. This surge in the broad market began with the ending of the conflict in Iraq and has been fueled by increasing optimism that the economy is in the early stages of rebounding as signaled by increases in consumer confidence and manufacturing output, resilience in consumer spending and productivity gains, and support from low interest rates and reduced tax rates. A significant shift took place during the third quarter of 2003 as fixed income investors experienced their first negative quarterly return, albeit a modest one, since the fourth quarter of 1999. Long interest rates rose significantly in July as signs of a second-half recovery continued to appear. From a total-return perspective, fixed income investors were dealt one of the harshest blows in recent memory in July, as the Lehman Aggregate Index fell 3.36% during the month in a broad-based bond market rout. However, Treasury bond prices recovered these losses as the market began to question the view that the economic recovery had fully taken hold. When the dust had settled, for the twelve-month period ended October 31, 2003, the Lehman Aggregate Index posted a return of 4.91%. During the period, our stock/bond/cash allocation mix was a positive contributor to performance. Starting last year, we have been gradually increasing our stock exposure as we began to see positive signs of a recovery. After being risk adverse in 2002, investors moved into the riskiest areas of the market, bidding up smaller and mid-size companies, particularly in Technology and ignoring large-cap, high-quality companies with established track records. The Fund's large-cap, high-quality discipline has not been helped by this development. Strong stock selection in several sectors, most notably Health Care, Financials and Energy, boosted our performance. Conversely, overall stock selection within Technology, Consumer Discretionary, Consumer Staples and Industrials detracted from performance. At the margin, the Fund's underweight position in Telecommunications and overweight position in Materials helped performance. Two of the strongest contributors to performance were Cisco (Technology) and Citigroup (Financials). Cisco benefited from a rebound in technology spending over the last year as well as new product introductions. Citigroup has executed well, controlled costs and is leveraged to improving global capital markets. During the period we added to Citigroup and held onto our position in Cisco. The top three detractors from performance were SBC Communications (Telecommunications), Schering-Plough (Pharmaceuticals) and Safeway (Consumer Staples). Along with others in the telecom industry, SBC has struggled as a result of overcapacity, competition, and new technologies. Schering-Plough has suffered from competitive pressures across its key drug franchises as well as from the switch of Claritin, their leading product, to the OTC market. Safeway lowered its earnings guidance resulting from increasing operating costs. Within the fixed-income portion of the Fund, our focus on high quality instruments has been slightly detrimental as investors continue to focus on lower quality fixed income securities. Nonetheless, we feel confident that our style and approach are well devised and positioned to perform well in the future as investors look for companies with proven performance and well-established positioning in the marketplace. WHAT IS YOUR OUTLOOK? As we enter the final quarter of 2003, investor optimism surrounding the economy and the equity markets has started to consolidate. Tax cuts, a weaker dollar, sustained productivity, and healthier balance sheets all bode well for corporate profits. As the economy continues to stabilize, we will look for improved corporate spending and employment trends as key gauges to determine the sustainability of the domestic recovery. At this juncture, we believe a sustainable uptrend will in fact unfold and support growth in 2004. As a result of these positive trends, we continue to see improvement in the business sector and the Fund's strategic bias is positioned to take advantage of these positive trends. On the fixed-income side, the economy continues to show signs of a sustained recovery and the bond market struggles with stronger economic indicators and a central bank which has promised to remain accommodative for some extended period of time. While we have outlined an environment that should be supportive of the business sector and corporate balance sheets in particular, we have begun to shift investments away from corporate bonds and back toward government securities as the corporate sector has returned to fair value. An improving economic environment is also supportive of our slightly shorter duration posture, as interest rates should see sustained upward pressure over the next twelve months. 3 The Hartford Capital Appreciation Fund (subadvised by Wellington Management Company, LLP) PERFORMANCE OVERVIEW(3) 7/22/96 - 10/31/03 Growth of a $10,000 investment in Class A which includes Sales Charge (LINE GRAPH)
CAPITAL APPRECIATION FUND S&P 500 INDEX ------------------------- ------------- 7/22/96 9450 10000 9667 10102 10593 10317 11302 10897 10/96 11671 11198 12531 12043 13017 11805 14118 12542 14031 12641 13368 12122 13485 12845 16252 13630 17633 14236 19319 15368 19701 14507 21534 15301 10/97 20367 14790 20395 15475 20189 15741 19713 15914 21570 17061 22309 17935 22432 18118 20940 17806 21265 18529 20376 18333 15926 15684 16600 16689 10/98 18243 18044 19489 19138 20847 20240 22388 21086 21072 20430 22858 21248 24154 22070 25125 21549 26492 22745 26808 22035 25869 21925 25409 21324 10/99 27022 22674 29525 23134 34762 24495 34369 23265 39947 22825 39828 25058 35674 24304 33790 23805 37326 24391 36736 24010 40832 25501 39685 24155 10/00 38312 24054 34607 22158 37677 22267 39802 23057 37453 20957 35708 19630 38735 21153 39273 21295 38606 20777 36845 20574 35243 19288 30813 17731 10/01 31706 18070 33837 19456 35140 19627 33773 19341 32746 18967 34285 19680 32170 18488 31761 18352 29144 17045 26594 15717 27134 15820 25058 14102 10/02 26912 15342 29186 16244 27108 15290 26463 14891 26108 14668 25714 14810 27792 16029 29988 16872 30737 17088 31303 17389 32445 17728 32393 17540 10/03 34839 18531
--- CAPITAL APPRECIATION FUND --- S & P 500 INDEX $9,450 starting value $10,000 starting value $34,839 ending value $18,531 ending value
AVERAGE ANNUAL TOTAL RETURNS(1,2) (as of 10/31/03)
INCEPTION SINCE DATE 1 YEAR 5 YEAR INCEPTION --------------------------------------------------------- Cap App A# 7/22/1996 29.46% 13.81% 19.62% --------------------------------------------------------- Cap App A## 7/22/1996 22.43% 12.52% 18.70% --------------------------------------------------------- Cap App B# 7/22/1996 28.45% 12.98% 18.79% --------------------------------------------------------- Cap App B## 7/22/1996 23.45% 12.73% 18.79% --------------------------------------------------------- Cap App C# 7/22/1996 28.60% 13.04% 18.83% --------------------------------------------------------- Cap App C## 7/22/1996 26.31% 12.81% 18.67% --------------------------------------------------------- Cap App Y# 7/22/1996 30.19% 14.39% 20.23% ---------------------------------------------------------
# Without sales charge ## With sales charge PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS. Please see page 1 for important additional information including inception dates and expenses. PORTFOLIO MANAGER SAUL J. PANNELL, CFA Senior Vice President, Partner -------------------------------------------------------------------------------- HOW DID THE FUND PERFORM? The Hartford Capital Appreciation Fund Class A, before sales charge, returned 29.46% for the twelve-month period ended October 31, 2003. The Fund's return trailed the 33.0% return for the Composite Index (S&P 500 40%: Russell 2500 60%), but outperformed the Lipper Multi-Cap Core Average, which returned 23.8% for the same time period and the 20.79% return for the S&P 500 Index. WHY DID THE FUND PERFORM THIS WAY? Equity markets continued to rise during the period as both the S&P 500 and NASDAQ Composite added to the year's gains; over the past twelve months the S&P 500 has now gained over 20%. During the quarter, the optimism regarding the economy that fueled the second quarter's sharp rally essentially became the consensus view. All market cap styles benefited, with the performance of small- and mid-cap stocks again exceeding that of large-cap equities. All ten S&P 500 sectors registered positive returns during the period with the strong results in Financials, Information Technology, and Consumer Discretionary. Our investment decisions, while based primarily on company-by-company fundamental analysis, may also be shaped by secular themes. We try to emphasize differences between our outlook and Wall Street consensus, and utilize a broad array of other investment techniques. Our Fund is focused on providing shareholders with maximum total returns. In seeking this level of high total return, the investment approach seeks capital appreciation from all companies regardless of market capitalization size, sector, or country. Having said this, the Fund benefited the most from strong stock selection in Telecommunication Services, Energy, and Materials, but these relative gains were slightly offset by the relatively poor stock selection in Information Technology, Industrials, and Health Care. The three largest contributors to performance were Nextel Communications (Telecommunication Services) which benefited from continued strength in its push-to-talk phone, Nortel Networks (Information Technology) which rose on new contract awards and a debt outlook upgrade from a credit agency, and Freeport-McMoran (Materials). The three biggest detractors from performance were Northrop Grumman (Industrials), AGCO (Industrials), and HealthSouth (Health Care). The Fund has exited the positions in these poor performers. It is important to note that as the Fund has grown larger, the portion of the Fund represented by small-caps has grown smaller. This has been slightly detrimental to the overall performance of the Fund as small-caps have been the strongest performing market cap category over this period. WHAT IS YOUR OUTLOOK? The performance of the equity markets over the past year suggests that investors are ascribing a high probability to the emergence of an economic recovery in the not-so-distant future. Although the stage appears to be set for a rebound, direct evidence of a recovery has been slow in coming. Productivity gains, improved financial flexibility, and a weaker dollar have only just started to positively influence corporate earnings. More significant and sustained increases in profits are likely necessary to impact capital spending and employment trends in a manner that allows for a sustained, moderate recovery. Tax cuts and low interest rates have provided a positive backdrop for an economic recovery, but higher fiscal deficits and rising interest rates could cause this safety net to be removed before the economy lands on its feet. With this in mind, we continue to focus on stocks that can appreciate in the face of shifting economic winds. 4 The Hartford Disciplined Equity Fund (subadvised by Wellington Management Company, LLP) (formerly The Hartford Growth and Income Fund) PERFORMANCE OVERVIEW(3) 4/30/98 - 10/31/03 Growth of a $10,000 investment in Class A which includes Sales Charge (LINE GRAPH)
DISCIPLINED EQUITY FUND S&P 500 INDEX ----------------------- ------------- 4/30/98 9450 10000 9242 9828 9591 10227 9591 10119 8269 8656 8829 9211 10/98 9625 9959 10155 10563 10847 11171 11197 11638 10790 11276 11311 11727 11652 12181 11416 11894 12145 12554 11889 12162 11719 12101 11369 11770 10/99 11861 12515 12178 12769 13104 13520 12359 12841 12330 12598 13648 13830 13104 13414 12779 13139 13249 13462 13143 13252 14029 14075 13182 13332 10/00 13124 13276 12074 12230 12254 12291 12855 12727 11813 11568 11171 10836 12073 11676 12173 11754 11922 11469 11663 11356 10971 10646 10059 9787 10/01 10380 9974 11112 10739 11212 10834 10952 10676 10631 10470 11022 10863 10251 10205 10150 10130 9299 9409 8657 8675 8707 8732 7755 7784 10/02 8447 8468 8898 8966 8397 8440 8117 8220 7987 8096 8037 8175 8659 8848 9130 9313 9210 9432 9331 9598 9542 9785 9542 9682 10/03 10103 10229
--- DISCIPLINED EQUITY FUND --- S&P 500 INDEX $9,450 starting value $10,000 starting value $10,103 ending value $10,229 ending value
AVERAGE ANNUAL TOTAL RETURNS(1,2) (as of 10/31/03)
INCEPTION SINCE DATE 1 YEAR 5 YEAR INCEPTION ----------------------------------------------------------------- Disciplined Eqy A# 4/30/1998 19.57% 0.97% 1.21% ----------------------------------------------------------------- Disciplined Eqy A## 4/30/1998 13.00% -0.17% 0.18% ----------------------------------------------------------------- Disciplined Eqy B# 4/30/1998 18.73% 0.25% 0.50% ----------------------------------------------------------------- Disciplined Eqy B## 4/30/1998 13.73% -0.13% 0.33% ----------------------------------------------------------------- Disciplined Eqy C# 4/30/1998 18.70% 0.28% 0.52% ----------------------------------------------------------------- Disciplined Eqy C## 4/30/1998 16.51% 0.07% 0.33% ----------------------------------------------------------------- Disciplined Eqy Y# 4/30/1998 20.05% 1.49% 1.72% -----------------------------------------------------------------
# Without sales charge ## With sales charge PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS. Please see page 1 for important additional information including inception dates and expenses. PORTFOLIO MANAGER JAMES A. RULLO, CFA Senior Vice President, Partner -------------------------------------------------------------------------------- HOW DID THE FUND PERFORM? The Hartford Disciplined Equity Fund Class A, before sales charge, returned 19.57% for the 12-month period ended October 31, 2003, modestly underperforming its benchmark, the S&P 500 index, which returned 20.79%, but outperforming the Lipper Large Cap Core Average, which returned 17.8% during the period. WHY DID THE FUND PERFORM THIS WAY? During the 12-month period ending October 31, 2003, equity markets rose sharply with much of the gains occurring after March 2003. Within the S&P 500, all ten sectors posted positive gains with the strong returns coming from Information Technology, Materials, and Consumer Discretionary. Signs of an economic re- acceleration are upon us, characterized by improvements in retail spending and industrial production. We expect that progress in the labor market will play an important role in sustaining economic growth in 2004. The Fund slightly under-performed its market benchmark during the period, primarily due to weak stock selection in the Consumer Discretionary and Information Technology sectors. The portfolio maintains similar sector exposures to that of the S&P 500 index. Within these two sectors, some of the names that hurt the portfolio's relative performance were First Data, Microsoft and Time Warner. Both First Data and Microsoft have lagged the general rally in technology stocks as investors have gravitated towards largely more speculative names. Both companies continue to execute and grow their earnings and the relative performance is reflective of the somewhat defensive nature of the two holdings. Time Warner stock continues to be plagued by its under-performing AOL division and the hangover from ongoing SEC inquiries. In all three cases mentioned above we continue to believe that the risk reward remains very favorable and are maintaining our positions. Despite weakness in these sectors, the Fund benefited from strong stock selection within eight of the ten sectors, with very strong results in Financials, Health Care and Telecommunications Services. Within these sectors some of the names that added value to the portfolio were Countrywide Financial, Genzyme and Nextel Communications. Countrywide Financial has been a significant beneficiary of the refinancing boom and continues to gain share. Genzyme, a large biotechnology concern focusing on genetic disorders and renal disease, continues to show growing strength in sales of its drugs. Nextel Communications, a wireless service provider, is gaining market share and will likely benefit when the new Wireless Local Number Portability rules come into effect. WHAT IS YOUR OUTLOOK? In the current environment of accelerating growth, productivity is surging and remains well above the rate of the 1990's, implying better corporate profits, higher investments, and ultimately job creation. Although the theme of a jobless recovery abounds, there are signs of better times for labor ahead. The number of self-employed workers is growing and small businesses have expressed intentions to step up hiring. We expect net employment gains to become more visible toward the end of 2003. We believe the consumption environment will be sound next year, bolstered by more jobs, tax cuts, and an improving net worth position of households. Furthermore, the outlook for capital spending is solid and will likely emerge as a new driver of growth. 5 The Hartford Dividend and Growth Fund (subadvised by Wellington Management Company, LLP) PERFORMANCE OVERVIEW(3) 7/22/96 - 10/31/03 Growth of a $10,000 investment in Class A which includes Sales Charge (LINE GRAPH)
DIVIDEND AND GROWTH FUND S&P 500 INDEX ------------------------ ------------- 7/22/96 9450 10000 9545 10102 9695 10317 10149 10897 10/96 10423 11198 10990 12043 10894 11805 11409 12542 11589 12641 11142 12122 11504 12845 12246 13630 12906 14236 13652 15368 13002 14507 13768 15301 10/97 13356 14790 13988 15475 14270 15741 14454 15914 15066 17061 15858 17935 15771 18118 15509 17806 15671 18529 15553 18333 13565 15684 14415 16689 10/98 15434 18044 15895 19138 16335 20240 16179 21086 15933 20430 16325 21248 17330 22070 16887 21549 17456 22745 16913 22035 16478 21925 16041 21324 10/99 16962 22674 16867 23134 17083 24495 16393 23265 15470 22825 17173 25058 16960 24304 17317 23805 16774 24391 16774 24010 17725 25501 17893 24155 10/00 18242 24054 17883 22158 18800 22267 18509 23057 18337 20957 17746 19630 18653 21153 18967 21295 18479 20777 18597 20574 18002 19288 16830 17731 10/01 16841 18070 17748 19456 17938 19627 17983 19341 18258 18967 18744 19680 17970 18488 18135 18352 17185 17045 15855 15717 15744 15820 14034 14102 10/02 15065 15342 16075 16244 15392 15290 14870 14891 14559 14668 14528 14810 15586 16029 16577 16872 16717 17088 16874 17389 17242 17728 17035 17540 10/03 17840 18531
--- DIVIDEND AND GROWTH FUND --- S&P 500 INDEX $9,450 starting value $10,000 starting value $17,840 ending value $18,531 ending value
AVERAGE ANNUAL TOTAL RETURNS(1,2) (as of 10/31/03)
INCEPTION SINCE DATE 1 YEAR 5 YEAR INCEPTION -------------------------------------------------------------- Div & Growth A# 7/22/1996 18.42% 2.94% 9.12% -------------------------------------------------------------- Div & Growth A## 7/22/1996 11.91% 1.78% 8.28% -------------------------------------------------------------- Div & Growth B# 7/22/1996 17.52% 2.21% 8.34% -------------------------------------------------------------- Div & Growth B## 7/22/1996 12.52% 1.84% 8.34% -------------------------------------------------------------- Div & Growth C# 7/22/1996 17.67% 2.25% 8.38% -------------------------------------------------------------- Div & Growth C## 7/22/1996 15.49% 2.04% 8.24% -------------------------------------------------------------- Div & Growth Y# 7/22/1996 19.03% 3.50% 9.67% --------------------------------------------------------------
# Without sales charge ## With sales charge PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS. Please see page 1 for important additional information including inception dates and expenses. PORTFOLIO MANAGER EDWARD P. BOUSA, CFA Vice President -------------------------------------------------------------------------------- HOW DID THE FUND PERFORM? The Hartford Dividend and Growth Fund Class A, before sales charge, returned 18.42% for the 12-month period ended October 31, 2003. The Fund under-performed its competitive group, the Lipper Equity Income Average, which returned 19.9% and the S&P 500 Index, the Fund's benchmark, which returned 20.79% over the same period. WHY DID THE FUND PERFORM THIS WAY? During the 12-month period ended October 31, 2003, the economic picture has improved, slowly. With both fiscal and monetary stimulation at sizable levels, the economy should continue to strengthen and we expect Gross Domestic Product to further improve in 2004. Productivity figures have been very strong as well, having a very large positive impact on corporate earnings. However, job growth has lagged the recovery, indicating that manufacturing jobs continue to go overseas and that businesses are still cautious about hiring. With respect to the Fund's relative results, our underperformance can be largely attributed to our low exposure to high beta, speculative Information Technology names and a handful of poor investments within the Telecommunications industry. Our Technology underweight negatively impacted performance as the sector, fueled by a recovery in semiconductors and hardware providers returned over 40% for the period. In terms of our diversified Telecommunication provider holdings, we were disappointed with the performance of Verizon and AT&T, which traded lower on weaker than expected demand for their core services. On an absolute basis, Schering-Plough (Pharmaceuticals) was the largest detractor from performance. Schering-Plough faced competitive pressures across several key drug franchises. At the end of the period, we continued to own AT&T, Verizon and Schering-Plough. Our stock selection was particularly strong among Financials and Industrials names, highlighted by significant positive contributions from Citigroup and Caterpillar, respectively. Citigroup benefited from its leverage to rising financial markets while Caterpillar experienced a significant up tick in orders resulting in higher earnings levels relative to previous cycles. At the margin, our macroeconomic strategies paid off as our overweight to Utilities and underweight to Health Care and Consumer Staples boosted benchmark-relative returns. WHAT IS YOUR OUTLOOK? The market was driven more by earnings in the third quarter, which was a positive for our portfolio. We have remained conservative in our positioning, as we do not think that the combination of a stronger economy, higher interest rates, and a weaker dollar will lead to further multiple expansion. We are well positioned for a shift from speculation on higher-valued growth stocks to more reasonably priced companies. 6 The Hartford Equity Income Fund (subadvised by Wellington Management Company, LLP) PERFORMANCE OVERVIEW(3) 8/28/03 - 10/31/03 Growth of a $10,000 investment in Class A which includes Sales Charge (LINE GRAPH)
EQUITY INCOME FUND RUSSELL 1000 VALUE INDEX ------------------ ------------------------ 8/28/03 9450 10000 9/03 9403 9902 10/03 9800 10508
--- EQUITY INCOME FUND --- RUSSELL 1000 VALUE INDEX $9,450 starting value $10,000 starting value $9,800 ending value $10,508 ending value
AVERAGE ANNUAL TOTAL RETURNS(2) (as of 10/31/03)
INCEPTION DATE SINCE INCEPTION -------------------------------------------------------- Equity Income A# 8/28/2003 3.70% -------------------------------------------------------- Equity Income A## 8/28/2003 -1.98% -------------------------------------------------------- Equity Income B# 8/28/2003 3.60% -------------------------------------------------------- Equity Income B## 8/28/2003 -1.40% -------------------------------------------------------- Equity Income C# 8/28/2003 3.60% -------------------------------------------------------- Equity Income C## 8/28/2003 2.60% -------------------------------------------------------- Equity Income Y# 8/28/2003 3.90% --------------------------------------------------------
# Without sales charge ## With sales charge PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS. Please see page 1 for important additional information including inception dates and expenses. PORTFOLIO MANAGER JOHN R. RYAN, CFA Senior Vice President, Managing Partner -------------------------------------------------------------------------------- HOW DID THE FUND PERFORM? The Hartford Equity Income Fund commenced operations on August 28, 2003. During the two-month period ended October 31, 2003, the fund returned 3.70% for Class A before sales charge. The Fund slightly under-performed both the Russell 1000 Value Index of 5.08% and its Lipper Equity Income peer group of 4.2%. WHY DID THE FUND PERFORM THIS WAY? US equity markets made modest progress during the period as investor enthusiasm was bolstered by improving trends in the economy. In this environment, value outperformed growth by 60 basis points. The broader market, as represented by the S&P 500, returned 4.5%. Our orientation towards dividend paying securities hurt relative performance during the period as companies with below market yields significantly outperformed companies with above market yields. The Fund's under-performance during this period was due primarily to poor stock selection in Finance and Telecommunications, and an underweight in Technology. In particular, the Fund's poor stock selection within Banks and Insurance were large detractors of performance. The Telecommunications sector, as a whole, continues to work its way through consolidation. Wireline carriers continue to see pressure on access lines and pricing from regulatory, technological substitution and economic issues. The top three detractors from performance were Marsh and McLennan (Finance), Verizon (Telecommunications) and Exxon Mobil (Energy). Marsh and McLennan's stock suffered from recent allegations of improper trading within its wholly owned subsidiary, Putnam Investments. While the news was unexpected, we believe its overall impact on the firm should not be overly significant. While third quarter results were in-line with guidance, Verizon is struggling from erosion of its core wireline business and labor cost increases. Exxon Mobil was weak due to a production volume shortfall, which the entire industry is experiencing and partially explains why oil prices have remained high. As of the end of the period, all three stocks continued to be held within the portfolio. Partially offsetting our detractors was strong stock selection within Industrials, Materials and Consumer Discretionary. Within Consumer Discretionary, the Fund's underweight to media, an area that has under-performed over the period due to weak advertising spending by corporations, was the prime contributor to performance. Three contributors to performance during the period were Morgan Stanley (Finance), Rockwell (Industrials) and Masco (Industrials). All three positions were held as of the end of the period. Despite an economic expansion that is nearly two years old, investors in the US and abroad share a sense of unease as a result of a jobless recovery, unbalanced dependence on consumer spending, and unsustainable deficits. Given this outlook, we continue to build positions in long-cycle companies and believe that long-term, the Fund is well positioned to benefit from the recovering economy. WHAT IS YOUR OUTLOOK? Economic stimulus from fiscal, monetary, and dollar policies, aided by the self-healing mechanisms embedded in the economy, led us to expect an improvement in growth in the second half of the year. With the third quarter Gross Domestic Product growth in excess of 4%, our thesis remains intact. The only things that have changed are the sharp equity market rally and the heightened sensitivity of policy makers to structural issues that have become obvious over the last three months. 7 The Hartford Focus Fund (subadvised by Wellington Management Company, LLP) PERFORMANCE OVERVIEW(3) 5/24/01 - 10/31/03 Growth of a $10,000 investment in Class A which includes Sales Charge (LINE GRAPH)
FOCUS FUND S&P 500 INDEX ---------- ------------- 5/24/01 9450 10000 9441 9715 9186 9479 8996 9386 8770 8798 8014 8088 10/01 8335 8242 9129 8874 9526 8952 9176 8822 9072 8651 9299 8977 8439 8433 8221 8371 7513 7775 7125 7169 7087 7216 6274 6432 10/02 6917 6998 7626 7409 7106 6974 6926 6792 6718 6690 6737 6755 7228 7311 7663 7696 7719 7794 8040 7931 8106 8086 7917 8000 10/03 8446 8452
--- FOCUS FUND --- S&P 500 INDEX $9,450 starting value $10,000 starting value $8,446 ending value $8,452 ending value
AVERAGE ANNUAL TOTAL RETURNS(2) (as of 10/31/03)
INCEPTION DATE 1 YEAR SINCE INCEPTION --------------------------------------------------------- Focus A# 5/24/2001 22.13% -4.49% --------------------------------------------------------- Focus A## 5/24/2001 15.36% -6.67% --------------------------------------------------------- Focus B# 5/24/2001 21.24% -5.15% --------------------------------------------------------- Focus B## 5/24/2001 16.24% -6.33% --------------------------------------------------------- Focus C# 5/24/2001 21.27% -5.19% --------------------------------------------------------- Focus C## 5/24/2001 19.06% -5.58% --------------------------------------------------------- Focus Y# 5/24/2001 22.66% -4.05% ---------------------------------------------------------
# Without sales charge ## With sales charge PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS. Please see page 1 for important additional information including inception dates and expenses. PORTFOLIO MANAGER RAND L. ALEXANDER, CFA Senior Vice President, Partner -------------------------------------------------------------------------------- HOW DID THE FUND PERFORM? The Hartford Focus Fund Class A, before sales charge, returned 22.13% for the 12-month period ended October 31, 2003, outperforming its Lipper Large Cap Core Average of 17.8% and the S&P 500 Index, the Fund's benchmark, 20.79%. WHY DID THE FUND PERFORM THIS WAY? Most major market indices posted positive returns during the period. On a relative basis, small caps continued to outperform mid cap and large cap stocks and value edged out growth by a small margin. All ten sectors of the S&P 500 posted positive gains for the period with strong results in Consumer Discretionary, Materials and Technology. Strong stock selection, within the Financial, Health Care, Materials and Energy sectors, was the primary contributor to out-performance. At the margin, the Fund's overweight positions within Information Technology and Consumer Discretionary helped performance. Two of the strongest contributors to performance were Cisco (Technology) and Genzyme (Biotechnology). Cisco benefited from a rebound in technology spending over the last year as well as new product introductions. Genzyme has had a strong year after 2 new product approvals by the FDA, Fabryzyme and Aldurazyme as well as stronger sales of its leading products, Renagel and Cerezyme. Conversely not all of our stocks performed well during the period. In particular poor stock selection within Consumer Staples, Consumer Discretionary and Industrials detracted from performance. The top three detractors from performance were Schering-Plough (Pharmaceutical), Baxter International (Health Care Equipment) and Safeway (Consumer Staples). Schering-Plough has suffered from competitive pressures across its key drug franchises as well as from the switch of Claritin, their leading product, to the OTC market. Safeway lowered their earnings guidance resulting from increasing operating costs and declining margins due to competition from Wal-Mart. Finally, Baxter International had disappointing results due to pricing and competition in the Factor VIII market, one of their key growth drivers. All three stocks were eliminated from the portfolio. WHAT IS YOUR OUTLOOK? Investor optimism surrounding the economy and the equity market has started to consolidate. Tax cuts, a weaker dollar, sustained productivity, and healthier balance sheets all bode well for corporate profits. The consumer has driven the economic recovery so far; however, we will look for improved corporate spending and employment trends as key gauges to determine the sustainability of the domestic recovery. At this juncture, we believe a sustainable up-trend will in fact unfold over the next several months and support growth in 2004. 8 The Hartford Global Communications Fund (subadvised by Wellington Management Company, LLP) PERFORMANCE OVERVIEW(3) 10/31/00 - 10/31/03 Growth of a $10,000 investment in Class A which includes Sales Charge (LINE GRAPH)
MSCI AC WORLD GLOBAL COMMUNICATIONS TELECOMMUNICATIONS SERVICES FUND INDEX S&P 500 INDEX --------------------- --------------------------- ------------- 10/31/00 9450 10000 10000 7314 8625 9212 7399 8405 9257 8883 9231 9586 7068 7800 8713 5982 7362 8161 6492 7922 8794 5963 7313 8853 5689 6831 8638 5585 6911 8553 4791 6173 8019 4564 6248 7372 10/01 4319 6020 7513 4565 6306 8089 4697 6343 8160 4101 5776 8041 3601 5513 7886 3733 5585 8182 3317 4977 7686 3326 5009 7630 2882 4489 7087 2731 4254 6534 2882 4250 6577 2504 3594 5863 10/02 3061 4411 6378 3392 4883 6753 3241 4595 6357 3156 4494 6191 3137 4261 6098 3080 4208 6157 3383 4513 6664 3666 5055 7015 3864 5098 7104 3874 4978 7229 3987 4964 7370 4063 4994 7292 10/03 4412 5234 7704
--- GLOBAL COMMUNICATIONS FUND --- MSCI AC WORLD FREE TELECOMMUNICATIONS $9,450 starting value SERVICES INDEX $4,412 ending value $10,000 starting value $5,234 ending value -- S & P 500 INDEX $10,000 starting value $7,704 ending value
AVERAGE ANNUAL TOTAL RETURNS(2) (as of 10/31/03)
INCEPTION DATE 1 YEAR SINCE INCEPTION --------------------------------------------------------------- Global Comm A# 10/31/2000 44.14% -22.42% --------------------------------------------------------------- Global Comm A## 10/31/2000 36.15% -23.86% --------------------------------------------------------------- Global Comm B# 10/31/2000 43.57% -22.92% --------------------------------------------------------------- Global Comm B## 10/31/2000 38.57% -23.70% --------------------------------------------------------------- Global Comm C# 10/31/2000 43.26% -22.97% --------------------------------------------------------------- Global Comm C## 10/31/2000 40.83% -23.23% --------------------------------------------------------------- Global Comm Y# 10/31/2000 45.40% -22.03% ---------------------------------------------------------------
# Without sales charge ## With sales charge PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS. Please see page 1 for important additional information including inception dates and expenses. PORTFOLIO MANAGEMENT TEAM ARCHANA BASI, CFA Vice President, Portfolio Coordinator, Global Industry Analyst DAVID NINCIC, CFA Vice President, Global Industry Analyst -------------------------------------------------------------------------------- HOW DID THE FUND PERFORM? The Hartford Global Communications Fund Class A, before sales charge, returned 44.14% for the twelve-month period ended October 31, 2003. The Fund strongly outperformed the MSCI AC (All Country) World Free Telecommunication Services Index, which returned 18.66%, and the Lipper Telecommunications Mutual Fund Average, which returned 34.1% over the same period. WHY DID THE FUND PERFORM THIS WAY? Global telecommunications was one of the best performing sectors as the Fund's return of 44% far exceeded the 24.3% gain of the MSCI World Index. The Fund's outperformance over the twelve-month period relative to the MSCI AC World Free Telecommunications Services Index was driven almost entirely by superior stock selection across all of the sub-sectors invested in by the portfolio. Within the Integrated/Diversified Telecommunications sector, disappointing investments in AT&T and SBC Communications were more than offset by the exceptional performance of such holdings as Citizens Communications (US), Telekom Austria (Austria), and Telekom South (South Africa). In general, we continue to find increasingly attractive wireline opportunities in less developed countries as revenue opportunities significantly outpace those within more mature developed markets. Our wireless holdings performed exceptionally well during the period, led by Nextel Communications (US), and Mobistar (Belgium). Our sub-sector rotation was also a positive driver of performance during the period, as we moved to an overweight position in the Integrated Telecommunications and a slight underweight position within the Wireless Telecommunications sub-sector. WHAT IS YOUR OUTLOOK? We believe that the remainder of 2003 and 2004 will be tough for both wireline and wireless stocks. Wireline carriers face access line declines and voice substitutions to wireless, which is already bearing itself out in financial results. Wireless carriers outside of the U.S. should experience weak subscriber growth, and price competition is intensifying throughout the world. Despite a difficult telecom industry backdrop, we believe that the Fund can continue to find underpriced stocks of companies with solid business fundamentals, which are not appreciated by the market. 9 The Hartford Global Financial Services Fund (subadvised by Wellington Management Company, LLP) PERFORMANCE OVERVIEW(3) 10/31/00 - 10-/31/03 Growth of a $10,000 investment in Class A which includes Sales Charge (LINE GRAPH)
GLOBAL FINANCIAL SERVICES MSCI FINANCIAL EX REAL ESTATE FUND INDEX S&P 500 INDEX ------------------------- ----------------------------- ------------- 10/31/00 9450 10000 10000 9091 9618 9212 10036 10358 9257 9857 10361 9586 9630 9685 8713 9290 9114 8161 9715 9501 8794 9941 9447 8853 9989 9364 8638 9885 9166 8553 9715 9066 8019 8836 8104 7372 10/01 8854 8117 7513 9100 8533 8089 9384 8630 8160 8949 8330 8041 8921 8183 7886 9402 8772 8182 9430 8799 7686 9298 8912 7630 8987 8423 7087 8079 7630 6534 8070 7728 6577 7134 6668 5863 10/02 7588 7314 6378 8004 7672 6753 7566 7225 6357 7205 6988 6191 7025 6841 6098 6987 6711 6157 7718 7651 6664 8098 8089 7015 8184 8199 7104 8458 8560 7229 8430 8496 7370 8581 8700 7292 10/03 9217 9399 7704
--- GLOBAL FINANCIAL SERVICES FUND --- MSCI FINANCE EX REAL ESTATE INDEX $9,450 starting value $10,000 starting value $9,217 ending value $9,399 ending value -- S&P 500 INDEX $10,000 starting value $7,704 ending value
AVERAGE ANNUAL TOTAL RETURNS(2) (as of 10/31/03)
INCEPTION DATE 1 YEAR SINCE INCEPTION ------------------------------------------------------------------ Global Fin Ser A# 10/31/2000 21.48% -0.82% ------------------------------------------------------------------ Global Fin Ser A## 10/31/2000 14.76% -2.67% ------------------------------------------------------------------ Global Fin Ser B# 10/31/2000 20.58% -1.52% ------------------------------------------------------------------ Global Fin Ser B## 10/31/2000 15.58% -2.52% ------------------------------------------------------------------ Global Fin Ser C# 10/31/2000 20.58% -1.52% ------------------------------------------------------------------ Global Fin Ser C## 10/31/2000 18.37% -1.85% ------------------------------------------------------------------ Global Fin Ser Y# 10/31/2000 22.01% -0.39% ------------------------------------------------------------------
# Without sales charge ## With sales charge PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS. Please see page 1 for important additional information including inception dates and expenses. PORTFOLIO MANAGEMENT TEAM MARK T. LYNCH, CFA Senior Vice President, Partner, Portfolio Coordinator, Global Industry Analyst ERIC HALET Vice President, Global Industry Analyst R. ANDREW HEISKELL Assistant Vice President, Global Industry Analyst JENNIFER L. NETTESHEIM, CFA Vice President, Global Industry Analyst THEODORE SHASTA, CFA Senior Vice President, Partner, Global Industry Analyst -------------------------------------------------------------------------------- HOW DID THE FUND PERFORM? The Hartford Global Financial Services Fund Class A, before sales charge, returned 21.48% for the twelve-month period ended October 31, 2003. The Fund underperformed its benchmark, the MSCI Finance ex-Real Estate Index, which returned 28.51%, and the Lipper Financial Services Mutual Fund Average, which returned 25.7% over the period. WHY DID THE FUND PERFORM THIS WAY? During the period, financial stocks globally had positive returns that were stronger than other broad sectors as the MSCI Financials sector returned 29.0% versus the 24.3% return of the MSCI World Index. Relative to the MSCI Finance ex-Real Estate Index, the Fund's thematic sub-sector allocation decisions were the primary driver of underperformance. In particular, the Fund was underweight in the strong-performing Diversified Financials sub-sector, which benefited from the improved condition of the financial markets and the resultant increase in business. On the other hand, the Fund was overweight the Insurance Brokers which were weak as a result of company-specific issues at Marsh & McLennan and underlying business weakness at Clark. Stock selection on an overall basis detracted from the Fund's relative performance over the period with poorest results in the Investment Banking and Brokerage sub-industry. The largest detractors were Investment Technology Group (Diversified Financial), Clark (Insurance Broker), and Mitsubishi Tokyo Financial (Commercial Bank), which were not held in the Fund as of the end of the period. The largest contributors to absolute return were Unicredito (Commercial Bank), Merrill Lynch (Diversified Financial), and Royal Bank of Scotland (Commercial Bank). WHAT IS YOUR OUTLOOK? We continue to have a favorable view of Insurance Companies while remaining cautious on Diversified Financials and Banks. Our favorable outlook on insurers is based on a continued strong property-casualty pricing cycle; premiums in the casualty business continue to rise. In addition, these companies benefit from stable or higher interest rates, an improving economy, and a better tone in the capital markets. Our cautious view of the banking industry is based on uncertainty surrounding the market's perception of the unfolding economic recovery, i.e., whether businesses spend excess cash accumulated through deposits over the last few years rather than ramping up their borrowing from banks as expected by the market. 10 The Hartford Global Health Fund (subadvised by Wellington Management Company, LLP) PERFORMANCE OVERVIEW(3) 5/1/00 - 10/31/03 Growth of a $10,000 investment in Class A which includes Sales Charge (LINE GRAPH)
GOLDMAN SACHS HEALTH CARE GLOBAL HEALTH FUND S&P 500 INDEX INDEX ------------------ ------------- ------------------------- 5/01/00 9450 10000 10000 9620 9795 10274 11323 10036 11392 11503 9879 11007 12118 10493 11404 12923 9939 11907 10/00 13112 9897 12194 13463 9117 12366 13965 9162 12814 13168 9487 11631 13128 8623 11576 12321 8077 10544 12980 8704 11004 13590 8762 11246 13678 8549 10963 13599 8465 11263 13392 7936 10975 12958 7296 10889 10/01 13264 7435 10905 13987 8006 11488 14168 8076 11271 13765 7958 10969 13816 7804 10914 14188 8098 11051 13705 7607 10360 13283 7551 10158 12077 7014 9192 11756 6467 8991 11524 6509 9055 10831 5803 8572 10/02 11485 6313 8969 12273 6684 9220 11674 6292 8901 11499 6127 8906 11117 6035 8752 11230 6094 9018 12211 6595 9434 13409 6942 9873 13718 7031 10297 13770 7155 10337 13637 7295 10111 13946 7217 10126 10/03 14246 7625 10225
--- GLOBAL HEALTH FUND -- GOLDMAN SACHS HEALTH CARE INDEX $9,450 starting value $10,000 starting value $14,246 ending value $10,225 ending value --- S & P 500 INDEX $10,000 starting value $7,625 ending value
AVERAGE ANNUAL TOTAL RETURNS(2) (as of 10/31/03)
INCEPTION DATE 1 YEAR SINCE INCEPTION ----------------------------------------------------------------- Global Health A# 5/1/2000 24.02% 12.44% ----------------------------------------------------------------- Global Health A## 5/1/2000 17.24% 10.64% ----------------------------------------------------------------- Global Health B# 5/1/2000 23.13% 11.60% ----------------------------------------------------------------- Global Health B## 5/1/2000 18.13% 10.94% ----------------------------------------------------------------- Global Health C# 5/1/2000 23.11% 11.61% ----------------------------------------------------------------- Global Health C## 5/1/2000 20.88% 11.29% ----------------------------------------------------------------- Global Health Y# 5/1/2000 24.50% 13.10% -----------------------------------------------------------------
# Without sales charge ## With sales charge PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS. Please see page 1 for important additional information including inception dates and expenses. PORTFOLIO MANAGEMENT TEAM JOSEPH H. SCHWARTZ, CFA Senior Vice President, Partner, Portfolio Coordinator Global Industry Analyst ANN C. GALLO Senior Vice President, Partner, Global Industry Analyst JEAN M. HYNES, CFA Senior Vice President, Partner, Global Industry Analyst KIRK J. MAYER, CFA Vice President, Global Industry Analyst -------------------------------------------------------------------------------- HOW DID THE FUND PERFORM? The Hartford Global Health Fund Class A, before sales charge, returned 24.02% for the twelve-month period ended October 31, 2003. The Fund outperformed the Goldman Sachs Health Care Index, which returned 14.00%, and the Lipper Health and Biotechnology Mutual Fund Average, which returned 21.1% over the period. WHY DID THE FUND PERFORM THIS WAY? During the period, Health Care stocks globally had positive returns but were weaker than other broad sectors as the MSCI Health Care sector returned 9.0% versus the 24.3% return of the MSCI World Index. Overall, the market commonly regards the Health Care sector as being more a defensive sector; the environment over the last year benefited more cyclical areas of the market. Relative to the Goldman Sachs Health Care Index, both sub-sector allocation and stock selection decisions drove Fund outperformance. Over the period, the Fund maintained an overweight to Biotechnology stocks relative to the benchmark. We remain of the belief that valuations in this sub-sector do not adequately reflect the potential of new product pipelines that have been building in recent years reflecting technological developments within the Biotechnology and Genomics arena. This positioning has served the Fund well as investors have flocked back to the more speculative sectors of the market, including Biotechnology. In addition, stock selection was particularly strong within the Pharmaceuticals sub-sector. The best absolute contributors within the portfolio during this time period included Genzyme (Biotechnology), which won new drug approvals from the FDA, Guidant (Health Care Equipment) which benefited from a slower-than-expected decline in its bare metal stent sales, and AstraZeneca (Pharmaceuticals) which continued to enjoy superior performance versus the other major pharmaceutical stocks due to its growth outlook. The greatest detractors were Schering-Plough (Pharmaceuticals) where the company experienced competitive pressures across several key drug franchises, HealthSouth (Health Care Provider), a stock held for an interim time during the period, and Vertex Pharmaceuticals (Biotechnology). At the end of the period, we continued to own Schering-Plough and Vertex. WHAT IS YOUR OUTLOOK? Among the Health Care sub-sectors, we see the greatest opportunities in Pharmaceutical and Biotechnology stocks. With regard to Pharmaceutical companies, product introductions have historically provided these companies with a significant ability to leverage cost bases. Investment opportunities are present in cases where the market underestimates a company's profit leverage. In Biotechnology, favorable prospects to develop and sell breakthrough medicines remain unchanged. Biotechnology companies are highly leveraged to the FDA's greater risk tolerance for approval of orphan cancer drugs. Within the Health Care Services sub-sector, we are at or very near the peak in the health insurance pricing cycle. Consolidation in the industry is likely to continue, as health insurance companies realize that slower enrollment growth and reduced premium pricing flexibility is forthcoming. The positive spread between premium rate increases and medical cost inflation will narrow in 2004. Within the Medical Devices sub-sector, several years of strong relative performance for Medical Technology stocks have left fewer stocks with attractive valuations, though fundamentals remain strong. 11 The Hartford Global Leaders Fund (subadvised by Wellington Management Company, LLP) PERFORMANCE OVERVIEW(3) 9/30/98 - 10/31/03 Growth of a $10,000 investment in Class A which includes Sales Charge (LINE GRAPH)
GLOBAL LEADERS FUND MSCI WORLD INDEX ------------------- ---------------- 9/30/98 9450 10000 10/98 10697 10906 11482 11556 12320 12122 12932 12389 12572 12061 13176 12565 13478 13062 13011 12587 13878 13176 14072 13138 13995 13117 13800 12991 10/99 14697 13668 15775 14054 18196 15194 17481 14325 19461 14367 19393 15361 18472 14713 17962 14342 18766 14827 18135 14411 19149 14883 18341 14092 10/00 17287 13858 16263 13019 16870 13231 16870 13488 15319 12349 14265 11540 15370 12397 15052 12243 14764 11861 14395 11704 13598 11145 12412 10164 10/01 12781 10360 13876 10975 13945 11045 13487 10711 13387 10620 13815 11092 13347 10720 13616 10745 12760 10095 11674 9245 11555 9264 10201 8247 10/02 11167 8857 12153 9337 11087 8886 10838 8617 10578 8470 10429 8447 11595 9201 12292 9732 12581 9904 12891 10108 13249 10328 12890 10393 10/03 13906 11011
--- GLOBAL LEADERS FUND --- MSCI WORLD INDEX $9,450 starting value $10,000 starting value $13,906 ending value $11,011 ending value
AVERAGE ANNUAL TOTAL RETURNS(2) (as of 10/31/03)
INCEPTION DATE 1 YEAR 5 YEAR SINCE INCEPTION --------------------------------------------------------------------------- Global Leaders A# 9/30/1998 24.53% 5.39% 7.89% --------------------------------------------------------------------------- Global Leaders A## 9/30/1998 17.71% 4.20% 6.70% --------------------------------------------------------------------------- Global Leaders B# 9/30/1998 23.62% 4.63% 7.11% --------------------------------------------------------------------------- Global Leaders B## 9/30/1998 18.62% 4.30% 6.96% --------------------------------------------------------------------------- Global Leaders C# 9/30/1998 23.76% 4.68% 7.17% --------------------------------------------------------------------------- Global Leaders C## 9/30/1998 21.52% 4.47% 6.96% --------------------------------------------------------------------------- Global Leaders Y# 9/30/1998 25.24% 5.93% 8.45% ---------------------------------------------------------------------------
# Without sales charge ## With sales charge PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS. Please see page 1 for important additional information including inception dates and expenses. PORTFOLIO MANAGER ANDREW S. OFFIT, CFA Senior Vice President, Partner -------------------------------------------------------------------------------- HOW DID THE FUND PERFORM? The Hartford Global Leaders Fund Class A, before sales charge, returned 24.53% for the twelve-month period ended October 31, 2003. The Fund outperformed the MSCI World Index benchmark return of 24.32% and the Lipper Global Funds Average return of 23.6%. WHY DID THE FUND PERFORM THIS WAY? The rebound in the global equity markets was broad based, with all developed markets participating in the advance and the majority of the ten broad market sectors of the MSCI World Index registering double-digit returns. The rally was propelled by continued signs of improvement in the global economy and reduced uncertainty in the geopolitical arena. At the regional level, performance was strongest within Japan and Asia excluding Japan. Performance within the United States and the United Kingdom was less robust during the period. While we do not manage the Fund by country weights but, instead, focus solely on sector and stock weights, countries and regions played a part in our outperformance for the period. The Fund was helped by being overweight Europe and hurt by being underweight Japan and Canada. Our outperformance was largely driven by strong stock selection within Information Technology, Consumer Discretionary, and Financials, while security selection within Consumer Staples and Materials detracted from performance. Three of the largest contributors to performance were the French technology hardware company Alcatel, the Canadian technology hardware company Nortel Networks, and the Japanese software services company Yahoo Japan. Alcatel has benefited from solid earnings reports. Three of the largest detractors from performance were Lukoil, the Russian oil and gas company, Tandberg, the Norwegian communications equipment company, and the US conglomerate, Tyco. Lukoil continued to struggle during the period after the arrest of oil tycoon Mikhail Khodorkovsky on charges of fraud, theft and tax evasion. WHAT IS YOUR OUTLOOK? We remain underweight in Financial Services, an area that continues to have overcapacity issues that remain to be addressed, and where it is generally difficult to find good companies that have above market growth rates. We continue to have the highest conviction in the Technology sector, and remain convinced that, as time moves on, this sector can benefit from improving fundamentals and easier year-over-year comparisons. Overall, we continue to be positioned for economic growth and focused on companies that have improving prospects or where fundamentals are better than generally believed. We do not plan to change our investment approach, as we continue to believe that sector fundamentals and underlying company business trends are the most significant contributors to security selection. 12 The Hartford Global Technology Fund (subadvised by Wellington Management Company, LLP) PERFORMANCE OVERVIEW(3) 5/1/00 - 10/31/03 Growth of a $10,000 investment in Class A which includes Sales Charge (LINE GRAPH)
GOLDMAN SACHS TECHNOLOGY GLOBAL TECHNOLOGY FUND COMPOSITE INDEX S & P 500 INDEX ---------------------- ------------------------ --------------- 5/1/00 9450 10000 10000 8512 8780 9795 9812 9860 10036 9180 9400 9879 10425 10623 10493 8929 8902 9939 10/00 8102 8230 9897 6146 6346 9117 5930 5802 9162 6868 6754 9487 5367 4882 8623 4626 4204 8077 5479 5006 8704 5217 4807 8762 5301 4819 8549 4954 4476 8465 4194 3893 7936 3265 3106 7296 10/01 3762 3605 7435 4429 4219 8006 4588 4144 8076 4541 4140 7958 3978 3587 7804 4279 3842 8098 3763 3372 7607 3547 3234 7551 3181 2777 7014 2862 2496 6467 2824 2463 6509 2308 2024 5803 10/02 2796 2466 6313 3284 2897 6684 2824 2470 6292 2871 2448 6127 2862 2491 6035 2852 2463 6094 3162 2720 6595 3509 3024 6942 3547 3016 7031 3744 3189 7155 3988 3410 7295 3941 3360 7217 10/03 4391 3688 7625
--- GLOBAL TECHNOLOGY FUND --- GOLDMAN SACHS TECHNOLOGY COMPOSITE INDEX $9,450 starting value $10,000 starting value $4,391 ending value $3,688 ending value -- S & P 500 INDEX $10,000 starting value $7,625 ending value
AVERAGE ANNUAL TOTAL RETURNS(2) (as of 10/31/03)
INCEPTION DATE 1 YEAR SINCE INCEPTION --------------------------------------------------------------- Global Tech A#........... 5/1/2000 57.05% -19.67% --------------------------------------------------------------- Global Tech A##.......... 5/1/2000 48.57% -20.95% --------------------------------------------------------------- Global Tech B#........... 5/1/2000 56.16% -20.06% --------------------------------------------------------------- Global Tech B##.......... 5/1/2000 51.16% -20.94% --------------------------------------------------------------- Global Tech C#........... 5/1/2000 56.16% -20.06% --------------------------------------------------------------- Global Tech C##.......... 5/1/2000 53.60% -20.48% --------------------------------------------------------------- Global Tech Y#........... 5/1/2000 57.81% -19.32% ---------------------------------------------------------------
# Without sales charge ## With sales charge PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS. Please see page 1 for important additional information including inception dates and expenses. PORTFOLIO MANAGEMENT TEAM SCOTT E. SIMPSON Senior Vice President, Partner, Portfolio Coordinator, Global Industry Analyst JOHN F. AVERILL, CFA Senior Vice President, Partner Global Industry Analyst BRUCE L. GLAZER Vice President, Global Industry Analyst ANITA M. KILLIAN, CFA Vice President, Global Industry Analyst VIKRAM MURTHY Assistant Vice President Global Industry Analyst ERIC STROMQUIST Senior Vice President, Partner Global Industry Analyst -------------------------------------------------------------------------------- HOW DID THE FUND PERFORM? The Hartford Global Technology Fund Class A, before sales charge, returned 57.05% for the twelve-month period ended October 31, 2003. The Fund outperformed both the Goldman Sachs Technology Composite Index, which returned 49.55%, and the Lipper Science and Technology Mutual Fund Average, which returned 53.3% over the period. WHY DID THE FUND PERFORM THIS WAY? A high degree of confidence returned to the market, especially benefiting more speculative or higher beta areas of the market. This investor sentiment was favorable for many Technology names as the sector appreciated over 43% during the period, easily surpassing the broad-based MSCI World Index return of 24.3%. The sector is showing clear signs of stabilization, evidenced by a series of favorable data points such as a pick-up in personal computer unit sales and high growth among computer storage companies. In addition, after a prolonged slump, global semiconductor sales have improved markedly thanks to higher average selling prices and increased demand for personal computers and wireless handsets. Among wireless handsets, an upgrade cycle is underway, led by camera-enabled phones. To round out the positive news flow within the sector, a period of consolidation has begun among software companies and data processing companies who continue to benefit from strong demand. During the period, the Fund's outperformance relative to its market benchmark, the Goldman Sachs Technology Composite Index, was driven primarily by strong fundamental, bottom-up stock selection with some value added coming from overweights to a handful of outperforming sub-industries. Overall, our stock picking amongst Hardware & Equipment and Semiconductors names was most beneficial to our relative results. Our high exposure to the Computer Storage area, which returned over 118% for the period, also contributed to performance. In terms of specific names, the greatest contributors to absolute return were Technology Hardware & Equipment companies Maxtor and Cisco Systems, which benefited from the pick-up in corporate storage and infrastructure spending, and Commercial Services & Supplies Company Cendant. On the negative side, the greatest detractors were Microsoft (software & services), which lagged the strong performance of more speculative technology names over the period, BISYS Group (Software & Services), and Time Warner (Media), a stock which recovered sharply following poor returns during the first three months of the period based on market concerns about the outlook for the AOL business. Time Warner was not held in the Fund as of the end of the period. WHAT IS YOUR OUTLOOK? Technology advances show no signs of slowing down. The computer and telecommunications revolution has barely begun. Demand for technology should continue to strengthen as corporate profits improve. However, many Technology stocks already fully reflect a recovery case. We continue to find attractive stocks but stock selection will become increasingly critical. The technology market, which has supported this year's global equity rebound, may have now become stretched from a valuation standpoint. This is a sector that will keep offering some solid investment opportunities to the investment professional, but the opportunistic speculator may find it a difficult one to second-guess. 13 The Hartford Growth Fund (subadvised by Wellington Management Company, LLP) PERFORMANCE OVERVIEW(4,6) 10/31/93 - 10/31/03 Growth of a $10,000 investment in Class A which includes Sales Charge (LINE GRAPH)
GROWTH FUND RUSSELL 1000 GROWTH INDEX ----------- ------------------------- 10/31/93 9450 10000 9156 9934 9383 10106 9654 10339 9567 10151 9167 9661 9259 9707 9297 9854 8918 9563 9259 9890 9936 10441 9795 10298 10/94 10152 10541 9660 10204 9621 10375 9689 10596 9962 11040 10300 11362 10323 11611 10641 12017 11406 12480 11997 13000 12071 13014 12085 13614 10/95 11806 13623 12193 14153 11696 14234 12032 14709 12289 14979 12431 14998 12751 15392 13098 15930 13024 15952 12232 15017 12477 15405 13457 16526 10/96 13594 16625 14329 17874 13867 17523 14490 18752 14156 18624 13411 17617 13912 18787 15229 20143 15821 20949 17260 22800 16791 21467 17575 22523 10/97 17035 21689 16919 22611 17167 22865 17373 23548 18616 25319 19645 26329 19714 26693 19393 25935 20522 27522 20171 27340 17053 23236 18242 25021 10/98 19152 27033 20266 29090 22255 31714 23317 33575 22451 32041 23605 33729 23956 33773 23461 32736 24533 35028 24131 33914 23513 34467 23090 33743 10/99 24677 36291 25902 38250 29971 42228 28990 40248 32051 42216 31855 45239 29108 43085 28218 40914 29278 44015 28820 42180 31201 45997 30782 41646 10/00 29552 39676 26800 33828 28488 32759 27187 35022 25917 29075 24228 25912 27078 29190 27156 28761 26319 28094 25514 27391 23376 25151 21316 22641 10/01 22044 23829 24096 26119 24328 26070 23600 25608 22934 24545 23631 25395 21740 23322 21291 22758 19354 20653 18068 19517 18300 19576 16844 17546 10/02 18440 19155 19494 20195 18300 18799 17898 18342 17588 18258 18176 18598 19711 19972 20671 20969 21152 21258 21493 21787 21942 22330 21880 22091 10/03 23538 23332
--- GROWTH FUND --- RUSSELL 1000 GROWTH INDEX $9,450 starting value $10,000 starting value $23,538 ending value $23,332 ending value
PORTFOLIO MANAGER ANDREW J. SHILLING, CFA Senior Vice President, Partner AVERAGE ANNUAL TOTAL RETURNS(4,5,10) (as of 10/31/03)
INCEPTION SINCE DATE 1 YEAR 5 YEAR 10 YEAR INCEPTION ------------------------------------------------------------------- Growth A# 6/8/1949 27.65% 4.21% 9.55% 11.24% ------------------------------------------------------------------- Growth A## 6/8/1949 20.65% 3.04% 8.94% 11.13% ------------------------------------------------------------------- Growth B# 11/14/1994 26.85% 3.47% NA* NA* ------------------------------------------------------------------- Growth B## 11/14/1994 21.85% 3.20% NA* NA* ------------------------------------------------------------------- Growth C# 11/14/1994 26.85% 3.48% NA 9.18% ------------------------------------------------------------------- Growth C## 11/14/1994 24.58% 3.10% NA 9.05% ------------------------------------------------------------------- Growth H# 11/14/1994 27.10% 3.51% NA* NA* ------------------------------------------------------------------- Growth H## 11/14/1994 23.10% 3.24% NA* NA* ------------------------------------------------------------------- Growth L# 6/8/1949 28.13% 4.31% 9.61% 11.27% ------------------------------------------------------------------- Growth L## 6/8/1949 22.08% 3.29% 9.07% 11.17% ------------------------------------------------------------------- Growth M# 11/14/1994 27.04% 3.50% NA* NA* ------------------------------------------------------------------- Growth M## 11/14/1994 23.04% 3.23% NA* NA* ------------------------------------------------------------------- Growth N# 11/14/1994 27.04% 3.51% NA 9.20% ------------------------------------------------------------------- Growth N## 11/14/1994 26.04% 3.51% NA 9.20% ------------------------------------------------------------------- Growth Y# 2/19/2002 28.22% NA NA 1.56% -------------------------------------------------------------------
# Without sales charge ## With sales charge NA Not Applicable * 10 year and inception returns are not applicable for Classes B, H and M because after 8 years Class B converts to Class A and Classes H and M convert to Class L. PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS. Please see page 1 for important additional information including inception dates and expenses. -------------------------------------------------------------------------------- HOW DID THE FUND PERFORM? The Hartford Growth Fund Class A returned 27.65% for the 12 month period ended October 31, 2003 outperforming the Russell 1000 Growth Index, the Fund's benchmark, 21.81%, and the Lipper Large Cap Growth Average 19.1%. WHY DID THE FUND PERFORM THIS WAY? During the period, large cap stocks continued to under-perform small and mid cap stocks while value marginally outperformed growth. All ten sectors of the Russell 1000 Growth Index posted positive returns for the period with Utilities, Telecommunications and Materials leading the way. The Fund's out-performance during the period was primarily due to strong stock selection, which added value in Financials, Health Care and Consumer Discretionary. Within these sectors, stock selection within Banks, Pharmaceuticals and Media all helped boost returns. In each of these industries, we have been able to find attractive banks and media companies that stand to benefit from the recovery in the economic cycle and invest in pharmaceutical companies with solid product cycles. In keeping with the investment approach of the Fund, which is to invest in sectors that have the potential to outperform the market long-term, the Fund's significant underweight position in Consumer Staples, a defensive sector, significantly added to overall performance. Three top contributors to performance were Countrywide Financial (Financials), eBay (Retail) and Guidant (Health Care Equipment). As of the end of the period, all three stocks were held in the portfolio. Partially offsetting these results was weaker stock selection within Technology, excluding a few successes, and Industrials. At the margin, the Fund's underweight position in Telecommunications, a strong performer, and Utilities, a defensive sector, detracted from performance. Three detractors from performance were Schering-Plough (Pharmaceuticals), CVS (Consumer Staples), and Samsung (Technology). The pharmaceutical industry is under pressure from both Washington and from the pending expiration of several of the larger companies' patented blockbuster drugs. Schering-Plough specifically is undergoing competitive pressures across several key drug franchises. We were concerned about the increased level of competition from the food and discount retailers on CVS. At Samsung, we were concerned about the pricing of global memory products coupled with currency movements. All three stocks were eliminated from the portfolio as of period end. The portfolio is well positioned to benefit from acceleration in worldwide economic growth, which we expect to see over the next twelve months. WHAT IS YOUR OUTLOOK? The key to a sustained recovery is that the current upswing broadens. The consumption environment will be sound next year, bolstered by more jobs, tax cuts and an improving net worth position of households. The outlook for capital spending is even better. After more than two years of downsizing, corporations are faced with an aging capital stock and will use the continued profits expansion to upgrade their investments, especially in the technology area. We expect capital spending to emerge as a new driver of growth, outpacing consumption spending for the first time in several years. 14 The Hartford Growth Opportunities Fund (subadvised by Wellington Management Company, LLP) PERFORMANCE OVERVIEW(4,6) 10/31/93 - 10/31/03 Growth of a $10,000 investment in Class A which includes Sales Charge (LINE GRAPH)
GROWTH OPPORTUNITIES FUND RUSSELL 3000 GROWTH INDEX ------------------------- ------------------------- 10/31/93 9450 10000 9105 9904 9402 10094 9640 10330 9696 10155 8951 9652 8686 9696 8451 9809 7855 9508 8010 9814 8696 10377 8749 10254 10/94 8759 10482 8461 10139 8631 10315 8513 10491 8739 10935 8996 11255 8948 11493 9368 11870 10243 12363 10902 12922 11037 12951 11392 13513 10/95 11003 13453 11172 13983 10831 14086 11035 14497 11521 14802 11442 14848 12014 15314 12347 15876 12139 15784 11046 14755 11489 15205 12540 16278 10/96 12583 16296 13180 17445 12691 17168 13329 18295 12586 18080 11710 17074 11823 18092 13137 19512 13680 20283 15065 22005 14591 20898 15366 21993 10/97 14689 21127 14568 21879 14435 22102 14216 22670 15482 24402 16271 25380 16371 25713 15977 24877 16831 26288 15986 25936 13046 21871 14067 23593 10/98 14729 25438 15285 27376 17174 29845 17708 31567 16338 30017 17198 31563 17210 31794 16753 30894 17975 33016 17939 31970 18253 32366 18336 31774 10/99 19659 34062 21943 36017 26391 39939 26040 38174 33693 40560 30554 42855 27950 40652 26237 38502 30225 41555 29274 39694 33254 43325 33283 39357 10/00 30393 37401 24552 31802 27307 30985 26824 33150 23368 27598 20774 24631 22734 27739 22535 27409 22488 26880 21958 26095 20471 23995 17309 21499 10/01 18189 22686 20016 24846 20724 24903 20504 24432 19270 23379 20284 24268 19280 22387 19031 21789 16897 19785 15242 18562 14878 18614 13692 16719 10/02 14649 18209 15979 19248 14830 17918 14629 17479 14429 17374 14830 17694 16180 19025 17433 20050 17940 20333 18112 20910 18926 21473 18677 21219 10/03 20332 22459
--- GROWTH OPPORTUNITIES FUND --- RUSSELL 3000 GROWTH INDEX $9,450 starting value $10,000 starting value $20,332 ending value $22,459 ending value
PORTFOLIO MANAGER MICHAEL T. CARMEN, CFA Senior Vice President, Partner AVERAGE ANNUAL TOTAL RETURNS(4,5) (as of 10/31/03)
INCEPTION 1 5 10 SINCE DATE YEAR YEAR YEAR INCEPTION -------------------------------------------------------------------- Growth Opp A# 3/31/1963 38.80% 6.66% 7.96% 12.82% -------------------------------------------------------------------- Growth Opp A## 3/31/1963 31.17% 5.46% 7.35% 12.67% -------------------------------------------------------------------- Growth Opp B# 11/14/1994 37.93% 5.91% NA* NA* -------------------------------------------------------------------- Growth Opp B## 11/14/1994 32.93% 5.73% NA* NA* -------------------------------------------------------------------- Growth Opp C# 11/14/1994 38.03% 5.92% NA 9.23% -------------------------------------------------------------------- Growth Opp C## 11/14/1994 35.65% 5.55% NA 9.10% -------------------------------------------------------------------- Growth Opp H# 11/14/1994 38.31% 5.98% NA* NA* -------------------------------------------------------------------- Growth Opp H## 11/14/1994 34.31% 5.79% NA* NA* -------------------------------------------------------------------- Growth Opp L# 3/31/1963 39.34% 6.77% 8.02% 12.84% -------------------------------------------------------------------- Growth Opp L## 3/31/1963 32.75% 5.74% 7.49% 12.70% -------------------------------------------------------------------- Growth Opp M# 11/14/1994 38.36% 5.98% NA* NA* -------------------------------------------------------------------- Growth Opp M## 11/14/1994 34.36% 5.79% NA* NA* -------------------------------------------------------------------- Growth Opp N# 11/14/1994 38.36% 5.98% NA 9.27% -------------------------------------------------------------------- Growth Opp N## 11/14/1994 37.36% 5.98% NA 9.27% -------------------------------------------------------------------- Growth Opp Y# 2/19/2002 39.54% NA NA 3.16% -------------------------------------------------------------------- Growth Opp Z# 3/1/1996 39.70% 7.11% NA 8.36%
# Without sales charge ## With sales charge NA Not Applicable * 10 year and inception returns are not applicable for Classes B, H and M because after 8 years Class B converts to Class A and Classes H and M convert to Class L. PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS. Please see page 1 for important additional information including inception dates and expenses. -------------------------------------------------------------------------------- HOW DID THE FUND PERFORM? The Hartford Growth Opportunities Fund Class A, before sales charge, returned 38.80% for the twelve-month period ended October 31, 2003. The Fund outperformed the Russell 3000 Growth Index, which returned 23.36%, and the Lipper Multi-Cap Growth Mutual Fund Average, which returned 28.3% over the same period. WHY DID THE FUND PERFORM THIS WAY? Small- and mid-capitalization stocks were "the place to be" in the US equity markets, as these stocks handily outperformed larger cap stocks and posted strong absolute returns. Boosted by improving news on the economic front and earnings comparisons that were beginning to look more compelling, investors continued to bid up US equities through the end of October, especially small- and mid-cap stocks. The stagnant labor markets continued to be a source of concern. Much debate was centered on whether the snapback from the March lows was "too far, too fast" for many stocks, especially Information Technology names, but the bears lost to the bulls in this debate, at least for now. The two areas that appeared to be showing the most robust recovery, PCs and Wireless, ignited the spark of investor sentiment elsewhere in the sector. Simply put, investors were banking on a stronger economy to eventually lead to an increase in capital investment. Since the second quarter of 2003, lower quality and/or high beta names have attracted the most investor interest. The Fund was well served by our higher above-index exposure to both small- and mid-cap companies. In addition, our outperformance can also be attributed to strong relative stock selection across all but a couple of sectors. Health Care, Consumer Discretionary, Industrials were the areas in which our investments excelled the most. Only within Information Technology were we disappointed with our stock selection and low relative exposure. However, we can live with this result as it was a reflection of our aversion to holding some of the more speculative, high beta names in the universe, which tended to do well during the period. For the twelve-month period, the greatest contributors to absolute Fund returns were Cendant (Industrials), American Tower (Telecommunications), and St. Jude Medical (Health Care). The stock of global business provider Cendant gained on continued strength in real estate, improvement in travel services, and progress with its Avis/Budget integration. The largest detractors from absolute Fund returns were Nokia (Information Technology), Schering-Plough (Health Care), and NDC Health (Health Care), all of which were eliminated from the portfolio prior to period end. Investor optimism surrounding the economy and the equity markets has mostly taken uniform shape. Tax cuts, a weaker dollar, sustained productivity, and healthier balance sheets all bode well for corporate profits. As the growth trajectory continues, we will continue to look for improved corporate spending and employment trends. Entering the remainder of 2003 and looking to 2004, the Fund's Consumer Discretionary position is significantly overweight relative to the benchmark; we continue to seek companies that we consider market share gainers. In other areas of the growth universe, the Fund's overweight to the Telecommunications Services sector is a partial offset to the underweight to the Information Technology sector, where we feel valuations continue to be stretched. WHAT IS YOUR OUTLOOK? The performance of the equity markets over the past year suggests that investors are ascribing a high probability to the emergence of an economic recovery in the not-so-distant future. Although the stage appears to be set for a rebound, direct evidence of a recovery has been slow in coming. Productivity gains, improved financial flexibility, and a weaker US dollar have only just started to positively influence corporate earnings. More significant and sustained increases in profits are likely necessary to impact capital spending and employment trends in a manner that allows for a sustained, moderate recovery. Tax cuts and low interest rates have provided a positive backdrop for an economic recovery, but higher fiscal deficits and rising interest rates could cause this safety net to be removed before the economy lands on its feet. With this in mind, we continue to focus on stocks that can appreciate in the face of shifting economic winds. 15 The Hartford High Yield Fund (subadvised by Hartford Investment Management Company) PERFORMANCE OVERVIEW(3) 9/30/98 - 10/31/03 Growth of a $10,000 investment in Class A which includes Sales Charge (LINE GRAPH)
LEHMBROTHERS CORPORATE HIGH YIELD HIGH YIELD FUND INDEX --------------- --------------------------------- 9/30/98 9550 10000 10/98 9529 9795 9857 10201 9869 10213 10017 10364 10008 10303 10138 10401 10326 10602 10124 10459 10114 10437 10103 10479 10027 10363 9987 10288 10/99 10040 10220 10168 10341 10211 10457 10120 10412 10106 10431 10010 10212 10049 10229 9913 10123 10173 10330 10280 10408 10424 10479 10359 10388 10/00 10175 10056 9921 9657 10274 9844 10957 10581 11014 10722 10764 10469 10624 10339 10689 10525 10339 10230 10497 10381 10586 10503 9961 9797 10/01 10358 10039 10686 10406 10570 10363 10464 10436 10109 10290 10215 10538 10314 10702 10209 10646 9641 9862 9193 9431 9308 9700 9076 9572 10/02 9097 9489 9660 10077 9759 10218 10006 10558 10197 10688 10377 10996 10921 11648 11103 11768 11332 12107 11054 11974 11155 12112 11501 12442 10/03 11707 12694
--- HIGH YIELD FUND --- LEHMAN BROTHERS CORPORATE HIGH YIELD INDEX $9,550 starting value $10,000 starting value $11,707 ending value $12,694 ending value
AVERAGE ANNUAL TOTAL RETURNS(2) (as of 10/31/03)
INCEPTION SINCE DATE 1 YEAR 5 YEAR INCEPTION ------------------------------------------------------------ High Yield A# 9/30/1998 28.69% 4.21% 4.09% ------------------------------------------------------------ High Yield A## 9/30/1998 22.85% 3.25% 3.15% ------------------------------------------------------------ High Yield B# 9/30/1998 27.83% 3.48% 3.36% ------------------------------------------------------------ High Yield B## 9/30/1998 22.83% 3.20% 3.22% ------------------------------------------------------------ High Yield C# 9/30/1998 27.84% 3.50% 3.38% ------------------------------------------------------------ High Yield C## 9/30/1998 25.56% 3.30% 3.18% ------------------------------------------------------------ High Yield Y# 9/30/1998 29.27% 4.62% 4.49% ------------------------------------------------------------
# Without sales charge ## With sales charge PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS. Please see page 1 for important additional information including inception dates and expenses. PORTFOLIO MANAGERS DAVID HILLMEYER, CFA Vice President CHRISTINE MOZONSKI, CFA Vice President -------------------------------------------------------------------------------- HOW DID THE FUND PERFORM? For the one year period ended October 31, 2003, The Hartford High Yield Fund Class A placed in the 2nd quartile with a total return, before sales charge, of 28.69% verses the return of 33.77% for the Lehman Brothers Corporate High Yield Index and the return of 29.21% for the Lipper peer group. The primary objective of the Hartford High Yield Fund is to provide high current income by investing in non-investment grade debt securities. Growth of capital is a secondary objective. As of October 31, 2003, the SEC yield for this Fund's Class A shares is 5.63%. WHY DID THE FUND PERFORM THIS WAY? While the Fund's performance suffered somewhat recently due to issue selection in long-dated securities and holdings in the Chemical sector, performance over the past year has been strong. The High Yield sector posted tremendous returns in the first couple of months this year as we experienced improvement in fundamentals and increased demand as prices responded favorably to corporate de-leveraging. "CCC"-rated issuers significantly outperformed "BB"-rated securities as investors continued to reach for yield. The Utility and Technology sectors led returns, while the consumer-related sectors, such as Gaming, Lodging and Automotive, underperformed the broader market. The majority of the underperformance within those consumer-related sectors was due to outright low yields in a bull market rally and back-up in Treasury rates. The Fund benefited from exposure to the Technology and Wireline sectors as they were major providers of return, supplemented by the underweight position in the Gaming and Textile sectors. WHAT IS YOUR OUTLOOK? The market technicals, which include new issue supply and cash flows within the high yield retail mutual fund universe, have been a driving force behind recent returns. Although we have witnessed fundamental improvement across many different industries, we have yet to realize significant restoration in revenue growth. Much of today's profitability has come through cost cutting rather than top-line growth. We are encouraged by the most recent quarterly numbers for the Standard and Poor's 500 companies which showed that corporate revenue was beginning to improve. In addition, as long as the market continues to observe a favorable technical environment, we believe the high yield market will perform well relative to other fixed income asset classes. If high yield managers were to lose market share to equity investors in terms of cash flows, we would likely see the lower rated securities begin to underperform. We anticipate maintaining the Fund's emphasis on industries poised to lead the US economy toward higher growth, which include technology and basic industry cyclicals. We continue to find value in the Paper, Lodging, Technology and Construction Machinery sectors. The Fund remains overweight to Lodging because of improving fundamentals and companies discussing a more favorable operating environment for the sector, which includes indications the business traveler is returning. The paper sector continues to be represented by an overweight, with a focus on those companies that would enjoy significant operating leverage from a declining dollar and are not solely dependent upon the lumber business. Furthermore, the paper sector remains in its cyclical trough; however, we are beginning to see some signs that this trend could reverse. We are also overweight to the Technology sector but valuations have led us to realize some gains in the sector. The recent improvement in the Capital Goods sector is leading us to maintain an overweight position to the Construction Machinery sector. 16 The Hartford Income Fund (subadvised by Hartford Investment Management Company) PERFORMANCE OVERVIEW(3) 10/31/02 - 10/31/03 Growth of a $10,000 investment in Class A which includes Sales Charge (LINE GRAPH)
LEHMAN BROTHERS U.S. AGGREGATE BOND INCOME FUND INDEX ----------- ----------------------------------- 10/31/02 9550 10000 9663 9997 9821 10204 9885 10213 10046 10354 10100 10346 10316 10432 10461 10626 10542 10604 10195 10248 10274 10316 10564 10589 10/03 10581 10491
--- INCOME FUND --- LEHMAN BROTHERS U.S. AGGREGATE BOND INDEX $9,550 starting value $10,000 starting value $10,581 ending value $10,491 ending value
AVERAGE ANNUAL TOTAL RETURNS(2) (as of 10/31/03)
INCEPTION DATE 1 YEAR SINCE INCEPTION ---------------------------------------------------------- Income A# 10/31/2002 10.79% 10.79% ---------------------------------------------------------- Income A## 10/31/2002 5.82% 5.82% ---------------------------------------------------------- Income B# 10/31/2002 10.01% 10.01% ---------------------------------------------------------- Income B## 10/31/2002 5.01% 5.01% ---------------------------------------------------------- Income C# 10/31/2002 10.22% 10.22% ---------------------------------------------------------- Income C## 10/31/2002 8.12% 9.12% ----------------------------------------------------------
# Without sales charge ## With sales charge PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS. Please see page 1 for important additional information including inception dates and expenses. PORTFOLIO MANAGERS CHRISTINE MOZONSKI, CFA Vice President WILLIAM DAVISON, CFA Managing Director -------------------------------------------------------------------------------- HOW DID THE FUND PERFORM? For the one year period ended October 31, 2003, The Hartford Income Fund Class A placed in the 2nd quartile with a total return, before sales charge, of 10.79% versus the 10.41% for the Lipper peer group and a return of 4.91% for the Lehman Brothers U.S. Aggregate Bond Index. The primary objective of the Hartford Income Fund is to provide a high level of current income. Capital appreciation is a secondary objective. As of October 31, 2003, the SEC yield for this Fund's Class A shares is 4.54%. WHY DID THE FUND PERFORM THIS WAY? Throughout the past year, the Fund has benefited from its overweight in the Industrial sector and security selection in Treasury Inflation Protected Securities (TIPS) as they have been major providers of income. Strong performance can also be attributed to our maintaining the credit barbell strategy with 50% of the Fund in "AAA"-rated securities and 34% of the portfolio in below investment grade securities. The credit barbell strategy allows the Fund to pick up yield through an allocation to high yield bonds, while maintaining an overall "A" credit rating. The Fund's overweight to high yield bonds has contributed positively to performance. Corporate credit prices continued to improve over the past couple of months as the market anticipated an economic recovery. We continue to believe that the balance sheet repair taking place in the credit markets will benefit bond prices of such issuers. We recently reduced our cash position as we found attractive yield opportunities for the Fund. We also brought down our non-dollar position last quarter since we were concerned that the dollar was firming and could rebound from prior lows. Toward the end of September, the uncertainty was behind us and we put the non- dollar position back on. Yields in Australia still provide an attractive pick up over comparable Treasuries. The Fund's mortgage position was increased with the expectation that we were in a trading range from which mortgages should benefit. WHAT IS YOUR OUTLOOK? Some of the anxiety surrounding the war with Iraq may be over, but uncertainty about the US economy remains. While the credit market continues to struggle with questionable accounting practices, excess capacity and limited pricing power, the strong technical picture has helped as issuer specific problems are failing to pull down entire sectors as we experienced in 2002. Despite these problems, balance sheet repair continues, resulting in improved credit metrics and more stability of ratings. Our theme remains to allocate to lower-rated credits. Going forward, we expect the economy to continue to grow and interest rates to rise slightly from here for the balance of the year. We are closely watching durable goods orders and unemployment claims as they tend to be leading indicators that business spending is increasing and that the economy is turning around. The portfolio is positioned for this scenario with exposure to corporates and high yield. 17 The Hartford Inflation Plus Fund (subadvised by Hartford Investment Management Company) PERFORMANCE OVERVIEW(3) 10/31/02 - 10/31/03 Growth of a $10,000 investment in Class A which includes Sales Charge (LINE GRAPH)
INFLATION PLUS FUND LEHMAN BROTHERS U.S. TIPS INDEX ------------------- ------------------------------- 10/31/02 9550 10000 9527 9993 9841 10329 9889 10406 10244 10796 10082 10622 10036 10594 10507 11096 10406 10983 9920 10476 10071 10663 10389 11016 10/03 10411 11075
--- INFLATION PLUS FUND --- LEHMAN BROTHERS U.S. TIPS INDEX $9,550 starting value $10,000 starting value $10,411 ending value $11,075 ending value
AVERAGE ANNUAL RETURNS(2) (as of 10/31/03)
INCEPTION DATE 1 YEAR SINCE INCEPTION ------------------------------------------------------------------ Inflation Plus A# 10/31/2002 9.02% 9.02% ------------------------------------------------------------------ Inflation Plus A## 10/31/2002 4.13% 4.13% ------------------------------------------------------------------ Inflation Plus B# 10/31/2002 8.41% 8.41% ------------------------------------------------------------------ Inflation Plus B## 10/31/2002 3.41% 3.41% ------------------------------------------------------------------ Inflation Plus C# 10/31/2002 8.31% 8.31% ------------------------------------------------------------------ Inflation Plus C## 10/31/2002 6.23% 7.24% ------------------------------------------------------------------
# Without sales charge ## With sales charge PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS. Please see page 1 for important additional information including inception dates and expenses. PORTFOLIO MANAGERS JIM CONNOLLY, CFA Vice President WILLIAM DAVISON, CFA Managing Director -------------------------------------------------------------------------------- HOW DID THE FUND PERFORM? For the one year period ended October 31, 2003, The Hartford Inflation Plus Fund Class A placed in the 4th quartile with a total return, before sales charge, of 9.02% versus a return of 10.03% for the Lipper peer group and a return of 10.75% for the Lehman Brothers U.S. TIPS Index. WHY DID THE FUND PERFORM THIS WAY? Over the past year, we positioned the Fund defensively to protect against a stronger economy and rising real rates. This view was early, as real yields did not increase, even though traditional treasury yields have risen more dramatically. On a comparable interest rate risk basis, the shorter maturity Treasury Inflation Protected Securities (TIPS) performed the best during the middle of this year. This being the case, the Fund's underweight position in shorter maturities during the same time period also was a drag on performance. Another factor, that hindered performance was our holdings in floating rate securities that we added a few months after the Fund's inception, when we saw value in its diversification benefits and its similar resetting behavior to TIPS. While this allocation benefited the Fund early in the year, providing a positive return, overall, our underweight to TIPS versus the index hurt the Fund as floating rate securities have generally underperformed TIPS. As the Fund continued its strong growth in assets up to $371 million as of 10/31/03, we were able to allocate across the entire TIPS market making modest tactical changes vis-a-vis these allocations to take advantage of market opportunities. WHAT IS YOUR OUTLOOK? Interest rates on US Treasuries fluctuated early in the year in response to shifting sentiments about the economy and the war. Increases in the Consumer Price Index had been driven largely by increased energy and food costs along with the continuing trend of rising services costs. The back up in yields, which began following the Fed easing at the end of June, continued during the third quarter. Given our view that the Fed will be on hold for a sustained period, we will continue to look for opportunities to take advantage of what remains a relatively steep yield curve in the front end. As evidenced by the strong market interest in the recent July and October 10 year auctions, the TIPS market continues to grow. As of the end of October, the US TIPS market stood at roughly $176 billion. Generally, we maintain an upbeat view of TIPS versus nominal Treasuries over a long-term horizon. Looking ahead, TIPS are expected to have positive inflation accrual until December when historically the accrual tends to decrease. The market inflation expectation, which is the difference between Treasuries and TIPS, increased throughout the past couple of months as nominal rates increased and real rates declined or were unchanged. We expect to remain defensive as we continue to see signs of a strengthening economy. With economic fundamentals firming, we are concerned that real rates may continue to rise and are positioning the portfolio accordingly. 18 The Hartford International Capital Appreciation Fund (subadvised by Wellington Management Company, LLP) PERFORMANCE OVERVIEW(3) 4/30/01 - 10/31/03 Growth of a $10,000 investment in Class A which includes Sales Charge (LINE GRAPH)
INTERNATIONAL CAPITAL APPRECIATION FUND MSCI EAFE ---------------------------------- --------- 4/30/01 9450 10000 8836 9655 8411 9264 8297 9096 7825 8868 6861 7971 10/01 7201 8175 7816 8477 8024 8528 7703 8076 7835 8133 8223 8616 8081 8639 8148 8756 7770 8411 7004 7582 6882 7566 6069 6756 10/02 6551 7120 7156 7443 6520 7194 6577 6894 6426 6736 6236 6609 6993 7265 7608 7711 7798 7902 8034 8095 8384 8291 8404 8548 10/03 9104 9082
--- INTERNATIONAL CAP APP FUND --- MSCI EAFE $9,450 starting value $10,000 starting value $9,104 ending value $9,082 ending value
AVERAGE ANNUAL TOTAL RETURNS(2) (as of 10/31/03)
INCEPTION DATE 1 YEAR SINCE INCEPTION ----------------------------------------------------------------- Int'l Cap App A# 4/30/2001 38.95% -1.49% ----------------------------------------------------------------- Int'l Cap App A## 4/30/2001 31.37% -3.68% ----------------------------------------------------------------- Int'l Cap App B# 4/30/2001 37.90% -2.19% ----------------------------------------------------------------- Int'l Cap App B## 4/30/2001 32.90% -3.37% ----------------------------------------------------------------- Int'l Cap App C# 4/30/2001 37.90% -2.19% ----------------------------------------------------------------- Int'l Cap App C## 4/30/2001 35.52% -2.57% ----------------------------------------------------------------- Int'l Cap App Y# 4/30/2001 39.57% -1.04% -----------------------------------------------------------------
# Without sales charge ## With sales charge PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS. Please see page 1 for important additional information including inception dates and expenses. PORTFOLIO MANAGER ANDREW S. OFFIT, CFA Senior Vice President, Partner -------------------------------------------------------------------------------- HOW DID THE FUND PERFORM? The Hartford International Capital Appreciation Fund Class A, before sales charge, returned 38.95% for the twelve-month period ended October 31, 2003. The Fund outperformed its MSCI EAFE benchmark, which returned 27.57%, as well as its Lipper International Average peer group, which returned 24.5% for the period. WHY DID THE FUND PERFORM THIS WAY? In spite of strong international equity markets characterized by sector rotation swings, the Fund was still able to outperform by continuing to own true growth stocks that had improving fundamentals or intact prospects. In general, non-US equity markets continued their second quarter rally through the end of the October, returning 27.57% as measured by the EAFE index in US dollars. However, a significant component of this return can be attributed to the continued weakening of the US dollar against most major currencies as the EAFE return measured in local currency was only 13%. In US dollar-terms, Emerging Markets and Pacific Basin ex Japan equities were particularly strong, returning 49% and 37%, respectively, while Japan was almost as impressive, rising 34% during the period. Developed European markets were less robust, but still had positive results, gaining approximately 27%. Within the international markets, Information Technology was the clearest beneficiary of increased investor risk appetite as the sector stormed to a 44% return during the period. Consumer Staples, typically a more defensive sector, was the worst performer returning just over 11%. There were several factors that contributed to our outperformance during this period. Our significant exposure to Emerging Markets names, which were not held by our index, had a positive influence on relative returns. The Fund also significantly benefited from the combination of an overweight position and superior stock selection within Information Technology. The three largest contributors to absolute returns were all from this sector: Alcatel, the French communications and equipment company; Nortel Networks, the Canadian communications and equipment company; and Yahoo Japan, the Japanese Internet and software company. Additionally, our Health Care and Consumer Discretionary names also paid off handsomely during the period, but to a lesser degree. Somewhat offsetting the Fund's strong results was our underweight position within Financials, which performed well during the quarter. The names that were the greatest detractors during the period included Norwegian communications equipment provider Tandberg ASA and Japanese specialty retailer Fast Retailing. Tandberg was sold from the portfolio, while we continued to believe in the Fast Retailing investment thesis. WHAT IS YOUR OUTLOOK? With rising Gross Domestic Product, rebounding commodity prices, improving business confidence and consumer sentiment, improving global credit growth and earnings upgrades in all regions, the long awaited global economic recovery is now in evidence around the globe. While equity markets have priced in significant economic growth already, we believe that conditions are ripe for an economic expansion to continue into the first half of 2004, with the growth picture continuing to be bolstered by the massive fiscal and monetary stimulus enacted by governments and central banks around the globe over the last several years. We continue to be positioned for economic growth and focused on companies that have improving prospects or where fundamentals are better than generally believed. For many of the companies we follow, time is on their side. With each passing quarter, business conditions slowly improve and comparisons get easier. 19 The Hartford International Opportunities Fund (subadvised by Wellington Management Company, LLP) PERFORMANCE OVERVIEW(3) 7/22/96 - 10/31/03 Growth of a $10,000 investment in Class A which includes Sales Charge (LINE GRAPH)
INTERNATIONAL OPPORTUNITIES MSCI AC WORLD FREE EX US INDEX --------------------------- ------------------------------ 7/22/96 9450 10000 9469 9668 9507 9724 9658 9966 10/96 9686 9866 10131 10246 10220 10128 10114 9942 10172 10124 10172 10103 10115 10188 10706 10817 11162 11414 11487 11645 10723 10729 11276 11309 10/97 10483 10346 10349 10217 10305 10335 10451 10644 11123 11354 11620 11746 11864 11830 11932 11616 11951 11572 12059 11682 10344 10035 10022 9823 10/98 10675 10852 11288 11435 11595 11829 11936 11816 11663 11552 12287 12109 12745 12715 12209 12118 12781 12675 13103 12972 13112 13017 13191 13105 10/99 13630 13593 14440 14136 16131 15485 15273 14644 16308 15040 16225 15606 15378 14735 14782 14358 15335 14969 14873 14378 15083 14556 14327 13749 10/00 13687 13312 13103 12715 13631 13149 13708 13346 12629 12289 11759 11421 12617 12197 12155 11861 11782 11406 11517 11152 11186 10875 10030 9721 10/01 10283 9994 10868 10451 11077 10585 10548 10132 10526 10205 11088 10802 11021 10829 11131 10947 10614 10474 9512 9454 9368 9454 8233 8452 10/02 8851 8906 9225 9334 8839 9033 8432 8716 8167 8539 7991 8373 8718 9180 9214 9765 9346 10036 9622 10302 9964 10609 10019 10907 10/03 10647 11613
--- INTERNATIONAL OPPORTUNITIES --- MSCI AC WORLD FREE EX US INDEX $9,450 starting value $10,000 starting value $10,647 ending value $11,613 ending value
AVERAGE ANNUAL TOTAL RETURNS(1,2) (as of 10/31/03)
INCEPTION SINCE DATE 1 YEAR 5 YEAR INCEPTION ----------------------------------------------------------- Int'l Opp A# 7/22/1996 20.30% -0.06% 1.65% ----------------------------------------------------------- Int'l Opp A## 7/22/1996 13.65% -1.18% 0.87% ----------------------------------------------------------- Int'l Opp B# 7/22/1996 19.58% -0.81% 0.92% ----------------------------------------------------------- Int'l Opp B## 7/22/1996 14.58% -1.16% 0.92% ----------------------------------------------------------- Int'l Opp C# 7/22/1996 19.43% -0.85% 0.89% ----------------------------------------------------------- Int'l Opp C## 7/22/1996 17.24% -1.05% 0.75% ----------------------------------------------------------- Int'l Opp Y# 7/22/1996 21.00% 0.35% 2.09% -----------------------------------------------------------
# Without sales charge ## With sales charge PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS. Please see page 1 for important additional information including inception dates and expenses. PORTFOLIO MANAGER TROND SKRAMSTAD Senior Vice President, Partner, Director of Global Equity Strategies -------------------------------------------------------------------------------- HOW DID THE FUND PERFORM? The Hartford International Opportunities Fund returned 20.30% for the twelve-month period ended October 31, 2003. The Fund's return trailed both the 30.40% return for the MSCI AC World Free ex US Index, and the Lipper International Average of 24.5%. WHY DID THE FUND PERFORM THIS WAY? A global recovery is here. International equity markets climbed steadily over the past twelve months, led by sharp rallies in the spring and fall of 2003 before giving back some of the gains towards the end of the third quarter. Most equity markets rose as the global economy continued to recover, with observable improvements in Japan and the US, and continued strong growth in China. European equities lagged, trailing the Asian markets, though signs were mounting that recovery is spreading to that region. Our underperformance for the period can be linked to four main drivers. First, we maintained an underweight position to Materials, one of the best performing sectors during the period. In addition, the stocks that we did own within Materials underperformed the sector average. Second, the average cap size of our holdings was higher than that of the index, which hurt our relative performance as small- and mid-cap securities dramatically outpaced larger-caps. The third factor was that our stock selection within Japan and Europe was disappointing across a variety of sectors. Lastly, our average cash balance of over 5% of assets acted as a drag on total fund performance as global markets appreciated significantly during the period. However, there were some bright spots for the Fund during the period as our stock selection within Information Technology was quite strong, highlighted by our holdings in ASML (Netherlands), Samsung Electronics (South Korea), and Nortel Networks (Canada). Furthermore, some of our top-down country allocation decisions also added value across the portfolio as our relatively high exposure to emerging markets and low weighting of the United Kingdom paid off. Overall, we were not pleased with our results but are confident that our long-term holdings will rebound as investor sentiment shifts towards favoring strong, high-quality companies. WHAT IS YOUR OUTLOOK? With rising Gross Domestic Product, rebounding commodity prices, improving business confidence and consumer sentiment, improving global credit growth and earnings upgrades in all regions, the long awaited global economic recovery is now evidenced around the world. While equity markets have priced in significant economic growth already, we believe that conditions are ripe for expansion to continue into the first half of 2004, with the growth picture continuing to be bolstered by the massive fiscal and monetary stimulus enacted by governments and central banks around the globe over the last several years. China has positively impacted the world's economic growth this year, helping drive global demand for both raw materials and capital goods. The rest of Asia ex-Japan finds itself at the end of a multi-year adjustment process and is poised to move ahead once again as the region no longer relies upon the US as its main growth driver. Instead, the Asian consumer is becoming an increasingly important engine of growth. The Japanese recovery appears to be legitimate as corporations have lowered their debt and overcapacity and can now focus on product leadership. Europe lagged but is expected to recover by 2004. The economic impact of the appreciating euro has adversely slowed growth, but monetary and fiscal stimulus should help drive a cyclical economic upturn. 20 The Hartford International Small Company Fund (subadvised by Wellington Management Company, LLP) PERFORMANCE OVERVIEW(3) 4/30/01 - 10/31/03 Growth of a $10,000 investment in Class A which includes Sales Charge (LINE GRAPH)
INTERNATIONAL SMALL COMPANY FUND CITIGROUP BROAD MARKET EURO-PACIFIC -------------------------------- ----------------------------------- 4/30/01 9450 10000 9781 10051 9205 9730 9044 9365 9044 9388 7825 8233 10/01 8335 8554 8901 8875 8713 8758 8580 8585 8561 8792 8968 9305 9346 9565 9619 9980 9506 9671 8920 9000 8713 8917 7833 8188 10/02 7909 8117 8155 8408 8331 8345 8142 8223 8123 8207 8094 8157 9098 8834 9827 9576 9960 10030 10357 10357 10869 11015 11570 11642 10/03 12242 12443
--- INTERNATIONAL SMALL CO FUND --- CITIGROUP BROAD MARKET EURO-PACIFIC <$2B INDEX $9,450 starting value $10,000 starting value $12,242 ending value $12,443 ending value
AVERAGE ANNUAL TOTAL RETURNS(2) (as of 10/31/03)
INCEPTION DATE 1 YEAR SINCE INCEPTION ------------------------------------------------------------------ Int'l Small Co A# 4/30/2001 54.76% 10.86% ------------------------------------------------------------------ Int'l Small Co A## 4/30/2001 46.20% 8.40% ------------------------------------------------------------------ Int'l Small Co B# 4/30/2001 53.72% 10.40% ------------------------------------------------------------------ Int'l Small Co B## 4/30/2001 48.72% 9.37% ------------------------------------------------------------------ Int'l Small Co C# 4/30/2001 53.62% 10.06% ------------------------------------------------------------------ Int'l Small Co C## 4/30/2001 51.08% 9.62% ------------------------------------------------------------------ Int'l Small Co Y# 4/30/2001 55.47% 11.38% ------------------------------------------------------------------
# Without sales charge ## With sales charge PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS. Please see page 1 for important additional information including inception dates and expenses. PORTFOLIO MANAGER EDWARD L. MAKIN Vice President -------------------------------------------------------------------------------- HOW DID THE FUND PERFORM? The Hartford International Small Company Fund Class A, before sales charge, returned 54.76% for the twelve-month period ended October 31, 2003. The Fund's return outperformed both the 53.29% return for the Citigroup Broad Market Euro-Pacific <$2 billion Index, and the Lipper International Small Cap Average of 47.6%. WHY DID THE FUND PERFORM THIS WAY? The recovery in the equity markets seen in the first half of the year continued in the third quarter, spreading to Japan and much of Asia. Liquidity has increased significantly as institutional investors have returned to the equity markets in search of better returns, given historically low yields on bonds and cash. The corporate sector has been reporting profits inline with or ahead of market expectations, leading to a rebound in equity markets that has been marked by speculative behavior in a number of instances, with large movements concentrated in Cyclicals, Technology, Semiconductors, and Media names. Over the period, international small cap stocks outperformed international large cap stocks, with Citigroup Broad Market Euro-Pacific <$2 billion Index increasing 53.29% compared to the MSCI EAFE Index advance of 27.57%. All ten of the broad sectors in the Citigroup Broad Market Euro-Pacific <$2 billion Index posted positive returns ranging from 33% (Consumer Staples) to 94% (Telecommunication Services). Relative to its benchmark, performance for the Fund benefited from strong stock selection within the Information Technology, Consumer Discretionary, and Financials sectors. Stock selection within Telecommunication Services and Health Care detracted slightly from performance. From a country specific standpoint, the Fund's strong stock selection in the United Kingdom, South Korea, and France more than offset weak security selection in Japan. The top three contributing stocks to Fund performance were Clarins, a French personal products company; Informa Group, a media company located in the United Kingdom; and NDS Group, a UK software company. The three biggest detractors from performance were our holdings in BML and NIC Corporation, both Japanese health care providers, and Logicacmg, an information technology services company located in the United Kingdom. We have eliminated our positions in these three detractors. WHAT IS YOUR OUTLOOK? As the market has made a remarkable recovery since the first quarter lows, there are continuing clouds on the horizon such as uncertainty about the impact of recent currency moves (US dollar weakness and particularly the rise of the euro versus the yen) and huge debtor/creditor imbalances between the East and West. The greatest debate at the macro level now is whether low growth and low inflation fears are now overdone, and whether a threat of inflation is possible, given the huge monetary stimulus injected into the global (and particularly the US) economy over the past few years. This has been reflected in the huge rise in bond yields from their lows and will have implications for financial companies, housing prices, and the markets in general, so we have shifted to a more cautious outlook. While a global economic recovery seems real, driven by improving Gross Domestic Product growth in the US, it appears that some sectors in the small cap equity markets, like Technology may have incorporated much of this in their prices. In light of these developments, we have reduced our positions in these sectors. We continue to have a large overweight bet in Health Care, as we believe this group will show continued above-market growth. During the period, we took profits on a number of media names that enjoyed a good bounce but we still maintain a large exposure to this area. We remain significantly underweight relative to the benchmark in Materials and Utilities, while retaining overweight positions in Health Care, Consumer Staples, and Consumer Discretionary. At the regional level, we still have underweight positions in Real Estate and Construction outside North America, and overweight positions in North American Retailers and European Media stocks. Regionally, we retain a neutral position relative to the benchmark, inline with our long-term goal. 21 The Hartford MidCap Fund* (subadvised by Wellington Management Company, LLP) PERFORMANCE OVERVIEW(3) 12/31/97 - 10/31/03 Growth of a $10,000 investment in Class A which includes Sales Charge (LINE GRAPH)
MIDCAP FUND S & P MIDCAP 400 INDEX ----------- ---------------------- 12/31/97 9450 10000 9441 10074 9138 9883 9970 10701 10443 11184 10669 11389 10292 10876 10849 10945 10669 10520 8581 8562 9111 9361 10/98 9867 10198 10482 10707 11625 12000 11909 11533 11380 10929 12344 11235 13280 12120 13440 12174 14361 12824 13955 12552 13756 12123 13454 11748 10/99 14239 12349 14996 12989 17461 13767 17412 13379 20132 14316 21360 15514 20082 14975 19032 14785 20929 15003 21103 15240 23348 16942 23054 16827 10/00 22780 16256 20237 15029 21796 16179 22107 16539 20838 15595 19080 14436 20871 16026 21216 16399 21137 16334 20680 16090 19700 15564 17350 13628 10/01 18464 14230 19969 15289 20781 16078 20403 15996 20526 16015 21663 17160 21383 17080 21494 16791 20147 15562 18041 14054 17953 14124 16427 12987 10/02 17275 13550 18847 14334 17665 13745 17419 13344 17263 13026 17397 13136 18813 14089 20373 15256 20495 15449 20674 15998 21620 16724 21164 16468 10/03 22936 17697
--- MIDCAP FUND --- S & P MIDCAP 400 INDEX $9,450 starting value $10,000 starting value $22,936 ending value $17,697 ending value
AVERAGE ANNUAL TOTAL RETURNS(1,2) (as of 10/31/03)
INCEPTION DATE 1 YEAR 5 YEAR SINCE INCEPTION ------------------------------------------------------------------- MidCap A# 12/31/1997 32.77% 18.38% 16.39% ------------------------------------------------------------------- MidCap A## 12/31/1997 25.49% 17.04% 15.27% ------------------------------------------------------------------- MidCap B# 12/31/1997 31.82% 17.53% 15.57% ------------------------------------------------------------------- MidCap B## 12/31/1997 26.82% 17.32% 15.48% ------------------------------------------------------------------- MidCap C# 12/31/1997 31.93% 17.57% 15.61% ------------------------------------------------------------------- MidCap C## 12/31/1997 29.61% 17.34% 15.42% ------------------------------------------------------------------- MidCap Y# 12/31/1997 33.56% 18.95% 16.96% -------------------------------------------------------------------
# Without sales charge ## With sales charge PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS. Please see page 1 for important additional information including inception dates and expenses. *The Hartford Midcap Fund was closed to new investors as of the end of the day July 31,2003. Investors who already own shares of the Fund, and those with access to the Fund through wrap programs in connection with certain investment platforms, may purchase additional shares thereafter. PORTFOLIO MANAGER PHILLIP H. PERELMUTER Senior Vice President, Partner -------------------------------------------------------------------------------- HOW DID THE FUND PERFORM? The Hartford MidCap Fund Class A, before sales charge, returned 32.77% for the 12 month period ended October 31, 2003 outperforming both the S&P MidCap 400 Index return of 30.61% and Lipper Mid-Cap Core Average return of 30.9%. WHY DID THE FUND PERFORM THIS WAY? The US equity market rallied broadly during the period as a global recovery took shape, fueled by an accommodative mix of post-war relief, fiscal stimulus, and favorable monetary policy. Following the shape of a classic cyclical rally, small caps outperformed, followed by mid-caps and then large-caps. The Fund's out-performance relative to the index can be largely attributed to good stock selection across the majority of our sectors, as the aggregate impact of our sector bets was largely neutral. Security selection was strongest in the Telecommunications, Financials and Materials names. We did stumble a bit in terms of stock selection within the Consumer Staples and Consumer Discretionary sectors as a handful of our holdings reported disappointing earnings, thereby detracting from our index-relative results. Our low exposure to the three worst performing sectors in the index (Consumer Staples, Energy, and Materials) also contributed positively to Fund performance. In terms of individual companies, American Tower (Telecommunications), Countrywide Financial (Financials) and Millennium Pharmaceuticals (Health Care) were the three securities that contributed the most to portfolio performance on an absolute basis. American Tower was finally able to lay liquidity concerns to rest with the refinancing of their balance sheet while their core operations continued to deliver solid results. Countrywide Financial rose as investors began to recognize the value of the company's large servicing portfolio. Millennium benefited from a resurgence of optimism in biotechnology following evidence that new drug approvals from the FDA may be accelerating under new leadership. The securities that detracted the most from performance during the period were Pepsi Bottling Group (Consumer Staples), Investment Technology Group (Financials), and Newell Rubbermaid (Consumer Discretionary). Of these three securities, we continued to hold ITG at quarter-end but sold the other two positions from the portfolio. WHAT IS YOUR OUTLOOK? As we approach the end of 2003, investor optimism surrounding the economy and the equity markets has started to consolidate. Tax cuts, a weaker dollar, sustained productivity gains, and healthier balance sheets all bode well for corporate profits. As the economy continues to stabilize, we will look for improved corporate spending and employment trends as key gauges to determine the sustainability of the domestic recovery. At this juncture, we believe a sustainable up-trend will in fact unfold and support growth in 2004. 22 The Hartford MidCap Value Fund (subadvised by Wellington Management Company, LLP) PERFORMANCE OVERVIEW(3) 4/30/01 - 10/31/03 Growth of a $10,000 investment in Class A which includes Sales Charge (LINE GRAPH)
MIDCAP VALUE FUND RUSSELL 2500 VALUE INDEX ----------------- ------------------------ 4/30/01 9450 10000 9507 10307 9535 10406 9375 10336 9092 10247 7816 9110 10/01 8015 9305 8686 10021 9385 10592 9422 10689 9593 10822 10123 11492 10123 11689 9943 11497 9414 11091 8431 9808 8422 9861 7524 9054 10/02 7883 9184 8526 9853 8119 9546 7940 9258 7760 9030 7713 9092 8431 9916 9215 10833 9319 11027 9631 11506 10075 11968 10028 11883 10/03 10699 12791
--- MIDCAP VALUE FUND --- RUSSELL 2500 VALUE INDEX $9,450 starting value $10,000 starting value $10,699 ending value $12,791 ending value
AVERAGE ANNUAL TOTAL RETURNS(2) (as of 10/31/03)
INCEPTION DATE 1 YEAR SINCE INCEPTION ---------------------------------------------------------------- MidCap Value A# 4/30/2001 35.73% 5.06% ---------------------------------------------------------------- MidCap Value A## 4/30/2001 28.20% 2.73% ---------------------------------------------------------------- MidCap Value B# 4/30/2001 34.79% 4.32% ---------------------------------------------------------------- MidCap Value B## 4/30/2001 29.79% 3.19% ---------------------------------------------------------------- MidCap Value C# 4/30/2001 34.91% 4.36% ---------------------------------------------------------------- MidCap Value C## 4/30/2001 32.56% 3.94% ---------------------------------------------------------------- MidCap Value Y# 4/30/2001 36.59% 5.58% ----------------------------------------------------------------
# Without sales charge ## With sales charge PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS. Please see page 1 for important additional information including inception dates and expenses. PORTFOLIO MANAGER JAMES N. MORDY Senior Vice President, Partner -------------------------------------------------------------------------------- HOW DID THE FUND PERFORM? The Hartford MidCap Value Fund Class A, before sales charge, returned 35.73% for the 12-month period ended October 31, 2003. The Fund's return trailed the 39.28% return of the Russell 2500 Value, and modestly outperformed the Lipper Mid Cap Value Average of 34.7%. WHY DID THE FUND PERFORM THIS WAY? The overriding theme in the equity markets over the past twelve months was that investors once again became comfortable owning stocks with inherently greater levels of either business or financial risk. There were many factors behind this, including increased confidence in the economic recovery, improved corporate governance and accounting scrutiny, a narrowing of credit spreads, and a recognition that valuation disparity between "safer" stocks and "riskier" stocks had grown too large during the preceding year. The Fund's performance benefited from this trend as we have never been shy about taking on a manageable degree of business risk with our stocks as long as we feel we are getting more than compensated for it in the prices we pay. During the period, small-caps outperformed mid-caps, which in turn did better than large-caps. As the Fund has a somewhat higher average market cap than the benchmark, this latter trend worked against our relative performance. The Fund's underperformance relative to the market benchmark can be largely attributed to weak relative stock selection within the Materials and Health Care sectors. AK Steel and IMC Global were the Materials names that performed poorly, while our HMO names suffered a bit lately due to concern over the impact of unemployment on enrollment trends. The Fund was also hindered due to being overweight the Energy sector, which lagged all other sectors in the benchmark. Offsetting this weakness was exceptional stock performance in the Consumer Discretionary sector, the best relative group during the period as Harman International, United Global Communication and Rent-A-Center were among our top contributors. In addition, our overweight to Technology names and underweight within Financials also contributed positively to our relative results. The Fund continues to be positioned to benefit from the ongoing economic recovery, but with cyclical valuations having expanded so dramatically over the past two quarters, we are beginning to do a bit more hunting for bargains in more defensive sectors. WHAT IS YOUR OUTLOOK? We remain on track for Gross Domestic Product growth of 4% or greater as 2003 comes to a close and look for continued growth at a 3.5% pace in 2004-05. Consumers spent their tax refund checks during the third quarter, and will get even larger refunds from the IRS during first quarter of 2004. Businesses are starting to spend as profits have improved smartly. Inventories remain at very low levels and we look for restocking to provide some additional fuel to economic growth over the next few quarters. Recent evidence suggests the employment picture may have finally begun to improve as well. As we enter 2004, an election year, the current administration is confronting declining approval rates as violence in Iraq drags on and fiscal deficits balloon. If the dollar were to drop swiftly in response to these pressures, it could be quite problematic for our bond and stock markets. At present we do not view this as the most likely scenario. With economic growth continuing at a fairly robust clip over the next several quarters and no immediate prospects of rate increases from the Fed, stocks can continue to work higher, though we would concede there are fewer obvious bargains compared with earlier in the year. 23 The Hartford Short Duration Fund (subadvised by Hartford Investment Management Company) PERFORMANCE OVERVIEW(3) 10/31/02 - 10/31/03 Growth of a $10,000 investment in Class A which includes Sales Charge (LINE GRAPH)
LEHMAN BROTHERS U.S. SHORT DURATION FUND GOVERNMENT/CREDIT 1-5 YEAR INDEX ------------------- -------------------------------- 10/31/02 9700 10000 9676 9987 9829 10145 9842 10151 9944 10244 9962 10263 10022 10312 10130 10430 10143 10441 10008 10295 10013 10300 10186 10473 10/03 10134 10405
--- SHORT DURATION FUND --- LEHMAN BROTHERS U.S. GOVERNMENT/CREDIT $9,700 starting value 1-5 YEAR INDEX $10,134 ending value $10,000 starting value $10,405 ending value
AVERAGE ANNUAL TOTAL RETURNS(2) (as of 10/31/03)
INCEPTION DATE 1 YEAR SINCE INCEPTION ------------------------------------------------------------------ Short Duration A# 10/31/2002 4.48% 4.48% ------------------------------------------------------------------ Short Duration A## 10/31/2002 1.33% 1.33% ------------------------------------------------------------------ Short Duration B# 10/31/2002 3.77% 3.77% ------------------------------------------------------------------ Short Duration B## 10/31/2002 -1.23% -1.23% ------------------------------------------------------------------ Short Duration C# 10/31/2002 3.77% 3.77% ------------------------------------------------------------------ Short Duration C## 10/31/2002 1.73% 2.74% ------------------------------------------------------------------
# Without sales charge ## With sales charge PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS. Please see page 1 for important additional information including inception dates and expenses. PORTFOLIO MANAGER JIM CONNOLLY, CFA Vice President -------------------------------------------------------------------------------- HOW DID THE FUND PERFORM? For the one year period ended October 31, 2003, The Hartford Short Duration Fund Class A placed in the 2nd quartile with a total return, before sales charge, of 4.48% versus the 4.46% for the Lipper peer group and a return of 4.05% for the Lehman Brothers U.S. Government/Credit 1-5 Year Index. The primary objective of the Hartford Short Duration Fund is to provide a high level of income. As of October 31, 2003, the SEC yield for this Fund's Class A shares is 2.55%. WHY DID THE FUND PERFORM THIS WAY? The Fund's strong performance over the past year can be attributed to our overweight in the corporate sector, particularly in the industrial subsector, as it continues to perform well on both a yield and total return perspective. Our allocation to Treasury Inflation Protected Securities early this year also benefited the Fund as we capitalized on the strong seasonal inflation accrual levels. The Fund's short duration also contributed positively in the third quarter as interest rates rose. The demand for investment grade corporate paper remains strong as fundamentals continue to show signs of improvement. While we lowered our exposure to mortgage-backed securities during the year given the continued concerns of extension risk, our holdings in this sector contributed positively to yield over the past couple of months. Overall, we remain underweight to both US Treasuries and agencies as better risk and reward opportunities remain in other spread sectors. As the Fund continues to grow, we are selectively adding to existing positions in order to maintain current weightings where we see continued relative value opportunities. WHAT IS YOUR OUTLOOK? The back up in yields in the front end of the curve, which began following the Fed easing at the end of June, continued during the third quarter. This increase in interest rates could be attributed to the market's expectation for an accelerated economic recovery. However, the economic data released throughout September indicated that the economy is continuing to strengthen but at a slower pace than had been anticipated. The pricing of Fed Funds futures are now priced such that the Fed may begin tightening during the second quarter of next year. However, the expectation that the Fed will be on hold until at least that time has begun to tempt investors to purchase longer dated securities in order to take advantage of the higher yields and attractive breakevens. Given our view that the Fed will be on hold for a sustained period, we will continue to look for opportunities to take advantage of what remains a relatively steep yield curve in the front end. We will continue to look for opportunities to enhance the yield of this income driven fund by remaining focused, though selective, on the corporate sector, which continues to remain both fundamentally and technically favorable. Additionally, with interest rates remaining at these low levels, we will continue to monitor the Fund's mortgage position given the risks of duration extension. 24 The Hartford Small Company Fund (subadvised by Wellington Management Company, LLP) PERFORMANCE OVERVIEW(3) 7/22/96 - 10/31/03 Growth of a $10,000 investment in Class A which includes Sales Charge (LINE GRAPH)
SMALL COMPANY FUND RUSSELL 2000 GROWTH INDEX ------------------ ------------------------- 7/22/96 9450 10000 9422 8779 10263 9429 10915 9914 10/96 10612 9487 10839 9751 10783 9941 10773 10189 10602 9574 10057 8898 10117 8795 11208 10117 11866 10460 12442 10995 12734 11325 13824 12229 10/97 13259 11494 13027 11220 12862 11227 12545 11078 13793 12056 14343 12562 14534 12639 13825 11720 14027 11839 13536 10851 10226 8346 11112 9193 10/98 11997 9673 12808 10423 14207 11367 14827 11878 13365 10791 14465 11175 15649 12162 15979 12182 17250 12824 17229 12427 16983 11963 17324 12193 10/99 17922 12506 19961 13827 23534 16264 22845 16113 26856 19862 26453 17774 24062 15979 21374 14579 24391 16463 22432 15052 24211 16636 23153 15809 10/00 21722 14525 19018 11887 20446 12615 19540 13636 17379 11766 15876 10697 18038 12006 17802 12284 18079 12620 17098 11543 16376 10822 13792 9075 10/01 14911 9948 16339 10779 17208 11450 16935 11043 16139 10328 17318 11226 16884 10983 16237 10341 15107 9464 12660 8009 12412 8005 11903 7427 10/02 12337 7803 13095 8576 11951 7985 11629 7767 11393 7560 11790 7674 13045 8400 14498 9347 14958 9527 16026 10248 16820 10798 16200 10525 10/03 17740 11434
--- SMALL COMPANY FUND --- RUSSELL 2000 GROWTH INDEX $9,450 starting value $10,000 starting value $17,740 ending value $11,434 ending value
AVERAGE ANNUAL TOTAL RETURNS(1,2) (as of 10/31/03)
INCEPTION SINCE DATE 1 YEAR 5 YEAR INCEPTION ---------------------------------------------------------- Small Co A# 7/22/1996 43.81% 8.14% 9.04% ---------------------------------------------------------- Small Co A## 7/22/1996 35.87% 6.93% 8.20% ---------------------------------------------------------- Small Co B# 7/22/1996 42.81% 7.37% 8.29% ---------------------------------------------------------- Small Co B## 7/22/1996 37.81% 7.07% 8.29% ---------------------------------------------------------- Small Co C# 7/22/1996 42.77% 7.39% 8.31% ---------------------------------------------------------- Small Co C## 7/22/1996 40.34% 7.17% 8.16% ---------------------------------------------------------- Small Co Y# 7/22/1996 44.40% 8.65% 9.56% ----------------------------------------------------------
# Without sales charge ## With sales charge PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS. Please see page 1 for important additional information including inception dates and expenses. PORTFOLIO MANAGER STEVEN C. ANGELI, CFA Senior Vice President, Partner -------------------------------------------------------------------------------- HOW DID THE FUND PERFORM? The Hartford Small Company Fund Class A, before sales charge, returned 43.81% for the twelve-month period ended October 31, 2003. The Fund's return outperformed the 40.5% return of the Lipper Small Cap Growth average but underperformed the 46.56% return of the Russell 2000 Growth Index. WHY DID THE FUND PERFORM THIS WAY? With a 77% gain over the last twelve months, small cap Technology stocks remain at the top of their league -- the strongest performers in the entire stock market. Individual stock selection remains critical in our effort to outperform the benchmark, especially as the markets appear to be caught up in a tech-driven speculative frenzy. Our modest underperformance relative to the index was concentrated within the Health Care and Technology sectors. In terms of Health Care, we were most hurt by a handful of names such as Array Biopharma (Biotechnology), NDC Health Center (Healthcare Provider), Intermune (Biotechnology). Within Technology, our unwillingness to invest in names trading at unreasonable valuations proved detrimental to our relative results. On the positive side, our sector exposure added value due to our overweight of the three best performing areas: Telecommunications, Technology, and Health Care. The Fund also benefited from its investments within Telecommunications, as wireless telecommunication providers, American Tower and Crown Castle were two of the three top contributors to our performance. After the carnage of the telecom boom and bust, both companies remain dominant leaders that are de-leveraging their balance sheets with free cash flow while still growing their core businesses at over 12% annually. WHAT IS YOUR OUTLOOK? Undoubtedly, the US economy is undergoing a gradual recovery, characterized by strong consumer spending, high productivity, but zero job creation. We are surprised by the resiliency of the US consumer in the face of relatively high unemployment claims. However, strong productivity growth means better corporate profits, and ultimately higher capital spending and job formation. The portfolio is clearly positioned to benefit from an economic rebound, with an overweight position in the Consumer Discretionary sector as well as the Transportation sub-sector. We are discovering that many small companies, once devastated by the economic downturn, are showing signs of growth again, especially in the Industrial and Information Technology sectors. However, we remain less focused on sector allocation decisions, and more attentive to buying undiscovered companies with significant growth potential. 25 The Hartford SmallCap Growth Fund (subadvised by Wellington Management Company, LLP) PERFORMANCE OVERVIEW(4,6) 10/31/93 - 10/31/03 Growth of a $10,000 investment in Class A which includes Sales Charge (LINE GRAPH)
SMALLCAP GROWTH FUND RUSSELL 2000 GROWTH INDEX -------------------- ------------------------- 10/31/93 9450 10000 8704 9596 9143 9975 9347 10240 9173 10195 8635 9569 8483 9584 8168 9369 7671 8969 7638 9096 8105 9764 8331 9805 10/94 8546 9909 8331 9508 8487 9732 8413 9533 8806 9974 8969 10265 9121 10419 9173 10556 10007 11283 11253 12162 11371 12311 11979 12565 10/95 11512 11947 11783 12474 11571 12751 11377 12645 12131 13221 12434 13483 13577 14519 14242 15263 13312 14271 11959 12529 12987 13456 13876 14149 10/96 12890 13539 12886 13915 12372 14187 12181 14542 10715 13663 9773 12699 9534 12551 11325 14438 11598 14927 12279 15691 11962 16162 12763 17452 10/97 12177 16403 12220 16013 12560 16022 12142 15809 13584 17205 14456 17928 14565 18037 13819 16726 14378 16896 13217 15486 10328 11912 11043 13119 10/98 11763 13804 13248 14875 15053 16222 16123 16952 14082 15400 15100 15949 15663 17357 15776 17385 17962 18301 18194 17735 18618 17072 19491 17402 10/99 22368 17847 25145 19734 31827 23211 32445 22995 45304 28346 40537 25367 33941 22805 29227 20807 36222 23495 33536 21482 40184 23741 37910 22561 10/00 34466 20729 24544 16965 27386 18003 27909 19460 22666 16792 20254 15265 22096 17134 22077 17531 22918 18010 21245 16474 19852 15444 16160 12951 10/01 17796 14197 19811 15383 21369 16341 20666 15759 19517 14740 21531 16021 20609 15675 19165 14758 17379 13506 15022 11430 14946 11425 13702 10600 10/02 14794 11136 16457 12240 15155 11395 14652 11085 13987 10789 14148 10952 15488 11988 17312 13339 17759 13597 18937 14625 20258 15410 20267 15020 10/03 21768 16318
--- SMALLCAP GROWTH FUND --- RUSSELL 2000 GROWTH INDEX $9,450 starting value $10,000 starting value $21,768 ending value $16,318 ending value
PORTFOLIO MANAGERS DAVID J. ELLIOTT, CFA Vice President JAMES A. RULLO, CFA Senior Vice President, Partner AVERAGE ANNUAL TOTAL RETURNS(4,5) (as of 10/31/03)
INCEPTION 1 5 10 SINCE DATE YEAR YEAR YEAR INCEPTION ------------------------------------------------------------------- SmallCap A# 1/4/1988 47.14% 13.10% 8.70% 12.76% ------------------------------------------------------------------- SmallCap A## 1/4/1988 39.02% 11.83% 8.09% 12.36% ------------------------------------------------------------------- SmallCap B# 11/14/1994 46.17% 12.45% NA* NA* ------------------------------------------------------------------- SmallCap B## 11/14/1994 41.17% 12.27% NA* NA* ------------------------------------------------------------------- SmallCap C# 11/14/1994 46.27% 12.41% NA 10.56% ------------------------------------------------------------------- SmallCap C## 11/14/1994 43.81% 12.06% NA 10.42% ------------------------------------------------------------------- SmallCap H# 11/14/1994 46.28% 12.45% NA* NA* ------------------------------------------------------------------- SmallCap H## 11/14/1994 42.28% 12.27% NA* NA* ------------------------------------------------------------------- SmallCap L# 1/4/1988 47.17% 13.09% 8.70% 12.76% ------------------------------------------------------------------- SmallCap L## 1/4/1988 40.15% 12.00% 8.17% 12.41% ------------------------------------------------------------------- SmallCap M# 11/14/1994 46.24% 12.46% NA* NA* ------------------------------------------------------------------- SmallCap M## 11/14/1994 42.24% 12.28% NA* NA* ------------------------------------------------------------------- SmallCap N# 11/14/1994 46.28% 12.45% NA 10.57% ------------------------------------------------------------------- SmallCap N## 11/14/1994 45.28% 12.45% NA 10.57% ------------------------------------------------------------------- SmallCap Y# 2/19/2002 47.72% NA NA 6.49% -------------------------------------------------------------------
# Without sales charge ## With sales charge NA Not applicable * 10 year and inception returns are not applicable for Classes B, H and M because after 8 years Class B converts to Class A and Classes H and M convert to Class L. PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS. Please see page 1 for important additional information including inception dates and expenses. -------------------------------------------------------------------------------- HOW DID THE FUND PERFORM? The Hartford Small Cap Growth Fund Class A, before sales charge, returned 47.14% for the twelve-month period ended October 31, 2003. The Fund outperformed the Russell 2000 Growth Index, which returned 46.56%, and the Lipper Small-Cap Growth Mutual Fund Average, which returned 40.5% over the same period. WHY DID THE FUND PERFORM THIS WAY? Ascending equity markets have generally reflected increased investor confidence in an economic rebound as indicated by increased consumer confidence and firming consumer spending, growing manufacturing output and productivity gains, and accommodating interest rates and tax policies. Small cap stocks benefited the most from this cyclical rally outpacing larger cap names. Within the Russell 2000 Growth Index, the Telecommunication and Technology sectors led the way posting returns of 92% and 75%, respectively, as Energy names performed the worst, returning 16%. Given our sector-neutral investment approach, the Fund's stock selection was the main driver of our outperformance. Security selection was strongest among the Information Technology and Industrials sectors. On the negative side, our investments within Financials detracted the most from relative return comparisons. For the twelve-month period, the greatest contributors to absolute Fund returns were UnitedGlobalCom (Consumer Discretionary), Ciphergen Biosystems (Health Care), and Dendrite International (Health Care). The largest detractors from absolute Fund returns were Investment Technology Group (Financials), Too (Consumer Discretionary), and Radiant Systems (Information Technology). WHAT IS YOUR OUTLOOK? In the current environment of accelerating growth, productivity is surging and remains well above the rate of the 1990s, implying better corporate profits, higher investments, and ultimately job creation. Although the theme of a jobless recovery abounds, there are signs of better times for labor ahead. The number of self-employed workers is growing and small businesses have expressed intentions to step up hiring. Net employment gains will become more visible in the coming months. We believe the consumption environment will be sound in 2004, bolstered by more jobs, tax cuts, and an improving net worth position of households. Furthermore, the outlook for capital spending is solid and will likely emerge as a new driver of growth. 26 The Hartford Stock Fund (subadvised by Wellington Management Company, LLP) PERFORMANCE OVERVIEW(3) 7/22/96 - 10/31/03 Growth of a $10,000 investment in Class A which includes Sales Charge (LINE GRAPH)
STOCK FUND S&P 500 INDEX ---------- ------------- 7/22/96 9450 10000 9526 10102 9668 10317 10178 10897 10/96 10443 11198 11180 12043 10915 11805 11568 12542 11653 12641 11313 12122 11900 12845 12639 13630 13267 14236 14196 15368 13373 14507 14055 15301 10/97 13675 14790 14244 15475 14387 15741 14510 15914 15620 17061 16522 17935 16874 18118 16551 17806 17500 18529 17671 18333 15081 15684 15706 16689 10/98 16939 18044 17917 19138 18895 20240 19509 21086 19135 20430 20074 21248 20975 22070 20361 21549 21694 22745 21089 22035 20762 21925 20187 21324 10/99 21271 22674 21633 23134 23108 24495 22013 23265 22052 22825 24183 25058 23489 24304 22970 23805 23469 24391 22976 24010 24180 25501 23046 24155 10/00 23076 24054 21694 22158 21932 22267 22500 23057 20887 20957 19369 19630 20754 21153 20920 21295 20008 20777 19760 20574 18446 19288 17112 17731 10/01 17475 18070 18789 19456 18924 19627 18459 19341 18189 18967 18810 19680 17226 18488 16978 18352 15747 17045 14796 15717 14661 15820 13026 14102 10/02 14207 15342 15272 16244 14289 15290 13896 14891 13607 14668 13658 14810 14694 16029 15408 16872 15625 17088 16008 17389 16205 17728 15936 17540 10/03 16774 18531
--- STOCK FUND --- S&P 500 INDEX $9,450 starting value $10,000 starting value $16,774 ending value $18,531 ending value
AVERAGE ANNUAL TOTAL RETURNS(1,2) (as of 10/31/03)
INCEPTION SINCE DATE 1 YEAR 5 YEAR INCEPTION ------------------------------------------------------- Stock A# 7/22/1996 18.06% -0.20% 8.20% ------------------------------------------------------- Stock A## 7/22/1996 11.56% -1.32% 7.36% ------------------------------------------------------- Stock B# 7/22/1996 17.18% -0.92% 7.43% ------------------------------------------------------- Stock B## 7/22/1996 12.18% -1.29% 7.43% ------------------------------------------------------- Stock C# 7/22/1996 17.36% -0.84% 7.48% ------------------------------------------------------- Stock C## 7/22/1996 15.19% -1.04% 7.33% ------------------------------------------------------- Stock Y# 7/22/1996 18.80% 0.31% 8.73% -------------------------------------------------------
# Without sales charge ## With sales charge PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS. Please see page 1 for important additional information including inception dates and expenses. PORTFOLIO MANAGER RAND L. ALEXANDER, CFA Senior Vice President, Partner -------------------------------------------------------------------------------- HOW DID THE FUND PERFORM? The Hartford Stock Fund Class A, before sales charge, returned 18.06% for the 12-month period ended October 31, 2003, slightly ahead of its Lipper Large-Cap Core peer group of 17.8% but trailed the S&P 500 Index, the Fund's benchmark, which returned 20.79%. WHY DID THE FUND PERFORM THIS WAY? Most major market indices posted positive returns during the period. On a relative basis, small caps continued to outperform mid-cap and large-cap stocks while value edged out growth by a small margin. All ten sectors of the S&P 500 posted positive gains for the period with strong results in Consumer Discretionary, Materials and Technology. However, during this period, we faced a significant headwind as, on average, the smaller cap, higher beta names within the index outperformed the larger cap, higher quality names held in our portfolio. Strong stock selection in several sectors, most notably Health Care, Financials and Energy, boosted our performance. Conversely, overall stock selection within Technology, Consumer Discretionary, Consumer Staples and Industrials detracted from performance. At the margin, the Fund's underweight position in Telecommunications and overweight position in Materials helped performance. Two of the strongest contributors to performance were Cisco (Technology) and Citigroup (Financials). Cisco benefited from a rebound in technology spending over the last year as well as new product introductions. Citigroup has executed well, controlled costs and is leveraged to improving global capital markets. During the period we added to Citigroup and held onto our position in Cisco. The top three detractors from performance were SBC Communications (Telecommunications), Schering-Plough (Pharmaceuticals) and Safeway (Consumer Staples). Along with others in the telecom industry, SBC has struggled as a result of overcapacity, competition, and new technologies. Schering-Plough has suffered from competitive pressures across its key drug franchises as well as from the switch of Claritin, their leading product, to the Over the Counter market. Safeway lowered their earnings guidance resulting from increasing operating costs and declining margins due to competition from Wal-Mart. All three stocks have been eliminated from the portfolio. Given our positive economic outlook, we continue to position the portfolio with a pro-cycle bias, investing in those stocks and sectors that offer the most attractive valuations and long-term growth prospects. WHAT IS YOUR OUTLOOK? Investor optimism surrounding the economy and the equity market has started to consolidate. Tax cuts, a weaker dollar, sustained productivity, and healthier balance sheets all bode well for corporate profits. The consumer has driven the economic recovery so far. However, we will look for improved corporate spending and employment trends as key gauges to determine the sustainability of the domestic recovery. At this juncture, we believe a sustainable up-trend will in fact unfold over the next several months and support growth in 2004. 27 The Hartford Tax-Free California Fund (subadvised by Hartford Investment Management Company) PERFORMANCE OVERVIEW(3) 10/31/02 - 10/31/03 Growth of a $10,000 investment in Class A which includes Sales Charge (LINE GRAPH)
LEHMAN BROTHERS CALIFORNIA EXEMPT TAX-FREE CALIFORNIA FUND INDEX ------------------------ --------------------------------- 10/31/02 9550 10000 9476 9985 9718 10166 9620 10116 9814 10269 9805 10274 9863 10562 10116 10630 10000 10549 9437 10110 9540 10192 9869 10485 10/03 9842 10448
--- TAX-FREE CALIFORNIA FUND --- LEHMAN BROTHERS CALIFORNIA EXEMPT $9,550 starting value INDEX $9,842 ending value $10,000 starting value $10,448 ending value
AVERAGE ANNUAL TOTAL RETURNS(2) (as of 10/31/03)
INCEPTION DATE 1 YEAR SINCE INCEPTION -------------------------------------------------------------- California A# 10/31/2002 3.06% 3.06% -------------------------------------------------------------- California A## 10/31/2002 -1.57% -1.57% -------------------------------------------------------------- California B# 10/31/2002 2.23% 2.23% -------------------------------------------------------------- California B## 10/31/2002 -2.73% -2.73% -------------------------------------------------------------- California C# 10/31/2002 2.34% 2.34% -------------------------------------------------------------- California C## 10/31/2002 0.32% 1.32% --------------------------------------------------------------
# Without sales charge ## With sales charge PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS. Please see page 1 for important additional information including inception dates and expenses. PORTFOLIO MANAGER CHARLES GRANDE Senior Vice President -------------------------------------------------------------------------------- HOW DID THE FUND PERFORM? For the one year period ended October 31, 2003, The Hartford Tax-Free California Fund Class A placed in the 4th quartile with a total return, before sales charge, of 3.06% versus the 4.22% for the Lipper peer group and a return of 4.48% for the Lehman Brothers California Exempt Index. The primary objective of the Hartford Tax-Free California Fund is to provide current income exempt from both federal and California income tax. As of October 31, 2003, the SEC yield for this Fund's Class A shares was 4.11%. WHY DID THE FUND PERFORM THIS WAY? Throughout the year, we overweighted bonds 20 years to maturity and longer, in order to maximize yield, and underweighted the better performing intermediate portion of the yield curve. Long bonds have generally been the worst performing part of the California yield curve. Our holdings in long state general obligation debt, suffering from weak credit fundamentals and an abundance of supply, led the decline in poor performance. Our strategy to add yield by also underweighting the short portion of the yield curve, caused a drag to total return performance as well. California experienced a continuous barrage of negative headlines on the State's ever-widening budget deficit and is currently the lowest rated State in the nation. Until recently, state tobacco bonds also suffered heavy losses because of the uncertain outcome of a lawsuit against Phillip Morris USA. However, three separate favorable legal judgments for the tobacco companies were announced in September. The most important decision came from the Illinois Supreme Court, which in part reversed a lower court ruling in a case that threatened to force Philip Morris into bankruptcy. This proved to be very positive news for tobacco companies and in return for municipal tobacco bonds. Tobacco bonds performed extremely well after the announcements. WHAT IS YOUR OUTLOOK? California issuance has been running counter to the general market trend and has been up all year, while general market issuance has declined in the last three months. Much of the issuance from the state has been in response to its budget difficulties and the need to continue to finance projects already in progress or to replenish depleted cash balances. We do not expect issuance from the state to ebb anytime soon. We believe the combination of very strong issuance from the state and a less than stellar market for bonds will generally cause California bonds to under perform the market for the time being. Even though the national economic picture appears to be slowly improving, we believe that the state finance picture has at least a year to go prior to credit improvement. California represents a true credit puzzle from both a political and fiscal perspective. We have a real concern Moody's Rating Agency could join Standard & Poors and lower the state's general obligation debt rating to the "BBB" category. The state's strong issuance needs, combined with a second agency downgrade to "BBB", will cause a strong negative market reaction. We also note that California counties, schools and other state and local agencies that collect property taxes may be required to refund close to $10 billion in past property tax collections if a court finds they violated assessment methodologies dictated under Proposition 13. We will continue our focus on higher yielding securities, but we will also seek to balance the risks we see in the market. 28 The Hartford Tax-Free Minnesota Fund (subadvised by Hartford Investment Management Company) PERFORMANCE OVERVIEW(7,9) 10/31/93 - 10/31/03 Growth of a $10,000 investment in Class A which includes Sales Charge (LINE GRAPH)
LEHMAN BROTHERS MUNICIPAL BOND TAX-FREE MINNESOTA FUND INDEX ----------------------- ------------------------------ 10/31/93 9550 10000 9487 9912 9635 10121 9740 10237 9515 9972 9154 9565 9188 9647 9314 9730 9284 9671 9456 9848 9464 9882 9351 9737 10/94 9182 9564 9022 9391 9226 9598 9460 9872 9694 10159 9749 10276 9747 10288 10024 10617 9925 10524 9991 10623 10086 10758 10131 10826 10/95 10276 10984 10421 11166 10526 11273 10571 11358 10497 11282 10362 11137 10337 11106 10342 11102 10438 11223 10525 11324 10510 11322 10639 11480 10/96 10727 11610 10877 11822 10841 11772 10845 11795 10933 11903 10789 11744 10879 11843 11022 12021 11133 12149 11395 12485 11270 12368 11394 12515 10/97 11463 12596 11522 12670 11682 12854 11785 12987 11766 12991 11769 13003 11706 12944 11888 13149 11926 13201 11952 13234 12182 13438 12334 13606 10/98 12280 13605 12330 13653 12355 13688 12474 13850 12416 13790 12405 13809 12442 13843 12345 13763 12188 13565 12223 13614 12137 13505 12123 13511 10/99 11988 13364 12098 13507 12037 13406 11975 13348 12125 13503 12325 13798 12253 13716 12180 13645 12449 14006 12604 14201 12786 14420 12713 14345 10/00 12858 14502 12952 14611 13306 14972 13388 15121 13444 15169 13537 15305 13354 15139 13513 15302 13589 15404 13790 15633 13993 15890 13931 15837 10/01 14117 16025 13940 15890 13797 15740 13994 16013 14066 16206 13828 15888 14083 16199 14151 16298 14314 16470 14478 16683 14630 16883 14935 17253 10/02 14633 16966 14530 16895 14871 17252 14801 17208 15027 17449 15015 17460 15076 17868 15478 17986 15394 17909 14777 17282 14869 17412 15366 17924 10/03 15253 17834
--- TAX-FREE MINNESOTA FUND --- LEHMAN BROTHERS MUNICIPAL BOND INDEX $9,550 starting value $10,000 starting value $15,253 ending value $17,834 ending value
PORTFOLIO MANAGER CHARLES GRANDE Senior Vice President AVERAGE ANNUAL TOTAL RETURNS(7,8) (as of 10/31/03)
INCEPTION 1 5 10 SINCE DATE YEAR YEAR YEAR INCEPTION ----------------------------------------------------------------------- Minnesota A# 6/2/1986 4.23% 4.43% 4.80% 6.16% ----------------------------------------------------------------------- Minnesota A## 6/2/1986 -0.43% 3.48% 4.32% 5.88% ----------------------------------------------------------------------- Minnesota B# 11/14/1994 3.42% 3.59% NA* NA* ----------------------------------------------------------------------- Minnesota B## 11/14/1994 -1.58% 3.25% NA* NA* ----------------------------------------------------------------------- Minnesota C# 11/14/1994 3.51% 3.59% NA 5.20% ----------------------------------------------------------------------- Minnesota C## 11/14/1994 1.47% 3.21% NA 5.08% ----------------------------------------------------------------------- Minnesota E# 6/2/1986 4.50% 4.67% 4.92% 6.23% ----------------------------------------------------------------------- Minnesota E## 6/2/1986 -0.23% 3.72% 4.44% 5.95% ----------------------------------------------------------------------- Minnesota H# 11/14/1994 3.46% 3.63% NA* NA* ----------------------------------------------------------------------- Minnesota H## 11/14/1994 -0.53% 3.29% NA* NA* ----------------------------------------------------------------------- Minnesota L# 11/14/1994 4.34% 4.42% NA 6.03% ----------------------------------------------------------------------- Minnesota L## 11/14/1994 -0.31% 3.47% NA 5.49% ----------------------------------------------------------------------- Minnesota M# 11/14/1994 3.67% 3.68% NA* NA* ----------------------------------------------------------------------- Minnesota M## 11/14/1994 -0.33% 3.34% NA* NA* ----------------------------------------------------------------------- Minnesota N# 11/14/1994 3.47% 3.68% NA 5.23% ----------------------------------------------------------------------- Minnesota N## 11/14/1994 2.47% 3.68% NA 5.23% ----------------------------------------------------------------------- Minnesota Y# 2/19/2002 4.50% NA NA 9.64% -----------------------------------------------------------------------
# Without sales charge ## With sales charge NA Not applicable * 10 year and inception returns are not applicable for Classes B, H and M because after 8 years Class B converts to Class A and Classes H and M convert to Class L. PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS. Please see page 1 for important additional information including inception dates and expenses. -------------------------------------------------------------------------------- HOW DID THE FUND PERFORM? For the one year period ended October 31, 2003, The Hartford Tax-Free Minnesota Fund Class A placed in the 4th quartile with a total return, before sales charge, of 4.23% versus a return of 5.11% for the Lehman Brothers Municipal Bond Index and the 5.00% for the Lipper peer group. The primary objective of the Hartford Tax-Free Minnesota Fund is to provide current income exempt from both federal income tax and Minnesota state personal income tax. As of October 31, 2003, the SEC yield for this Fund's Class A shares is 3.11%. WHY DID THE FUND PERFORM THIS WAY? The Fund's performance suffered from an overweight to the short maturing securities early this year and more recently, our overweight to the underperforming intermediate part of the yield curve. Security selection in Puerto Rico debt, which suffered spread widening, and limited exposure to tobacco bonds, which saw spreads tighten, also caused a drag on performance. The lack of Minnesota paper created a very challenging environment for repositioning the Fund. Most of the deals brought to market were of very high quality and offered little in the way of yield pickup. We have had a strong bias toward the relative safety of local general obligation debt as we headed into the current economic cycle. We believe tight spreads for lower quality Minnesota paper are a product of a lack of supply and not credit fundamentals. Therefore, we favored quality over the yield compensation for moving into lower rated credits. We also continued to carry more insured bonds than the index due to our preference for quality. WHAT IS YOUR OUTLOOK? Minnesota's economic and fiscal recovery remains uncertain. The State's revenue report in December will indicate to state lawmakers whether additional budget cuts are required during the next legislative session. Minnesota Governor Pawlenty filed an application for federal agricultural disaster relief for 62 counties, and he expects the number to rise after a second assessment by the Farm Service Agency. State officials are estimating losses of about $1.1 billion in crops alone. We have focused on increasing exposure to those revenue sectors where we see positive demographic trends, strong product demand in all economic environments and good liquidity provided by retail. We like public and private higher education bonds (demographics), corporate industrial development revenue bonds (national economic recovery) and health care bonds. We are actively looking for health related credits at a time when changes in both federal and state health policy might bring additional volatility to the sector. When the market presents the opportunity, we expect that the industrial/pollution control and hospital sectors will be overweights for the Fund because of the ability to pickup incremental yield. 29 The Hartford Tax-Free National Fund (subadvised by Hartford Investment Management Company) PERFORMANCE OVERVIEW(7,9) 10/31/93 -- 10/31/03 Growth of a $10,000 investment in Class A which includes Sales Charge (LINE GRAPH)
LEHMAN BROTHERS MUNICIPAL BOND TAX-FREE NATIONAL FUND INDEX ---------------------- ------------------------------ 10/31/93 9550 10000 9432 9912 9619 10121 9747 10237 9506 9972 9108 9565 9132 9647 9235 9730 9172 9671 9372 9848 9414 9882 9226 9737 10/94 9038 9564 8902 9391 9122 9598 9364 9872 9645 10159 9690 10276 9690 10288 10003 10617 9846 10524 9929 10623 10039 10758 10084 10826 10/95 10242 10984 10458 11166 10569 11273 10623 11358 10515 11282 10357 11137 10305 11106 10311 11102 10404 11223 10527 11324 10504 11322 10658 11480 10/96 10773 11610 10968 11822 10904 11772 10900 11795 10986 11903 10830 11744 10918 11843 11077 12021 11196 12149 11561 12485 11380 12368 11531 12515 10/97 11598 12596 11656 12670 11855 12854 11976 12987 11948 12991 11931 13003 11827 12944 12054 13149 12077 13201 12089 13234 12296 13438 12450 13606 10/98 12407 13605 12441 13653 12475 13688 12599 13850 12522 13790 12500 13809 12547 13843 12434 13763 12219 13565 12255 13614 12141 13505 12131 13511 10/99 11958 13364 12099 13507 12018 13406 11949 13348 12116 13503 12354 13798 12275 13716 12195 13645 12499 14006 12659 14201 12857 14420 12777 14345 10/00 12915 14502 13006 14611 13415 14972 13506 15121 13535 15169 13648 15305 13402 15139 13552 15302 13649 15404 13865 15633 14160 15890 14077 15837 10/01 14268 16025 14081 15890 13883 15740 14137 16013 14270 16206 13958 15888 14259 16199 14381 16298 14539 16470 14737 16683 14922 16883 15279 17253 10/02 14963 16966 14830 16895 15230 17252 15125 17208 15388 17449 15366 17460 15498 17868 15933 17986 15813 17909 15085 17282 15234 17412 15691 17924 10/03 15588 17834
--- TAX-FREE NATIONAL FUND --- LEHMAN BROTHERS MUNICIPAL BOND INDEX $9,550 starting value $10,000 starting value $15,588 ending value $17,834 ending value
PORTFOLIO MANAGER CHARLES GRANDE Senior Vice President AVERAGE ANNUAL TOTAL RETURNS(7,8) (as of 10/31/03)
INCEPTION 1 5 10 SINCE DATE YEAR YEAR YEAR INCEPTION ------------------------------------------------------------------ National A# 6/2/1986 4.18% 4.67% 5.02% 6.61% ------------------------------------------------------------------ National A## 6/2/1986 -0.50% 3.72% 4.54% 6.33% ------------------------------------------------------------------ National B# 11/14/1994 3.43% 3.66% NA* NA* ------------------------------------------------------------------ National B## 11/14/1994 -1.47% 3.32% NA* NA* ------------------------------------------------------------------ National C# 11/14/1994 3.42% 3.74% NA 5.62% ------------------------------------------------------------------ National C## 11/14/1994 1.39% 3.36% NA 5.50% ------------------------------------------------------------------ National E# 6/2/1986 4.39% 4.73% 5.05% 6.63% ------------------------------------------------------------------ National E## 6/2/1986 -0.30% 3.77% 4.57% 6.35% ------------------------------------------------------------------ National H# 11/14/1994 3.47% 3.74% NA* NA* ------------------------------------------------------------------ National H## 11/14/1994 -0.46% 3.40% NA* NA* ------------------------------------------------------------------ National L# 11/14/1994 4.24% 4.49% NA 6.42% ------------------------------------------------------------------ National L## 11/14/1994 -0.45% 3.54% NA 5.87% ------------------------------------------------------------------ National M# 11/14/1994 3.47% 3.72% NA* NA* ------------------------------------------------------------------ National M## 11/14/1994 -0.46% 3.38% NA* NA* ------------------------------------------------------------------ National N# 11/14/1994 3.48% 3.73% NA 5.61% ------------------------------------------------------------------ National N## 11/14/1994 2.49% 3.73% NA 5.61% ------------------------------------------------------------------ National Y# 2/19/2002 4.53% NA NA 5.96% ------------------------------------------------------------------
# Without sales charge ## With sales charge NA Not applicable * 10 year and inception returns are not applicable for Classes B, H and M because after 8 years Class B converts to Class A and Classes H and M convert to Class L. PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS. Please see page 1 for important additional information including inception dates and expenses. -------------------------------------------------------------------------------- HOW DID THE FUND PERFORM? For the one year period ended October 31, 2003, The Hartford Tax-Free National Fund Class A placed in the 4th quartile with a total return, before sales charge, of 4.18% versus the return of 4.88% for the Lipper peer group and a return of 5.11% for the Lehman Brothers Municipal Bond Index. The primary objective of the Hartford Tax-Free National Fund is to provide current income exempt from federal income tax. As of October 31, 2003, the SEC yield for this Fund's Class A shares is 3.59%. WHY DID THE FUND PERFORM THIS WAY? Throughout the year, the Fund's performance lagged due to our overweight to longer maturity bonds and underweight to the better performing intermediate portion of the yield curve. The primary driver of the Fund's underperformance has been its exposure to the long portion of the curve. A lack of exposure to short maturity bonds, which generally have done well, also hurt the Fund's performance. A lack of exposure to troubled airline special facility bonds assisted Fund performance in the beginning of the year. However, the airline industry appears to be rebounding and direct airline industry debt has performed especially well in the second half of the year. The Fund's limited exposure to tobacco bonds also produced a drag on performance. Until recently, state tobacco bonds suffered heavy losses because of the uncertain outcome of a lawsuit against Phillip Morris USA. However, three separate favorable legal judgments for the tobacco companies were announced in September. The most important decision came from the Illinois Supreme Court, which in part reversed a lower court ruling in a case that threatened to force Philip Morris into bankruptcy. This proved to be very positive news and our tobacco bond holdings performed extremely well after the announcements. WHAT IS YOUR OUTLOOK? Even though the national economic picture appears to be slowly improving, we believe that the general state finance picture has at least a year to go before true credit improvement. Two points worth noting: 1) the dollar value volume of downgrades continues to outpace upgrades; and, 2) while we do recognize an up-tick in revenue collections, it remains to be seen if growth is robust enough to support current operations and outstanding deficits. We continue to closely monitor economic developments to determine the strength of the national recovery. We were encouraged by September's improved economic outlook provided in Federal Reserve's Beige Book, excellent Gross Domestic Product statistics and October's positive employment numbers. Additionally, the Bureau of Economic Analysis has indicated, a second quarter $50 billion decline in state budget deficits leaves only $30 - $40 billion in additional fiscal drag to address. In general, we expect state tax receipts, namely personal income taxes, to begin to show improvement in the first half of next year and ratings to improve immediately thereafter. We continue to reduce our exposure to the higher quality sectors, in favor of the lower quality sectors. Our expectation is that the lower quality credit spectrum will perform very well in an improving economy and we believe we are being fairly compensated for the additional credit risk. As the supply of municipal debt decreased the last two consecutive months, we have seen a reach for yield that is causing high yield debt spreads to tighten. Most of the improvement in high yield debt can be attributed to the improving outlook for airline debt and the favorable tobacco legal decisions mentioned earlier. 30 The Hartford Tax-Free New York Fund (subadvised by Hartford Investment Management Company) PERFORMANCE OVERVIEW(3) 10/31/02 - 10/31/03 Growth of a $10,000 investment in Class A which includes Sales Charge (LINE GRAPH)
TAX-FREE NEW YORK FUND LEHMAN NEW YORK EXEMPT INDEX ---------------------- ---------------------------- 10/31/02 9550 10000 9474 9945 9733 10161 9660 10138 9831 10275 9850 10285 9937 10561 10256 10628 10168 10585 9643 10185 9752 10267 10097 10562 10/03 10030 10514
--- TAX-FREE NEW YORK FUND --- LEHMAN NEW YORK EXEMPT INDEX $9,550 starting value $10,000 starting value $10,030 ending value $10,514 ending value
AVERAGE ANNUAL TOTAL RETURNS(2) (as of 10/31/03)
INCEPTION DATE 1 YEAR SINCE INCEPTION ------------------------------------------------------------ New York A# 10/31/2002 5.03% 5.03% ------------------------------------------------------------ New York A## 10/31/2002 0.32% 0.32% ------------------------------------------------------------ New York B# 10/31/2002 4.30% 4.30% ------------------------------------------------------------ New York B## 10/31/2002 -0.70% -0.70% ------------------------------------------------------------ New York C# 10/31/2002 4.30% 4.30% ------------------------------------------------------------ New York C## 10/31/2002 2.26% 3.27% ------------------------------------------------------------
# Without sales charge ## With sales charge PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS. Please see page 1 for important additional information including inception dates and expenses. PORTFOLIO MANAGER CHARLES GRANDE Senior Vice President -------------------------------------------------------------------------------- HOW DID THE FUND PERFORM? For the one year period ended October 31, 2003, The Hartford Tax-Free New York Fund Class A placed in the 2nd quartile with a total return, before sales charge, of 5.03% versus the 4.93% return for the Lipper peer group and the return of 5.14% for the Lehman Brothers New York Exempt Index. The primary objective of The Hartford Tax-Free New York Fund is to provide current income exempt from federal and New York and New York City income tax. As of October 31, 2003, the SEC yield for this Fund's class A shares is 3.51%. WHY DID THE FUND PERFORM THIS WAY? Strong performance earlier this year was primarily due to a lack of exposure to the short maturities, an overweight to the better performing portion of the New York yield curve between 18-22 years and better security selection. However for the second half of the year, performance lagged primarily because of the Fund's strong overweight to the underperforming intermediate portion of the curve. Additionally, our limited exposure to airline and tobacco debt also contributed to underperformance. Quality and solid credit fundamentals provided the best return for the Fund over the last year. This has been partially driven by the rating agencies' issuance of negative outlooks for New York City and negative headline news on the fiscal condition of New York State. Insured local general obligation debt provided good diversification away from the state's credit. WHAT IS YOUR OUTLOOK? New York State and New York City continue to struggle with the negative consequences of a declining national economy, a continued negative picture for the securities industry and the still lingering negative effects of the September 11th tragedy. The state appears to be in a better fiscal position than the city, but the balance of its fiscal operations seems precarious at best with estimated budget gaps of between $5 billion to $8 billion. New York State is among twelve states facing possible downgrade. According to Standard & Poors rating agency, the State's "AA" rating is under pressure because of economic weakness, poor revenue performance, increasing debt issuance (largest in the country at $39 billion) and reliance on large one-time revenue sources used to balance the current fiscal year's budget. Although prior to October we thought New York issuance would be strong, we now believe that issuance (after a substantial tobacco bond deal) will be no better than average. Demand will remain strong, and combined with our outlook on supply and the unlikelihood of substantial credit events into year-end, New York bonds should continue to perform fairly well. We have focused on increasing exposure to those revenue sectors where we see positive demographic trends, strong product demand in all economic environments or good liquidity provided by retail demand. We like public and private higher education bonds (demographics), corporate industrial development revenue bonds (national economic recovery) and power bonds, especially in light of the recent region wide blackout. Since the beginning of the year, we have selectively increased our exposure to the hospital sector. We are very cautious of the New York health care market because we believe it is an "over-bedded" market that is ripe for consolidation and elimination of excess capacity. We are also concerned that the state's financial difficulties could translate into a reduction in Medicaid spending. 31 The Hartford Total Return Bond Fund (subadvised by Hartford Investment Management Company) PERFORMANCE OVERVIEW(3) 7/22/96 - 10/31/03 Growth of a $10,000 investment in Class A which includes Sales Charge (LINE GRAPH)
LEHMAN BROTHERS U.S. AGGREGATE BOND TOTAL RETURN BOND FUND INDEX ---------------------- ----------------------------------- 7/22/96 9550 10000 9569 10027 9562 10010 9751 10184 10/96 9958 10410 10168 10588 10097 10490 10153 10522 10186 10549 10054 10431 10205 10588 10315 10689 10464 10816 10811 11108 10694 11013 10865 11175 10/97 10960 11337 11034 11389 11187 11504 11339 11652 11332 11642 11381 11682 11419 11743 11533 11854 11618 11955 11618 11980 11693 12175 12008 12460 10/98 11871 12394 11996 12465 12027 12502 12122 12591 11818 12371 11878 12439 11940 12479 11769 12369 11697 12329 11655 12276 11632 12270 11739 12412 10/99 11766 12458 11770 12457 11702 12397 11673 12356 11813 12506 11970 12671 11951 12634 11940 12628 12212 12891 12293 13008 12434 13196 12505 13280 10/00 12539 13367 12733 13586 13017 13839 13302 14066 13381 14189 13398 14259 13378 14200 13452 14285 13430 14339 13740 14660 13893 14829 13928 15002 10/01 14162 15316 14084 15105 14020 15008 14075 15129 14130 15276 13909 15023 14178 15314 14327 15444 14304 15579 14335 15767 14609 16034 14745 16293 10/02 14798 16218 14958 16213 15323 16549 15450 16564 15685 16793 15705 16779 15905 16918 16243 17233 16229 17199 15739 16621 15847 16730 16274 17174 10/03 16153 17014
--- TOTAL RETURN BOND FUND --- LEHMAN BROTHERS U.S. AGGREGATE BOND INDEX $9,550 starting value $10,000 starting value $16,153 ending value $17,014 ending value
AVERAGE ANNUAL TOTAL RETURNS(1,2) (as of 10/31/03)
INCEPTION SINCE DATE 1 YEAR 5 YEAR INCEPTION -------------------------------------------------------------- Total Return A# 7/22/1996 9.16% 6.36% 7.49% -------------------------------------------------------------- Total Return A## 7/22/1996 4.24% 5.38% 6.81% -------------------------------------------------------------- Total Return B# 7/22/1996 8.44% 5.61% 6.73% -------------------------------------------------------------- Total Return B## 7/22/1996 3.44% 5.28% 6.73% -------------------------------------------------------------- Total Return C# 7/22/1996 8.31% 5.59% 6.72% -------------------------------------------------------------- Total Return C## 7/22/1996 6.23% 5.39% 6.57% -------------------------------------------------------------- Total Return Y# 7/22/1996 9.68% 6.84% 7.98% --------------------------------------------------------------
# Without sales charge ## With sales charge PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS. Please see page 1 for important additional information including inception dates and expenses. PORTFOLIO MANAGER NASRI TOUTOUNGI Managing Director -------------------------------------------------------------------------------- HOW DID THE FUND PERFORM? For the one year period ended October 31, 2003, The Hartford Total Return Bond Fund Class A placed in the 1st quartile with a total return, before sales charge, of 9.16% versus a return of 4.91% for the Lehman Brothers U.S. Aggregate Bond Index and the 5.38% for the Lipper peer group. WHY DID THE FUND PERFORM THIS WAY? Throughout the past 12 months, the Fund has benefited from its overweight in investment grade and high yield corporate bonds. While poor high yield security selection caused a very slight drag to performance recently, overall our high yield allocation based on our belief that corporations would continue to focus on balance sheet repair has delivered stellar performance. Strong performance is also due to the Fund's holdings in non-dollar securities as well as our judicious interest rate anticipation versus the index. The Fund's duration was short going into the rate increase of late July, and was long subsequently as rates backed up. The Fund's exposure in non-dollar bonds continues to benefit the Fund as fundamentals continue to support a weak US dollar relative to foreign currencies. These securities also offer a higher yield than comparable US issues. We remain concerned about the mortgage-backed sector as we continue to see record refinancing activity and believe the sector could under-perform both in a rally and in a backup. We also continue to avoid agencies, as regulators probe their credit worthiness and fear that the ongoing debate about their government sponsored status would negatively affect them. We prefer to take our credit risk in corporate bonds. WHAT IS YOUR OUTLOOK? It is becoming apparent that the U.S. economy is on its way to recovery. The latest data suggests that the massive fiscal and monetary stimuli are having a direct effect on the consumer. The most recent tax cuts started to take effect in the third quarter of this year and translated directly into increased retail sales. Meanwhile, initial jobless unemployment claims are pointing to an improved labor picture, and should translate into further increases in consumption. There is now evidence of an increase in corporate capital spending, which should be accompanied by increased spending on labor capital. Meanwhile, the Federal Reserve is anchoring short rates for a "considerable period" of time. The removal of this language will signal the beginning of a trend toward higher rates and a flatter yield curve. We remain constructive on corporate bond spreads, but we are not nearly as sanguine as we were earlier in the year. While fundamentals for corporate securities continue to improve, bonds have done very well versus their Treasury counterparts. We have increased our exposure to lower coupon mortgage-backed securities, but remain underweight to the sector. The Fund will benefit commensurately if mortgage-backed securities do well relative to Treasuries. Agency debentures could experience further volatility, hence we will remain underweight in the sector. We have reentered a position in foreign bonds on an unhedged basis. The currency markets are once again focused on the very large US trade deficit, and in a rising rate environment, European bonds should do well versus US bonds. 32 The Hartford U.S. Government Securities Fund (subadvised by Hartford Investment Management Company) PERFORMANCE OVERVIEW(7,9) 10/31/93 - 10/31/03 Growth of a $10,000 investment in Class A which includes Sales Charge (LINE GRAPH)
U.S. GOVERNMENT SECURITIES LEHMAN BROTHERS LEHMAN BROTHERS U.S. GOV'T FUND INTERMEDIATE GOV'T INDEX* INDEX* -------------------------- ------------------------- -------------------------- 10/31/93 9550 10000 10000 9455 9951 9890 9544 9992 9929 9670 10090 10065 9505 9952 9851 9201 9807 9630 9034 9743 9553 9034 9750 9541 8984 9752 9519 9135 9880 9694 9142 9909 9696 9006 9827 9560 10/94 8972 9829 9553 8948 9785 9536 9006 9817 9594 9169 9977 9772 9354 10169 9982 9403 10225 10045 9515 10344 10177 9798 10636 10587 9867 10703 10668 9839 10709 10629 9952 10797 10753 10041 10869 10857 10/95 10186 10988 11022 10320 11122 11194 10444 11232 11352 10512 11327 11422 10333 11207 11189 10266 11156 11096 10209 11123 11025 10195 11118 11006 10319 11231 11148 10338 11266 11176 10323 11278 11151 10507 11424 11336 10/96 10717 11611 11586 10892 11752 11787 10794 11688 11667 10828 11733 11680 10849 11752 11696 10726 11685 11572 10882 11817 11739 10977 11909 11840 11098 12011 11973 11379 12233 12313 11286 12186 12191 11455 12318 12374 10/97 11611 12462 12588 11643 12489 12652 11751 12591 12785 11910 12755 12977 11887 12742 12941 11928 12781 12978 11969 12842 13036 12088 12931 13170 12208 13018 13321 12224 13068 13341 12476 13315 13687 12783 13626 14057 10/98 12666 13648 14009 12722 13606 14013 12751 13659 14044 12805 13720 14126 12549 13532 13789 12616 13622 13843 12643 13659 13875 12522 13575 13753 12468 13595 13725 12414 13597 13705 12388 13616 13705 12543 13732 13816 10/99 12559 13760 13838 12564 13769 13818 12497 13726 13729 12446 13680 13748 12581 13793 13943 12732 13951 14188 12710 13945 14149 12689 13982 14157 12914 14204 14409 13024 14299 14549 13207 14459 14764 13320 14585 14806 10/00 13419 14685 14948 13654 14901 15242 13934 15164 15546 14095 15365 15703 14242 15506 15882 14314 15619 15937 14231 15569 15775 14285 15634 15827 14304 15684 15899 14626 15976 16281 14780 16118 16483 15040 16462 16770 10/01 15294 16719 17202 15073 16520 16817 14978 16440 16671 15058 16511 16779 15240 16647 16934 15035 16396 16566 15313 16703 16960 15431 16820 17062 15564 17030 17301 15837 17351 17682 16044 17548 18032 16318 17850 18454 10/02 16263 17838 18306 16171 17697 18149 16599 18024 18588 16507 17985 18541 16763 18188 18840 16720 18191 18785 16819 18242 18872 17153 18529 19360 16996 18499 19260 16257 18050 18464 16316 18082 18568 16782 18474 19108 10/03 16599 18293 18837
--- U.S. GOVERNMENT SECURITIES FUND --- LEHMAN BROTHERS INTERMEDIATE GOV'T INDEX* $9,550 starting value $10,000 starting value $16,599 ending value $18,293 ending value -- LEHMAN BROTHERS U.S. GOV'T INDEX* $10,000 starting value $18,837 ending value
*The Fund has changed its benchmark from the Lehman Brothers Intermediate Gov't Index to the Lehman Brothers U.S. Government Index because the Lehman Brothers U.S. Government Index is better suited for the investment strategy of the fund. PORTFOLIO MANAGER PETER PERROTTI Senior Vice President, CFA AVERAGE ANNUAL TOTAL RETURNS(7,8) (as of 10/31/03)
INCEPTION 1 5 10 SINCE DATE YEAR YEAR YEAR INCEPTION ------------------------------------------------------------------ U.S. Gov A# 2/28/1973 2.06% 5.56% 5.69% 7.92% ------------------------------------------------------------------ U.S. Gov A## 2/28/1973 -2.57% 4.59% 5.21% 7.76% ------------------------------------------------------------------ U.S. Gov B# 11/14/1994 1.45% 4.61% NA** NA** ------------------------------------------------------------------ U.S. Gov B## 11/14/1994 -3.45% 4.28% NA** NA** ------------------------------------------------------------------ U.S. Gov C# 11/14/1994 1.34% 4.62% NA 6.14% ------------------------------------------------------------------ U.S. Gov C## 11/14/1994 -0.67% 4.24% NA 6.02% ------------------------------------------------------------------ U.S. Gov E# 2/28/1973 2.49% 5.69% 5.76% 7.94% ------------------------------------------------------------------ U.S. Gov E## 2/28/1973 -2.17% 4.71% 5.28% 7.78% ------------------------------------------------------------------ U.S. Gov H# 11/14/1994 1.57% 4.63% NA* NA* ------------------------------------------------------------------ U.S. Gov H## 11/14/1994 -2.35% 4.29% NA* NA* ------------------------------------------------------------------ U.S. Gov L# 11/14/1994 2.32% 5.41% NA 6.95% ------------------------------------------------------------------ U.S. Gov L## 11/14/1994 -2.34% 4.44% NA 6.40% ------------------------------------------------------------------ U.S. Gov M# 11/14/1994 1.47% 4.63% NA* NA* ------------------------------------------------------------------ U.S. Gov M## 11/14/1994 -2.45% 4.2*9% NA* NA* ------------------------------------------------------------------ U.S. Gov N# 11/14/1994 1.47% 4.65% NA 6.16% ------------------------------------------------------------------ U.S. Gov N## 11/14/1994 0.49% 4.65% NA 6.16% ------------------------------------------------------------------ U.S. Gov Y# 2/19/2002 2.51% NA NA 5.81% ------------------------------------------------------------------
# Without sales charge ## With sales charge NA Not applicable ** 10 year and inception returns are not applicable for Classes B, H and M because after 8 years Class B converts to Class A and Classes H and M convert to Class L. PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS. Please see page 1 for important additional information including inception dates and expenses. -------------------------------------------------------------------------------- HOW DID THE FUND PERFORM? For the one year period ended October 31, 2003, The Hartford US Government Securities Fund Class A placed in the 3rd quartile with a return, before sales charge, of 2.06% versus the return of 2.12% for the Lipper peer group and return of 2.90% for the Lehman Brothers U.S. Government Index. The primary objective of the Hartford US Government Securities Fund is to provide current income while maintaining preservation of capital consistent with prudent investment risk. As of October 31, 2003, the SEC yield for this Fund's Class A shares was 3.81%. WHY DID THE FUND PERFORM THIS WAY? During the first half of the year, the Fund benefited from being overweight to the 5 to 10-year part of the Treasury curve, where yields rallied the most early in the year. Our overweights to mortgage-backed securities, callable agencies and collateralized mortgage obligations continued to add a significant yield pickup for the Fund regardless of the very low rate environment. However, in the late spring and early summer, Treasuries rallied significantly as the market became focused on the poor job market and the Federal Open Market Committee's concerns about deflation. The Fund was positioned with a short duration versus the benchmark, which hurt performance. The job situation appeared to be improving in July and bond rates backed up precipitously. The Fund's overweight in mortgage-backed securities caused the Fund to underperform on a total return basis as the mortgage market suffered from the aftershock of a multi-decade low in rates, underperforming comparable duration Treasuries. Refinancing activity had hit an all time high earlier in the summer, as homeowners took advantage of the drop in mortgage rates. As rates backed up through the third quarter, the price sensitivity of the mortgage market increased significantly. Although the backup slowed the rate of prepayment and refinancing activity significantly, the sector came under pressure as many investors sold mortgages to rebalance the price sensitivity of their portfolios. WHAT IS YOUR OUTLOOK? The economic backdrop has become positive. Corporations have begun to show signs of improving profits and capital spending has turned upward. The consumer has remained robust, aided in the third quarter by the tax cuts and refinancing activity. Although there are many concerns about the strength and sustainability of the recovery, the recovery appears to have taken hold. We believe the worst is over for the mortgage market with values fairly priced. This sector will continue to offer good diversification and total return potential within an overall government mandate. Prepayments have started to drop off, which in turn have increased the overall yield of the mortgage market. The Fund will maintain a significant holding in the sector. With the steep yield curve, there remain many opportunities to increase the overall yield of the Fund by pushing out the yield curve. This increased yield will be balanced with the increase in price sensitivity by adding securities with longer duration. The Fund will continue to prudently add yield to the portfolio with an allocation to mortgage-backed securities and opportunistically add Treasury inflation indexed securities when the yield potential is larger. 33 The Hartford Value Fund (subadvised by Wellington Management Company, LLP) PERFORMANCE OVERVIEW(3) 4/30/01 - 10/31/03 Growth of a $10,000 investment in Class A which includes Sales Charge (LINE GRAPH)
VALUE FUND RUSSELL 1000 VALUE INDEX ---------- ------------------------ 4/30/01 9450 10000 9554 10225 9488 9998 9507 9977 9214 9577 8553 8903 10/01 8524 8826 9063 9339 9320 9559 9158 9486 9121 9501 9321 9950 8893 9609 8921 9657 8390 9103 7696 8256 7553 8319 6717 7394 10/02 7212 7942 7610 8442 7162 8076 6913 7880 6808 7670 6855 7683 7420 8359 7909 8899 7976 9010 8043 9144 8205 9287 8081 9196 10/03 8540 9759
--- VALUE FUND --- RUSSELL 1000 VALUE INDEX $9,450 starting value $10,000 starting value $8,540 ending value $9,759 ending value
AVERAGE ANNUAL TOTAL RETURNS(2) (as of 10/31/03)
INCEPTION DATE 1 YEAR SINCE INCEPTION --------------------------------------------------------- Value A# 4/30/2001 18.43% -3.96% --------------------------------------------------------- Value A## 4/30/2001 11.94% -6.09% --------------------------------------------------------- Value B# 4/30/2001 17.58% -4.64% --------------------------------------------------------- Value B## 4/30/2001 12.58% -5.78% --------------------------------------------------------- Value C# 4/30/2001 17.58% -4.64% --------------------------------------------------------- Value C## 4/30/2001 15.40% -5.02% --------------------------------------------------------- Value Y# 4/30/2001 18.66% -3.63% ---------------------------------------------------------
# Without sales charge ## With sales charge PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS. Please see page 1 for important additional information including inception dates and expenses. PORTFOLIO MANAGER JOHN R. RYAN, CFA Senior Vice President, Managing Partner -------------------------------------------------------------------------------- HOW DID THE FUND PERFORM? The Hartford Value Fund Class A, before sales charge, returned 18.43% for the twelve-month period ended October 31, 2003. The Fund under-performed its benchmark, the Russell 1000 Value Index, which returned 22.87% and the Fund's Lipper Large-Cap Value peer group, which returned 20.8%. WHY DID THE FUND PERFORM THIS WAY? During the period, large-cap stocks continued to significantly lag small- and mid-cap stocks, while value slightly outperformed growth. All ten sectors of the Russell 1000 Value Index posted positive gains, with Information Technology, Financials and Consumer Discretionary leading the way. The Fund's under-performance during this period was due primarily to poor stock selection in Finance and Energy and our overweight position and poor stock selection in Telecommunications. Within Finance, the Fund's underweight position within Diversified Financials, an area that posted strong returns over the past year, hurt performance. Additionally, poor stock selection within Banks was a drag on performance. The three greatest detractors from performance were Micron Technology (Technology), Stanley Works (Household Durables), and SBC Communications (Telecommunications). SBC reported disappointing results for the third quarter as its margins were impacted by pension, health care and increased spending in DSL and long distance. However, SBC is making progress in its DSL business line. As of the end of the period, we trimmed SBC and eliminated the other two positions. These negatives were partially offset by positive contributions from stock selection in Health Care, in particular Health Care Equipment, and Industrials. Additionally, the combination of our overweight position and strong stock selection in Technology also boosted performance. The top three contributors to performance during the period were Citigroup (Financials), Comcast (Media), and Caterpillar (Capital Goods). Citigroup has executed well, controlled costs and is leveraged to improving global capital markets. Comcast has executed its merger plans for the acquired AT&T properties well and is on track to bring the old AT&T margins up to the levels of the old Comcast systems. Caterpillar is seeing strengthening demand and cost reduction efforts drive earnings higher. As of the end of the period, all three stocks were held in the portfolio. WHAT IS YOUR OUTLOOK? Economic stimulus from fiscal, monetary, and dollar policies, aided by the self-healing mechanisms embedded in the economy, led us to expect an improvement in growth in the second half of the year. With the third quarter Gross Domestic Product growth in excess of 4%, our thesis remains intact. The only things that have changed are the sharp equity market rally and the heightened sensitivity of policy makers to structural issues that have become obvious over the last three months. Despite an economic expansion that is nearly two years old, investors in the US and abroad share a sense of unease as a result of a jobless recovery, unbalanced dependence on consumer spending, and unsustainable deficits. Given this outlook, we continue to build positions in long-cycle companies and believe that long-term, the fund is well positioned to benefit from the recovering economy. 34 The Hartford Value Opportunities Fund (subadvised by Wellington Management Company, LLP) PERFORMANCE OVERVIEW(4,6) 1/2/96 - 10/31/03 Growth of a $10,000 investment in Class A which includes Sales Charge (LINE GRAPH)
VALUE OPPORTUNITIES FUND RUSSELL 3000 VALUE INDEX ------------------------ ------------------------ 1/2/96 9450 10000 9478 10288 9611 10373 9904 10554 10140 10617 10319 10763 10329 10758 9800 10334 10159 10647 10660 11055 10/96 10697 11451 11321 12260 11329 12159 11716 12706 11861 12887 11426 12436 11842 12923 12529 13675 12838 14273 13544 15299 13070 14829 13689 15734 10/97 13302 15295 13883 15921 14139 16392 14225 16154 15053 17230 15655 18250 15698 18369 15344 18060 15526 18261 14967 17839 12741 15172 13236 16041 10/98 14053 17220 14860 17995 15324 18603 15539 18708 15122 18367 15515 18709 16586 20452 16205 20287 16848 20887 16325 20284 15813 19533 15158 18871 10/99 15824 19850 15836 19711 16679 19839 16013 19201 15104 17949 17408 19979 17536 19769 17767 19943 16666 19133 17012 19399 18304 20464 17831 20632 10/00 19213 21102 18540 20341 19821 21435 20764 21551 20145 20990 19103 20277 20539 21266 20553 21749 20370 21362 19793 21287 18723 20487 16625 18987 10/01 16879 18867 18126 19982 19030 20506 18472 20379 18337 20418 18940 21426 17704 20805 17282 20844 15685 19706 14329 17793 14555 17912 12807 15970 10/02 13952 17085 15067 18180 14163 17391 13817 16965 13395 16505 13380 16543 14947 17655 16107 19218 16288 19464 16499 19802 17207 20143 17207 19943 10/03 18307 21194
--- VALUE OPPORTUNITIES FUND --- RUSSELL 3000 VALUE INDEX $9,450 starting value $10,000 starting value $18,307 ending value $21,194 ending value
PORTFOLIO MANAGERS JAMES H. AVERILL Senior Vice President, Partner JAMES N. MORDY Senior Vice President, Partner DAVID R. FASSNACHT, CFA Senior Vice President, Partner AVERAGE ANNUAL TOTAL RETURNS(4,5) (as of 10/31/03)
INCEPTION SINCE DATE 1 YEAR 5 YEAR INCEPTION ----------------------------------------------------------- Value Opp A# 1/2/1996 31.21% 5.43% 8.81% ----------------------------------------------------------- Value Opp A## 1/2/1996 23.98% 4.25% 8.03% ----------------------------------------------------------- Value Opp B# 1/2/1996 30.43% 4.65% 8.02% ----------------------------------------------------------- Value Opp B## 1/2/1996 25.43% 4.35% 8.02% ----------------------------------------------------------- Value Opp C# 1/2/1996 30.28% 4.65% 8.01% ----------------------------------------------------------- Value Opp C## 1/2/1996 27.98% 4.27% 7.87% ----------------------------------------------------------- Value Opp H# 1/2/1996 30.40% 4.67% 8.02% ----------------------------------------------------------- Value Opp H## 1/2/1996 26.40% 4.37% 8.02% ----------------------------------------------------------- Value Opp L# 1/2/1996 31.21% 5.43% 8.81% ----------------------------------------------------------- Value Opp L## 1/2/1996 25.00% 4.41% 8.14% ----------------------------------------------------------- Value Opp M# 1/2/1996 30.28% 4.65% 8.02% ----------------------------------------------------------- Value Opp M## 1/2/1996 26.28% 4.35% 8.02% ----------------------------------------------------------- Value Opp N# 1/2/1996 30.40% 4.67% 8.02% ----------------------------------------------------------- Value Opp N## 1/2/1996 29.40% 4.67% 8.02% ----------------------------------------------------------- Value Opp Y# 2/19/2002 31.40% NA 1.36% -----------------------------------------------------------
# Without sales charge ## With sales charge NA Not applicable PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS. Please see page 1 for important additional information including inception dates and expenses. -------------------------------------------------------------------------------- HOW DID THE FUND PERFORM? For the 12-month period ended October 31, 2003, The Hartford Value Opportunities Fund Class A, before sales charge, returned 31.21%. The Fund outperformed both the Russell 3000 Value Index, which returned 24.06% and the Lipper Multi Cap Value average, which returned 24.7% for the same period. WHY DID THE FUND PERFORM THIS WAY? After a strong start and solid performance for most of the period, US equity markets mostly treaded water during the third quarter of calendar year 2003 as investor enthusiasm cooled in the face of weaker than expected job growth and a weaker US dollar. In this environment, large-cap value stocks underperformed mid-cap stocks which underperformed small-cap stocks. Our significant overweight position in mid-cap and small-caps along with our underweight in large-caps versus the benchmark served us well during the period. The Fund outperformed its market benchmark during the period as a result of overall strong stock selection and sector allocation. Our overweight and strong stock selection in Consumer Discretionary, including cable system operators, homebuilders, and specialty retailers, benefited relative performance as the sector reacted favorably to improving economic fundamentals. Also benefiting the Fund was strong stock selection in Industrials and Health Care helped by such securities as Continental Airlines (Industrials), and Health Net (Health Care). Continental Airlines reported strong earnings in the third quarter of 2003 and the mix of good product, strong alliances, and focused management all were positives during the period. However, detracting from relative performance was our overweight position in Health Care combined with unfavorable performance from our Financials holdings such as Freddie Mac, which is being held to a higher standard after the accounting problems in 2002. During the period the Fund's top contributors to performance were Comcast (Consumer Discretionary), Citigroup (Financials), and Tyco International (Industrials) while Micron Technology (Information Technology), IMC Global (Materials), and BJ's Wholesale (Consumer Staples) detracted the most from overall absolute performance. We have eliminated our positions in Micron Technology and BJ's Wholesale. We expect stocks invested through our low Price Earnings approach to outperform over the long term. Value stocks, particularly on the large-cap side, have lagged the overall market in 2003, as small-cap and "growthier" equities have had their day in the sun. As a result, we are finding such large value companies increasingly attractive, and they are gaining a higher weighting in the portfolio. At some point, we would expect the market's frothier areas to retreat in cases where they are unable to obtain the sales and earnings growth necessary to support the current, let alone higher valuations. In that kind of market, we would look for better relative performance from the "solid citizens," large, low Price Earnings companies with good relative returns on capital and decent growth prospects. WHAT IS YOUR OUTLOOK? Low interest rates, a weaker US dollar, and easy fiscal policy are providing stimulus that is without precedent in the last thirty years. Consumers are the main beneficiaries of these trends. While tax cuts and low interest rates provide a temporary boost to consumption, job creation needs to underpin the recovery. We expect to see a modest uptick in employment by the fourth quarter, followed by a self-sustaining upturn in jobs and consumption next year. Overall, relative to our market benchmark, the Fund is currently overweight Consumer Discretionary and Health Care and we are underweight Financials, Telecommunications, and Utilities. 35 THE HARTFORD ADVISERS FUND SCHEDULE OF INVESTMENTS OCTOBER 31, 2003 (000'S OMITTED) --------------------------------------------------------------------------------
MARKET SHARES VALUE(C) --------- ---------- COMMON STOCK -- 69.3% BASIC MATERIALS -- 4.7% 202 3M Co. ........................................... $ 15,932 813 Alcoa, Inc. ...................................... 25,670 483 Dow Chemical Co. ................................. 18,191 376 DuPont (E.I.) de Nemours & Co. ................... 15,202 800 Gillette Co. (with rights)........................ 25,520 446 International Paper Co. .......................... 17,538 ---------- 118,053 ---------- CAPITAL GOODS -- 2.2% 272 Illinois Tool Works, Inc. ........................ 20,006 181 Northrop Grumman Corp. (with rights).............. 16,172 223 United Technologies Corp. ........................ 18,894 ---------- 55,072 ---------- CONSUMER CYCLICAL -- 6.5% 321 Caterpillar, Inc. (with rights)................... 23,501 693 Costco Wholesale Corp.(a)......................... 24,518 1,014 Gap, Inc. ........................................ 19,337 950 Home Depot, Inc. ................................. 35,217 151 Kohl's Corp.(a)................................... 8,489 486 Masco Corp. (with rights)......................... 13,376 311 NIKE, Inc. Class B................................ 19,879 429 Target Corp. (with rights)........................ 17,029 ---------- 161,346 ---------- CONSUMER STAPLES -- 4.8% 782 Coca-Cola Co. .................................... 36,262 393 General Mills, Inc. .............................. 17,635 711 PepsiCo, Inc. .................................... 34,005 224 Procter & Gamble Co. ............................. 22,017 175 Weyerhaeuser Co. ................................. 10,522 ---------- 120,441 ---------- ENERGY -- 3.6% 257 Chevron Texaco Corp. (with rights)................ 19,058 1,464 Exxon Mobil Corp. ................................ 53,549 353 Schlumberger Ltd. ................................ 16,585 ---------- 89,192 ---------- FINANCE AND INSURANCE -- 15.0% 446 American Express Co. ............................. 20,926 750 American International Group, Inc. ............... 45,652 454 Bank of America Corp. ............................ 34,374 687 Bank One Corp. ................................... 29,146 1,363 Citigroup, Inc. .................................. 64,626 222 Fannie Mae........................................ 15,901 192 Franklin Resources, Inc. ......................... 9,114 323 HSBC Holdings plc ADR............................. 24,216 337 KeyCorp........................................... 9,523 454 Marsh & McLennan Companies, Inc. (with rights).... 19,421 425 Merrill Lynch & Co., Inc. ........................ 25,166 335 Morgan Stanley (with rights)...................... 18,404
MARKET SHARES VALUE(C) --------- ---------- FINANCE AND INSURANCE -- (CONTINUED) 347 State Street Corp. (with rights).................. $ 18,143 900 Travelers Property Casualty Corp. Class B......... 14,733 406 U.S. Bancorp (with rights)........................ 11,051 304 Wachovia Corp. (with rights)...................... 13,958 ---------- 374,354 ---------- HEALTH CARE -- 9.2% 525 Abbott Laboratories (with rights)................. 22,358 260 Amgen, Inc. (with rights)(a)...................... 16,070 173 Cardinal Health, Inc. ............................ 10,266 255 Genzyme Corp.(a).................................. 11,714 395 HCA, Inc. ........................................ 15,109 304 Johnson & Johnson................................. 15,310 547 Lilly (Eli) & Co. (with rights)................... 36,414 279 Merck & Co., Inc. ................................ 12,333 2,135 Pfizer, Inc. (with rights)........................ 67,459 507 Wyeth (with rights)............................... 22,361 ---------- 229,394 ---------- SERVICES -- 6.3% 792 Accenture Ltd. Class A(a)......................... 18,521 280 Automatic Data Processing, Inc. .................. 10,582 644 Comcast Corp. Class A(a).......................... 21,833 463 Computer Sciences Corp.(a)........................ 18,340 270 FedEx Corp. ...................................... 20,470 147 Marriott International, Inc. Class A (with rights)......................................... 6,355 427 SAP AG ADR........................................ 15,599 444 Viacom, Inc. Class B.............................. 17,695 570 Walt Disney Co. .................................. 12,905 559 Waste Management, Inc. ........................... 14,484 ---------- 156,784 ---------- TECHNOLOGY -- 16.7% 434 Applied Materials, Inc.(a)........................ 10,150 1,572 Cisco Systems, Inc. (with rights)(a).............. 32,978 232 First Data Corp. ................................. 8,286 2,322 General Electric Co. ............................. 67,358 1,425 Hewlett-Packard Co. .............................. 31,796 1,731 Intel Corp. ...................................... 57,220 519 International Business Machines Corp. ............ 46,449 1,531 Liberty Media Corp. Class A(a).................... 15,443 186 Lockheed Martin Corp. ............................ 8,632 2,650 Microsoft Corp. .................................. 69,295 989 Oracle Corp. (with rights)(a)..................... 11,832 516 Texas Instruments, Inc. (with rights)............. 14,914 2,713 Time Warner, Inc.(a).............................. 41,483 ---------- 415,836 ---------- TRANSPORTATION -- 0.3% 273 CSX Corp. (with rights)........................... 8,677 ---------- Total common stock (cost $1,656,801)............................... $1,729,149 ==========
The accompanying notes are an integral part of this financial statement. 36 --------------------------------------------------------------------------------
STANDARD AND POOR'S PRINCIPAL RATING MARKET AMOUNT (UNAUDITED) VALUE(C) --------- ----------- ---------- ASSET BACKED AND COMMERCIAL MORTGAGE SECURITIES -- 2.7% FINANCE -- 1.8% $ 10,000 Chase Manhattan Auto Owner Trust, 4.21%, Ser 2002-B Class A4 01/15/2009........... AAA $ 10,365 10,000 Citibank Credit Card Issuance Trust, 5.65%, Ser 2001-A6 Class A6 06/16/2008.......... AAA 10,762 1,000 Citibank Credit Card Master Trust I, 6.90%, Ser 1999-7 Class B 11/15/2006............ A 1,054 10,000 MBNA Credit Card Master Note Trust, 4.95%, Ser 2002-A1 Class A1 06/15/2009.......... AAA 10,652 10,000 Peco Energy Transition Trust, 6.13%, Ser 1999-A Class A7 03/01/2009........... AAA 11,024 1,500 Standard Credit Card Master Trust, 8.45%, Ser 1995-1 Class B 01/07/2007............ A 1,618 ---------- 45,475 ---------- TRANSPORTATION -- 0.4% 10,000 Connecticut RRB Special Purpose Trust CL&P-1, 6.21%, Ser 2001-1 Class A5 12/30/2011........... AAA 11,191 ---------- UTILITIES -- 0.5% 10,000 PSE&G Transition Funding LLC, 6.61%, Ser 2001-1 Class A6 06/15/2015........... AAA 11,312 ---------- Total asset backed and commercial mortgage securities (cost $65,062)....................... $ 67,978 ========== CORPORATE BONDS: INVESTMENT GRADE -- 13.6% BASIC MATERIALS -- 1.3% 4,000 Alcan, Inc., 6.45%, 03/15/2011............................... A- 4,431 7,000 Alcoa, Inc., 7.375%, 08/01/2010.............................. A- 8,161 500 ICI Wilmington, Inc., 6.95%, 09/15/2004............................... BBB 519 7,000 Rohm & Haas Co., 7.40%, 07/15/2009............................... BBB+ 8,185
STANDARD AND POOR'S PRINCIPAL RATING MARKET AMOUNT (UNAUDITED) VALUE(C) --------- ----------- ---------- BASIC MATERIALS -- (CONTINUED) $ 4,000 Vulcan Materials Co., 5.75%, 04/01/2004............................... A+ $ 4,066 7,000 Westvaco Corp., 7.95%, 02/15/2031............................... BBB 7,992 ---------- 33,354 ---------- CAPITAL GOODS -- 0.7% 5,000 Eaton Corp., 6.95%, 11/15/2004............................... A- 5,264 2,000 Pitney Bowes, Inc., 5.50%, 04/15/2004............................... AA 2,037 2,000 Rockwell International Corp., 6.70%, 01/15/2028............................... A 2,172 7,000 United Technologies Corp., 7.125%, 11/15/2010.............................. A 8,144 ---------- 17,617 ---------- CONSUMER CYCLICAL -- 0.9% 4,000 Albertson's, Inc., 6.55%, 08/01/2004............................... BBB 4,121 500 DaimlerChrysler N.A. Holding Corp., 7.40%, 01/20/2005............................... BBB 529 250 DaimlerChrysler N.A. Holding Corp., 7.75%, 01/18/2011............................... BBB 276 4,000 Dayton Hudson Corp., 5.875%, 11/01/2008.............................. A+ 4,378 250 Federated Department Stores, Inc., 6.30%, 04/01/2009............................... BBB+ 274 5,000 Home Depot, Inc., 6.50%, 09/15/2004............................... AA 5,219 250 Sysco Corp., 6.50%, 08/01/2028............................... AA- 269 6,000 Wal-Mart Stores, Inc., 6.875%, 08/10/2009.............................. AA 6,885 ---------- 21,951 ---------- CONSUMER STAPLES -- 2.3% 4,000 Anheuser-Busch Companies, Inc., 7.55%, 10/01/2030............................... A+ 4,897 5,000 Archer-Daniels-Midland Co., 7.00%, 02/01/2031............................... A+ 5,674 2,000 Archer-Daniels-Midland Co., 8.125%, 06/01/2012.............................. A+ 2,447 7,000 Clorox Co., 6.125%, 02/01/2011.............................. A+ 7,719 4,000 Coca-Cola Enterprises, Inc., 5.75%, 11/01/2008............................... A 4,357 2,000 Colgate-Palmolive Co., 5.58%, 11/16/2008............................... Aa3* 2,181 4,906 ConAgra Foods, Inc., 6.70%, 08/01/2027............................... BBB+ 5,557
The accompanying notes are an integral part of this financial statement. 37 THE HARTFORD ADVISERS FUND SCHEDULE OF INVESTMENTS -- (CONTINUED) OCTOBER 31, 2003 (000'S OMITTED) --------------------------------------------------------------------------------
STANDARD AND POOR'S PRINCIPAL RATING MARKET AMOUNT (UNAUDITED) VALUE(C) --------- ----------- ---------- CORPORATE BONDS: INVESTMENT GRADE -- (CONTINUED) CONSUMER STAPLES -- (CONTINUED) $ 2,000 Hershey Foods Corp., 7.20%, 08/15/2027............................... A+ $ 2,316 500 Pepsi Bottling Group, Inc., 7.00%, Ser B 03/01/2029......................... A 570 7,000 PepsiAmericas, Inc., 5.95%, 02/15/2006............................... A 7,539 3,000 PepsiAmericas, Inc., 6.375%, 05/01/2009.............................. A 3,337 250 Procter & Gamble Co., 6.875%, 09/15/2009.............................. AA- 288 7,000 Procter & Gamble Co., 9.36%, Ser A 01/01/2021......................... AA- 9,371 ---------- 56,253 ---------- ENERGY -- 0.5% 7,000 Atlantic Richfield Co., 5.90%, 04/15/2009............................... AA+ 7,731 500 Conoco, Inc., 6.95%, 04/15/2029............................... A- 560 4,000 National Fuel Gas Co., 6.00%, 03/01/2009............................... BBB+ 4,311 ---------- 12,602 ---------- FINANCE -- 4.4% 4,000 ACE INA Holdings, Inc., 8.30%, 08/15/2006............................... BBB+ 4,543 2,000 Allstate Corp., 6.75%, 05/15/2018............................... A+ 2,260 250 American General Corp., 6.625%, 02/15/2029.............................. AAA 269 1,420 AmerUs Group Co., 6.95%, 06/15/2005............................... BBB+ 1,496 500 Aristar, Inc., 7.25%, 06/15/2006............................... A- 558 4,000 AXA Financial, Inc., 7.00%, 04/01/2028............................... A 4,408 3,000 Bank One Corp., 6.50%, 02/01/2006............................... A 3,276 3,000 Bank One Corp., 6.875%, 08/01/2006.............................. A 3,331 2,000 Bayerische Landesbank NY, 5.65%, 02/01/2009............................... AAA 2,176 250 Boeing Capital Corp., 6.10%, 03/01/2011............................... A 266 500 BSCH Issuance Ltd., 7.625%, 11/03/2009.............................. A- 586 500 Citigroup, Inc., 6.50%, 01/18/2011............................... AA- 563 2,725 ERAC USA Finance Co., 7.35%, 06/15/2008(e)............................ BBB+ 3,109 10,000 Financing Corp., 9.80%, 04/06/2018............................... Aaa* 14,660 545 First Union National Bank, 5.80%, 12/01/2008............................... A 595
STANDARD AND POOR'S PRINCIPAL RATING MARKET AMOUNT (UNAUDITED) VALUE(C) --------- ----------- ---------- FINANCE -- (CONTINUED) $ 500 General Motors Acceptance Corp., 6.15%, 04/05/2007............................... BBB $ 528 250 Heller Financial, Inc., 6.375%, 03/15/2006.............................. AAA 273 500 Household Finance Corp., 6.00%, 05/01/2004............................... A 512 4,000 International Lease Finance Corp., 5.75%, 02/15/2007............................... AA- 4,318 500 J.P. Morgan Chase & Co., 6.75%, 02/01/2011............................... A 561 2,000 Jackson National Life Insurance Co., 8.15%, 03/15/2027(e)............................ A+ 2,289 4,000 John Hancock Financial Services, Inc., 7.375%, 02/15/2024(e)........................... A+ 4,515 2,755 Key Bank N.A., Inc., 5.80%, 04/01/2004............................... A 2,804 250 KeyCorp Capital II, 6.875%, 03/17/2029.............................. BBB 260 250 Korea Development Bank, 7.125%, 04/22/2004.............................. A- 256 5,000 Liberty Mutual Insurance, 8.20%, 05/04/2007(e)............................ BBB+ 5,400 1,000 MBIA, Inc., 7.00%, 12/15/2025............................... AA 1,075 250 National City Corp., 6.875%, 05/15/2019.............................. A- 284 500 NBD Bancorp, Inc., 7.125%, 05/15/2007.............................. A- 563 3,100 New England Mutual Life Insurance Co., 7.875%, 02/15/2024(e)........................... A+ 3,578 7,000 Provident Companies, Inc., 7.00%, 07/15/2018............................... BBB- 6,983 2,000 Prudential Funding LLC, 6.75%, 09/15/2023(e)............................ A2* 2,066 500 Prudential Insurance Co. of America, 6.375%, 07/23/2006(e)........................... A+ 548 500 ReliaStar Financial Corp., 8.00%, 10/30/2006............................... A+ 567 250 Republic New York Capital I, 7.75%, 11/15/2026............................... A- 268 500 Salomon Smith Barney Holdings, Inc., 5.875%, 03/15/2006.............................. AA- 538 4,000 St. Paul Companies, Inc., 5.75%, 03/15/2007............................... BBB+ 4,270 200 State Street Corp., 7.65%, 06/15/2010............................... A+ 238 500 Texaco Capital, Inc., 8.625%, 06/30/2010.............................. AA 627
The accompanying notes are an integral part of this financial statement. 38 --------------------------------------------------------------------------------
STANDARD AND POOR'S PRINCIPAL RATING MARKET AMOUNT (UNAUDITED) VALUE(C) --------- ----------- ---------- CORPORATE BONDS: INVESTMENT GRADE -- (CONTINUED) FINANCE -- (CONTINUED) $ 500 Textron Financial Corp., 7.125%, 12/09/2004.............................. A- $ 526 3,000 Torchmark Corp., 8.25%, 08/15/2009............................... A+ 3,484 2,000 Toyota Motor Credit Corp., 5.50%, 12/15/2008............................... AAA 2,178 4,000 UnitedHealth Group, Inc., 7.50%, 11/15/2005............................... A 4,406 250 Verizon Global Funding Corp., 7.25%, 12/01/2010............................... A+ 286 250 Verizon Global Funding Corp., 7.75%, 12/01/2030............................... A+ 289 3,000 Wachovia Corp., 5.625%, 12/15/2008.............................. A- 3,239 4,000 Wells Fargo Bank N.A., 6.45%, 02/01/2011............................... AA- 4,471 4,165 XL Capital Europe plc, 6.50%, 01/15/2012............................... A+ 4,542 ---------- 108,838 ---------- HEALTH CARE -- 0.8% 4,000 Becton, Dickinson & Co., 6.70%, 08/01/2028............................... A+ 4,386 4,000 Bristol-Myers Squibb Co., 5.75%, 10/01/2011............................... AA- 4,279 4,000 Cardinal Health, Inc., 6.75%, 02/15/2011............................... A 4,569 3,000 Pharmacia Corp., 6.60%, 12/01/2028............................... AAA 3,336 4,000 Wyeth, 6.70%, 03/15/2011............................... A 4,495 ---------- 21,065 ---------- SERVICES -- 1.1% 250 Clear Channel Communications, Inc., 7.65%, 09/15/2010............................... BBB- 291 7,000 Comcast Cable Communications, Inc., 6.875%, 06/15/2009.............................. BBB 7,828 500 Comcast Cable Communications, Inc., 8.50%, 05/01/2027............................... BBB 605 7,000 USA Networks, Inc., 6.75%, 11/15/2005............................... BBB- 7,489 7,000 Walt Disney Co., 6.375%, 03/01/2012.............................. BBB+ 7,640 3,000 Washington Post Co., 5.50%, 02/15/2009............................... A+ 3,239 250 Waste Management, Inc., 7.375%, 08/01/2010.............................. BBB 289 ---------- 27,381 ----------
STANDARD AND POOR'S PRINCIPAL RATING MARKET AMOUNT (UNAUDITED) VALUE(C) --------- ----------- ---------- TECHNOLOGY -- 0.9% $ 2,545 AT&T Corp., 8.50%, 11/15/2031............................... BBB $ 2,886 500 Cox Communications, Inc., 6.40%, 08/01/2008............................... BBB 547 2,000 Danaher Corp., 6.00%, 10/15/2008............................... A+ 2,192 250 GTE Corp., 7.51%, 04/01/2009............................... A+ 286 5,000 Hewlett-Packard Co., 7.15%, 06/15/2005............................... A- 5,397 250 Koninklijke KPN N.V., 8.375%, 10/01/2030.............................. BBB+ 312 500 Lockheed Martin Corp., 7.65%, 05/01/2016............................... BBB 602 1,000 New York Telephone Co., 6.00%, 04/15/2008............................... A+ 1,088 400 Raytheon Co., 7.20%, 08/15/2027............................... BBB- 428 7,055 Sprint Capital Corp., 6.125%, 11/15/2008.............................. BBB- 7,431 250 Sprint Capital Corp., 6.875%, 11/15/2028.............................. BBB- 235 250 Sprint Capital Corp., 7.625%, 01/30/2011.............................. BBB- 275 250 Telecomunicaciones de Puerto Rico, Inc., 6.65%, 05/15/2006............................... BBB+ 271 500 Telefonica Europe B.V., 7.35%, 09/15/2005............................... A 545 500 Time Warner Companies, Inc., 6.875%, 06/15/2018.............................. BBB+ 538 500 Vodafone Group plc, 7.875%, Ser B 02/15/2030........................ A 601 ---------- 23,634 ---------- TRANSPORTATION -- 0.3% 6,000 Burlington Northern Sante Fe Corp., 7.875%, 04/15/2007.............................. BBB+ 6,967 750 CSX Corp., 7.90%, 05/01/2017............................... BBB 908 250 Norfolk Southern Corp., 6.75%, 02/15/2011............................... BBB 281 ---------- 8,156 ---------- UTILITIES -- 0.4% 4,000 Alabama Power Co., 7.125%, Ser K 08/15/2004........................ A 4,180 500 Alabama Power Co., 7.125%, Ser L 10/01/2007........................ A 569 255 Chilquinta Energia Finance Co., 6.62%, 04/01/2011(e)............................ AAA 279 2,000 Kansas City Power & Light Co., 7.125%, 12/15/2005.............................. BBB 2,191
The accompanying notes are an integral part of this financial statement. 39 THE HARTFORD ADVISERS FUND SCHEDULE OF INVESTMENTS -- (CONTINUED) OCTOBER 31, 2003 (000'S OMITTED) --------------------------------------------------------------------------------
STANDARD AND POOR'S PRINCIPAL RATING MARKET AMOUNT (UNAUDITED) VALUE(C) --------- ----------- ---------- CORPORATE BONDS: INVESTMENT GRADE -- (CONTINUED) UTILITIES -- (CONTINUED) $ 189 Niagara Mohawk Power Corp., 7.625%, Ser F 10/01/2005........................ A- $ 207 1,150 Northern Border Pipeline Co., 7.75%, Ser A 09/01/2009......................... A- 1,360 250 TransCanada Pipelines Ltd., 6.49%, 01/21/2009............................... A- 273 ---------- 9,059 ---------- Total corporate bonds: investment grade (cost $309,171)................ $ 339,910 ========== CORPORATE BONDS: NON-INVESTMENT GRADE -- 0.0% SERVICES -- 0.0% 500 Park Place Entertainment Corp., 8.50%, 11/15/2006............................... BB+ $ 551 ---------- Total corporate bonds: non-investment grade (cost $498)................ $ 551 ==========
U.S. GOVERNMENT SECURITIES -- 10.4% FEDERAL NATIONAL MORTGAGE ASSOCIATION -- MORTGAGE BACKED SECURITIES -- 0.0% 252 6.30% 2008........................................ $ 276 19 9.00% 2016 -- 2021................................ 21 ---------- 297 ---------- GOVERNMENT NATIONAL MORTGAGE ASSOCIATION -- MORTGAGE BACKED SECURITIES -- 1.6% 13,172 6.00% 2023 -- 2031................................ 13,609 10,209 6.50% 2026 -- 2029................................ 10,702 12,398 7.00% 2023 -- 2032................................ 13,147 2,101 8.00% 2029 -- 2031................................ 2,267 220 9.00% 2023........................................ 243 ---------- 39,968 ---------- U.S. TREASURY SECURITIES -- 8.8% 120,000 2.00% 2005........................................ 120,544 20,000 2.125% 2004....................................... 20,172 70,000 6.25% 2023........................................ 79,002 ---------- 219,718 ---------- Total U.S. government securities (cost $257,686)....................................... $ 259,983 ========== Total long-term investments (cost $2,289,218)............................... $2,397,571 ==========
MARKET SHARES VALUE(C) --------- ---------- SHORT-TERM INVESTMENTS -- 7.2% SECURITIES PURCHASED WITH PROCEEDS FROM SECURITIES LENDING -- 3.9% 48,553 Evergreen Institutional Money Market Fund......... $ 48,550 45,886 Evergreen Prime Cash Management Money Market...... 48,575 ---------- 97,125 ---------- PRINCIPAL AMOUNT --------- FINANCE -- 3.3% $ 11,783 ABN AMRO Joint Repurchase Agreement, 1.00%, 11/03/03 (Note 2f)....................... 11,783 31,008 BNP Paribas Joint Repurchase Agreement, 1.00%, 11/03/03 (Note 2f)....................... 31,008 38,480 UBS Securities Joint Repurchase Agreement, 0.98%, 11/03/03 (Note 2f)....................... 38,480 ---------- 81,271 ---------- Total short-term investments (cost $178,396)................................. $ 178,396 ========== Total investments in securities (cost $2,467,614)(b).................................. $2,575,967 ==========
(a) Presently non-income producing. (b) At October 31, 2003, the cost of securities for federal income tax purposes is $2,487,475 and the aggregate gross unrealized appreciation and depreciation based on that cost was: Unrealized appreciation....................... $ 211,991 Unrealized depreciation....................... (123,499) --------- Net unrealized appreciation................... $ 88,492 =========
(c) See Note 2b of accompanying Notes to Financial Statements regarding valuation of securities. (d) Note: Percentage of investments as shown is the ratio of the total market value to total net assets. Market value of investments in foreign securities represents 2.08% of total net assets as of October 31, 2003. (e) Securities sold within the terms of a private placement memorandum, exempt from registration under Section 144A of the Securities Act of 1933, as amended, and may be sold only to dealers in that program or to other "accredited investors." Pursuant to guidelines adopted by the Board of Directors, these issues are deemed to be liquid. The aggregate value of these securities at October 31, 2003, was $21,784, which represents 0.87% of total net assets. * Moody's Rating The accompanying notes are an integral part of this financial statement. 40 -------------------------------------------------------------------------------- STATEMENT OF ASSETS AND LIABILITIES: ASSETS Investments in securities, at value; (cost $2,467,614)@ ................................... $2,575,967 Cash.............................................. 5 Receivables: Investment securities sold...................... 3,592 Fund shares sold................................ 8,603 Dividends and interest.......................... 9,567 Other assets...................................... 150 ---------- Total assets...................................... 2,597,879 ---------- LIABILITIES Payables: Payable upon return of securities loaned (Note 2d)........................................... 97,125 Fund shares redeemed............................ 4,049 Payable for investment advisory and management fees (Note 3)................................. 1,345 Payable for distribution fees (Note 3).......... 198 Accrued expenses.................................. 891 ---------- Total liabilities................................. 103,603 ---------- Net assets........................................ $2,494,276 ========== @ Market value of securities on loan $91,360.
SUMMARY OF NET ASSETS: Capital stock and paid-in-capital, par value $0.001 per share; 760,000 shares authorized; 176,188 shares outstanding...................... $2,761,928 Accumulated undistributed net investment income... 1,671 Accumulated net realized loss on investments...... (377,676) Unrealized appreciation of investments in securities...................................... 108,353 ---------- Net assets........................................ $2,494,276 ==========
Class A Net asset value per share ($1,470,569 / 103,609 shares outstanding)........................................ $14.19 ------ Maximum offering price per share ($14.19 / 94.5%)... $15.02 ====== Class B Net asset value per share ($593,179 / 42,232 shares outstanding)...................................... $14.05 ====== Class C Net asset value per share ($421,814 / 29,741 shares outstanding)...................................... $14.18 ------ Maximum offering price per share ($14.18 / 99.0%)... $14.32 ====== Class Y Net asset value per share ($8,714 / 606 shares outstanding)...................................... $14.37 ======
The accompanying notes are an integral part of this financial statement. 41 THE HARTFORD CAPITAL APPRECIATION FUND SCHEDULE OF INVESTMENTS OCTOBER 31, 2003 (000'S OMITTED) --------------------------------------------------------------------------------
MARKET SHARES VALUE(C) --------- ---------- COMMON STOCK -- 87.5% BASIC MATERIALS -- 12.0% 1,213 3M Co. ........................................... $ 95,653 400 Alcoa, Inc. ...................................... 12,628 259 AngloGold Ltd. ADR................................ 10,008 990 Companhia Vale do Rio Doce ADR.................... 45,271 1,629 CONSOL Energy 1 Pipe Private Placement(f)......... 31,809 1,077 Engelhard Corp. (with rights)..................... 30,772 1,069 Falconbridge Ltd. ................................ 20,845 1,462 Freeport-McMoRan Copper & Gold, Inc. Class B (with rights)......................................... 56,633 1,416 Kimberly-Clark Corp. ............................. 74,774 524 Mining and Metallurgical Co. Norilsk Nickel ADR... 26,981 652 Peabody Energy Corp. ............................. 21,724 2,500 Sappi Ltd. ADR.................................... 32,000 4,095 Smurfit-Stone Container Corp. (with rights)(a).... 63,476 1,750 Tek Cominco Ltd. Class B.......................... 22,834 ---------- 545,408 ---------- CAPITAL GOODS -- 5.1% 1,095 Deere & Co. (with rights)......................... 66,373 1,153 Honeywell International, Inc. .................... 35,299 1,071 Pall Corp. (with rights).......................... 25,057 4,959 Tyco International Ltd. (with rights)............. 103,546 ---------- 230,275 ---------- CONSUMER CYCLICAL -- 5.6% 38 Cheesecake Factory, Inc. (with rights)(a)......... 1,506 807 Foster Wheeler Ltd.(a)............................ 936 3,833 Gap, Inc. ........................................ 73,128 889 Neiman Marcus Group, Inc. Class A(a).............. 42,281 2,094 Penney (J.C.) Co., Inc. .......................... 49,533 2,978 Toyota Motor Corp. ............................... 84,779 ---------- 252,163 ---------- CONSUMER STAPLES -- 1.2% 2,001 Bunge Ltd. ....................................... 54,227 ---------- ENERGY -- 8.2% 893 Burlington Resources, Inc. (with rights).......... 43,436 1,609 China Petroleum & Chemical Corp. ADR.............. 52,753 1,700 Halliburton Co. (with rights)..................... 40,596 2,107 Rio Tinto plc..................................... 51,105 6,200 Sasol Ltd. ADR.................................... 82,150 723 Valero Energy Corp. .............................. 30,864 2,906 XTO Energy, Inc. (with rights).................... 68,787 ---------- 369,691 ---------- FINANCE AND INSURANCE -- 17.6% 3,100 ACE Ltd. ADR (with rights)........................ 111,600 268 Ambac Financial Group, Inc. ...................... 18,979 181 American International Group, Inc. ............... 10,995 2,131 Bank One Corp. ................................... 90,440 2,771 Citigroup, Inc. .................................. 131,322 701 Countrywide Financial Corp. ...................... 73,700 1,150 FleetBoston Financial Corp. (with rights)......... 46,449
MARKET SHARES VALUE(C) --------- ---------- FINANCE AND INSURANCE -- (CONTINUED) 1,284 Freddie Mac....................................... $ 72,054 600 Golden West Financial Corp. ...................... 60,258 2,398 ICICI Bank Ltd.(a)(f)............................. 13,071 934 iStar Financial, Inc. ............................ 35,537 2,360 Medco Health Solutions, Inc.(a)................... 78,345 1,206 St. Paul Companies, Inc. ......................... 45,992 125 UBS AG............................................ 7,676 ---------- 796,418 ---------- HEALTH CARE -- 8.5% 482 Biovail Corp.(a).................................. 11,602 54 Bright Horizons Family Solutions, Inc.(a)......... 2,315 456 Cardinal Health, Inc. ............................ 27,065 1,094 Forest Laboratories, Inc. (with rights)(a)........ 54,726 1,596 Guidant Corp. .................................... 81,407 1,664 HCA, Inc. ........................................ 63,633 1,471 IVAX Corp.(a)..................................... 28,339 1,000 King Pharmaceuticals, Inc.(a)..................... 13,400 2,387 McKesson Corp. ................................... 72,245 800 Schering-Plough Corp. (with rights)............... 12,216 500 Watson Pharmaceuticals, Inc.(a)................... 19,635 ---------- 386,583 ---------- SERVICES -- 5.8% 1,751 Comcast Corp. Special Class A(a).................. 57,108 929 Computer Sciences Corp.(a)........................ 36,795 2,175 InterActive Corp.(a).............................. 79,833 400 Manpower, Inc. ................................... 18,560 2,386 Waste Management, Inc. ........................... 61,835 384 Wynn Resorts Ltd.(a).............................. 7,737 ---------- 261,868 ---------- TECHNOLOGY -- 21.5% 1,547 America Movil S.A. de C.V. Ser L ADR.............. 36,811 2,000 Cisco Systems, Inc. (with rights)(a).............. 41,960 4,850 Corning, Inc.(a).................................. 53,253 425 Emerson Electric Co. (with rights)................ 24,119 8,240 Hon Hai Precision Industry Co. Ltd. .............. 36,866 840 International Business Machines Corp. ............ 75,190 1,500 Liberty Media Corp. Class A(a).................... 15,135 2,600 Motorola, Inc. (with rights)...................... 35,178 2,203 MTN Group Ltd.(a)................................. 7,891 8,031 Nextel Communications, Inc. Class A(a)............ 194,355 10,273 Nortel Networks Corp.(a).......................... 45,714 692 QUALCOMM, Inc. ................................... 32,880 1,652 Sabre Holdings Corp. ............................. 36,200 314 Samsung Electronics Co. Ltd. ..................... 124,507 200 Sony Corp. ADR.................................... 7,040 24,505 Taiwan Semiconductor Manufacturing Co. Ltd.(a).... 48,325 4,512 Telenor ASA(f).................................... 24,565 4,498 Time Warner, Inc.(a).............................. 68,776 2,589 VeriSign, Inc. (with rights)(a)................... 41,091 537 Yahoo!, Inc. (with rights)(a)..................... 23,454 ---------- 973,310 ----------
The accompanying notes are an integral part of this financial statement. 42 --------------------------------------------------------------------------------
MARKET SHARES VALUE(C) --------- ---------- COMMON STOCK -- (CONTINUED) TRANSPORTATION -- 0.7% 1,061 CSX Corp. (with rights)........................... $ 33,767 ---------- UTILITIES -- 1.3% 400 FPL Group, Inc. (with rights)..................... 25,496 1,395 TXU Corp. (with rights)........................... 31,825 ---------- 57,321 ---------- Total common stock (cost $3,258,552).............. $3,961,031 ========== PREFERRED STOCKS -- 1.2% ENERGY -- 1.2% 2,415 Petroleo Brasileiro S.A. ADR...................... $ 52,539 ---------- TECHNOLOGY -- 0.0% 1,205 SensAble Technologies, Inc. Class C Private Placement(e)(g)................................. 1,205 ---------- Total preferred stocks (cost $43,676)............. $ 53,744 ========== Total long-term investments (cost $3,302,228)............................... $4,014,775 ========== SHORT-TERM INVESTMENTS -- 18.1% SECURITIES PURCHASED WITH PROCEEDS FROM SECURITIES LENDING -- 5.7% 150,000 Wells Fargo Cash Investment Fund.................. $ 150,000 50,000 Dreyfus Cash Management No. 2..................... 50,000 ---------- 200,000 ---------- PRINCIPAL AMOUNT --------- $ 56,039 Bear Stearns & Co. Repo, 1.07%, 11/3/2003......... 56,039 ---------- 256,039 ---------- FINANCE -- 12.4% 81,443 ABN AMRO Joint Repurchase Agreement, 1.00%, 11/03/03 (Note 2f)....................... 81,443 214,326 BNP Paribas Joint Repurchase Agreement, 1.00%, 11/03/03 (Note 2f)....................... 214,326 265,981 UBS Securities Joint Repurchase Agreement, 0.98%, 11/03/03 (Note 2f)....................... 265,981 ---------- 561,750 ---------- Total short-term investments (cost $817,789)...... $ 817,789 ========== Total investments in securities (cost $4,120,017)(b).................................. $4,832,564 ==========
(a) Presently non-income producing. (b) At October 31, 2003, the cost of securities for federal income tax purposes is $4,122,387 and the aggregate gross unrealized appreciation and depreciation based on that cost was: Unrealized appreciation........................ $779,611 Unrealized depreciation........................ (69,521) -------- Net unrealized appreciation.................... $710,090 ========
(c) See Note 2b of accompanying Notes of Financial Statements regarding valuation of securities. (d) Note: Percentage of investments as shown is the ratio of the total market value to total net assets. Market value of investments in foreign securities represents 18.67% of total net assets as of October 31, 2003. (e) Restricted securities held (excluding 144A). These investments have been identified by portfolio management as illiquid securities:
PERIOD ACQUIRED SHARES SECURITY COST BASIS -------- ------ -------- ---------- 2000 1,205 SensAble Technologies, Inc. 4,000 Class C Private Placement
The aggregate value of this security at October 31, 20003, is $1,205 which represents 0.03% of net assets. (f) Securities sold within the terms of a private placement memorandum, exempt from registration under Section 144A of the Securities Act of 1933, as amended, and may be sold only to dealers in that program or to other "accredited investors". Pursuant to guidelines adopted by the Board of Directors, these issues are determined to be liquid. The aggregate value of these securities at October 31, 2003, was $69,445, which represents 1.53% of total net assets. (g) Security valued in good faith at fair value by, or under the direction of, the Funds' Board of Directors. The aggregate value of these securities as of October 31, 2003, was $1,205, which represents 0.03% of total net assets. The accompanying notes are an integral part of this financial statement. 43 THE HARTFORD CAPITAL APPRECIATION FUND SCHEDULE OF INVESTMENTS -- (CONTINUED) OCTOBER 31, 2003 (000'S OMITTED) -------------------------------------------------------------------------------- FORWARD FOREIGN CURRENCY CONTRACTS OUTSTANDING AS OF OCTOBER 31, 2003
UNREALIZED CONTRACT DELIVERY APPRECIATION DESCRIPTION MARKET VALUE AMOUNT DATE (DEPRECIATION) -------------------------------------------------- ------------ -------- --------- -------------- Canadian Dollar (Buy) $8,799 $8,842 11/3/2003 $(43) Canadian Dollar (Buy) 2,004 2,010 11/4/2003 (6) Canadian Dollar (Buy) 2,283 2,282 11/5/2003 1 South Africa Rand (Buy) 5,060 5,072 11/3/2003 (12) South Africa Rand (Buy) 518 515 11/4/2003 3 South Africa Rand (Buy) 361 361 11/5/2003 @@ South Africa Rand (Buy) 351 351 11/6/2003 @@ South Africa Rand (Buy) 369 370 11/7/2003 (1) ---- $(58) ====
@@Due to the presentation of the financial statements in thousands, the number or shares and/or dollars round to zero. STATEMENT OF ASSETS AND LIABILITIES: ASSETS Investments in securities, at value; (cost $3,558,267)@ ................................... $4,270,814 Repurchase agreements, at value; (cost $561,750)....................................... 561,750 Foreign currency on deposit with custodian (cost $2,315)......................................... 2,444 Unrealized appreciation in forward foreign currency contracts.............................. 4 Receivables: Investment securities sold...................... 46,899 Fund shares sold................................ 27,491 Dividends and interest.......................... 3,344 Other assets...................................... 258 ---------- Total assets...................................... 4,913,004 ---------- LIABILITIES Unrealized depreciation on forward foreign currency contracts.............................. 62 Payables: Payable upon return of securities loaned (Note 2d)........................................... 256,039 Investment securities purchased................. 119,874 Fund shares redeemed............................ 4,991 Payable for investment advisory and management fees (Note 3)................................. 2,500 Payable for distribution fees (Note 3).......... 382 Accrued Expenses.................................. 1,471 ---------- Total liabilities................................. 385,319 ---------- Net assets........................................ $4,527,685 ========== @ Market value of securities on loan $241,463 SUMMARY OF NET ASSETS: Capital stock and paid-in-capital, par value $0.001 per share; 620,000 shares authorized; 175,619 shares outstanding...................... $4,608,933 Accumulated undistributed net investment income... 58 Accumulated net realized loss on investments and foreign currency transactions................... (793,884) Unrealized appreciation of investments in securities and the translations of assets and liabilities denominated in foreign currency..... 712,578 ---------- Net assets........................................ $4,527,685 ==========
Class A Net asset value per share ($2,357,913 / 88,970 shares outstanding)............................... $26.50 ------ Maximum offering price per share($26.50 / 94.5%).... $28.04 ====== Class B Net asset value per share ($1,140,154 / 45,656 shares outstanding)............................... $24.97 ====== Class C Net asset value per share ($981,246 / 39,243 shares outstanding)...................................... $25.00 ------ Maximum offering price per share($25.00 / 99.0%).... $25.25 ====== Class Y Net asset value per share ($48,372 / 1,750 shares outstanding)...................................... $27.64 ======
The accompanying notes are an integral part of this financial statement. 44 THE HARTFORD DISCIPLINED EQUITY FUND SCHEDULE OF INVESTMENTS OCTOBER 31, 2003 (000'S OMITTED) --------------------------------------------------------------------------------
MARKET SHARES VALUE(C) --------- --------- COMMON STOCK -- 99.2% BASIC MATERIALS -- 3.6% 42 Fortune Brands, Inc. (with rights)................ $ 2,762 177 Gillette Co. (with rights)........................ 5,637 55 International Paper Co. .......................... 2,164 32 Kimberly-Clark Corp. ............................. 1,711 --------- 12,274 --------- CAPITAL GOODS -- 4.9% 48 General Dynamics Corp. ........................... 4,034 53 Graco, Inc. (with rights)......................... 2,019 37 Pitney Bowes, Inc. (with rights).................. 1,537 81 Tyco International Ltd. (with rights)............. 1,681 87 United Technologies Corp. ........................ 7,377 --------- 16,648 --------- CONSUMER CYCLICAL -- 7.8% 60 Avery Dennison Corp. (with rights)................ 3,134 128 Dollar General Corp. (with rights)................ 2,869 88 Federated Department Stores, Inc. ................ 4,204 165 Gap, Inc. ........................................ 3,144 31 General Motors Corp. ............................. 1,323 21 Johnson Controls, Inc. ........................... 2,204 64 Lowe's Companies, Inc. (with rights).............. 3,777 34 NIKE, Inc. Class B................................ 2,192 46 Supervalu, Inc. .................................. 1,158 40 Wal-Mart Stores, Inc. ............................ 2,352 --------- 26,357 --------- CONSUMER STAPLES -- 8.6% 158 Altria Group, Inc. ............................... 7,361 185 Coca-Cola Co. .................................... 8,566 77 Procter & Gamble Co. ............................. 7,578 96 Weyerhaeuser Co. ................................. 5,806 --------- 29,311 --------- ENERGY -- 4.4% 21 Amerada Hess Corp. ............................... 1,104 24 Chevron Texaco Corp. (with rights)................ 1,761 67 ConocoPhillips (with rights)...................... 3,852 142 Exxon Mobil Corp. ................................ 5,202 97 Unocal Corp. (with rights)........................ 3,070 --------- 14,989 --------- FINANCE AND INSURANCE -- 23.9% 33 Ambac Financial Group, Inc. ...................... 2,334 25 Anthem, Inc.(a)................................... 1,704 72 Bank of America Corp. ............................ 5,445 135 Bank One Corp. ................................... 5,735 32 Capital One Financial Corp. ...................... 1,946 312 Citigroup, Inc. .................................. 14,791 72 Countrywide Financial Corp. ...................... 7,527 94 Fannie Mae........................................ 6,739 44 Franklin Resources, Inc. ......................... 2,105 51 Freddie Mac....................................... 2,840 35 Goldman Sachs Group, Inc. ........................ 3,296 40 KeyCorp........................................... 1,136
MARKET SHARES VALUE(C) --------- --------- FINANCE AND INSURANCE -- (CONTINUED) 64 MBIA, Inc. ....................................... $ 3,809 62 Medco Health Solutions, Inc.(a)................... 2,072 108 Merrill Lynch & Co., Inc. ........................ 6,370 102 St. Paul Companies, Inc. ......................... 3,882 46 UnionBanCal Corp. ................................ 2,513 32 Wellpoint Health Networks, Inc.(a)................ 2,827 53 XL Capital Ltd. Class A (with rights)............. 3,697 --------- 80,768 --------- HEALTH CARE -- 11.7% 107 Abbott Laboratories (with rights)................. 4,552 65 Becton, Dickinson & Co. (with rights)............. 2,376 29 Cephalon, Inc.(a)................................. 1,343 76 CVS Corp. ........................................ 2,656 90 Genzyme Corp.(a).................................. 4,131 109 Guidant Corp. .................................... 5,580 69 Lilly (Eli) & Co. (with rights)................... 4,590 99 McKesson Corp. ................................... 3,006 35 Merck & Co., Inc. ................................ 1,558 192 Pfizer, Inc. (with rights)........................ 6,063 250 Schering-Plough Corp. (with rights)............... 3,821 --------- 39,676 --------- SERVICES -- 5.7% 105 Cendant Corp.(a).................................. 2,149 120 Comcast Corp. Class A(a).......................... 4,078 68 Comcast Corp. Special Class A(a).................. 2,228 38 FedEx Corp. ...................................... 2,879 41 Gannett Co., Inc. (with rights)................... 3,432 40 Omnicom Group, Inc. .............................. 3,152 52 Waste Management, Inc. ........................... 1,356 --------- 19,274 --------- TECHNOLOGY -- 25.2% 42 Adobe Systems, Inc. (with rights)................. 1,828 159 AT&T Corp. ....................................... 2,949 462 Cisco Systems, Inc. (with rights)(a).............. 9,695 147 Citizens Communications Co. (with rights)(a)...... 1,834 125 Dell, Inc. (with rights)(a)....................... 4,522 181 First Data Corp. ................................. 6,469 184 General Electric Co. ............................. 5,335 139 Intel Corp. ...................................... 4,587 84 International Business Machines Corp. ............ 7,472 547 Microsoft Corp. .................................. 14,314 281 Motorola, Inc. (with rights)...................... 3,803 77 National Semiconductor Corp.(a)................... 3,137 185 Nextel Communications, Inc. Class A(a)............ 4,470 323 Qwest Communications International, Inc.(a)....... 1,140 64 SBC Communications, Inc. ......................... 1,528 231 Texas Instruments, Inc. (with rights)............. 6,683 352 Time Warner, Inc.(a).............................. 5,379 --------- 85,145 --------- TRANSPORTATION -- 0.8% 84 CSX Corp. (with rights)........................... 2,686 ---------
The accompanying notes are an integral part of this financial statement. 45 THE HARTFORD DISCIPLINED EQUITY FUND SCHEDULE OF INVESTMENTS -- (CONTINUED) OCTOBER 31, 2003 (000'S OMITTED) --------------------------------------------------------------------------------
MARKET SHARES VALUE(C) --------- --------- COMMON STOCK -- (CONTINUED) UTILITIES -- 2.6% 30 Ameren Corp. ..................................... $ 1,330 96 Exelon Corp. ..................................... 6,073 59 TXU Corp. (with rights)........................... 1,342 --------- 8,745 --------- Total common stock (cost $308,366)................................. $ 335,873 ========= PRINCIPAL AMOUNT --------- SHORT-TERM INVESTMENTS -- 0.2% FINANCE -- 0.2% $ 82 ABN AMRO Joint Repurchase Agreement, 1.00%, 11/03/03 (Note 2f)....................... $ 82 216 BNP Paribas Joint Repurchase Agreement, 1.00%, 11/03/03 (Note 2f)....................... 216 267 UBS Securities Joint Repurchase Agreement, 0.98%, 11/03/03 (Note 2f)....................... 267 --------- Total short-term investments (cost $565).......... $ 565 ========= Total investments in securities (cost $308,931)(b).................................... $ 336,438 =========
(a) Presently non-income producing. (b) At October 31, 2003, the cost of securities for federal income tax purposes was $311,882 and the aggregate gross unrealized appreciation and depreciation based on that cost was: Unrealized appreciation........................ $ 38,027 Unrealized depreciation........................ (13,471) -------- Net unrealized appreciation.................... $ 24,556 ========
(c) See Note 2b of acompanying Notes to Financial Statements regarding valuation of securities. (d) Note: Percentage of investments as shown is the ratio of the total market value to total net assets. STATEMENT OF ASSETS AND LIABILITIES: ASSETS Investments in securities, at value (cost $308,931)........................................ $ 336,438 Cash............................................... @@ Receivables: Investment securities sold....................... 2,039 Fund shares sold................................. 1,066 Dividends and interest........................... 538 Other assets....................................... 55 --------- Total assets....................................... 340,136 --------- LIABILITIES Payables: Investment securities purchased.................. 767 Fund shares redeemed............................. 474 Payable for investment advisory and management fees (Note 3).................................. 227 Payable for distribution fees (Note 3)........... 23 Accrued Expenses................................... 131 --------- Total liabilities.................................. 1,622 --------- Net assets......................................... $ 338,514 ========= SUMMARY OF NET ASSETS: Capital stock and paid-in-capital, par value $0.001 per share; 300,000 shares authorized; 33,939 shares outstanding............................... $ 443,341 Accumulated undistributed net investment income.... 154 Accumulated net realized loss on investments....... (132,488) Unrealized appreciation of investments in securities....................................... 27,507 --------- Net assets......................................... $ 338,514 =========
Class A Net asset value per share ($243,842 / 24,187 shares outstanding)...................................... $10.08 ------ Maximum offering price per share($10.08 / 94.5%).... $10.67 ====== Class B Net asset value per share ($47,888 / 4,937 shares outstanding)...................................... $ 9.70 ====== Class C Net asset value per share ($46,162 / 4,755 shares outstanding)...................................... $ 9.71 ------ Maximum offering price per share ($9.71 / 99.0%).... $ 9.81 ====== Class Y Net asset value per share ($622 / 60 shares outstanding)...................................... $10.36 ======
@@Due to the presentation of the financial statements in thousands, the number or shares and/or dollars round to zero. The accompanying notes are an integral part of this financial statement. 46 THE HARTFORD DIVIDEND AND GROWTH FUND SCHEDULE OF INVESTMENTS OCTOBER 31, 2003 (000'S OMITTED) --------------------------------------------------------------------------------
MARKET SHARES VALUE(C) --------- ---------- COMMON STOCK -- 93.9% BASIC MATERIALS -- 10.9% 485 Abitibi-Consolidated, Inc. ....................... $ 3,252 331 Alcan, Inc. ...................................... 13,201 983 Alcoa, Inc. ...................................... 31,033 193 Bowater, Inc. .................................... 7,860 338 Dow Chemical Co. ................................. 12,720 782 DuPont (E.I.) de Nemours & Co. ................... 31,579 179 Fortune Brands, Inc. (with rights)................ 11,675 509 Gillette Co. (with rights)........................ 16,224 271 International Paper Co. .......................... 10,644 419 Kimberly-Clark Corp. ............................. 22,149 606 Rohm & Haas Co. (with rights)..................... 23,816 284 Temple-Inland, Inc. (with rights)................. 15,317 ---------- 199,470 ---------- CAPITAL GOODS -- 5.5% 286 Boeing Co. ....................................... 11,016 264 General Dynamics Corp. ........................... 22,088 421 Honeywell International, Inc. .................... 12,875 428 Parker-Hannifin Corp. (with rights)............... 21,820 514 Pitney Bowes, Inc. (with rights).................. 21,134 1,109 Xerox Corp. (with rights)(a)...................... 11,642 ---------- 100,575 ---------- CONSUMER CYCLICAL -- 5.7% 346 Avery Dennison Corp. (with rights)................ 18,208 299 Caterpillar, Inc. (with rights)................... 21,911 287 General Motors Corp. ............................. 12,259 194 Grainger (W.W.), Inc. ............................ 8,886 356 Mattel, Inc. ..................................... 6,888 860 McDonald's Corp. ................................. 21,511 179 Target Corp. (with rights)........................ 7,110 325 TJX Companies, Inc. .............................. 6,818 ---------- 103,591 ---------- CONSUMER STAPLES -- 7.2% 455 Altria Group, Inc. ............................... 21,134 689 EnCana Corp. ..................................... 23,666 310 General Mills, Inc. .............................. 13,899 446 Kraft Foods, Inc. Class A......................... 12,976 363 PepsiCo, Inc. .................................... 17,335 783 Sara Lee Corp. (with rights)...................... 15,605 452 Weyerhaeuser Co. ................................. 27,236 ---------- 131,851 ---------- ENERGY -- 9.4% 694 BP plc ADR........................................ 29,412 336 Chevron Texaco Corp. (with rights)................ 24,957 96 ConocoPhillips (with rights)...................... 5,509 1,171 Exxon Mobil Corp. ................................ 42,851 319 Progress Energy, Inc. ............................ 13,740 440 Royal Dutch Petroleum Co. NY Shares............... 19,509 298 Schlumberger Ltd. ................................ 14,011 286 Total S.A. ADR.................................... 22,305 ---------- 172,294 ----------
MARKET SHARES VALUE(C) --------- ---------- FINANCE AND INSURANCE -- 17.9% 267 ACE Ltd. ADR (with rights)........................ $ 9,608 408 American International Group, Inc. ............... 24,819 664 Bank One Corp. ................................... 28,195 1,142 Citigroup, Inc. .................................. 54,136 248 Comerica, Inc. (with rights)...................... 12,746 377 Franklin Resources, Inc. ......................... 17,868 389 Freddie Mac....................................... 21,857 190 HSBC Holdings plc ADR............................. 14,261 330 MBIA, Inc. ....................................... 19,698 321 Merrill Lynch & Co., Inc. ........................ 18,991 281 Morgan Stanley (with rights)...................... 15,440 336 St. Paul Companies, Inc. ......................... 12,815 619 Synovus Financial Corp. (with rights)............. 17,090 351 U.S. Bancorp (with rights)........................ 9,566 560 Wachovia Corp. (with rights)...................... 25,683 357 XL Capital Ltd. Class A (with rights)............. 24,819 ---------- 327,592 ---------- HEALTH CARE -- 9.6% 653 Abbott Laboratories (with rights)................. 27,814 321 AstraZeneca plc ADR............................... 15,296 242 Aventis S.A. ADR.................................. 12,806 594 Baxter International, Inc. (with rights).......... 15,781 215 Becton, Dickinson & Co. (with rights)............. 7,860 245 Cardinal Health, Inc. ............................ 14,526 230 Guidant Corp. .................................... 11,722 291 Lilly (Eli) & Co. (with rights)................... 19,373 272 McKesson Corp. ................................... 8,242 641 Pfizer, Inc. (with rights)........................ 20,245 1,464 Schering-Plough Corp. (with rights)............... 22,355 ---------- 176,020 ---------- SERVICES -- 6.1% 455 Comcast Corp. Class A(a).......................... 15,425 283 Comcast Corp. Special Class A(a).................. 9,228 323 Computer Sciences Corp.(a)........................ 12,781 204 FedEx Corp. ...................................... 15,448 216 Gannett Co., Inc. (with rights)................... 18,134 127 Harrah's Entertainment, Inc. (with rights)........ 5,507 148 Omnicom Group, Inc. .............................. 11,826 856 Waste Management, Inc. ........................... 22,193 ---------- 110,542 ---------- TECHNOLOGY -- 13.6% 534 Apple Computer, Inc.(a)........................... 12,221 752 AT&T Corp. ....................................... 13,977 911 BellSouth Corp. (with rights)..................... 23,963 271 Emerson Electric Co. (with rights)................ 15,379 225 General Electric Co. ............................. 6,521 841 Hewlett-Packard Co. .............................. 18,767 438 International Business Machines Corp. ............ 39,219 666 Microsoft Corp. .................................. 17,403 1,029 Motorola, Inc. (with rights)...................... 13,926 261 Sony Corp. ADR.................................... 9,198 678 Texas Instruments, Inc. (with rights)............. 19,611
The accompanying notes are an integral part of this financial statement. 47 THE HARTFORD DIVIDEND AND GROWTH FUND SCHEDULE OF INVESTMENTS -- (CONTINUED) OCTOBER 31, 2003 (000'S OMITTED) --------------------------------------------------------------------------------
MARKET SHARES VALUE(C) --------- ---------- COMMON STOCK -- (CONTINUED) TECHNOLOGY -- (CONTINUED) 1,088 Time Warner, Inc.(a).............................. $ 16,634 1,210 Verizon Communications, Inc. ..................... 40,651 ---------- 247,470 ---------- TRANSPORTATION -- 3.8% 366 Canadian Pacific Railway Ltd. ADR................. 10,242 750 CSX Corp. (with rights)........................... 23,859 457 Delta Air Lines, Inc. (with rights)(a)............ 5,947 425 Union Pacific Corp. .............................. 26,611 104 USF Corp. ........................................ 3,326 ---------- 69,985 ---------- UTILITIES -- 4.2% 412 Exelon Corp. ..................................... 26,150 144 FirstEnergy Corp. (with rights)................... 4,952 294 FPL Group, Inc. (with rights)..................... 18,740 439 PG&E Corp.(a)..................................... 10,733 422 Pinnacle West Capital Corp. (with rights)......... 15,421 ---------- 75,996 ---------- Total common stock (cost $1,620,238).............. $1,715,386 ========== SHARES --------- SHORT-TERM INVESTMENTS -- 6.7% SECURITIES PURCHASED WITH PROCEEDS FROM SECURITIES LENDING -- 1.2% 20,828 Boston Global Investment Trust.................... $ 20,828 ---------- PRINCIPAL AMOUNT --------- FINANCE -- 5.5% $ 14,649 ABN AMRO Joint Repurchase Agreement, 1.00%, 11/03/03 (Note 2f)....................... 14,649 38,550 BNP Paribas Joint Repurchase Agreement, 1.00%, 11/03/03 (Note 2f)....................... 38,550 47,841 UBS Securities Joint Repurchase Agreement, 0.98%, 11/03/03 (Note 2f)....................... 47,841 ---------- 101,040 ---------- Total short-term investments (cost $121,868)................................. $ 121,868 ========== Total investments in securities (cost $1,742,106)(b)............................ $1,837,254 ==========
(a) Presently non-income producing. (b) At October 31, 2003, the cost of securities for federal income tax purposes is $1,752,019 and the aggregate gross unrealized appreciation and depreciation based on that cost was: Unrealized appreciation........................ $162,953 Unrealized depreciation........................ (77,718) -------- Net unrealized appreciation.................... $ 85,235 ========
(c) See Note 2b of accompanying Notes to Financial Statements regarding valuation of securities. (d) Note: Percentage of investments as shown is the ratio of the total market value to total net assets. Market value of investments in foreign securities represents 9.48% of total net assets as of October 31, 2003. STATEMENT OF ASSETS AND LIABILITIES: ASSETS Investments in securities, at value (cost $1,742,106)@ ................................... $1,837,254 Cash.............................................. 1 Receivables: Investment securities sold...................... 3,180 Fund shares sold................................ 14,981 Dividends and interest.......................... 2,493 Other assets...................................... 111 ---------- Total assets...................................... 1,858,020 ---------- LIABILITIES Payables: Payable upon return of securities loaned (Note 2d)........................................... 20,828 Investment securities purchased................. 6,162 Fund shares redeemed............................ 2,063 Payable for investment advisory and management fees (Note 3)................................. 991 Payable for distribution fees (Note 3).......... 118 Accrued Expenses.................................. 565 ---------- Total liabilities................................. 30,727 ---------- Net assets........................................ $1,827,293 ==========
@ Market value of securities on loan $20,443. SUMMARY OF NET ASSETS: Capital stock and paid-in-capital, par value $0.001 per share; 500,000 shares authorized; 115,027 shares outstanding...................... $1,793,767 Accumulated net realized loss on investments...... (61,622) Unrealized appreciation of investments in securities...................................... 95,148 ---------- Net assets........................................ $1,827,293 ==========
Class A Net asset value per share ($1,296,982 / 81,384 shares outstanding)............................... $15.94 ------ Maximum offering price per share ($15.94 / 94.5%)... $16.87 ====== Class B Net asset value per share ($257,856 / 16,373 shares outstanding)...................................... $15.75 ====== Class C Net asset value per share ($230,348 / 14,657 shares outstanding)...................................... $15.72 ------ Maximum offering price per share ($15.72 / 99.0%)... $15.88 ====== Class Y Net asset value per share ($42,107 / 2,613 shares outstanding)...................................... $16.11 ======
The accompanying notes are an integral part of this financial statement. 48 THE HARTFORD EQUITY INCOME FUND SCHEDULE OF INVESTMENTS OCTOBER 31, 2003 (000'S OMITTED) --------------------------------------------------------------------------------
MARKET SHARES VALUE(B) --------- -------- COMMON STOCK -- 86.3% BASIC MATERIALS -- 7.5% 29 Alcoa, Inc. ...................................... $ 919 11 Dow Chemical Co. ................................. 404 16 DuPont (E.I.) de Nemours & Co. ................... 665 7 Kimberly-Clark Corp. ............................. 363 7 PPG Industries, Inc. ............................. 396 ------- 2,747 ------- CAPITAL GOODS -- 1.6% 19 Rockwell Automation, Inc. ........................ 597 ------- CONSUMER CYCLICAL -- 7.2% 16 Caterpillar, Inc. (with rights)................... 1,185 19 General Motors Corp. ............................. 819 24 Masco Corp. (with rights)......................... 650 ------- 2,654 ------- CONSUMER STAPLES -- 6.5% 10 Altria Group, Inc. ............................... 465 8 General Mills, Inc. .............................. 353 7 Heinz (H.J.) Co. ................................. 243 14 Kellogg Co. ...................................... 456 14 Weyerhaeuser Co. ................................. 872 ------- 2,389 ------- ENERGY -- 8.4% 10 BP plc ADR........................................ 424 11 Chevron Texaco Corp. (with rights)................ 833 7 ConocoPhillips (with rights)...................... 393 39 Exxon Mobil Corp. ................................ 1,443 ------- 3,093 ------- FINANCE AND INSURANCE -- 33.0% 6 ACE Ltd. ADR (with rights)........................ 216 16 Bank of America Corp. ............................ 1,225 8 Chubb Corp. (with rights)......................... 526 31 Citigroup, Inc. .................................. 1,489 4 Fannie Mae........................................ 318 10 Goldman Sachs Group, Inc. ........................ 940 9 KeyCorp........................................... 268 10 Marsh & McLennan Companies, Inc. (with rights).... 428 14 Merrill Lynch & Co., Inc. ........................ 800 13 Morgan Stanley (with rights)...................... 720 21 National City Corp. .............................. 702 15 PNC Financial Services Group, Inc. (with rights)......................................... 793 11 St. Paul Companies, Inc. ......................... 406 7 SunTrust Banks, Inc. ............................. 474 12 U.S. Bancorp (with rights)........................ 325 18 Wachovia Corp. (with rights)...................... 811 15 Washington Mutual, Inc. (with rights)............. 649 7 Wells Fargo & Co. (with rights)................... 395
MARKET SHARES VALUE(B) --------- -------- FINANCE AND INSURANCE -- (CONTINUED) 10 XL Capital Ltd. Class A (with rights)............. $ 680 ------- 12,165 ------- HEALTH CARE -- 4.1% 14 Baxter International, Inc. (with rights).......... 366 7 Merck & Co., Inc. ................................ 304 19 Pfizer, Inc. (with rights)........................ 608 6 Wyeth (with rights)............................... 245 ------- 1,523 ------- SERVICES -- 1.1% 5 Gannett Co., Inc. (with rights)................... 397 ------- TECHNOLOGY -- 9.8% 16 AT&T Corp. ....................................... 306 8 BellSouth Corp. (with rights)..................... 210 19 Emerson Electric Co. (with rights)................ 1,092 36 Hewlett-Packard Co. .............................. 799 31 Nokia Oyj ADR..................................... 530 9 SBC Communications, Inc. ......................... 205 14 Verizon Communications, Inc. ..................... 462 ------- 3,604 ------- TRANSPORTATION -- 2.5% 24 Shell Transport & Trading Co. plc ADR............. 902 ------- UTILITIES -- 4.6% 10 Dominion Resources, Inc. ......................... 617 7 Exelon Corp. ..................................... 457 7 FPL Group, Inc. (with rights)..................... 423 6 Scana Corp. ...................................... 212 ------- 1,709 ------- Total common stock (cost $31,134).................................. $31,780 ======= PRINCIPAL AMOUNT --------- SHORT-TERM INVESTMENTS -- 5.0% FINANCE -- 5.0% $ 265 ABN AMRO Joint Repurchase Agreement, 1.00%, 11/03/03 (Note 2f)....................... $ 265 696 BNP Paribas Joint Repurchase Agreement, 1.00%, 11/03/03 (Note 2f)....................... 696 864 UBS Securities Joint Repurchase Agreement, 0.98%, 11/03/03 (Note 2f)....................... 864 ------- $ 1,825 ------- Total short-term investments (cost $1,825)................................... $ 1,825 ======= Total investments in securities (cost $32,959)(a)............................... $33,605 =======
The accompanying notes are an integral part of this financial statement. 49 THE HARTFORD EQUITY INCOME FUND SCHEDULE OF INVESTMENTS -- (CONTINUED) OCTOBER 31, 2003 (000'S OMITTED) -------------------------------------------------------------------------------- (a) At October 31, 2003, the cost of securities for federal income tax purposes is $32,959 and the aggregate gross unrealized appreciation and depreciation based on that cost was: Unrealized appreciation.......................... $1,059 Unrealized depreciation.......................... (413) ------ Net unrealized appreciation...................... $ 646 ======
(b) See Note 2b of accompanying Notes to Financial Statements regarding valuation of securities. (c) Note: Percentage of investments as shown is the ratio of the total market value to total net assets. Market value of investments in foreign securities represents 5.04% of total net assets as of October 31, 2003. STATEMENT OF ASSETS AND LIABILITIES: ASSETS Investments in securities, at value (cost $32,959)......................................... $33,605 Cash............................................... @@ Receivables: Fund shares sold................................. 4,991 Dividends and interest........................... 55 Other assets....................................... 50 ------- Total assets....................................... 38,701 ------- LIABILITIES Payables: Investment securities purchased.................. 1,630 Fund shares redeemed............................. 201 Payable for investment advisory and management fees (Note 3).................................. 24 Payable for distribution fees (Note 3)........... 2 Accrued Expenses................................... 31 ------- Total liabilities.................................. 1,888 ------- Net assets......................................... $36,813 ======= SUMMARY OF NET ASSETS: Capital stock and paid-in-capital, par value $0.001 per share; 300,000 shares authorized; 3,550 shares outstanding............................... $36,098 Accumulated undistributed net investment income.... 57 Accumulated net realized gain on investments....... 12 Unrealized appreciation of investments in securities....................................... 646 ------- Net assets......................................... $36,813 =======
Class A Net asset value per share ($26,649 / 2,569 shares outstanding)...................................... $10.37 ------ Maximum offering price per share ($10.37 / 94.5%)... $10.97 ====== Class B Net asset value per share ($2,421 / 234 shares outstanding)...................................... $10.36 ====== Class C Net asset value per share ($7,639 / 737 shares outstanding)...................................... $10.36 ------ Maximum offering price per share ($10.36 / 99.0%)... $10.46 ====== Class Y Net asset value per share ($104 / 10 shares outstanding)...................................... $10.39 ======
@@Due to the presentation of the financial statements in thousands, the number or shares and/or dollars round to zero. The accompanying notes are an integral part of this financial statement. 50 THE HARTFORD FOCUS FUND SCHEDULE OF INVESTMENTS OCTOBER 31, 2003 (000'S OMITTED) --------------------------------------------------------------------------------
MARKET SHARES VALUE(C) --------- -------- COMMON STOCK -- 99.7% BASIC MATERIALS -- 5.4% 110 Alcoa, Inc. ...................................... $ 3,473 93 Gillette Co. (with rights)........................ 2,954 -------- 6,427 -------- CONSUMER CYCLICAL -- 14.6% 47 Caterpillar, Inc. (with rights)................... 3,422 95 Costco Wholesale Corp.(a)......................... 3,353 219 Gap, Inc. ........................................ 4,175 89 Home Depot, Inc. ................................. 3,314 117 Masco Corp. (with rights)......................... 3,207 -------- 17,471 -------- CONSUMER STAPLES -- 3.3% 83 Coca-Cola Co. .................................... 3,870 -------- FINANCE AND INSURANCE -- 23.4% 69 American Express Co. ............................. 3,252 98 American International Group, Inc. ............... 5,955 43 Bank of America Corp. ............................ 3,279 120 Citigroup, Inc. .................................. 5,688 50 Marsh & McLennan Companies, Inc. (with rights).... 2,138 63 Merrill Lynch & Co., Inc. ........................ 3,700 69 Morgan Stanley (with rights)...................... 3,792 -------- 27,804 -------- HEALTH CARE -- 10.1% 39 Genzyme Corp.(a).................................. 1,790 61 Lilly (Eli) & Co. (with rights)................... 4,070 195 Pfizer, Inc. (with rights)........................ 6,175 -------- 12,035 -------- SERVICES -- 14.5% 117 Comcast Corp. Class A(a).......................... 3,957 75 Computer Sciences Corp.(a)........................ 2,979 49 FedEx Corp. ...................................... 3,727 85 Viacom, Inc. Class B.............................. 3,373 141 Walt Disney Co. .................................. 3,181 -------- 17,217 -------- TECHNOLOGY -- 28.4% 183 Cisco Systems, Inc. (with rights)(a).............. 3,831 210 General Electric Co. ............................. 6,078 162 Hewlett-Packard Co. .............................. 3,616 164 Intel Corp. ...................................... 5,404 51 International Business Machines Corp. ............ 4,563 224 Microsoft Corp. .................................. 5,863 286 Time Warner, Inc.(a).............................. 4,371 -------- 33,726 -------- Total common stock (cost $106,675)................ $118,550 ========
PRINCIPAL MARKET AMOUNT VALUE(C) --------- -------- SHORT-TERM INVESTMENTS -- 0.3% FINANCE -- 0.3% $ 44 ABN AMRO Joint Repurchase Agreement, 1.00%, 11/03/03 (Note 2f)....................... $ 44 116 BNP Paribas Joint Repurchase Agreement, 1.00%, 11/03/03 (Note 2f)....................... 116 144 UBS Securities Joint Repurchase Agreement, 0.98%, 11/03/03 (Note 2f)....................... 144 -------- Total short-term investments (cost $304).......... $ 304 ======== Total investments in securities (cost $106,979)(b).............................. $118,854 ========
(a) Presently non-income producing. (b) At October 31, 2003, the cost of securities for federal income tax purposes is $108,921 and the aggregate gross unrealized appreciation and depreciation based on that cost was: Unrealized appreciation......................... $12,846 Unrealized depreciation......................... (2,913) ------- Net unrealized appreciation..................... $ 9,933 =======
(c) See Note 2b of accompanying Notes to Financial Statements regarding valuation of securities. (d) Note: Percentage of investments as shown is the ratio of the total market value to total net assets. STATEMENT OF ASSETS AND LIABILITIES: ASSETS Investments in securities, at value (cost $106,979)......................................... $118,854 Cash................................................ 2 Receivables: Fund shares sold.................................. 280 Dividends and interest............................ 136 Other assets........................................ 25 -------- Total assets........................................ 119,297 -------- LIABILITIES Payables: Fund shares redeemed.............................. 202 Payable for investment advisory and management fees (Note 3)................................... 100 Payable for distribution fees (Note 3)............ 9 Accrued Expenses.................................... 49 -------- Total liabilities................................... 360 -------- Net assets.......................................... $118,937 ========
The accompanying notes are an integral part of this financial statement. 51 THE HARTFORD FOCUS FUND SCHEDULE OF INVESTMENTS -- (CONTINUED) OCTOBER 31, 2003 (000'S OMITTED) -------------------------------------------------------------------------------- SUMMARY OF NET ASSETS: Capital stock and paid-in-capital, par value $0.001 per share; 300,000 shares authorized; 13,402 shares outstanding................................ $139,187 Accumulated net realized loss on investments........ (32,125) Unrealized appreciation of investments in securities........................................ 11,875 -------- Net assets.......................................... $118,937 ========
Class A Net asset value per share ($70,002 / 7,833 shares outstanding)....................................... $8.94 ----- Maximum offering price per share ($8.94 / 94.5%)..... $9.46 ===== Class B Net asset value per share ($21,058 / 2,396 shares outstanding)....................................... $8.79 ===== Class C Net asset value per share ($27,158 / 3,093 shares outstanding)....................................... $8.78 ----- Maximum offering price per share ($8.78 / 99.0%)..... $8.87 ===== Class Y Net asset value per share ($719 / 80 shares outstanding)....................................... $9.04 =====
The accompanying notes are an integral part of this financial statement. 52 THE HARTFORD GLOBAL COMMUNICATIONS FUND SCHEDULE OF INVESTMENTS OCTOBER 31, 2003 (000'S OMITTED) --------------------------------------------------------------------------------
MARKET SHARES VALUE(C) --------- -------- COMMON STOCK -- 92.8% TELECOMMUNICATIONS -- OTHER -- 43.6% 13 AT&T Corp. ....................................... $ 240 28 Brasil Telecom S.A. ADR........................... 388 23 Cosmote Mobile Communications S.A. ............... 269 12 France Telecom S.A. .............................. 286 @@ KDDI Corp. ....................................... 418 21 P.T. Telekomunikasi Indonesia ADR................. 302 24 Sprint Corp. (with rights)........................ 376 161 Telecom Italia S.p.A.(a).......................... 280 53 Telekom Austria AG(a)(e).......................... 568 138 Telenor ASA(e).................................... 751 16 Telkom South Africa Ltd. ADR(a)................... 488 ------- 4,366 ------- TELECOMMUNICATION RESELLERS -- 4.7% 38 Citizens Communications Co. (with rights)(a)...... 471 ------- WIRED TELECOMMUNICATIONS CARRIERS -- 8.2% 20 Deutsche Telekom AG(a)............................ 314 52 Koninklijke (Royal) KPN N.V.(a)................... 392 @@ Nippon Telegraph & Telephone Corp................. 111 ------- 817 ------- WIRELESS TELECOMMUNICATIONS CARRIERS -- 36.3% 10 Mobistar S.A.(a)(e)............................... 498 26 Nextel Communications, Inc. Class A(a)............ 624 40 Nextel Partners, Inc. Class A(a).................. 483 62 Philippine Long Distance Telephone Co.(a)......... 851 127 Qwest Communications International, Inc.(a)....... 449 1 SK Telecom Co. Ltd. .............................. 258 222 Vodafone Group plc................................ 466 ------- 3,629 ------- Total common stock (cost $6,991)................................... $ 9,283 =======
STANDARD AND POOR'S PRINCIPAL RATING MARKET AMOUNT (UNAUDITED) VALUE(C) --------- ----------- -------- CORPORATE BONDS: NON-INVESTMENT GRADE -- 3.7% TELECOMMUNICATIONS -- OTHER -- 3.7% 400 Qwest Capital Funding, Inc., 7.25%, 02/15/2011............................... CCC+ $ 372 ------- Total corporate bonds: non-investment grade (cost $252)..................................... $ 372 ======= Total long-term investments (cost $7,243)................................... $ 9,655 ======= SHARES --------- SHORT-TERM INVESTMENTS -- 19.3% SECURITIES PURCHASED WITH PROCEEDS FROM SECURITIES LENDING -- 17.1% 1,707 Navigator Prime Portfolio......................... $ 1,707 ------- PRINCIPAL AMOUNT --------- FINANCE -- 2.2% $ 32 ABN AMRO Joint Repurchase Agreement, 1.00%, 11/03/03 (Note 2f)....................... 32 85 BNP Paribas Joint Repurchase Agreement, 1.00%, 11/03/03 (Note 2f)....................... 85 107 UBS Securities Joint Repurchase Agreement, 0.98%, 11/03/03 (Note 2f)....................... 107 ------- $ 224 ------- Total short-term investments (cost $1,931)................................... $ 1,931 ======= Total investments in securities (cost $9,174)(b)................................ $11,586 =======
(a) Presently non-income producing. (b) At October 31, 2003, the cost of securities for federal income tax purposes was $9,208 and the aggregate gross unrealized appreciation and depreciation based on that cost was: Unrealized appreciation.......................... $2,398 Unrealized depreciation.......................... (20) ------ Net unrealized appreciation...................... $2,378 ======
(c) See Note 2b of acompanying Notes to Financial Statements regarding valuation of securities. The accompanying notes are an integral part of this financial statement. 53 THE HARTFORD GLOBAL COMMUNICATIONS FUND SCHEDULE OF INVESTMENTS -- (CONTINUED) OCTOBER 31, 2003 (000'S OMITTED) -------------------------------------------------------------------------------- (d) Note: Percentage of investments as shown is the ratio of the total market value to total net assets. (e) Securities issued within terms of a private placement memorandum, exempt from registration under Section 144A of the Securities Act of 1933, as amended, and may be sold only to dealers in that program or to other "accredited investors". Pursuant to guidelines adopted by the Board of Directors, these issues are determined to be liquid. The aggregate value of these securities at October 31, 2003, was $1,817, which represents 18.16% of total net assets. @@ Due to the presentation of the financial statements in thousands, the number of shares and/or dollars round to zero. FORWARD FOREIGN CURRENCY CONTRACTS OUTSTANDING AS OF OCTOBER 31, 2003
MARKET CONTRACT DELIVERY UNREALIZED DESCRIPTION VALUE AMOUNT DATE APPRECIATION ----------- ------ -------- --------- ------------ Hungarian Forint (Sell) $331 $336 11/4/2003 $5
PERCENTAGE OF DIVERSIFICATION BY COUNTRY NET ASSETS -------------------------- ------------- United States 49.4% Philippines 8.5% Norway 7.5% Austria 5.7% Japan 5.3% Belgium 5.0% South Africa 4.9% United Kingdom 4.6% Netherlands 3.9% Brazil 3.9% Germany 3.1% Indonesia 3.0% France 2.9% Italy 2.8% Greece 2.7% South Korea 2.6% ----- Total 115.8% =====
STATEMENT OF ASSETS AND LIABILITIES: ASSETS Investments in securities, at value; (cost $9,174) @ ......................................... $11,586 Cash................................................. @@ Foreign currency on deposit with custodian (cost $ @@ )............................................. @@ Unrealized appreciation in forward foreign currency contracts.......................................... 5 Receivables: Investment securities sold......................... 897 Fund shares sold................................... 115 Dividends and interest............................. 10 Other assets......................................... 12 ------- Total assets......................................... 12,625 ------- LIABILITIES Payables: Payable upon return of securities loaned (Note 2d).............................................. 1,707 Investment securities purchased.................... 895 Fund shares redeemed............................... 5 Payable for investment advisory and management fees (Note 3)......................................... 8 Payable for distribution fees (Note 3)............. 1 Accrued Expenses..................................... 6 ------- Total liabilities.................................... 2,622 ------- Net assets........................................... $10,003 ======= @ Market value of securities on loan $1,672 SUMMARY OF NET ASSETS: Capital stock and paid-in-capital, par value $0.001 per share; 300,000 shares authorized; 2,152 shares outstanding........................................ $15,298 Accumulated net realized loss on investments and foreign currency transactions...................... (7,706) Unrealized appreciation of investments in securities and the translations of assets and liabilities denominated in foreign currency.................... 2,411 ------- Net assets........................................... $10,003 =======
Class A Net asset value per share ($6,419 / 1,374 shares outstanding)....................................... $4.67 ----- Maximum offering price per share ($4.67 / 94.5%)..... $4.94 ===== Class B Net asset value per share ($1,555 / 340 shares outstanding)....................................... $4.58 ===== Class C Net asset value per share ($1,305 / 285 shares outstanding)....................................... $4.57 ----- Maximum offering price per share (4.57 / 99.0%)...... $4.62 ===== Class Y Net asset value per share ($724 / 153 shares outstanding)....................................... $4.74 =====
@@ Due to the presentation of the financial statements in thousands, the number of shares and/or dollars round to zero. The accompanying notes are an integral part of this financial statement. 54 THE HARTFORD GLOBAL FINANCIAL SERVICES FUND SCHEDULE OF INVESTMENTS OCTOBER 31, 2003 (000'S OMITTED) --------------------------------------------------------------------------------
MARKET SHARES VALUE(C) --------- -------- COMMON STOCK -- 94.9% AGENCIES, BROKERAGES, OTHER INSURANCE ACTIVITIES -- 5.0% 28 Clark, Inc.(a).................................... $ 417 15 Marsh & McLennan Companies, Inc. (with rights).... 628 ------- 1,045 ------- COMMERCIAL BANKING -- 14.6% 43 Banco Santander Central Hispano S.A. ............. 417 29 Credit Agricole S.A. ............................. 615 29 Credit Agricole S.A. Rights....................... 7 12 UBS AG............................................ 755 142 UniCredito Italiano S.p.A. ....................... 698 52 Westpac Banking Corp. Ltd. ....................... 592 ------- 3,084 ------- CREDIT CARD ISSUING -- 4.9% 21 Bank One Corp. ................................... 892 7 Credit Saison Co. Ltd. ........................... 144 ------- 1,036 ------- DEPOSITORY CREDIT BANKING -- 22.5% 5 Bank of America Corp. ............................ 371 11 Bank of Bermuda Ltd. ............................. 481 14 Bank of Hawaii Corp. ............................. 544 2 Canadian Western Bank............................. 66 20 Citigroup, Inc. .................................. 952 3 Golden West Financial Corp. ...................... 311 19 Hibernia Corp. Class A............................ 432 86 HSBC Holdings plc................................. 1,290 10 People's Bank..................................... 314 ------- 4,761 ------- INSURANCE CARRIERS -- 19.1% 21 ACE Ltd. ADR (with rights)........................ 738 9 Ambac Financial Group, Inc. ...................... 637 11 American International Group, Inc. ............... 694 18 Cincinnati Financial Corp. ....................... 724 9 Converium Holding AG ADR.......................... 222 8 MBIA, Inc. ....................................... 483 13 Reinsurance Group of America, Inc. ............... 535 ------- 4,033 ------- INTERNATIONAL TRADE FINANCING (FOREIGN BANKS) -- 5.5% 43 Royal Bank of Scotland Group plc.................. 1,153 ------- MONETARY AUTHORITIES -- CENTRAL BANK -- 4.4% 3 Credit Suisse Group............................... 106 41 HBOS plc.......................................... 477 @@ Sumitomo Mitsui Financial Group, Inc.(a).......... 357 ------- 940 -------
MARKET SHARES VALUE(C) --------- -------- NONDEPOSITORY CREDIT BANKING -- 7.7% 29 Banco Latinoamericano de Exportaciones S.A. ADR Class E(a)...................................... $ 429 12 Fannie Mae........................................ 824 7 Freddie Mac....................................... 376 ------- 1,629 ------- OTHER FINANCIAL INVESTMENT ACTIVITIES -- 4.4% 26 AMVESCAP plc...................................... 204 5 Federated Investors, Inc. Class B................. 130 6 Franklin Resources, Inc. ......................... 299 13 Nomura Securities Co. Ltd. ....................... 223 @@ UFJ Holdings, Inc.(a)............................. 64 ------- 920 ------- REAL ESTATE CREDIT (MORTGAGE BANKING) -- 1.3% 3 Countrywide Financial Corp. ...................... 273 ------- SECURITIES, COMMODITIES AND BROKERAGE -- 5.5% 3 Goldman Sachs Group, Inc. ........................ 263 11 Merrill Lynch & Co., Inc. ........................ 651 5 Morgan Stanley (with rights)...................... 247 ------- 1,161 ------- Total common stock (cost $18,236).................................. $20,035 ======= SHARES --------- SHORT-TERM INVESTMENTS -- 12.1% SECURITIES PURCHASED WITH PROCEEDS FROM SECURITIES LENDING -- 7.1% 1,496 Navigator Prime Portfolio......................... $ 1,496 ------- PRINCIPAL AMOUNT --------- FINANCE -- 5.0% $ 155 ABN AMRO Joint Repurchase Agreement, 1.00%, 11/03/03 (Note 2f)....................... 155 407 BNP Paribas Joint Repurchase Agreement, 1.00%, 11/03/03 (Note 2f)....................... 407 505 UBS Securities Joint Repurchase Agreement, 0.98%, 11/03/03 (Note 2f)....................... 505 ------- 1,067 ------- Total short-term investments (cost $2,563)........ $ 2,563 ======= Total investments in securities (cost $20,799)(b)..................................... $22,598 =======
The accompanying notes are an integral part of this financial statement. 55 THE HARTFORD GLOBAL FINANCIAL SERVICES FUND SCHEDULE OF INVESTMENTS -- (CONTINUED) OCTOBER 31, 2003 (000'S OMITTED) -------------------------------------------------------------------------------- (a) Presently non-income producing. (b) At October 31, 2003, the cost of securities for federal income tax purposes is $20,883 and the aggregate gross unrealized appreciation and depreciation based on that cost was: Unrealized appreciation.......................... $2,365 Unrealized depreciation.......................... (650) ------ Net unrealized appreciation...................... $1,715 ======
(c) See Note 2b of accompanying Notes to Financial Statements regarding valuation of securities. (d) Note: Percentage of investments as shown is the ratio of the total market value to total net assets. FORWARD FOREIGN CURRENCY CONTRACTS OUTSTANDING AS OF OCTOBER 31, 2003
UNREALIZED MARKET CONTRACT DELIVERY APPRECIATION DESCRIPTION VALUE AMOUNT DATE (DEPRECIATION) ----------- ------ -------- --------- -------------- Euro (Buy) $158 $158 11/4/2003 @@ Euro (Buy) 254 254 11/5/2003 @@ British Pound (Sell) 116 116 11/4/2003 @@ British Pound (Sell) 281 281 11/5/2003 @@ --- $@@ ===
PERCENTAGE OF DIVERSIFICATION BY COUNTRY NET ASSETS -------------------------- ------------- United States 67.7% United Kingdom 14.8% Switzerland 5.1% Japan 3.7% Italy 3.3% France 3.0% Australia 2.8% Bermuda 2.3% Spain 2.0% Panama 2.0% Canada 0.3% ----- Total 107.0% =====
STATEMENT OF ASSETS AND LIABILITIES: ASSETS Investments in securities, at value; (cost $20,799) @ ........................................ $22,598 Cash................................................. 1 Receivables: Investment securities sold......................... 478 Fund shares sold................................... 235 Dividends and interest............................. 31 Other assets......................................... 16 ------- Total assets......................................... 23,359 ------- LIABILITIES Unrealized depreciation on forward foreign currency contracts.......................................... @@ Payables: Payable upon return of securities loaned (Note 2d).............................................. 1,496 Investment securities purchased.................... 705 Fund shares redeemed............................... 17 Payable for investment advisory and management fees (Note 3)......................................... 17 Payable for distribution fees (Note 3)............. 1 Accrued expenses..................................... 13 ------- Total liabilities.................................... 2,249 ------- Net assets........................................... $21,110 =======
@ Market value of securities on loan $1,437. @@ Due to the presentation of the financial statements in thousands, the number rounds to zero. SUMMARY OF NET ASSETS: Capital stock and paid-in-capital, par value $0.001 per share; 300,000 shares authorized; 2,185 shares outstanding........................................ $21,745 Accumulated undistributed net investment income...... 130 Accumulated net realized loss on investments......... (2,565) Unrealized appreciation of investments in securities......................................... 1,800 ------- Net assets........................................... $21,110 =======
Class A Net asset value per share ($12,652 / 1,304 shares outstanding)...................................... $ 9.71 ------ Maximum offering price per share($9.71 / 94.5%)..... $10.28 ====== Class B Net asset value per share ($3,681 / 385 shares outstanding)...................................... $ 9.55 ====== Class C Net asset value per share ($3,197 / 335 shares outstanding)...................................... $ 9.55 ------ Maximum offering price per share($9.55 / 99.0%)..... $ 9.65 ====== Class Y Net asset value per share ($1,580 / 161 shares outstanding)...................................... $ 9.79 ======
The accompanying notes are an integral part of this financial statement. 56 THE HARTFORD GLOBAL HEALTH FUND SCHEDULE OF INVESTMENTS OCTOBER 31, 2003 (000'S OMITTED) --------------------------------------------------------------------------------
MARKET SHARES VALUE(C) --------- -------- COMMON STOCK -- 96.8 AGENCIES, BROKERAGES, OTHER INSURANCE ACTIVITIES -- 4.1% 290 Medco Health Solutions, Inc.(a)................... $ 9,628 -------- BASIC CHEMICAL MANUFACTURING -- 0.8% 80 Bayer AG.......................................... 1,924 -------- COMPUTER SYSTEMS DESIGN AND RELATED SERVICES -- 0.5% 26 Cerner Corp.(a)................................... 1,119 -------- DRUGS AND DRUGGISTS' SUNDRIES WHOLESALERS -- 4.9% 92 Cardinal Health, Inc. ............................ 5,459 205 McKesson Corp. ................................... 6,202 -------- 11,661 -------- DRUGS AND DRUGGISTS' SUNDRIES MERCHANT -- 2.6% 9 Serono S.A. Class B............................... 6,225 -------- ELECTROMEDICAL MANUFACTURING -- 3.9% 178 Guidant Corp. .................................... 9,085 -------- INSURANCE CARRIERS -- 2.5% 38 Aetna, Inc. ...................................... 2,176 53 Anthem, Inc.(a)................................... 3,634 -------- 5,810 --------
MARKET SHARES VALUE(C) --------- -------- MEDICAL AND DIAGNOSTIC LABORATORIES -- 0.5% 34 Laboratory Corp. of America Holdings (with. rights)(a) $ 1,205 -------- MEDICAL EQUIPMENT AND SUPPLIES MANUFACTURING -- 6.5% 173 Baxter International, Inc. (with rights).......... 4,596 129 Becton, Dickinson & Co. (with rights)............. 4,709 481 Gambro AB Class B................................. 3,608 137 Viasys Healthcare, Inc. (with rights)(a).......... 2,474 -------- 15,387 -------- NAVIGATE, MEASURE, CONTROL INSTRUMENTS -- 2.2% 105 Beckman Coulter, Inc. (with rights)............... 5,223 -------- OFFICES OF PHYSICIANS -- 1.6% 130 Edwards Lifesciences Corp.(a)..................... 3,770 -------- OTHER CHEMICAL AND PREPARATION -- 0.4% 58 Connetics Corp.(a)................................ 1,042 -------- PHARMACEUTICAL AND MEDICINE MANUFACTURING -- 48.8% 306 Abbott Laboratories (with rights)................. 13,025 209 Abgenix, Inc. (with rights)(a).................... 2,558 233 Amylin Pharmaceuticals, Inc.(a)................... 6,357 273 AstraZeneca plc ADR............................... 13,017 112 AtheroGenics, Inc. (with rights)(a)............... 1,849 162 Aventis S.A. ADR.................................. 8,580 74 Cephalon, Inc.(a)................................. 3,470 186 Chugai Pharmaceutical Co. Ltd. ................... 2,652 207 Eisai Co. Ltd. ................................... 4,858 73 Forest Laboratories, Inc. (with rights)(a)........ 3,661 202 Fujisawa Pharmaceutical Co. Ltd. ................. 4,171 88 ILEX Oncology, Inc. (with rights)(a).............. 1,836 128 Lilly (Eli) & Co. (with rights)................... 8,541 51 Novartis AG....................................... 1,935 32 OSI Pharmaceuticals, Inc. (with rights)(a)........ 907 314 Pfizer, Inc. (with rights)........................ 9,932 844 Schering-Plough Corp. (with rights)............... 12,889 281 Shionogi & Co. Ltd. .............................. 4,716 94 Vertex Pharmaceuticals, Inc.(a)................... 1,229 68 Watson Pharmaceuticals, Inc.(a)................... 2,682 138 Wyeth (with rights)............................... 6,109 -------- 114,974 -------- PROFESSIONAL, SCIENTIFIC, AND TECHNICAL SERVICES -- 1.3% 26 Dendrite International, Inc.(a)................... 394 364 Exelixis, Inc.(a)................................. 2,702 -------- 3,096 -------- SCIENTIFIC RESEARCH AND DEVELOPMENT SERVICES -- 16.2% 389 Applera Corp. -- Celera Genomics Group(a)......... 5,194 54 Biogen, Inc. (with rights)(a)..................... 2,173 171 Ciphergen Biosystems, Inc.(a)..................... 1,865 145 CV Therapeutics, Inc. (with rights)(a)............ 2,548 322 Elan Corp. plc ADR(a)............................. 1,651 200 Genzyme Corp.(a).................................. 9,189 121 Human Genome Sciences, Inc. (with. rights)(a) 1,680 55 IDEC Pharmaceuticals Corp.(a)..................... 1,915 137 Medicines Co.(a).................................. 3,654 126 Millennium Pharmaceuticals, Inc. (with. rights)(a) 2,001 108 Monsanto Co. ..................................... 2,704 105 Regeneron Pharmaceutical, Inc.(a)................. 1,453 104 Telik, Inc.(a).................................... 2,107 -------- 38,134 -------- Total common stock................................ (cost $219,827) $228,283 ======== SHARES --------- SHORT-TERM INVESTMENTS -- 13.3 SECURITIES PURCHASED WITH PROCEEDS FROM SECURITIES LENDING -- 10.5% 24,764 Navigator Prime Portfolio......................... $ 24,764 --------
The accompanying notes are an integral part of this financial statement. 57 THE HARTFORD GLOBAL HEALTH FUND SCHEDULE OF INVESTMENTS -- (CONTINUED) OCTOBER 31, 2003 (000'S OMITTED) -------------------------------------------------------------------------------- PRINCIPAL MARKET AMOUNT VALUE(C) ----------- ----------- FINANCE -- 2.8% $ 969 ABN AMRO Joint Repurchase Agreement, 1.00%, 11/03/03 (Note 2f)....................... $ 969 2,550 BNP Paribas Joint Repurchase Agreement, 1.00%, 11/03/03 (Note 2f)....................... 2,550 3,164 UBS Securities Joint Repurchase Agreement, 0.98%, 11/03/03 (Note 2f)....................... 3,164 --------- 6,683 --------- Total short-term investments (cost $31,447).................................. $ 31,447 ========= Total investments in securities (cost $251,274)(b).............................. $ 259,730 =========
(a) Presently non-income producing. (b) At October 31, 2003, the cost of securities for federal income tax purposes is $252,233 and the aggregate gross unrealized appreciation and depreciation based on that cost was: Unrealized appreciation........................ $ 28,784 Unrealized depreciation........................ (21,287) -------- Net unrealized appreciation.................... $ 7,497 ========
(c) See Note 2b of accompanying Notes of Financial Statements regarding valuation of securities. (d) Note: Percentage of investments as shown is the ratio of the total market value to total net assets.
PERCENTAGE OF DIVERSIFICATION BY COUNTRY NET ASSETS -------------------------- ------------- United States 87.5% Japan 7.0% United Kingdom 5.5% France 3.6% Switzerland 3.5% Sweden 1.5% Germany 0.8% Ireland 0.7% ----- Total 110.1% =====
STATEMENT OF ASSETS AND LIABILITIES: ASSETS Investments in securities, at value; (cost $251,274) @ ...................................... $259,730 Cash................................................ @@ Receivables: Investment securities sold........................ 733 Fund shares sold.................................. 1,162 Dividends and interest............................ 189 Other assets........................................ 45 -------- Total assets........................................ 261,859 -------- LIABILITIES Payables: Payable upon return of securities loaned (Note 2d)............................................. 24,764 Investment securities purchased................... 815 Fund shares redeemed.............................. 267 Payable for investment advisory and management fees (Note 3)................................... 199 Payable for distribution fees (Note 3)............ 20 Accrued Expenses.................................... 85 -------- Total liabilities................................... 26,150 -------- Net assets.......................................... $235,709 ========
@ Market value of securities on loan $23,366. SUMMARY OF NET ASSETS: Capital stock and paid-in-capital, par value $0.001 per share; 300,000 shares authorized; 17,293 shares outstanding......................... $227,092 Accumulated net realized gain on investments and foreign currency transactions..................... 156 Unrealized appreciation of investments in securities and the translations of assets and liabilities denominated in foreign currency................... 8,461 -------- Net assets.......................................... $235,709 ========
Class A Net asset value per share ($126,630 / 9,178 shares outstanding)...................................... $13.80 ------ Maximum offering price per share ($13.80 / 94.5%)... $14.60 ====== Class B Net asset value per share ($56,378 / 4,197 shares outstanding)...................................... $13.43 ====== Class C Net asset value per share ($51,606 / 3,840 shares outstanding)...................................... $13.44 ------ Maximum offering price per share ($13.44 / 99.0%)... $13.58 ====== Class Y Net asset value per share ($1,095 / 78 shares outstanding)...................................... $14.09 ======
@@Due to the presentation of the financial statements in thousands, the number or shares and/or dollars round to zero. The accompanying notes are an integral part of this financial statement. 58 THE HARTFORD GLOBAL LEADERS FUND SCHEDULE OF INVESTMENTS OCTOBER 31, 2003 (000'S OMITTED) --------------------------------------------------------------------------------
MARKET SHARES VALUE(C) --------- -------- COMMON STOCK -- 97.7% CANADA -- 1.6% 231 Research in Motion Ltd. (Wireless Telecommunications Carriers)(a)................. $ 10,183 -------- CHINA -- 0.0% 1,160 PICC Property and Casualty Co. Ltd. (Insurance Carriers)(a)(f)................................. 269 -------- FINLAND -- 0.2% 78 Nokia Oyj (Communications Equipment).............. 1,323 -------- FRANCE -- 7.8% 341 Alcatel S.A. (Communications Equipment)........... 4,499 558 Axa (Insurance Carriers).......................... 10,573 74 Pinault-Printemps-Redoute S.A. (Retail -- Department Stores).............................. 7,509 86 Renault S.A. (Retail -- Automobile Dealers)....... 5,662 29 Sanofi-Synthelabo S.A. (Pharmaceutical & Medicine Manufacturing).................................. 1,814 79 Total S.A. (Petro and Coal -- Products Manufacturing).................................. 12,279 1,046 Wanadoo (Internet Providers & Web Search Port)(a)........................................ 7,785 -------- 50,121 -------- GERMANY -- 9.8% 87 Allianz AG (Insurance Carriers)................... 9,319 180 Bayerische Motoren Werke (BMW) AG (Motor Vehicle Manufacturing).................................. 7,231 136 Deutsche Bank AG (Depository Credit Banking)...... 8,991 473 Deutsche Telekom AG (Wired Telecommunications Carriers)(a).................................... 7,415 76 Muenchener Rueckversicherungs-Gesellschaft AG (Insurance and Employee Benefit Funds).......... 9,005 53 Muenchener Rueckversicherungs-Gesellschaft AG Rights (Insurance and Employee Benefit Funds)... 436 118 Schering AG (Pharmaceutical & Medicine Manufacturing).................................. 5,549 220 Siemens AG (Navigate, Measure, Control Instruments).................................... 14,769 -------- 62,715 -------- HONG KONG -- 4.7% 3,952 China Merchants Holdings International Co. Ltd. (Other Transportation Equipment)................ 5,343 2,745 CNOOC Ltd. (Petro and Coal -- Oil & Gas Extraction)..................................... 5,178 1,338 Esprit Holdings Ltd. (Retail -- Clothing Stores)......................................... 4,202 1,366 Hutchison Whampoa Ltd. (Activities Related to Real Estate)......................................... 10,598 1,626 Techtronic Industries Co. Ltd. (Electrical Equip Manuf).......................................... 4,481 -------- 29,802 --------
MARKET SHARES VALUE(C) --------- -------- ISRAEL -- 0.9% 99 Teva Pharmaceutical Industries Ltd. ADR (Pharmaceutical & Medicine Manufacturing)....... $ 5,626 -------- ITALY -- 1.1% 693 Mediaset S.p.A. (Radio and Television Broadcasting)................................... 6,999 -------- JAPAN -- 2.7% 80 Fanuc Ltd. (Electrical Equip Manuf -- Component Other).......................................... 4,786 55 Fast Retailing Co. Ltd. (Retail -- Clothing Stores)......................................... 3,336 @@ Mitsubishi Tokyo Financial Group, Inc. (Monetary Authorities -- Central Bank).................... 2,939 1,204 Nikko Cordial Corp. (Other Financial Investment Activities)..................................... 6,494 -------- 17,555 -------- NETHERLANDS -- 1.2% 149 ASML Holding N.V. (Semiconductor, Electronic Compon)(a)...................................... 2,586 241 European Aeronautic Defense and Space Co. (Aerospace Product and Parts Manufacturing).................................. 4,895 -------- 7,481 -------- RUSSIA -- 1.3% 161 Mining and Metallurgical Co. Norilsk Nickel ADR (Mining -- Metal Ore)........................... 8,297 -------- SOUTH KOREA -- 3.1% 102 Samsung Electronics Co. Ltd. GDR (Audio and Video Equipment)(e)................................... 20,154 -------- SWEDEN -- 5.1% 444 Atlas Copco ABA Shares (Fabricated Metal Manf -- Other).................................. 15,584 9,778 Telefonaktiebolaget LM Ericsson AB (Communications Equipment)...................................... 16,796 -------- 32,380 -------- SWITZERLAND -- 5.5% 1,605 ABB Ltd. (Electrical Equip Manuf)................. 9,435 469 Credit Suisse Group (Monetary Authorities -- Central Bank)................................... 16,526 115 Roche Holding AG (Pharmaceutical & Medicine Manufacturing).................................. 9,540 -------- 35,501 -------- TAIWAN -- 1.0% 6,724 United Microelectronics Corp. (Semiconductor, Electronic Compon)(a)........................... 6,155 -------- UNITED KINGDOM -- 7.7% 595 AMVESCAP plc (Other Financial Investment Activities)..................................... 4,708 163 AstraZeneca plc (Pharmaceutical & Medicine Manufacturing).................................. 7,661
The accompanying notes are an integral part of this financial statement. 59 THE HARTFORD GLOBAL LEADERS FUND SCHEDULE OF INVESTMENTS -- (CONTINUED) OCTOBER 31, 2003 (000'S OMITTED) --------------------------------------------------------------------------------
MARKET SHARES VALUE(C) --------- -------- COMMON STOCK -- (CONTINUED) UNITED KINGDOM -- (CONTINUED) 2,120 British Airways plc (Air Transportation Scheduled)(a)................................... $ 7,482 354 Imperial Tobacco Group plc (Tobacco Manufacturing).................................. 5,869 1,968 Kingfisher plc (Retail -- Other General Merchandise Stores)............................. 9,432 6,726 Vodafone Group plc (Wireless Telecommunications Carriers)....................................... 14,124 -------- 49,276 -------- UNITED STATES -- 44.0% 461 AMR Corp. (Air Transportation Scheduled)(a)....... 6,125 139 Analog Devices, Inc. (with rights) (Semiconductor, Electronic Compon)(a)........................... 6,157 146 Apollo Group, Inc. Class A (Education -- Colleges, Universities and Prof Schools)(a)............... 9,250 331 Applied Materials, Inc. (Semiconductor, Electronic Compon)(a)...................................... 7,740 46 AutoZone, Inc. (Retail -- Auto Parts, Accessories, and Tire Stores)(a)............................. 4,392 229 Bank One Corp. (Credit Card Issuing).............. 9,730 149 Boston Scientific Corp. (Medical Equipment & Supplies Manufacturing)(a)...................... 10,117 762 Cendant Corp. (Other Services -- Other Personal Services)(a).................................... 15,572 522 Cisco Systems, Inc. (with rights) (Communications Equipment)(a)................................... 10,947 284 Citigroup, Inc. (Depository Credit Banking)....... 13,478 348 Coach, Inc. (with rights) (Leather and Allied Product Manufacturing)(a)....................... 12,336 387 Comcast Corp. Special Class A (Cable & Other Subscription Programming)(a).................... 12,630 140 Countrywide Financial Corp. (Real Estate Credit (Mortgage Banking))............................. 14,727 150 Deere & Co. (with rights) (Machinery Manuf -- Agri, Construction, Mining)............ 9,105 472 Dell, Inc. (with rights) (Computer and Peripheral)(a).................................. 17,063 238 Exxon Mobil Corp. (Petro and Coal -- Products Manufacturing).................................. 8,695 68 First Data Corp. (Data Processing Services)....... 2,438 174 Forest Laboratories, Inc. (with rights) (Pharmaceutical & Medicine Manufacturing)(a).... 8,702 146 Freddie Mac (Nondepository Credit Banking)........ 8,217 463 Gillette Co. (with rights) (Fabricated Metal Manuf -- Cutlery and Handtool).................. 14,763
MARKET SHARES VALUE(C) --------- -------- UNITED STATES -- (CONTINUED) 271 Guidant Corp. (Electromedical Manufacturing)...... $ 13,819 42 Lennar Corp. Class A (Construction -- Residential Building)....................................... 3,849 125 Lilly (Eli) & Co. (with rights) (Pharmaceutical & Medicine Manufacturing)......................... 8,314 208 Merrill Lynch & Co., Inc. (Securities, Commodities and Brokerage).................................. 12,308 394 Microsoft Corp. (Information -- Software Publishers)..................................... 10,314 112 Pfizer, Inc. (with rights) (Pharmaceutical & Medicine Manufacturing)......................... 3,523 125 United Technologies Corp. (Aerospace Product and Parts Manufacturing)............................ 10,612 121 Univision Communications, Inc. Class A (Radio and Television Broadcasting)(a)..................... 4,122 10 Wal-Mart Stores, Inc. (Retail -- Department Stores)......................................... 590 134 XM Satellite Radio Holdings, Inc. (Radio and Television Broadcasting)(a)..................... 2,715 225 Yahoo!, Inc. (with rights) (Internet Providers & Web Search Port)(a)............................. 9,840 -------- 282,190 -------- Total common stock (cost $551,436)................................. $626,027 ======== SHARES --------- SHORT-TERM INVESTMENTS -- 11.4% COLLATERAL FOR SECURITIES LENDING -- 8.9% 56,769 Navigator Prime Portfolio......................... $ 56,769 -------- PRINCIPAL AMOUNT --------- FINANCE -- 2.5% $ 2,363 ABN AMRO Joint Repurchase Agreement, 1.00%, 11/03/03 (Note 2f)....................... 2,363 6,219 BNP Paribas Joint Repurchase Agreement, 1.00%, 11/03/03 (Note 2f)....................... 6,219 7,717 UBS Securities Joint Repurchase Agreement, 0.98%, 11/03/03 (Note 2f)....................... 7,717 -------- 16,299 -------- Total short-term investments (cost $73,068).................................. $ 73,068 ======== Total investments in securities (cost $624,504)(b).................................... $699,095 ========
The accompanying notes are an integral part of this financial statement. 60 -------------------------------------------------------------------------------- (a) Presently non-income producing. (b) At October 31, 2003, the cost of securities for federal income tax purposes is $626,145 and the aggregate gross unrealized appreciation and depreciation based on that cost was: Unrealized appreciation......................... $76,055 Unrealized depreciation......................... (3,105) ------- Net unrealized appreciation..................... $72,950 =======
(c) See Note 2b of acompanying Notes to Financial Statements regarding valuation of securities. (d) Note: Percentage of investments as shown is the ratio of the total market value to total net assets. (e) Securities issued within the terms of a private placement memorandum, exempt from registration under Section 144A of the securities Act of 1933, as amended, and may be sold only to dealers in that program or to other "accredited investors". Pursuant to guidelines adopted by the Board of Directors, these issues are determined to be liquid. The aggregate value of these securities at October 31, 2003, was $20,154, which represents 3.14% of total net assets. (f) Security valued in good faith at fair value by, or under the direction of, the Funds' Board of Directors. The aggregate value of these securities as of October 31, 2003, was $269 which represents 0.04% of total net assets.
PERCENTAGE OF DIVERSIFICATION BY INDUSTRY NET ASSETS Basic Materials 6.0% Capital Goods 5.5% Consumer Cyclical 9.1% Consumer Staples 0.9% Energy 4.1% Finance and Insurance 19.9% Health Care 11.7% Services 8.0% Technology 29.5% Transportation 3.0% Short Term Investments 11.4% ------ Total 109.1% ======
FORWARD FOREIGN CURRENCY CONTRACTS OUTSTANDING AS OF OCTOBER 31, 2003
UNREALIZED MARKET CONTRACT DELIVERY APPRECIATION DESCRIPTION VALUE AMOUNT DATE (DEPRECIATION) ----------- ------ -------- --------- -------------- Swiss Francs (Buy) $2,568 $2,579 11/3/2003 $(11) Swiss Francs (Buy) 1,964 1,970 11/4/2003 (6) Euro (Buy) 4,087 4,099 11/3/2003 (12) Euro (Buy) 4,846 4,840 11/4/2003 6 Hong Kong Dollars (Buy) 271 271 11/6/2003 @@ Euro (Sell) 2,121 2,124 11/4/2003 3 Japanese Yen (Sell) 2,956 3,007 11/4/2003 51 ---- $ 31 ====
@@ Due to the presentation of the financial statements in thousands, the number or shares and/or dollars round to zero. STATEMENT OF ASSETS AND LIABILITIES: ASSETS Investments in securities, at value; (cost $624,504) @ ..................................... $ 699,095 Cash............................................... 4 Foreign currency on deposit with custodian (cost $2,300).................................... 2,292 Unrealized appreciation in forward foreign currency contracts........................................ 60 Receivables: Investment securities sold....................... 18,044 Fund shares sold................................. 2,684 Dividends and interest........................... 646 Other assets....................................... 42 --------- Total assets....................................... 722,867 --------- LIABILITIES Unrealized depreciation on forward foreign currency contracts........................................ 29 Payables: Payable upon return of securities loaned (Note 2d)............................................ 56,769 Investment securities purchased.................. 23,661 Fund shares redeemed............................. 795 Payable for investment advisory and management fees (Note 3).................................. 444 Payable for distribution fees (Note 3)........... 40 Accrued Expenses................................... 250 --------- Total liabilities.................................. 81,988 --------- Net assets......................................... $ 640,879 =========
@ Market value of securities on loan $54,316. SUMMARY OF NET ASSETS: Capital stock and paid-in-capital, par value $0.001 per share; 300,000 shares authorized; 46,294 shares outstanding............................... $ 729,871 Accumulated undistributed net investment loss...... (32) Accumulated net realized loss on investments and foreign currency transactions.................... (163,580) Unrealized appreciation of investments in securities and the translations of assets and liabilities denominated in foreign currency...... 74,620 --------- Net assets......................................... $ 640,879 =========
Class A Net asset value per share ($464,610 / 33,290 shares outstanding)...................................... $13.96 ------ Maximum offering price per share ($13.96 / 94.5%)... $14.77 ====== Class B Net asset value per share ($78,923 / 5,869 shares outstanding)...................................... $13.45 ====== Class C Net asset value per share ($78,303 / 5,807 shares outstanding)...................................... $13.49 ------ Maximum offering price per share ($13.49 / 99.0%)... $13.63 ====== Class Y Net asset value per share ($19,043 / 1,328 shares outstanding)...................................... $14.34 ======
The accompanying notes are an integral part of this financial statement. 61 THE HARTFORD GLOBAL TECHNOLOGY FUND SCHEDULE OF INVESTMENTS OCTOBER 31, 2003 (000'S OMITTED) --------------------------------------------------------------------------------
MARKET SHARES VALUE(C) --------- -------- COMMON STOCK -- 94.1% AUDIO AND VIDEO EQUIPMENT -- 5.0% 10 Samsung Electronics Co. Ltd. ..................... $ 1,960 35 Sony Corp. ....................................... 1,219 -------- 3,179 -------- CABLE AND OTHER PROGRAM DISTRIBUTION -- 1.1% 46 Time Warner, Inc.(a).............................. 708 -------- COMMUNICATIONS EQUIPMENT -- 9.9% 138 Cisco Systems, Inc. (with rights)(a).............. 2,899 116 Motorola, Inc. (with rights)...................... 1,563 110 Nokia Oyj ADR..................................... 1,864 -------- 6,326 -------- COMPUTER AND PERIPHERAL -- 13.0% 64 Dell, Inc. (with rights)(a)....................... 2,326 102 EMC Corp.(a)...................................... 1,410 46 Hewlett-Packard Co. .............................. 1,015 15 International Business Machines Corp. ............ 1,378 138 Maxtor Corp.(a)................................... 1,885 14 Sabre Holdings Corp. ............................. 297 -------- 8,311 -------- COMPUTER SYSTEMS DESIGN AND RELATED SERVICES -- 2.8% 34 BISYS Group, Inc.(a).............................. 483 23 Computer Sciences Corp.(a)........................ 927 7 Digital Insight Corp.(a).......................... 149 24 webMethods, Inc. (with rights)(a)................. 210 -------- 1,769 -------- DATA PROCESSING SERVICES -- 3.8% 68 First Data Corp. ................................. 2,431 -------- ELECTRICAL EQUIP MANUFACTURING -- COMPONENT OTHER -- 4.6% 16 American Power Conversion Corp. .................. 324 163 Corning, Inc.(a).................................. 1,788 11 NEC Electronics Corp. ............................ 846 -------- 2,958 -------- INFORMATION -- SOFTWARE PUBLISHERS -- 15.3% 240 Brocade Communications Systems, Inc. (with rights)(a)...................................... 1,573 18 Cognos, Inc.(a)................................... 617 197 Microsoft Corp. .................................. 5,152 82 Red Hat, Inc.(a).................................. 1,235 75 VeriSign, Inc. (with rights)(a)................... 1,192 -------- 9,769 -------- INTERNET PROVIDERS & WEB SEARCH PORT -- 3.7% 55 Yahoo!, Inc. (with rights)(a)..................... 2,386 -------- MANAGEMENT, SCIENTIFIC, AND TECH CONSULTING SVCS -- 2.0% 54 Accenture Ltd. Class A(a)......................... 1,268 --------
MARKET SHARES VALUE(C) --------- -------- OTHER SERVICES -- OTHER PERSONAL SERVICES -- 2.6% 81 Cendant Corp.(a).................................. $ 1,661 -------- OTHER TELECOMMUNICATIONS -- 1.0% 140 Nortel Networks Corp.(a).......................... 622 -------- SEMICONDUCTOR, ELECTRONIC COMPON -- 27.9% 35 Analog Devices, Inc. (with rights)(a)............. 1,565 56 Applied Materials, Inc.(a)........................ 1,297 66 ASE Test Ltd. ADR(a).............................. 817 72 ASML Holding N.V.(a).............................. 1,256 75 Fairchild Semiconductor International, Inc.(a).... 1,684 36 Intel Corp. ...................................... 1,183 11 KLA-Tencor Corp.(a)............................... 613 15 Marvell Technology Group Ltd.(a).................. 662 32 NVIDIA Corp.(a)................................... 573 28 RF Micro Devices, Inc. (with rights)(a)........... 328 93 STMicroelectronics N.V. .......................... 2,474 338 Taiwan Semiconductor Manufacturing Co. Ltd.(a).... 667 93 Texas Instruments, Inc. (with rights)............. 2,695 9 Tokyo Electron Ltd. .............................. 624 667 United Microelectronics Corp.(a).................. 611 14 Varian Semiconductor Equipment Associates, Inc.(a)......................................... 667 -------- 17,716 -------- SOUND RECORDING INDUSTRIES -- 0.0% 2 Embarcadero Technologies, Inc.(a)................. 31 -------- WHOLESALERS -- PROFESSIONAL-COMMERCIAL EQUIP MERCH -- 1.4% 59 Ingram Micro, Inc. Class A(a)..................... 878 -------- Total common stock (cost $48,946).................................. $ 60,013 ======== SHARES --------- SHORT-TERM INVESTMENTS -- 6.1% SECURITIES PURCHASED WITH PROCEEDS FROM SECURITIES LENDING -- 2.3% 1,449 Navigator Prime Portfolio......................... $ 1,449 -------- PRINCIPAL AMOUNT --------- BANKING -- 3.8% $ 350 ABN AMRO Joint Repurchase Agreement, 1.00%, 11/03/03 (Note 2f)....................... 350 920 BNP Paribas Joint Repurchase Agreement, 1.00%, 11/03/03 (Note 2f)....................... 920 1,141 UBS Securities Joint Repurchase Agreement, 0.98%, 11/03/03 (Note 2f)....................... 1,141 -------- 2,411 -------- Total short-term investments (cost $3,860)................................... $ 3,860 ======== Total investments in securities (cost $52,806)(b)............................... $ 63,873 ========
The accompanying notes are an integral part of this financial statement. 62 -------------------------------------------------------------------------------- (a) Presently non-income producing. (b) At October 31, 2003, the cost of securities for federal income tax purposes is $53,815 and the aggregate gross unrealized appreciation and depreciation based on that cost was: Unrealized appreciation......................... $10,800 Unrealized depreciation......................... (742) ------- Net unrealized appreciation..................... $10,058 =======
(c) See Note 2b of accompanying Notes of Financial Statements regarding valuation of securities. (d) Note: Percentage of investments as shown is the ratio of the total market value to total net assets. Market value of investments in foreign securities represents 22.32% of total net assets as of October 31, 2003. @@ Due to the presentation of the financial statements in thousands, the number or shares and/or dollars round to zero.
PERCENTAGE OF DIVERSIFICATION BY COUNTRY NET ASSETS -------------------------- ------------- United States 77.9% Japan 4.2% Switzerland 3.9% Taiwan 3.3% South Korea 3.1% Finland 2.9% Netherlands 2.0% Canada 1.9% Bermuda 1.0% ----- Total 100.2% =====
STATEMENT OF ASSETS AND LIABILITIES: ASSETS Investments in securities, at value; (cost $52,806) @ ....................................... $ 63,873 Cash................................................ 1 Foreign currency on deposit with custodian (cost $53).............................................. 53 Receivables: Investment securities sold........................ 2,068 Fund shares sold.................................. 446 Dividends and interest............................ 39 Other assets........................................ 15 -------- Total assets........................................ 66,495 -------- LIABILITIES Payables: Payable upon return of securities loaned (Note 2d)............................................. 1,449 Investment securities purchased................... 1,096 Fund shares redeemed.............................. 94 Payable for investment advisory and management fees (Note 3)................................... 52 Payable for distribution fees (Note 3)............ 5 Accrued Expenses.................................... 21 -------- Total liabilities................................... 2,717 -------- Net assets.......................................... $ 63,778 ========
@ Market value of securities on loan $985. SUMMARY OF NET ASSETS: Capital stock and paid-in-capital, par value $0.001 per share; 300,000 shares authorized; 13,789 shares outstanding................................ $118,834 Accumulated net realized loss on investments........ (66,123) Unrealized appreciation of investments in securities........................................ 11,067 -------- Net assets.......................................... $ 63,778 ========
Class A Net asset value per share ($32,388 / 6,915 shares outstanding)....................................... $4.68 ----- Maximum offering price per share ($4.68 / 94.5%)..... $4.95 ===== Class B Net asset value per share ($13,991 / 3,069 shares outstanding)....................................... $4.56 ===== Class C Net asset value per share ($16,513 / 3,619 shares outstanding)....................................... $4.56 ----- Maximum offering price per share ($4.56 / 99.0%)..... $4.61 ===== Class Y Net asset value per share ($886 / 186 shares outstanding)....................................... $4.75 =====
The accompanying notes are an integral part of this financial statement. 63 THE HARTFORD GROWTH FUND SCHEDULE OF INVESTMENTS OCTOBER 31, 2003 (000'S OMITTED) --------------------------------------------------------------------------------
MARKET SHARES VALUE(C) --------- -------- COMMON STOCK -- 94.9% CAPITAL GOODS -- 0.9% 52 General Dynamics Corp. ........................... $ 4,377 -------- CONSUMER CYCLICAL -- 8.2% 151 AutoZone, Inc.(a)................................. 14,473 250 eBay, Inc.(a)..................................... 13,957 54 Lennar Corp. Class A.............................. 4,941 254 Mattel, Inc. ..................................... 4,915 -------- 38,286 -------- FINANCE AND INSURANCE -- 15.0% 255 ACE Ltd. ADR (with rights)........................ 9,194 51 Bank One Corp. ................................... 2,148 83 Capital One Financial Corp. ...................... 5,046 319 Citigroup, Inc. .................................. 15,135 227 Countrywide Financial Corp. ...................... 23,862 63 Fannie Mae........................................ 4,538 97 Franklin Resources, Inc. ......................... 4,586 169 Medco Health Solutions, Inc.(a)................... 5,616 -------- 70,125 -------- HEALTH CARE -- 17.8% 196 Abbott Laboratories (with rights)................. 8,336 321 AstraZeneca plc ADR............................... 15,296 208 Forest Laboratories, Inc. (with rights)(a)........ 10,387 73 Genzyme Corp.(a).................................. 3,346 45 Gilead Sciences, Inc.(a).......................... 2,451 348 Guidant Corp. .................................... 17,731 239 Lilly (Eli) & Co. (with rights)................... 15,935 168 McKesson Corp. ................................... 5,073 279 Serono S.A. ADR................................... 4,805 -------- 83,360 -------- SERVICES -- 19.2% 316 Apollo Group, Inc. Class A(a)..................... 20,095 230 Clear Channel Communications, Inc. ............... 9,393 346 Comcast Corp. Special Class A(a).................. 11,288 118 InterActive Corp.(a).............................. 4,343 189 Moody's Corp. .................................... 10,911 209 Omnicom Group, Inc. .............................. 16,662 151 SunGard Data Systems, Inc. (with rights)(a)....... 4,227 369 Univision Communications, Inc. Class A(a)......... 12,528 -------- 89,447 -------- TECHNOLOGY -- 33.8% 267 Altera Corp.(a)................................... 5,403 238 Analog Devices, Inc. (with rights)(a)............. 10,555 209 Applied Materials, Inc.(a)........................ 4,888 335 Cisco Systems, Inc. (with rights)(a).............. 7,028 1,062 Corning, Inc.(a).................................. 11,657 131 Cox Communications, Inc. Class A(a)............... 4,470 641 Dell, Inc. (with rights)(a)....................... 23,135 284 EchoStar Communications Corp. Class A(a).......... 10,871 351 EMC Corp.(a)...................................... 4,860
MARKET SHARES VALUE(C) --------- -------- TECHNOLOGY -- (CONTINUED) 401 First Data Corp. ................................. $ 14,309 444 Microsoft Corp. .................................. 11,616 104 QUALCOMM, Inc. ................................... 4,945 245 Seagate Technology................................ 5,623 187 Symantec Corp.(a)................................. 12,484 275 Telefonaktiebolaget LM Ericsson ADR(a)............ 4,699 487 Yahoo!, Inc. (with rights)(a)..................... 21,302 -------- 157,845 -------- Total common stock (cost $373,298)................................. $443,440 ======== SHARES --------- SHORT-TERM INVESTMENTS -- 10.1% SECURITIES PURCHASED WITH PROCEEDS FROM SECURITIES LENDING -- 6.9% 32,397 Boston Global Investment Trust.................... $ 32,397 -------- PRINCIPAL AMOUNT --------- FINANCE -- 3.2% $ 2,154 ABN AMRO Joint Repurchase Agreement, 1.00%, 11/03/03 (Note 2f)....................... 2,154 5,668 BNP Paribas Joint Repurchase Agreement, 1.00%, 11/03/03 (Note 2f)....................... 5,668 7,035 UBS Securities Joint Repurchase Agreement, 0.98%, 11/03/03 (Note 2f)....................... 7,035 -------- 14,857 -------- Total short-term investments (cost $47,254).................................. $ 47,254 ======== Total investments in securities (cost $420,552)(b).............................. $490,694 ========
(a) Presently non-income producing. (b) At October 31, 2003, the cost of securities for federal income tax purposes is $421,454 and the aggregate gross unrealized appreciation and depreciation based on that cost was: Unrealized appreciation......................... $71,749 Unrealized depreciation......................... (2,509) ------- Net unrealized appreciation..................... $69,240 =======
(c) See Note 2b of accompanying Notes to Financial Statements regarding valuation of securities. (d) Note: Percentage of investments as shown is the ratio of the total market value to total net assets. Market value of investments in foreign securities represents 5.31% of total net assets as of October 31, 2003. The accompanying notes are an integral part of this financial statement. 64 THE HARTFORD GROWTH FUND SCHEDULE OF INVESTMENTS -- (CONTINUED) OCTOBER 31, 2003 (000'S OMITTED) -------------------------------------------------------------------------------- STATEMENT OF ASSETS AND LIABILITIES: ASSETS Investments in securities, at value; (cost $420,552) @ ...................................... $490,694 Receivables: Investment securities sold........................ 11,618 Fund shares sold.................................. 4,719 Dividends and interest............................ 284 Other assets........................................ 65 -------- Total assets........................................ 507,380 -------- LIABILITIES Payables: Payable upon return of securities loaned (Note 2d)............................................. 32,397 Investment securities purchased................... 7,345 Bank overdraft.................................... 1 Fund shares redeemed.............................. 115 Payable for investment advisory and management fees (Note 3)................................... 304 Payable for distribution fees (Note 3)............ 24 Accrued Expenses.................................... 54 -------- Total liabilities................................... 40,240 -------- Net assets.......................................... $467,140 ======== @ Market value of securities on loan $31,454. SUMMARY OF NET ASSETS: Capital stock and paid-in-capital, par value $0.0001 per share; 21,000,000 shares authorized; 31,214 shares outstanding................................ $485,148 Accumulated net realized loss on investments........ (88,150) Unrealized appreciation of investments in securities........................................ 70,142 -------- Net assets.......................................... $467,140 ========
Class A Net asset value per share ($72,186 / 4,751 shares outstanding)...................................... $15.19 ------ Maximum offering price per share($15.19 / 94.5%).... $16.07 ====== Class B Net asset value per share ($11,552 / 843 shares outstanding)...................................... $13.70 ====== Class C Net asset value per share ($11,896 / 869 shares outstanding)...................................... $13.70 ------ Maximum offering price per share($13.70 / 99.0%).... $13.84 ====== Class H Net asset value per share ($27,032 / 1,967 shares outstanding)...................................... $13.74 ====== Class L Net asset value per share ($316,451 / 20,742 shares outstanding)...................................... $15.26 ------ Maximum offering price per share($15.26 / 95.25%)... $16.02 ====== Class M Net asset value per share ($23,523 / 1,714 shares outstanding)...................................... $13.72 ====== Class N Net asset value per share ($4,499 / 328 shares outstanding)...................................... $13.72 ====== Class Y Net asset value per share ($1 / @@ shares outstanding)...................................... $15.31 ======
@@ Due to the presentation of the financial statements in thousands, the number or shares and/or dollars round to zero. The accompanying notes are an integral part of this financial statement. 65 THE HARTFORD GROWTH OPPORTUNITIES FUND SCHEDULE OF INVESTMENTS OCTOBER 31, 2003 (000'S OMITTED) --------------------------------------------------------------------------------
MARKET SHARES VALUE(C) --------- --------- COMMON STOCK -- 98.2% BASIC MATERIALS -- 6.0% 159 AngloGold Ltd. ADR................................ $ 6,132 192 Arch Coal, Inc. .................................. 4,692 268 Jarden Corp.(a)................................... 11,070 827 Kinross Gold Corp.(a)............................. 6,794 254 Precision Castparts Corp. ........................ 10,426 --------- 39,114 --------- CONSUMER CYCLICAL -- 24.3% 86 Advance Auto Parts, Inc.(a)....................... 6,688 109 Aeropostale, Inc.(a).............................. 3,353 962 American Tower Corp. Class A(a)................... 11,161 67 AutoZone, Inc.(a)................................. 6,410 1,798 Burberry Group plc................................ 12,022 155 CDW Corp. ........................................ 9,296 213 Coach, Inc. (with rights)(a)...................... 7,562 197 D.R. Horton, Inc. ................................ 7,829 89 Dick's Sporting Goods, Inc.(a).................... 4,088 666 Gap, Inc. ........................................ 12,709 416 Hollywood Entertainment Corp.(a).................. 6,316 218 Home Depot, Inc. ................................. 8,092 90 Lennar Corp. Class A.............................. 8,285 272 Michaels Stores, Inc. ............................ 12,921 20 P. F. Chang's China Bistro, Inc.(a)............... 975 402 PetSmart, Inc. ................................... 10,295 144 Pulte Homes, Inc. ................................ 12,423 250 RARE Hospitality International, Inc.(a)........... 6,194 132 Reebok International Ltd. (with rights)........... 5,145 1,414 Rinker Group Ltd. ................................ 6,369 --------- 158,133 --------- CONSUMER STAPLES -- 3.4% 167 Altria Group, Inc. ............................... 7,756 174 Bunge Ltd. ....................................... 4,704 309 Constellation Brands, Inc. Class A(a)............. 9,700 --------- 22,160 --------- FINANCE AND INSURANCE -- 8.4% 150 Bank One Corp. ................................... 6,367 113 BlackRock, Inc. .................................. 5,792 195 Brown & Brown, Inc. (with rights)................. 5,947 85 Countrywide Financial Corp. ...................... 8,935 472 E*Trade Financial Corp. (with rights)(a).......... 4,859 132 Fannie Mae........................................ 9,463 75 Freddie Mac....................................... 4,193 281 Medco Health Solutions, Inc.(a)................... 9,313 --------- 54,869 --------- HEALTH CARE -- 18.0% 124 Abbott Laboratories (with rights)................. 5,268 114 AmerisourceBergen Corp. (with rights)............. 6,449 125 Amylin Pharmaceuticals, Inc.(a)................... 3,427 218 Cardinal Health, Inc. ............................ 12,912 186 Cephalon, Inc.(a)................................. 8,749 451 Cytyc Corp.(a).................................... 5,825 387 Edwards Lifesciences Corp.(a)..................... 11,220 248 Forest Laboratories, Inc. (with rights)(a)........ 12,387 162 Guidant Corp. .................................... 8,243 269 Human Genome Sciences, Inc. (with rights)(a)...... 3,742
MARKET SHARES VALUE(C) --------- --------- HEALTH CARE -- (CONTINUED) 267 McKesson Corp. ................................... $ 8,067 126 Medicines Co.(a).................................. 3,347 375 Millennium Pharmaceuticals, Inc. (with rights)(a)...................................... 5,972 52 Neurocrine Biosciences, Inc.(a)................... 2,430 105 NPS Pharmaceuticals, Inc.(a)...................... 2,773 31 Respironics, Inc.(a).............................. 1,272 384 Serono S.A. ADR................................... 6,611 167 Telik, Inc.(a).................................... 3,400 299 Viasys Healthcare, Inc. (with rights)(a).......... 5,398 --------- 117,492 --------- SERVICES -- 12.9% 233 Accenture Ltd. Class A(a)......................... 5,452 187 Alliance Data Systems Corp.(a).................... 5,195 112 Apollo Group, Inc. Class A(a)..................... 7,134 918 Cendant Corp.(a).................................. 18,749 188 Comcast Corp. Class A(a).......................... 6,360 123 Education Management Corp.(a)..................... 7,784 284 InterActive Corp.(a).............................. 10,415 116 Moody's Corp. .................................... 6,714 240 Netscreen Technologies, Inc.(a)................... 6,375 1,440 Sirius Satellite Radio, Inc.(a)................... 3,384 158 Wynn Resorts Ltd.(a).............................. 3,181 168 XM Satellite Radio Holdings, Inc.(a).............. 3,398 --------- 84,141 --------- TECHNOLOGY -- 22.6% 335 Altera Corp.(a)................................... 6,785 290 Amdocs Ltd.(a).................................... 6,221 163 American Power Conversion Corp. .................. 3,306 81 Analog Devices, Inc. (with rights)(a)............. 3,577 144 Cognos, Inc.(a)................................... 4,946 489 Corning, Inc.(a).................................. 5,370 286 Crown Castle International Corp.(a)............... 3,617 203 Dell, Inc. (with rights)(a)....................... 7,332 133 DENTSPLY International, Inc. ..................... 5,860 378 Epcos AG(a)....................................... 7,777 221 Fossil, Inc.(a)................................... 5,959 163 FuelCell Energy, Inc.(a).......................... 2,480 1,187 Gemstar-TV Guide International, Inc.(a)........... 5,569 82 Global Payments, Inc. (with rights)............... 3,394 600 MEMC Electronic Materials, Inc.(a)................ 6,716 569 Nextel Communications, Inc. Class A(a)............ 13,775 91 Palatin Technologies, Inc.(a)..................... 391 134 QUALCOMM, Inc. ................................... 6,374 171 Quantum Fuel Systems Technologies Worldwide, Inc.(a)......................................... 1,558 309 STMicroelectronics N.V. .......................... 8,243 595 Taiwan Semiconductor Manufacturing Co. Ltd. ADR(a).......................................... 6,576 2,724 Techtronic Industries Co. Ltd..................... 7,508 192 VeriSign, Inc. (with rights)(a)................... 3,047 251 Vodafone Group plc ADR............................ 5,298 223 Websense, Inc.(a)................................. 5,214 227 Yahoo!, Inc. (with rights)(a)..................... 9,907 --------- 146,800 ---------
The accompanying notes are an integral part of this financial statement. 66 --------------------------------------------------------------------------------
MARKET SHARES VALUE(C) --------- --------- COMMON STOCK -- (CONTINUED) TRANSPORTATION -- 2.6% 128 Expeditors International of Washington, Inc. ..... $ 4,809 232 Ryanair Holdings plc ADR(a)....................... 11,943 --------- 16,752 --------- Total common stock (cost $530,237)................................. $ 639,461 ========= SHARES --------- SHORT-TERM INVESTMENTS -- 10.5% SECURITIES PURCHASED WITH PROCEEDS FROM SECURITIES LENDING -- 8.2% 53,444 Boston Global Investment Trust.................... $ 53,444 --------- PRINCIPAL AMOUNT --------- FINANCE -- 2.3% $ 2,158 ABN AMRO Joint Repurchase Agreement, 1.00%, 11/03/03 (Note 2f)....................... 2,158 5,680 BNP Paribas Joint Repurchase Agreement, 1.00%, 11/03/03 (Note 2f)....................... 5,680 7,050 UBS Securities Joint Repurchase Agreement, 0.98%, 11/03/03 (Note 2f)....................... 7,050 --------- 14,888 --------- Total short-term investments (cost $68,332).................................. $ 68,332 ========= Total investments in securities (cost $598,569) (b)............................. $ 707,793 =========
(a) Presently non-income producing. (b) At October 31, 2003 the cost of securities for federal income tax purposes is $598,762 and the aggregate gross unrealized appreciation and depreciation based on that cost was: Unrealized appreciation........................ $114,222 Unrealized depreciation........................ (5,191) -------- Net unrealized appreciation.................... $109,031 ========
(c) See Note 2b of accompanying Notes of Financial Statements regarding valuation of securities. (d) Note: Percentage of investments as shown is the ratio of the total market value to total net assets. Market value of investments in foreign securities represents 14.80% of total net assets as of October 31, 2003. FORWARD FOREIGN CURRENCY CONTRACTS OUTSTANDING AS OF OCTOBER 31, 2003
MARKET CONTRACT DELIVERY UNREALIZED DESCRIPTION VALUE AMOUNT DATE APPRECIATION ----------- ------ -------- --------- -------------- Australian Dollar (Buy) $84 $84 11/3/2003 $@@ Australian Dollar (Buy) 24 24 11/5/2003 @@ Australian Dollar (Buy) 94 93 11/6/2003 1 -- $1 ==
STATEMENT OF ASSETS AND LIABILITIES: ASSETS Investments in securities, at value; (cost $598,569) @ ..................................... $ 707,793 Cash............................................... 1 Receivables: Investment securities sold....................... 6,300 Fund shares sold................................. 942 Dividends and interest........................... 258 Other assets....................................... 44 --------- Total assets....................................... 715,338 --------- LIABILITIES Payables: Payable upon return of securities loaned (Note 2d)............................................ 53,444 Investment securities purchased.................. 9,322 Fund shares redeemed............................. 563 Payable for investment advisory and management fees (Note 3).................................. 414 Payable for distribution fees (Note 3)........... 30 Accrued Expenses................................... 75 --------- Total liabilities.................................. 63,848 --------- Net assets......................................... $ 651,490 ========= SUMMARY OF NET ASSETS: Capital stock and paid-in-capital, par value $0.0001 per share; 19,250,000 shares authorized; 30,938 shares outstanding........................ $ 693,699 Accumulated undistributed net investment loss...... (1) Accumulated net realized loss on investments and foreign currency transactions.................... (151,432) Unrealized appreciation of investments in securities and the translations of assets and liabilities denominated in foreign currency...... 109,224 --------- Net assets......................................... $ 651,490 =========
@ Market value of securities on loan $51,513. Class A Net asset value per share ($17,149 / 807 shares outstanding)...................................... $21.25 ------ Maximum offering price per share ($21.25 / 94.5%)... $22.49 ====== Class B Net asset value per share ($4,470 / 236 shares outstanding)...................................... $18.91 ====== Class C Net asset value per share ($5,238 / 277 shares outstanding)...................................... $18.91 ------ Maximum offering price per share($18.91 / 99.0%).... $19.10 ====== Class H Net asset value per share ($45,121 / 2,376 shares outstanding)...................................... $18.99 ====== Class L Net asset value per share ($517,892 / 24,241 shares outstanding)...................................... $21.36 ------ Maximum offering price per share ($21.36 / 95.25%)........................................... $22.43 ====== Class M Net asset value per share ($24,361 / 1,284 shares outstanding)...................................... $18.97 ====== Class N Net asset value per share ($4,773 / 252 shares outstanding)...................................... $18.97 ====== Class Y Net asset value per share ($1 / @@ shares outstanding)...................................... $21.42 ====== Class Z Net asset value per share ($32,485 / 1,465 shares outstanding)...................................... $22.17 ======
@@Due to the presentation of the financial statements in thousands, the number or shares and/or dollars round to zero. The accompanying notes are an integral part of this financial statement. 67 THE HARTFORD HIGH YIELD FUND SCHEDULE OF INVESTMENTS OCTOBER 31, 2003 (000'S OMITTED) --------------------------------------------------------------------------------
STANDARD AND POOR'S PRINCIPAL RATING MARKET AMOUNT (UNAUDITED) VALUE(C) --------- ----------- -------- CORPORATE BONDS: INVESTMENT GRADE -- 8.1% BASIC MATERIALS -- 0.7% $ 210 Cypress Amax Minerals Co., 8.375%, 02/01/2023..... BBB- $ 207 506 Georgia Gulf Corp., 7.625%, 11/15/2005.............................. BBB- 524 1,000 Methanex Corp., 8.75%, 08/15/2012............................... BBB- 1,090 650 Potlatch Corp., 12.50%, 12/01/2009.............................. Baa3* 767 -------- 2,588 -------- CAPITAL GOODS -- 1.6% 385 Tyco International Group S.A., 3.125%, 01/15/2023...................................... BBB- 438 1,775 Tyco International Group S.A., 6.375%, 02/15/2006.............................. BBB- 1,879 3,400 Tyco International Group S.A., 6.75%, 02/15/2011............................... BBB- 3,617 -------- 5,934 -------- CONSUMER CYCLICAL -- 0.1% 265 Toys 'R' Us, Inc., 7.875%, 04/15/2013.............................. BBB- 293 -------- HEALTH CARE -- 1.2% 750 Bausch & Lomb, Inc., 6.95%, 11/15/2007............................... BBB- 810 950 HCA, Inc., 6.95%, 05/01/2012............................... BBB- 984 160 HCA, Inc., 7.00%, 07/01/2007............................... BBB- 172 1,020 HCA, Inc., 7.125%, 06/01/2006.............................. BBB- 1,092 350 HCA, Inc., 7.50%, 11/15/2095............................... BBB- 326 320 Manor Care, Inc., 8.00%, 03/01/2008............................... BBB 358 540 Watson Pharmaceuticals, Inc., 7.125%, 05/15/2008.............................. BBB- 580 -------- 4,322 -------- SERVICES -- 0.9% 900 American Greetings Corp., 6.10%, 08/01/2028............................... BBB- 914 1,400 Hilton Hotels Corp., 7.625%, 05/15/2008.............................. BBB- 1,542 525 Hilton Hotels Corp., 7.625%, 12/01/2012.............................. BBB- 581 125 Lenfest Communications, Inc., 10.50%, 06/15/2006.............................. BBB 146 175 Quebecor World (USA), Inc., 7.75%, 02/15/2009............................... BBB- 183 -------- 3,366 --------
STANDARD AND POOR'S PRINCIPAL RATING MARKET AMOUNT (UNAUDITED) VALUE(C) --------- ----------- -------- TECHNOLOGY -- 2.0% $ 1,415 Intelsat Ltd., 6.50%, 11/01/2013(g)............................ BBB+ $ 1,411 720 Rogers Cable, Inc., 6.25%, 06/15/2013............................... BBB- 720 2,800 Rogers Cable, Inc., 8.75%, 05/01/2032............................... BBB- 3,087 1,880 Telus Corp., 8.00%, 06/01/2011............................... BBB 2,161 @@ VoiceStream Wireless Corp., 10.375%, 11/15/2009(e).......................... BBB+ @@ -------- 7,379 -------- TRANSPORTATION -- 0.3% 850 Delta Air Lines, Inc., 7.57%, 05/18/2012............................... A 875 -------- UTILITIES -- 1.3% 1,130 Centerpoint Energy Resources Corp., 7.875%, 04/01/2013(g)........................... BBB 1,284 875 Centerpoint Energy, Inc., 6.85%, 06/01/2015(g)............................ BBB- 882 125 El Paso Electric Co., 9.40%, Ser E 05/01/2011......................... BBB- 146 125 Reliant Energy Resources, 7.75%, 02/15/2011............................... BBB 149 1,335 Westar Energy, Inc., 8.50%, 07/01/2022............................... BBB- 1,387 800 Western Resources, Inc., 7.65%, 04/15/2023............................... BBB- 830 -------- 4,678 -------- Total corporate bonds: investment grade (cost $27,411).................................. $ 29,435 ======== CORPORATE BONDS: NON-INVESTMENT GRADE -- 86.0% BASIC MATERIALS -- 11.4% 2,300 Abitibi-Consolidated Finance L.P., 7.875%, 08/01/2009.............................. BB+ 2,430 475 Abitibi-Consolidated, Inc., 8.85%, 08/01/2030............................... BB+ 490 775 Airgas, Inc., 9.125%, 10/01/2011.............................. B+ 866 2,340 AK Steel Corp., 7.875%, 02/15/2009.............................. B+ 1,638 130 ARCO Chemical Co., 9.80%, 02/01/2020............................... BB- 116 1,425 Ball Corp., 6.875%, 12/15/2012(g)........................... BB 1,486 685 Boise Cascade Corp., 7.35%, 02/01/2016............................... BB+ 693 1,375 Boise Cascade Corp., 7.50%, 02/01/2008............................... BB+ 1,464 1,530 Bowater Canada Finance, 7.95%, 11/15/2011............................... BB+ 1,552
The accompanying notes are an integral part of this financial statement. 68 --------------------------------------------------------------------------------
STANDARD AND POOR'S PRINCIPAL RATING MARKET AMOUNT (UNAUDITED) VALUE(C) --------- ----------- -------- CORPORATE BONDS: NON-INVESTMENT GRADE -- (CONTINUED) BASIC MATERIALS -- (CONTINUED) $ 640 Bowater, Inc., 6.50%, 06/15/2013............................... BB+ $ 588 785 Cascades, Inc., 7.25%, 02/15/2013(g)............................ BB+ 820 200 Cascades, Inc., 7.25%, 02/15/2013............................... BB+ 209 505 Crown Cork & Seal Co., Inc., 8.00%, 04/15/2023............................... B 439 1,076 Crown European Holdings S.A., 9.50%, 03/01/2011............................... B+ 1,194 1,032 FMC Corp., 10.25%, 11/01/2009.............................. BB+ 1,207 855 General Chemical Industrial Products, Inc., 10.625%, 05/01/2009(a).......................... NR 257 400 Geon Co., 6.875%, 12/15/2005.............................. BB- 380 263 Georgia Gulf Corp., 10.375%, 11/01/2007............................. BB- 277 550 Georgia-Pacific Corp., 7.25%, 06/01/2028............................... BB+ 501 1,175 Georgia-Pacific Corp., 7.50%, 05/15/2006............................... BB+ 1,240 565 Georgia-Pacific Corp., 8.875%, 05/15/2031.............................. BB+ 600 520 Georgia-Pacific Corp., 9.875%, 11/01/2021.............................. BB+ 538 600 Hercules, Inc., 11.125%, 11/15/2007............................. BB- 696 260 Hercules, Inc., 6.60%, 08/01/2027............................... BB 264 150 Huntsman ICI Chemicals, Inc. (Euro), 10.125%, 07/01/2009............................. CCC+ 152 1,120 IMC Global, Inc., 11.25%, Ser B 06/01/2011........................ B+ 1,156 300 Jefferson Smurfit Corp., 7.50%, 06/01/2013............................... B 306 275 Jefferson Smurfit Corp., 8.25%, 10/01/2012............................... B 289 415 Kappa Beheer B.V. (Euro), 10.625%, 07/15/2009............................. B 516 720 Longview Fibre Co., 10.00%, 01/15/2009.............................. B+ 814 535 Lyondell Chemical Co., 9.625%, Ser A 05/01/2007........................ BB- 543 1,550 Lyondell Chemical Co., 9.875%, Ser B 05/01/2007........................ BB- 1,573 1,760 Nalco Co., 8.875%, 11/15/2013(g)........................... B 1,830 240 Norampac, Inc., 6.75%, 06/01/2013(g)............................ BB+ 250
STANDARD AND POOR'S PRINCIPAL RATING MARKET AMOUNT (UNAUDITED) VALUE(C) --------- ----------- -------- BASIC MATERIALS -- (CONTINUED) $ 180 Norske Skog Canada, Inc., 8.625%, Ser D 06/15/2011........................ BB $ 185 265 Oregon Steel Mills, Inc., 10.00%, 07/15/2009.............................. B 217 380 Owens-Brockway Glass Container, 7.75%, 05/15/2011............................... BB 401 3,295 Owens-Brockway Glass Container, 8.875%, 02/15/2009.............................. BB 3,575 390 Pacifica Papers, Inc., 10.00%, 03/15/2009.............................. BB 413 780 Peabody Energy Corp., 6.875%, 03/15/2013.............................. BB- 821 905 Plastipak Holdings, Inc., 10.75%, 09/01/2011.............................. B+ 1,000 715 PolyOne Corp., 8.875%, 05/01/2012.............................. BB- 597 115 PolyOne Corp., 10.625%, 05/15/2010............................. BB- 106 850 Rhodia S.A., 8.875%, 06/01/2011(g)........................... B 757 2,250 Rhodia S.A., (Euro), 9.25%, 06/01/2011(g)............................ B 2,204 133 Silgan Holdings, Inc., 9.00%, 06/01/2009............................... B+ 137 810 Stone Container Corp., 8.375%, 07/01/2012.............................. B 855 1,900 Stone Container Corp., 9.75%, 02/01/2011............................... B 2,071 645 United States Steel LLC., 10.75%, 08/01/2008.............................. BB- 708 -------- 41,421 -------- CAPITAL GOODS -- 2.8% 1,699 AGCO Corp., 9.50%, 05/01/2008............................... BB 1,852 350 American Standard, Inc., 7.375%, 02/01/2008.............................. BB+ 386 985 Briggs & Stratton Corp., 8.875%, 03/15/2011.............................. BB+ 1,128 340 Cummins, Inc., 6.75%, 02/15/2027............................... BB+ 352 525 Cummins, Inc., 7.125%, 03/01/2028.............................. BB+ 488 254 Flowserve Finance B.V., Inc. (Euro), 12.25%, 08/15/2010.............................. B 334 350 Hasbro, Inc., 6.60%, 07/15/2028............................... BB 319 425 Jorgensen (Earle M.) Co., 9.75%, 06/01/2012............................... B- 461 200 Joy Global, Inc., 8.75%, Ser B 03/15/2012......................... B+ 221
The accompanying notes are an integral part of this financial statement. 69 THE HARTFORD HIGH YIELD FUND SCHEDULE OF INVESTMENTS -- (CONTINUED) OCTOBER 31, 2003 (000'S OMITTED) --------------------------------------------------------------------------------
STANDARD AND POOR'S PRINCIPAL RATING MARKET AMOUNT (UNAUDITED) VALUE(C) --------- ----------- -------- CORPORATE BONDS: NON-INVESTMENT GRADE -- (CONTINUED) CAPITAL GOODS -- (CONTINUED) $ 240 Rexnord Corp., 10.125%, 12/15/2012............................. B- $ 266 250 Sequa Corp., 8.875%, Ser B 04/01/2008........................ BB- 273 425 SPX Corp., 6.25%, 06/15/2011............................... BB+ 426 240 TD Funding Corp., 8.375%, 07/15/2011(g)........................... B- 255 675 Terex Corp., 10.375%, Ser B 04/01/2011....................... B 761 380 Universal Compression, Inc., 7.25%, 05/15/2010............................... B+ 395 400 Xerox Corp., 7.125%, 06/15/2010.............................. B+ 408 1,120 Xerox Corp., 7.625%, 06/15/2013.............................. B+ 1,142 570 Xerox Corp., 9.75% 01/15/2009................................ B+ 646 -------- 10,113 -------- CONSUMER CYCLICAL -- 10.7% 1,610 Ahold Finance USA, Inc., 8.25%, 07/15/2010............................... B+ 1,735 550 AutoNation, Inc., 9.00%, 08/01/2008............................... BB+ 627 155 B & G Foods, Inc., 9.625%, Ser D 08/01/2007........................ B- 159 900 Champion Home Builders Co., 11.25%, 04/15/2007.............................. B- 932 610 Collins & Aikman Floorcovering, Inc., 9.75%, Ser B 02/15/2010......................... B 656 1,160 D.R. Horton, Inc., 6.875%, 05/01/2013.............................. BB 1,221 1,320 Dana Corp., 6.50%, 03/15/2008............................... BB 1,307 1,100 Dana Corp., 7.00%, 03/01/2029............................... BB 976 600 Dana Credit Corp., 8.375%, 08/15/2007(g)........................... BB 623 1,120 Delhaize America, Inc., 8.125%, 04/15/2011.............................. BB+ 1,236 400 Delhaize America, Inc., 9.00%, 04/15/2031............................... BB+ 451 255 Dillard's, Inc., 7.13%, 08/01/2018............................... BB 237 440 Dillard's, Inc., 7.375%, 06/01/2006.............................. BB 451 2,145 Group 1 Automotive, Inc., 8.25%, 08/15/2013(g)............................ B+ 2,327 500 Ingles Markets, Inc., 8.875%, 12/01/2011.............................. B+ 481
STANDARD AND POOR'S PRINCIPAL RATING MARKET AMOUNT (UNAUDITED) VALUE(C) --------- ----------- -------- CONSUMER CYCLICAL -- (CONTINUED) $ 420 Integrated Electrical Services, Inc., 9.375%, Ser C 02/01/2009........................ B+ $ 441 220 Kaufman & Broad Home Corp., 7.75%, 10/15/2004............................... BB+ 231 1,050 KB Home, 9.50%, 02/15/2011............................... BB- 1,166 1,200 L-3 Communications Corp., 7.625%, 06/15/2012.............................. BB- 1,308 935 Millennium America, Inc., 7.00%, 11/15/2006............................... BB- 919 718 Millennium America, Inc., 7.625%, 11/15/2026.............................. BB- 614 825 Moore North America Finance, Inc., 7.875%, 01/15/2011(g)........................... BB- 891 594 Navistar International Corp., 9.375%, Ser B 06/01/2006........................ BB- 650 1,100 Penney (J.C.) Co., Inc., 8.125%, 04/01/2027.............................. BB+ 1,144 1,045 Penney (J.C.) Co., Inc., 8.25%, 08/15/2022............................... BB+ 1,076 2,355 Perry Ellis International, Inc., 8.875%, 09/15/2013(g)........................... B- 2,443 670 Phillips Van-Heusen Corp., 7.75%, 11/15/2023............................... BB 663 1,150 Saks, Inc., 7.50%, 12/01/2010............................... BB 1,254 2,000 Schuler Homes, Inc., 9.375%, 07/15/2009.............................. BB 2,243 910 Scotts Company, Inc., 6.625%, 11/15/2013(g)........................... B+ 921 3,300 Sonic Automotive, Inc., 8.625%, 08/15/2013(g)........................... B+ 3,490 660 Toll Corp., 8.00%, 05/01/2009............................... BB+ 693 600 Toll Corp., 8.25%, 12/01/2011............................... BB+ 666 890 TRW Automotive, Inc., 9.375%, 02/15/2013(g)........................... B+ 1,010 860 United Auto Group, Inc., 9.625%, 03/15/2012.............................. B 950 450 United Components, Inc., 9.375%, 06/15/2013(g)........................... B 461 475 Warnaco, Inc., 8.875%, 06/15/2013(g)........................... B 508 1,500 Yum! Brands, Inc., 7.70%, 07/01/2012............................... BB+ 1,691 -------- 38,852 -------- CONSUMER STAPLES -- 2.5% 623 Armkel LLC, 9.50%, 08/15/2009............................... B 688 520 Canandaigua Brands, Inc., 8.625%, 08/01/2006.............................. BB 573
The accompanying notes are an integral part of this financial statement. 70 --------------------------------------------------------------------------------
STANDARD AND POOR'S PRINCIPAL RATING MARKET AMOUNT (UNAUDITED) VALUE(C) --------- ----------- -------- CORPORATE BONDS: NON-INVESTMENT GRADE -- (CONTINUED) CONSUMER STAPLES -- (CONTINUED) $ 460 Del Monte Corp., 8.625%, 12/15/2012(g)........................... B $ 508 890 Dole Foods Co., 7.25%, 06/15/2010............................... BB- 908 350 Dole Foods Co., 8.625%, 05/01/2009.............................. BB- 378 1,350 Johnsondiversey, Inc., 9.625%, Ser B 05/15/2012........................ B 1,492 215 Remy Cointreau S.A., Inc.(Euro), 6.50%, 07/01/2010(g)............................ BB 255 160 Smithfield Foods, Inc., 7.75%, 05/15/2013............................... BB 173 730 Smithfield Foods, Inc., 8.00%, Ser B 10/15/2009......................... Ba2* 803 1,725 Tembec Industries, Inc., 7.75%, 03/15/2012............................... BB 1,600 950 Tembec Industries, Inc., 8.50%, 02/01/2011............................... BB 917 750 Tembec Industries, Inc., 8.625%, 06/30/2009.............................. BB 731 -------- 9,026 -------- ENERGY -- 5.5% 555 Chesapeake Energy Corp., 7.50%, 09/15/2013(g)............................ BB- 597 425 Clark R&M, Inc., 8.625%, 08/15/2008.............................. Ba3* 440 1,630 CONSOL Energy, Inc., 7.875%, 03/01/2012.............................. BB+ 1,677 1,100 Forest Oil Corp., 8.00%, 06/15/2008............................... BB 1,177 870 Gulfterra Energy Partners, Inc., 6.25%, 06/01/2010(g)............................ BB 874 195 Houston Exploration Co., 7.00%, 06/15/2013(g)............................ B+ 197 175 Key Energy Services, Inc., 6.375%, 05/01/2013.............................. BB 176 820 Key Energy Services, Inc., 8.375%, Ser C 03/01/2008........................ BB 884 845 Magnum Hunter Resources, Inc., 9.60%, 03/15/2012............................... B+ 942 1,060 Newpark Resources, Inc., 8.625%, Ser B 12/15/2007........................ B+ 1,094 625 Nuevo Energy Co., 9.375%, Ser B 10/01/2010........................ B 681 40 Nuevo Energy Co., 9.50%, Ser B 06/01/2008......................... B 42 1,475 Pioneer Natural Resources Co., 6.50%, 01/15/2008............................... BB+ 1,584
STANDARD AND POOR'S PRINCIPAL RATING MARKET AMOUNT (UNAUDITED) VALUE(C) --------- ----------- -------- ENERGY -- (CONTINUED) $ 950 Pioneer Natural Resources Co., 7.20%, 01/15/2028............................... BB+ $ 990 700 Plains E&P Company, Inc., 8.75%, 07/01/2012............................... B 763 1,018 Port Arthur Finance Corp., 12.50%, 01/15/2009.............................. BB 1,196 180 Premcor Refining Group, Inc., 9.25%, 02/01/2010............................... BB- 201 400 Star Gas Partners, Inc., 10.25%, 02/15/2013.............................. B 430 1,640 Tesoro Petroleum Corp., 8.00%, 04/15/2008............................... BB 1,738 240 Tom Brown, Inc., 7.25%, 09/15/2013............................... BB- 251 285 Vintage Petroleum, Inc., 8.25%, 05/1/2012................................ BB- 312 150 Westport Resources Corp., 8.25%, 11/01/2011(g)............................ B+ 165 2,035 Williams Companies, Inc., 8.625%, 06/01/2010.............................. B+ 2,228 1,500 Williams Companies, Inc., 8.75%, 03/15/2032............................... B+ 1,568 -------- 20,207 -------- FINANCE -- 4.8% 1,300 Brazil (Fed Republic of), 8.875%, Ser B 04/15/2024........................ B+ 1,102 900 Brazil (Fed Republic of), 12.75%, 01/15/2020.............................. B+ 1,013 1,125 BSN Glasspack (Euro), 9.25%, 08/01/2009(g)............................ B- 1,367 1,650 Burns Philip Capital Property Ltd., 9.75%, 07/15/2012(g)............................ B- 1,683 1,325 Columbia (Republic of), 10.00%, 01/23/2012.............................. BB 1,391 435 Forest City Enterprises, Inc., 7.625%, 06/1/2015............................... BB- 452 35 Host Marriott LP, 7.125%, 11/01/2013(g)........................... B+ 35 400 Interpool, Inc., 7.20%, 08/01/2007............................... BB- 372 75 Interpool, Inc., 7.35%, 08/01/2007............................... BB- 70 2,000 IPC Acquisition Corp., 11.50%, 12/15/2009.............................. B- 2,093 1,490 LNR Property Corp., 7.625%, 07/15/2013(g)........................... B+ 1,535 75 RFS Partnership LP, 9.75%, 03/01/2012............................... B- 80 1,090 Senior Housing Properties Trust, 7.875%, 04/15/2015.............................. BB+ 1,147 1,000 United Rentals North America, Inc., 7.75%, 11/15/2013(g)............................ B+ 997
The accompanying notes are an integral part of this financial statement. 71 THE HARTFORD HIGH YIELD FUND SCHEDULE OF INVESTMENTS -- (CONTINUED) OCTOBER 31, 2003 (000'S OMITTED) --------------------------------------------------------------------------------
STANDARD AND POOR'S PRINCIPAL RATING MARKET AMOUNT (UNAUDITED) VALUE(C) --------- ----------- -------- CORPORATE BONDS: NON-INVESTMENT GRADE -- (CONTINUED) FINANCE -- (CONTINUED) $ 1,650 United Rentals North America, Inc., 9.25%, 01/15/2009............................... B+ $ 1,737 485 United Rentals North America, Inc., 10.75%, Ser B 04/15/2008........................ BB- 544 1,100 Venezuela (Republic of), 9.25%, 09/15/2027............................... B- 885 605 Ventas Realty L.P., Inc., 8.75%, 05/01/2009............................... BB- 665 225 Western Financial Bank, 9.625%, 05/15/2012........ BB- 246 -------- 17,414 -------- HEALTH CARE -- 2.2% 270 Hanger Orthopedic Group, Inc., 10.375%, 02/15/2009............................. B- 305 470 Medex, Inc., 8.875%, 05/15/2013(g)........................... B- 505 320 Omnicare, Inc., 6.125%, 06/01/2013.............................. BB+ 317 1,500 Province Healthcare Co., 7.50%, 06/01/2013............................... B- 1,500 420 Select Medical Corp., 7.50%, 08/01/2013(g)............................ B 439 1,100 Select Medical Corp., 9.50%, 06/15/2009............................... B 1,204 475 Tenet Healthcare Corp., 6.375%, 12/01/2011.............................. BB- 441 1,600 Tenet Healthcare Corp., 6.50%, 06/01/2012............................... BB- 1,484 1,175 Tenet Healthcare Corp., 7.375%, 02/01/2013.............................. BB- 1,140 580 United Surgical Partners International, Inc., 10.00%, 12/15/2011.............................. B 641 -------- 7,976 -------- SERVICES -- 15.9% 750 AdvancePCS, 8.50%, 04/01/2008............................... BB 821 345 Allied Waste North America, Inc., 7.625%, Ser B 01/01/2006........................ BB- 365 400 Allied Waste North America, Inc., 7.875%, 04/15/2013.............................. BB- 429 660 Allied Waste North America, Inc., 7.875%, Ser B 01/01/2009........................ BB- 690 1,900 Allied Waste North America, Inc., 8.875%, Ser B 04/01/2008........................ BB- 2,100
STANDARD AND POOR'S PRINCIPAL RATING MARKET AMOUNT (UNAUDITED) VALUE(C) --------- ----------- -------- SERVICES -- (CONTINUED) $ 290 Allied Waste North America, Inc., 9.25%, Ser B 09/01/2012......................... BB- $ 326 1,365 Aztar Corp., 8.875%, 05/15/2007.............................. B+ 1,426 485 Boyd Gaming Corp., 9.25%, 08/01/2009............................... BB- 545 460 Browning-Ferris Industries, Inc., 6.375%, 01/15/2008.............................. BB- 451 1,305 Browning-Ferris Industries, Inc., 7.40%, 09/15/2035............................... BB- 1,214 500 Browning-Ferris Industries, Inc., 7.875%, 03/15/2005.............................. BB- 521 1,355 Canwest Media, Inc., 7.625%, 04/15/2013.............................. B- 1,480 225 CBD Media/CBD Finance, Inc., 8.625%, 06/01/2011(g)........................... B- 241 650 CF Cable TV, Inc., 9.125%, 07/15/2007.............................. BB- 687 500 CSC Holdings, Inc., 7.625% Ser B 04/01/2011......................... BB- 510 650 CSC Holdings, Inc., 8.125%, Ser B 07/15/2009........................ BB- 676 1,500 CSC Holdings, Inc., 8.125%, Ser B 08/15/2009........................ BB- 1,560 1,070 Dex Media West LLC, Inc., 9.875%, 08/15/2013(g)........................... B 1,217 1,750 Echostar DBS Corp., 5.75%, 10/01/2008(g)............................ BB- 1,743 3,110 Felcor Lodging L.P., 9.50%, 09/15/2008............................... B 3,343 800 Fresenius Finance BV (Euro), 7.75%, 04/30/2009(g)............................ BB+ 990 2,325 HMH Properties, Inc., 7.875%, Ser B 08/01/2008........................ B+ 2,401 340 HMH Properties, Inc., 8.45%, Ser C 12/01/2008......................... B+ 354 1,700 Hollinger International Publishing, Inc., 9.00%, 12/15/2010............................... B 1,802 300 Host Marriott LP, 9.25%, 10/01/2007............................... B+ 331 790 Intrawest Corp., 7.50%, 10/15/2013(g)............................ B+ 792 555 Iron Mountain, Inc., 7.75%, 01/15/2015............................... B 593 3,085 John Q. Hammons Hotels, Inc., 8.875%, Ser B 05/15/2012........................ B 3,363 580 Lamar Media Corp., 7.25%, 01/01/2013............................... B 610 600 Mandalay Resort Group, 7.625%, 07/15/2013.............................. BB- 630 1,180 Mandalay Resort Group, 9.50%, 08/01/2008............................... BB+ 1,363
The accompanying notes are an integral part of this financial statement. 72 --------------------------------------------------------------------------------
STANDARD AND POOR'S PRINCIPAL RATING MARKET AMOUNT (UNAUDITED) VALUE(C) --------- ----------- -------- CORPORATE BONDS: NON-INVESTMENT GRADE -- (CONTINUED) SERVICES -- (CONTINUED) $ 800 MGM Mirage, Inc., 6.875%, 02/06/2008.............................. BB+ $ 843 950 MGM Mirage, Inc., 8.375%, 02/01/2011.............................. BB- 1,059 1,660 Mirage Resorts, Inc., 7.25%, 10/15/2006............................... BB+ 1,772 745 Mohegan Tribal Gaming Authority, 8.125%, 01/01/2006.............................. BB 809 1,000 Park Place Entertainment Corp., 7.50%, 09/01/2009............................... BB+ 1,090 760 Park Place Entertainment Corp., 8.125%, 05/15/2011.............................. BB- 830 450 Park Place Entertainment Corp., 9.375%, 02/15/2007.............................. BB- 506 175 Primedia, Inc., 7.625%, 04/01/2008.............................. B 174 700 Primedia, Inc., 8.00%, 05/15/2013(g)............................ B 712 1,545 Quebecor Media, Inc., 11.125%, 07/15/2011............................. B 1,777 420 R.H. Donnelley Financial Corp., 8.875%, 12/15/2010(g)........................... B+ 471 2,420 Service Corp. International, 6.50%, 03/15/2008............................... BB- 2,426 1,270 Service Corp. International, 7.70%, 04/15/2009............................... BB- 1,318 300 Service Corp. International, 7.875%, 02/01/2013.............................. BB- 293 900 Six Flags, Inc., 8.875%, 02/01/2010.............................. B- 855 200 Six Flags, Inc., 9.50%, 02/01/2009............................... B- 196 2,300 Starwood Hotels & Resorts Worldwide, Inc., 7.375%, 05/01/2007.............................. BB+ 2,478 650 Starwood Hotels & Resorts Worldwide, Inc., 7.875%, 05/01/2012.............................. BB+ 718 1,105 Stewart Enterprises, Inc., 10.75%, 07/01/2008.............................. B+ 1,246 500 Sun Media Corp., 7.625%, 02/15/2013.............................. B 535 900 Unisys Corp., 7.25%, 01/15/2005............................... BB+ 941 450 Unisys Corp., 7.875%, 04/01/2008.............................. BB+ 469 460 Venetian Casino Resort LLC, 11.00%, 06/15/2010.............................. B- 531 1,900 Vivendi Universal S.A., 6.25%, 07/15/2008(g)............................ BB 1,986
STANDARD AND POOR'S PRINCIPAL RATING MARKET AMOUNT (UNAUDITED) VALUE(C) --------- ----------- -------- SERVICES -- (CONTINUED) $ 490 Worldspan LP/Worldspan Financial Corp., 9.625%, 06/15/2011(g)........................... B- $ 478 -------- 58,087 -------- TECHNOLOGY -- 19.5% 730 ACC Escrow Corp., 10.00%, 08/01/2011(g)........................... B- 796 420 Amkor Technologies, Inc., 7.75%, 05/15/2013(g)............................ B 447 1,015 Avaya, Inc., 11.125%, 04/01/2009............................. B+ 1,198 795 Bio-Rad Laboratories, Inc., 7.50%, 08/15/2013(g)............................ BB- 837 750 British Sky Broadcasting Group plc, 8.20%, 07/15/2009............................... BB+ 874 995 Charter Communications Holdings, 9.625%, 11/15/2009.............................. CCC- 801 430 Charter Communications Holdings, 10.00%, 04/01/2009.............................. CCC- 357 1,755 Charter Communications Holdings, 10.00%, 05/15/2011.............................. CCC- 1,435 2,055 Charter Communications Holdings, 10.75%, 10/01/2009.............................. CCC- 1,736 1,300 Cincinnati Bell, Inc., 8.375%, 01/15/2014(g)........................... B- 1,300 1,750 Corning, Inc., 8.30%, 04/04/2025............................... Ba2* 1,851 675 DirecTV Holdings LLC, 8.375%, 03/15/2013.............................. B 759 785 DRS Technologies, Inc., 6.875%, 11/01/2013(g)........................... B 789 1,364 EchoStar DBS Corp., 9.125%, 01/15/2009.............................. BB- 1,534 1,525 EchoStar DBS Corp., 9.375%, 02/01/2009.............................. BB- 1,613 1,540 Fimep S.A., 10.50%, 02/15/2013.............................. B+ 1,794 720 Fisher Scientific International, Inc., 8.125%, 05/01/2012.............................. B+ 774 660 Fisher Scientific International, Inc., 8.0%, 09/01/2013(g)............................. B+ 709 6,475 Global Crossing Holdings Ltd., 9.50%, 11/15/2009(a)(e)......................... NR 591 3,510 Global Crossing Holdings Ltd., 9.625%, 05/15/2008(a)(e)........................ NR 320 520 KPNQwest N.V. (Euro), 7.125%, 06/01/2009(a)........................... NR 3
The accompanying notes are an integral part of this financial statement. 73 THE HARTFORD HIGH YIELD FUND SCHEDULE OF INVESTMENTS -- (CONTINUED) OCTOBER 31, 2003 (000'S OMITTED) --------------------------------------------------------------------------------
STANDARD AND POOR'S PRINCIPAL RATING MARKET AMOUNT (UNAUDITED) VALUE(C) --------- ----------- -------- CORPORATE BONDS: NON-INVESTMENT GRADE -- (CONTINUED) TECHNOLOGY -- (CONTINUED) $ 3,385 KPNQwest N.V., 8.125%, 06/01/2009(a)........................... NR @@ 1,420 L-3 Communications Corp., 6.125%, 07/15/2013.............................. BB- $ 1,406 3,330 Level 3 Communications, Inc., 11.00%, 03/15/2008.............................. CC 3,230 825 Level 3 Communications, Inc. (Euro), 11.25%, 03/15/2010.............................. CC 901 250 Level 3 Communications, Inc., 14.84%, 03/15/2010 (Zero coupon through 03/15/2005, thereafter 12.875%)(f).............. CC 204 700 Level 3 Financing, Inc., 10.75%, 10/15/2011(g)........................... CCC- 728 1,400 Lucent Technologies, Inc., 5.50%, 11/15/2008............................... B- 1,302 1,549 Lucent Technologies, Inc., 6.45%, 03/15/2029............................... B- 1,197 392 Marconi Corp. plc, 8.00%, 04/30/2008............................... NR 384 266 Marconi Corp. plc, 10.00%, 10/31/2008.............................. NR 276 540 Mediacom LLC, 9.50%, 01/15/2013............................... B+ 513 3,465 Metromedia Fiber Network, Inc., 10.00%, Ser B 11/15/2008(a)(e).................. NR 216 300 Metromedia Fiber Network, Inc. (Euro), 10.00%, 12/15/2009(a)(e)........................ NR 22 770 Metromedia Fiber Network, Inc., 10.00%, 12/15/2009(a)(e)........................ NR 48 6,060 Nextel Communications, Inc., 7.375%, 08/01/2015.............................. B+ 6,302 475 Nextel Communications, Inc., 9.95%, 02/15/2008............................... B+ 499 5,150 Nortel Networks Corp., 4.25%, Conv. 09/01/2008......................... B 4,854 455 Nortel Networks Corp., 6.875%, 09/01/2023.............................. B 431 430 PanAmSat Corp., 6.375%, 01/15/2008.............................. BB- 440 2,215 PanAmSat Corp., 6.875%, 01/15/2028.............................. BB- 2,171 2,275 PanAmSat Corp., 8.50%, 02/01/2012............................... B- 2,451 3,250 PerkinElmer, Inc., 8.875%, 01/15/2013.............................. BB- 3,559 1,750 Qwest Capital Funding, Inc., 7.25%, 02/15/2011............................... CCC+ 1,627
STANDARD AND POOR'S PRINCIPAL RATING MARKET AMOUNT (UNAUDITED) VALUE(C) --------- ----------- -------- TECHNOLOGY -- (CONTINUED) $ 1,200 Qwest Capital Funding, Inc., 7.625%, 08/03/2021.............................. CCC+ $ 1,020 4,095 Qwest Corp., 6.875%, 09/15/2033.............................. B- 3,655 1,390 Qwest Corp., 7.25%, 10/15/2035............................... B- 1,286 745 Rayovac Corp., 8.50%, 10/01/2013(g)............................ B- 775 5,195 RCN Corp., 9.80%, Ser B 02/15/2008......................... CCC- 2,286 1,375 RCN Corp., 11.125%, 10/15/2007............................. CCC- 626 2,200 Rogers Cantel, Inc., 9.375%, 06/01/2008.............................. BB+ 2,302 200 Rogers Cantel, Inc., 9.75%, 06/01/2016............................... BB+ 235 300 Rogers Wireless Communications, Inc., 9.625%, 05/01/2011.............................. BB+ 348 1,200 Shaw Communications, Inc., 8.25%, 04/11/2010............................... BB+ 1,326 625 Time Warner Telecom LLC, Inc., 9.75%, 07/15/2008............................... CCC+ 641 635 US West Communications, 7.20%, 11/01/2004............................... B- 651 1,575 WorldCom, Inc. -- WorldCom Group, 7.50%, 05/15/2011(a)............................ NR 579 5,070 WorldCom, Inc. -- WorldCom Group, 8.25%, 05/15/2031(a)............................ NR 1,863 -------- 70,872 -------- TRANSPORTATION -- 0.9% 825 CP Ships Ltd., 10.375%, 07/15/2012............................. BB+ 949 100 Delta Air Lines, Inc., 7.90%, 12/15/2009............................... B 81 1,580 Delta Air Lines, Inc., 8.30%, 12/15/2029............................... B 1,047 640 Delta Air Lines, Inc., 9.00%, 05/15/2016............................... B 456 300 Teekay Shipping Corp., 8.32%, 02/01/2008............................... BB+ 324 340 Wabtec Corp., 6.875%, 07/31/2013(g)........................... BB 349 -------- 3,206 -------- UTILITIES -- 9.8% 3,210 AES Corp., 8.75%, 05/15/2013(g)............................ B+ 3,427 1,310 Calpine Canada Energy Financial, 8.50%, 05/01/2008............................... CCC+ 963
The accompanying notes are an integral part of this financial statement. 74 --------------------------------------------------------------------------------
STANDARD AND POOR'S PRINCIPAL RATING MARKET AMOUNT (UNAUDITED) VALUE(C) --------- ----------- -------- CORPORATE BONDS: NON-INVESTMENT GRADE -- (CONTINUED) UTILITIES -- (CONTINUED) $ 2,030 Calpine Corp., 8.50%, 02/15/2011............................... CCC+ $ 1,451 150 Calpine Corp., 8.625%, 08/15/2010.............................. CCC+ 107 2,420 Calpine Corp., 8.75%, 07/15/2013(g)............................ B 2,214 350 CMS Energy Corp., 7.50%, 01/15/2009............................... B+ 356 910 CMS Energy Corp., 7.75%, 08/01/2010(g)............................ B+ 926 80 CMS Energy Corp., 8.50%, 04/15/2011............................... B+ 84 975 CMS Energy Corp., 8.90%, 07/15/2008............................... B+ 1,029 1,985 Dynegy Holdings, Inc., 10.125%, 07/15/2013(g).......................... B- 2,154 1,700 El Paso Corp., 7.875% 06/15/2012............................... B 1,449 500 El Paso Natural Gas Co., 6.75%, 11/15/2003............................... B+ 500 5,845 El Paso Natural Gas Co., 7.625%, Ser A 08/01/2010........................ B+ 5,787 865 Illinois Power Co., 7.50%, 06/15/2009............................... B 939 1,370 Illinois Power Co., 7.50%, 07/15/2025............................... B 1,336 785 Illinois Power Co., 11.50%, 12/15/2010.............................. B 938 600 Kansas Gas & Electric Co., 6.50%, 08/01/2005............................... BB+ 632 425 Kansas Gas & Electric Co., 7.60%, 12/15/2003............................... BB+ 423 665 Kansas Gas & Electric Co., 8.29%, 03/29/2016............................... BB- 696 400 Nevada Power Co., 8.50%, Ser Z 01/01/2023......................... BB 401 870 PG&E Corp., 6.875%, 07/15/2008(g)........................... NR 922 730 Sierra Pacific Power Co., 8.00%, Ser A 06/01/2008......................... BB 766 575 Sierra Pacific Resources, 6.20%, 04/15/2004............................... BB 578 625 Southern Star Central Corp., 8.50%, 08/01/2010(g)............................ B+ 662 855 TECO Energy, Inc., 7.20%, 05/01/2011............................... BB+ 861 590 TECO Energy, Inc., 7.50%, 06/15/2010............................... BB+ 606 320 TECO Energy, Inc., 10.50%, 12/01/2007.............................. BB+ 361 1,300 Tennessee Gas Pipeline Co., 7.50%, 04/01/2017............................... B+ 1,293
STANDARD AND POOR'S PRINCIPAL RATING MARKET AMOUNT (UNAUDITED) VALUE(C) --------- ----------- -------- UTILITIES -- (CONTINUED) $ 2,830 Transcontinental Gas Pipeline Corp., 6.125%, 01/15/2005.............................. B+ $ 2,880 800 Transcontinental Gas Pipeline Corp., 8.875% 07/15/2012............................... B+ 936 -------- 35,677 -------- Total corporate bonds: non-investment grade (cost $306,693)................................. $312,851 ======== SHARES --------- COMMON STOCK -- 0.4% BASIC MATERIALS -- 0.0% 1 Solutia (Warrants)(a)(e)....................................... $ 19 -------- CONSUMER CYCLICAL -- 0.0% 1 Hosiery Corp. of America, Inc. Class A(a)(e)................................................ @@ -------- SERVICES -- 0.0% 4 Splitrock Service (Warrants)(a)(e)............................. 38 -------- TECHNOLOGY -- 0.4% 54 Marconi Corp. plc ADR(a)....................................... 995 1 Minorplanet Systems USA, Inc. (Warrants)(a)(e)................. @@ 13 Powertel, Inc. (Warrants)(a)(e)................................ 308 11 Telus Corp. (Warrants)(a)(e)................................... 33 -------- 1,336 -------- Total common stock (cost $781).................................................. $ 1,393 ======== PREFERRED STOCKS -- 0.3% CAPITAL GOODS -- 0.0% 3 Xerox Corp., Conv., 7.50%(g)..................................................... $ 181 -------- SERVICES -- 0.3% 8 CSC Holdings, Inc., 11.125%...................................................... 786 -------- TECHNOLOGY -- 0.0% 20 Adelphia Communications Corp., 7.50%, Conv. Ser F(a)(e)..................................... 40 15 McLeod USA, Inc. Conv. Pfd. 2.50% Ser A.................................................. 91 -------- 131 -------- Total preferred stocks (cost $1,486)........................... $ 1,098 ======== Total long-term investments (cost $336,371).................... $344,777 ========
The accompanying notes are an integral part of this financial statement. 75 THE HARTFORD HIGH YIELD FUND SCHEDULE OF INVESTMENTS -- (CONTINUED) OCTOBER 31, 2003 (000'S OMITTED) --------------------------------------------------------------------------------
SHARES --------- SHORT-TERM INVESTMENTS -- 14.5% SECURITIES PURCHASED WITH PROCEEDS FROM SECURITIES LENDING -- 12.1% 44,016 Navigator Prime Portfolio...................................... $ 44,016 -------- FINANCE -- 2.4% $ 2,068 Banc One Joint Repurchase Agreement, 0.97%, 11/03/2003 (Note 2f).................................. $ 2,068 -------- 3,265 BNP Paribas Joint Repurchase Agreement, 0.99%, 11/03/2003 (Note 2f).................................. 3,265 -------- 3,265 UBS Warburg Joint Repurchase Agreement, 0.98%, 11/03/2003 (Note 2f).................................. 3,265 -------- 8,598 -------- Total short-term investments (cost $52,614).................... $ 52,614 ======== Total investments in securities (cost. $388,985)(b) $397,391 ========
(a) Presently non-income producing. For long-term debt securities, items identified are in default as to payment of interest and/or principal. (b) At October 31, 2003, the cost of securities for federal income tax purposes is $388,985 and the aggregate gross unrealized appreciation and depreciation based on that cost was: Unrealized appreciation........................ $ 23,370 Unrealized depreciation........................ (14,964) -------- Net unrealized appreciation.................... $ 8,406 ========
(c) See Note 2b of accompanying Notes to Financial Statements regarding valuation of securities. (d) Note: Percentage of investments as shown is the ratio of the total market value to total net assets. Market value of investments in foreign securities represents 14.35% of total net asset as of October 31, 2003. (e) Securities issued within the terms of a private placement memorandum, exempt from registration under Section 144A of the Securities Act of 1933, as amended, and may be sold only to dealers in that program or to other "accredited investors". These investments have been identified by portfolio management as illiquid securities:
PERIOD ACQUIRED SHARES/PAR SECURITY COST BASIS -------- ---------- -------- ---------- 2002 20 Adelphia Communications Corp., 7.50%, Conv. Pfd $ 488 1999 3,510 Global Crossing Holdings, Ltd due 2008 1,258 1999 6,475 Global Crossing Holdings, Ltd due 2009 3,575 1994 1 Hosiery Corp. of America, Inc. Class A - 144A 21 2001 300 Metromedia Fiber Network, Inc. due 2009 267 1998 3,465 Metromedia Fiber Network, Inc. due 2008 3,145 2001 770 Metromedia Fiber Network, Inc. due 2009 417 1997 1 Minorplanet Systems USA (Warrants) - 144A 13 1997 13 Powertel, Inc. (Warrants) - 144A 94
PERIOD ACQUIRED SHARES/PAR SECURITY COST BASIS -------- ---------- -------- ---------- 1998 4 Splitrock Serivice (Warrants) - 144A 46 1996 11 Telus Corp. (Warrants) - 144A 77 2003 1 Solutia (Warrants) @@ 2003 @@ VoiceStream Wireless Corp. due 2009 @@
The aggregate value of these securities at October 31, 2003, was $1,636, which represents 0.45% of total net assets. (f) The interest rate disclosed for these securities represents the effective yield on the date of acquisition. (g) Securities sold within the terms of a private placement memorandum, exempt from registration under Section 144A of the Securities Act of 1933, as amended, and may be sold only to dealers in that program or to other "accredited investors". Pursuant to guidelines adopted by the Board of Directors, these issues are determined to be liquid. The aggregate value of these securities at October 31, 2003, was $58,858, which represents 16.19% of total net assets. * Moody's Rating. STATEMENT OF ASSETS AND LIABILITIES: ASSETS Investments in securities, at value; (cost $388,985) @ ...................................... $397,391 Cash................................................ 7 Foreign currency on deposit with custodian (cost $6,385)........................................... 6,533 Receivables: Investment securities sold........................ 1,377 Fund shares sold.................................. 4,964 Dividends and interest............................ 7,439 Other assets........................................ 75 -------- Total assets........................................ 417,786 -------- LIABILITIES Payables: Payable upon return of securities loaned (Note 2d)............................................. 44,016 Investment securities purchased................... 9,498 Fund shares redeemed.............................. 286 Payable for investment advisory and management fees (Note 3)................................... 225 Payable for distribution fees (Note 3)............ 29 Accrued Expenses.................................... 93 -------- Total liabilities................................... 54,147 -------- Net assets.......................................... $363,639 ======== @ Market value of securities on loan $42,041.
The accompanying notes are an integral part of this financial statement. 76 -------------------------------------------------------------------------------- SUMMARY OF NET ASSETS: Capital stock and paid-in-capital, par value $0.001 per share; 300,000 shares authorized; 45,812 shares outstanding................................ $442,236 Accumulated undistributed net investment loss....... (521) Accumulated net realized loss on investments and foreign currency transactions..................... (86,634) Unrealized appreciation of investments in securities and the translations of assets and liabilities denominated in foreign currency................... 8,558 -------- Net assets.......................................... $363,639 ======== @ Market value of securities on loan $42,041.
Class A Net asset value per share ($213,377 / 26,859 shares outstanding)....................................... $7.94 ----- Maximum offering price per share($7.94 / 95.5%)...... $8.31 ===== Class B Net asset value per share ($72,293 / 9,118 shares outstanding)....................................... $7.93 ===== Class C Net asset value per share ($77,968 / 9,835 shares outstanding)....................................... $7.93 ----- (Maximum offering price per share ($7.93 / 99.0%).... $8.01 ===== Class Y Net asset value per share ($1 / @@ shares outstanding)....................................... $7.94 ===== @@ Due to the presentation of the financial statements in thousands, the number or shares and/or dollars round to zero.
The accompanying notes are an integral part of this financial statement. 77 THE HARTFORD INCOME FUND SCHEDULE OF INVESTMENTS OCTOBER 31, 2003 (000'S OMITTED) --------------------------------------------------------------------------------
STANDARD AND POOR'S PRINCIPAL RATING MARKET AMOUNT (UNAUDITED) VALUE(B) --------- ----------- -------- MUNICIPAL BONDS -- 0.5% GENERAL OBLIGATIONS -- 0.5% $150 Illinois (State of), 5.10%, General Obligation Taxable Pension 06/01/2033...................... AA $ 136 ------- Total municipal bonds (cost $149)..................................... $ 136 ======= ASSET BACKED AND COMMERCIAL MORTGAGE SECURITIES -- 8.8% FINANCE -- 8.8% 35 AmeriCredit Automobile Receivables Trust, 8.40%, Ser 2002-1 Class E 08/06/2009(d)................................... BB $ 33 93 AQ Finance CEB Trust, 6.12%, Ser 2003-CE1A 08/25/2033(d)(f)................................ BBB 91 75 Citibank Credit Card Issuance Trust, 5.00%, Ser 2003-C4 Class C4 06/10/2015...................................... BBB 70 100 DLJ Mortgage Acceptance Corp., 7.50%, Ser 1995-CF2 Class B1 12/17/2027(d)................................... AAA 100 200 First Union-Lehman Brothers-Bank of America, 6.56%, Ser 1998-C2 Class A2 11/18/2035...................................... AAA 223 100 Ford Credit Auto Owner Trust, 4.29%, Ser 2003-A Class C 11/15/2007...................................... BBB 100 200 General Electric Commercial Mortgage Corp., 5.00%, Ser 2002-3A Class A2, 12/10/2037...................................... AAA 203 167 GMAC Commercial Mortgage Securities, Inc., 3.34%, Ser 2003-C1 Class A1 05/10/2036...................................... AAA 161 43 Green Tree Financial Corp., 7.30%, Ser 1995-9 Class A6 01/15/2026...................................... AAA 46 28 Green Tree Financial Corp., 7.35%, Ser 1996-3 Class A5 05/15/2027...................................... AAA 30 186 J.P. Morgan Chase Commercial Mortgage Security Corp., 4.33% Ser 2002-C2 Class A1 12/12/2034...................................... AAA 188 193 J.P. Morgan Chase Commercial Mortgage Security Corp., 4.37% Ser 2002-CIB5 Class A1 10/12/2037...................................... Aaa* 196
STANDARD AND POOR'S PRINCIPAL RATING MARKET AMOUNT (UNAUDITED) VALUE(B) --------- ----------- -------- FINANCE -- (CONTINUED) $189 Morgan Stanley Dean Witter Capital I, 5.38%, Ser 2002-TOP7 Class A1 01/15/2039...................................... Aaa* $ 200 100 Navistar Financial Corp. Owner Trust, 3.08%, Ser 2003-A Class B 11/15/2009...................................... A 100 100 Residential Asset Mortgage Products, Inc., 6.14%, Ser 2002-RS3 Class AI4 06/25/2032...................................... AAA 103 100 Residential Asset Mortgage Products, Inc., 6.59%, Ser 2002-RZ2 Class A5 06/25/2032...................................... AAA 103 31 Salomon Smith Barney Auto Loan Trust, 8.00%, Ser 2002-1 Class D 02/15/2009(d)................................... Ba2* 31 19 Soundview Home Equity Loan Trust, Inc., 8.64%, Ser 2000-1 Class M1 05/25/2030...................................... AA 21 100 Wachovia Bank Commercial Mortgage Trust, 4.87%, Ser 2003-C3 Class A2 02/15/2035...................................... AAA 100 100 WFS Financial Owner Trust, 3.05%, Ser 2003-2 Class C 12/20/2010...................................... A 101 41 Whole Auto Loan Trust, 6.00%, Ser 2002-1 Class D 04/15/2009 (d).................................. BB 41 ------- 2,241 ------- Total asset backed and commercial mortgage securities (cost $2,256)................................... $ 2,241 ======= CORPORATE BONDS: INVESTMENT GRADE -- 16.6% BASIC MATERIALS -- 1.3% 75 Methanex Corp., 7.75%, 08/15/2005............................... BBB- $ 79 100 Noranda, Inc., 8.375%, 02/15/2011.............................. BBB- 117 100 Phelps Dodge Corp., 9.50%, 06/01/2031............................... BBB- 129 ------- 325 -------
The accompanying notes are an integral part of this financial statement. 78 --------------------------------------------------------------------------------
STANDARD AND POOR'S PRINCIPAL RATING MARKET AMOUNT (UNAUDITED) VALUE(B) --------- ----------- -------- CORPORATE BONDS: INVESTMENT GRADE -- (CONTINUED) CAPITAL GOODS -- 0.8% $100 Bombardier, Inc., 6.75%, 05/01/2012(d)............................ BBB- $ 106 100 Tyco International Group S.A., 6.375%, 02/15/2006.............................. BBB- 106 ------- 212 ------- CONSUMER CYCLICAL -- 0.7% 50 General Motors Corp., 7.125%, 07/15/2013.............................. BBB 52 100 PHH Corp., 6.00%, 03/01/2008............................... BBB+ 107 25 Toys 'R' Us, Inc., 7.875%, 04/15/2013.............................. BBB- 28 ------- 187 ------- ENERGY -- 0.7% 70 Pemex Project Funding Master Trust, 7.375%, 12/15/2014.............................. BBB- 74 100 Valero Energy Corp., 7.50%, 04/15/2032............................... BBB 109 ------- 183 ------- FINANCE -- 4.7% 150 Capital One Financial Corp., 7.125%, 08/01/2008.............................. BB+ 162 100 Ford Motor Credit Co., 6.50%, 01/25/2007............................... BBB 103 100 Household Finance Corp., 7.00%, 05/15/2012............................... A 113 842 Queensland Treasury Corp. (Australian Dollar), 6.50%, 06/14/2005............................... AAA 606 200 UFJ Finance Aruba AEC, 6.75%, 07/15/2013............................... BBB- 209 ------- 1,193 ------- HEALTH CARE -- 1.4% 15 Bausch & Lomb, Inc., 6.95%, 11/15/2007............................... BBB- 16 53 Bausch & Lomb, Inc., 7.125%, 08/01/2028.............................. BBB- 52 100 HCA, Inc., 6.95%, 05/01/2012............................... BBB- 104 75 Manor Care, Inc., 6.25%, 05/01/2013............................... BBB 77 100 Universal Health Services, Inc., 6.75%, 11/15/2011............................... BBB 106 ------- 355 -------
STANDARD AND POOR'S PRINCIPAL RATING MARKET AMOUNT (UNAUDITED) VALUE(B) --------- ----------- -------- SERVICES -- 2.0% $ 10 American Greetings Corp., 6.10%, 08/01/2028............................... BBB- $ 10 100 Comcast Cable Communications, Inc., 6.75%, 01/30/2011............................... BBB 111 150 Hyatt Equities LLC, 6.875%, 06/15/2007(d)........................... BBB 159 100 Interactive Corp., 7.00%, 01/15/2013............................... BBB- 110 100 News America Holdings, Inc., 7.75%, 01/20/2024............................... BBB- 115 ------- 505 ------- TECHNOLOGY -- 3.0% 100 AOL Time Warner, Inc., 6.875%, 05/01/2012.............................. BBB+ 111 210 AT&T Wireless Services, Inc., 8.125%, 05/01/2012.............................. BBB 243 100 France Telecom S.A., 9.00%, 03/01/2011............................... BBB 121 150 Intelsat Ltd., 6.50%, 11/01/2013(d)............................ BBB+ 149 100 Motorola, Inc., 8.00%, 11/01/2011............................... BBB 116 20 Rogers Cable, Inc., 6.25%, 06/15/2013............................... BBB- 20 ------- 760 ------- TRANSPORTATION -- 0.4% 100 Delta Air Lines, Inc., 7.11%, 09/18/2011............................... A 102 ------- UTILITIES -- 1.7% 60 Centerpoint Energy, Inc., 5.875%, 06/01/2008(d)........................... BBB- 62 55 Centerpoint Energy, Inc., 6.85%, 06/01/2015(d)............................ BBB- 55 100 FirstEnergy Corp., 6.45%, Ser B 11/15/2011......................... BBB- 106 100 Texas-New Mexico Power Co., 6.125%, 06/01/2008 (with rights)(d)............. BBB- 101 100 Western Resources, Inc., 7.875%, 05/01/2007.............................. BBB- 113 ------- 437 ------- Total corporate bonds: investment grade (cost $3,925)................................... $ 4,259 =======
The accompanying notes are an integral part of this financial statement. 79 THE HARTFORD INCOME FUND SCHEDULE OF INVESTMENTS -- (CONTINUED) OCTOBER 31, 2003 (000'S OMITTED) --------------------------------------------------------------------------------
STANDARD AND POOR'S PRINCIPAL RATING MARKET AMOUNT (UNAUDITED) VALUE(B) --------- ----------- -------- CORPORATE BONDS: NON-INVESTMENT GRADE -- 30.9% BASIC MATERIALS -- 6.7% $200 Abitibi-Consolidated, Inc.,....................... 6.00%, 06/20/2013 BB+ $ 187 100 AK Steel Corp.,................................... 7.75%, 06/15/2012 B+ 68 100 Boise Cascade Corp.,.............................. 7.35%, 02/01/2016 BB+ 101 100 Bowater Canada Finance,........................... 7.95%, 11/15/2011 BB+ 101 100 Bowater, Inc.,.................................... 6.50%, 06/15/2013 BB+ 92 100 Cascades, Inc.,................................... 7.25%, 02/15/2013 BB+ 104 70 Crown European Holdings S.A.,..................... 9.50%, 03/01/2011 B+ 78 40 Equistar Chemicals LP,............................ 8.75%, 02/15/2009 BB- 40 75 FMC Corp.,........................................ 10.25%, 11/01/2009 BB+ 88 100 Georgia-Pacific Corp.,............................ 8.875%, 05/15/2031 BB+ 106 35 Jefferson Smurfit Corp.,.......................... 7.50%, 06/01/2013 B 36 60 Lyondell Chemical Co.,............................ 9.50%, 12/15/2008 BB- 60 15 Norampac, Inc.,................................... 6.75%, 06/01/2013(d) BB+ 16 30 Norske Skog Canada, Inc.,......................... 8.625%, Ser D 06/15/2011 BB 31 100 Nova Chemicals Corp.,............................. 7.00%, 05/15/2006 BB+ 104 20 Oregon Steel Mills, Inc.,......................... 10.00%, 07/15/2009 B 16 75 Owens-Brockway Glass. Containers, 8.75%, 11/15/2012 BB 82 55 Pacifica Papers, Inc.,............................ 10.00%, 03/15/2009 BB 58 15 Peabody Energy Corp.,............................. 6.875%, 03/15/2013 BB- 16 75 Plastipak Holdings, Inc.,......................... 10.75%, 09/01/2011 B+ 83 70 PolyOne Corp.,.................................... 8.875%, 05/01/2012 BB- 58 50 Potlatch Corp.,................................... 10.00%, 07/15/2011 BB- 56 95 Rhodia S.A.,...................................... 8.875%, 06/01/2011(d) B 85 50 United States Steel LLC.,......................... 10.75%, 08/01/2008 BB- 55 ------- 1,721 -------
STANDARD AND POOR'S PRINCIPAL RATING MARKET AMOUNT (UNAUDITED) VALUE(B) --------- ----------- -------- CAPITAL GOODS -- 1.5% $ 55 American Standard, Inc.,.......................... 7.375%, 02/01/2008 BB+ $ 61 50 Cummins, Inc.,.................................... 7.125%, 03/01/2028 BB+ 46 10 Rexnord Corp.,.................................... 10.125%, 12/15/2012 B- 11 30 SPX Corp.,........................................ 6.25%, 06/15/2011 BB+ 30 15 TD Funding Corp.,................................. 8.375%, 07/15/2011(d) B- 16 75 Terex Corp.,...................................... 10.375%, Ser B 04/01/2011 B 85 25 Universal Compression, Inc.,...................... 7.25%, 05/15/2010 B+ 26 100 Xerox Corp.,...................................... 7.125%, 06/15/2010 B+ 102 ------- 377 ------- CONSUMER CYCLICAL -- 4.0% 50 AutoNation, Inc.,................................. 9.00%, 08/01/2008 BB+ 57 50 Dana Corp.,....................................... 6.50%, 03/01/2009 BB 49 25 Dana Corp.,....................................... 6.50%, 03/15/2008 BB 25 20 Dana Corp.,....................................... 7.00%, 03/01/2029 BB 18 100 Delhaize America, Inc.,........................... 7.375%, 04/15/2006 BB+ 107 75 Ingles Markets, Inc.,............................. 8.875%, 12/01/2011 B+ 72 100 KB Home,.......................................... 7.75%, 02/01/2010 BB- 105 50 Penney (J.C.) Co., Inc.,.......................... 8.125%, 04/01/2027 BB+ 52 85 Penney (J.C.) Co., Inc.,.......................... 8.25%, 08/15/2022 BB+ 88 75 Phillips Van-Heusen Corp.,........................ 7.75%, 11/15/2023 BB 74 50 Saks, Inc.,....................................... 7.50%, 12/01/2010 BB 54 75 Schuler Homes, Inc.,.............................. 9.375%, 07/15/2009 BB 84 100 Standard-Pacific Corp.,........................... 6.50%, 10/01/2008 BB 101 50 Toll Corp.,....................................... 8.00%, 05/01/2009 BB+ 53 25 TRW Automotive, Inc.,............................. 9.375%, 02/15/2013(d) B+ 28 25 United Components, Inc.,.......................... 9.375%, 06/15/2013(d) B 26 30 Warnaco, Inc.,.................................... 8.875%, 06/15/2013(d) B 32 ------- 1,025 -------
The accompanying notes are an integral part of this financial statement. 80 --------------------------------------------------------------------------------
STANDARD AND POOR'S PRINCIPAL RATING MARKET AMOUNT (UNAUDITED) VALUE(B) --------- ----------- -------- CORPORATE BONDS: NON-INVESTMENT GRADE -- (CONTINUED) CONSUMER STAPLES -- 0.5% $ 30 Del Monte Corp.,.................................. 8.625%, 12/15/2012(d) B $ 33 40 Smithfield Foods, Inc.,........................... 7.75%, 05/15/2013 BB 43 50 Tembec Industries, Inc.,.......................... 7.75%, 03/15/2012 BB 47 ------- 123 ------- ENERGY -- 2.1% 30 Clark R&M, Inc.,.................................. 8.625%, 08/15/2008 BB- 31 100 CONSOL Energy, Inc.,.............................. 7.875%, 03/01/2012 BB+ 103 50 Gulfterra Energy Partners, Inc.,.................. 6.25%, 06/01/2010(d) BB 50 45 Houston Exploration Co.,.......................... 7.00%, 06/15/2013(d) B+ 46 30 Key Energy Services, Inc.,........................ 6.375%, 05/01/2013 BB 30 46 Port Arthur Finance Corp.,........................ 12.50%, 01/15/2009 BB 54 15 Premcor Refining Group, Inc.,..................... 9.25%, 02/01/2010 BB- 17 25 Tom Brown, Inc.,.................................. 7.25%, 09/15/2013 BB- 26 50 Vintage Petroleum, Inc.,.......................... 8.25%, 05/01/2012 BB- 55 50 Williams Companies, Inc.,......................... 8.625%, 06/01/2010 B+ 55 75 XTO Energy, Inc.,................................. 6.25%, 04/15/2013 BB 78 ------- 545 -------
STANDARD AND POOR'S PRINCIPAL RATING MARKET AMOUNT (UNAUDITED) VALUE(B) --------- ----------- -------- FINANCE -- 3.1% $100 Brazil (Republic of),............................. 2.06%, 04/15/2012 (f) B+ $ 84 50 Columbia (Republic of),........................... 10.00%, 01/23/2012 BB 52 60 Columbia (Republic of),........................... 10.75%, 01/15/2013 BB 66 40 Dominican Republic,............................... 9.04%, 01/23/2013 B- 32 21 Forest City Enterprises, Inc.,.................... 7.625%, 06/01/2015 BB- 22 75 Interpool, Inc.,.................................. 7.35%, 08/01/2007 BB- 70 75 IPC Acquisition Corp.,............................ 11.50%, 12/15/2009 B- 78 100 LNR Property Corp.,............................... 7.625%, 07/15/2013(d) B+ 103 100 Peru (Republic of),............................... 4.50%, 03/07/2017 BB- 89 50 Philippines (Republic of),........................ 10.625%, 03/16/2025 BB 54 70 United Rentals, Inc.,............................. 10.75%, Ser B 04/15/2008 BB- 79 100 Venezuela (Republic of),.......................... 9.25%, 09/15/2027 B- 80 ------- 809 ------- HEALTH CARE -- 0.6% 20 Omnicare, Inc.,................................... 6.125%, 06/01/2013 BB+ 20 60 Select Medical Corp.,............................. 9.50%, 06/15/2009 B 65 75 Tenet Healthcare Corp.,........................... 5.00%, 07/01/2007 BB- 70 ------- 155 ------- SERVICES -- 4.6% 110 Allied Waste North America,. Inc., 7.875%, Ser B 01/01/2009 BB- 115 40 American Greetings Corp.,......................... 11.75%, 07/15/2008 BB+ 46 75 Aztar Corp.,...................................... 8.875%, 05/15/2007 B+ 78 15 CBD Media, Inc.,.................................. 8.625%, 06/01/2011(d) B- 16 75 CSC Holdings, Inc.,............................... 7.875%, 12/15/2007 BB- 77 70 Echostar DBS Corp.,............................... 5.75%, 10/01/2008(d) BB- 70 100 HMH Properties, Inc.,............................. 7.875%, Ser B 08/01/2008 B+ 103 90 Hollinger International, Inc.,.................... 9.00%, 12/15/2010 B 95 50 John Q. Hammons Hotels, Inc.,..................... 8.875%, Ser B 05/15/2012 B 55 30 Lamar Media Corp.,................................ 7.25%, 01/01/2013 B 32 50 Primedia, Inc.,................................... 7.625%, 04/01/2008 B 50 50 Primedia, Inc.,................................... 8.00%, 05/15/2013(d) B 51 45 R.H. Donnelley Financial Corp.,................... 8.875%, 12/15/2010(d) B+ 50 50 Service Corp. International,...................... 6.50%, 03/15/2008 BB- 50 100 Service Corp. International,...................... 7.70%, 04/15/2009 BB- 104 75 Six Flags, Inc.,.................................. 8.875%, 02/02/2010 B- 71 100 Starwood Hotels & Resorts. Worldwide, Inc., 7.875%, 05/01/2012 BB+ 110 ------- 1,173 -------
The accompanying notes are an integral part of this financial statement. 81 THE HARTFORD INCOME FUND SCHEDULE OF INVESTMENTS -- (CONTINUED) OCTOBER 31, 2003 (000'S OMITTED) --------------------------------------------------------------------------------
STANDARD AND POOR'S PRINCIPAL RATING MARKET AMOUNT (UNAUDITED) VALUE(B) --------- ----------- -------- CORPORATE BONDS: NON-INVESTMENT GRADE -- (CONTINUED) TECHNOLOGY -- 4.3% $ 45 Amkor Technology, Inc., 7.75%, 05/15/2013(d)............................ B $ 48 50 Cincinnati Bell, Inc., 8.375%, 01/15/2014(d)........................... B- 50 125 Crown Castle International Corp., 10.75%, 08/01/2011.............................. CCC 140 30 DirecTV Holdings LLC, 8.375%, 03/15/2013.............................. B 34 60 Fimep S.A., 10.50%, 02/15/2013.............................. B+ 70 75 Fisher Scientific International, Inc., 8.125%, 05/01/2012.............................. B+ 81 95 L-3 Communications Corp., 6.125%, 07/15/2013.............................. BB- 94 50 Mediacom LLC, 9.50%, 01/15/2013............................... B+ 47 200 Nextel Communications, Inc., 7.375%, 08/01/2015.............................. B+ 208 50 PanAmSat Corp., 6.875%, 01/15/2028.............................. BB- 49 95 PerkinElmer, Inc., 8.875%, 01/15/2013.............................. BB- 104 100 Rogers Cantel, Inc., 8.30%, 10/01/2007............................... BB+ 103 75 US West Communications, 7.20%, 11/01/2004............................... B- 77 ------- 1,105 ------- TRANSPORTATION -- 0.6% 100 Royal Caribbean Cruises Ltd., 7.25%, 08/15/2006............................... BB+ 105 45 Teekay Shipping Corp., 8.32%, 02/01/2008............................... BB+ 49 ------- 154 ------- UTILITIES -- 2.9% 100 Calpine Canada Energy Financial, 8.50%, 05/01/2008............................... CCC+ 74 25 El Paso Corp., 7.80%, 08/01/2031............................... B 19 25 Illinois Power Co., 11.50%, 12/15/2010.............................. B 30 25 Illinois Power Co., 7.50%, 06/15/2009............................... B 27 50 Montana Power Co., 7.30%, 12/01/2006(d)............................ D 51 100 Nevada Power Co., 9.00%, 08/15/2013(d)............................ BB 106 60 PG&E Corp., 6.875%, 07/15/2008(d)........................... NR 64
STANDARD AND POOR'S PRINCIPAL RATING MARKET AMOUNT (UNAUDITED) VALUE(B) --------- ----------- -------- UTILITIES -- (CONTINUED) $100 Southern California Edison Co., 8.00%, 02/15/2007............................... BB $ 112 45 TECO Energy, Inc., 7.50%, 06/15/2010............................... BB+ 46 100 Tennessee Gas Pipeline Co., 8.375%, 06/15/2032.............................. B+ 101 100 Transcontinental Gas Pipeline Corp., 6.125%, 01/15/2005.............................. B+ 102 ------- 732 ------- Total corporate bonds: non-investment grade (cost $7,536)................................... $ 7,919 =======
U.S. GOVERNMENT SECURITIES -- 40.8% FEDERAL HOME LOAN MORTGAGE CORPORATION -- 5.4% 1,161 5.50% 2032........................................ $ 1,172 200 6.00% 2028........................................ 209 ------- 1,381 ------- FEDERAL NATIONAL MORTGAGE ASSOCIATION -- 13.8% 872 5.00% 2017........................................ 885 2,615 5.50% 2032 -- 2033................................ 2,641 ------- 3,526 ------- U.S. TREASURY SECURITIES -- 21.6% 4,355 3.625% 2008(e).................................... 5,530 ------- Total U.S. government securities (cost $10,447).................................. $10,437 ======= Total long-term investments (cost $24,313).................................. $24,992 ======= SHORT-TERM INVESTMENTS -- 0.8% FINANCE -- 0.8% 46 Banc One Joint Repurchase Agreement, 0.97%, 11/03/2003 (Note 2f)..................... $ 47 73 BNP Paribas Joint Repurchase Agreement, 0.99%, 11/03/2003 (Note 2f)..................... 73 73 UBS Warburg Joint Repurchase Agreement, 0.98%, 11/03/2003 (Note 2f)..................... 73 ------- 193 ------- Total short-term investments (cost $193)..................................... $ 193 ======= Total investments in securities (cost $24,506)(a)............................... $25,185 =======
The accompanying notes are an integral part of this financial statement. 82 -------------------------------------------------------------------------------- (a) At October 31, 2003, the cost of securities for federal income tax purposes is $24,506 and the aggregate gross unrealized appreciation and depreciation based on that cost was: Unrealized appreciation........................... $ 841 Unrealized depreciation........................... (161) ----- Net unrealized appreciation....................... $ 680 =====
(b) See Note 2b of accompanying Notes to Financial Statements regarding valuation of securities. (c) Note: Percentage of investments as shown is the ratio of the total market value to total net assets. Market value of investments in foreign securities represents 11.43% of total net asset as of October 31, 2003. (d) Securities sold within the terms of a private placement memorandum, exempt from registration under Section 144A of the securities Act of 1933, as amended, and may be sold only to dealers in that program or to other "accredited investors". Pursuant to guidelines adopted by the Board of directors, these issues are determined to be liquid. The aggregate value of these securities at October 31, 2003, was $1,869, which represents 7.30% of total net assets. (e) U.S. Treasury inflation protection securities (TIPS) are securities in which the principal amount is adjusted for inflation and the semiannual interest payments equal a fixed percentage of the inflation-adjusted principal amount. (f) Variable rate securities; the yield reported is the rate in effect as of October 31, 2003. * Moody's Rating STATEMENT OF ASSETS AND LIABILITIES: ASSETS Investments in securities, at value (cost $24,506)......................................... $ 25,185 Cash............................................... 1 Foreign currency on deposit with custodian (cost $1).............................................. 1 Receivables: Fund shares sold................................. 285 Dividends and interest........................... 367 Other assets....................................... 40 -------- Total assets....................................... 25,879 -------- LIABILITIES Payables: Investment securities purchased.................. 200 Fund shares redeemed............................. 59 Payable for investment advisory and management fees (Note 3).................................. 12 Payable for distribution fees (Note 3)........... 2 Accrued Expenses................................... 15 -------- Total liabilities.................................. 288 -------- Net assets......................................... $ 25,591 ======== SUMMARY OF NET ASSETS: Capital stock and paid-in-capital, par value $0.001 per share; 300,000 shares authorized; 2,430 shares outstanding............................... $ 24,901 Accumulated undistributed net investment income.... 30 Accumulated net realized loss on investments and foreign currency transactions.................... (20) Unrealized appreciation of investments in securities and the translations of assets and liabilities denominated in foreign currency...... 680 -------- Net assets......................................... $ 25,591 ========
Class A Net asset value per share ($15,836 / 1,504 shares outstanding)...................................... $10.53 ------ Maximum offering price per share ($10.53 / 95.5%)... $11.03 ====== Class B Net asset value per share ($4,705 / 447 shares outstanding)...................................... $10.53 ====== Class C Net asset value per share ($5,050 / 479 shares outstanding)...................................... $10.55 ------ Maximum offering price per share ($10.55 / 99.0%)... $10.66 ======
The accompanying notes are an integral part of this financial statement. 83 THE HARTFORD INFLATION PLUS FUND SCHEDULE OF INVESTMENTS OCTOBER 31, 2003 (000'S OMITTED) --------------------------------------------------------------------------------
STANDARD AND POOR'S PRINCIPAL RATING MARKET AMOUNT (UNAUDITED) VALUE(B) --------- ----------- -------- ASSET BACKED AND COMMERCIAL MORTGAGE SECURITIES -- 2.7% FINANCE -- 2.7% $ 750 Bear Stearns Commercial Mortgage Security, 2.02%, Ser 2003-BA1A Class E 04/14/2015(d)(e)... AA- $ 749 1,000 Capital One Multi-Asset Execution Trust, 2.29%, Ser 2003-B1 Class B1 02/17/2009(d)....... A 1,001 1,000 Commercial Mortgage Pass-Through Certificate, 2.12%, Ser 2003-FL 8 Class E 07/15/2015(d)(e)... A+ 1,000 400 CS First Boston Mortgage Securities Corp., 2.52%, Ser 2002-TFLA Class D 11/18/2012(d)(e)... A 401 600 CS First Boston Mortgage Securities Corp., 2.69%, Ser 2002-TFLAC Class E 11/18/2012(d)(e)................................ A- 601 250 CS First Boston Mortgage Securities Corp., 3.87%, Ser 2002-FL2A Class D 12/18/2010(d)(e)... BBB 250 421 GMAC Commercial Mortgage Securities, Inc., 2.12%, Ser 2003-FL1A Class C 03/11/2015(d)(e)... A 421 474 J.P. Morgan Chase Commercial Mortgage Security, 2.07%, Ser 2003-FL1A Class C 02/17/2015(d)(e)... A 474 400 Lehman Brothers Commercial Mortgage Trust, 1.97%, Ser 2000-LLFA Class G 11/19/2012(d)(e)... A 400 1,000 Lehman Brothers Commercial Mortgage Trust, 2.27%, Ser 2003-LLFA Class G 12/16/2014(d)(e)... A+ 1,000 400 Lehman Brothers Commercial Mortgage Trust, 2.52%, Ser 2002-LLFA Class J 06/14/2017(d)(e)... BBB+ 395 164 Merrill Lynch Mortgage Investors, Inc., 2.12%, Ser 2000-FF1 Class M2 03/01/2031(d)...... A 165
STANDARD AND POOR'S PRINCIPAL RATING MARKET AMOUNT (UNAUDITED) VALUE(B) --------- ----------- -------- FINANCE -- (CONTINUED) $ 1,000 Morgan Stanley Capital I, 2.42%, Ser 2003-XLF Class G 07/15/2017(d)(e).... A $ 1,004 1,000 Salomon Brothers Mortgage Securities VII, 2.12%, Ser 2003-CDCA Class E 02/15/2015(d)(e)... AA- 1,000 1,000 Wachovia Bank Commercial Mortgage Trust, 2.47%, Ser 2003-WHL2 Class G 06/15/2013(d)(e)... A 1,000 9,861 -------- Total asset backed and commercial mortgage securities (cost $9,840)................................... $ 9,861 ======== CORPORATE BONDS: INVESTMENT GRADE -- 0.3% FINANCE -- 0.3% 75 General Motors Acceptance Corp., 1.99%, 03/22/2004............................... BBB $ 75 1,000 General Motors Acceptance Corp., 3.14%, 03/04/2005............................... BBB 1,011 -------- 1,086 -------- Total corporate bonds: investment grade (cost $1,077)......................................... $ 1,086 ========
U.S. GOVERNMENT SECURITIES -- 96.5% OTHER DIRECT FEDERAL OBLIGATIONS -- 0.7% Tennessee Valley Authority 2,000 3.375% 2007(f).................................... $ 2,513 -------- U.S. TREASURY SECURITIES -- 95.8% 29,160 1.875% 2013(f).................................... 29,080 35,310 3.00% 2012(f)..................................... 39,673 28,220 3.375% 2007 -- 2032(f)............................ 35,642 29,540 3.50% 2011(f)..................................... 35,305 60,410 3.625% 2008 -- 2028(f)............................ 80,393 68,475 3.875% 2009 -- 2029(f)............................ 92,336 33,770 4.25% 2010(f)..................................... 43,181 -------- 355,610 -------- Total U.S. government securities (cost $354,444)....................................... $358,123 ======== Total investments in securities (cost $365,361)(a).................................... $369,070 ========
The accompanying notes are an integral part of these financial statements. 84 -------------------------------------------------------------------------------- (a) At October 31, 2003, the cost of securities for federal income tax purposes is $365,626 and the aggregate gross unrealized appreciation and depreciation based on that cost was: Unrealized appreciation.......................... $3,447 Unrealized depreciation.......................... (3) ------ Net unrealized appreciation...................... $3,444 ======
(b) See Note 2b of accompanying Notes to Financial Statements regarding valuation of securities. (c) Note: Percentage of investments as shown is the ratio of the total market value to total net assets. (d) Variable Rate Securities, the yield reported is the rate in effect as of October 31, 2003. (e) Securities sold within the terms of a private placement memorandum, exempt from registration under Section 144A of the securities Act of 1933, as amended, and may be sold only to dealers in that program or to other "accredited investors". Pursuant to guidelines adopted by the Board of Directors, these issues are determined to be liquid. The aggregate value of these securities at October 31, 2003, was $8,695, which represents 2.34% of total net assets. (f) Inflation-protection securities are securities in which the principal amount is adjusted for inflation and the semi-annual interest payments equal a fixed percentage of the inflation-adjusted principal amount. STATEMENT OF ASSETS AND LIABILITIES: ASSETS Investments in securities, at value (cost $365,361)......................................... $369,070 Receivables: Fund shares sold.................................. 4,979 Dividends and interest............................ 2,508 Other assets........................................ 272 -------- Total assets........................................ 376,829 -------- LIABILITIES Payables: Bank Overdraft.................................... 389 Investment securities purchased................... 2,903 Fund shares redeemed.............................. 1,976 Payable for investment advisory and management fees (Note 3)................................... 183 Payable for distribution fees (Note 3)............ 37 Accrued Expenses.................................... 110 -------- Total liabilities................................... 5,598 -------- Net assets.......................................... $371,231 ======== SUMMARY OF NET ASSETS: Capital stock and paid-in-capital, par value $0.001 per share; 400,000 shares authorized; 34,912 shares outstanding................................ $366,052 Accumulated undistributed net investment income..... 283 Accumulated net realized gain on investments and foreign currency transactions..................... 1,187 Unrealized appreciation of investments in securities and the translations of assets and liabilities denominated in foreign currency................... 3,709 -------- Net assets.......................................... $371,231 ========
Class A Net asset value per share ($142,992 / 13,449 shares outstanding)...................................... $10.63 ------ Maximum offering price per share ($10.63 / 95.5%)... $11.13 ====== Class B Net asset value per share ($67,986 / 6,391 shares outstanding)...................................... $10.64 ====== Class C Net asset value per share ($160,253 / 15,072 shares outstanding)...................................... $10.63 ------ Maximum offering price per share ($10.63 / 99.0%)... $10.74 ======
The accompanying notes are an integral part of these financial statements. 85 THE HARTFORD INTERNATIONAL CAPITAL APPRECIATION FUND SCHEDULE OF INVESTMENTS OCTOBER 31, 2003 (000'S OMITTED) --------------------------------------------------------------------------------
MARKET SHARES VALUE(C) --------- -------- COMMON STOCK -- 92.0% BRAZIL -- 1.8% 11 Empresa Brasileira de Aeronautica S.A. ADR (Aerospace Product and Parts Manufacturing)..... $ 293 ------- CANADA -- 2.1% 8 Research in Motion Ltd. (Wireless Telecommunications Carriers)(a)....... 340 ------- CHINA -- 0.0% 28 PICC Property and Casualty Co. Ltd. (Insurance Carriers)(a)(f)...................... 6 ------- FINLAND -- 0.2% 2 Nokia Oyj (Communications Equipment).............. 28 ------- FRANCE -- 18.8% 29 Alcatel S.A. (Communications Equipment)........... 379 16 Altran Technologies S.A. (Construction -- Other Heavy and Civil Engineering).................... 194 15 Axa (Insurance Carriers).......................... 279 4 BNP Paribas (Depository Credit Banking)........... 184 3 Cie Generale D'Optique Essilor International S.A. (Nonmetallic Manuf -- Other).................... 149 4 Club Mediterranee S.A. (Recreation -- Other Amusement & Recreation Indust).................. 148 1 Pinault-Printemps-Redoute S.A. (Retail -- Department Stores).............................. 134 3 Renault S.A. (Retail -- Automobile Dealers)....... 192 3 Rodriguez Group (Ship and Boat Building).......... 204 3 Total S.A. (Petro and Coal -- Products Manufacturing).................................. 404 2 Unibail Holding (Lessors of Real Estate).......... 189 15 Vivendi Universal S.A. (Other Services -- Commercial/Indust Machine & Equip).............. 319 34 Wanadoo(a) (Internet Providers & Web Search Port)........................................... 254 ------- 3,029 ------- GERMANY -- 10.6% 3 Allianz AG (Insurance Carriers)................... 285 7 Bayerische Motoren Werke (BMW) AG (Motor Vehicle Manufacturing).................................. 281 2 Deutsche Bank AG (Depository Credit Banking)...... 152 2 Muenchener Rueckversicherungs-Gesellschaft AG (Insurance and Employee Benefit Funds).......... 262 2 Muenchener Rueckversicherungs-Gesellschaft AG Rights (Insurance and Employee Benefit Funds)... 15 @@ Porsche AG (Motor Vehicle Manufacturing).......... 128 5 Schering AG (Pharmaceutical & Medicine Manufacturing).................................. 230 5 Siemens AG (Navigate, Measure, Control Instruments).................................... 349 ------- 1,702 -------
MARKET SHARES VALUE(C) --------- -------- HONG KONG -- 6.2% 142 China Merchants Holdings International Co. Ltd. (Other Transportation Equipment)................ $ 192 134 CNOOC Ltd. (Petro and Coal -- Oil & Gas Extraction)..................................... 253 37 Esprit Holdings Ltd. (Retail -- Clothing Stores)......................................... 116 20 Hutchison Whampoa Ltd. (Activities Related to Real Estate)......................................... 155 102 Techtronic Industries Co. Ltd. (Electrical Equip Manuf).......................................... 281 ------- 997 ------- INDONESIA -- 0.8% 9 P.T. Telekomunikasi Indonesia ADR (Other Telecommunications)............................. 125 ------- IRELAND -- 1.0% 3 Ryanair Holdings plc ADR (Air Transportation Scheduled)(a)................................... 160 ------- ISRAEL -- 0.8% 2 Teva Pharmaceutical Industries Ltd. ADR (Pharmaceutical & Medicine Manufacturing)....... 131 ------- JAPAN -- 7.2% 2 Fanuc Ltd. (Electrical Equip Manuf -- Component Other).......................................... 132 2 Fast Retailing Co. Ltd. (Retail -- Clothing Stores)......................................... 146 3 Ito-Yokado Co. Ltd. (Retail -- Other General Merchandise Stores)............................. 114 @@ Mizuho Financial Group, Inc. (Monetary Authorities -- Central Bank).................... 132 21 Nikko Cordial Corp. (Other Financial Investment Activities)..................................... 113 @@ Nippon Telegraph & Telephone Corp. (Wired Telecommunications Carriers).................... 139 15 Sumitomo Electric Industries Ltd. (Semiconductor, Electronic Compon).............................. 129 @@ Sumitomo Mitsui Financial Group, Inc. (Monetary Authorities -- Central Bank)(a)....... 126 @@ UMC Japan (Semiconductor, Electronic Compon)(a)... 136 ------- 1,167 ------- MALAYSIA -- 2.0% 109 Resorts World BHD (Recreation -- Other Amusement & Recreation Indust).............................. 315 ------- NETHERLANDS -- 2.3% 7 ASML Holding N.V. (Semiconductor, Electronic Compon)(a)...................................... 123 12 European Aeronautic Defence and Space Co. (Aerospace Product and Parts Manufacturing)..... 239 ------- 362 -------
The accompanying notes are an integral part of these financial statements. 86 --------------------------------------------------------------------------------
MARKET SHARES VALUE(C) --------- -------- COMMON STOCK -- (CONTINUED) VV7 MINING AND METALLURGICAL CO. NORILSK NICKEL ADR (Mining -- Metal Ore)........................... $ 366 ------- SOUTH KOREA -- 4.2% 3 Samsung Electronics Co. Ltd. GDR (Audio and Video Equipment)(e)................................... 675 ------- SPAIN -- 1.3% 19 Promotora de Informaciones S.A. (Prisa) (Cable & Other Subscription Programming)........ 214 ------- SWEDEN -- 5.4% 13 Atlas Copco AB-A Shares (Fabricated Metal Manf -- Other).................................. 473 ------- 24 Telefonaktiebolaget LM Ericsson ADR (Communications Equipment)(a)................... 401 ------- 874 ------- SWITZERLAND -- 9.0% 53 ABB Ltd. (Electrical Equip Manuf)................. 311 3 Converium Holding AG (Insurance Carriers)......... 128 16 Credit Suisse Group (Monetary Authorities -- Central Bank)................................... 547 4 Roche Holding AG (Pharmaceutical & Medicine Manufacturing).................................. 324 @@ Serono S.A. Class B (Drugs and Druggists' Sundries Merchant)....................................... 138 ------- 1,448 ------- UNITED KINGDOM -- 15.0% 13 AMVESCAP plc (Other Financial Investment Activities)..................................... 102 6 AstraZeneca plc (Pharmaceutical & Medicine Manufacturing).................................. 300 52 British Airways plc (Air Transportation Scheduled)(a)................................... 182 55 Burberry Group plc (Apparel Manufacturing -- Accessories and Other).......................... 367 159 Carphone Warehouse plc (Wireless Telecommunications Carriers).................... 348 41 Compass Group plc (Accommodation & Food Serv -- Special Food Services).................. 237 93 Kingfisher plc (Retail -- Other General Merchandise Stores)............................. 445 40 Lastminute.com plc (Internet Providers & Web Search Port)(a)................................. 200 47 Rolls-Royce Group plc (Machinery Manuf -- Engine, Turbine, Power Trans)........................... 151 36 Vodafone Group plc (Wireless Telecommunications Carriers)....................................... 75 ------- 2,407 -------
MARKET SHARES VALUE(C) --------- -------- UNITED STATES -- 1.0% 6 Bunge Ltd. (Food Manufacturing -- Grain and Oilseed Milling)................................ $ 157 ------- Total common stock (cost $13,191)................. $14,796 ======= SHARES --------- VV SHORT-TERM INVESTMENTS -- 28.5% SECURITIES PURCHASED WITH PROCEEDS FROM SECURITIES LENDING -- 18.1% 2,903 Navigator Prime Portfolio......................... $ 2,903 ------- PRINCIPAL AMOUNT ------ OVFINANCE -- 10.4% $ 243 ABN AMRO Joint Repurchase Agreement, 1.00%, 11/03/03 (Note 2f)....................... 243 640 BNP Paribas Joint Repurchase Agreement, 1.00%, 11/03/03 (Note 2f)....................... 640 795 UBS Securities Joint Repurchase Agreement, 0.98%, 11/03/03 (Note 2f)....................... 795 ------- 1,678 ------- Total short-term investments (cost $4,581)........ $ 4,581 ======= Total investments in securities (cost $17,772)(b)..................................... $19,377 =======
(a) Presently non-income producing. (b) At October 31, 2003, the cost of securities for federal income tax purposes was $17,796 and the aggregate gross unrealized appreciation and depreciation based on that cost was: Unrealized appreciation.......................... $1,639 Unrealized depreciation.......................... (58) ------ Net unrealized appreciation...................... $1,581 ======
(c) See Note 2b of accompanying Notes to Financial Statements regarding valuation of securities. (d) Note: Percentage of investments as shown is the ratio of the total market value to total net assets. (e) Security sold within the terms of a private placement memorandum, exempt from registration under Section 144A of the Securities Act of 1933, as amended, and may be sold only to dealers in that program or to other "accredited investors." Pursuant to guidelines adopted by the Board of Directors, this issue is deemed to be liquid. The aggregate value of this security at October 31, 2003, was $675, which represents 4.20% of total net assets. (f) Security valued in good faith at fair value by, or under the direction of, the Funds' Board of Directors. The aggregate value of these securities as of October 31, 2003, was $6, which represents 0.04% of total net assets. The accompanying notes are an integral part of these financial statements. 87 THE HARTFORD INTERNATIONAL CAPITAL APPRECIATION FUND SCHEDULE OF INVESTMENTS -- (CONTINUED) OCTOBER 31, 2003 (000'S OMITTED) --------------------------------------------------------------------------------
PERCENTAGE OF NET ASSETS ------------- DIVERSIFICATION BY INDUSTRY Basic Materials 6.1% Capital Goods 5.2% Consumer Cyclical 13.2% Consumer Staples 1.0% Energy 4.0% Finance and Insurance 15.7% Health Care 7.0% Services 7.7% Technology 27.5% Transportation 4.6% Short Term Investments 28.5% ----- Total 120.5% =====
FORWARD FOREIGN CURRENCY CONTRACTS OUTSTANDING AS OF OCTOBER 31, 2003
CONTRACT DELIVERY APPRECIATION DESCRIPTION MARKET VALUE AMOUNT DATE (DEPRECIATION) ----------- ------------ -------- ---------- -------------- British Pound (Buy) $139 $139 11/03/2003 @@ Euro (Buy) 96 96 11/03/2003 @@ Euro (Buy) 265 265 11/04/2003 @@ Hong Kong Dollar (Buy) 39 39 11/04/2003 @@ Hong Kong Dollar (Buy) 6 6 11/06/2003 @@ Japanese Yen (Buy) 26 26 11/06/2003 @@ Swedish Krona (Buy) 44 44 11/04/2003 @@ Swiss Franc (Buy) 84 85 11/03/2003 $(1) Swiss Franc (Buy) 57 57 11/04/2003 @@ Japanese Yen (Sell) 10 10 11/04/2003 @@ --- $(1) === @@ Due to the presentation of the financial statements in thousands, the number or shares and/or dollars round to zero.
STATEMENT OF ASSETS AND LIABILITIES: ASSETS Investments in securities, at value; (cost $16,094) @ ........................................ $17,699 Repurchase agreements, at value; (cost $1,678)....... 1,678 Cash................................................. 1 Foreign currency on deposit with custodian (cost $10)............................................... 10 Receivables: Investment securities sold......................... 170 Fund shares sold................................... 523 Dividends and interest............................. 10 Other assets......................................... 26 ------- Total assets......................................... 20,117 ------- LIABILITIES Unrealized depreciation on forward foreign currency contracts.......................................... 1 Payables: Payable upon return of securities loaned (Note 2d).............................................. 2,903 Investment securities purchased.................... 1,081 Fund shares redeemed............................... 20 Payable for investment advisory and management fees (Note 3)......................................... 12 Payable for distribution fees (Note 3)............. 1 Accrued Expenses..................................... 12 ------- Total liabilities.................................... 4,030 ------- Net assets........................................... $16,087 ======= @ Market value of securities on loan $2,746. SUMMARY OF NET ASSETS: Capital stock and paid-in-capital, par value $0.001 per share; 300,000 shares authorized; 1,679 shares outstanding........................................ $14,403 Accumulated undistributed net investment income...... 1 Accumulated net realized gain on investments and foreign currency transactions...................... 77 Unrealized appreciation of investments in securities and the translations of assets and liabilities denominated in foreign currency.................... 1,606 ------- Net assets........................................... $16,087 =======
Class A Net asset value per share ($11,362 / 1,181 shares outstanding)...................................... $ 9.62 ------ Maximum offering price per share ($9.62 / 94.5% )... $10.18 ====== Class B Net asset value per share ($2,148 / 227 shares outstanding)...................................... $ 9.46 ====== Class C Net asset value per share ($2,285 / 241 shares outstanding)...................................... $ 9.46 ------ Maximum offering price per share ($9.46 / 99.0%).... $ 9.56 ====== Class Y Net asset value per share ($292 / 30 shares outstanding)...................................... $ 9.69 ======
The accompanying notes are an integral part of these financial statements. 88 THE HARTFORD INTERNATIONAL OPPORTUNITIES FUND SCHEDULE OF INVESTMENTS OCTOBER 31, 2003 (000'S OMITTED) --------------------------------------------------------------------------------
MARKET SHARES VALUE(C) --------- -------- COMMON STOCK -- 97.0% AUSTRALIA -- 0.5% 131 Rinker Group Ltd. (Construction -- Other Heavy Construction)................................... $ 588 -------- AUSTRIA -- 0.6% 58 Telekom Austria AG (Other Telecommunications)(a)(e)....................... 617 -------- BRAZIL -- 1.5% 20 Empresa Brasileira de Aeronautica S.A. ADR (Aerospace Product and Parts Manufacturing)..... 519 24 Petroleo Brasileiro S.A. ADR (Petro and Coal -- Oil & Gas Extraction)................... 564 28 Uniao de Bancos Brasileiros S.A. GDR (Other Financial Investment Activities)................ 610 -------- 1,693 -------- CANADA -- 3.8% 15 Canadian National Railway Co. (Transportation -- Rail)........................ 879 11 Inco Ltd. (Mining and Quarrying Nonmetallic Mineral)(a)..................................... 365 45 National Bank of Canada (Depository Credit Banking)........................................ 1,384 21 Royal Bank of Canada (Depository Credit Banking)........................................ 1,021 11 Talisman Energy, Inc. (Petro and Coal -- Oil & Gas Extraction)..................................... 552 -------- 4,201 -------- CHINA -- 0.6% 1,784 China Telecom Corp. Ltd. (Other Telecommunications)............................. 591 202 PICC Property and Casualty Co. Ltd. (Insurance Carriers)(a)(f)................................. 47 -------- 638 -------- FINLAND -- 1.2% 79 Nokia Oyj (Communications Equipment).............. 1,335 -------- FRANCE -- 12.8% 29 Aventis S.A. (Pharmaceutical & Medicine Manufacturing).................................. 1,551 43 Axa (Insurance Carriers).......................... 824 17 BNP Paribas (Depository Credit Banking)........... 894 24 Carrefour S.A. (Retail -- Grocery Stores)......... 1,275 20 Cie Generale D'Optique Essilor International S.A. (Nonmetallic Manuf -- Other).................... 948 51 France Telecom S.A. (Other Telecommunications).... 1,233 29 Lafarge S.A. (Nonmetallic Manuf -- Cement and Concrete Product)............................... 2,090 8 Pinault-Printemps-Redoute S.A. (Retail -- Department Stores).............................. 844 23 Schneider Electric S.A. (Miscellaneous Manufacturing).................................. 1,317
MARKET SHARES VALUE(C) --------- -------- FRANCE -- (CONTINUED) 28 Societe Television Francaise 1 (Radio and Television Broadcasting)........................ $ 837 15 Total S.A. (Petro and Coal -- Products Manufacturing).................................. 2,347 -------- 14,160 -------- GERMANY -- 4.2% 24 Bayerische Motoren Werke (BMW) AG (Motor Vehicle Manufacturing).................................. 971 30 DaimlerChrysler AG (Motor Vehicle Manufacturing).................................. 1,099 104 Deutsche Telekom AG (Wired Telecommunications Carriers)(a).................................... 1,634 19 E.ON AG (Miscellaneous Manufacturing)............. 971 -------- 4,675 -------- HONG KONG -- 1.0% 134 Cheung Kong (Holdings) Ltd. (Activities Related to Real Estate).................................... 1,117 -------- IRELAND -- 0.6% 72 Ryanair Holdings plc (Air Transportation Scheduled)(a)................................... 600 -------- ITALY -- 2.8% 70 ENI-Ente Nazionale Idrocarburi S.p.A. (Petro and Coal -- Oil & Gas Extraction)................... 1,110 103 Fiat S.p.A. (Motor Vehicle Manufacturing)......... 808 225 UniCredito Italiano S.p.A. (Commercial Banking)... 1,109 -------- 3,027 -------- JAPAN -- 15.4% 107 Asahi Glass Co. Ltd. (Nonmetallic Manuf -- Glass and Glass Product).............................. 845 68 Dai Nippon Printing Co. Ltd. (Printing and Related Support Activities)............................. 1,050 29 Fuji Photo Film Co. Ltd. (Miscellaneous Manufacturing).................................. 855 18 Honda Motor Co. Ltd. (Retail -- Other Motor Vehicle Dealers)................................ 723 40 Kao Corp. (Retail -- Other General Merchandise Stores)......................................... 822 3 Keyence Corp. (Electrical Equip Manuf -- Component Other).......................................... 638 41 Matsushita Electric Industrial Co. Ltd. (Audio and Video Equipment)................................ 540 8 Nintendo Co. Ltd. (Toy Manufacturing)............. 626 156 Nippon Express Co. Ltd. (Wired Telecommunications Carriers)....................................... 704 5 Nomura Research Institute Ltd. (Other Information Services)....................................... 533 47 Nomura Securities Co. Ltd. (Other Financial Investment Activities).......................... 807 1 NTT DoCoMo, Inc. (Wireless Telecommunications Carriers)....................................... 1,576 2 OBIC Co. Ltd. (Computer and Peripheral)........... 528 7 Orix Corp. (Activities Related to Real Estate).... 589
The accompanying notes are an integral part of these financial statements. 89 THE HARTFORD INTERNATIONAL OPPORTUNITIES FUND SCHEDULE OF INVESTMENTS -- (CONTINUED) OCTOBER 31, 2003 (000'S OMITTED) --------------------------------------------------------------------------------
MARKET SHARES VALUE(C) --------- -------- COMMON STOCK -- (CONTINUED) JAPAN -- (CONTINUED) 7 Rohm Co. Ltd. (Semiconductor, Electronic Compon)......................................... $ 917 28 Shin-Etsu Chemical Co. Ltd. (Resin, Synthetic Rubber, Filaments).............................. 1,049 35 Shionogi & Co. Ltd. (Pharmaceutical & Medicine Manufacturing).................................. 587 1 SKY Perfect Communications, Inc. (Cable and Other Program Distribution)(a)........................ 780 93 Sompo Japan Insurance, Inc. (Agencies, Brokerages, Other Insurance Activities)..................... 770 10 Sony Corp. (Audio and Video Equipment)............ 352 17 Sony Corp. ADR (Audio and Video Equipment)........ 591 102 Sumitomo Trust & Banking Co. Ltd. (International Trade Financing (Foreign Banks))................ 570 129 The Bank of Yokohama Ltd. (International Trade Financing (Foreign Banks))...................... 557 -------- 17,009 -------- MALAYSIA -- 2.2% 349 Berjaya Sports Toto Berhad (Other Financial Investment Activities).......................... 400 293 Malayan Banking Berhad (Commercial Banking)....... 787 516 Public Bank Berhad (Commercial Banking)........... 407 284 Resorts World Berhad (Recreation -- Other Amusement & Recreation Indust).................. 822 -------- 2,416 -------- MEXICO -- 0.9% 42 America Movil S.A. de C.V. Ser L ADR (Telecommunication Resellers)................... 1,009 -------- NETHERLANDS -- 3.9% 39 Akzo Nobel N.V. (Paint, Coating, and Adhesive).... 1,236 28 ASML Holding N.V. (Semiconductor, Electronic Compon)(a)...................................... 489 @@ ING Groep N.V. (International Trade Financing (Foreign Banks))................................ @@ 92 Koninklijke (Royal) KPN N.V. (Wired Telecommunications Carriers)(a)................. 696 25 Royal Dutch Petroleum Co. (Petro and Coal -- Products Manufacturing)......................... 1,096 38 TPG N.V. (Postal Service)......................... 824 -------- 4,341 -------- RUSSIA -- 0.3% 5 Mining and Metallurgical Co. Norilsk Nickel ADR (Mining -- Metal Ore)........................... 278 -------- SOUTH AFRICA -- 0.4% 10 Anglo American Platinum Corp. Ltd. (Primary Metal Manuf -- Nonferrous Metal)...................... 415 --------
MARKET SHARES VALUE(C) --------- -------- SOUTH KOREA -- 4.8% 133 Kia Motors Corp. (Motor Vehicle Manufacturing).... $ 930 42 Kookmin Bank (Commercial Banking)................. 1,528 4 Samsung Electronics Co. Ltd. (Semiconductor, Electronic Compon).............................. 1,747 7 SK Telecom Co. Ltd. (Wireless Telecommunications Carriers)....................................... 1,152 -------- 5,357 -------- SWEDEN -- 1.9% 52 ForeningsSparbanken AB (Swedbank) (International Trade Financing (Foreign Banks))................ 865 199 Nordic Baltic Holding AB (Other Financial Investment Activities).......................... 1,236 -------- 2,101 -------- SWITZERLAND -- 8.5% 133 ABB Ltd. (Electrical Equip Manuf)................. 781 27 Credit Suisse Group (Monetary Authorities -- Central Bank)................................... 967 10 Nestle S.A. (Food Manufacturing -- Other)......... 2,183 18 Roche Holding AG (Pharmaceutical & Medicine Manufacturing).................................. 1,449 1 Serono S.A. Class B (Drugs and Druggists' Sundries Merchant)....................................... 744 33 STMicroelectronics N.V. (Semiconductor, Electronic Compon)......................................... 879 39 UBS AG (Commercial Banking)....................... 2,413 -------- 9,416 -------- TAIWAN -- 4.1% 1,350 Advanced Semiconductor Engineering, Inc. (Semiconductor, Electronic Compon)(a)........... 1,251 44 China Steel Corp. (Primary Metal Manuf-Iron, Steel Mills & Ferroalloy)(e).......................... 714 2,747 United Microelectronics Corp. (Semiconductor, Electronic Compon)(a)........................... 2,515 -------- 4,480 -------- THAILAND -- 0.8% 461 Kasikornbank Public Co. Ltd. (Commercial Banking)(a)..................................... 514 403 Siam Commercial Bank Public Co. Ltd. (International Trade Financing (Foreign Banks))(a)...................................... 417 -------- 931 -------- TURKEY -- 0.3% 81,436 Akbank T.A.S. (Commercial Banking)................ 382 -------- UNITED KINGDOM -- 22.1% 32 AstraZeneca plc (Pharmaceutical & Medicine Manufacturing).................................. 1,502 63 Aviva plc (Insurance Carriers).................... 520 307 BP plc (Petro and Coal -- Products Manufacturing).................................. 2,131
The accompanying notes are an integral part of these financial statements. 90 --------------------------------------------------------------------------------
MARKET SHARES VALUE(C) --------- -------- COMMON STOCK -- (CONTINUED) UNITED KINGDOM -- (CONTINUED) 268 British Airways plc (Air Transportation Scheduled)(a)................................... $ 947 158 Capita Group plc (Public -- Administration of Human Resource Programs)........................ 664 309 Compass Group plc (Accommodation & Food Serv -- Special Food Services).................. 1,782 2,022 Corus Group plc (Primary Metal Manuf-Iron, Steel Mills & Ferroalloy)(a).......................... 823 66 GlaxoSmithKline plc (Medical and Diagnostic Laboratories)................................... 1,407 44 HBOS plc (Monetary Authorities -- Central Bank)... 507 303 Hilton Group plc (Recreation -- Gambling Industries)..................................... 998 109 HSBC Holdings plc (Depository Credit Banking)..... 1,637 45 Imperial Tobacco Group plc (Tobacco Manufacturing).................................. 741 154 Kingfisher plc (Retail -- Other General Merchandise Stores)............................. 737 184 National Grid Group plc (Utilities -- Electric Generation, Trans and Distrib).................. 1,177 81 Pearson plc (Newspaper, Book and Periodical)...... 835 41 Reckitt Benckiser plc (Soap, Cleaning Compound, Toilet Manufacturing)........................... 868 40 Rio Tinto plc (Petro and Coal -- Mining Support Activities)..................................... 958 83 Royal Bank of Scotland Group plc (International Trade Financing (Foreign Banks))................ 2,228 1,128 Vodafone Group plc (Wireless Telecommunications Carriers)....................................... 2,368 161 WPP Group plc (Advertising & Related Services).... 1,534 -------- 24,364 -------- UNITED STATES -- 1.8% 34 Accenture Ltd. Class A (Management, Scientific, and Tech Consulting Svcs)(a).................... 800 57 Tyco International Ltd. (with rights) (Miscellaneous Manufacturing)................... 1,197 -------- 1,997 -------- Total common stock (cost $94,754).................................. $107,147 ======== SHARES --------- SHORT-TERM INVESTMENTS -- 8.1% SECURITIES PURCHASED WITH PROCEEDS FROM SECURITIES LENDING -- 5.5% 6,033 Boston Global Investment Trust.................... $ 6,033 -------- PRINCIPAL MARKET AMOUNT VALUE(C) --------- -------- FINANCE -- 2.6% $ 430 ABN AMRO Joint Repurchase Agreement,.............. 1.00%, 11/03/03 (Note 2f) $ 430 1,132 BNP Paribas Joint Repurchase Agreement,........... 1.00%, 11/03/03 (Note 2f) 1,132 1,404 UBS Securities Joint Repurchase Agreement,........ 0.98%, 11/03/03 (Note 2f) 1,404 -------- 2,966 -------- Total short-term investments...................... (cost $8,999) $ 8,999 ======== Total investments in securities................... (cost $103,753)(b) $116,146 ========
(a) Presently non-income producing. (b) At October 31, 2003, the cost of securities for federal income tax purposes was $104,344 and the aggregate gross unrealized appreciation and depreciation based on that cost was: Unrealized appreciation......................... $12,466 Unrealized depreciation......................... (664) ------- Net unrealized appreciation..................... $11,802 =======
(c) See Note 2b of accompanying Notes to Financial Statements regarding valuation of securities. (d) Note: Percentage of investments as shown is the ratio of the total market value to total net assets. (e) Securities issued within terms of a private placement memorandum, exempt from registration under Section 144A of the Securities Act of 1933, as amended, and may be sold only to dealers in that program or to other "accredited investors". Pursuant to guidelines adopted by the Board of Directors, these issues are determined to be liquid. The aggregate value of these securities at October 31, 2003, was $1,331, which represents 1.21% of total net assets. (f) Security valued in good faith at fair value by, or under the direction of, the Funds' Board of Directors. The aggregate value of these securities as of October 31, 2003, was $47, which represents 0.04% of total net assets.
PERCENTAGE OF DIVERSIFICATION BY INDUSTRY NET ASSETS --------------------------- ------------- Basic Materials 7.9% Capital Goods 4.4% Consumer Cyclical 8.5% Consumer Staples 3.4% Energy 7.9% Finance and Insurance 22.8% Health Care 6.6% Services 9.2% Technology 23.0% Transportation 2.2% Utilities 1.1% Short Term Investments 8.1% ------ Total 105.1% ======
The accompanying notes are an integral part of these financial statements. 91 THE HARTFORD INTERNATIONAL OPPORTUNITIES FUND SCHEDULE OF INVESTMENTS -- (CONTINUED) OCTOBER 31, 2003 (000'S OMITTED) -------------------------------------------------------------------------------- FORWARD FOREIGN CURRENCY CONTRACTS OUTSTANDING AS OF OCTOBER 31, 2003
UNREALIZED CONTRACT DELIVERY APPRECIATION DESCRIPTION MARKET VALUE AMOUNT DATE (DEPRECIATION) ----------- ------------ -------- ---------- -------------- Australian Dollar (Buy) $ 4 $ 4 11/03/2003 $@@ Euro (Buy) 9 9 11/03/2003 @@ Swiss Francs (Buy) 274 275 11/04/2003 (1) Australian Dollar (Buy) 1 1 11/05/2003 @@ Euro (Buy) 4 4 11/05/2003 @@ Australian Dollar (Buy) 4 4 11/06/2003 @@ Hong Kong Dollar (Buy) 47 47 11/06/2003 @@ Japanese Yen (Buy) 543 547 11/06/2003 (4) Euro (Sell) 488 489 11/04/2003 1 --- $(4) === @@ Due to the presentation of the financial statements in thousands, the number of shares and/or dollars round to zero.
STATEMENT OF ASSETS AND LIABILITIES: ASSETS Investments in securities, at value; (cost $103,753) @ ...................................... $116,146 Foreign currency on deposit with custodian (cost $39).............................................. 39 Unrealized appreciation in forward foreign currency contracts......................................... 1 Receivables: Investment securities sold........................ 991 Fund shares sold.................................. 416 Dividends and interest............................ 204 Other assets........................................ 6 -------- Total assets........................................ 117,803 -------- LIABILITIES Unrealized depreciation on forward foreign currency contracts......................................... 5 Payables: Bank overdraft.................................... 5 Payable upon return of securities loaned (Note 2d)............................................. 6,033 Investment securities purchased................... 1,035 Fund shares redeemed.............................. 118 Payable for investment advisory and management fees (Note 3)................................... 78 Payable for distribution fees (Note 3)............ 8 Accrued Expenses.................................... 61 -------- Total liabilities................................... 7,343 -------- Net assets.......................................... $110,460 ======== @ Market value of securities on loan $5,696 SUMMARY OF NET ASSETS: Capital stock and paid-in-capital, par value $0.001 per share; 300,000 shares authorized; 11,608 shares outstanding................................ $156,250 Accumulated undistributed net investment income..... 68 Accumulated net realized loss on investments and foreign currency transactions..................... (58,261) Unrealized appreciation of investments in securities and the translations of assets and liabilities denominated in foreign currency................... 12,403 -------- Net assets.......................................... $110,460 ========
Class A Net asset value per share ($69,153 / 7,162 shares outstanding)...................................... $ 9.66 ------ Maximum offering price per share ($9.66 / 94.5%).... $10.22 ====== Class B Net asset value per share ($20,459 / 2,220 shares outstanding)...................................... $ 9.22 ====== Class C Net asset value per share ($14,790 / 1,615 shares outstanding)...................................... $ 9.16 ------ Maximum offering price per share ($9.16 / 99.0%).... $ 9.25 ====== Class Y Net asset value per share ($6,058 / 611 shares outstanding)...................................... $ 9.91 ======
The accompanying notes are an integral part of these financial statements. 92 THE HARTFORD INTERNATIONAL SMALL COMPANY FUND SCHEDULE OF INVESTMENTS OCTOBER 31, 2003 (000'S OMITTED) --------------------------------------------------------------------------------
MARKET SHARES VALUE(C) --------- -------- COMMON STOCK -- 91.6% AUSTRALIA -- 2.9% 70 Adsteam Marine Ltd.(a) (Transportation -- Deep Sea, Coastal, Great Lakes)...................... $ 89 10 Cochlear Ltd. (Electromedical Manufacturing)...... 212 55 Lend Lease Corp. Ltd. (Activities Related to Real Estate)......................................... 436 123 Mayne Group Ltd. (Pharmaceutical & Medicine Manufacturing).................................. 319 241 Oil Search Ltd. (Petro and Coal -- Oil & Gas Extraction)..................................... 176 ------- 1,232 ------- CHINA -- 1.7% 1,294 Beijing Capital International Airport Co. Ltd. Class H (Air Transportation Scheduled).......... 479 926 Guangshen Railway Co. Ltd. Class H (Transportation -- Rail)........................ 256 ------- 735 ------- DENMARK -- 1.7% 17 Carlsberg A/S Class B (Beverage Manufacturing).... 715 ------- FINLAND -- 3.6% 20 Orion-Yhtyma Oyj B Shares (Pharmaceutical & Medicine Manufacturing)......................... 387 16 Pohjola Group plc (Insurance Carriers)............ 354 30 Tietoenator Oyj (Computer Systems Design & Related Services)....................................... 793 ------- 1,534 ------- FRANCE -- 8.0% 19 April Group (Agencies, Brokerages, Other Insurance Activities)..................................... 302 5 Atos Origin(a) (Data Process, Hosting & Related Serv)........................................... 314 7 Cegedim S.A. (Management, Scientific, and Tech Consulting Svcs)................................ 395 112 Havas S.A. (Advertising & Related Services)....... 532 4 Ipsos (Advertising & Related Services)............ 321 43 NRJ Group (Radio and Television Broadcasting)..... 842 23 Remy Cointreau S.A. (Beverage Manufacturing)...... 706 ------- 3,412 ------- GERMANY -- 3.1% 36 Aixtron AG (Semiconductor, Electronic Compon)..... 214 18 ELMOS Semiconductor AG(a) (Semiconductor, Electronic Compon).............................. 233 13 Fielmann AG (Retail -- Other General Merchandise Stores)......................................... 478 9 Heidelberger Druckmaschinen AG (Machinery Manuf -- Commercial & Service Industry)......... 313 8 Jenoptik AG (Communications Equipment)............ 86 ------- 1,324 -------
MARKET SHARES VALUE(C) --------- -------- GREECE -- 3.1% 73 Aktor S.A. Technical Co. (Construction -- Other Heavy and Civil Engineering).................... $ 424 32 Bank of Piraeus (Commercial Banking).............. 295 12 Germanos S.A. (Retail -- Electronic Shopping and Mail-Order Houses).............................. 262 32 Stet Hellas Telecomm S.A. ADR (Communications Equipment)...................................... 358 ------- 1,339 ------- ITALY -- 4.6% 9 Amplifon S.p.A. (Retail -- Other Miscellaneous Store Retailers)................................ 220 139 Banca Popolare di Milano S.c.r.l. (International Trade Financing (Foreign Banks))................ 711 25 Brembo S.p.A. (Motor Vehicle Parts Manufacturing).................................. 162 72 Caltagirone Editore S.p.A. (Newspaper, Book and Periodical)..................................... 552 @@ Ericsson S.p.A. (Communications Equipment)........ 8 8 Tod's S.p.A. (Footwear Manufacturing)............. 307 ------- 1,960 ------- JAPAN -- 34.7% 29 Alpine Electronics, Inc. (Audio and Video Equipment)...................................... 372 10 Asatsu-DK, Inc. (Advertising & Related Services)....................................... 227 15 Avex, Inc. (Motion Picture & Video Industry)...... 289 2 Bellsystem 24, Inc. (Other Information Services)....................................... 489 18 C&S Co. Ltd. (Retail -- Other Miscellaneous Store Retailers)...................................... 336 25 FamilyMart Co. Ltd. (Retail -- Other Miscellaneous Store Retailers)................................ 533 7 Fujimi, Inc. (Nonmetallic Manuf -- Other)......... 244 18 Hitachi Medical Corp. (Medical Equipment & Supplies Manufacturing)......................... 210 135 Hokkaido Bank Ltd. (Consumer Lending)............. 190 155 Hokugin Financial Group, Inc. (International Trade Financing (Foreign Banks))...................... 244 27 Hokuto Corp. (Food Manufacturing -- Other)........ 367 26 House Foods Corp. (Food Manufacturing -- Other)... 281 37 INES Corp. (Data Process, Hosting & Related Serv)........................................... 321 38 Japan Securities Finance Co. Ltd. (Other Financial Investment Activities).......................... 210 151 Joyo Bank Ltd. (International Trade Financing (Foreign Banks))................................ 483 19 Kadokawa Holdings, Inc. (Newspaper, Book and Periodical)..................................... 561 28 Keihin Corp. (Retail -- Auto Parts, Accessories, and Tire Stores)................................ 283 39 Kirin Beverage Corp. (Beverage Manufacturing)..... 649 35 Komori Corp. (Machinery Manuf -- Commercial & Service Industry)............................... 432
The accompanying notes are an integral part of these financial statements. 93 THE HARTFORD INTERNATIONAL SMALL COMPANY FUND SCHEDULE OF INVESTMENTS -- (CONTINUED) OCTOBER 31, 2003 (000'S OMITTED) --------------------------------------------------------------------------------
MARKET SHARES VALUE(C) --------- -------- COMMON STOCK -- (CONTINUED) JAPAN -- (CONTINUED) 11 KOSE Corp. (Health and Personal Care Stores)...... $ 351 9 Milbon Co. Ltd. (Other Chemical and Preparation).................................... 203 10 Nagaileben Co. Ltd. (Apparel Manufacturing -- Cut and Sew Apparel)................................ 272 33 NEC System Integration & Construction Ltd. (Communications Equipment)...................... 249 84 Nippon Shinyaku Co. Ltd. (Pharmaceutical & Medicine Manufacturing)......................... 482 35 Okasan Holdings, Inc. (Securities, Commodities and Brokerage)...................................... 174 85 Okumura Corp. (Construction -- Other Heavy Construction)................................... 347 12 Otsuka Kagu Ltd. (Retail -- Home Furnishings Stores)......................................... 338 57 PanaHome Corp. (Construction -- Residential Building)....................................... 280 36 Sumitomo Forestry Co. Ltd. (Forest Nurseries and Gathering of Forest Products)................... 295 75 Suruga Bank Ltd. (Consumer Lending)............... 470 92 Taiheyo Cement Corp. (Nonmetallic Manuf -- Cement and Concrete Product)........................... 228 11 Taiyo Ink Manufacturing Co. Ltd. (Basic Chemical Manufacturing).................................. 402 35 Tanabe Seiyaku Co. Ltd. (Pharmaceutical & Medicine Manufacturing).................................. 256 103 The 77 Bank Ltd. (International Trade Financing (Foreign Banks))................................ 540 48 The Chiba Bank Ltd. (Consumer Lending)............ 207 103 The Kiyo Bank Ltd. (Commercial Banking)........... 200 81 The Shiga Bank Ltd. (International Trade Financing (Foreign Banks))................................ 311 16 The Tokyo Tomin Bank Ltd. (International Trade Financing (Foreign Banks))...................... 271 32 Tokyo Ohka Kogyo Co. Ltd. (Semiconductor, Electronic Compon).............................. 573 24 Towa Pharmaceutical Co. Ltd. (Pharmaceutical & Medicine Manufacturing)......................... 487 32 Tsuruha Co. Ltd. (Retail -- Other General Merchandise Stores)............................. 550 6 United Arrows Ltd. (Retail -- Clothing Stores).... 269 18 XEBIO Co. Ltd. (Retail -- Sporting Goods, Hobby, Musical Instrument)............................. 357 ------- 14,833 ------- MEXICO -- 1.1% 71 Grupo Financiero Banorte S.A. (Commercial Banking)........................................ 231 102 Kimberly-Clark de Mexico, S.A. (Paper (Converted) Product Manufacturing).......................... 246 ------- 477 -------
MARKET SHARES VALUE(C) --------- -------- NETHERLANDS -- 6.1% 25 CSM N.V. (Food -- Fruit, Vegetable Preserving, Specialty Food)................................. $ 509 81 Equant N.V.(a) (Data Process, Hosting & Related Serv)........................................... 714 34 Koninklijke Vendex KBB N.V. (Retail -- Other Miscellaneous Store Retailers).................. 412 45 Randstad Holding N.V. (Other Services -- Professional, Labor, Political Org.)............ 861 10 SNT Groep N.V.(a) (Management of Companies and Enterprises).................................... 146 ------- 2,642 ------- NEW ZEALAND -- 1.5% 183 Carter Hold Harvey Ltd. (Wood Product Manuf -- Engineered Wood)....................... 206 122 Warehouse Group Ltd. (Retail -- Other General Merchandise Stores)............................. 428 ------- 634 ------- PHILIPPINES -- 0.5% 15 Philippine Long Distance Telephone Co.(a) (Other Telecommunications)............................. 211 ------- SINGAPORE -- 3.3% 34 Fraser & Neave Ltd. (Beverage Manufacturing)...... 239 439 Keppel Land Ltd. (Lessors of Real Estate)......... 429 706 MobileOne (Asia) Ltd. (Wireless Telecommunications Carriers)....................................... 552 484 Singapore Post Ltd. (Postal Service).............. 186 ------- 1,406 ------- SOUTH KOREA -- 3.6% 2 Cheil Communications, Inc. (Advertising & Related Services)....................................... 194 25 KorAm Bank (Commercial Banking)................... 283 72 Korea Exchange Bank(a) (International Trade Financing (Foreign Banks))...................... 296 26 LG Corp. (Electrical Equip Manuf -- Component Other).......................................... 216 66 LG Telecom Ltd.(a) (Other Telecommunications)..... 204 62 Pusan Bank (Consumer Lending)..................... 335 ------- 1,528 ------- SPAIN -- 0.5% 42 Telefonica Publicidad e Informacion S.A. (Advertising & Related Services)................ 209 ------- SWEDEN -- 2.4% 22 Alfa Laval AB (Fabricated Metal Manuf-Boiler, Tank, Shipping Cont)............................ 295 51 Eniro AB (Newspaper, Book and Periodical)......... 407 13 JM AB (Construction -- Residential Building)...... 187 23 NCC AB Class B (Construction -- Nonresidential Building)....................................... 137 ------- 1,026 -------
The accompanying notes are an integral part of these financial statements. 94 --------------------------------------------------------------------------------
MARKET SHARES VALUE(C) --------- -------- COMMON STOCK -- (CONTINUED) SWITZERLAND -- 3.0% 8 Bachem Holding AG (Pharmaceutical & Medicine Manufacturing).................................. $ 392 32 Clariant AG (Pharmaceutical & Medicine Manufacturing).................................. 456 1 Lindt & Spruengli AG (Food Manufacturing -- Sugar & Confectionery Product)........................ 424 ------- 1,272 ------- UNITED KINGDOM -- 6.2% 39 Cambridge Antibody Technology Group plc(a) (Pharmaceutical & Medicine Manufacturing)....... 348 272 Emi Group plc (Sound Recording Industries)........ 807 62 FirstGroup plc (Transportation -- Rail)........... 317 102 Kesa Electricals plc (Retail -- Other General Merchandise Stores)............................. 421 268 Securicor plc (Public -- National Security & International Affairs).......................... 396 95 Singer & Friedlander Group plc (Other Financial Investment Activities).......................... 340 ------- 2,629 ------- Total common stock (cost $34,837).................................. $39,118 ======= SHARES --------- SHORT-TERM INVESTMENTS -- 21.8% SECURITIES PURCHASED WITH PROCEEDS FROM SECURITIES LENDING -- 10.3% 4,414 Navigator Prime Portfolio......................... $ 4,414 ------- PRINCIPAL AMOUNT --------- FINANCE -- 11.5% $ 711 ABN AMRO Joint Repurchase Agreement, 1.00%, 11/03/03 (Note 2f)....................... 711 1,872 BNP Paribas Joint Repurchase Agreement, 1.00%, 11/03/03 (Note 2f)....................... 1,872 2,324 UBS Securities Joint Repurchase Agreement, 0.98%, 11/03/03 (Note 2f)....................... 2,324 ------- 4,907 ------- Total short-term investments (cost $9,321)................................... $ 9,321 ======= Total investments in securities (cost $44,158)(b)............................... $48,439 =======
(a) Presently non-income producing. (b) At October 31, 2003, the cost of securities for federal income tax purposes is $44,244 and the aggregate gross unrealized appreciation and depreciation based on that cost was: Unrealized appreciation.......................... $4,409 Unrealized depreciation.......................... (214) ------ Net unrealized appreciation...................... $4,195 ======
(c) See Note 2b of accompanying Notes of Financial Statements regarding valuation of securities. (d) Note: Percentage of investments as shown is the ratio of the total market value to total net assets.
PERCENTAGE OF DIVERSIFICATION BY INDUSTRY NET ASSETS --------------------------- ------------- Basic Materials 4.3% Capital Goods 1.8% Consumer Cyclical 16.4% Consumer Staples 9.8% Energy 0.4% Finance and Insurance 17.1% Health Care 9.1% Services 21.2% Technology 8.8% Transportation 2.7% Short Term Investments 21.8% ----- Total 113.4% =====
FORWARD FOREIGN CURRENCY CONTRACTS OUTSTANDING AS OF OCTOBER 31, 2003
UNREALIZED MARKET CONTRACT DELIVERY APPRECIATION DESCRIPTION VALUE AMOUNT DATE (DEPRECIATION) ----------- ------ -------- ---------- -------------- Australian Dollar (Buy) $ 8 $ 8 11/05/2003 $ @@ Australian Dollar (Buy) 59 59 11/06/2003 @@ Swiss Francs (Buy) 104 104 11/05/2003 @@ Danish Krone (Buy) 33 33 11/05/2003 @@ Euro (Buy) 76 76 11/04/2003 @@ Euro (Buy) 530 528 11/05/2003 2 British Pounds (Buy) 47 47 11/03/2003 @@ British Pounds (Buy) 71 71 11/04/2003 @@ British Pounds (Buy) 169 168 11/05/2003 1 Japanese Yen (Buy) 988 995 11/06/2003 (7) Japanese Yen (Buy) 34 35 11/04/2003 (1) Mexican Peso (buy) 65 65 11/03/2003 @@ Mexican Peso (buy) 67 67 11/04/2003 @@ Hong Kong Dollar (Buy) 34 34 11/04/2003 @@ New Zealand Dollars (Buy) 31 31 11/05/2003 @@ Swedish Krona (Buy) 202 202 11/05/2003 @@ Singapore Dollars (Buy) 85 85 11/05/2003 @@ Euro (Sell) 21 21 11/04/2003 @@ Japanese Yen (Sell) 34 35 11/05/2003 1 ----- $ (4) -----
@@ Due to the presentation of the financial statements in thousands, the number or shares and/or dollars round to zero. The accompanying notes are an integral part of these financial statements. 95 THE HARTFORD INTERNATIONAL SMALL COMPANY FUND SCHEDULE OF INVESTMENTS -- (CONTINUED) OCTOBER 31, 2003 (000'S OMITTED) -------------------------------------------------------------------------------- STATEMENT OF ASSETS AND LIABILITIES: ASSETS Investments in securities, at value; (cost $44,158) @ ........................................ $48,439 Cash................................................. @@ Foreign currency on deposit with custodian (cost $2)................................................ 2 Unrealized appreciation in forward foreign currency contracts.......................................... 4 Receivables: Investment securities sold......................... 251 Fund shares sold................................... 1,312 Dividends and interest............................. 64 Other assets......................................... 48 ------- Total assets......................................... 50,120 ------- LIABILITIES Unrealized depreciation on forward foreign currency contracts.......................................... 8 Payables: Payable upon return of securities loaned (Note 2d).............................................. 4,414 Investment securities purchased.................... 2,895 Fund shares redeemed............................... 28 Payable for investment advisory and management fees (Note 3)......................................... 32 Payable for distribution fees (Note 3)............. 1 Accrued Expenses..................................... 27 ------- Total liabilities.................................... 7,405 ------- Net assets........................................... $42,715 ======= SUMMARY OF NET ASSETS: Capital stock and paid-in-capital, par value $0.001 per share; 300,000 shares authorized; 3,296 shares outstanding........................................ $35,458 Accumulated undistributed net investment income...... 117 Accumulated net realized gain on investments and foreign currency transactions...................... 2,853 Unrealized appreciation of investments in securities and the translations of assets and liabilities denominated in foreign currency.................... 4,287 ------- Net assets........................................... $42,715 ======= @ Market value of securities on loan $4,175.
Class A Net asset value per share ($12,320 / 953 shares outstanding)...................................... $12.93 ------ Maximum offering price per share ($12.93 / 94.5%)... $13.68 ====== Class B Net asset value per share ($2,237 / 174 shares outstanding)...................................... $12.82 ====== Class C Net asset value per share ($3,004 / 236 shares outstanding)...................................... $12.72 ------ Maximum offering price per share ($12.72 / 99.0%)... $12.85 ====== Class Y Net asset value per share ($25,154 / 1,933 shares outstanding)...................................... $13.02 ====== @@ Due to the presentation of the financial statements in thousands, the number or shares and/or dollars round to zero.
The accompanying notes are an integral part of these financial statements. 96 THE HARTFORD MIDCAP FUND SCHEDULE OF INVESTMENTS OCTOBER 31, 2003 (000'S OMITTED) --------------------------------------------------------------------------------
MARKET SHARES VALUE(C) --------- ---------- COMMON STOCK -- 96.2% BASIC MATERIALS -- 5.0% 1,865 Abitibi-Consolidated, Inc. ....................... $ 12,517 943 Pactiv Corp.(a)................................... 20,791 918 Precision Castparts Corp. ........................ 37,761 404 Rohm & Haas Co. (with rights)..................... 15,879 215 Sealed Air Corp.(a)............................... 11,466 1,437 Smurfit-Stone Container Corp. (with rights)(a).... 22,266 ---------- 120,680 ---------- CAPITAL GOODS -- 4.0% 436 AGCO Corp.(a)..................................... 7,844 251 Eaton Corp. (with rights)......................... 25,160 207 Empresa Brasileira de Aeronautica S.A. ADR........ 5,379 635 Parker-Hannifin Corp. (with rights)............... 32,346 2,432 Xerox Corp. (with rights)(a)...................... 25,540 ---------- 96,269 ---------- CONSUMER CYCLICAL -- 18.2% 3,011 American Tower Corp. Class A(a)................... 34,928 132 AutoZone, Inc.(a)................................. 12,695 369 Avery Dennison Corp. (with rights)................ 19,402 297 Blockbuster, Inc. Class A......................... 5,727 393 BorgWarner, Inc. ................................. 31,247 2,158 Burberry Group plc................................ 14,432 496 CDW Corp. ........................................ 29,785 427 Dollar Tree Stores, Inc.(a)....................... 16,288 275 Johnson Controls, Inc. ........................... 29,603 593 Lear Corp.(a)..................................... 34,447 309 Lennar Corp. Class A.............................. 28,345 742 Liz Claiborne, Inc. (with rights)................. 27,358 1,627 Mattel, Inc. ..................................... 31,506 791 Michaels Stores, Inc. ............................ 37,563 242 Mohawk Industries, Inc.(a)........................ 17,922 223 Nordstrom, Inc. .................................. 6,796 229 PACCAR, Inc. (with rights)........................ 18,113 1,146 PetsMart, Inc. ................................... 29,359 2,532 Rinker Group Ltd. ................................ 11,409 ---------- 436,925 ---------- CONSUMER STAPLES -- 0.8% 628 Constellation Brands, Inc. Class A(a)............. 19,707 ENERGY -- 4.8% 867 EOG Resources, Inc. (with rights)................. 36,547 1,029 GlobalSantaFe Corp. .............................. 23,158 473 Nabors Industries Ltd.(a)......................... 17,881 1,582 XTO Energy, Inc. (with rights).................... 37,439 ---------- 115,025 ---------- FINANCE AND INSURANCE -- 20.5% 336 Ambac Financial Group, Inc. ...................... 23,774 139 Anthem, Inc.(a)................................... 9,487 163 Astoria Financial Corp. .......................... 5,646 754 Bank of Hawaii Corp. ............................. 29,727 359 BlackRock, Inc. .................................. 18,450 614 Brown & Brown, Inc. (with rights)................. 18,693
MARKET SHARES VALUE(C) --------- ---------- FINANCE AND INSURANCE -- (CONTINUED) 646 Countrywide Financial Corp. ...................... $ 67,876 1,003 Equifax, Inc. .................................... 24,521 352 Everest Re Group Ltd. (with rights)............... 29,232 268 Golden West Financial Corp. ...................... 26,935 860 Hibernia Corp. Class A............................ 19,436 2,057 Host Marriott Corp. (REIT)(a)..................... 21,499 854 Hudson City Bancorp, Inc. ........................ 29,508 656 Investment Technology Group, Inc.(a).............. 13,034 510 IPC Holdings Ltd. ................................ 19,096 513 iStar Financial, Inc. ............................ 19,510 440 Legg Mason, Inc. ................................. 36,667 179 M&T Bank Corp. ................................... 16,771 1,712 Providian Financial Corp. (with rights)(a)........ 19,024 361 UnionBanCal Corp. ................................ 19,572 53 White Mountain Insurance Group Ltd. .............. 22,260 ---------- 490,718 ---------- HEALTH CARE -- 12.9% 508 Applera Corp. -- Celera Genomics Group(a)......... 6,798 299 Cephalon, Inc.(a)................................. 14,042 1,053 Edwards Lifesciences Corp.(a)..................... 30,531 263 Gilead Sciences, Inc.(a).......................... 14,327 711 Guidant Corp. .................................... 36,289 1,478 Health Management Associates, Inc. Class A........ 32,729 1,397 Human Genome Sciences, Inc. (with rights)(a)...... 19,431 411 IDEC Pharmaceuticals Corp.(a)..................... 14,431 1,187 IVAX Corp.(a)..................................... 22,860 629 McKesson Corp. ................................... 19,030 1,756 Millennium Pharmaceuticals, Inc. (with rights)(a)...................................... 27,952 686 Vertex Pharmaceuticals, Inc.(a)................... 9,005 885 Waters Corp. (with rights)(a)..................... 27,815 877 Watson Pharmaceuticals, Inc.(a)................... 34,453 ---------- 309,693 ---------- SERVICES -- 15.0% 620 Alliance Data Systems Corp.(a).................... 17,215 1,514 ARAMARK Corp. Class B(a).......................... 40,462 1,615 BISYS Group, Inc.(a).............................. 23,095 486 CheckFree Corp.(a)................................ 13,371 402 ChoicePoint, Inc.(a).............................. 14,079 621 Diebold, Inc. (with rights)....................... 35,451 215 Education Management Corp.(a)..................... 13,609 1,022 Exel plc.......................................... 13,155 796 Fluor Corp. ...................................... 29,527 317 GTECH Holdings Corp. ............................. 14,168 767 Lamar Advertising Co.(a).......................... 23,237 425 Manpower, Inc. ................................... 19,723 553 Moody's Corp. .................................... 31,963 1,399 PeopleSoft, Inc. (with rights)(a)................. 29,041 385 Republic Services, Inc. .......................... 8,961 216 Scripps (E.W.) Co. Class A........................ 20,054 352 Univision Communications, Inc. Class A(a)......... 11,954 ---------- 359,065 ----------
The accompanying notes are an integral part of these financial statements. 97 THE HARTFORD MIDCAP FUND SCHEDULE OF INVESTMENTS -- (CONTINUED) OCTOBER 31, 2003 (000'S OMITTED) --------------------------------------------------------------------------------
MARKET SHARES VALUE(C) --------- ---------- COMMON STOCK -- (CONTINUED) TECHNOLOGY -- 8.6% 590 Analog Devices, Inc. (with rights)(a)............. $ 26,141 1,875 ASML Holding N.V.(a).............................. 32,906 107 BEA Systems, Inc.(a).............................. 1,487 1,642 Citizens Communications Co. (with rights)(a)...... 20,439 179 Corning, Inc.(a).................................. 1,962 507 Network Appliance, Inc.(a)........................ 12,513 1,144 Nextel Communications, Inc. Class A(a)............ 27,687 28 Rockwell Collins, Inc. ........................... 774 1,124 Siebel Systems, Inc. (with rights)(a)............. 14,154 3,265 Solectron Corp. (with rights)(a).................. 18,085 254 Symantec Corp.(a)................................. 16,916 2,112 VeriSign, Inc. (with rights)(a)................... 33,516 ---------- 206,580 ---------- TRANSPORTATION -- 2.9% 2,088 AMR Corp.(a)...................................... 27,734 298 CNF, Inc. ........................................ 10,447 129 JetBlue Airways Corp.(a).......................... 7,423 479 Ryanair Holdings plc ADR(a)....................... 24,681 ---------- 70,285 ---------- UTILITIES -- 3.5% 814 Cinergy Corp. (with rights)....................... 29,556 688 Energy East Corp. ................................ 15,452 387 Pinnacle West Capital Corp. (with rights)......... 14,145 756 Wisconsin Energy Corp. ........................... 24,746 ---------- 83,899 ---------- Total common stock (cost $1,901,073)............................... $2,308,846 ========== SHARES --------- SHORT-TERM INVESTMENTS -- 9.2% SECURITIES PURCHASED WITH PROCEEDS FROM SECURITIES LENDING -- 5.1% 124,062 Boston Global Investment Trust.................... $ 124,062 ---------- PRINCIPAL MARKET AMOUNT VALUE(C) --------- ---------- FINANCE -- 4.1% $ 14,155 ABN AMRO Joint Repurchase Agreement, 1.00%, 11/03/03 (Note 2f)....................... $ 14,155 37,250 BNP Paribas Joint Repurchase Agreement, 1.00%, 11/03/03 (Note 2f)....................... 37,250 46,227 UBS Securities Joint Repurchase Agreement, 0.98%, 11/03/03 (Note 2f)....................... 46,227 ---------- 97,632 ---------- Total short-term investments (cost $221,694)...... $ 221,694 ========== Total investments in securities (cost $2,122,767)(b)............................ $2,530,540 ==========
(a) Presently non-income producing. (b) At October 31, 2003, the cost of securities for federal income tax purposes is $2,134,524 and the aggregate gross unrealized appreciation and depreciation based on that cost was: Unrealized appreciation........................ $433,062 Unrealized depreciation........................ (37,046) -------- Net unrealized appreciation.................... $396,016 ========
(c) See Note 2b of accompanying Notes of Financial Statements regarding valuation of securities. (d) Note: Percentage of investments as shown is the ratio of the total market value to total net assets. Market value of investments in foreign securities represents 4.77% of total net assets as of October 31, 2003. FORWARD FOREIGN CURRENCY CONTRACTS OUTSTANDING AS OF OCTOBER 31, 2003
CONTRACT DELIVERY UNREALIZED DESCRIPTION MARKET VALUE AMOUNT DATE APPRECIATION ----------- ------------ -------- -------- ------------ Australian Dollar (Buy) $340 $338 11/03/2003 $2 Australian Dollar (Buy) 99 99 11/05/2003 0 Australian Dollar (Buy) 378 376 11/06/2003 2 -- $4 ==
The accompanying notes are an integral part of these financial statements. 98 -------------------------------------------------------------------------------- STATEMENT OF ASSETS AND LIABILITIES: ASSETS Investments in securities, at value; (cost $2,122,767) @ .................................. $2,530,540 Cash.............................................. 1 Unrealized appreciation in forward foreign currency contracts.............................. 4 Receivables: Investment securities sold...................... 954 Fund shares sold................................ 4,529 Dividends and interest.......................... 1,092 Other assets...................................... 161 ---------- Total assets...................................... 2,537,281 ========== LIABILITIES Payables: Payable upon return of securities loaned (Note 2d)........................................... 124,062 Investment securities purchased................. 8,915 Fund shares redeemed............................ 2,097 Payable for investment advisory and management fees (Note 3)................................. 1,471 Payable for distribution fees (Note 3).......... 180 Accrued Expenses.................................. 689 ---------- Total liabilities................................. 137,414 ---------- Net assets........................................ $2,399,867 ========== @ Market value of securities on loan $119,803. SUMMARY OF NET ASSETS: Capital stock and paid-in-capital, par value $0.001 per share; 460,000 shares authorized; 118,475 shares outstanding...................... $2,126,631 Accumulated undistributed net investment income... (4) Accumulated net realized loss on investments...... (134,533) Unrealized appreciation of investments in securities...................................... 407,773 ---------- Net assets........................................ $2,399,867 ==========
Class A Net asset value per share ($1,413,021 / 68,673 shares outstanding)............................... $20.58 ------ Maximum offering price per share ($20.58 / 94.5%)... $21.78 ====== Class B Net asset value per share ($424,959 / 21,596 shares outstanding)...................................... $19.68 ====== Class C Net asset value per share ($477,891 / 24,245 shares outstanding)...................................... $19.71 ------ Maximum offering price per share ($19.71 / 99.0%)... $19.91 ====== Class Y Net asset value per share ($83,996 / 3,961 shares outstanding)...................................... $21.21 ======
The accompanying notes are an integral part of these financial statements. 99 THE HARTFORD MIDCAP VALUE FUND SCHEDULE OF INVESTMENTS OCTOBER 31, 2003 (000'S OMITTED) --------------------------------------------------------------------------------
MARKET SHARES VALUE(C) --------- -------- COMMON STOCK -- 95.6% BASIC MATERIALS -- 9.7% 158 Engelhard Corp. (with rights)..................... $ 4,519 43 Grupo IMSA S.A. de C.V. ADR....................... 598 542 IMC Global, Inc. (with rights).................... 3,786 86 Michelin (C.G.D.E.) Class B....................... 3,367 226 Pactiv Corp.(a)................................... 4,992 14 Pentair, Inc. .................................... 590 239 Smurfit-Stone Container Corp. (with rights)(a).... 3,698 151 Timken Co. ....................................... 2,529 -------- 24,079 -------- CAPITAL GOODS -- 8.8% 388 Axcelis Technologies, Inc.(a)..................... 4,108 75 Bombardier, Inc. Class B(e)....................... 338 603 Bombardier, Inc. Class B.......................... 2,708 50 Flowserve Corp.(a)................................ 1,031 93 IHC Caland N.V. .................................. 3,980 116 Teradyne, Inc. (with rights)(a)................... 2,645 134 Yankee Candle Co., Inc.(a)........................ 3,752 80 York International Corp. ......................... 3,195 -------- 21,757 -------- CONSUMER CYCLICAL -- 10.3% 46 BorgWarner, Inc. ................................. 3,645 48 CEC Entertainment, Inc.(a)........................ 2,367 276 Foot Locker, Inc. ................................ 4,942 19 Hughes Supply, Inc. (with rights)................. 715 24 M.D.C. Holdings, Inc. ............................ 1,621 78 Office Depot, Inc.(a)............................. 1,165 484 Rinker Group Ltd. ................................ 2,182 61 Ross Stores, Inc. ................................ 3,026 30 Toll Brothers, Inc.(a)............................ 1,102 82 United Stationers, Inc.(a)........................ 3,062 37 V.F. Corp. (with rights).......................... 1,575 -------- 25,402 -------- CONSUMER STAPLES -- 6.3% 153 Bunge Ltd. ....................................... 4,146 158 Constellation Brands, Inc. Class A(a)............. 4,960 122 Dean Foods Co.(a)................................. 3,685 146 Sensient Technologies Corp. ...................... 2,797 -------- 15,588 -------- ENERGY -- 6.2% 32 AGL Resources, Inc. .............................. 887 146 Cal Dive International, Inc.(a)................... 3,027 70 EOG Resources, Inc. (with rights)................. 2,933 47 Petro-Canada...................................... 1,905 53 Unocal Corp. (with rights)........................ 1,676 207 XTO Energy, Inc. (with rights).................... 4,907 -------- 15,335 -------- FINANCE AND INSURANCE -- 24.9% 71 ACE Ltd. ADR (with rights)........................ 2,549 102 Ambac Financial Group, Inc. ...................... 7,208
MARKET SHARES VALUE(C) --------- -------- FINANCE AND INSURANCE -- (CONTINUED) 17 Anthem, Inc.(a)................................... $ 1,184 52 Bank of Hawaii Corp. ............................. 2,065 140 CIT Group, Inc. .................................. 4,710 65 Comerica, Inc. (with rights)...................... 3,336 142 Converium Holding AG ADR.......................... 3,496 54 FirstMerit Corp. ................................. 1,402 12 Gallagher (Arthur J.) & Co. ...................... 347 208 Hibernia Corp. Class A............................ 4,687 67 Oxford Health Plans, Inc. ........................ 2,714 52 ProLogis.......................................... 1,539 80 Radian Group, Inc. ............................... 4,253 170 Reinsurance Group of America, Inc. ............... 6,779 55 RenaissanceRe Holdings Ltd. ADR................... 2,474 51 Rouse Co. ........................................ 2,202 55 St. Paul Companies, Inc. ......................... 2,105 93 UnionBanCal Corp. ................................ 5,011 155 United Rentals, Inc. (with rights)(a)............. 2,697 22 Webster Financial Corp. .......................... 979 -------- 61,737 -------- HEALTH CARE -- 3.0% 63 AmerisourceBergen Corp. (with rights)............. 3,588 14 Biovail Corp.(a).................................. 329 96 Health Net, Inc. (with rights)(a)................. 3,042 19 Triad Hospitals, Inc.(a).......................... 568 -------- 7,527 -------- SERVICES -- 6.7% 293 Bally Total Fitness Holding Corp.(a).............. 1,951 413 BearingPoint, Inc. (with rights)(a)............... 3,882 91 Penn National Gaming, Inc. (with rights)(a)....... 2,165 239 Republic Services, Inc. .......................... 5,548 429 UnitedGlobalCom, Inc. Class A(a).................. 3,035 -------- 16,581 -------- TECHNOLOGY -- 10.4% 77 AMETEK, Inc. ..................................... 3,627 263 Arrow Electronics, Inc.(a)........................ 5,611 64 DENTSPLY International, Inc. ..................... 2,833 277 Fairchild Semiconductor International, Inc.(a).... 6,265 115 Flextronics International Ltd.(a)................. 1,614 308 Vishay Intertechnology, Inc.(a)................... 5,780 -------- 25,730 -------- TRANSPORTATION -- 4.6% 24 Canadian National Railway Co. .................... 1,427 118 CNF, Inc. ........................................ 4,136 37 Continental Airlines, Inc. Class B (with rights)(a)...................................... 707 35 CSX Corp. (with rights)........................... 1,123 127 ExpressJet Holdings, Inc.(a)...................... 1,946 107 Werner Enterprises, Inc. ......................... 1,928 -------- 11,267 --------
The accompanying notes are an integral part of these financial statements. 100 --------------------------------------------------------------------------------
MARKET SHARES VALUE(C) --------- -------- COMMON STOCK -- 95.6% -- (CONTINUED) UTILITIES -- 4.7% 87 Cinergy Corp. (with rights)....................... $ 3,173 122 PPL Corp. ........................................ 4,858 158 TXU Corp. (with rights)........................... 3,599 -------- 11,630 -------- Total common stock (cost $205,850)................................. $236,633 ======== SHARES --------- SHORT-TERM INVESTMENTS -- 5.9% SECURITIES PURCHASED WITH PROCEEDS FROM SECURITIES LENDING -- 1.9% 4,572 Boston Global Investment Trust.................... $ 4,572 -------- PRINCIPAL AMOUNT --------- FINANCE -- 4.0% $1,445 ABN AMRO Joint Repurchase Agreement, 1.00%, 11/03/03 (Note 2f)....................... 1,445 3,803 BNP Paribas Joint Repurchase Agreement, 1.00%, 11/03/03 (Note 2f)....................... 3,803 4,719 UBS Securities Joint Repurchase Agreement, 0.98%, 11/03/03 (Note 2f)....................... 4,719 -------- 9,967 -------- Total short-term investments (cost $14,539).................................. $ 14,539 ======== Total investments in securities (cost $220,389)(b).............................. $251,172 ========
(a) Presently non-income producing. (b) At October 31, 2003, the cost of securities for federal income tax purposes is $220,807 and the aggregate gross unrealized appreciation and depreciation based on that cost was: Unrealized appreciation......................... $36,990 Unrealized depreciation......................... (6,627) ------- Net unrealized appreciation..................... $30,363 =======
(c) See Note 2b of accompanying Notes of Financial Statements regarding valuation of securities. (d) Note: Percentage of investments as shown is the ratio of the total market value to total net assets. Market value of investments in foreign securities represents 8.21% of total net assets as of October 31, 2003. (e) Security sold within the terms of a private placement memorandum, exempt from registration under Section 144A of the Securities Act of 1933, as amended, and may be sold only to dealers in that program or to other "accredited investors." Pursuant to guidelines adopted by the Board of Directors, this issue is deemed to be liquid. The aggregate value of this security at October 31, 2003, was $338, which represents 0.14% of total net assets. FORWARD FOREIGN CURRENCY CONTRACTS OUTSTANDING AS OF OCTOBER 31, 2003
UNREALIZED CONTRACT DELIVERY APPRECIATION DESCRIPTION MARKET VALUE AMOUNT DATE (DEPRECIATION) ----------- ------------ -------- --------- -------------- Australian Dollar (Buy) $114 $114 11/03/2003 $@@ Australian Dollar (Buy) 33 33 11/05/2003 @@ Australian Dollar (Buy) 127 126 11/06/2003 1 --- $ 1 === @@ Due to the presentation of the financial statements in thousands, the number or shares and/or dollars round to zero.
The accompanying notes are an integral part of these financial statements. 101 THE HARTFORD MIDCAP VALUE FUND SCHEDULE OF INVESTMENTS -- (CONTINUED) OCTOBER 31, 2003 (000'S OMITTED) -------------------------------------------------------------------------------- STATEMENT OF ASSETS AND LIABILITIES: ASSETS Investments in securities, at value; (cost $220,389) @ ...................................... $251,172 Cash................................................ @@ Unrealized appreciation in forward foreign currency contracts......................................... 1 Receivables: Investment securities sold........................ 2,245 Fund shares sold.................................. 3,068 Dividends and interest............................ 114 Other assets........................................ 57 -------- Total assets........................................ 256,657 ======== LIABILITIES Payables: Payable upon return of securities loaned (Note 2).............................................. 4,572 Investment securities purchased................... 4,081 Fund shares redeemed.............................. 131 Payable for investment advisory and management fees (Note 3)................................... 169 Payable for distribution fees (Note 3)............ 19 Accrued Expenses.................................... 69 -------- Total liabilities................................... 9,041 -------- Net assets.......................................... $247,616 ======== @ Market value of securities on loan $4,527. SUMMARY OF NET ASSETS: Capital stock and paid-in-capital, par value $0.001 per share; 300,000 shares authorized; 22,018 shares outstanding................................ $217,728 Accumulated undistributed net investment income..... (1) Accumulated net realized loss on investments and foreign currency transactions..................... (894) Unrealized appreciation of investments in securities and the translations of assets and liabilities denominated in foreign currency................... 30,783 -------- Net assets.......................................... $247,616 ========
Class A Net asset value per share ($155,614 / 13,749 shares outstanding)........................................ $11.32 ------ Maximum offering price per share ($11.32 / 94.5%)... $11.98 ====== Class B Net asset value per share ($42,407 / 3,812 shares outstanding)........................................ $11.12 ====== Class C Net asset value per share ($49,566 / 4,454 shares outstanding)........................................ $11.13 ------ Maximum offering price per share ($11.13 / 99.0%)... $11.24 ====== Class Y Net asset value per share ($29 / 3 shares outstanding)........................................ $11.46 ====== @@ Due to the presentation of the financial statements in thousands, the number of shares and/or dollars round to zero.
The accompanying notes are an integral part of these financial statements. 102 THE HARTFORD MONEY MARKET FUND SCHEDULE OF INVESTMENTS OCTOBER 31, 2003 (000'S OMITTED) --------------------------------------------------------------------------------
STANDARD AND POOR'S PRINCIPAL RATING MARKET AMOUNT YIELD (UNAUDITED) VALUE(A) --------- ----- ----------- -------- BASIC MATERIALS -- 2.9% $10,000 Dupont (EI) De Nemours & Co. 12/05/2003...................................... 1.08% A1 $ 9,990 -------- CONSUMER CYCLICAL -- 1.7% 3,000 7-Eleven, Inc. 11/18/2003...................................... 1.10% A1 2,998 3,000 7-Eleven, Inc. 11/25/2003...................................... 1.10% A1 2,998 -------- Total Consumer Cyclical........................... $ 5,996 -------- CONSUMER STAPLES -- 5.6% 3,200 Archer Daniels Midland Co. 11/18/2003...................................... 1.07% A1 3,199 3,000 Archer Daniels Midland Co. 11/25/2003...................................... 1.13% A1 2,998 5,000 Cargill, Inc. 01/14/2004(d)(e)................................ 1.16% A1 5,000 5,000 Sara Lee Co. 12/09/2003...................................... 1.06% A1 4,994 3,000 Sara Lee Co. 12/15/2003...................................... 1.09% A1 2,996 -------- Total Consumer Staples............................ $ 19,187 -------- FINANCE -- 85.8% 8,500 Alliance & Leicester plc 12/05/2003...................................... 1.10% A1 8,491 8,500 American Express Credit Corp. 11/04/2003...................................... 1.05% A1 8,499 3,905 American General Finance Corp. 11/01/2003...................................... 1.18% A1 3,905 7,500 American General Finance Corp. 08/06/2004(d)................................... 1.31% A1 7,512 6,500 American Honda Finance Corp. 10/22/2004(d)(e)................................ 1.12% A1 6,500 2,039 Banc One Joint Repurchase Agreement (Note 2f) 11/03/2003...................................... 0.97% A1 2,039 3,000 Bank One Corp. 02/20/2004(d)................................... 1.41% A1 3,003 1,500 Bear Stearns Co., Inc. 06/01/2004(d)................................... 1.39% A1 1,502 5,000 Bear Stearns Co., Inc. Ser B 02/12/2004(d)................................... 1.27% A1 5,002
STANDARD AND POOR'S PRINCIPAL RATING MARKET AMOUNT YIELD (UNAUDITED) VALUE(A) --------- ----- ----------- -------- FINANCE -- (CONTINUED) $ 1,500 Bear Stearns Co., Inc. Ser B 09/21/2004(d)................................... 1.53% A1 $ 1,505 3,220 BNP Paribas Joint Repurchase Agreement (Note 2f) 11/03/2003...................................... 0.99% A1 3,220 7,000 Bradford & Bingley plc 12/08/2003...................................... 1.09% A1 6,992 3,000 Britannia Building Society 12/15/2003...................................... 1.09% A1 2,996 3,000 Britannia Building Society 12/18/2003...................................... 1.09% A1 2,996 4,000 Britannia Building Society 12/17/2003...................................... 1.09% A1 3,994 7,000 Caterpillar Financial Services Corp. 08/02/2004(d)................................... 1.27% A1 7,011 8,500 Corporate Asset Funding Co., Inc. 12/10/2003...................................... 1.07% A1 8,491 2,000 FHLMC 12/22/2003...................................... 1.06% A1 1,997 5,000 FHLMC 08/27/2004...................................... 1.25% A1 5,000 8,500 FHLMC 11/03/2004...................................... 1.40% A1 8,500 9,000 FleetBoston Financial Corp. 02/19/2004(d)................................... 1.38% A1 9,006 2,000 FNMA 12/03/2003...................................... 1.05% A1 1,998 8,500 FNMA 11/15/2004...................................... 1.43% A1 8,500 5,000 FNMA 09/03/2004...................................... 1.45% A1 5,000 6,000 General Electric Capital Corp. 09/15/2004...................................... 1.27% A1 6,291 4,625 General Electric Capital Corp. Ser A(d) 01/28/2004............................. 1.12% A1+ 4,626 8,750 Goldman Sachs Group, Inc. 10/25/2004(d)................................... 1.11% A1 8,750 9,000 Household Finance Corp. 11/13/2003...................................... 1.14% A1 8,997 10,000 J.P. Morgan Chase & Co. 02/05/2004(d)................................... 1.26% A1 10,004
The accompanying notes are an integral part of this financial statement. 103 THE HARTFORD MONEY MARKET FUND SCHEDULE OF INVESTMENTS -- (CONTINUED) OCTOBER 31, 2003 (UNAUDITED) (000'S OMITTED) --------------------------------------------------------------------------------
STANDARD AND POOR'S PRINCIPAL RATING MARKET AMOUNT YIELD (UNAUDITED) VALUE(A) --------- ----- ----------- -------- FINANCE -- (CONTINUED) $10,000 Key Bank N.A. 03/01/2004(d)................................... 1.27% A1 $ 10,005 5,000 KFW International Finance, Inc. 12/17/2003...................................... 1.08% A1 4,993 5,100 Lehman Brothers Holdings, Inc. 04/01/2004...................................... 1.31% A1 5,212 3,500 Merrill Lynch & Co., Inc. 08/09/2004(d)................................... 1.34% A1 3,506 3,000 Merrill Lynch & Co., Inc. 06/11/2004(d)................................... 1.39% A1 3,006 10,000 Morgan Stanley Dean Witter & Co. 03/19/2004(d)................................... 1.30% A1 10,008 5,000 Nationwide Building Society 07/23/2004(d)(e)................................ 1.14% A1 5,000 7,500 Nordea North America, Inc. 11/21/2003...................................... 1.08% A1 7,495 3,000 Nordea North America, Inc. 12/29/2003...................................... 1.11% A1 2,994 9,000 Northern Rock plc, Inc. 01/16/2004(d)(e)................................ 1.15% A1 9,000 10,000 Old Line Funding Corp. 12/02/2003...................................... 1.07% A1 9,991 10,000 Preferred Receivables Funding Corp. 12/22/2003...................................... 1.08% A1 9,985 8,000 Salomon Smith Barney Holdings, Inc. 06/17/2004(d)................................... 1.26% A1+ 8,008 2,000 Salomon Smith Barney Holdings, Inc. 11/17/2003(d)................................... 1.37% A1+ 2,000 3,000 Spintab, Inc. 12/03/2003...................................... 1.10% A1 2,997 10,000 State Street Corp. 11/03/2003...................................... 1.05% A1 9,999 1,500 Toyota Motor Credit Corp. 11/13/2003...................................... 1.19% A1+ 1,502
STANDARD AND POOR'S PRINCIPAL RATING MARKET AMOUNT YIELD (UNAUDITED) VALUE(A) --------- ----- ----------- -------- FINANCE -- (CONTINUED) $10,000 Toyota Motor Credit Corp. 11/24/2003(d)................................... 1.07% A1+ $ 10,000 3,220 UBS Warburg Joint Repurchase Agreement (Note 2f) 11/03/2003...................................... 0.98% A1 3,220 8,000 Washington Mutual Bank N.A. 07/29/2004(d)................................... 1.16% A1 8,000 2,000 Wells Fargo Bank N.A. 11/24/2003(d)................................... 1.06% A1+ 2,000 5,000 Wells Fargo Bank N.A. 01/14/2004(d)................................... 1.06% A1+ 5,000 -------- Total Finance..................................... $296,248 -------- HEALTH CARE -- 1.7% 6,000 Wyeth 11/20/2003...................................... 1.11% A1 5,997 -------- TECHNOLOGY -- 2.5% 8,750 International Business Machines, Inc. 09/27/2004(d)................................... 1.26% A1 8,764 -------- Total investments in securities (cost $346,182)(b).............................. $346,182 ========
(a) See Note 2b of accompanying Notes of Financial Statements regarding valuation of securities. (b) Also represents cost for federal income tax purposes. (c) Note: Percentage of investments as shown is the ratio of the total market value to total net assets. (d) Variable Rate Securities; the yield reported is the rate in effect as of October 31, 2003. (e) Securities sold within the terms of a private placement memorandum, exempt from registrations under Section 144A of the Securities Act of 1933, as amended, and may be sold only to dealers in that program or to other "accredited investors". Pursuant to guidelines adopted by the Board of Directors, these issues are deemed to be liquid. The aggregate value of these securities at October 31, 2003, was $25,500, which represents 7.39% of total net assets. The accompanying notes are an integral part of this financial statement. 104 -------------------------------------------------------------------------------- STATEMENT OF ASSETS AND LIABILITIES: ASSETS Investments in securities, at amortized cost........ $346,182 Receivables: Fund shares sold.................................. 1,508 Dividends and interest............................ 468 Other assets........................................ 99 -------- Total assets........................................ 348,257 -------- LIABILITIES Payables: Fund shares redeemed.............................. 2,887 Payable for investment advisory and management fees (Note 3)................................... 150 Payable for distribution fees (Note 3)............ 24 Accrued Expenses.................................... 148 -------- Total liabilities................................... 3,209 -------- Net assets.......................................... $345,048 ======== SUMMARY OF NET ASSETS: Capital stock and paid-in-capital, par value $0.001 per share; 2,700,000 shares authorized; 345,048 shares outstanding;............................... $345,048 -------- Net assets.......................................... $345,048 ========
Class A $246,199/246,199 Net asset value per share (shares outstanding)....... $1.00 ===== Class B $67,732/67,732 Net asset value per share (shares outstanding)....... $1.00 ===== Class C $29,955/29,955 Net asset value per share (shares outstanding)....... $1.00 ----- Maximum offering price per share ($1.00 / 99%)....... $1.01 ===== Class Y $1,162/1,162 Net asset value per share (shares outstanding)....... $1.00 =====
The accompanying notes are an integral part of this financial statement. 105 THE HARTFORD SHORT DURATION FUND SCHEDULE OF INVESTMENTS OCTOBER 31, 2003 (000'S OMITTED) --------------------------------------------------------------------------------
STANDARD AND POOR'S PRINCIPAL RATING MARKET AMOUNT (UNAUDITED) VALUE(B) --------- ----------- -------- ASSET BACKED AND COMMERCIAL -- 4.0% MORTGAGE SECURITIES FINANCE -- 4.0% $ 100 AmeriCredit Automobile Receivables Trust, 5.81%, Ser 2001-1 Class B 05/06/2006...................................... AA $ 103 280 AQ Finance CEB Trust, 6.12%, Ser 2003-CE1A 08/25/2033(d)(f)................................ Baa2* 274 200 CS First Boston Mortgage Securities Corp., 2.52%, Ser 2002-TFLA Class D 11/18/2012(d)(f).......... A 200 300 DLJ Mortgage Acceptance Corp., 7.50%, Ser 1995-CF2 Class B1 12/17/2027(f).......................... AAA 300 150 Ford Credit Auto Owner Trust, 4.29%, Ser 2003-A Class C 11/15/2007.............................. BBB 151 43 Green Tree Financial Corp., 7.30%, Ser 1995-9 Class A6 01/15/2026............................. AAA 45 2,762 LB-UBS Commercial Mortgage Trust PAC I/O, 3.691%, 12/15/2036(e)(f)................................ AAA 177 88 LB-UBS Commercial Mortgage Trust, 3.17%, 12/15/2026...................................... AAA 89 82 Merrill Lynch Mortgage Investors, Inc., 2.12%, Ser 2000-FF1 Class M2 03/01/2031(d)................. A 83 81 Morgan Stanley Dean Witter Capital I, 4.09%, Ser 2002-IQ2 Class A1 12/15/2035.................... AAA 83 98 Morgan Stanley Dean Witter Capital I, 4.59%, Ser 2002-HQ Class A1 04/15/2034..................... AAA 101 472 Morgan Stanley Dean Witter Capital I, 5.38%, Ser 2002-TOP7 Class A1 01/15/2039................... Aaa* 500 300 Navistar Financial Corp. Owner Trust, 3.08%, Ser 2003-A Class B 11/15/2009....................... A 299 97 Soundview Home Equity Loan Trust, Inc., 8.64%, Ser 2000-1 Class M1 05/25/2030...................... AA 106 115 Wachovia Bank Commercial Mortgage Trust, 4.539%, Ser 2002-C1 Class A1 04/15/2034................. AAA 120
STANDARD AND POOR'S PRINCIPAL RATING MARKET AMOUNT (UNAUDITED) VALUE(B) --------- ----------- -------- MORTGAGE SECURITIES FINANCE -- (CONTINUED) $ 300 WFS Financial Owner Trust, 3.05%, Ser 2003-2 Class C 12/20/2010.................................... A $ 304 ------- Total asset backed and commercial mortgage securities (cost $2,945)................................... 2,935 ======= CORPORATE BONDS: INVESTMENT GRADE -- 64.1% BASIC MATERIALS -- 4.7% 300 BOC Group, Inc., 7.45%, 06/15/2006(f)............................ A 328 250 Carlisle Companies, Inc., 6.70%, 05/15/2008............................... BBB 253 200 Dow Chemical Co., 7.00%, 08/15/2005............................... A-- 214 100 Falconbridge Ltd., 7.375%, 09/01/2005.............................. BBB-- 107 125 ICI North America, 8.875%, 11/15/2006.............................. BBB 145 100 International Flavors & Fragrances, Inc., 6.45%, 05/15/2006............................... BBB+ 109 200 International Paper Co., 3.80%, 04/01/2008............................... BBB 198 350 International Paper Co., 8.125%, 07/08/2005.............................. BBB 383 120 Lafarge North America, Inc., 6.375%, 07/15/2005.............................. BBB 128 100 Pactiv Corp., 8.00%, 04/15/2007............................... BBB 113 50 Phelps Dodge Corp., 6.375%, 11/01/2004.............................. BBB-- 51 130 Placer Dome, Inc., 7.125%, 06/15/2007.............................. BBB+ 144 370 Potash Corp. of Saskatchewan, Inc., 7.125%, 06/15/2007.............................. BBB+ 407 200 Temple-Inland, Inc., 7.25%, 09/15/2004............................... BBB 207 300 Westvaco Corp., 8.40%, 06/01/2007............................... BBB 345 300 Worthington Industries, Inc., 7.125%, 05/15/2006.............................. BBB 324 ------- 3,456 ------- CAPITAL GOODS -- 2.2% 160 Black & Decker Corp., 7.00%, 02/01/2006............................... BBB 176
The accompanying notes are an integral part of this financial statement. 106 --------------------------------------------------------------------------------
STANDARD AND POOR'S PRINCIPAL RATING MARKET AMOUNT (UNAUDITED) VALUE(B) --------- ----------- -------- CORPORATE BONDS: INVESTMENT GRADE -- (CONTINUED) CAPITAL GOODS -- (CONTINUED) $ 250 Ingersoll-Rand Co., 6.25%, 05/15/2006............................... BBB+ $ 272 450 International Game Technology, 7.875%, 05/15/2004.............................. BBB 464 250 McDonnell Douglas Corp., 6.875%, 11/01/2006.............................. A 272 100 Rockwell International Corp., 6.625%, 06/01/2005.............................. A 107 300 Textron, Inc., 6.625%, 11/15/2007.............................. A-- 325 ------- 1,616 ------- CONSUMER CYCLICAL -- 7.2% 125 Albertson's, Inc., 6.55%, 08/01/2004............................... BBB 129 250 American Stores Co., 7.40%, 05/15/2005............................... BBB 268 500 Centex Corp., 4.75%, 01/15/2008............................... BBB 514 100 DaimlerChrysler N.A. Holding Corp., 4.05%, 06/04/2008............................... BBB 97 500 DaimlerChrysler N.A. Holding Corp., 7.75%, 06/15/2005............................... BBB 539 300 Federated Department Stores, Inc., 6.625%, 09/01/2008.............................. BBB+ 333 75 Jones Apparel Group, Inc., 7.50%, 06/15/2004............................... BBB 77 300 Kroger Co., 7.80%, 08/15/2007............................... BBB 345 150 Kroger Co., 8.15%, 07/15/2006............................... BBB 169 370 Masco Corp., 6.75%, 03/15/2006............................... BBB+ 405 250 May Department Stores Co., 5.95%, 11/01/2008............................... BBB+ 271 100 May Department Stores Co., 6.875%, 11/01/2005.............................. BBB+ 108 100 Mohawk Industries, Inc., 6.50%, 04/15/2007........ BBB 110 350 Newell Rubbermaid Inc., 6.60%, 11/15/2006............................... BBB+ 387 150 Newell Rubbermaid, Inc., 6.00%, 03/15/2007............................... BBB+ 163 250 Nine West Group, Inc., 8.375%, Ser B 08/15/2005........................ BBB 272 300 PHH Corp., 6.00%, 03/01/2008............................... BBB+ 321 300 Philips Electronics N.V., 8.375%, 09/15/2006.............................. BBB+ 342
STANDARD AND POOR'S PRINCIPAL RATING MARKET AMOUNT (UNAUDITED) VALUE(B) --------- ----------- -------- CONSUMER CYCLICAL -- (CONTINUED) $ 320 Pulte Corp, 7.30%, 10/24/2005............................... BBB-- $ 335 100 Safeway, Inc., 3.80%, 08/15/2005............................... BBB 102 ------- 5,287 ------- CONSUMER STAPLES -- 2.7% 300 Cadbury Schweppes Finance, 5.00%, 06/26/2007............................... BBB 314 250 ConAgra Foods, Inc., 7.50%, 09/15/2005............................... BBB+ 273 90 ConAgra Foods, Inc., 9.875%, 11/15/2005.............................. BBB+ 103 300 Dial Corp., 7.00%, 08/15/2006............................... BBB-- 332 300 General Mills, Inc., 2.625%, 10/24/2006.............................. BBB+ 298 150 Ralcorp Holdings, Inc., 8.75%, 09/15/2004............................... BBB+ 159 150 Tyson Foods, Inc., 6.625%, 10/17/2005.............................. BBB 157 350 Weyerhaeuser Co., 5.50%, 03/15/2005............................... BBB 365 ------- 2,001 ------- ENERGY -- 4.7% 100 Baker Hughes, Inc., 8.00%, 05/15/2004............................... A-- 103 50 Consolidated Natural Gas Co., 5.375%, Ser B 11/01/2006........................ BBB+ 53 325 Consumers Energy Co., 6.25%, 09/15/2006............................... BBB-- 354 250 Kerr-McGee Corp., 5.375%, 4/15/2005............................... BBB 260 150 Louis Dreyfus Natural Gas Corp., 6.875%, 12/01/2007.............................. BBB+ 166 150 Ocean Energy, Inc., 7.625% Ser B 07/01/2005......................... BBB-- 164 400 Petroleos Mexicanos, 8.85%, 09/15/2007............................... BBB-- 459 350 Repsol International Finance B.V., 7.45%, 07/15/2005............................... BBB 379 300 Transocean, Inc., 6.75%, 04/15/2005............................... A-- 319 50 Ultramar Diamond Shamrock Corp., 8.00%, Ser A 03/15/2005......................... BBB 53 300 Union Oil Co. of California, 9.125%, 02/15/2006.............................. BBB+ 344
The accompanying notes are an integral part of this financial statement. 107 THE HARTFORD SHORT DURATION FUND SCHEDULE OF INVESTMENTS -- (CONTINUED) OCTOBER 31, 2003 (000'S OMITTED) --------------------------------------------------------------------------------
STANDARD AND POOR'S PRINCIPAL RATING MARKET AMOUNT (UNAUDITED) VALUE(B) --------- ----------- -------- CORPORATE BONDS: INVESTMENT GRADE -- (CONTINUED) ENERGY -- (CONTINUED) $ 300 Union Pacific Resources Group, Inc., 6.50%, 05/15/2005............................... BBB+ $ 320 451 Valero Energy Corp., 6.125%, 04/15/2007.............................. BBB 493 ------- 3,467 ------- FINANCE -- 18.1% 300 ACE INA Holdings, Inc., 8.30%, 08/15/2006............................... BBB+ 341 451 Aetna, Inc., 7.375%, 03/01/2006.............................. BBB 498 130 American General Finance Corp., 5.875%, 12/15/2005.............................. A+ 139 100 American General Finance Corp., 5.91%, 06/12/2006............................... A+ 108 230 Aon Corp., 8.65%, 05/15/2005............................... A-- 251 400 Avalon Properties, Inc., 6.875%, 12/15/2007.............................. BBB+ 446 100 AXA Financial, Inc., 9.00%, 12/15/2004............................... A 107 100 Banca Commerciale Italiana, 8.25%, 07/15/2007............................... BBB+ 110 150 Banesto Finance Ltd., 7.50%, 03/25/2007............................... A-- 168 250 Bank of Boston Corp., 6.625%, 12/01/2005.............................. A-- 272 200 BankAmerica Corp., 6.75%, 09/15/2005............................... A 217 89 Bankers Trust Corp., 7.125%, 03/15/2006.............................. A 98 290 BBV International Finance, 6.875%, 07/01/2005.............................. A+ 310 100 Bear Stearns Co., Inc., 7.625%, 02/01/2005.............................. A 107 200 Bombardier Capital, Inc., 7.50%, 08/15/2004(f)............................ BBB-- 208 100 Capital One Bank, 6.875%, 02/01/2006.............................. BBB-- 109 400 Capital One Bank, 8.25%, 06/15/2005............................... BBB-- 435 200 Chase Commercial Mortgage Securities Corp., 6.90%, Ser 1996-2 Class A2 11/19/2028........... AAA 217 300 Chase Funding Mortgage Loan Asset-Backed, 2.342%, CMO Class IA3 04/25/2024................ AAA 295 133 Chase Manhattan Corp., 6.00%, 11/01/2005............................... A 143
STANDARD AND POOR'S PRINCIPAL RATING MARKET AMOUNT (UNAUDITED) VALUE(B) --------- ----------- -------- FINANCE -- (CONTINUED) $ 50 CIGNA Corp., 8.25%, 01/01/2007............................... BBB $ 56 250 Countrywide Funding Corp., 6.875%, 09/15/2005.............................. A 270 250 Credit Suisse First Boston USA, Inc., 5.875%, 08/01/2006.............................. A+ 270 220 Credit Suisse First Boston USA, Inc., 6.50%, 05/01/2008(f)............................ A 243 300 Equifax, Inc., 4.95%, 11/01/2007............................... A-- 311 200 Equitable Life Assurance, 6.95%, 12/01/2005(f)............................ A 218 300 Equity Residential Properties Trust, 7.25%, 06/15/2005............................... BBB+ 323 100 ERAC USA Finance Co., 6.625%, 02/15/2005(f)........................... BBB+ 105 225 ERAC USA Finance Co., 8.25%, 05/01/2005(f)............................ BBB+ 244 700 Ford Motor Credit Co., 6.875%, 02/01/2006.............................. BBB 733 100 Gables Realty L.P., 6.80%, 03/15/2005............................... BBB 105 100 General Motors Acceptance Corp., 4.50%, 07/15/2006............................... BBB 102 150 General Motors Acceptance Corp., 6.125%, 02/01/2007.............................. BBB 158 600 General Motors Acceptance Corp., 7.50%, 07/15/2005............................... BBB 642 100 Goldman Sachs Group, Inc., 7.50%, 01/28/2005............................... A+ 107 150 Household Finance Corp., 5.75%, 01/30/2007............................... A 162 50 Household Finance Corp., 7.65%, 05/15/2007............................... A 56 100 Household Finance Corp., Floating 05/28/2004 (d)......................... A 100 200 International Lease Finance Corp., 2.95%, 05/23/2006............................... A1* 201 100 International Lease Finance Corp., 5.95%, 06/06/2005............................... AA-- 106 150 J.P. Morgan Chase & Co., 5.625%, 08/15/2006.............................. A+ 161 100 Key Bank N.A., Inc., 7.125%, 08/15/2006.............................. A-- 112 150 Lehman Brothers Holdings, Inc., 8.75%, 03/15/2005............................... A 163 120 Lincoln National Corp., 5.25%, 06/15/2007............................... A-- 127
The accompanying notes are an integral part of this financial statement. 108 --------------------------------------------------------------------------------
STANDARD AND POOR'S PRINCIPAL RATING MARKET AMOUNT (UNAUDITED) VALUE(B) --------- ----------- -------- CORPORATE BONDS: INVESTMENT GRADE -- (CONTINUED) FINANCE -- (CONTINUED) $ 293 MBNA America Bank N.A., 6.50%, 06/20/2006............................... BBB+ $ 319 148 MBNA America Bank N.A., 6.75%, 03/15/2008 (f)........................... BBB 165 300 Merrill Lynch & Co., Inc., 7.00%, 04/27/2008............................... A+ 341 150 Merrill Lynch & Co., Inc., 8.00%, 06/01/2007............................... A+ 171 150 Morgan Stanley Dean Witter & Co., 7.75%, 06/15/2005............................... A+ 164 351 Nationslink Funding Corp., 6.00%, Ser 1998-2 Class A1 08/20/2030........... AAA 371 250 PNC Funding Corp., 5.75%, 08/01/2006............................... A-- 269 100 Prudential Insurance Co. of America, 6.375%, 07/23/2006 (f).......................... A+ 110 198 Residential Asset Securities Corp., 7.505%, Ser 1999-KS3 Class AI7 10/25/2030....... AAA 209 200 Salomon Smith Barney, 6.25%, 06/15/2005............................... AA-- 213 200 Simon Property Group L.P., 6.75%, 02/09/2004............................... BBB 203 150 Simon Property Group L.P., 7.125%, 09/20/2007.............................. BBB 169 235 St. Paul Companies, Inc., 7.875%, 04/15/2005.............................. BBB+ 253 150 Tyco Capital Corp., 7.625%, 08/16/2005.............................. A 164 417 Vanderbilt Acquisition Loan Trust, 3.28%, Ser 2002-1 Cl A1 01/07/2013.............. AAA 421 150 Wellpoint Health Networks, Inc., 6.375%, 06/15/2006.............................. A-- 164 ------- 13,360 ------- HEALTH CARE -- 1.0% 200 Boston Scientific Corp., 6.625%, 03/15/2005.............................. A-- 213 300 Quest Diagnostics, Inc., 6.75%, 07/12/2006............................... BBB 329 150 Wyeth, 7.90%, 02/15/2005............................... A 161 ------- 703 ------- SERVICES -- 8.2% 100 ARAMARK Services, Inc., 6.75%, 08/01/2004............................... BBB-- 103 370 ARAMARK Services, Inc., 8.15%, 05/01/2005............................... BBB-- 399
STANDARD AND POOR'S PRINCIPAL RATING MARKET AMOUNT (UNAUDITED) VALUE(B) --------- ----------- -------- SERVICES -- (CONTINUED) $ 450 Belo Corp., 7.125%, 06/01/2007.............................. BBB-- $ 504 389 Comcast Cable Communications, Inc., 6.375%, 01/30/2006.............................. BBB 419 115 Computer Sciences Corp., 6.75%, 06/15/2006............................... A 127 150 Cox Enterprises, Inc., 4.375%, 05/01/2008(f)........................... BBB 152 100 Cox Enterprises, Inc., 8.00%, 02/15/2007(f)............................ BBB 114 250 Electronic Data Systems Corp., 6.85%, 10/15/2004............................... BBB 259 300 Fiserv, Inc., 3.00%, 06/27/2008............................... BBB+ 286 450 Harrah's Operating Co., Inc., 7.125%, 06/01/2007.............................. BBB-- 505 355 Hyatt Equities LLC, 6.875%, 06/15/2007(f)........................... BBB 377 250 Marriott International, Inc., 6.875%, Ser B 11/15/2005........................ BBB+ 271 100 Marriott International, Inc., 7.00%, 01/15/2008............................... BBB+ 111 300 News America, Inc., 6.625%, 01/09/2008.............................. BBB-- 333 200 Scholastic Corp., 5.75%, 01/15/2007............................... BBB 215 100 Scholastic Corp., 7.00%, 12/15/2003............................... BBB 101 200 Sun Microsystems, Inc., 7.50%, 08/15/2006............................... BBB 220 200 TCI Communications, Inc., 6.875%, 02/15/2006.............................. BBB 217 200 Turner Broadcasting System, Inc., 7.40%, 02/01/2004............................... BBB+ 203 395 USA Networks, Inc., 6.75%, 11/15/2005............................... BBB-- 423 300 Walt Disney Co., 7.30%, 02/08/2005............................... BBB+ 320 350 WMX Technologies, 7.00%, 10/15/2006............................... BBB 388 ------- 6,047 ------- TECHNOLOGY -- 9.1% 300 AT&T Corp., 7.00%, 11/15/2006............................... BBB 332 100 AT&T Wireless Services, Inc., 6.875%, 04/18/2005...................................... BBB 106 400 AT&T Wireless Services, Inc., 7.50%, 05/01/2007............................... BBB 449 350 British Telecommunications plc, 7.875%, 12/15/2005.............................. A-- 388 300 Cingular Wireless LLC, 5.625%, 12/15/2006.............................. A+ 323
The accompanying notes are an integral part of this financial statement. 109 THE HARTFORD SHORT DURATION FUND SCHEDULE OF INVESTMENTS -- (CONTINUED) OCTOBER 31, 2003 (000'S OMITTED) --------------------------------------------------------------------------------
STANDARD AND POOR'S PRINCIPAL RATING MARKET AMOUNT (UNAUDITED) VALUE(B) --------- ----------- -------- CORPORATE BONDS: INVESTMENT GRADE -- (CONTINUED) TECHNOLOGY -- (CONTINUED) $ 290 Cox Communications, Inc., 7.75%, 08/15/2006............................... BBB $ 327 560 Deutsche Telekom International Finance B.V., 8.25%, 06/15/2005............................... BBB+ 612 500 France Telecom S.A., 8.45%, 03/01/2006............................... BBB 560 450 Hewlett-Packard Co., 5.75%, 12/15/2006............................... A-- 486 275 Maytag Corp., 6.875%, 03/31/2006.............................. BBB 298 500 Motorola, Inc., 6.75%, 02/01/2006............................... BBB 538 250 Puget Sound Energy, Inc., 3.363%, 06/01/2008.............................. BBB 242 450 Raytheon Co., 8.20%, 03/01/2006............................... BBB- 503 400 Sprint Capital Corp., 7.90%, 03/15/2005............................... BBB-- 428 250 Time Warner Companies, Inc., 8.11%, 08/15/2006............................... BBB+ 282 250 US Cellular Corp., 7.25%, 08/15/2007............................... A-- 257 475 Verizon Wireless Capital LLC, 5.375%, 12/15/2006.............................. A+ 507 75 Vodafone Group plc, 7.625%, 02/15/2005.............................. A 80 ------- 6,718 ------- TRANSPORTATION -- 1.7% 325 CSX Corp., 9.00%, 08/15/2006............................... BBB 377 280 Norfolk Southern Corp., 7.40%, 09/15/2006............................... BBB 316 350 TTX Co., 3.875%, 03/01/2008(f)........................... A+ 341 200 Union Pacific Corp., 7.60%, 05/01/2005............................... BBB 217 ------- 1,251 ------- UTILITIES -- 4.5% 340 Appalachian Power Co., 4.80%, Ser E 06/15/2005......................... BBB 353 145 Appalachian Power Co., 6.80%, 03/01/2006............................... BBB 158 50 Baltimore Gas & Electric Co., Inc., 6.625%, 03/15/2008.............................. A 56 322 Commonwealth Edison Co., 6.40%, 10/15/2005............................... BBB+ 346 200 DTE Energy Co., 6.00%, 06/01/2004............................... BBB 205 250 FPL Group Capital, Inc., 3.25%, 04/11/2006............................... A-- 253
STANDARD AND POOR'S PRINCIPAL RATING MARKET AMOUNT (UNAUDITED) VALUE(B) --------- ----------- -------- UTILITIES -- (CONTINUED) $ 250 Georgia Power Co., 6.20%, 02/01/2006............................... A $ 272 140 Niagara Mohawk Power Corp., 9.75%, 11/01/2005............................... A+ 159 250 Northeast Utilities, Inc., 3.30%, 06/01/2008............................... BBB 241 300 Southwestern Public Service Co., 5.125%, 11/01/2006.............................. BBB 319 255 Tampa Electric Co., 5.375%, 08/15/2007.............................. BBB-- 267 120 Texas Eastern Transmission L.P., 5.25%, 07/15/2007............................... BBB+ 127 250 Texas-New Mexico Power Co., 6.125%, 06/01/2008(f)........................... BBB-- 252 300 TXU Electric Co., 6.25%, 10/01/2004............................... BBB 312 ------- 3,320 ------- Total corporate bonds: investment grade (cost $46,797)........................................ $47,226 ======= U.S. GOVERNMENT SECURITIES -- 29.2% FEDERAL HOME LOAN MORTGAGE CORPORATION -- 4.9% 300 3.125% 2006....................................... $ 304 1,000 5.50% 2029........................................ 1,032 500 6.00% 2027........................................ 508 243 6.00% 2032........................................ 249 524 6.50% 2017........................................ 549 900 7.00% 2028........................................ 943 ------- 3,585 ------- FEDERAL NATIONAL MORTGAGE ASSOCIATION -- 3.6% 1,000 6.00% 2030........................................ 1,042 989 6.00% 2032 -- 2033................................ 1,016 575 6.50% 2032........................................ 597 ------- 2,655 ------- GOVERNMENT NATIONAL MORTGAGE -- 4.0% 1,000 6.00% 2032........................................ 1,010 1,500 6.00% 2033........................................ 1,545 386 7.00% 2032........................................ 408 ------- 2,963 ------- OTHER DIRECT FEDERAL OBLIGATIONS -- 0.5% 400 3.00% 2008........................................ 392 -------
The accompanying notes are an integral part of this financial statement. 110 --------------------------------------------------------------------------------
PRINCIPAL MARKET AMOUNT VALUE(B) --------- -------- U.S. GOVERNMENT SECURITIES -- (CONTINUED) U.S. TREASURY SECURITIES -- 16.2% $ 780 3.375% 2007(g).................................... $ 991 8,615 3.625% 2008(g).................................... 10,939 ------- 11,930 ------- Total U.S. government securities (cost $21,632)... $21,525 ======= Total long-term investments (cost $71,374).................................. $71,686 ======= SHORT-TERM INVESTMENTS -- 1.7% FINANCE -- 1.7% 297 Banc One Joint Repurchase Agreement, 0.97%, 11/03/2003 (Note 2f)..................... $ 297 470 BNP Paribas Joint Repurchase Agreement, 0.99%, 11/03/2003 (Note 2f)..................... 470 470 UBS Warburg Joint Repurchase Agreement, 0.98%, 11/03/2003 (Note 2f)..................... 470 ------- 1,237 ------- Total short-term investments (cost $1,237)................................... $ 1,237 ======= Total investments in securities (cost $72,611)(a)..................................... $72,923 =======
(a) At October 31, 2003, the cost of securities for federal income tax purposes is $72,611 and the aggregate gross unrealized appreciation and depreciation based on that cost was:
Unrealized appreciation.......................... $ 679 Unrealized depreciation.......................... (367) ----- Net unrealized appreciation...................... $ 312 =====
(b) See Note 2b of accompanying Notes to Financial Statements regarding valuation of securities. (c) Note: Percentage of investments as shown is the ratio of the total market value to total net assets. Market value of investments in foreign securities represents 5.80% of total net assets as of October 31, 2003. (d) Variable rate securities; the yield reported is the rate in effect as of October 31, 2003. (e) The interest rate disclosed for interest only strips represents the effective yield at October 31, 2003, based upon the estimated timing and amount of future cash flows. (f) Securities sold within the terms of a private placement memorandum, exempt from registration under Section 144A of the securities Act of 1933, as amended, and may be sold only to dealers in that program or to other "accredited investors". Pursuant to guidelines adopted by the Board of Directors, these issues are determined to be liquid. The aggregate value of these securities at October 31, 2003, was $3,808, which represents 5.17% of total net assets. (g) U.S. Treasury inflation-protection securities (TIPS) are securities in which the principal amount is adjusted for inflation and the semiannual interest payments equal a fixed percentage of the inflation-adjusted principal amount. * Moody's Rating
STATEMENT OF ASSETS AND LIABILITIES: ASSETS Investments in securities, at value (cost $72,611)......................................... $72,923 Cash............................................... 2 Receivables: Fund shares sold................................. 895 Dividends and interest........................... 1,005 Other assets....................................... 70 ------- Total assets....................................... 74,895 ------- LIABILITIES Payables: Investment securities purchased.................. 297 Fund shares redeemed............................. 912 Payable for investment advisory and management fees (Note 3).................................. 34 Payable for distribution fees (Note 3)........... 7 Accrued Expenses................................... 26 ------- Total liabilities.................................. 1,276 ------- Net assets......................................... $73,619 =======
SUMMARY OF NET ASSETS: Capital stock and paid-in-capital, par value $0.001 per share; 300,000 shares authorized; 7,260 shares outstanding....................................... $73,500 Accumulated undistributed net investment income..... 28 Accumulated net realized loss on investments and foreign currency transactions..................... (221) Unrealized appreciation of investments in securities and the translations of assets and liabilities denominated in foreign currency................... 312 ------- Net assets.......................................... $73,619 =======
Class A Net asset value per share ($32,753 / 3,230 shares outstanding)...................................... $10.14 ------ Maximum offering price per share ($10.14 / 97.0%)... $10.45 ====== Class B Net asset value per share ($10,206 / 1,007 shares outstanding)...................................... $10.14 ====== Class C Net asset value per share ($30,660 / 3,023 shares outstanding)...................................... $10.14 ------ Maximum offering price per share ($10.14 / 99.0%)... $10.24 ======
The accompanying notes are an integral part of this financial statement. 111 THE HARTFORD SMALL COMPANY FUND SCHEDULE OF INVESTMENTS OCTOBER 31, 2003 (000'S OMITTED) --------------------------------------------------------------------------------
MARKET SHARES VALUE(C) --------- -------- COMMON STOCK -- 92.3% BASIC MATERIALS -- 4.9% 231 Alkermes, Inc. (with rights)(a)................... $ 2,997 143 Arch Coal, Inc. .................................. 3,509 97 Ceradyne, Inc.(a)................................. 4,010 66 Trex Co., Inc.(a)................................. 2,446 -------- 12,962 -------- CAPITAL GOODS -- 3.3% 44 Leapfrog Enterprises, Inc.(a)..................... 1,523 69 Moog, Inc. Class A(a)............................. 2,926 77 Rudolph Technologies, Inc.(a)..................... 2,025 167 Scientific Games Corp. Class A(a)................. 2,219 -------- 8,693 -------- CONSUMER CYCLICAL -- 12.5% 109 A.C. Moore Arts & Crafts, Inc.(a)................. 2,524 552 American Tower Corp. Class A(a)................... 6,403 54 Dick's Sporting Goods, Inc.(a).................... 2,474 51 ESCO Technologies, Inc.(a)........................ 2,201 67 Fred's, Inc. ..................................... 2,536 315 Hollywood Entertainment Corp.(a).................. 4,781 148 Insight Enterprises, Inc.(a)...................... 2,482 51 K-Swiss, Inc. .................................... 2,228 71 M.D.C. Holdings, Inc. ............................ 4,809 91 Ports Design Ltd.(a).............................. 164 80 RARE Hospitality International, Inc.(a)........... 1,988 86 Sigma Designs, Inc.(a)............................ 731 -------- 33,321 -------- CONSUMER STAPLES -- 0.6% 100 Peet's Coffee & Tea, Inc.(a)...................... 1,685 -------- ENERGY -- 1.9% 84 Cabot Oil & Gas Corp. ............................ 2,139 73 Patina Oil & Gas Corp. (with rights).............. 3,063 -------- 5,202 -------- FINANCE AND INSURANCE -- 9.0% 29 Affiliated Managers Group, Inc.(a)................ 2,074 89 AMCORE Financial, Inc. ........................... 2,411 87 Arch Capital Group Ltd.(a)........................ 3,162 131 First Niagara Financial Group, Inc. .............. 1,869 306 HealthExtras, Inc.(a)............................. 3,589 46 iShares Russell 2000 Growth Index Fund............ 2,623 87 Platinum Underwriters Holdings Ltd. .............. 2,514 73 ProAssurance Corp.(a)............................. 2,194 13 The First Marblehead Corp.(a)..................... 277 271 U.S.I. Holdings Corp.(a).......................... 3,438 -------- 24,151 -------- HEALTH CARE -- 16.0% 105 Abaxis, Inc.(a)................................... 1,815 152 Abgenix, Inc. (with rights)(a).................... 1,866 56 AmSurg Corp. (with rights)(a)..................... 2,015 106 AtheroGenics, Inc. (with rights)(a)............... 1,751 705 Beverly Enterprises, Inc.(a)...................... 4,277 107 Ciphergen Biosystems, Inc.(a)..................... 1,167 107 Curative Health Services, Inc.(a)................. 1,526
MARKET SHARES VALUE(C) --------- -------- HEALTH CARE -- (CONTINUED) 49 CV Therapeutics, Inc. (with rights)(a)............ $ 856 205 Cytyc Corp.(a).................................... 2,652 42 eResearch Technology, Inc.(a)..................... 1,931 22 INAMED Corp.(a)................................... 1,868 17 Kosan Biosciences, Inc.(a)........................ 153 77 Medicines Co.(a).................................. 2,059 128 Merit Medical Systems, Inc.(a).................... 3,358 87 NPS Pharmaceuticals, Inc.(a)...................... 2,295 90 Odyssey HealthCare, Inc. (with rights)(a)......... 2,506 178 Option Care, Inc.(a).............................. 1,744 78 Orthofix International N.V.(a).................... 2,842 179 Osteotech, Inc.(a)................................ 1,451 2 Respironics, Inc.(a).............................. 92 58 Telik, Inc.(a).................................... 1,178 79 Vertex Pharmaceuticals, Inc.(a)................... 1,041 61 Zoll Medical Corp.(a)............................. 2,084 -------- 42,527 -------- SERVICES -- 13.3% 62 Alliance Data Systems Corp.(a).................... 1,709 86 Cumulus Media, Inc. Class A(a).................... 1,606 169 DiamondCluster International, Inc.(a)............. 1,502 48 Education Management Corp.(a)..................... 3,026 29 Embarcadero Technologies, Inc.(a)................. 377 416 Enterasys Networks, Inc.(a)....................... 1,622 181 Exelixis, Inc.(a)................................. 1,347 39 Lin TV Corp.(a)................................... 880 180 MPS Group, Inc.(a)................................ 1,720 148 Navigant Consulting, Inc.(a)...................... 2,432 112 Netscreen Technologies, Inc.(a)................... 2,971 394 Sapient Corp.(a).................................. 2,161 1,572 Sirius Satellite Radio, Inc.(a)................... 3,693 235 Stake Technology Ltd.(a).......................... 2,249 56 University of Phoenix Online(a)................... 3,849 197 webMethods, Inc. (with rights)(a)................. 1,706 124 Wynn Resorts Ltd.(a).............................. 2,491 -------- 35,341 -------- TECHNOLOGY -- 25.9% 188 Agile Software Corp. (with rights)(a)............. 2,061 201 ASE Test Ltd. ADR(a).............................. 2,511 419 Brocade Communications Systems, Inc. (with rights)(a)...................................... 2,746 64 Cognos, Inc.(a)................................... 2,190 571 Crown Castle International Corp.(a)............... 7,234 136 Dot Hill Systems Corp. (with rights)(a)........... 1,826 34 DSP Group, Inc.(a)................................ 817 122 Exar Corp.(a)..................................... 1,962 87 FuelCell Energy, Inc.(a).......................... 1,328 393 MEMC Electronic Materials, Inc.(a)................ 4,398 185 Microsemi Corp.(a)................................ 3,836 291 Mindspeed Technologies, Inc.(a)................... 1,491 214 Networks Associates, Inc.(a)...................... 2,984 44 NII Holdings, Inc. Class B(a)..................... 3,425 620 ON Semiconductor Corp.(a)......................... 2,667 174 Overland Storage, Inc.(a)......................... 3,434 213 Pericom Semiconductor Corp. (with rights)(a)...... 2,428
The accompanying notes are an integral part of these financial statements. 112 --------------------------------------------------------------------------------
MARKET SHARES VALUE(C) --------- -------- COMMON STOCK -- (CONTINUED) TECHNOLOGY -- (CONTINUED) 61 Plantronics, Inc.(a).............................. $ 1,705 104 Polycom, Inc.(a).................................. 2,086 109 Quantum Fuel Systems Technologies Worldwide, Inc.(a)......................................... 996 410 Red Hat, Inc.(a).................................. 6,163 138 Semtech Corp.(a).................................. 3,072 1,402 Techtronic Industries Co. Ltd..................... 3,864 97 Wilson Greatbatch Technologies, Inc. (with rights)(a)...................................... 3,639 -------- 68,863 -------- TRANSPORTATION -- 4.9% 376 AMR Corp.(a)...................................... 4,996 81 Old Dominion Freight Line, Inc.(a)................ 2,602 7 Overnight Corp.(a)................................ 149 157 Yellow Corp.(a)................................... 5,144 -------- 12,891 -------- Total Common Stock (Cost $202,352)................................. $245,636 ======== SHARES --------- SHORT-TERM INVESTMENTS -- 13.3% SECURITIES PURCHASED WITH PROCEEDS FROM SECURITIES LENDING -- 6.7% 17,886 Boston Global Investment Trust.................... $ 17,886 -------- PRINCIPAL AMOUNT --------- FINANCE -- 6.6% $ 2,522 ABN AMRO Joint Repurchase Agreement,.............. 1.00%, 11/03/03 (Note 2f) 2,522 6,636 BNP Paribas Joint Repurchase Agreement,........... 1.00%, 11/03/03 (Note 2f) 6,636 8,234 UBS Securities Joint Repurchase Agreement,........ 0.98%, 11/03/03 (Note 2f) 8,234 -------- 17,392 -------- Total Short-Term Investments...................... (Cost $35,278) $ 35,278 ======== Total Investments in Securities................... (Cost $237,630)(b) $280,914 ========
(a) Presently non-income producing. (b) At October 31, 2003 the cost of securities for federal income tax purposes is $239,067 and the aggregate gross unrealized appreciation and depreciation based on that cost was:
Unrealized appreciation........................ $ 48,550 Unrealized depreciation........................ (6,703) -------- Net unrealized appreciation.................... $ 41,847 ========
(c) See Note 2b of accompanying Notes of Financial Statements regarding valuation of securities. (d) Note: Percentage of investments as shown is the ratio of the total market value to total net assets. Market value of investments in foreign securities represents 5.20% of total net assets as of October 31, 2003.
STATEMENT OF ASSETS AND LIABILITIES: ASSETS Investments in securities, at value; (cost $237,630)@....................................... $ 280,914 Cash............................................... @@ Receivables: Investment securities sold....................... 5,783 Fund shares sold................................. 2,069 Dividends and interest........................... 11 Other assets....................................... 65 --------- Total assets....................................... 288,842 --------- LIABILITIES Payables: Payable upon return of securities loaned (Note 2d)............................................ 17,886 Foreign currency on credit with custodian (cost @@ )........................................... 3 Investment securities purchased.................. 4,226 Fund shares redeemed............................. 347 Payable for investment advisory and management fees (Note 3).................................. 185 Payable for distribution fees (Note 3)........... 20 Accrued Expenses................................... 80 --------- Total liabilities.................................. 22,747 --------- Net assets......................................... $ 266,095 =========
@ Market value of securities on loan $15,684.
SUMMARY OF NET ASSETS: Capital stock and paid-in-capital, par value $0.001 per share; 300,000 shares authorized; 19,037 shares outstanding....................... $ 333,174 Accumulated net realized loss on investments and foreign currency transactions................... (110,360) Unrealized appreciation of investments in securities and the translations of assets and liabilities denominated in foreign currency..... 43,281 --------- Net assets........................................ $ 266,095 =========
Class A Net asset value per share ($141,327 / 9,899 shares outstanding)...................................... $14.28 ------ Maximum offering price per share ($14.28 / 94.5%)... $15.11 ====== Class B Net asset value per share ($58,286 / 4,315 shares outstanding)...................................... $13.51 ====== Class C Net asset value per share ($52,010 / 3,847 shares outstanding)...................................... $13.52 ------ Maximum offering price per share($13.52 / 99.0%).... $13.66 ====== Class Y Net asset value per share ($14,472 / 976 shares outstanding)...................................... $14.83 ====== @@ Due to the presentation of the financial statements in thousands, the number or shares and/or dollars round to zero.
The accompanying notes are an integral part of these financial statements. 113 THE HARTFORD SMALLCAP GROWTH FUND SCHEDULE OF INVESTMENTS OCTOBER 31, 2003 (000'S OMITTED) --------------------------------------------------------------------------------
MARKET SHARES VALUE(C) --------- -------- COMMON STOCK -- 98.2% BASIC MATERIALS -- 3.9% 24 Cabot Microelectronics Corp.(a)................... $ 1,391 34 Glatfelter........................................ 434 114 Longview Fibre Co. (with rights).................. 1,225 15 Minerals Technologies, Inc. (with rights)......... 806 50 Precision Castparts Corp. ........................ 2,044 17 Schweitzer-Mauduit International, Inc. ........... 442 17 Select Comfort Corp.(a)........................... 516 39 Wausau-Mosinee Paper Corp. ....................... 483 -------- 7,341 -------- CAPITAL GOODS -- 6.4% 26 Action Performance Companies, Inc.(a)............. 532 21 Albany International Corp. Class A................ 634 77 Armor Holdings, Inc.(a)........................... 1,492 77 Callaway Golf Co. ................................ 1,255 22 DuPont Photomasks, Inc. (with rights)(a).......... 505 34 Engineered Support Systems, Inc. ................. 2,265 38 Graco, Inc. (with rights)......................... 1,440 17 Moog, Inc. Class A(a)............................. 700 109 Nautilus Group, Inc. ............................. 1,698 42 Photronics, Inc.(a)............................... 905 14 York International Corp. ......................... 556 -------- 11,982 -------- CONSUMER CYCLICAL -- 10.4% 42 Aeropostale, Inc.(a).............................. 1,296 26 AFC Enterprises, Inc.(a).......................... 439 23 Bebe Stores, Inc.(a).............................. 638 23 CEC Entertainment, Inc.(a)........................ 1,130 32 GameStop Corp.(a)................................. 545 18 Granite Construction, Inc. ....................... 352 30 Guitar Center, Inc.(a)............................ 973 120 Hollywood Entertainment Corp.(a).................. 1,828 58 Hot Topic, Inc.(a)................................ 1,669 967 i2 Technologies, Inc. (with rights)(a)............ 1,711 20 Owens & Minor, Inc. .............................. 407 111 Pacific Sunwear of California, Inc.(a)............ 2,556 91 PolyMedica Corp. ................................. 2,681 60 Steven Madden Ltd. (with rights)(a)............... 1,288 50 Washington Group Int'l., Inc.(a).................. 1,378 24 Wolverine World Wide, Inc. (with rights).......... 485 -------- 19,376 -------- CONSUMER STAPLES -- 0.4% 39 Sensient Technologies Corp. ...................... 745 -------- ENERGY -- 2.8% 48 Cabot Oil & Gas Corp. ............................ 1,234 126 Chesapeake Energy Corp. (with rights)............. 1,508 51 Forest Oil Corp.(a)............................... 1,184 32 Patina Oil & Gas Corp. (with rights).............. 1,370 -------- 5,296 -------- FINANCE AND INSURANCE -- 10.8% 18 Affiliated Managers Group, Inc.(a)................ 1,320 83 American Capital Strategies Ltd. ................. 2,238 27 American Home Mortgage Holdings, Inc. ............ 559
MARKET SHARES VALUE(C) --------- -------- FINANCE AND INSURANCE -- 10.8% -- (CONTINUED) 40 American Medical Security Group, Inc.(a).......... $ 913 28 AMERIGROUP Corp.(a)............................... 1,167 70 Clark, Inc.(a).................................... 1,049 22 Downey Financial Corp. ........................... 987 18 First BanCorp Puerto Rico. ....................... 596 20 Hancock Holding Co. .............................. 1,156 27 Hanmi Financial Corp. ............................ 562 31 IndyMac Mortgage Holdings, Inc. .................. 897 53 Investment Technology Group, Inc.(a).............. 1,060 38 Irwin Financial Corp. ............................ 1,065 19 LandAmerica Financial Group, Inc. ................ 945 40 NetBank, Inc. (with rights)....................... 552 3 Old Second Bancorp, Inc. ......................... 152 10 Peoples Bancorp, Inc. ............................ 288 14 PS Business Parks, Inc. (REIT).................... 543 59 Reinsurance Group of America, Inc. ............... 2,361 69 Scottish Re Group Ltd. ........................... 1,496 9 State Financial Services Corp. ................... 229 -------- 20,135 -------- HEALTH CARE -- 17.3% 129 Abgenix, Inc. (with rights)(a).................... 1,577 64 Advanced Medical Optics, Inc.(a).................. 1,281 51 Alexion Pharmaceuticals, Inc.(a).................. 942 43 Alpharma, Inc. Class A............................ 788 92 Applera Corp. -- Celera Genomics Group(a)......... 1,223 130 Ciphergen Biosystems, Inc.(a)..................... 1,415 103 CV Therapeutics, Inc. (with rights)(a)............ 1,819 192 Cytyc Corp.(a).................................... 2,486 49 Diagnostic Products Corp. ........................ 1,992 253 Gene Logic, Inc.(a)............................... 1,257 21 Haemonetics Corp.(a).............................. 484 292 Incyte Corp.(a)................................... 1,544 15 Invacare Corp. ................................... 595 63 Kos Pharmaceuticals, Inc.(a)...................... 2,502 80 Kosan Biosciences, Inc.(a)........................ 734 52 NPS Pharmaceuticals, Inc.(a)...................... 1,361 99 Nu Skin Enterprises, Inc. ........................ 1,577 11 OSI Pharmaceuticals, Inc. (with rights)(a)........ 311 78 Perrigo Co. ...................................... 1,048 69 Pharmacopeia, Inc.(a)............................. 861 112 Regeneron Pharmaceutical, Inc.(a)................. 1,554 68 Respironics, Inc.(a).............................. 2,847 9 Ventana Medical Systems, Inc.(a).................. 356 83 Vertex Pharmaceuticals, Inc.(a)................... 1,086 34 Viasys Healthcare, Inc. (with rights)(a).......... 610 -------- 32,250 -------- SERVICES -- 21.9% 84 Acxiom Corp.(a)................................... 1,336 19 Advisory Board Co.(a)............................. 695 36 ADVO, Inc. ....................................... 1,600 50 Anteon International Corp.(a)..................... 1,721 27 Argosy Gaming Co.(a).............................. 643 32 Aztar Corp.(a).................................... 658 15 Bankrate, Inc.(a)................................. 232 34 Beasley Broadcast Group, Inc. Class A(a).......... 498
The accompanying notes are an integral part of these financial statements. 114 --------------------------------------------------------------------------------
MARKET SHARES VALUE(C) --------- -------- COMMON STOCK -- (CONTINUED) SERVICES -- (CONTINUED) 27 Black Box Corp. .................................. $ 1,167 16 CACI International, Inc.(a)....................... 768 175 Charter Communications, Inc. Class A(a)........... 747 55 Coinstar, Inc.(a)................................. 806 76 Cyberguard Corp.(a)............................... 658 175 Dendrite International, Inc.(a)................... 2,646 394 Digital Generation Systems, Inc.(a)............... 760 75 Digital Insight Corp.(a).......................... 1,563 120 Enterasys Networks, Inc.(a)....................... 468 153 Exelixis, Inc.(a)................................. 1,135 196 Gartner, Inc. Class A(a).......................... 2,494 223 Hollywood Media Corp.(a).......................... 443 91 Hypercom Corp.(a)................................. 447 45 IDX Systems Corp.(a).............................. 1,179 33 ITT Educational Services, Inc.(a)................. 1,638 35 Manhattan Associates, Inc.(a)..................... 974 38 MAXIMUS, Inc.(a).................................. 1,323 174 McDATA Corp. (with rights)(a)..................... 1,792 34 Mentor Graphics Corp. (with rights)(a)............ 573 21 MTS Systems Corp. ................................ 369 40 Pegasus Communications Corp.(a)................... 730 55 Per-Se Technologies, Inc.(a)...................... 748 104 PRG-Schultz International, Inc.(a)................ 495 204 Radiant Systems, Inc.(a).......................... 1,360 51 Red Robin Gourmet Burgers, Inc.(a)................ 1,491 21 Resources Connection, Inc.(a)..................... 517 97 Right Management Consultants, Inc.(a)............. 1,749 398 UnitedGlobalCom, Inc. Class A(a).................. 2,818 65 VitalWorks, Inc.(a)............................... 328 55 Watson Wyatt & Co. Holdings, Inc.(a).............. 1,325 -------- 40,894 -------- TECHNOLOGY -- 24.1% 166 Activision, Inc.(a)............................... 2,500 212 Actuate Corp.(a).................................. 753 35 Advanced Fibre Communications, Inc.(a)............ 845 16 AMETEK, Inc. ..................................... 734 22 Benchmark Electronics, Inc. (with rights)(a)...... 1,067 62 Boston Communications Group, Inc.(a).............. 584 57 Checkpoint Systems, Inc.(a)....................... 1,074 69 Conexant Systems, Inc.(a)......................... 402 58 CSG Systems International, Inc.(a)................ 671 29 CTS Corp. ........................................ 318 36 Electronics for Imaging, Inc.(a).................. 984 31 Emulex Corp.(a)................................... 889 82 ESS Technology, Inc.(a)........................... 1,144 44 Exar Corp.(a)..................................... 705 78 Fairchild Semiconductor International, Inc.(a).... 1,772 31 FileNET Corp.(a).................................. 823 20 FindWhat.com(a)................................... 334 77 FLIR Systems, Inc.(a)............................. 2,407 142 General Communication, Inc. Class A(a)............ 1,403 46 Genesis Microchip, Inc.(a)........................ 758 38 Hutchinson Technology, Inc.(a).................... 1,273
MARKET SHARES VALUE(C) --------- -------- TECHNOLOGY -- (CONTINUED) 60 Hyperion Solutions Corp. (with rights)(a)......... $ 2,006 53 InVision Technologies, Inc.(a).................... 1,451 37 Kronos, Inc.(a)................................... 2,232 295 LookSmart Ltd.(a)................................. 510 56 Methode Electronics, Inc. Class A (with rights)... 668 222 ON Semiconductor Corp.(a)......................... 956 116 Pegasystems, Inc.(a).............................. 883 28 Plantronics, Inc.(a).............................. 765 66 Powerwave Technologies, Inc. (with rights)(a)..... 428 152 Primus Telecommunications Group, Inc.(a).......... 1,397 100 PTEK Holdings, Inc.(a)............................ 871 227 Rainbow Technologies, Inc.(a)..................... 2,794 11 Silicon Laboratories, Inc.(a)..................... 594 86 TALK America Holdings, Inc.(a).................... 1,074 94 Tekelec(a)........................................ 1,516 51 Transaction Systems Architects, Inc.(a)........... 1,024 282 Trizetto Group, Inc. (with rights)(a)............. 1,915 282 Visual Networks, Inc.(a).......................... 499 91 WebEx Communications, Inc.(a)..................... 2,010 -------- 45,033 -------- UTILITIES -- 0.2% 20 Cleco Corp. ...................................... 335 -------- Total common stock (cost $158,737)................................. $183,387 ========
SHARES --------- SHORT-TERM INVESTMENTS -- 8.3% SECURITIES PURCHASED WITH PROCEEDS FROM SECURITIES LENDING -- 7.2% 7,398 Evergreen Institutional Money Market Fund......... $ 7,398 6,083 Evergreen Prime Cash Management Money Market Fund............................................ 6,083 -------- 13,481 -------- PRINCIPAL AMOUNT --------- FINANCE -- 1.1% $ 217 ABN AMRO Joint Repurchase Agreement, 1.00%, 11/03/03 (Note 2f)....................... 217 571 BNP Paribas Joint Repurchase Agreement, 1.00%, 11/03/03 (Note 2f)....................... 571 709 UBS Securities Joint Repurchase Agreement, 0.98%, 11/03/03 (Note 2f)....................... 709 -------- 1,497 -------- 450 US Treasury Bill, 0.89%, 01/08/2004(e)............ 449 -------- 1,946 -------- Total short-term investments (cost $15,427)....... $ 15,427 ======== Total investments in securities (cost $174,164)(b).................................... $198,814 ========
The accompanying notes are an integral part of these financial statements. 115 THE HARTFORD SMALLCAP GROWTH FUND SCHEDULE OF INVESTMENTS -- (CONTINUED) OCTOBER 31, 2003 (000'S OMITTED) -------------------------------------------------------------------------------- (a) Presently non-income producing. (b) At October 31, 2003, the cost of securities for federal income tax purposes is $175,550 and the aggregate gross unrealized appreciation and depreciation based on that cost was:
Unrealized appreciation........................ $ 32,737 Unrealized depreciation........................ (9,473) -------- Net unrealized appreciation.................... $ 23,264 ========
(c) See Note 2b of accompanying Notes of Financial Statements regarding valuation of securities. (d) Note: Percentage of investments as shown is the ratio of the total market value to total net assets. (e) Security pledged as initial margin deposit for 3 open Russell 2000 Index December 2003 Futures contracts. As of October 31, 2003, these contracts had a value of $793 with unrealized appreciation of $28.
STATEMENT OF ASSETS AND LIABILITIES: ASSETS Investments in securities, at value; (cost $174,164) @....................................... $198,814 Receivables: Investment securities sold........................ 3,810 Fund shares sold.................................. 532 Dividends and interest............................ 32 Other assets........................................ 61 -------- Total assets........................................ 203,249 -------- LIABILITIES Payables: Payable upon return of securities loaned (Note 2d)............................................. 13,481 Investment securities purchased................... 2,738 Fund shares redeemed.............................. 170 Payable for investment advisory and management fees (Note 3)................................... 140 Payable for distribution fees (Note 3)............ 15 Accrued Expenses.................................... 19 Variation margin payable............................ 4 -------- Total liabilities................................... 16,567 -------- Net assets.......................................... $186,682 ======== @ Market value of securities on loan $12,149.
SUMMARY OF NET ASSETS: Capital stock and paid-in-capital, par value $0.0001 per share; 21,000,000 shares authorized; 8,373 shares outstanding................................ $247,427 Accumulated net realized loss on investments........ (85,423) Unrealized appreciation of investments in securities........................................ 24,678 -------- Net assets.......................................... $186,682 ========
Class A Net asset value per share ($17,544 / 766 shares outstanding)...................................... $22.91 ------ Maximum offering price per share ($22.91 / 94.5%)... $24.24 ====== Class B Net asset value per share ($6,571 / 313 shares outstanding)...................................... $20.99 ====== Class C Net asset value per share ($5,076 / 242 shares outstanding)...................................... $20.99 ------ Maximum offering price per share ($20.99 / 99.0%)... $21.20 ====== Class H Net asset value per share ($20,767 / 988 shares outstanding)...................................... $21.02 ====== Class L Net asset value per share ($112,621 / 4,917 shares outstanding)...................................... $22.90 ------ Maximum offering price per share ($22.90 /95.25%)... $24.04 ====== Class M Net asset value per share ($17,992 / 856 shares outstanding)...................................... $21.00 ====== Class N Net asset value per share ($6,110 / 291 shares outstanding)...................................... $21.02 ====== Class Y Net asset value per share ($1 / @@ shares outstanding)...................................... $23.06 ====== @@ Due to the presentation of the financial statements in thousands, the number or shares and/or dollars round to zero.
The accompanying notes are an integral part of these financial statements. 116 THE HARTFORD STOCK FUND SCHEDULE OF INVESTMENTS OCTOBER 31, 2003 (000'S OMITTED) --------------------------------------------------------------------------------
MARKET SHARES VALUE(C) --------- ---------- COMMON STOCK -- 99.0% BASIC MATERIALS -- 6.8% 187 3M Co. ........................................... $ 14,764 820 Alcoa, Inc. ...................................... 25,894 552 Dow Chemical Co. ................................. 20,794 379 DuPont (E.I.) de Nemours & Co. ................... 15,307 678 Gillette Co. (with rights)........................ 21,619 444 International Paper Co. .......................... 17,452 ---------- 115,830 ---------- CAPITAL GOODS -- 3.3% 274 Illinois Tool Works, Inc. ........................ 20,145 170 Northrop Grumman Corp. (with rights).............. 15,198 240 United Technologies Corp. ........................ 20,334 ---------- 55,677 ---------- CONSUMER CYCLICAL -- 8.8% 306 Caterpillar, Inc. (with rights)................... 22,431 630 Costco Wholesale Corp.(a)......................... 22,283 1,021 Gap, Inc. ........................................ 19,488 975 Home Depot, Inc. ................................. 36,158 88 Kohl's Corp.(a)................................... 4,912 362 Masco Corp. (with rights)......................... 9,952 285 NIKE, Inc. Class B................................ 18,180 432 Target Corp. (with rights)........................ 17,148 ---------- 150,552 ---------- CONSUMER STAPLES -- 6.6% 793 Coca-Cola Co. .................................... 36,795 370 General Mills, Inc. .............................. 16,613 678 PepsiCo, Inc. .................................... 32,408 207 Procter & Gamble Co. ............................. 20,326 122 Weyerhaeuser Co. ................................. 7,318 ---------- 113,460 ---------- ENERGY -- 5.3% 276 Chevron Texaco Corp. (with rights)................ 20,527 1,463 Exxon Mobil Corp. ................................ 53,513 361 Schlumberger Ltd. ................................ 16,951 ---------- 90,991 ---------- FINANCE AND INSURANCE -- 21.2% 449 American Express Co. ............................. 21,076 772 American International Group, Inc. ............... 46,976 411 Bank of America Corp. ............................ 31,133 689 Bank One Corp. ................................... 29,231 1,364 Citigroup, Inc. .................................. 64,663 205 Fannie Mae........................................ 14,704 194 Franklin Resources, Inc. ......................... 9,176 315 HSBC Holdings plc ADR............................. 23,642 315 KeyCorp........................................... 8,896 452 Marsh & McLennan Companies, Inc. (with rights).... 19,340 424 Merrill Lynch & Co., Inc. ........................ 25,113 314 Morgan Stanley (with rights)...................... 17,213 345 State Street Corp. (with rights).................. 18,064
MARKET SHARES VALUE(C) --------- ---------- FINANCE AND INSURANCE -- (CONTINUED) 851 Travelers Property Casualty Corp. Class B......... $ 13,936 391 U.S. Bancorp (with rights)........................ 10,629 197 Wachovia Corp. (with rights)...................... 9,023 ---------- 362,815 ---------- HEALTH CARE -- 13.1% 491 Abbott Laboratories (with rights)................. 20,905 238 Amgen, Inc. (with rights)(a)...................... 14,680 135 Cardinal Health, Inc. ............................ 8,005 267 Genzyme Corp.(a).................................. 12,269 372 HCA, Inc. ........................................ 14,229 297 Johnson & Johnson................................. 14,953 542 Lilly (Eli) & Co. (with rights)................... 36,128 270 Merck & Co., Inc. ................................ 11,952 2,151 Pfizer, Inc. (with rights)........................ 67,985 520 Wyeth (with rights)............................... 22,953 ---------- 224,059 ---------- SERVICES -- 8.8% 773 Accenture Ltd. Class A(a)......................... 18,079 277 Automatic Data Processing, Inc. .................. 10,435 651 Comcast Corp. Class A(a).......................... 22,087 417 Computer Sciences Corp.(a)........................ 16,502 262 FedEx Corp. ...................................... 19,872 128 Marriott International, Inc. Class A (with rights)......................................... 5,538 409 SAP AG ADR........................................ 14,952 441 Viacom, Inc. Class B.............................. 17,575 555 Walt Disney Co. .................................. 12,565 468 Waste Management, Inc. ........................... 12,133 ---------- 149,738 ---------- TECHNOLOGY -- 24.6% 437 Applied Materials, Inc.(a)........................ 10,215 1,692 Cisco Systems, Inc. (with rights)(a).............. 35,507 201 First Data Corp. ................................. 7,176 2,361 General Electric Co. ............................. 68,498 1,557 Hewlett-Packard Co. .............................. 34,732 1,707 Intel Corp. ...................................... 56,423 500 International Business Machines Corp. ............ 44,776 1,549 Liberty Media Corp. Class A(a).................... 15,631 180 Lockheed Martin Corp. ............................ 8,345 2,629 Microsoft Corp. .................................. 68,756 981 Oracle Corp. (with rights)(a)..................... 11,727 513 Texas Instruments, Inc. (with rights)............. 14,822 2,865 Time Warner, Inc.(a).............................. 43,810 ---------- 420,418 ---------- TRANSPORTATION -- 0.5% 242 CSX Corp. (with rights)........................... 7,694 ---------- Total common stock (cost $1,711,209)............................... $1,691,234 ==========
The accompanying notes are an integral part of these financial statements. 117 THE HARTFORD STOCK FUND SCHEDULE OF INVESTMENTS -- (CONTINUED) OCTOBER 31, 2003 (000'S OMITTED) --------------------------------------------------------------------------------
MARKET SHARES VALUE(C) --------- ---------- SHORT-TERM INVESTMENTS -- 2.7% SECURITIES PURCHASED WITH PROCEEDS FROM SECURITIES LENDING -- 1.0% 17,085 Boston Global Investment Trust.................... $ 17,085 ---------- PRINCIPAL AMOUNT --------- FINANCE -- 1.7% $ 4,235 ABN AMRO Joint Repurchase Agreement,.............. 1.00%, 11/03/03 (Note 2f) 4,235 11,144 BNP Paribas Joint Repurchase Agreement,........... 1.00%, 11/03/03 (Note 2f) 11,144 13,829 UBS Securities Joint Repurchase Agreement,........ 0.98%, 11/03/03 (Note 2f) 13,829 ---------- 29,208 ---------- Total short-term investments...................... (cost $46,293) $ 46,293 ---------- Total investments in securities................... (cost $1,757,502)(b) $1,737,527 ==========
(a) Presently non-income producing. (b) At October 31, 2003, the cost of securities for federal income tax purposes is $1,777,401 and the aggregate gross unrealized appreciation and depreciation based on that cost was:
Unrealized appreciation....................... $ 126,690 Unrealized depreciation....................... (166,565) --------- Net unrealized depreciation................... $ (39,875) =========
(c) See Note 2b of accompanying Notes to Financial Statements regarding valuation of securities. (d) Note: Percentage of investments as shown is the ratio of the total market value to total net assets. Market value of investments in foreign securities represents 2.26% of total net assets as of October 31, 2003.
STATEMENT OF ASSETS AND LIABILITIES: ASSETS Investments in securities, at value; (cost $1,757,502) @ .................................. $1,737,527 Cash.............................................. @@ Receivables: Investment securities sold...................... 3,410 Fund shares sold................................ 3,685 Dividends and interest.......................... 1,813 Other assets...................................... 103 ---------- Total assets...................................... 1,746,538 ---------- LIABILITIES Payables: Payable upon return of securities loaned (Note 2d)........................................... 17,085 Investment securities purchased................. 16,988 Fund shares redeemed............................ 2,837 Payable for investment advisory and management fees (Note 3)................................. 1,020 Payable for distribution fees (Note 3).......... 133 Accrued Expenses.................................. 607 ---------- Total liabilities................................. 38,670 ---------- Net assets........................................ $1,707,868 ==========
@ Market value of securities on loan $16,711.
SUMMARY OF NET ASSETS: Capital stock and paid-in-capital, par value $0.001 per share; 300,000 shares authorized; 107,579 shares outstanding...................... $2,318,280 Accumulated net realized loss on investments...... (590,437) Unrealized depreciation of investments in securities...................................... (19,975) ---------- Net assets........................................ $1,707,868 ==========
Class A Net asset value per share ($976,663 / 60,258 shares outstanding)...................................... $16.21 ------ Maximum offering price per share ($16.21 / 94.5%)... $17.15 ====== Class B Net asset value per share ($376,437 / 24,525 shares outstanding)...................................... $15.35 ====== Class C Net asset value per share ($311,874 / 20,244 shares outstanding)...................................... $15.41 ------ Maximum offering price per share ($15.41 / 99.0%)... $15.57 ====== Class Y Net asset value per share $42,894 / 2,552 shares outstanding)...................................... $16.81 ====== @@ Due to the presentation of the financial statements in thousands, the number or shares and/or dollars round to zero.
The accompanying notes are an integral part of these financial statements. 118 THE HARTFORD TAX-FREE CALIFORNIA FUND SCHEDULE OF INVESTMENTS OCTOBER 31, 2003 (000'S OMITTED) --------------------------------------------------------------------------------
STANDARD AND POOR'S PRINCIPAL RATING MARKET AMOUNT (UNAUDITED) VALUE(B) --------- ----------- -------- MUNICIPAL BONDS -- 95.3% AIRPORT REVENUES -- 6.2% $400 San Francisco (City of), CA, 5.00%, City & County Airport Commission International Airport Rev AMT Second Ser Issue 15A 05/01/2028.................................. AAA $ 401 425 San Jose (City of), CA, 5.00%, Airport Rev Ref AMT Ser B FSA Insured 03/01/2010...................................... AAA 464 ------- 865 ------- GENERAL OBLIGATIONS -- 19.2% 100 Azusa (City of), CA, 5.75%, Special Tax Comm Fac Dist #1 Mountain Cove Ser A 09/01/2021........................... NR 96 50 Beaumont (City of), CA, 7.25%, Financing Auth Rev Ser A 09/01/2020...... NR 53 250 California (State of), 5.25%, General Obligation 02/01/2033............ BBB 245 750 California (State of), 5.50%, General Obligation 11/01/2033............ BBB 759 500 California Infrastructure & Economic Development, 5.00%, Bay Area Toll Brdgs 1st Lien Class A FSA Insured 07/01/2022.............................. AAA 514 400 Contra Costa (County of), CA, 5.625%, Public Financing Auth Tax Alloc Rev Multiple Proj Areas Ser A 08/01/2033............ BBB 396 60 Indio (City of), CA, 6.35%, Public Improvement Act 1915 Special Assessment #2002-3 09/02/2027................... NR 58 100 Perris (City of), CA, 6.25%, Public Financing Auth Local Agency Rev Ser A 09/01/2033................................ NR 99 425 Solano (County of), CA, 5.25%, General Obligation MBIA Insured 11/01/2021...................................... AAA 449 ------- 2,669 ------- HEALTH CARE/SERVICES -- 6.3% 200 ABAG Financing Auth for Non-Profit Corps., CA, 5.375%, Rev San Diego Hosp Assoc Ser C 03/01/2021...................................... BBB+ 194
STANDARD AND POOR'S PRINCIPAL RATING MARKET AMOUNT (UNAUDITED) VALUE(B) --------- ----------- -------- HEALTH CARE/SERVICES -- (CONTINUED) $250 California (State of), 5.00%, Health Facs Financing Auth Rev Adventist Health System Ser A 03/01/2033.................. A $ 229 200 California (State of), 5.375%, Public Works Board Dept of Mental Health-Patton Ser B 04/01/2028.................. BBB- 181 250 California (State of), 6.00%, Statewide Communities Dev Auth Rev Health Fac Memorial Health Services Ser A 10/01/2023... A- 263 ------- 867 ------- HIGHER EDUCATION (UNIV., DORMS, ETC.) -- 4.8% 250 California Statewide Comm Dev Auth Rev, 6.75%, John F. Kennedy University 10/01/2033.... Ba2* 237 415 University of California, 5.30%, Multi-Purpose Rev Ser K 09/01/2030....... AA- 423 ------- 660 ------- LAND DEVELOPMENT -- 14.3% 350 Burbank (City of), CA, 5.50%, Financing Auth Rev South San Fernando Redev Proj Ser B 12/01/2023..................... BBB 348 400 Fontana (City of), CA, 5.50%, Redev Agency Tax Allocation Ref Jurupa Hills Redev Proj Ser A 10/01/2027............... BBB+ 392 250 Oakland (City of), CA, 5.25%, Redev Agency Colliseum Area Redev Tax Allocation 09/01/2033........................... A- 247 500 Rialto (City of), CA, 5.25%, Redev Agency Tax Allocation Ref Merged Proj Area Ser A 09/01/2027...................... BBB+ 481 200 San Diego (City of), CA, 5.25%, Redev Agency Centre City Sub Pkg Ser B 09/01/2026...................................... Baa2* 193 175 San Diego (City of), CA, 5.30%, Redev Agency Tax Allocation North Park Redev Proj 09/01/2016........................... BBB+ 175
The accompanying notes are an integral part of this financial statement. 119 THE HARTFORD TAX-FREE CALIFORNIA FUND SCHEDULE OF INVESTMENTS -- (CONTINUED) OCTOBER 31, 2003 (000'S OMITTED) --------------------------------------------------------------------------------
STANDARD AND POOR'S PRINCIPAL RATING MARKET AMOUNT (UNAUDITED) VALUE(B) --------- ----------- -------- MUNICIPAL BONDS -- (CONTINUED) LAND DEVELOPMENT -- (CONTINUED) $150 San Diego (City of), CA, 5.60%, Redev Agency Tax Allocation North Bay Redev Proj 09/01/2017........................... BBB $ 152 ------- 1,988 ------- MISCELLANEOUS -- 7.3% 500 Golden State Tobacco Securitization Corp., 5.50%, California Tobacco Settlement Rev Enhanced Asset Backed Ser B 06/01/2033.......... BBB- 483 600 Golden State Tobacco Securitization Corp., 6.625%, California Tobacco Settlement Rev Ser 2003-A1 06/01/2040.............................. BBB 534 ------- 1,017 ------- PUBLIC FACILITIES -- 15.0% 100 Capistrano (City of), CA, 5.875%, Unified School Dist Comm Fac Dist Special Tax #90-2 Talega 09/01/2022............. NR 98 450 Fresno (City of), CA, 5.00%, Unified School Dist Election 1995 Ser E FGIC Insured 08/01/2025......................... AAA 463 100 Jurupa (City of), CA, 5.875%, Comm Services Dist #6 Special Tax Ser A 09/01/2032...................................... NR 97 450 Los Angeles (City of), CA, 5.00%, Unified School Dist Ser B 07/01/2023..... AAA 457 110 Moreno Valley (City of), CA, 5.60%, Unified School Dist Comm Fac Special Tax #2002-1 09/01/2017.............................. NR 107 100 Orange (County of), CA, 5.20%, Comm Fac Dist Special Tax #02-1 Ladera Ranch Ser A 08/15/2019.......................... NR 94 200 Orange (County of), CA, 5.40%, Comm Fac Dist Special Tax #02-1 Ladera Ranch Ser A 08/15/2022.......................... NR 191 250 Tustin (City of), CA, 5.60%, Unified School Dist Special Tax Jr Lien Comm Fac Dist #97-1-B 09/01/2029................ NR 244
STANDARD AND POOR'S PRINCIPAL RATING MARKET AMOUNT (UNAUDITED) VALUE(B) --------- ----------- -------- PUBLIC FACILITIES -- (CONTINUED) $200 Val Verde (City of), CA, 6.00%, Unified School Dist Financing Auth Special Tax Rev Jr Lien 10/01/2021.............. NR $ 196 125 William S. Hart Unified High School Dist, 5.85%, Special Tax Comm Fac Dist #2002-1 09/01/2022...................................... NR 125 ------- 2,072 ------- UTILITIES -- COMBINED -- 2.0% 250 California (State of), 5.875%, Dept Water Res Power Supply Rev Ser A 05/01/2016...................................... BBB+ 276 ------- UTILITIES -- ELECTRIC -- 2.2% 300 Vernon (City of), CA, 5.50%, Elec Sys Rev Malburg Generating Station Proj 04/01/2033................................. BBB+ 301 ------- UTILITIES -- WATER AND SEWER -- 15.2% 500 Atwater (City of), CA, Public Financing Auth, 5.50%, Rev Ref Sewer & Water Proj Ser A 05/01/2028...................................... BBB 485 250 Big Bear (City of), CA Mun Water Dist, 5.00%, Certificate Participation 1991 Ref and Lake Imports 11/01/2024......................... Baa3* 232 100 Eastern California Municipal Water Dist, 5.70%, Comm Fac Special Tax Improvement Area A #2001-02 09/01/2018............................. NR 97 250 Lathrop (City of), CA, 6.00%, Financing Auth Rev Water Supply Proj 06/01/2035...................................... NR 245 450 Metropolitan Water Dist Southern CA, 5.00%, Waterworks Rev Ser A 07/01/2037.......... AA 450 400 San Diego (City of), CA, 5.00%, Public Fac Financing Auth Water Rev MBIA Insured 08/01/2026.............................. AAA 404 200 Santa Margarita (City of), CA, 6.00%, Water Dist Special Tax Comm Fac Dist #99-1 09/01/2030................................ NR 197 ------- 2,110 -------
The accompanying notes are an integral part of this financial statement. 120 --------------------------------------------------------------------------------
STANDARD AND POOR'S PRINCIPAL RATING MARKET AMOUNT (UNAUDITED) VALUE(B) --------- ----------- -------- MUNICIPAL BONDS -- (CONTINUED) WASTE DISPOSAL -- 2.8% $375 Stockton (City of), CA, 5.20%, Wastewater Sys Proj Ser A MBIA Insured 09/01/2029...................................... AAA $ 382 ------- Total municipal bonds (cost $13,275).................................. $13,207 ======= SHARES --------- SHORT-TERM INVESTMENTS -- 3.6% FINANCE -- 3.6% 495 Dreyfus Basic California Municipal Money Market Fund........... $ 495 ------- Total short-term investments (cost $495).................................................. $ 495 ======= Total investments in securities (cost $13,770)(a).............. $13,702 =======
(a) At October 31, 2003, the cost of securities for federal income tax purposes is $13,770 and the aggregate gross unrealized appreciation and depreciation based on that cost was:
Unrealized appreciation.......................... $ 93 Unrealized depreciation.......................... (161) ----- Net unrealized depreciation...................... $ (68) =====
(b) See Note 2b of accompanying Notes to Financial Statements regarding valuation of securities. (c) Note: Percentage of investments as shown is the ratio of the total market value to total net assets. * Moody's Rating
STATEMENT OF ASSETS AND LIABILITIES: ASSETS Investments in securities, at value (cost $13,770).......................................... $ 13,702 Receivables: Investment securities sold........................ 711 Fund shares sold.................................. 1 Dividends and interest............................ 176 Other assets........................................ 38 -------- Total assets........................................ 14,628 -------- LIABILITIES Payables: Investment securities purchased................... 757 Payable for investment advisory and management fees (Note 3)................................... 6 Payable for distribution fees (Note 3)............ 1 Accrued Expenses.................................... 8 -------- Total liabilities................................... 772 -------- Net assets.......................................... $ 13,856 ========
SUMMARY OF NET ASSETS: Capital stock and paid-in-capital, par value $0.001 per share; 300,000 shares authorized; 1,396 shares outstanding............................... $13,974 Accumulated undistributed net investment income.... 30 Accumulated net realized loss on investments....... (80) Unrealized depreciation of investments in securities....................................... (68) ------- Net assets......................................... $13,856 =======
Class A Net asset value per share ($10,799 / 1,088 shares outstanding)..................................... $ 9.93 ------ Maximum offering price per share ($9.93 / 95.5%)..... $10.40 ====== Class B Net asset value per share ($1,827 / 184 shares outstanding)..................................... $ 9.92 ====== Class C Net asset value per share ($1,230 / 124 shares outstanding)..................................... $ 9.93 ------ Maximum offering price per share ($9.93 / 99.0%)... $10.03 ======
The accompanying notes are an integral part of this financial statement. 121 THE HARTFORD TAX-FREE MINNESOTA FUND SCHEDULE OF INVESTMENTS OCTOBER 31, 2003 (000'S OMITTED) --------------------------------------------------------------------------------
STANDARD AND POOR'S PRINCIPAL RATING MARKET AMOUNT (UNAUDITED) VALUE(B) --------- ----------- -------- MUNICIPAL BONDS -- 96.1% AIRPORT REVENUES -- 4.8% $ 750 Minneapolis & St. Paul (Cities of), MN, 5.00%, Metropolitan Airports Commission Airport Rev Ser A MBIA Insured 01/01/2028...................................... AAA $ 757 1,000 Minneapolis & St. Paul (Cities of), MN, 5.625%, Metropolitan Airport Commission Airport Rev AMT Ser B FGIC Insured 01/01/2018........... AAA 1,064 -------- 1,821 -------- GENERAL OBLIGATIONS -- 38.0% 1,000 Anoka-Hennepin (Counties of), MN, 5.00%, Ind School Dist #11 General Obligation Credit Enhancement Program Ser A 02/01/2015...................................... AA+ 1,068 1,300 Becker (City of), MN, 6.00%, Ind School Dist #726 General Obligation Ser A FSA Insured 02/01/2017.................... Aaa* 1,482 1,000 Bloomington (City of), MN, 5.45%, Ind School Dist #271 General Obligation Ser A 02/01/2012...................................... Aa1* 1,100 500 Brainerd (City of), MN, 5.375%, Ind School Dist #181 Ser A FGIC Insured 02/01/2016...................................... Aaa* 555 1,500 Brainerd (City of), MN, 6.65%, Rev Ref Evangelical Lutheran-Good Samaritan Proj Ser B FSA Insured 03/01/2017..... AAA 1,522 620 Hennepin (County of), MN, 5.00%, General Obligation Ser B 12/01/2017...... AAA 653 1,250 Hopkins (City of), MN, 5.00%, Ind School Dist #270 General Obligation 02/01/2011...................................... Aa2* 1,376 500 Minneapolis (City of), MN, 5.00%, General Obligation Ref Ser D 12/01/2016...................................... AAA 534 250 Minneapolis (City of), MN, 5.00%, Parking Assessment General Obligation 12/01/2020...................................... AAA 262
STANDARD AND POOR'S PRINCIPAL RATING MARKET AMOUNT (UNAUDITED) VALUE(B) --------- ----------- -------- GENERAL OBLIGATIONS -- (CONTINUED) $1,000 Minnesota (State of), 5.25%, General Obligation 08/01/2016............ AAA $ 1,087 375 Moorhead (City of), MN, 5.00%, Ind School Dist #152 General Obligation FGIC Insured 04/01/2018...................................... Aaa* 397 785 Mounds View (City of), MN, 5.25%, Ind School Dist #621 General Obligation Ser A 02/01/2014...................................... Aa2* 852 500 Osseo (City of), MN, 5.00%, Ind School Dist #279 General Obligation Ser B 02/01/2012................................ Aa2* 539 1,950 Rosemount (City of), MN, 5.70%, Ind School Dist #196 Zero Coupon General Obligation Ser A MBIA Insured 04/01/2015 (d).................................. AA+ 1,182 500 St. Paul (City of), MN, 5.00%, Ind School Dist #625 General Obligation Ser B 02/01/2011................................ AA+ 551 1,000 University of MN (Regents of), 5.75%, General Obligation Ser A 07/01/2018...... AA 1,166 -------- 14,326 -------- HEALTH CARE/SERVICES -- 10.4% 330 Minneapolis (City of), MN, 6.00%, Health Care Fac Rev Shelter Care Foundation Ser A 04/01/2010..................... NR 327 250 Minneapolis (City of), MN, 6.00%, Health Care Sys Rev Allina Health Sys Ser A 11/15/2018...................................... A3* 269 1,000 Minnesota (State of) Agriculture and Economic Dev Board, 5.25%, Healthcare Fac Rev Benedictine Health Ser A 02/15/2014...................................... AAA 1,093 250 Rochester (City of), MN, 5.80%, Health Care Fac Rev Mayo Foundation/Mayo Medical Center Ser I 11/15/2007................. AA 279
The accompanying notes are an integral part of this financial statement. 122 --------------------------------------------------------------------------------
STANDARD AND POOR'S PRINCIPAL RATING MARKET AMOUNT (UNAUDITED) VALUE(B) --------- ----------- -------- MUNICIPAL BONDS -- (CONTINUED) HEALTH CARE/SERVICES -- (CONTINUED) $ 500 Rochester (City of), MN, 5.90%, Health Care Fac Rev Mayo Foundation/Mayo Medical Center Ser I 11/15/2010................. AA $ 572 1,000 Waconia (City of), MN, 6.10%, Health Care Fac Rev Ridgeview Med Ctr Proj Ser A Asset Guaranty Secured 01/01/2019.... AA 1,110 250 Willmar (City of), MN, 5.00%, Rice Memorial Hosp Proj FSA Insured 02/01/2025...................................... Aaa* 254 -------- 3,904 -------- HIGHER EDUCATION (UNIV., DORMS, ETC.) -- 5.5% 1,000 Minnesota (State of), 5.375%, Higher Ed Fac Auth Rev General Obligation University of St. Thomas Ser 4-P 04/01/2018...................................... A2* 1,045 1,000 Minnesota (State of), 5.40%, Higher Ed Fac Auth Rev General Obligation University of St. Thomas Ser 4-P 04/01/2023...................................... A2* 1,023 -------- 2,068 ======== HOUSING (HFA'S, ETC.) -- 9.0% 695 Minneapolis (City of), MN, 7.10%, Redev Mtg Rev Riverplace Proj Ser A 01/01/2020...................................... A2* 697 1,000 Minnesota Housing Finance Agency, 5.00%, Residential Housing Finance Ser E 01/01/2020...................................... AA+ 1,008 750 Sartell (City of), MN, 5.20%, Environmental Impt Rev Ref Ser A 06/01/2027...................................... BBB 725 1,000 Washington (County of), MN, 4.60%, Housing and Redev Auth Governmental Rev Ref-Woodland Park Apartment Proj 04/01/2022..... AA 956 -------- 3,386 --------
STANDARD AND POOR'S PRINCIPAL RATING MARKET AMOUNT (UNAUDITED) VALUE(B) --------- ----------- -------- MISCELLANEOUS -- 6.1% $ 800 Children's Trust Fund, 5.625%, Puerto Rico Tobacco Settlement Rev Asset Backed Bonds 05/15/2043......................... BBB $ 695 1,000 Golden Valley (City of), MN, 5.875%, Breck School Proj Rev 10/01/2019........ A2* 1,077 500 St. Paul (City of), MN, 5.00%, Port Auth Lease Rev Office Bldg 12/01/2019...................................... AA+ 523 -------- 2,295 -------- POLLUTION CONTROL -- 2.0% 750 International Falls (City of), MN, 7.20%, Environmental Fac Rev Ref Boise Cascade Corp Proj 10/01/2024............................ Ba2* 761 -------- PUBLIC FACILITIES -- 2.1% 835 Minnesota State Agricultural Society, 5.125%, State Fair Rev 09/15/2023............... A- 803 -------- REFUNDED WITH U.S. GOV'T SECURITIES -- 1.4% 500 Red Wing (City of), MN, 6.50%, Elderly Housing Fac Rev River Region Obligation Group Ser C 09/01/2022 (Prerefunded 09/01/2005 @ 100)............................... NR 510 -------- TRANSPORTATION -- 3.0% 1,000 Puerto Rico Commonwealth Highway & Transportation Auth, 5.50%, Highway Rev Ref Ser W FSA Insured 07/01/2013...................................... AAA 1,150 -------- UTILITIES -- ELECTRIC -- 10.7% 1,000 Northern MN Municipal Power Agency, 5.30%, Elec Sys Rev FSA Insured 01/01/2021...... AAA 1,056 1,295 Northern MN Municipal Power Agency, 6.94%, Zero Coupon Elec Sys Rev Ref Ser A AMBAC Insured 01/01/2011 (d).......................... AAA 990 960 Rochester (City of), MN, 4.375%, Elec Utility Rev Ser A AMBAC Insured 12/01/2016...................................... Aaa* 977
The accompanying notes are an integral part of this financial statement. 123 THE HARTFORD TAX-FREE MINNESOTA FUND SCHEDULE OF INVESTMENTS -- (CONTINUED) OCTOBER 31, 2003 (000'S OMITTED) --------------------------------------------------------------------------------
STANDARD AND POOR'S PRINCIPAL RATING MARKET AMOUNT (UNAUDITED) VALUE(B) --------- ----------- -------- MUNICIPAL BONDS -- (CONTINUED) UTILITIES -- ELECTRIC -- 10.7% -- (CONTINUED) $1,000 Western Minnesota Municipal Power Agency, 5.00%, Ser A MBIA Insured 01/01/2030............ Aaa* $ 1,010 -------- 4,033 -------- UTILITIES -- WATER AND SEWER -- 3.1% 1,000 Puerto Rico Commonwealth Aqueduct & Sewer Auth, 6.25%, Rev Ref 07/01/2013....................... A- 1,176 -------- Total municipal bonds (cost $34,344).................................. $ 36,233 ======== SHORT-TERM INVESTMENTS -- 2.7% FINANCE -- 2.7% 1,013 State Street Bank Tax Free Money Market, Current rate -- 0.52%................................................ $ 1,013 -------- Total short-term investments (cost $1,013)................................................ $ 1,013 ======== Total investments in securities (cost $35,357) (a)........................................... $ 37,246 ========
(a) At October 31, 2003, the cost of securities for income tax purposes is $35,357 and the aggregate gross unrealized appreciation and depreciation based on that cost was: Unrealized appreciation.......................... $2,146 Unrealized depreciation.......................... (257) ------ Net unrealized appreciation...................... $1,889 ======
(b) See Note 2b of accompanying Notes to Financial Statements regarding valuation of securities. (c) Note: Percentage of investments as shown is the ratio of the total market value to total net assets. (d) The interest rate disclosed for these securities represents the effective yield on the date of acquisition. * Moody's Rating. STATEMENT OF ASSETS AND LIABILITIES: ASSETS Investments in securities, at value (cost $35,357)... $37,246 Receivables: Fund shares sold................................... 14 Dividends and interest............................. 471 Other assets......................................... 17 ------- Total assets......................................... 37,748 ------- LIABILITIES Payables: Fund shares redeemed............................... $ @@ Payable for investment advisory and management fees (Note 3)......................................... 23 Payable for distribution fees (Note 3)............. 1 Accrued Expenses..................................... 8 ------- Total liabilities.................................... 32 ------- Net assets, at value................................. $37,716 ======= SUMMARY OF NET ASSETS: Capital stock and paid-in-capital, par value $0.001 per share; 19,250,000 shares authorized; 3,588 shares outstanding................................. $35,457 Accumulated undistributed net investment income...... 10 Accumulated net realized gain on investments......... 360 Unrealized appreciation of investments in securities......................................... 1,889 ------- Net assets........................................... $37,716 =======
Class A Net asset value per share ($3,242 / 310 shares outstanding)................. $10.46 ------ Maximum offering price per share ($10.46 / 95.5%)... $10.95 ====== Class B Net asset value per share ($532 / 51 shares outstanding).................... $10.46 ====== Class C Net asset value per share ($414 / 39 shares outstanding).................... $10.48 ------ Maximum offering price per share ($10.48 / 99.0%)... $10.59 ====== Class E Net asset value per share ($29,784 / 2,831 shares outstanding)...................................... $10.52 ------ Maximum offering price per share ($10.52 / 95.5%)... $11.02 ====== Class H Net asset value per share ($155 / 15 shares outstanding).................... $10.51 ====== Class L Net asset value per share ($2,922 / 279 shares outstanding)................. $10.49 ------ Maximum offering price per share ($10.49 / 95.5%)... $10.98 ====== Class M Net asset value per share ($454 / 43 shares outstanding).................... $10.50 ====== Class N Net asset value per share ($212 / 20 shares outstanding).................... $10.50 ====== Class Y Net asset value per share ($1 / @@ shares outstanding)...................................... $10.47 ======
@@Due to the presentation of the financial statements in thousands, the number of shares and/or dollars round to zero. The accompanying notes are an integral part of this financial statement. 124 THE HARTFORD TAX-FREE NATIONAL FUND SCHEDULE OF INVESTMENTS OCTOBER 31, 2003 (000'S OMITTED) --------------------------------------------------------------------------------
STANDARD AND POOR'S PRINCIPAL RATING MARKET AMOUNT (UNAUDITED) VALUE(B) --------- ----------- -------- MUNICIPAL BONDS -- 95.9% ALABAMA -- 2.4% $1,855 Huntsville (City of), AL, 5.25%, General Obligation Ser A 05/01/2022 (General Obligations)........................... AA $ 1,944 ------- ALASKA -- 0.7% 500 Anchorage (City of), AK, 5.50%, General Obligation Ser A MBIA Insured 06/01/2019 (General Obligations)................ AAA 544 ------- ARIZONA -- 5.3% 1,800 Phoenix (City of), AZ, 6.25%, General Obligation Ref Ser A 07/01/2017 (General Obligations)........................... AA+ 2,203 500 Sundance Community Fac Dist, AZ, 7.125%, Assessment Dist Special Assessment Rev #2 07/01/2027 (Public Facilities)............... NR 501 1,225 Tucson (City of), AZ, 5.50%, Water Rev Ref 07/01/2014 (Utilities -- Water and Sewer)................................ A+ 1,394 200 Vistancia Community Fac Dist, AZ, 6.75%, General Obligation 07/15/2022 (General Obligations).................................... NR 202 ------- 4,300 ------- CALIFORNIA -- 12.6% 750 California (State of), 5.25%, General Obligation 02/01/2033 (General Obligations).................................... BBB 736 80 California (State of), 5.50%, Dept Water Res Rev Ser W 12/01/2010 (Escrowed to Maturity) (Utilities -- Water and Sewer).......................................... AA 93 750 California (State of), 5.875%, Dept Water Res Power Supply Rev Ser A 05/01/2016 (Utilities -- Combined).............. BBB+ 827 500 California (State of), 6.75%, General Obligation 08/01/2011 (General Obligations).................................... BBB 592
STANDARD AND POOR'S PRINCIPAL RATING MARKET AMOUNT (UNAUDITED) VALUE(B) --------- ----------- -------- CALIFORNIA -- (CONTINUED) $ 250 Capistrano (City of), CA, 5.875%, Unified School Dist Comm Fac Dist Special Tax #90-2 Talega 09/01/2021 (Public Facilities)..................................... NR $ 246 250 Capistrano (City of), CA, 5.90%, Unified School Dist Comm Fac Dist Special Tax #90-2 Talega 09/01/2020 (Public Facilities)..................................... NR 247 95 Eastern California Municipal Water Dist, 5.70%, Comm Fac Special Tax Improvement Area A #2001-02 09/01/2018 (Utilities -- Water and Sewer).......................................... NR 92 1,000 Golden State Tobacco Securitization Corp., 5.50%, California Tobacco Settlement Rev Enhanced Asset Backed Ser B 06/01/2033 (Miscellaneous)................................. BBB- 966 400 Golden State Tobacco Securitization Corp., 6.625%, California Tobacco Settlement Rev Ser 2003-A1 06/01/2040 (Miscellaneous).............. BBB 356 40 Indio (City of), CA, 6.35%, Public Improvement Act 1915 Special Assessment #2002-3 09/02/2027 (General Obligations).................................... NR 38 400 Jurupa (City of), CA, 5.875%, Comm Services Dist #6 Special Tax Ser A 09/01/2032 (Public Facilities).................. NR 388 750 Lathrop (City of), CA, 6.00%, Financing Auth Rev Water Supply Proj 06/01/2035 (Utilities -- Water and Sewer)....... NR 734 500 Moreno Valley (City of), CA, 6.00%, Unified School Dist Comm Fac Dist Special Tax #2002-1 09/01/2022 (Public Facilities)...... NR 492 495 Perris (City of), CA, 6.25%, Public Financing Auth Local Agency Rev Ser A 09/01/2033 (General Obligations).......... NR 490
The accompanying notes are an integral part of this financial statement. 125 THE HARTFORD TAX-FREE NATIONAL FUND SCHEDULE OF INVESTMENTS -- (CONTINUED) OCTOBER 31, 2003 (000'S OMITTED) --------------------------------------------------------------------------------
STANDARD AND POOR'S PRINCIPAL RATING MARKET AMOUNT (UNAUDITED) VALUE(B) --------- ----------- -------- MUNICIPAL BONDS -- (CONTINUED) CALIFORNIA -- (CONTINUED) $ 500 San Diego (City of), CA, 5.25%, Redev Agency Centre City Sub Pkg Ser B 09/01/2026 (Land Development)................... Baa2* $ 482 4,000 Southern California Public Power Auth, 6.36%, Zero Coupon Transmission Proj Rev 07/01/2013(d) (Utilities -- Electric)........... A+ 2,635 800 Val Verde (City of), CA, 6.00%, Unified School Dist Financing Auth Special Tax Rev Jr Lien 10/01/2021 (Public Facilities)..................................... NR 784 ------- 10,198 ------- FLORIDA -- 5.3% 1,000 Collier (County of), FL, 5.375%, School Board Certificate of Participation FSA Insured 02/15/2020 (Public Facilities)..................................... Aaa* 1,071 500 Colonial Country Club Community Dev Dist, FL, 6.40%, Cap Improvement Rev 05/01/2033(e) (Public Facilities)..................................... NR 509 1,250 Florida (State of), 5.375%, Dept of Environmental Protection Preservation Rev Ser A MBIA Insured 07/01/2015 (Pollution Control)............................. AAA 1,385 500 Gateway Services, 5.50%, Comm Dev Dist of FL Special Assessment Sun City Center Fort Meyers Proj Ser B 05/01/2010 (Miscellaneous)...................... NR 499 750 Miami (City of), FL, 5.50%, Homeland Defense General Obligation MBIA Insured 01/01/2020 (General Obligations)........ AAA 806 ------- 4,270 ------- GEORGIA -- 5.7% 1,105 Fulton (County of), GA, 5.375%, School Dist General Obligation 01/01/2018 (General Obligations)................ AA 1,245
STANDARD AND POOR'S PRINCIPAL RATING MARKET AMOUNT (UNAUDITED) VALUE(B) --------- ----------- -------- GEORGIA -- (CONTINUED) $1,765 Fulton (County of), GA, 6.375%, Water & Sewer Rev FGIC Insured 01/01/2014 (Escrowed to Maturity) (Utilities -- Water and Sewer).................. AAA $ 2,124 35 Fulton (County of), GA, 6.375%, Water & Sewer Rev FGIC Insured 01/01/2014 (Unrefunded) (Utilities -- Water and Sewer).......................................... AAA 42 40 Georgia (State of), 6.50%, Municipal Elec Auth Power Rev Ser Y 01/01/2017 (Escrowed to Maturity) (Utilities -- Electric)......................... A 49 960 Georgia (State of), 6.50%, Municipal Elec Auth Power Rev Ser Y 01/01/2017 (Unrefunded) (Utilities -- Electric)....................................... A 1,167 ------- 4,627 ------- HAWAII -- 0.7% 500 Hawaii (State of), 5.50%, General Obligation Ref Ser CY 02/01/2011 (General Obligations)........................... AAA 567 ------- ILLINOIS -- 5.0% 960 Chicago (City of), IL, 5.25%, Board of Educ General Obligation Ser A MBIA Insured 12/01/2019 (General Obligations)... AAA 1,024 500 Illinois (State of), 5.70%, Educ Fac Auth Rev Ref Augustana College Ser A 10/01/2032 (Higher Education (Univ., Dorms, etc.))................................... Baa1* 499 500 Round Lake (City of), IL, 6.70%, Special Tax Rev 03/01/2033 (Public Facilities)..................................... NR 516 1,000 Wauconda (City of), IL, 6.625%, Special Service Area #1 Special Tax Liberty Lakes Proj 03/01/2033 (Miscellaneous)... NR 972
The accompanying notes are an integral part of this financial statement. 126 --------------------------------------------------------------------------------
STANDARD AND POOR'S PRINCIPAL RATING MARKET AMOUNT (UNAUDITED) VALUE(B) --------- ----------- -------- MUNICIPAL BONDS -- (CONTINUED) ILLINOIS -- (CONTINUED) $1,000 Yorkville (City of), IL, 6.875%, United City Special Svc Area Special Tax #2003-100 Raintree Village Proj 03/01/2033 (Land Development).................................... NR $ 1,009 ------- 4,020 ------- KENTUCKY -- 1.3% 1,000 Christian (County of), KY, 6.00%, Hosp Rev Ref Jennie Stuart Medical Ser A 07/01/2013 (Health Care/ Services)....................................... A- 1,047 ------- LOUISIANA -- 0.6% 500 Louisiana (State of), 5.50%, Public Fac Auth Rev Ochsner Clinic Foundation Proj Ser B 05/15/2027 (General Obligations).................................... A3* 502 ------- MARYLAND -- 3.6% 1,000 Maryland (State of), 5.00%, Economic Dev Corp. Student Housing Rev Salisbury University Proj 06/01/2034 (Higher Education (Univ., Dorms, etc.))................. Baa3* 894 1,000 Maryland (State of), 5.375%, Economic Dev Corp. Student Housing Rev Bowie State University Proj 06/01/2033 (Higher Education (Univ., Dorms, etc.))................. Baa3* 942 1,000 Maryland (State of), 6.50%, Economic Dev Corp. Student Housing Rev University of Maryland College Park Proj 06/01/2027 (Higher Education (Univ., Dorms, etc.)).......................................... Baa3* 1,061 ------- 2,897 ------- MASSACHUSETTS -- 1.3% 940 Massachusetts (State of), 5.25%, General Obligation Consolidated Loan Ser B 03/01/2021 (Unrefunded) (General Obligations).................................... AAA 986
STANDARD AND POOR'S PRINCIPAL RATING MARKET AMOUNT (UNAUDITED) VALUE(B) --------- ----------- -------- MASSACHUSETTS -- (CONTINUED) $ 60 Massachusetts (State of), 5.25%, General Obligation Consolidated Loan Ser B FSA Insured 03/01/2021 (Prerefunded 03/01/2012 @ 100) (Refunded with U.S. Gov't Securities).... AAA $ 68 ------- 1,054 ------- MICHIGAN -- 6.1% 500 Detroit (City of), MI, 5.50%, General Obligation MBIA Insured 04/01/2020 (General Obligations)................ AAA 544 1,750 Detroit (City of), MI, 6.50%, Water Supply Sys Ref Rev FGIC Insured 07/01/2015 (Utilities -- Water and Sewer)....... AAA 2,150 1,000 Macomb (County of), MI, 5.75%, Hosp Financial Auth Rev MT. Clemens General Hospital Ser B 11/15/2025 (Health Care/Services).................................. BBB- 950 750 Michigan (State of), 5.50%, Strategic Fund Ltd. Rev Ref Dow Chemical Proj AMT 12/01/2028 (General Obligations)....... A- 786 500 Michigan (State of), 5.625%, Hosp Fin Auth Rev Ref Henry Ford Health Sys Ser A 03/01/2017 (Health Care/Services)..... A- 518 ------- 4,948 ------- MINNESOTA -- 2.2% 750 Minneapolis (City of), MN, 6.00%, Health Care Sys Rev Allina Health Sys Ser A 11/15/2018 (Health Care/ Services)............ A3* 807 1,000 Minnesota Housing Finance Agency, 5.00%, Residential Housing Finance Ser E 01/01/2020 (Housing (HFA's, etc.)).............. AA+ 1,008 ------- 1,815 -------
The accompanying notes are an integral part of this financial statement. 127 THE HARTFORD TAX-FREE NATIONAL FUND SCHEDULE OF INVESTMENTS -- (CONTINUED) OCTOBER 31, 2003 (000'S OMITTED) --------------------------------------------------------------------------------
STANDARD AND POOR'S PRINCIPAL RATING MARKET AMOUNT (UNAUDITED) VALUE(B) --------- ----------- -------- MUNICIPAL BONDS -- (CONTINUED) MISSISSIPPI -- 0.4% $ 250 Lowndes (County of), MS, 6.80%, Solid Waste Disposal & Pollution Control Rev Ref Weyerhaeuser Co. Proj Ser A 04/01/2022 (Pollution Control)............................. BBB $ 285 ------- MISSOURI -- 0.6% 500 Missouri (State of), 5.50%, State Dev Financial Board Infrastructure Fac Rev Branson Ser A 12/01/2032 (Public Facilities)..................................... BBB+ 501 ------- NEVADA -- 1.8% 1,000 Henderson (City of), NV, 5.80%, Local Impt Dists #T-14 03/01/2023 (Miscellaneous)................................. NR 972 500 North Las Vegas (City of), NV, 6.40%, Local Special Improvement Dist #60 Aliante 12/01/2022 (Land Development)........... NR 506 ------- 1,478 ------- NEW HAMPSHIRE -- 0.9% 750 New Hampshire (State of), 5.60%, Health & Ed Fac Auth Rev Elliot Hospital Ser B 10/01/2022 (Health Care/Services)......... BBB+ 728 ------- NEW JERSEY -- 3.8% 750 New Jersey (State of), 5.125%, Educ Fac Auth Rev Stevens Institute of Technology Ser C 07/01/2022 (Higher Education (Univ., Dorms, etc.))........................... A- 748 1,000 New Jersey (State of), 5.50%, Health Care Fac Financing Auth Rev Somerset Medical Center 07/01/2023 (Health Care/Services).................................. Baa2* 975 275 New Jersey (State of), 6.00%, Educ Fac Auth Rev Fairleigh Dickinson University Ser D 07/01/2025 (Higher Education (Univ., Dorms, etc.))........................... NR 278
STANDARD AND POOR'S PRINCIPAL RATING MARKET AMOUNT (UNAUDITED) VALUE(B) --------- ----------- -------- NEW JERSEY -- (CONTINUED) $ 500 New Jersey (State of), 6.50%, Ed Fac Auth Rev Georgian Court College Proj C 07/01/2033 (Higher Education (Univ., Dorms, etc.))................................... BBB+ $ 540 500 New Jersey (State of), 6.50%, Health Care Fac Financing Auth Rev Pascack Valley Hosp Assoc 07/01/2023 (Health Care/ Services)................................. BB+ 497 ------- 3,038 ------- NEW YORK -- 5.8% 250 Dutchess (County of), NY, 5.00%, Industrial Dev Agency Civic Fac Rev Ref Marist College Ser A 07/01/2022 (Higher Education (Univ., Dorms, etc.)).......................................... Baa1* 248 195 Monroe (County of), NY, 6.00% Industrial Dev Agency Civic Fac Rev Cloverwood Senior Living Ser A 05/01/2013 (General Obligations)........................... NR 191 70 Monroe (County of), NY, 6.75%, Industrial Dev Agency Civic Fac Rev Cloverwood Senior Living Ser A 05/01/2023 (General Obligations).......... NR 70 260 New York (City of), NY, 5.25%, Industrial Dev Agency Civic Fac Rev American Council Learned Societie 07/01/2027 (Industrial).................................... A1* 267 400 New York (City of), NY, 5.65%, Industrial Dev Agency Rev Brooklyn Navy Yard Cogen Partners AMT 10/01/2028 (Industrial).................................... BBB- 356 1,000 New York (City of), NY, 5.75%, General Obligation Fiscal 2003 Ser I 03/01/2019 (General Obligations)................ A 1,075 425 New York (City of), NY, 8.25%, General Obligation Ser B 06/01/2005 (Escrowed to Maturity) (General Obligations).... A 468
The accompanying notes are an integral part of this financial statement. 128 --------------------------------------------------------------------------------
STANDARD AND POOR'S PRINCIPAL RATING MARKET AMOUNT (UNAUDITED) VALUE(B) --------- ----------- -------- MUNICIPAL BONDS -- (CONTINUED) NEW YORK -- (CONTINUED) $ 575 New York (City of), NY, 8.25%, General Obligation Ser B 06/01/2005 (General Obligation)............................ A $ 634 1,000 Triborough Bridge & Tunnel Auth of NY, 5.125%, Rev Ref General Obligation Ser B 11/15/2029 (Transportation)..................... AA- 1,012 400 Westchester (County of), NY, 6.375%, Industrial Dev Agency Continuing Care Retirement Mtg/Kendal on Hudson Proj A 01/01/2024 (Health Care/Services).................................. NR 396 ------- 4,717 ------- NORTH CAROLINA -- 1.3% 500 North Carolina Eastern Municipal Power Agency, 5.375%, Power Sys Rev Ref Ser C 01/01/2017 (Utilities -- Electric)......................... BBB 518 500 North Carolina Municipal Power Agency #1, 5.50%, Catawba Elec Rev Ser A 01/01/2014 (Utilities -- Electric)......................... BBB+ 537 ------- 1,055 ------- OHIO -- 3.8% 1,045 Cincinnati (City of), OH, 5.50%, Water Sys Rev 12/01/2011 (Utilities -- Water and Sewer)................................ AA+ 1,191 300 Cuyahoga (County of), OH, 5.50%, Rev Ref Class A 01/01/2029 (Miscellaneous)...................... A 306 1,270 Hamilton (City of), OH, 6.15%, School Dist Improvement Ser A 12/01/2016 (General Obligations)........................... AA- 1,552 ------- 3,049 ------- PENNSYLVANIA -- 5.3% 750 Carbon (County of), PA, 6.65%, Industrial Dev Auth Ref Panther Creek Partners Proj AMT 05/01/2010 (Industrial)....... BBB- 805
STANDARD AND POOR'S PRINCIPAL RATING MARKET AMOUNT (UNAUDITED) VALUE(B) --------- ----------- -------- PENNSYLVANIA -- (CONTINUED) $1,000 Lehigh (County of), PA, 5.375%, General Purpose Auth Rev Saint Lukes Bethlehem Hospital 08/15/2033 (Health Care/ Services)....................................... BBB $ 951 1,000 Pennsylvania (State of), 5.25%, Higher Educational Fac Auth Rev Widener University 07/15/2024 (Higher Education (Univ., Dorms, etc.))................................... BBB+ 986 1,000 Philadelphia (City of), PA, 5.00%, General Obligation 03/15/2028 (General Obligations)..... AAA 1,007 500 Susquehanna Area Regional Airport, PA, 5.375%, Auth Sys Rev Sub Ser D 01/01/2018 (Airport Revenues).............................. Baa2* 487 ------- 4,236 ------- RHODE ISLAND -- 1.6% 1,000 Rhode Island (State of), 5.00%, Clean Water Finance Agency Water Pollution Control Rev Fund Pooled Loan Issue B 10/01/2022 (Utilities -- Water and Sewer)....... AAA 1,031 250 Rhode Island (State of), 6.50%, Health & Educ Building Corp. Rev Hosp Financing-Lifespan Obligation Group 08/15/2032 (Health Care/Services).......................... BBB 252 ------- 1,283 ------- SOUTH CAROLINA -- 1.5% 1,000 Piedmont Municipal Power Agency, SC, 6.25%, Elec Rev Ref FGIC Insured 01/01/2021 (Utilities -- Electric)......................... AAA 1,188 ------- TENNESSEE -- 0.6% 500 McMinn (County of), TN, 7.625%, Industrial Dev Board Pollution Control Rev Calhoun Newsprint Co. Proj AMT 03/01/2016 (Pollution Control)..... BB+ 500 -------
The accompanying notes are an integral part of this financial statement. 129 THE HARTFORD TAX-FREE NATIONAL FUND SCHEDULE OF INVESTMENTS -- (CONTINUED) OCTOBER 31, 2003 (000'S OMITTED) --------------------------------------------------------------------------------
STANDARD AND POOR'S PRINCIPAL RATING MARKET AMOUNT (UNAUDITED) VALUE(B) --------- ----------- -------- MUNICIPAL BONDS -- (CONTINUED) TEXAS -- 4.7% $1,000 Clear Creek (City of), TX, 5.00%, Ind School Dist Ref General Obligation PSFG 02/15/2018 (General Obligations).................................... AAA $ 1,048 750 Houston (City of), TX, 5.50%, Water & Sewer Rev Ref Jr Lien Ser A 12/01/2013 (Utilities -- Water and Sewer)....... AAA 841 500 Sam Rayburn Municipal Power Agency, TX, 5.50%, Rev Ref 10/01/2010 (Utilities -- Electric)......................... BBB- 538 350 San Antonio (City of), TX, 5.25%, Elec & Gas Rev Ref Ser A 02/01/2014 (Prerefunded 02/01/2009 @ 101) (Refunded with U.S. Gov't Securities)...... AAA 398 1,000 Tyler (City of), TX, 5.75%, Health Fac Dev Corp Hosp Rev Mother Frances Hospital 07/01/2027 (Health Care/Services).................................. Baa1* 992 ------- 3,817 ------- UTAH -- 2.0% 1,000 Utah (State of), 5.00%, Transportation Auth Sales Tax Rev Ser A FSA Insured 06/15/2025 (Transportation)......... AAA 1,007 500 Utah (State of), 5.375%, General Obligation Ref Ser B 07/01/2011 (General Obligations)........................... AAA 567 ------- 1,574 ------- VIRGINIA -- 2.6% 1,000 Peninsula Ports Auth of VA, 6.00%, Port Fac CSX Transportation Proj Rev Ref 12/15/2012 (Transportation)................................ Baa2* 1,076 1,000 Virginia (State of), 5.00%, Port Auth Commonwealth Rev AMT 07/01/2027 (Transportation)................................ AA+ 982 ------- 2,058 -------
STANDARD AND POOR'S PRINCIPAL RATING MARKET AMOUNT (UNAUDITED) VALUE(B) --------- ----------- -------- WASHINGTON -- 0.9% $ 670 King (County of), WA, 5.00%, Ind School Dist #210 General Obligation 06/01/2019 (General Obligations)................ AA+ $ 695 ------- WISCONSIN -- 5.5% 1,000 Badger Tobacco Asset Securitization Corp. of WI, 6.375%, 06/01/2032 (Miscellaneous).............. BBB 867 1,305 Sparta (City of), WI, 5.90%, School Dist Ref General Obligation FGIC Insured 03/01/2016 (Prerefunded 03/01/2010 @ 100) (Refunded with U.S. Gov't Securities)...... Aaa* 1,528 500 Wisconsin (State of), 4.85%, Housing & Economic Dev Auth General Obligation Home Ownership Rev Ser G 09/01/2017 (Housing (HFA's, etc.))......................... AA 514 1,500 Wisconsin (State of), 6.40%, Health & Educational Fac Auth Rev Aurora Health Care 04/15/2033 (Higher Education (Univ., Dorms, etc.))................................... BBB+ 1,539 ------- 4,448 ------- Total municipal bonds (cost $74,031).................................. $77,383 ======= SHARES --------- SHORT-TERM INVESTMENTS -- 2.0% FINANCE -- 2.0% 1,643 State Street Bank Tax Free Money Market........................ $ 1,643 ------- Total short-term investments (cost $1,643)................................................ $ 1,643 ======= Total investments in securities (cost $75,674)(a)............................................ $79,026 =======
The accompanying notes are an integral part of this financial statement. 130 -------------------------------------------------------------------------------- (a) At October 31, 2003, the cost of securities for income tax purposes is $75,674 and the aggregate gross unrealized appreciation and depreciation based on that cost was:
Unrealized appreciation.......................... $3,786 Unrealized depreciation.......................... (434) ------ Net unrealized appreciation...................... $3,352 ======
(b) See Note 2b of accompanying Noes to Financial Statements regarding valuation of securities. (c) Note: Percentage of investments as shown is the ratio of the total market value to total net assets. (d) The interest rate disclosed for these securities represents the effective yield on the date of acquisition. (e) Securities sold within the terms of a private placement memorandum, exempt from registration under Section 144A of the Securities Act of 1933, as amended, and may be sold only to dealers in that program or to other "accredited investors". Pursuant to guidelines adopted by the Board of Directors, these issues are determined to be liquid. The aggregate value of these securities at October 31, 2003, was $509, which represents 0.63% of net assets. * Moody's Rating.
STATEMENT OF ASSETS AND LIABILITIES: ASSETS Investments in securities, at value (cost $75,674)... $79,026 Receivables: Fund shares sold................................... 487 Dividends and interest............................. 1,231 Other assets......................................... 87 ------- Total assets......................................... 80,831 ------- LIABILITIES Payables: Fund shares redeemed............................... 74 Payable for investment advisory and management fees (Note 3)......................................... 52 Payable for distribution fees (Note 3)............. 3 Accrued Expenses..................................... 17 ------- Total liabilities.................................... 146 ------- Net assets, at value................................. $80,685 ======= SUMMARY OF NET ASSETS: Capital stock and paid-in-capital, par value $0.001 per share; 19,250,000 shares authorized; 7,304 shares outstanding................................. $76,494 Accumulated undistributed net investment income...... 32 Accumulated net realized gain on investments......... 807 Unrealized appreciation of investments in securities......................................... 3,352 ------- Net assets........................................... $80,685 =======
Class A Net asset value per share ($21,457 / 1,939 shares outstanding)...................................... $11.07 ------ Maximum offering price per share ($11.07 / 95.5%)... $11.59 ====== Class B Net asset value per share ($6,598 / 600 shares outstanding)...................................... $11.00 ====== Class C Net asset value per share ($7,588 / 688 shares outstanding)...................................... $11.02 ------ Maximum offering price per share ($11.02 / 99.0%)..... $11.13 ====== Class E Net asset value per share ($33,998 / 3,076 shares outstanding)...................................... $11.05 ------ Maximum offering price per share ($11.05 / 95.5%)..... $11.57 ====== Class H Net asset value per share ($1,747 / 158 shares outstanding)...................................... $11.03 ====== Class L Net asset value per share ($7,454 / 676 shares outstanding)...................................... $11.04 ------ Maximum offering price per share ($11.04 / 95.5%)..... $11.56 ====== Class M Net asset value per share ($1,235 / 112 shares outstanding)...................................... $11.03 ====== Class N Net asset value per share ($607 / 55 shares outstanding)...................................... $11.01 ====== Class Y Net asset value per share ($1 / @@ shares outstanding)...................................... $11.06 ======
@@ Due to the presentation of the financial statements in thousands, the number or shares and/or dollars round to zero. The accompanying notes are an integral part of this financial statement. 131 THE HARTFORD TAX-FREE NEW YORK FUND SCHEDULE OF INVESTMENTS OCTOBER 31, 2003 (000'S OMITTED) --------------------------------------------------------------------------------
STANDARD AND POOR'S PRINCIPAL RATING MARKET AMOUNT (UNAUDITED) VALUE(B) --------- ----------- -------- MUNICIPAL BONDS -- 97.1% GENERAL OBLIGATIONS -- 17.6% $450 Elmira (City of), NY, 4.75%, School Dist General Obligation FGIC Insured 06/15/2020.............................. AAA $ 459 450 Holbrook (City of), NY, 5.00%, Sachem Central School Dist General Obligation Ser B MBIA Insured 10/15/2029........ AAA 455 450 Mahopac (City of), NY, 5.00%, Central School Dist General Obligation Ref Ser A MBIA Insured 06/01/2019............... Aaa* 471 100 Monroe (County of), NY, 6.75%, Industrial Dev Agency Civic Fac Rev Cloverwood Senior Living Ser A 05/01/2023....... NR 101 425 New York (City of), NY, 5.75%, General Obligation Fiscal 2003 Ser I 03/01/2019...................................... A 457 ------- 1,943 ------- HEALTH CARE/SERVICES -- 6.9% 200 New York (State of), 5.00%, Dorm Auth Rev Memorial Sloan-Kettering Center Ser 1 07/01/2034......................... AA 199 450 New York (State of), 5.00%, Dorm Auth Rev Mental Health Services Fac Ser B 02/15/2018................................ AA- 461 100 Westchester (County of), NY, 6.375%, Industrial Dev Agency Continuing Care Retirement Mtg-Kendal on Hudson Proj A 01/01/2024............................... NR 99 ------- 759 ------- HIGHER EDUCATION (UNIV., DORMS, ETC.) -- 28.5% 250 Dutchess (County of), NY, 5.00%, Industrial Dev Agency Civic Fac Rev Ref Marist College Ser A 07/01/2022................. Baa1 248 450 New York (State of), 5.00%, Dorm Auth Lease Rev State Univ Dorm Fac 07/01/2032...................................... AA- 446 190 New York (State of), 5.00%, Dorm Auth Rev Fordham University FGIC Insured 07/01/2020.............................. AAA 197 400 New York (State of), 5.00%, Dorm Auth Rev Mount St. Mary College Radian Insured 07/01/2027....................... AA 396
STANDARD AND POOR'S PRINCIPAL RATING MARKET AMOUNT (UNAUDITED) VALUE(B) --------- ----------- -------- HIGHER EDUCATION (UNIV., DORMS, ETC.) -- (CONTINUED) $450 New York (State of), 5.125%, Dorm Auth Rev St. Barnabas Ser A FHA Insured AMBAC Insured 02/01/2022................ AAA $ 464 425 New York (State of), 5.50%, Dorm Auth Lease Rev Court Facs Ser A 05/15/2020...................................... A 451 250 New York (State of), 5.50%, Dorm Auth Rev Brooklyn Law School Radian Insured Ser A 07/01/2019........................ AA 267 400 New York (State of), 5.75%, Dorm Auth Rev Cons City University Ser A AMBAC-TCRS Insured 07/01/2013................... AAA 463 200 Otsego (County of), NY, 6.00%, Industrial Dev Agency Civic Fac Rev Hartwick College Proj Ser A 07/01/2011.......... Baa3 219 ------- 3,151 ------- HOUSING (HFA'S, ETC.) -- 4.2% 425 New York (State of), 5.50%, Urban Dev Corp Rev Personal Income Tax Ser C/1 FGIC Insured 03/15/2017................. AAA 468 ------- INDUSTRIAL -- 5.4% 245 New York (City of), NY, 5.25%, Industrial Dev Agency Civic Fac Rev American Council Learned Societie 07/01/2027.... A1* 251 250 New York (City of), NY, 5.25%, Industrial Dev Agency Civic Fac Rev YMCA of Greater NY Proj 08/01/2021................... A- 253 100 New York (City of), NY, 5.65%, Industrial Dev Agency Rev Brooklyn Navy Yard Cogen Partners 10/01/2028.................. BBB- 89 ------- 593 ------- MISCELLANEOUS -- 11.7% 200 Children's Trust Fund, 5.625%, Puerto Rico Tobacco Settlement Rev Asset Backed Bonds 05/15/2043......................... BBB 174 450 New York (City of), NY, 5.00%, Transitional Financial Auth Future Tax Secured C 08/01/2023............................ AA+ 456
The accompanying notes are an integral part of these financial statements. 132 --------------------------------------------------------------------------------
STANDARD AND POOR'S PRINCIPAL RATING MARKET AMOUNT (UNAUDITED) VALUE(B) --------- ----------- -------- MUNICIPAL BONDS -- (CONTINUED) MISCELLANEOUS -- (CONTINUED) $200 New York (City of), NY, 5.50%, Dorm Auth Rev Winthrop South Nassau University 07/01/2023........................... Baa1* $ 201 400 New York (State of), 6.00%, Local Assistance Corp Ref Ser E 04/01/2014...................................... AA- 461 ------- 1,292 ------- POLLUTION CONTROL -- 4.1% 450 New York (State of), 5.00%, Environmental Fac Corp Clean Water Ser C Revolving Funds 07/15/2026...................... AAA 455 ------- PUBLIC FACILITIES -- 4.0% 450 St. Lawrence (County of), NY, 5.00%, Industrial Dev Civic Fac Rev Clarkson University Proj 07/01/2023......... A3* 444 ------- TRANSPORTATION -- 12.4% 450 New York (State of), 5.00%, Triborough Bridge & Tunnel Auth Rev General Purpose Ser A 01/01/2032................ AA- 450 450 New York (State of), 5.125%, Metropolitan Transportation Auth Rev Ser A 11/15/2031.................................... A 452 450 Port Auth of NY & NJ, 5.00%, General Obligation Cons 128th Ser 11/01/2021...................................... AAA 469 ------- 1,371 ------- UTILITIES -- ELECTRIC -- 2.3% 250 New York (State of), 5.30%, Energy Research & Dev Auth Elec Fac Rev Adj Long Island Lighting Co. Proj A 08/01/2025...................................... A- 251 ------- Total municipal bonds (cost $10,653).................................. $10,727 ======= SHARES --------- SHORT-TERM INVESTMENTS -- 1.0% FINANCE -- 1.0% 105 Dreyfus Basic New York Municipal Money Market Fund............................................ $ 105 ------- Total short-term investments (cost $105)....................... $ 105 ======= Total investments in securities (cost $10,758)(a)............................................ $10,832 =======
(a) At October 31, 2003, the cost of securities for federal income tax purposes is $10,758 and the aggregate gross unrealized appreciation and depreciation based on that cost was: Unrealized appreciation........................... $124 Unrealized depreciation........................... (50) ---- Net unrealized appreciation....................... $ 74 ====
(b) See Note 2b of accompanying Notes to Financial Statements regarding valuation of securities. (c) Note: Percentage of investments as shown is the ratio of the total market value to total net assets. * Moody's Rating. STATEMENT OF ASSETS AND LIABILITIES: ASSETS Investments in securities, at value (cost $10,758)... $10,832 Receivables: Fund shares sold................................... 28 Dividends and interest............................. 162 Other assets......................................... 37 ------- Total assets......................................... 11,059 ------- LIABILITIES Payables: Payable for investment advisory and management fees (Note 3)......................................... 5 Payable for distribution fees (Note 3)............. 1 Accrued Expenses..................................... 7 ------- Total liabilities.................................... 13 ------- Net assets........................................... $11,046 =======
SUMMARY OF NET ASSETS: Capital stock and paid-in-capital, par value $0.001 per share; 300,000 shares authorized; 1,088 shares outstanding........................................ $10,856 Accumulated undistributed net investment income...... 27 Accumulated net realized gain on investments......... 89 Unrealized appreciation of investments in securities......................................... 74 ------- Net assets........................................... $11,046 =======
Class A Net asset value per share ($8,602 / 847 shares outstanding)...................................... $10.15 ------ Maximum offering price per share ($10.15 / 95.5%)... $10.63 ====== Class B Net asset value per share ($1,051 / 104 shares outstanding)...................................... $10.15 ====== Class C Net asset value per share ($1,393 / 137 shares outstanding)...................................... $10.15 ====== Maximum offering price per share ($10.15 / 99.0%)... $10.25 ======
The accompanying notes are an integral part of these financial statements. 133 THE HARTFORD TOTAL RETURN BOND FUND SCHEDULE OF INVESTMENTS OCTOBER 31, 2003 (000'S OMITTED) --------------------------------------------------------------------------------
STANDARD AND POOR'S PRINCIPAL RATING MARKET AMOUNT (UNAUDITED) VALUE(C) --------- ----------- -------- MUNICIPAL BONDS -- 0.5% GENERAL OBLIGATIONS -- 0.5% $ 3,000 Illinois (State of), 5.10%, General Obligation Taxable Pension 6/01/2033....................................... AA $ 2,713 -------- Total municipal bonds (cost $3,000)................................... $ 2,713 ======== ASSET BACKED AND COMMERCIAL MORTGAGE SECURITIES -- 7.7% FINANCE -- 7.4% 1,800 American Express Credit Account Master Trust, Inc., 5.95%, Ser 1999-2 Class A 12/15/2006............ AAA 1,845 536 AQ Finance CEB Trust, 6.12%, Ser 2003-CE1A 08/25/2033(e)(h)........... BBB 525 800 Bank One Issuance Trust, 4.77%, Ser 2003-C3 Class C3 02/16/2016.......... BBB 744 1,900 Bear Stearns Commercial Mortgage Securities, Inc., 4.74%, Ser 2003-T10 Class A2 03/13/2040......... AAA 1,887 1,900 Bear Stearns Commercial Mortgage Securities, Inc., 4.83%, Ser 2002-TOP8 Class A2 08/15/2038........ AAA 1,906 1,600 California Infrastructure & Economic Development, 6.38%, Ser 1997-1 Class A6 09/25/2008........... AAA 1,704 960 Capital One Multi-Asset Execution Trust, 3.50%, Ser 2003-B2 Class B2 02/17/2009.......... A 951 640 Citibank Credit Card Issuance Trust, 5.00%, Ser 2003-C4 Class C4 06/10/2015.......... BBB 602 2,850 Citibank Credit Card Master Trust I, 5.50%, Ser 1999-1 Class A 02/15/2006............ AAA 2,885 516 Comed Transitional Funding Trust, 5.44%, Ser 1998-1 Class A5 03/25/2007........... AAA 532 806 CS First Boston Mortgage Securities Corp., 2.079%, Ser 2003-C3 Class A1 05/15/2038......... AAA 789 2,710 Daimler Chrysler Auto Trust, 3.85%, Ser 2002-A Class A 04/06/2006............ AAA 2,752
STANDARD AND POOR'S PRINCIPAL RATING MARKET AMOUNT (UNAUDITED) VALUE(C) --------- ----------- -------- FINANCE -- (CONTINUED) $ 2,375 Discover Card Master Trust, 5.30%, Ser 2001-5 Class A 11/16/2006............ AAA $ 2,424 1,650 Ford Credit Auto Owner Trust, 4.29%, Ser 2003-A Class C 11/15/2007............ BBB 1,660 2,400 Ford Credit Auto Owner Trust, 6.99%, Ser 2000-E Class B 02/15/2005............ AA- 2,415 3,525 Honda Auto Receivables Owner Trust, 1.34%, Ser 2003-2 Class A2 12/21/2005........... AAA 3,523 1,940 LB-UBS Commercial Mortgage Trust, 2.72%, Ser 2003-C1 Class A1 03/15/2027.......... AAA 1,929 1,989 LB-UBS Commercial Mortgage Trust, 3.361%, Ser 2003-C7 Class A1 09/15/2027......... AAA 1,987 1,900 Morgan Stanley Capital Trust I, 4.74%, Ser 2003-TOP9 Class A2 11/13/2036........ AAA 1,887 396 Morgan Stanley Capital Trust I, 5.91%, Ser 1999-WF1 Class A1 11/15/2031......... Aaa* 422 964 Morgan Stanley Dean Witter Capital, I, 4.57%, Ser 2001-IQA Class A1 12/18/2032......... Aaa* 999 750 PP&L Transition Bond Co., 6.83%, Ser 1999-1 Class A5 03/25/2007........... AAA 781 206 Soundview Home Equity Loan Trust, Inc., 8.64%, Ser 2000-1 Class M1 05/25/2030........... AA 226 2,650 Volkswagen Auto Loan Enhanced Trust, 1.11%, Ser 2003-1 Class A2 12/20/2005........... AAA 2,644 1,920 WFS Financial Owner Trust, 2.41%, Ser 2003-2 Class A4 12/20/2008........... AAA 1,896 656 Whole Auto Loan Trust, 6.00%, Ser 2002-1 Class D 04/15/2009(h)......... BB 654 -------- 40,569 --------
The accompanying notes are an integral part of this financial statement. 134 --------------------------------------------------------------------------------
STANDARD AND POOR'S PRINCIPAL RATING MARKET AMOUNT (UNAUDITED) VALUE(C) --------- ----------- -------- ASSET BACKED AND COMMERCIAL MORTGAGE SECURITIES -- (CONTINUED) UTILITIES -- 0.3% $ 1,516 Illinois Power Special Purpose Trust, 5.38%, Ser 1998-1 Class A5 06/25/2007........... AAA $ 1,565 Total asset backed and commercial mortgage securities (cost $42,353)....................... $ 42,134 ======== CORPORATE BONDS: INVESTMENT GRADE -- 33.7% BASIC MATERIALS -- 2.1% 1,240 Champion International Corp., 7.20%, 11/01/2026............................... BBB 1,379 500 Cypress Amax Minerals Co., 8.375%, 02/01/2023.............................. BBB- 493 1,200 Inco Ltd., 7.75%, 05/15/2012............................... BBB- 1,395 420 Olin Corp., 9.125%, 12/15/2011.............................. BBB- 502 800 Placer Dome, Inc., 6.45%, 10/15/2035(h)............................ BBB+ 806 600 Placer Dome, Inc., 7.125%, 06/15/2007.............................. BBB+ 663 1,900 Potlatch Corp., 12.50%, 12/01/2009.............................. Baa3* 2,242 675 Santa Fe Pacific Gold Corp., 8.375%, 07/01/2005.............................. BBB 735 2,000 Union Camp Corp., 7.00%, 08/15/2006............................... BBB 2,206 800 Willamette Industries, Inc., 7.85%, 07/01/2026............................... BBB 894 -------- 11,315 -------- CAPITAL GOODS -- 1.6% 700 General Dynamics Corp., 4.50%, 08/15/2010............................... A 710 1,470 International Game Technology, 7.875%, 05/15/2004.............................. BBB 1,515 550 International Game Technology, 8.375%, 05/15/2009.............................. BBB 656 3,400 Northrop Grumman Corp., 8.625%, 10/15/2004.............................. BBB 3,618 1,045 Rockwell International Corp., 5.20%, 01/15/2098............................... A 764 1,500 Rockwell International Corp., 6.70%, 01/15/2028............................... A 1,629 -------- 8,892 -------- CONSUMER CYCLICAL -- 1.8% 1,200 CRH America, Inc., 6.95%, 03/15/2012............................... BBB+ 1,354 2,040 Diageo Capital plc, 3.375%, 03/20/2008.............................. A 2,023 2,080 Ford Motor Co., 6.625%, 10/01/2028.............................. BBB 1,706
STANDARD AND POOR'S PRINCIPAL RATING MARKET AMOUNT (UNAUDITED) VALUE(C) --------- ----------- -------- CONSUMER CYCLICAL -- (CONTINUED) $ 1,500 General Motors Corp., 7.20%, 01/15/2011........... BBB $ 1,573 1,600 Meyer (Fred), Inc., 7.375%, 03/01/2005............ BBB 1,709 300 Nine West Group, Inc., 8.375%, Ser B 08/15/2005... BBB 327 930 Staples Inc., 7.125%, 08/15/2007.............................. BBB- 1,019 -------- 9,711 -------- CONSUMER STAPLES -- 1.4% 2,200 Cadbury Schweppes Finance, 5.00%, 06/26/2007...... BBB 2,301 625 ConAgra Foods, Inc., 7.00%, 10/01/2028............................... BBB+ 684 2,135 ConAgra Foods, Inc., 7.50%, 09/15/2005............................... BBB+ 2,336 2,200 General Mills, Inc., 2.625%, 10/24/2006.............................. BBB+ 2,183 -------- 7,504 -------- ENERGY -- 3.0% 1,700 Anadarko Petroleum Corp., 5.375%, 03/01/2007...... BBB+ 1,821 370 Burlington Resources Finance Co., 6.50%, 12/01/2011...................................... BBB+ 412 1,885 Burlington Resources Finance Co., 6.68%, 02/15/2011...................................... BBB+ 2,103 1,040 Conoco, Inc., 5.90%, 04/15/2004............................... A- 1,061 1,275 Consolidated Natural Gas Co., 5.375%, Ser B 11/01/2006...................................... BBB+ 1,363 1,100 Consumers Energy Co., 6.25%, 09/15/2006............................... BBB- 1,198 500 Lasmo (USA), Inc., 7.50%, 06/30/2006............................... AA 562 650 Occidental Petroleum Corp., 7.375%, 11/15/2008.... BBB+ 750 830 PanCanadian Petroleum Ltd., 6.30%, 11/01/2011..... A- 915 1,500 PanCanadian Petroleum Ltd., 7.20%, 11/01/2031..... A- 1,710 1,130 Pemex Finance Ltd., 9.69%, Ser 1999-2 Class A1 08/15/2009........... A- 1,329 1,100 Pemex Project Funding Master Trust, 7.875%, 02/01/2009.............................. BBB- 1,232 870 Petro-Canada, 5.35%, 07/15/2033............................... BBB 768 1,150 Repsol International Finance B.V., 7.45%, 07/15/2005...................................... BBB 1,244 -------- 16,468 --------
The accompanying notes are an integral part of this financial statement. 135 THE HARTFORD TOTAL RETURN BOND FUND SCHEDULE OF INVESTMENTS -- (CONTINUED) OCTOBER 31, 2003 (000'S OMITTED) --------------------------------------------------------------------------------
STANDARD AND POOR'S PRINCIPAL RATING MARKET AMOUNT (UNAUDITED) VALUE(C) --------- ----------- -------- CORPORATE BONDS: INVESTMENT GRADE -- (CONTINUED) FINANCE -- 12.7% $ 948 Abbey National plc, 6.69%, 10/17/2005............................... A+ $ 1,031 910 Abbey National plc, 6.70%, 06/29/2049............................... A 1,008 800 ACE INA Holdings, Inc., 8.20%, 08/15/2004............................... BBB+ 839 800 Aetna, Inc., 7.375%, 03/01/2006.............................. BBB 884 1,600 AvalonBay Communities, Inc. (REIT), 8.25%, 07/15/2008............................... BBB+ 1,882 1,300 Bear Stearns Co., Inc., 5.70%, 11/15/2014............................... A 1,350 10,000 Bundesobligation, 3.50%, 10/10/2008............................... Aaa* 11,565 1,450 Chase Manhattan Corp., 7.875%, 06/15/2010.............................. A 1,714 2,400 Credit Suisse First Boston USA, Inc., 6.125%, 11/15/2011.............................. A+ 2,594 700 Duke Realty Corp. (REIT), 5.25%, 01/15/2010............................... BBB+ 726 465 ERAC USA Finance Co., 8.25%, 05/01/2005(h)............................ BBB+ 504 1,100 ERP Operating LP, 6.63%, 04/13/2005............................... BBB+ 1,160 4,420 FleetBoston Financial Corp., 7.25%, 09/15/2005............................... A 4,829 1,050 Fondo Latinoamericano Flar, 3.00%, 08/01/2006(h)............................ A+ 1,043 1,450 Ford Motor Credit Co., 7.00%, 10/01/2013............................... BBB 1,425 1,400 Ford Motor Credit Co., 7.375%, 02/01/2011.............................. BBB 1,425 3,200 General Motors Acceptance Corp., 6.62%, 12/01/2012(f)............................ BBB 1,698 850 Goldman Sachs Group, Inc., 5.25%, 04/01/2013............................... A+ 854 1,650 J.P. Morgan Chase & Co., 5.25%, 05/01/2015............................... A 1,644 4,250 KFW International Finance, Inc., 2.60%, 03/15/2006............................... AAA 4,269 3,570 KFW International Finance, Inc., 3.00%, 09/15/2005............................... AAA 3,612 1,440 Morgan Stanley Dean Witter & Co., 7.75%, 06/15/2005............................... A+ 1,571 750 Prudential Insurance Co. of America, 6.375%, 07/23/2006(h)........................... A+ 822
STANDARD AND POOR'S PRINCIPAL RATING MARKET AMOUNT (UNAUDITED) VALUE(C) --------- ----------- -------- FINANCE -- (CONTINUED) $ 15,100 Queensland Treasury Corp. (Australian Dollar), 6.50%, 06/14/2005............................... AAA $ 10,862 1,000 Russian Federation, 8.25%, 03/31/2010............................... Baa3* 1,117 1,500 SLM Corp., 3.95%, 08/15/2008............................... A 1,510 250 Southern Investments UK plc, 6.80%, 12/01/2006............................... BBB- 265 820 Sovereign Bank, 5.125%, 03/15/2013.............................. BBB- 802 1,750 TIAA Global Markets, 4.125%, 11/15/2007(h)........................... AAA 1,794 740 UFJ Finance Aruba AEC, 6.75%, 07/15/2013............................... BBB- 775 1,900 United Mexican States, 4.625%, 10/08/2008.............................. BBB- 1,905 720 Wachovia Corp., 7.55%, 08/18/2005............................... A 790 720 Wellpoint Health Networks, Inc., 6.375%, 06/15/2006.............................. A- 787 -------- 69,056 -------- HEALTH CARE -- 0.8% 2,200 HCA, Inc., 6.95%, 05/01/2012............................... BBB- 2,278 785 HCR Manor Care, Inc., 7.50%, 06/15/2006............................... BBB 849 750 Humana, Inc., 7.25%, 08/01/2006............................... BBB 819 600 Quest Diagnostics, Inc., 6.75%, 07/12/2006............................... BBB 658 -------- 4,604 -------- SERVICES -- 1.9% 1,600 ARAMARK Services, Inc., 7.10%, 12/01/2006............................... BBB- 1,760 1,100 Clear Channel Communications, Inc., 6.00%, 11/01/2006............................... BBB- 1,187 500 Cox Enterprises, Inc., 7.875%, 09/15/2010(h)........................... BBB 579 800 Cox Radio, Inc., 6.375%, 05/15/2005.............................. BBB 845 500 FedEx Corp., 6.625%, 02/12/2004.............................. BBB 507 575 Fiserv, Inc., 3.00%, 06/27/2008............................... BBB+ 548 1,640 Liberty Media Corp., 3.50%, 09/25/2006............................... BBB- 1,620 1,400 News America Holdings, Inc., 7.70%, 10/30/2025............................... BBB- 1,600
The accompanying notes are an integral part of this financial statement. 136 --------------------------------------------------------------------------------
STANDARD AND POOR'S PRINCIPAL RATING MARKET AMOUNT (UNAUDITED) VALUE(C) --------- ----------- -------- CORPORATE BONDS: INVESTMENT GRADE -- (CONTINUED) SERVICES -- (CONTINUED) $ 450 Rio Tinto Finance USA Ltd., 2.625%, 09/30/2008.............................. A+ $ 429 960 Walt Disney Co., 7.30%, 02/08/2005............................... BBB+ 1,024 -------- 10,099 -------- TECHNOLOGY -- 3.9% 2,410 AOL Time Warner, Inc., 3.34%, Conv. 12/06/2019(a)(f)................... BBB 1,497 500 AT&T Broadband Corp., 8.375%, 03/15/2013.............................. BBB 604 951 AT&T Corp., 8.50%, 11/15/2031............................... BBB 1,078 300 AT&T Corp., 8.50%, 11/15/2031(h)............................ BBB 340 2,500 AT&T Wireless Services, Inc., 8.125%, 05/01/2012.............................. BBB 2,900 2,200 British Telecommunications plc, 8.875%, 12/15/2030.............................. A- 2,833 1,775 Continental Cablevision, Inc., 8.875%, 09/15/2005.............................. BBB 1,972 1,600 Deutsche Telekom International Finance B.V., 8.25%, 06/15/2005............................... BBB+ 1,748 900 Deutsche Telekom International Finance B.V., 8.75%, 06/15/2030............................... BBB+ 1,132 1,600 Raytheon Co., 8.20%, 03/01/2006............................... BBB- 1,789 380 Rogers Cable, Inc., 6.25%, 06/15/2013 (with rights)................. BBB- 380 1,000 Telefonica Europe B.V., 7.35%, 09/15/2005............................... A 1,090 1,560 Time Warner Companies, Inc., 7.25%, 10/15/2017............................... BBB+ 1,736 1,900 Time Warner Entertainment Co., 8.375%, 03/15/2023.............................. BBB+ 2,312 -------- 21,411 -------- TRANSPORTATION -- 0.5% 1,140 Delta Air Lines, Inc., 7.11%, 09/18/2011............................... A 1,162 1,650 Norfolk Southern Corp., 7.875%, 02/15/2004.............................. BBB 1,679 -------- 2,841 -------- UTILITIES -- 4.0% 1,590 Carolina Power & Light Co., 5.125%, 09/15/2013.............................. BBB 1,599 1,140 Carolina Power & Light Co., 6.125%, 09/15/2033.............................. BBB 1,147
STANDARD AND POOR'S PRINCIPAL RATING MARKET AMOUNT (UNAUDITED) VALUE(C) --------- ----------- -------- UTILITIES -- (CONTINUED) $ 250 Cleveland Electric Illuminating Co., 7.13%, Ser B 07/01/2007......................... AAA $ 284 2,040 Commonwealth Edison Co., 4.70%, 04/15/2015............................... A- 1,961 850 Consolidated Edison Co. of New York, 5.875%, 04/01/2033.............................. A 841 565 Detroit Edison Co., 6.125%, 10/01/2010.............................. A- 616 1,175 Duke Energy Corp., 3.75%, 03/05/2008............................... A- 1,174 550 Duke Energy Corp., 4.50%, 04/01/2010............................... A- 554 3,200 FPL Group Capital, Inc., 3.25%, 04/11/2006............................... A- 3,237 750 International Transmission Co., 4.45%, 07/15/2013(h)............................ BBB+ 708 1,660 Kinder Morgan, Inc., 6.65%, 03/01/2005............................... BBB 1,762 800 Northern States Power Co., 2.875%, 08/01/2006.............................. BBB+ 800 1,500 Northern States Power Co., 8.00%, Ser B 08/28/2012......................... BBB+ 1,826 1,600 Pacificorp, 5.45%, 09/15/2013............................... A 1,646 200 Pacificorp, 6.12%, 01/15/2006............................... A 216 900 Public Service Colorado, Inc. Ser 12, 4.875%, 03/01/2013.............................. BBB+ 892 1,400 Public Service Electric & Gas Co., 5.375%, 09/01/2013.............................. A- 1,435 125 Public Service Electric & Gas Co., 7.00%, 09/01/2024............................... AAA 129 850 Texas-New Mexico Power Co., 6.125%, 06/01/2008 (with rights)(h)............. BBB- 858 265 Westar Energy, Inc., 8.50%, 07/01/2022............................... BBB- 275 -------- 21,960 -------- Total corporate bonds: investment grade (cost $179,854)....................................... $183,861 ======== CORPORATE BONDS: NON-INVESTMENT GRADE -- 6.4% BASIC MATERIALS -- 0.6% $ 460 Abitibi-Consolidated, Inc.,....................... 8.30%, 08/01/2005 BB+ $ 485 530 Georgia-Pacific Corp.,............................ 7.25%, 06/01/2028 BB+ 482
The accompanying notes are an integral part of this financial statement. 137 THE HARTFORD TOTAL RETURN BOND FUND SCHEDULE OF INVESTMENTS -- (CONTINUED) OCTOBER 31, 2003 (000'S OMITTED) --------------------------------------------------------------------------------
STANDARD AND POOR'S PRINCIPAL RATING MARKET AMOUNT (UNAUDITED) VALUE(C) --------- ----------- -------- CORPORATE BONDS: NON-INVESTMENT GRADE -- (CONTINUED) BASIC MATERIALS -- (CONTINUED) $ 155 Oregon Steel Mills, Inc., 10.00%, 07/15/2009.............................. B $ 127 1,125 Owens-Brockway Glass Containers, 8.75%, 11/15 /2012.............................. BB 1,232 300 PolyOne Corp., 6.875%, 12/01/2004(g)........................... B2* 292 905 Rhodia S.A., 8.875%, 06/01/2011 (with rights)(h)................................ B 806 -------- 3,424 -------- CAPITAL GOODS -- 0.2% 150 American Standard, Inc., 7.375%, 02/01/2008.............................. BB+ 165 985 Xerox Corp., 9.75% 01/15/2009................................ B+ 1,116 -------- 1,281 -------- CONSUMER CYCLICAL -- 0.7% 1,400 Delhaize America, Inc., 8.125%, 04/15/2011.............................. BB+ 1,545 1,100 J.C. Penney Co., Inc., 7.65%, 08/15/2016............................... BB+ 1,160 470 Millennium America, Inc., 7.625%, 11/15/2026.............................. BB- 402 650 Toll Corp., 8.25%, 02/01/2011............................... BB+ 722 -------- 3,829 -------- ENERGY -- 0.5% 1,500 Coastal Corp., 7.625%, 09/01/2008.............................. B 1,279 125 Pioneer Natural Resources Co., 6.50%, 01/15/2008............................... BB+ 134 1,100 Pioneer Natural Resources Co., 7.20%, 01/15/2028............................... BB+ 1,146 -------- 2,559 -------- FINANCE -- 0.4% 1,050 Colombia (Republic of), 8.625%, 04/01/2008.............................. BB 1,102 120 Interpool, Inc., 7.20%, 08/01/2007............................... BB- 112 700 Philippines (Republic of), 10.625%, 03/16/2025............................. BB 758 -------- 1,972 --------
STANDARD AND POOR'S PRINCIPAL RATING MARKET AMOUNT (UNAUDITED) VALUE(C) --------- ----------- -------- HEALTH CARE -- 0.2% $ 290 Omnicare, Inc., 6.125%, 06/01/2013.............................. BB+ $ 287 405 Tenet Healthcare Corp., 6.375%, 12/01/2011.............................. BB- 376 660 Tenet Healthcare Corp., 7.375%, 02/01/2013.............................. BB- 640 -------- 1,303 -------- SERVICES -- 0.9% 1,560 Allied Waste North America, Inc., 9.25%, Ser B 09/01/2012......................... BB- 1,755 840 Browning-Ferris Industries, Inc., 6.375%, 01/15/2008.............................. BB- 823 1,400 CSC Holdings, Inc., 7.625%, 07/15/2018.............................. BB- 1,379 970 Echostar DBS Corp., 5.75%, 10/01/2008(h)............................ BB- 966 -------- 4,923 -------- TECHNOLOGY -- 1.5% 1,000 Corning, Inc., 8.30%, 04/04/2025............................... Ba2* 1,057 455 Global Crossing Holdings Ltd., 8.70%, 08/01/2007(a)(g)......................... NR 42 2,385 Global Crossing Holdings Ltd., 9.50%, 11/15/2009(a)(g)......................... NR 218 1,000 Global Crossing Holdings Ltd., 9.625%, 05/15/2008(a)(g)........................ NR 91 500 KPNQwest N.V., 8.125%, 06/01/2009(a)........................... NR @@ 647 Lucent Technologies, Inc., 6.45%, 03/15/2029............................... B- 500 280 Lucent Technologies, Inc., 6.50%, 01/15/2028............................... B- 217 458 Marconi Corp. plc, 10.00%, 10/31/2008.............................. NR 476 674 Marconi Corp. plc, 8.00%, 04/30/2008............................... NR 660 275 Nortel Networks Corp., 4.25%, Conv. 09/01/2008......................... B 259 320 PanAmSat Corp., 6.375%, 01/15/2008.............................. BB- 328 1,625 PerkinElmer, Inc., 8.875%, 01/15/2013.............................. BB- 1,779 1,455 Qwest Corp., 6.875%, 09/15/2033.............................. B- 1,299 420 Shaw Communications, Inc., 8.25%, 04/11/2010............................... BB+ 464 2,480 WorldCom, Inc. - WorldCom Group, 8.25%, 05/15/2031(a)............................ NR 911 -------- 8,301 --------
The accompanying notes are an integral part of this financial statement. 138 --------------------------------------------------------------------------------
STANDARD AND POOR'S PRINCIPAL RATING MARKET AMOUNT (UNAUDITED) VALUE(C) --------- ----------- -------- CORPORATE BONDS: NON-INVESTMENT GRADE -- (CONTINUED) UTILITIES -- 1.4% $ 275 Kansas Gas & Electric Co., 6.20%, 01/15/2006............................... BB+ $ 286 1,120 Kansas Gas & Electric Co., 7.60%, 12/15/2003............................... BB+ 1,114 135 Kansas Gas & Electric Co., 8.29%, 03/29/2016............................... BB- 141 850 Montana Power Co., 7.30%, 12/01/2006(h)............................ D 867 1,700 Southern California Edison Co., 7.125%, 07/15/2025.............................. BB 1,726 687 Southern California Edison Co., 8.00%, 02/15/2007............................... BB 771 155 Tennessee Gas Pipeline Co., 7.00%, 10/15/2028............................... B+ 138 1,850 Transcontinental Gas Pipeline Corp., 6.125%, 01/15/2005.............................. B+ 1,882 500 Transcontinental Gas Pipeline Corp., 7.25%, 12/01/2026............................... B+ 508 -------- 7,433 -------- Total corporate bonds: non-investment grade (cost $35,953).................................. $ 35,025 ======== U.S. GOVERNMENT SECURITIES -- 48.1% FEDERAL HOME LOAN MORTGAGE -- 1.3% 1,400 3.125% 2006.................................................... $ 1,417 5,833 5.50% 2033..................................................... 5,884 -------- 7,301 -------- FEDERAL NATIONAL MORTGAGE ASSOCIATION -- 22.1% 6,000 4.50% 2013..................................................... 5,869 28,400 5.00% 2018 -- 2033............................................. 28,526 38,139 5.50% 2032 -- 2033............................................. 38,507 37,506 6.00% 2013 -- 2033(i).......................................... 38,563 6,914 6.50% 2031 -- 2033............................................. 7,184 1,727 7.50% 2029 -- 2031............................................. 1,840 -------- 120,489 -------- GOVERNMENT NATIONAL MORTGAGE -- 7.6% 16,340 5.50% 2033..................................................... 16,565 2,530 6.00% 2032..................................................... 2,615 20,987 6.50% 2028 -- 2032............................................. 21,984 -------- 41,164 --------
PRINCIPAL MARKET AMOUNT VALUE(C) --------- -------- --------- ----------- -------- OTHER DIRECT FEDERAL OBLIGATIONS -- 0.9% $ 250 Federal Home Loan Bank, 6.24%, 02/20/2007(e)................... $ 267 2,750 Federal Home Loan Bank, 2.24%, 11/07/2005............................................ 2,750 8,800 Tennessee Valley Authority, 6.96%, 11/01/2025(f)............... 1,917 -------- 4,934 -------- U.S. TREASURY SECURITIES -- 16.2% 11,000 1.50% 2005..................................................... 10,964 4,400 1.875% 2004.................................................... 4,427 7,385 3.00% 2007 -- 2008............................................. 7,392 895 3.125% 2008.................................................... 890 350 3.25% 2007..................................................... 356 1,265 3.50% 2006..................................................... 1,306 600 3.875% 2013.................................................... 583 15,905 4.25% 2013..................................................... 15,841 2,325 4.375% 2007.................................................... 2,460 2,635 4.625% 2006.................................................... 2,797 1,210 5.00% 2011..................................................... 1,295 18,450 5.375% 2031.................................................... 19,066 230 6.00% 2009..................................................... 260 3,045 6.50% 2006 -- 2010............................................. 3,489 1,350 6.625% 2007.................................................... 1,531 500 6.75% 2005..................................................... 539 5,000 6.875% 2006.................................................... 5,582 2,865 6.875% 2025.................................................... 3,473 4,750 7.875% 2021.................................................... 6,272 -------- 88,523 -------- Total U.S. government securities (cost $262,523).............................................. $262,411 ======== SHARES --------- COMMON STOCK -- 0.3% TECHNOLOGY -- 0.3% 94 Marconi Corp. plc ADR(a)....................................... $ 1,711 -------- Total common stock............................................. (cost $911) $ 1,711 ======== PREFERRED STOCKS -- 0.1% CAPITAL GOODS -- 0.1% 9 Xerox Corp., Conv.,............................................ 7.50%, 11/27/2021(h) $ 562 -------- Total preferred stocks......................................... (cost $425) $ 562 ======== Total long-term investments.................................... (cost $525,019) $528,417 ======== SHORT-TERM INVESTMENTS -- 24.1% SECURITIES PURCHASED WITH PROCEEDS FROM SECURITIES LENDING -- 19.4% 105,731 Navigator Prime Portfolio...................................... $105,731
The accompanying notes are an integral part of this financial statement. 139 THE HARTFORD TOTAL RETURN BOND FUND SCHEDULE OF INVESTMENTS -- (CONTINUED) OCTOBER 31, 2003 (000'S OMITTED) -------------------------------------------------------------------------------- PRINCIPAL MARKET AMOUNT VALUE(C) ----------- ----------- FINANCE -- 4.7% $ 6,152 Banc One Joint Repurchase Agreement, 0.97%, 11/03/2003 (Note 2f).................................... $ 6,152 9,715 BNP Paribas Joint Repurchase Agreement, 0.99%, 11/03/2003 (Note 2f).................................... 9,715 9,715 UBS Warburg Joint Repurchase Agreement, 0.98%, 11/03/2003 (Note 2f).................................... 9,715 --------- 25,582 --------- Total short-term investments (cost $131,313)................................................ $ 131,313 ========= Total investments in securities (cost $656,332)(b)............................................. $ 659,730 =========
(a) Presently non-income producing. For long-term debt securities, items identified are in default as to payment of interest and/or principal. (b) At October 31, 2003, the cost of securities for federal income tax purposes is $656,846 and the aggregate gross unrealized appreciation and depreciation based on that cost was:
Unrealized appreciation......................... $ 9,533 Unrealized depreciation......................... (6,648) ------- Net unrealized appreciation..................... $ 2,885 =======
(c) See Note 2b of accompanying Notes to Financial Statements regarding valuation of securities. (d) Note: Percentage of investments as shown is the ratio of the total market value to total net assets. Market value of investments in foreign securities represents 11.78% of total net assets as of October 31, 2003. (e) Variable rate securities; the yield reported is the rate in effect as of October 31, 2003. (f) The interest rate disclosed for these securities represents the effec- tive yield on the date of acquisition. (g) These investments have been identified by portfolio management as illiquid securities. As noted, some Securities issued within terms of a private placement memorandum, exempt from registration under Section 144A of the Securities Act of 1933, as amended, and may be sold only to dealers in that program or to other "accredited investors":
PERIOD COST ACQUIRED SHARES/PAR SECURITY BASIS -------- ---------- -------- ------ 2001 1,000 Global Crossing Holdings Ltd., $ 942 due 2008 2001 455 Global Crossing Holdings Ltd., 204 due 2007 2001 2,385 Global Crossing Holdings Ltd., 1,347 due 2009 2002 300 PolyOne Corp., due 2004-144A 298
The aggregate value of these securities as of October 31, 2003, was $643, which represents 0.12% of total net assets. (h) Securities issued within terms of a private placement memorandum, exempt from registration under Section 144A of the Securities Act of 1933, as amended, and may be sold only to dealers in that program or to other "accredited investors". Pursuant to guidelines adopted by the Board of Directors, these issues are determined to be liquid. The aggregate value of these securities at October 31, 2003, was $11,834, which represents 2.17% of total net assets. (i) The cost of securities purchased on a when-issued basis at October 31, 2003 was $22,454. @@ Due to the presentation of the financial statements in thousands, the number or shares and/or dollars round to zero. * Moody's Rating.
STATEMENT OF ASSETS AND LIABILITIES: ASSETS Investments in securities, at value; (cost $656,332) @ ...................................... $659,730 Cash................................................ 15 Foreign currency on deposit with custodian (cost $974)............................................. 1,028 Receivables: Investment securities sold........................ 7,575 Fund shares sold.................................. 2,075 Dividends and interest............................ 5,388 Other assets........................................ 109 -------- Total assets........................................ 675,920 -------- LIABILITIES Payables: Payable upon return of securities loaned (Note 2d)............................................. 105,731 Investment securities purchased................... 22,820 Fund shares redeemed.............................. 1,765 Payable for investment advisory and management fees (Note 3)................................... 298 Payable for distribution fees (Note 3)............ 41 Accrued Expenses.................................... 194 -------- Total liabilities................................... 130,849 -------- Net assets.......................................... $545,071 ========
@ Market value of securities on loan $102,542. SUMMARY OF NET ASSETS: Capital stock and paid-in-capital, par value $0.001 per share; 300,000 shares authorized; 48,953 shares outstanding................................ $523,383 Accumulated undistributed net investment income..... 219 Accumulated net realized gain on investments and foreign currency transactions..................... 18,010 Unrealized appreciation of investments in securities and the translations of assets and liabilities denominated in foreign currency................... 3,459 -------- Net assets.......................................... $545,071 ========
Class A Net asset value per share ($268,655/24,126 shares outstanding)...................................... $11.14 ------ Maximum offering price per share ($11.14/95.5%)..... $11.66 ====== Class B Net asset value per share ($106,077/9,569 shares outstanding)...................................... $11.09 ====== Class C Net asset value per share ($110,214/9,908 shares outstanding)...................................... $11.12 ------ Maximum offering price per share ($11.12/99.0%)..... $11.23 ====== Class Y Net asset value per share ($60,125/5,350 shares outstanding)...................................... $11.24 ======
The accompanying notes are an integral part of this financial statement. 140 THE HARTFORD U.S. GOVERNMENT SECURITIES FUND SCHEDULE OF INVESTMENTS OCTOBER 31, 2003 (000'S OMITTED) --------------------------------------------------------------------------------
PRINCIPAL MARKET AMOUNT VALUE(B) --------- -------- U.S. GOVERNMENT SECURITIES -- 98.3% FEDERAL HOME LOAN MORTGAGE CORPORATION -- 36.6% MORTGAGE BACKED SECURITIES: $ 6,428 5.50% 2032........................................ $ 6,486 4,411 6.00% 2032........................................ 4,528 28,625 6.50% 2031........................................ 30,230 350 7.00% 2029 -- 2031................................ 368 251 9.00% 2022........................................ 280 2 10.50% 2015....................................... 2 57 11.25% 2013....................................... 64 144 11.50% 2015 -- 2019............................... 162 143 11.75% 2010 -- 2011............................... 161 36 12.50% 2019....................................... 40 -------- 42,321 -------- NOTES: 5,000 3.125% 2006....................................... 5,061 23,100 4.75% 2012........................................ 22,671 5,500 4.875% 2013....................................... 5,515 15,000 5.25% 2012........................................ 15,033 -------- 48,280 --------
PRINCIPAL MARKET AMOUNT VALUE(B) --------- -------- REMIC -- IO: $ 6,280 8.23% Ser 2498 Class LI 2014(e)................... $ 310 -------- REMIC -- PAC'S: 7,000 5.50% Ser 2496 Class TE 2029...................... 7,222 8,500 6.00% Ser 2413 Class QJ 2027...................... 8,638 10,000 6.00% Ser 2496 Class QM 2028...................... 10,474 -------- 26,334 -------- 117,245 -------- FEDERAL NATIONAL MORTGAGE ASSOCIATION -- 29.3% MORTGAGE BACKED SECURITIES: 19,896 5.50% 2015-2032................................... 20,124 2,277 5.85% 2009........................................ 2,452 2,830 5.89% 2008........................................ 3,054 21,262 6.00% 2016 -- 2032................................ 21,875 1,368 6.01% 2009........................................ 1,483 2,713 6.36% 2008........................................ 2,976 2,379 6.50% 2013 -- 2015................................ 2,505 5,699 6.52% 2008........................................ 6,269 6,086 7.184% 2006....................................... 6,665 304 7.50% 2030........................................ 324 77 8.00% 2025........................................ 84 94 8.50% 2022........................................ 103 45 9.00% 2020........................................ 50 127 9.75% 2020........................................ 141 221 10.00% 2020....................................... 250 101 10.50% 2012 -- 2018............................... 113 27 10.75% 2013....................................... 30 529 11.00% 2015 -- 2020............................... 596 73 11.25% 2013....................................... 81 21 11.50% 2015....................................... 23 59 12.00% 2011 -- 2016............................... 67 135 12.50% 2015....................................... 155 -------- 69,420 -------- NOTES: 6,000 3.75% 2008........................................ 5,971 -------- REMIC -- IO: 4,080 8.77% Ser 2002-54 Class IJ 2022(e)................ 716 2,595 8.892% Ser 2002-56 Class IQ 2025(e)............... 49 -------- 765 -------- REMIC-PAC'S: 9,500 6.00% Ser 2001-74 Class QD 2030................... 9,901 8,000 6.50% Ser 2002-21 Class PE 2032................... 8,308 -------- 18,209 -------- 94,365 -------- GOVERNMENT NATIONAL MORTGAGE ASSOCIATION -- 9.4% MORTGAGE BACKED SECURITIES: 6,336 5.00% 2033........................................ 6,259 13,631 6.50% 2031 -- 2032................................ 14,278 220 7.00% 2030........................................ 232 311 8.00% 2017 -- 2022................................ 339 924 9.50% 2016 -- 2019................................ 1,026 62 11.00% 2015 -- 2018............................... 71 -------- 22,205 -------- REMIC -- PAC'S: 8,000 6.00% Ser 2002-88 Class AB 2032................... 8,082 -------- 30,287 -------- OTHER DIRECT FEDERAL OBLIGATIONS -- 7.7% FEDERAL HOME LOAN BANK: 16,600 3.375% 2008....................................... 16,448 7,750 5.75% 2012........................................ 8,387 -------- 24,835 U.S. TREASURY SECURITIES -- 15.3% 4,250 3.50% 2011(d)..................................... 5,080 18,600 5.00% 2011........................................ 19,911 19,600 7.25% 2016........................................ 24,289 -------- 49,280 -------- Total U.S. government securities (cost $314,885)................................. $316,012 ======== SHARES --------- SHORT-TERM INVESTMENTS -- 10.4% SECURITIES PURCHASED WITH PROCEEDS FROM SECURITIES LENDING -- 7.2% 23,140 Boston Global Investment Trust.................... $ 23,140 --------
The accompanying notes are an integral part of this financial statement. 141 THE HARTFORD U.S. GOVERNMENT SECURITIES FUND SCHEDULE OF INVESTMENTS -- (CONTINUED) OCTOBER 31, 2003 (000'S OMITTED) -------------------------------------------------------------------------------- PRINCIPAL MARKET AMOUNT VALUE(B) ----------- ----------- FINANCE -- 3.2% $ 2,464 Banc One Joint Repurchase Agreement, 0.97%, 11/03/2003 (Note 2f)..................... $ 2,464 3,891 BNP Paribas Joint Repurchase Agreement, 0.99%, 11/03/2003 (Note 2f)..................... 3,891 3,891 UBS Warburg Joint Repurchase Agreement, 0.98%, 11/03/2003 (Note 2f)..................... 3,891 --------- 10,246 --------- Total short-term investments (cost $33,386).................................. $ 33,386 ========= Total investments in securities (cost $348,271)(a).............................. $ 349,398 =========
(a) At October 31, 2003, the cost of securities for income tax purposes is $348,271 and the aggregate gross unrealized appreciation and depreciation based on that cost was:
Unrealized appreciation......................... $ 4,864 Unrealized depreciation......................... (3,737) ------- Net unrealized appreciation..................... $ 1,127 =======
(b) See Note 2b of accompanying Notes to Financial Statements regarding valuation of securities. (c) Note: Percentage of investments as shown is the ratio of the total market value to total net assets. (d) U.S. Treasury inflation-protection securities (TIPS) are securities in which the principal amount is adjusted for inflation and the semiannual interest payments equal a fixed percentage of the inflation-adjusted principal amount. (e) The interest rates disclosed for interest only strips represent effec- tive yields based upon estimated future cash flows at October 31, 2003.
STATEMENT OF ASSETS AND LIABILITIES: ASSETS Investments in securities, at value; (cost $348,271) @ ...................................... $349,398 Cash................................................ 1 Receivables: Investment securities sold........................ 7 Fund shares sold.................................. 254 Dividends and interest............................ 2,751 Other assets........................................ 142 -------- Total assets........................................ 352,553 -------- LIABILITIES Payables: Payable upon return of securities loaned (Note 2d)............................................. 23,140 Investment securities purchased................... 6,259 Fund shares redeemed.............................. 1,256 Payable for investment advisory and management fees (Note 3)................................... 201 Payable for distribution fees (Note 3)............ 15 Accrued Expenses.................................... 93 -------- Total liabilities................................... 30,964 -------- Net assets.......................................... $321,589 ======== @ Market value of securities on loan $22,085. SUMMARY OF NET ASSETS: Capital stock and paid-in-capital, par value $0.0001 per share; 19,250,000 shares authorized 33,299 shares outstanding;............................... $331,327 Accumulated undistributed net investment income..... 1 Accumulated net realized loss on investments........ (10,866) Unrealized appreciation of investments in securities........................................ 1,127 -------- Net assets.......................................... $321,589 ========
Class A Net asset value per share ($65,337 / 6,754 shares outstanding)........................... $ 9.67 ------ Maximum offering price per share($9.67 / 95.5%).......................... $10.13 ====== Class B Net asset value per share ($38,210 / 3,965 shares outstanding)........................... $ 9.64 ------ Class C Net asset value per share ($26,626 / 2,763 shares outstanding)........................... $ 9.63 ------ Maximum offering price per share ($9.63 / 99.0%)............................... $ 9.73 ====== Class E Net asset value per share ($135,954 / 14,074 shares outstanding)........................... $ 9.66 ------ Maximum offering price per share ($9.66 / 95.5%)............................... $10.12 ====== Class H Net asset value per share ($6,283 / 653 shares outstanding).................................. $ 9.63 ====== Class L Net asset value per share ($43,202 / 4,470 shares outstanding)........................... $ 9.67 ------ Maximum offering price per share ($9.67 / 95.5%)............................... $10.13 ====== Class M Net asset value per share ($4,588 / 476 shares outstanding).................................. $ 9.63 ====== Class N Net asset value per share ($1,388 / 144 shares outstanding).................................. $ 9.63 ====== Class Y Net asset value per share ($1 / @@ shares outstanding).................................. $ 9.68 ======
@@ Due to the presentation of the financial statements in thousands, the number or shares and/or dollars round to zero.
The accompanying notes are an integral part of this financial statement. 142 THE HARTFORD VALUE FUND SCHEDULE OF INVESTMENTS OCTOBER 31, 2003 (000'S OMITTED) --------------------------------------------------------------------------------
MARKET SHARES VALUE(C) --------- -------- COMMON STOCK -- 98.4% BASIC MATERIALS -- 4.7% 34 Alcoa, Inc. ...................................... $ 1,070 4 Ashland, Inc. (with rights)....................... 164 24 DuPont (E.I.) de Nemours & Co. ................... 969 12 Kimberly-Clark Corp. ............................. 634 ------- 2,837 ------- CAPITAL GOODS -- 5.7% 9 Illinois Tool Works, Inc. ........................ 684 16 Rockwell Automation, Inc. ........................ 481 53 Teradyne, Inc. (with rights)(a)................... 1,212 48 Tyco International Ltd. (with rights)............. 998 ------- 3,375 ------- CONSUMER CYCLICAL -- 7.8% 41 AutoNation, Inc.(a)............................... 774 16 Caterpillar, Inc. (with rights)................... 1,158 36 Dollar General Corp. (with rights)................ 811 14 General Motors Corp. ............................. 615 23 McDonald's Corp. ................................. 585 11 NIKE, Inc. Class B................................ 703 ------- 4,646 ------- CONSUMER STAPLES -- 6.1% 16 Coca-Cola Enterprises, Inc. ...................... 312 26 Kellogg Co. ...................................... 858 24 PepsiCo, Inc. .................................... 1,124 22 Weyerhaeuser Co. ................................. 1,337 ------- 3,631 ------- ENERGY -- 9.6% 18 Chevron Texaco Corp. (with rights)................ 1,315 81 Exxon Mobil Corp. ................................ 2,978 28 GlobalSantaFe Corp. .............................. 623 23 National Fuel Gas Co. ............................ 521 6 Progress Energy, Inc. ............................ 276 ------- 5,713 ------- FINANCE AND INSURANCE -- 28.5% 23 ACE Ltd. ADR (with rights)........................ 814 8 Archstone-Smith Trust (REIT)...................... 203 23 Bank of America Corp. ............................ 1,749 16 Bank One Corp. ................................... 662 11 Chubb Corp. (with rights)......................... 748 4 CIGNA Corp. (with rights)......................... 251 62 Citigroup, Inc. .................................. 2,929 9 Fannie Mae........................................ 660 11 Goldman Sachs Group, Inc. ........................ 1,042 12 Marsh & McLennan Companies, Inc. (with rights)................................... 522
MARKET SHARES VALUE(C) --------- -------- FINANCE AND INSURANCE -- (CONTINUED) 21 Morgan Stanley (with rights)...................... $ 1,147 45 National City Corp. .............................. 1,473 11 PNC Financial Services Group, Inc. (with rights)................................... 595 33 St. Paul Companies, Inc. ......................... 1,239 10 StanCorp Financial Group, Inc. ................... 618 33 Washington Mutual, Inc. (with rights)............. 1,459 17 Wells Fargo & Co. (with rights)................... 946 ------- 17,057 ------- HEALTH CARE -- 6.6% 12 Bard (C.R.), Inc. (with rights)................... 977 22 Baxter International, Inc. (with rights).......... 595 29 CVS Corp. ........................................ 1,017 43 Pfizer, Inc. (with rights)........................ 1,344 ------- 3,933 ------- SERVICES -- 2.9% 34 Comcast Corp. Special Class A(a).................. 1,112 27 Republic Services, Inc. .......................... 616 ------- 1,728 ------- TECHNOLOGY -- 17.9% 41 Applied Materials, Inc.(a)........................ 953 30 AT&T Corp. ....................................... 558 12 Beckman Coulter, Inc. (with rights)............... 611 34 BellSouth Corp. (with rights)..................... 900 20 Emerson Electric Co. (with rights)................ 1,146 49 Hewlett-Packard Co. .............................. 1,090 16 International Business Machines Corp. ............ 1,387 78 Nokia Oyj ADR..................................... 1,322 32 SBC Communications, Inc. ......................... 765 9 Texas Instruments, Inc. (with rights)............. 269 67 Time Warner, Inc.(a).............................. 1,026 19 Verizon Communications, Inc. ..................... 628 ------- 10,655 ------- TRANSPORTATION -- 4.0% 17 CSX Corp. (with rights)........................... 554 28 Shell Transport & Trading Co. plc ADR............. 1,084 38 Southwest Airlines Co. (with rights).............. 727 ------- 2,365 ------- UTILITIES -- 4.6% 12 Dominion Resources, Inc. ......................... 748 19 Exelon Corp. ..................................... 1,199 7 PPL Corp. ........................................ 260
The accompanying notes are an integral part of these financial statements. 143 THE HARTFORD VALUE FUND SCHEDULE OF INVESTMENTS -- (CONTINUED) OCTOBER 31, 2003 (000'S OMITTED) --------------------------------------------------------------------------------
MARKET SHARES VALUE(C) --------- -------- COMMON STOCK -- (CONTINUED) UTILITIES -- (CONTINUED) Tv16 Scana Corp. ...................................... $ 542 ------- 2,749 ------- Total common stock (cost $55,484).................................. $58,689 ======= SHORT-TERM INVESTMENTS -- 2.5% SECURITIES PURCHASED WITH PROCEEDS FROM SECURITIES LENDING -- 1.4% 806 Boston Global Investment Trust.................... $ 806 PRINCIPAL AMOUNT ------ TV FINANCE -- 1.1% $ 100 ABN AMRO Joint Repurchase Agreement, 1.00%, 11/03/03 (Note 2f)....................... 100 263 BNP Paribas Joint Repurchase Agreement, 1.00%, 11/03/03 (Note 2f)....................... 263 327 UBS Securities Joint Repurchase Agreement, 0.98%, 11/03/03 (Note 2f)....................... 327 ------- 690 ------- Total short-term investments (cost $1,496)................................... $ 1,496 ======= Total investments in securities (cost $56,980)(b)............................... $60,185 =======
(a) Presently non-income producing. (b) At October 31, 2003, the cost of securities for federal income tax purposes is $57,308 and the aggregate gross unrealized appreciation and depreciation based on that cost was:
Unrealized appreciation......................... $ 5,356 Unrealized depreciation......................... (2,479) ------- Net unrealized appreciation..................... $ 2,877 =======
(c) See Note 2b of accompanying Notes to Financial Statements regarding valuation of securities. (d) Note: Percentage of investments as shown is the ratio of the total market value to total net assets. Market value of investments in foreign securities represents 4.03% of total net assets as of October 31, 2003.
STATEMENT OF ASSETS AND LIABILITIES: ASSETS Investments in securities, at value; (cost $56,980) @...................................... $60,185 Cash.............................................. 1 Receivables: Investment securities sold...................... 18 Fund shares sold................................ 385 Dividends and interest.......................... 124 Other assets...................................... 16 ------- Total assets...................................... 60,729 ------- LIABILITIES Payables: Payable upon return of securities loaned (Note 2d)........................................... $ 806 Investment securities purchased................. 46 Fund shares redeemed............................ 149 Payable for investment advisory and management fees (Note 3)................................. 39 Payable for distribution fees (Note 3).......... 4 Accrued Expenses.................................. 21 ------- Total liabilities................................. 1,065 ------- Net assets........................................ $59,664 ======= @ Market value of securities on loan $794.
SUMMARY OF NET ASSETS: Capital stock and paid-in-capital, par value $0.001 per share; 300,000 shares authorized; 6,706 shares outstanding............................... $63,507 Accumulated undistributed net investment income.... 349 Accumulated net realized loss on investments....... (7,397) Unrealized appreciation of investments in securities....................................... 3,205 ------- Net assets......................................... $59,664 =======
Class A Net asset value per share ($42,101 / 4,718 shares outstanding)....................................... $8.92 ----- Maximum offering price per share ($8.92 / 94.5%)..... $9.44 ===== Class B Net asset value per share ($7,305 / 827 shares outstanding)....................................... $8.83 ===== Class C Net asset value per share ($10,231 / 1,158 shares outstanding)....................................... $8.83 ----- Maximum offering price per share ($8.83 / 99.0%)..... $8.92 ===== Class Y Net asset value per share ($27 / 3 shares outstanding)....................................... $8.95 =====
The accompanying notes are an integral part of these financial statements. 144 THE HARTFORD VALUE OPPORTUNITIES FUND SCHEDULE OF INVESTMENTS OCTOBER 31, 2003 (000'S OMITTED) --------------------------------------------------------------------------------
MARKET SHARES VALUE(C) --------- -------- COMMON STOCK -- 98.5% BASIC MATERIALS -- 9.6% 50 Alcoa, Inc. ...................................... $ 1,563 12 Engelhard Corp. (with rights)..................... 329 90 IMC Global, Inc. (with rights).................... 626 30 Michelin (C.G.D.E.) Class B....................... 1,169 22 Pactiv Corp.(a)................................... 494 32 Smurfit-Stone Container Corp. (with rights)(a).... 497 -------- 4,678 -------- CAPITAL GOODS -- 9.1% 69 Axcelis Technologies, Inc.(a)..................... 727 94 Bombardier, Inc. Class B.......................... 423 13 Flowserve Corp.(a)................................ 272 9 IHC Caland N.V. .................................. 364 26 Teradyne, Inc. (with rights)(a)................... 590 86 Tyco International Ltd. (with rights)............. 1,800 6 York International Corp. ......................... 247 -------- 4,423 -------- CONSUMER CYCLICAL -- 11.0% 4 Avery Dennison Corp. (with rights)................ 189 2 Beazer Homes USA, Inc.(a)......................... 179 2 Blockbuster, Inc. Class A......................... 41 6 CEC Entertainment, Inc.(a)........................ 298 7 Dick's Sporting Goods, Inc.(a).................... 340 36 Foot Locker, Inc. ................................ 641 47 Kroger Co. (with rights)(a)....................... 815 6 M.D.C. Holdings, Inc. ............................ 385 77 Rinker Group Ltd. ................................ 347 12 Ross Stores, Inc. ................................ 610 47 TJX Companies, Inc. .............................. 993 14 Toll Brothers, Inc.(a)............................ 512 -------- 5,350 -------- CONSUMER STAPLES -- 2.7% 16 Bunge Ltd. ....................................... 439 16 Constellation Brands, Inc. Class A(a)............. 502 11 EnCana Corp. ..................................... 392 -------- 1,333 -------- ENERGY -- 6.7% 17 Devon Energy Corp. ............................... 834 22 GlobalSantaFe Corp. .............................. 495 10 Petroleo Brasileiro S.A. ADR...................... 228 6 Progress Energy, Inc. ............................ 276 16 Royal Dutch Petroleum Co. NY Shares............... 723 9 Total S.A. ADR.................................... 703 -------- 3,259 -------- FINANCE AND INSURANCE -- 34.1% 23 ACE Ltd. ADR (with rights)........................ 810 7 Anthem, Inc.(a)................................... 465 31 CIT Group, Inc. .................................. 1,029 46 Citigroup, Inc. .................................. 2,198 14 Comerica, Inc. (with rights)...................... 695 29 Fannie Mae........................................ 2,093 12 FleetBoston Financial Corp. (with rights)......... 485 12 Freddie Mac....................................... 651 52 Hibernia Corp. Class A............................ 1,170
MARKET SHARES VALUE(C) --------- -------- FINANCE AND INSURANCE -- (CONTINUED) 8 MBIA, Inc. ....................................... $ 453 4 National City Corp. .............................. 121 27 Oxford Health Plans, Inc. ........................ 1,094 21 Platinum Underwriters Holdings Ltd. .............. 615 8 Radian Group, Inc. ............................... 423 36 RenaissanceRe Holdings Ltd. ADR................... 1,619 7 St. Paul Companies, Inc. ......................... 282 28 Travelers Property Casualty Corp. Class B......... 451 19 UnionBanCal Corp. ................................ 1,035 21 Washington Mutual, Inc. (with rights)............. 932 -------- 16,621 -------- HEALTH CARE -- 7.6% 10 AmerisourceBergen Corp. (with rights)............. 562 24 Aventis S.A. ADR.................................. 1,244 8 HCA, Inc. ........................................ 310 14 Health Net, Inc. (with rights)(a)................. 436 16 Pfizer, Inc. (with rights)........................ 493 14 Wyeth (with rights)............................... 636 -------- 3,681 -------- SERVICES -- 6.8% 26 BearingPoint, Inc. (with rights)(a)............... 242 65 Comcast Corp. Special Class A(a).................. 2,127 28 Unisys Corp.(a)................................... 436 70 UnitedGlobalCom, Inc. Class A(a).................. 495 -------- 3,300 -------- TECHNOLOGY -- 7.5% 28 Arrow Electronics, Inc.(a)........................ 587 5 Cox Communications, Inc. Class A(a)............... 157 24 Fairchild Semiconductor International, Inc.(a).... 552 10 Flextronics International Ltd.(a)................. 141 4 International Business Machines Corp. ............ 313 74 McLeod USA, Inc. Class A(a)....................... 87 7 Microsoft Corp. .................................. 181 84 Time Warner, Inc.(a).............................. 1,284 19 Vishay Intertechnology, Inc.(a)................... 365 -------- 3,667 -------- TRANSPORTATION -- 2.3% 24 AMR Corp.(a)...................................... 319 22 Continental Airlines, Inc. Class B (with rights)(a)...................................... 424 24 ExpressJet Holdings, Inc.(a)...................... 359 -------- 1,102 -------- UTILITIES -- 1.1% 23 TXU Corp. (with rights)........................... 527 -------- Total common stock (cost $40,777).................................. $ 47,941 ======== SHARES --------- SHORT-TERM INVESTMENTS -- 4.4% SECURITIES PURCHASED WITH PROCEEDS FROM SECURITIES LENDING -- 3.4% 1,638 Boston Global Investment Trust.................... $ 1,638 --------
The accompanying notes are an integral part of these financial statements. 145 THE HARTFORD VALUE OPPORTUNITIES FUND SCHEDULE OF INVESTMENTS -- (CONTINUED) OCTOBER 31, 2003 (000'S OMITTED) --------------------------------------------------------------------------------
PRINCIPAL MARKET AMOUNT VALUE(C) --------- -------- FINANCE -- 1.0% $ 73 ABN AMRO Joint Repurchase Agreement, 1.00%, 11/03/03 (Note 2f)....................... $ 73 191 BNP Paribas Joint Repurchase Agreement, 1.00%, 11/03/03 (Note 2f)....................... 191 237 UBS Securities Joint Repurchase Agreement, 0.98%, 11/03/03 (Note 2f)....................... 237 -------- 501 -------- Total short-term investments (cost $2,139)................................... $ 2,139 ======== Total investments in securities (cost $42,916)(b)............................... $ 50,080 ========
(a) Presently non-income producing. (b) At October 31, 2003, the cost of securities for federal income tax purposes is $44,029 and the aggregate gross unrealized appreciation and depreciation based on that cost was: Unrealized appreciation......................... $ 7,220 Unrealized depreciation......................... (1,169) ------- Net unrealized appreciation..................... $ 6,051 =======
(c) See Note 2b of accompanying Notes of Financial Statements regarding valuation of securities. (d) Note: Percentage of investments as shown is the ratio of the total market value to total net assets. Market value of investments in foreign securities represents 11.49% of total net assets as of October 31, 2003. FORWARD FOREIGN CURRENCY CONTRACTS OUTSTANDING AS OF OCTOBER 31, 2003
UNREALIZED CONTRACT DELIVERY APPRECIATION DESCRIPTION MARKET VALUE AMOUNT DATE (DEPRECIATION) ----------- ------------ -------- -------- -------------- Australian Dollar (Buy) $47 $47 11/3/2003 $@@ Australian Dollar (Buy) 14 14 11/5/2003 @@ Australian Dollar (Buy) 52 52 11/6/2003 @@ -- $@@ ==
STATEMENT OF ASSETS AND LIABILITIES: ASSETS Investments in securities, at value; (cost $42,916)@........................................ $ 50,080 Cash............................................... @@ Unrealized appreciation in forward foreign currency contracts........................................ @@ Receivables: Investment securities sold....................... 986 Fund shares sold................................. 280 Dividends and interest........................... 58 Other assets....................................... 82 -------- Total assets....................................... 51,486 -------- LIABILITIES Payables: Payable upon return of securities loaned (Note 2d)............................................ $ 1,638 Investment securities purchased.................. 1,063 Fund shares redeemed............................. 37 Payable for investment advisory and management fees (Note 3).................................. 40 Payable for distribution fees (Note 3)........... 4 Accrued Expenses................................... 10 -------- Total liabilities.................................. 2,792 -------- Net assets......................................... $ 48,694 ======== @ Market value of securities on loan $1,561
SUMMARY OF NET ASSETS: Capital stock and paid-in-capital, par value $0.0001 per share; 21,000,000 shares authorized; 4,096 shares outstanding................................ $ 51,917 Accumulated undistributed net investment income..... (1) Accumulated net realized loss on investments and foreign currency transactions..................... (10,386) Unrealized appreciation of investments in securities and the translations of assets and liabilities denominated in foreign currency................... 7,164 -------- Net assets.......................................... $ 48,694 ========
@@Due to the presentation of the financial statements in thousands, the number or shares and/or dollars round to zero. Class A Net asset value per share ($5,917 / 487 shares outstanding)...................................... $12.15 ------ Maximum offering price per share ($12.15 / 94.5%)... $12.86 ====== Class B Net asset value per share ($1,932 / 168 shares outstanding)...................................... $11.53 ====== Class C Net asset value per share ($1,613 / 140 shares outstanding)........................................ $11.53 ------ (Maximum offering price per share ($11.53 / 99.0%).... $11.65 ====== Class H Net asset value per share ($6,526 / 566 shares outstanding)...................................... $11.54 ====== Class L Net asset value per share ($22,701 / 1,868 shares outstanding)...................................... $12.15 ------ Maximum offering price per share ($12.15 / 95.25%)........................................... $12.76 ====== Class M Net asset value per share ($8,015 / 695 shares outstanding)...................................... $11.53 ====== Class N Net asset value per share ($1,989 / 172 shares outstanding)...................................... $11.54 ====== Class Y Net asset value per share ($1 / @@ shares outstanding)...................................... $12.22 ======
@@ Due to the presentation of the financial statements in thousands, the number or shares and/or dollars round to zero. The accompanying notes are an integral part of these financial statements. 146 (This page intentionally left blank) 147 THE HARTFORD MUTUAL FUNDS, INC. AND THE HARTFORD MUTUAL FUNDS II, INC. STATEMENT OF OPERATIONS FOR THE PERIOD ENDED OCTOBER 31, 2003 (000'S OMITTED) --------------------------------------------------------------------------------
THE HARTFORD THE HARTFORD CAPITAL ADVISERS APPRECIATION FUND FUND ------------ ------------ INVESTMENT INCOME: Dividends................................................. $ 25,936 $ 42,405 Interest.................................................. 39,795 5,564 Securities lending........................................ 233 446 Less: Foreign tax withheld................................ (23) (1,093) --------- ---------- Total investment income (loss), net..................... 65,941 47,322 --------- ---------- EXPENSES: Investment management and advisory fees................... 14,956 24,733 Transfer agent fees....................................... 7,606 11,837 Distribution fees Class A................................................. 4,208 5,892 Class B................................................. 5,697 9,495 Class C................................................. 4,167 7,980 Class H................................................. -- -- Class L................................................. -- -- Class M................................................. -- -- Class N................................................. -- -- Custodian fees............................................ 33 605 Accounting services....................................... 465 730 Registration and filing fees.............................. 258 376 Board of Director's fees.................................. 24 37 Other expenses............................................ 1,792 2,600 --------- ---------- Total expenses (before reimbursements and waivers)...... 39,206 64,285 Expense reimbursements.................................... (52) (77) Class A distribution fees waived.......................... (208) (285) --------- ---------- Total reimbursements and waivers........................ (260) (362) --------- ---------- Total expenses, net..................................... 38,946 63,923 --------- ---------- Net investment income (loss).............................. 26,995 (16,601) --------- ---------- NET REALIZED GAIN (LOSS) ON INVESTMENTS, FUTURES CONTRACTS AND FOREIGN CURRENCY TRANSACTIONS: Net realized gain (loss) on investments................... (122,548) (84,558) Net realized gain (loss) on futures contracts............. -- -- Net realized gain (loss) on foreign currency transactions............................................ -- (1,481) --------- ---------- NET REALIZED GAIN (LOSS) ON INVESTMENTS, FUTURES CONTRACTS AND FOREIGN CURRENCY TRANSACTIONS......................... (122,548) (86,039) --------- ---------- NET CHANGES IN UNREALIZED APPRECIATION OR DEPRECIATION OF INVESTMENTS, FUTURES CONTRACTS AND FOREIGN CURRENCY TRANSACTIONS: Net unrealized appreciation (depreciation) of investments............................................. 387,775 1,076,458 Net unrealized appreciation (depreciation) of futures contracts............................................... -- -- Net unrealized appreciation (depreciation) on translation of other assets and liabilities in foreign currencies... -- 940 --------- ---------- NET CHANGES IN UNREALIZED APPRECIATION OR DEPRECIATION OF INVESTMENTS, FUTURES CONTRACTS AND FOREIGN CURRENCY TRANSACTIONS.............................................. 387,775 1,077,398 --------- ---------- NET GAIN (LOSS) ON INVESTMENTS, FUTURES CONTRACTS AND FOREIGN CURRENCY TRANSACTIONS............................. 265,227 991,359 --------- ---------- NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS................................................ $ 292,222 $ 974,758 ========= ==========
(a) The number includes $24 of practical waiver of investment management and advisory fees. @@ Due to the presentation of the financial statements in thousands, the number rounds to zero. The accompanying notes are an integral part of these financial statements. 148 --------------------------------------------------------------------------------
THE HARTFORD THE HARTFORD THE HARTFORD THE HARTFORD THE HARTFORD THE HARTFORD DISCIPLINED DIVIDEND EQUITY THE HARTFORD GLOBAL GLOBAL FINANCIAL GLOBAL EQUITY AND GROWTH INCOME FOCUS COMMUNICATIONS SERVICES HEALTH FUND FUND FUND FUND FUND FUND FUND ------------ ------------ ------------ ------------ -------------- ---------------- ------------ $ 5,232 $ 32,347 $ 73 $ 1,495 $ 61 $ 455 $ 2,088 23 1,028 4 23 51 5 34 2 87 -- -- 4 10 60 -- (341) -- -- (3) (24) (66) -------- -------- ---- -------- ------ ------ ------- 5,257 33,121 77 1,518 113 446 2,116 -------- -------- ---- -------- ------ ------ ------- 2,486 9,706 24 1,118 71 173 2,043 1,021 4,679 8 359 22 52 660 710 3,183 7 210 14 32 344 433 2,143 2 195 11 30 492 425 1,923 6 254 10 26 452 -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- 18 27 @@ 9 9 19 18 62 290 1 22 1 3 41 32 151 @@ 3 1 2 19 3 15 @@ 1 @@ @@ 2 261 949 3 91 11 20 149 -------- -------- ---- -------- ------ ------ ------- 5,451 23,066 51 2,262 150 357 4,220 (311) (34) (24) (95) (19) (37) (174) (37) (143) -- (11) (1) (2) (17) -------- -------- ---- -------- ------ ------ ------- (348) (177) (24)(a) (106) (20) (39) (191) -------- -------- ---- -------- ------ ------ ------- 5,103 22,889 27 2,156 130 318 4,029 -------- -------- ---- -------- ------ ------ ------- 154 10,232 50 (638) (17) 128 (1,913) -------- -------- ---- -------- ------ ------ ------- (26,959) (46,900) 12 (14,697) (448) (495) 3,993 141 -- -- -- -- -- -- -- -- -- -- (6) 2 10 -------- -------- ---- -------- ------ ------ ------- (26,818) (46,900) 12 (14,697) (454) (493) 4,003 -------- -------- ---- -------- ------ ------ ------- 81,279 290,474 646 37,235 3,198 3,897 40,506 -- -- -- -- -- -- -- -- -- -- -- (1) -- 2 -------- -------- ---- -------- ------ ------ ------- 81,279 290,474 646 37,235 3,197 3,897 40,508 -------- -------- ---- -------- ------ ------ ------- 54,461 243,574 658 22,538 2,743 3,404 44,511 -------- -------- ---- -------- ------ ------ ------- $ 54,615 $253,806 $708 $ 21,900 $2,726 $3,532 $42,598 ======== ======== ==== ======== ====== ====== =======
149 THE HARTFORD MUTUAL FUNDS, INC. AND THE HARTFORD MUTUAL FUNDS II, INC. STATEMENT OF OPERATIONS -- (CONTINUED) FOR THE PERIOD ENDED OCTOBER 31, 2003 (000'S OMITTED) --------------------------------------------------------------------------------
THE HARTFORD THE HARTFORD GLOBAL LEADERS GLOBAL TECHNOLOGY FUND FUND -------------- ----------------- INVESTMENT INCOME: Dividends................................................. $ 7,275 $ 149 Interest.................................................. 159 20 Securities lending........................................ 256 7 Less: Foreign tax withheld................................ (464) (6) -------- ------- Total investment income (loss), net..................... 7,226 170 -------- ------- EXPENSES: Investment management and advisory fees................... 4,587 460 Transfer agent fees....................................... 1,757 143 Distribution fees Class A................................................. 1,227 74 Class B................................................. 711 100 Class C................................................. 730 117 Class H................................................. -- -- Class L................................................. -- -- Class M................................................. -- -- Class N................................................. -- -- Custodian fees............................................ 150 12 Accounting services....................................... 109 9 Registration and filing fees.............................. 61 2 Board of Director's fees.................................. 6 1 Other expenses............................................ 413 36 -------- ------- Total expenses (before reimbursements and waivers)...... 9,751 954 Expense reimbursements.................................... (7) (42) Class A distribution fees waived.......................... (59) (3) -------- ------- Total reimbursements and waivers........................ (66) (45) -------- ------- Total expenses, net..................................... 9,685 909 -------- ------- Net investment income (loss).............................. (2,459) (739) -------- ------- NET REALIZED GAIN (LOSS) ON INVESTMENTS, FUTURES CONTRACTS AND FOREIGN CURRENCY TRANSACTIONS: Net realized gain (loss) on investments................... 72,654 6,749 Net realized gain (loss) on futures contracts............. -- -- Net realized gain (loss) on foreign currency transactions............................................ 88 -- -------- ------- NET REALIZED GAIN (LOSS) ON INVESTMENTS, FUTURES CONTRACTS AND FOREIGN CURRENCY TRANSACTIONS......................... 72,742 6,749 -------- ------- NET CHANGES IN UNREALIZED APPRECIATION OR DEPRECIATION OF INVESTMENTS, FUTURES CONTRACTS AND FOREIGN CURRENCY TRANSACTIONS: Net unrealized appreciation (depreciation) of investments............................................. 52,479 15,472 Net unrealized appreciation (depreciation) of futures contracts............................................... -- -- Net unrealized appreciation (depreciation) on translation of other assets and liabilities in foreign currencies... 6 -- -------- ------- NET CHANGES IN UNREALIZED APPRECIATION OR DEPRECIATION OF INVESTMENTS, FUTURES CONTRACTS AND FOREIGN CURRENCY TRANSACTIONS.............................................. 52,485 15,472 -------- ------- NET GAIN (LOSS) ON INVESTMENTS, FUTURES CONTRACTS AND FOREIGN CURRENCY TRANSACTIONS............................. 125,227 22,221 -------- ------- NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS................................................ $122,768 $21,482 ======== =======
@@ Due to the presentation of the financial statements in thousands, the number rounds to zero. The accompanying notes are an integral part of these financial statements. 150 --------------------------------------------------------------------------------
THE HARTFORD THE HARTFORD GROWTH THE HARTFORD THE HARTFORD THE HARTFORD GROWTH OPPORTUNITIES HIGH YIELD INCOME INFLATION FUND FUND FUND FUND PLUS FUND ------------ ------------- ------------ ------------ ------------ $ 2,823 $ 2,801 $ 73 $ -- $ -- 76 162 25,114 1,047 7,107 22 91 98 -- -- (20) (49) -- -- -- ------- -------- -------- ------ ------ 2,901 3,005 25,285 1,047 7,107 ------- -------- -------- ------ ------ 2,983 4,286 2,065 104 1,166 87 31 868 58 630 65 21 485 35 229 44 18 602 28 362 44 16 598 29 818 253 406 -- -- -- 703 1,107 -- -- -- 213 213 -- -- -- 43 42 -- -- -- 14 20 16 9 10 6 2 55 3 39 77 114 26 2 7 4 6 3 @@ 2 168 268 195 37 107 ------- -------- -------- ------ ------ 4,704 6,540 4,913 305 3,370 (22) (4) (192) (92) (598) (1) (1) (19) -- -- ------- -------- -------- ------ ------ (23) (5) (211) (92) (598) ------- -------- -------- ------ ------ 4,681 6,535 4,702 213 2,772 ------- -------- -------- ------ ------ (1,780) (3,530) 20,583 834 4,335 ------- -------- -------- ------ ------ 4,681 70,198 (27,734) (7) 1,187 -- -- -- -- -- -- @@ 1,726 7 -- ------- -------- -------- ------ ------ 4,681 70,198 (26,008) -- 1,187 ------- -------- -------- ------ ------ 90,071 119,332 68,154 657 3,709 -- -- -- -- -- -- -- 145 23 -- ------- -------- -------- ------ ------ 90,071 119,332 68,299 680 3,709 ------- -------- -------- ------ ------ 94,752 189,530 42,291 680 4,896 ------- -------- -------- ------ ------ $92,972 $186,000 $ 62,874 $1,514 $9,231 ======= ======== ======== ====== ======
151 THE HARTFORD MUTUAL FUNDS, INC. AND THE HARTFORD MUTUAL FUNDS II, INC. STATEMENT OF OPERATIONS -- (CONTINUED) FOR THE PERIOD ENDED OCTOBER 31, 2003 (000'S OMITTED) --------------------------------------------------------------------------------
THE HARTFORD THE HARTFORD INTERNATIONAL CAPITAL INTERNATIONAL APPRECIATION OPPORTUNITIES FUND FUND --------------------- ------------- INVESTMENT INCOME: Dividends................................................. $ 127 $ 2,166 Interest.................................................. 7 40 Securities lending........................................ 4 69 Less: Foreign tax withheld................................ (17) (323) ------ ------- Total investment income (loss), net..................... 121 1,952 ------ ------- EXPENSES: Investment management and advisory fees................... 92 875 Transfer agent fees....................................... 29 326 Distribution fees Class A................................................. 20 209 Class B................................................. 12 184 Class C................................................. 14 136 Class H................................................. -- -- Class L................................................. -- -- Class M................................................. -- -- Class N................................................. -- -- Custodian fees............................................ 51 98 Accounting services....................................... 2 20 Registration and filing fees.............................. 1 15 Board of Director's fees.................................. @@ 1 Other expenses............................................ 12 99 ------ ------- Total expenses (before reimbursements and waivers)...... 233 1,963 Expense reimbursements.................................... (63) (56) Class A distribution fees waived.......................... (1) (11) ------ ------- Total reimbursements and waivers........................ (64) (67) ------ ------- Total expenses, net..................................... 169 1,896 ------ ------- Net investment income (loss).............................. (48) 56 ------ ------- NET REALIZED GAIN (LOSS) ON INVESTMENTS, FUTURES CONTRACTS AND FOREIGN CURRENCY TRANSACTIONS: Net realized gain (loss) on investments................... 2,072 (700) Net realized gain (loss) on futures contracts............. -- -- Net realized gain (loss) on foreign currency transactions............................................ 1 5 ------ ------- NET REALIZED GAIN (LOSS) ON INVESTMENTS, FUTURES CONTRACTS AND FOREIGN CURRENCY TRANSACTIONS......................... 2,073 (695) ------ ------- NET CHANGES IN UNREALIZED APPRECIATION OR DEPRECIATION OF INVESTMENTS, FUTURES CONTRACTS AND FOREIGN CURRENCY TRANSACTIONS: Net unrealized appreciation (depreciation) of investments............................................. 1,285 20,936 Net unrealized appreciation (depreciation) of futures contracts............................................... -- -- Net unrealized appreciation (depreciation) on translation of other assets and liabilities in foreign currencies... @@ (10) ------ ------- NET CHANGES IN UNREALIZED APPRECIATION OR DEPRECIATION OF INVESTMENTS, FUTURES CONTRACTS AND FOREIGN CURRENCY TRANSACTIONS.............................................. 1,285 20,926 ------ ------- NET GAIN (LOSS) ON INVESTMENTS, FUTURES CONTRACTS AND FOREIGN CURRENCY TRANSACTIONS............................. 3,358 20,231 ------ ------- NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS................................................ $3,310 $20,287 ====== =======
(a) The number includes $474 of practical waiver of distribution fees for Classes B and C. (See Note 3) @@ Due to the presentation of the financial statements in thousands, the number rounds to zero. The accompanying notes are an integral part of these financial statements. 152 --------------------------------------------------------------------------------
THE HARTFORD THE HARTFORD INTERNATIONAL THE HARTFORD THE HARTFORD THE HARTFORD SHORT SMALL COMPANY MIDCAP MIDCAP VALUE MONEY MARKET DURATION FUND FUND FUND FUND FUND ------------- ------------ ------------ ------------ ------------ $ 393 $ 14,301 $ 1,951 $ -- $ -- 7 784 53 5,520 1,897 22 333 32 -- -- (42) (54) (51) -- -- ------ -------- ------- ------- ------- 380 15,364 1,985 5,520 1,897 ------ -------- ------- ------- ------- 167 13,001 1,532 2,066 255 35 5,432 567 1,416 147 24 3,067 350 883 62 13 3,285 314 880 64 15 3,545 374 448 193 -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- 95 46 11 7 8 3 343 36 83 9 1 120 25 39 3 @@ 18 2 4 @@ 14 1,108 129 352 48 ------ -------- ------- ------- ------- 367 29,965 3,340 6,178 789 (99) (211) (226) (1,556)(a) (168) (1) (126) (16) (48) -- ------ -------- ------- ------- ------- (100) (337) (242) (1,604) (168) ------ -------- ------- ------- ------- 267 29,628 3,098 4,574 621 ------ -------- ------- ------- ------- 113 (14,264) (1,113) 946 1,276 ------ -------- ------- ------- ------- 3,452 12,070 1,493 8 (221) -- -- -- -- -- 3 19 4 -- -- ------ -------- ------- ------- ------- 3,455 12,089 1,497 8 (221) ------ -------- ------- ------- ------- 4,877 511,646 57,080 -- 312 -- -- -- -- -- -- @@ -- -- -- ------ -------- ------- ------- ------- 4,882 511,646 57,080 -- 312 ------ -------- ------- ------- ------- 8,337 523,735 58,577 8 91 ------ -------- ------- ------- ------- $8,450 $509,471 $57,464 $ 954 $ 1,367 ====== ======== ======= ======= =======
153 THE HARTFORD MUTUAL FUNDS, INC. AND THE HARTFORD MUTUAL FUNDS II, INC. STATEMENT OF OPERATIONS -- (CONTINUED) FOR THE PERIOD ENDED OCTOBER 31, 2003 (000'S OMITTED) --------------------------------------------------------------------------------
THE HARTFORD THE HARTFORD SMALL SMALLCAP COMPANY GROWTH FUND FUND ------------ ------------ INVESTMENT INCOME: Dividends................................................. $ 362 $ 705 Interest.................................................. 97 32 Securities lending........................................ 84 196 Less: Foreign tax withheld................................ -- -- ------- ------- Total investment income (loss), net..................... 543 933 ------- ------- EXPENSES: Investment management and advisory fees................... 1,731 1,347 Transfer agent fees....................................... 646 32 Distribution fees Class A................................................. 334 25 Class B................................................. 450 31 Class C................................................. 408 26 Class H................................................. -- 174 Class L................................................. -- 416 Class M................................................. -- 148 Class N................................................. -- 50 Custodian fees............................................ 29 18 Accounting services....................................... 41 3 Registration and filing fees.............................. 29 67 Board of Director's fees.................................. 2 1 Other expenses............................................ 158 69 ------- ------- Total expenses (before reimbursements and waivers)...... 3,828 2,407 Expense reimbursements.................................... (307) (63) Class A distribution fees waived.......................... (15) (1) ------- ------- Total reimbursements and waivers........................ (322) (64) ------- ------- Total expenses, net..................................... 3,506 2,343 ------- ------- Net investment income (loss).............................. (2,963) (1,410) ------- ------- NET REALIZED GAIN (LOSS) ON INVESTMENTS, FUTURES CONTRACTS AND FOREIGN CURRENCY TRANSACTIONS: Net realized gain (loss) on investments................... 26,133 (4,244) Net realized gain (loss) on futures contracts............. -- 279 Net realized gain (loss) on foreign currency transactions............................................ (1) -- ------- ------- NET REALIZED GAIN (LOSS) ON INVESTMENTS, FUTURES CONTRACTS AND FOREIGN CURRENCY TRANSACTIONS......................... 26,132 (3,965) ------- ------- NET CHANGES IN UNREALIZED APPRECIATION OR DEPRECIATION OF INVESTMENTS, FUTURES CONTRACTS AND FOREIGN CURRENCY TRANSACTIONS: Net unrealized appreciation (depreciation) of investments............................................. 53,306 63,579 Net unrealized appreciation (depreciation) of futures contracts............................................... -- 54 Net unrealized appreciation (depreciation) on translation of other assets and liabilities in foreign currencies... (3) -- ------- ------- NET CHANGES IN UNREALIZED APPRECIATION OR DEPRECIATION OF INVESTMENTS, FUTURES CONTRACTS AND FOREIGN CURRENCY TRANSACTIONS.............................................. 53,303 63,633 ------- ------- NET GAIN (LOSS) ON INVESTMENTS, FUTURES CONTRACTS AND FOREIGN CURRENCY TRANSACTIONS............................. 79,435 59,668 ------- ------- NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS................................................ $76,472 $58,258 ======= =======
@@ Due to the presentation of the financial statements in thousands, the number rounds to zero. The accompanying notes are an integral part of these financial statements. 154 --------------------------------------------------------------------------------
THE HARTFORD THE HARTFORD THE HARTFORD THE HARTFORD THE HARTFORD TAX-FREE TAX-FREE TAX-FREE TAX-FREE STOCK CALIFORNIA MINNESOTA NATIONAL NEW YORK FUND FUND FUND FUND FUND ------------ ------------ ------------ ------------ ------------ $ 27,046 $ -- $ -- $ -- $ -- 231 578 1,840 3,743 455 9 -- -- -- -- (22) -- -- -- -- --------- ----- ------ ------ ---- 27,264 578 1,840 3,743 455 --------- ----- ------ ------ ---- 11,360 68 281 588 58 5,078 42 12 93 35 2,847 29 9 54 25 3,533 15 5 55 10 3,041 11 4 60 13 -- -- 3 26 -- -- -- 8 18 -- -- -- 5 15 -- -- -- 2 6 -- 26 3 3 4 3 319 2 1 6 2 188 7 11 75 9 17 @@ 1 @@ 1,226 35 27 46 34 --------- ----- ------ ------ ---- 27,635 212 371 1,047 189 (72) (77) (21) (161) (72) (145) -- @@ (2) -- --------- ----- ------ ------ ---- (217) (77) (21) (163) (72) --------- ----- ------ ------ ---- 27,418 135 350 884 117 --------- ----- ------ ------ ---- (154) 443 1,490 2,859 338 --------- ----- ------ ------ ---- (211,855) (80) 361 808 89 -- -- -- -- -- -- -- -- -- -- --------- ----- ------ ------ ---- (211,855) (80) 361 808 89 --------- ----- ------ ------ ---- 472,384 (68) (193) (694) 74 -- -- -- -- -- -- -- -- -- -- --------- ----- ------ ------ ---- 472,384 (68) (193) (694) 74 --------- ----- ------ ------ ---- 260,529 (148) 168 114 163 --------- ----- ------ ------ ---- $ 260,375 $ 295 $1,658 $2,973 $501 ========= ===== ====== ====== ====
155 THE HARTFORD MUTUAL FUNDS, INC. AND THE HARTFORD MUTUAL FUNDS II, INC. STATEMENT OF OPERATIONS -- (CONTINUED) FOR THE PERIOD ENDED OCTOBER 31, 2003 (000'S OMITTED) --------------------------------------------------------------------------------
THE HARTFORD TOTAL RETURN BOND FUND ------------- INVESTMENT INCOME: Dividends................................................. $ 38 Interest.................................................. 22,847 Securities lending........................................ 193 Less: Foreign tax withheld................................ -- ------- Total investment income (loss), net..................... 23,078 ------- EXPENSES: Investment management and advisory fees................... 3,438 Transfer agent fees....................................... 1,596 Distribution fees Class A................................................. 808 Class B................................................. 1,094 Class C................................................. 1,176 Class H................................................. -- Class L................................................. -- Class M................................................. -- Class N................................................. -- Custodian fees............................................ 28 Accounting services....................................... 107 Registration and filing fees.............................. 64 Board of Director's fees.................................. 6 Other expenses............................................ 394 ------- Total expenses (before reimbursements and waivers)...... 8,711 Expense reimbursements.................................... (626) Class A distribution fees waived.......................... (38) ------- Total reimbursements and waivers........................ (664) ------- Total expenses, net..................................... 8,047 ------- Net investment income (loss).............................. 15,031 ------- NET REALIZED GAIN (LOSS) ON INVESTMENTS, FUTURES CONTRACTS AND FOREIGN CURRENCY TRANSACTIONS: Net realized gain (loss) on investments................... 20,306 Net realized gain (loss) on futures options contracts..... (171) Net realized gain (loss) on foreign currency transactions............................................ 5,629 ------- NET REALIZED GAIN (LOSS) ON INVESTMENTS, FUTURES CONTRACTS AND FOREIGN CURRENCY TRANSACTIONS......................... 25,764 ------- NET CHANGES IN UNREALIZED APPRECIATION OR DEPRECIATION OF INVESTMENTS, FUTURES CONTRACTS AND FOREIGN CURRENCY TRANSACTIONS: Net unrealized appreciation (depreciation) of investments............................................. 2,624 Net unrealized appreciation (depreciation) of futures contracts............................................... -- Net unrealized appreciation (depreciation) on translation of other assets and liabilities in foreign currencies... (625) ------- NET CHANGES IN UNREALIZED APPRECIATION OR DEPRECIATION OF INVESTMENTS, FUTURES CONTRACTS AND FOREIGN CURRENCY TRANSACTIONS.............................................. 1,999 ------- NET GAIN (LOSS) ON INVESTMENTS, FUTURES CONTRACTS AND FOREIGN CURRENCY TRANSACTIONS............................. 27,763 ------- NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS................................................ $42,794 =======
@@ Due to the presentation of the financial statements in thousands, the number rounds to zero. The accompanying notes are an integral part of these financial statements. 156 --------------------------------------------------------------------------------
THE HARTFORD THE HARTFORD U.S. GOVERNMENT THE HARTFORD VALUE SECURITIES VALUE OPPORTUNITIES FUND FUND FUND --------------- ------------ ------------- $ -- $ 1,181 $ 535 20,195 29 5 46 @@ 8 -- -- (16) ------- ------- ------- 20,241 1,210 532 ------- ------- ------- 2,732 391 398 569 156 16 258 105 10 469 59 9 421 95 8 80 -- 58 118 -- 50 60 -- 70 16 -- 18 17 4 11 34 10 1 120 6 65 4 @@ @@ 201 40 27 ------- ------- ------- 5,099 866 741 (431) (45) (49) (13) (5) @@ ------- ------- ------- (444) (50) (49) ------- ------- ------- 4,655 816 692 ------- ------- ------- 15,586 394 (160) ------- ------- ------- (42) (3,212) (861) -- -- -- -- -- @@ ------- ------- ------- (42) (3,212) (861) ------- ------- ------- (7,693) 11,241 12,036 -- -- -- -- -- @@ ------- ------- ------- (7,693) 11,241 12,036 ------- ------- ------- (7,801) 8,029 11,175 ------- ------- ------- $ 7,851 $ 8,423 $11,015 ======= ======= =======
157 THE HARTFORD MUTUAL FUNDS, INC. AND THE HARTFORD MUTUAL FUND II, INC. STATEMENT OF CHANGES IN NET ASSETS (000'S OMITTED) --------------------------------------------------------------------------------
ADVISERS FUND ----------------------------------------- FOR THE YEAR FOR THE YEAR ENDED ENDED OCTOBER 31, 2003 OCTOBER 31, 2002 ---------------- ---------------- OPERATIONS: Net investment income (loss).............................. $ 26,995 $ 30,190 Net realized gain (loss) on investments................... (122,548) (185,895) Net unrealized appreciation (depreciation) of investments............................................. 387,775 (138,097) ---------- ---------- Net increase (decrease) in net assets resulting from operations.............................................. 292,222 (293,802) ---------- ---------- DISTRIBUTIONS TO SHAREHOLDERS: From net investment income Class A................................................. (18,988) (20,818) Class B................................................. (4,119) (5,930) Class C................................................. (3,387) (4,835) Class E................................................. -- -- Class H................................................. -- -- Class L................................................. -- -- Class M................................................. -- -- Class N................................................. -- -- Class Y................................................. (119) (377) Class Z................................................. -- -- From net realized gain on investments Class A................................................. -- -- Class B................................................. -- -- Class C................................................. -- -- Class E................................................. -- -- Class H................................................. -- -- Class L................................................. -- -- Class M................................................. -- -- Class N................................................. -- -- Class Y................................................. -- -- Class Z................................................. -- -- ---------- ---------- Total distributions..................................... (26,613) (31,960) ---------- ---------- CAPITAL SHARE TRANSACTIONS: Class A................................................. 71,427 183,664 Class B................................................. (39,062) (25,825) Class C................................................. (47,453) (1,961) Class E................................................. -- -- Class H................................................. -- -- Class L................................................. -- -- Class M................................................. -- -- Class N................................................. -- -- Class Y................................................. 3,954 (54,198) Class Z................................................. -- -- Issuance of shares in connection with fund merger (Note 10) Class A................................................. -- 149,372 Class B................................................. -- 58,085 Class C................................................. -- 10,535 ---------- ---------- Net increase (decrease) from capital share transactions... (11,134) 319,672 ---------- ---------- Net increase (decrease) in net assets..................... 254,475 (6,090) NET ASSETS: Beginning of period....................................... 2,239,801 2,245,891 ---------- ---------- End of period............................................. $2,494,276 $2,239,801 ========== ========== Accumulated undistributed (distribution in excess of) net investment income......................................... $ 1,671 $ 1,166 ========== ==========
* Included in these amounts were a return of capital in the amounts of $253, 12, 16 and 12 for Classes A, B, C and Y, respectively. @@ Due to the presentation of the financial statements in thousands, the number rounds to zero. The accompanying notes are an integral part of these financial statements. 158 --------------------------------------------------------------------------------
CAPITAL APPRECIATION FUND DISCIPLINED EQUITY FUND DIVIDEND AND GROWTH FUND ----------------------------------- ----------------------------------- ----------------------------------- FOR THE YEAR FOR THE YEAR FOR THE YEAR FOR THE YEAR FOR THE YEAR FOR THE YEAR ENDED ENDED ENDED ENDED ENDED ENDED OCTOBER 31, 2003 OCTOBER 31, 2002 OCTOBER 31, 2003 OCTOBER 31, 2002 OCTOBER 31, 2003 OCTOBER 31, 2002 ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- $ (16,601) $ (22,852) $ 154 $ (1,067) $ 10,232 $ 6,236 (86,039) (611,050) (26,818) (67,844) (46,900) (10,830) 1,077,398 (63,577) 81,279 (11,848) 290,474 (155,094) ---------- ---------- -------- -------- ---------- ---------- 974,758 (697,479) 54,615 (80,759) 253,806 (159,688) ---------- ---------- -------- -------- ---------- ---------- -- -- -- -- (9,066)* (5,490) -- -- -- -- (435)* (223) -- -- -- -- (586)* (247) -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- (434)* (216) -- -- -- -- -- -- -- -- -- -- -- (8,340) -- -- -- -- -- (2,411) -- -- -- -- -- (1,890) -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- (412) -- -- -- -- -- -- ---------- ---------- -------- -------- ---------- ---------- -- -- -- -- (10,521) (19,229) ---------- ---------- -------- -------- ---------- ---------- 149,541 464,355 (26,437) 27,213 317,247 410,049 7,721 196,362 (3,043) (635) 36,875 64,289 32,787 235,783 (5,146) (6,177) 34,556 73,195 -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- 13,194 (54,635) (166) 364 21,916 (10,771) -- -- -- -- -- -- -- -- -- 20,626 -- -- -- -- -- 12,446 -- -- -- -- -- 1,856 -- -- ---------- ---------- -------- -------- ---------- ---------- 203,243 841,865 (34,792) 55,693 410,594 536,762 ---------- ---------- -------- -------- ---------- ---------- 1,178,001 144,386 19,823 (25,066) 653,879 357,845 3,349,684 3,205,298 318,691 343,757 1,173,414 815,569 ---------- ---------- -------- -------- ---------- ---------- $4,527,685 $3,349,684 $338,514 $318,691 $1,827,293 $1,173,414 ========== ========== ======== ======== ========== ========== $ 58 $ 897 $ 154 $ -- $ -- $ 9 ========== ========== ======== ======== ========== ========== EQUITY INCOME FUND ------------------------ FOR THE PERIOD AUGUST 28, 2003 THROUGH OCTOBER 31, 2003 ------------------------ $ 50 12 646 ------- 708 ------- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- ------- -- ------- 26,127 2,376 7,502 -- -- -- -- -- 100 -- -- -- -- ------- 36,105 ------- 36,813 -- ------- $36,813 ======= $ 57 =======
159 THE HARTFORD MUTUAL FUNDS, INC. AND THE HARTFORD MUTUAL FUND II, INC. STATEMENT OF CHANGES IN NET ASSETS -- (CONTINUED) (000'S OMITTED) --------------------------------------------------------------------------------
FOCUS FUND ------------------------------- FOR THE FOR THE YEAR YEAR ENDED ENDED OCTOBER 31, OCTOBER 31, 2003 2002 ----------- ----------- OPERATIONS: Net investment income (loss).............................. $ (638) $ (1,063) Net realized gain (loss) on investments................... (14,697) (15,707) Net unrealized appreciation (depreciation) of investments............................................. 37,235 (12,682) -------- -------- Net increase (decrease) in net assets resulting from operations.............................................. 21,900 (29,452) -------- -------- DISTRIBUTIONS TO SHAREHOLDERS: From net investment income Class A................................................. -- -- Class B................................................. -- -- Class C................................................. -- -- Class E................................................. -- -- Class H................................................. -- -- Class L................................................. -- -- Class M................................................. -- -- Class N................................................. -- -- Class Y................................................. -- -- Class Z................................................. -- -- From net realized gain on investments Class A................................................. -- -- Class B................................................. -- -- Class C................................................. -- -- Class E................................................. -- -- Class H................................................. -- -- Class L................................................. -- -- Class M................................................. -- -- Class N................................................. -- -- Class Y................................................. -- -- Class Z................................................. -- -- -------- -------- Total distributions..................................... -- -- -------- -------- CAPITAL SHARE TRANSACTIONS: Class A................................................. (9,612) 16,800 Class B................................................. (1,556) 5,397 Class C................................................. (3,523) 8,635 Class E................................................. -- -- Class H................................................. -- -- Class L................................................. -- -- Class M................................................. -- -- Class N................................................. -- -- Class Y................................................. 78 625 Class Z................................................. -- -- Issuance of shares in connection with fund merger (Note 10) Class A................................................. -- -- Class B................................................. -- -- Class C................................................. -- -- -------- -------- Net increase (decrease) from capital share transactions... (14,613) 31,457 -------- -------- Net increase (decrease) in net assets..................... 7,287 2,005 NET ASSETS: Beginning of period....................................... 111,650 109,645 -------- -------- End of period............................................. $118,937 $111,650 ======== ======== Accumulated undistributed (distribution in excess of) net investment income......................................... $ -- $ -- ======== ========
The accompanying notes are an integral part of these financial statements. 160 --------------------------------------------------------------------------------
GLOBAL COMMUNICATIONS FUND GLOBAL FINANCIAL SERVICES FUND GLOBAL HEALTH FUND GLOBAL LEADERS FUND --------------------------- ------------------------------- ------------------------- ------------------------- FOR THE FOR THE FOR THE FOR THE FOR THE FOR THE FOR THE FOR THE YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED OCTOBER 31, OCTOBER 31, OCTOBER 31, OCTOBER 31, OCTOBER 31, OCTOBER 31, OCTOBER 31, OCTOBER 31, 2003 2002 2003 2002 2003 2002 2003 2002 ------------ ------------ -------------- -------------- ----------- ----------- ----------- ----------- $ (17) $ (15) $ 128 $ 55 $ (1,913) $ (2,203) $ (2,459) $ 45 (454) (3,536) (493) (1,557) 4,003 5,178 72,742 (84,577) 3,197 1,451 3,897 (1,487) 40,508 (39,989) 52,485 19,055 ------- ------- ------- ------- -------- -------- -------- -------- 2,726 (2,100) 3,532 (2,989) 42,598 (37,014) 122,768 (65,477) ------- ------- ------- ------- -------- -------- -------- -------- -- -- (45) -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- (13) -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- (2,668) (2,088) -- -- -- -- -- -- (1,215) (898) -- -- -- -- -- -- (1,151) (945) -- -- -- -- -- -- (23) -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- (92) -- -- -- -- -- -- -- -- -- -- ------- ------- ------- ------- -------- -------- -------- -------- -- -- (58) -- (5,057) (4,023) -- -- ------- ------- ------- ------- -------- -------- -------- -------- 1,163 786 827 1,494 4,398 24,768 21,429 65,748 304 312 323 1,225 1,797 12,754 (6,606) (5,497) 222 190 151 1,001 488 8,274 (12,415) (19,349) -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- 19 164 (142) 754 22 (3,491) 9,675 (1,951) -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- 81,253 -- -- -- -- -- -- -- 26,325 -- -- -- -- -- -- -- 3,427 ------- ------- ------- ------- -------- -------- -------- -------- 1,708 1,452 1,159 4,474 6,705 42,305 12,083 149,956 ------- ------- ------- ------- -------- -------- -------- -------- 4,434 (648) 4,633 1,485 44,246 1,268 134,851 84,479 5,569 6,217 16,477 14,992 191,463 190,195 506,028 421,549 ------- ------- ------- ------- -------- -------- -------- -------- $10,003 $ 5,569 $21,110 $16,477 $235,709 $191,463 $640,879 $506,028 ======= ======= ======= ======= ======== ======== ======== ======== $ -- $ -- $ 130 $ 58 $ -- $ -- $ (32) $ -- ======= ======= ======= ======= ======== ======== ======== ========
161 THE HARTFORD MUTUAL FUNDS, INC. AND THE HARTFORD MUTUAL FUND II, INC. STATEMENT OF CHANGES IN NET ASSETS -- (CONTINUED) (000'S OMITTED) --------------------------------------------------------------------------------
GLOBAL TECHNOLOGY FUND ------------------------------- FOR THE FOR THE YEAR YEAR ENDED ENDED OCTOBER 31, OCTOBER 31, 2003 2002 ----------- ----------- OPERATIONS: Net investment income (loss).............................. $ (739) $ (931) Net realized gain (loss) on investments................... 6,749 (27,264) Net unrealized appreciation (depreciation) of investments............................................. 15,472 14,476 ------- -------- Net increase (decrease) in net assets resulting from operations.............................................. 21,482 (13,719) ------- -------- DISTRIBUTIONS TO SHAREHOLDERS: From net investment income Class A................................................. -- -- Class B................................................. -- -- Class C................................................. -- -- Class E................................................. -- -- Class H................................................. -- -- Class L................................................. -- -- Class M................................................. -- -- Class N................................................. -- -- Class Y................................................. -- -- Class Z................................................. -- -- From net realized gain on investments Class A................................................. -- -- Class B................................................. -- -- Class C................................................. -- -- Class E................................................. -- -- Class H................................................. -- -- Class L................................................. -- -- Class M................................................. -- -- Class N................................................. -- -- Class Y................................................. -- -- Class Z................................................. -- -- ------- -------- Total distributions..................................... -- -- ------- -------- CAPITAL SHARE TRANSACTIONS: Class A................................................. 3,006 948 Class B................................................. 1,130 398 Class C................................................. 1,510 (1,969) Class E................................................. -- -- Class H................................................. -- -- Class L................................................. -- -- Class M................................................. -- -- Class N................................................. -- -- Class Y................................................. 87 (5,064) Class Z................................................. -- -- Issuance of shares in connection with fund merger (Note 10) Class A................................................. -- -- Class B................................................. -- -- Class C................................................. -- -- ------- -------- Net increase (decrease) from capital share transactions... 5,733 (5,687) ------- -------- Net increase (decrease) in net assets..................... 27,215 (19,406) NET ASSETS: Beginning of period....................................... 36,563 55,969 ------- -------- End of period............................................. $63,778 $ 36,563 ======= ======== Accumulated undistributed (distribution in excess of) net investment income......................................... $ -- $ -- ======= ========
@@ Due to the presentation of the financial statements in thousands, the number rounds to zero. The accompanying notes are an integral part of these financial statements. 162 --------------------------------------------------------------------------------
GROWTH FUND GROWTH OPPORTUNITIES FUND HIGH YIELD FUND INCOME FUND ------------------------- ------------------------- ------------------------- -------------------------- FOR THE FOR THE FOR THE FOR THE FOR THE FOR THE FOR THE FOR THE YEAR YEAR YEAR YEAR YEAR YEAR YEAR ONE-DAY ENDED ENDED ENDED ENDED ENDED ENDED ENDED PERIOD ENDED OCTOBER 31, OCTOBER 31, OCTOBER 31, OCTOBER 31, OCTOBER 31, OCTOBER 31, OCTOBER 31, OCTOBER 31, 2003 2002 2003 2002 2003 2002 2003 2002 ----------- ----------- ----------- ----------- ----------- ----------- ----------- ------------ $ (1,780) $ (1,674) $ (3,530) $ (5,097) $ 20,583 $ 14,960 $ 834 $ -- 4,681 (82,179) 70,198 (131,326) (26,008) (11,937) -- -- 90,071 13,761 119,332 17,612 68,299 (27,352) 680 -- -------- --------- -------- --------- -------- -------- ------- ------- 92,972 (70,092) 186,000 (118,811) 62,874 (24,329) 1,514 -- -------- --------- -------- --------- -------- -------- ------- ------- -- -- -- -- (13,219) (8,394) (600) -- -- -- -- -- (4,711) (3,559) (126) -- -- -- -- -- (4,648) (3,513) (131) -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- @@ (75) -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- (13) -- (654) -- -- -- -- -- (122) -- (6,438) -- -- -- -- -- (10) -- (326) -- -- -- -- -- (2) -- (73) -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- (1,001) -- -- -- -- -------- --------- -------- --------- -------- -------- ------- ------- -- (147) -- (8,492) (22,578) (15,541) (857) -- -------- --------- -------- --------- -------- -------- ------- ------- 59,287 6,608 11,239 4,143 95,014 29,591 7,349 8,000 8,512 1,826 3,007 972 18,863 5,199 3,615 1,000 9,068 1,609 3,723 1,016 28,735 19,445 3,970 1,000 -- -- -- -- -- -- -- -- (5,061) (5,746) (7,338) (4,533) -- -- -- -- (29,332) (53,347) (45,091) (72,239) -- -- -- -- (3,081) (1,925) (2,817) (1,207) -- -- -- -- (877) (1,527) (780) (840) -- -- -- -- -- 1 -- 1 @@ (4,252) -- -- -- -- (4,243) (68,131) -- -- -- -- -- -- -- -- -- 41,430 -- -- -- -- -- -- -- 31,948 -- -- -- -- -- -- -- 2,737 -- -- -------- --------- -------- --------- -------- -------- ------- ------- 38,516 (52,501) (42,300) (140,818) 142,612 126,098 14,934 10,000 -------- --------- -------- --------- -------- -------- ------- ------- 131,488 (122,740) 143,700 (268,121) 182,908 86,228 15,591 10,000 335,652 458,392 507,790 775,911 180,731 94,503 10,000 -- -------- --------- -------- --------- -------- -------- ------- ------- $467,140 $ 335,652 $651,490 $ 507,790 $363,639 $180,731 $25,591 $10,000 ======== ========= ======== ========= ======== ======== ======= ======= $ -- $ -- $ (1) $ (6) $ (521) $ (304) $ 30 $ -- ======== ========= ======== ========= ======== ======== ======= =======
163 THE HARTFORD MUTUAL FUNDS, INC. AND THE HARTFORD MUTUAL FUND II, INC. STATEMENT OF CHANGES IN NET ASSETS -- (CONTINUED) (000'S OMITTED) --------------------------------------------------------------------------------
INFLATION PLUS FUND -------------------------------- FOR THE FOR THE YEAR ONE-DAY ENDED PERIOD ENDED OCTOBER 31, OCTOBER 31, 2003 2002 ----------- ------------ OPERATIONS: Net investment income (loss).............................. $ 4,335 $ -- Net realized gain (loss) on investments................... 1,187 -- Net unrealized appreciation (depreciation) of investments............................................. 3,709 -- -------- ------- Net increase (decrease) in net assets resulting from operations.............................................. 9,231 -- -------- ------- DISTRIBUTIONS TO SHAREHOLDERS: From net investment income Class A................................................. (1,950) -- Class B................................................. (653) -- Class C................................................. (1,491) -- Class E................................................. -- -- Class H................................................. -- -- Class L................................................. -- -- Class M................................................. -- -- Class N................................................. -- -- Class Y................................................. -- -- Class Z................................................. -- -- From net realized gain on investments Class A................................................. -- -- Class B................................................. -- -- Class C................................................. -- -- Class E................................................. -- -- Class H................................................. -- -- Class L................................................. -- -- Class M................................................. -- -- Class N................................................. -- -- Class Y................................................. -- -- Class Z................................................. -- -- -------- ------- Total distributions..................................... (4,094) -- -------- ------- CAPITAL SHARE TRANSACTIONS: Class A................................................. 132,787 8,002 Class B................................................. 66,087 1,000 Class C................................................. 157,218 1,000 Class E................................................. -- -- Class H................................................. -- -- Class L................................................. -- -- Class M................................................. -- -- Class N................................................. -- -- Class Y................................................. -- -- Class Z................................................. -- -- Issuance of shares in connection with fund merger (Note 10) Class A................................................. -- -- Class B................................................. -- -- Class C................................................. -- -- -------- ------- Net increase (decrease) from capital share transactions... 356,092 10,002 -------- ------- Net increase (decrease) in net assets..................... 361,229 10,002 NET ASSETS: Beginning of period....................................... 10,002 -- -------- ------- End of period............................................. $371,231 $10,002 ======== ======= Accumulated undistributed (distribution in excess of) net investment income......................................... $ 283 $ -- ======== =======
The accompanying notes are an integral part of these financial statements. 164 --------------------------------------------------------------------------------
INTERNATIONAL CAPITAL INTERNATIONAL OPPORTUNITIES INTERNATIONAL SMALL COMPANY APPRECIATION FUND FUND FUND MIDCAP FUND ------------------------- --------------------------- --------------------------- ------------------------- FOR THE FOR THE FOR THE FOR THE FOR THE FOR THE FOR THE FOR THE YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED OCTOBER 31, OCTOBER 31, OCTOBER 31, OCTOBER 31, OCTOBER 31, OCTOBER 31, OCTOBER 31, OCTOBER 31, 2003 2002 2003 2002 2003 2002 2003 2002 ----------- ----------- ------------ ------------ ------------ ------------ ----------- ----------- $ (48) $ 11 $ 56 $ 15 $ 113 $ 19 $ (14,264) $ (12,183) 2,073 (1,123) (695) (18,376) 3,455 (483) 12,089 (34,442) 1,285 335 20,926 8,201 4,882 (323) 511,646 (43,737) ------- ------- -------- -------- ------- ------ ---------- ---------- 3,310 (777) 20,287 (10,160) 8,450 (787) 509,471 (90,362) ------- ------- -------- -------- ------- ------ ---------- ---------- (5) -- -- -- (10) -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- (1) -- -- -- (7) -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- ------- ------- -------- -------- ------- ------ ---------- ---------- (6) -- -- -- (17) -- -- -- ------- ------- -------- -------- ------- ------ ---------- ---------- 4,449 2,614 (10,923) (12,728) 4,140 2,951 413,840 141,807 908 621 (1,535) (2,578) 697 774 63,698 22,055 911 605 (1,298) (4,144) 1,424 527 99,708 10,259 -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- 1 -- 505 (12,860) 20,669 766 39,638 (27,164) -- -- -- -- -- -- -- -- -- -- -- 12,538 -- -- -- -- -- -- -- 5,906 -- -- -- -- -- -- -- 711 -- -- -- -- ------- ------- -------- -------- ------- ------ ---------- ---------- 6,269 3,840 (13,251) (13,155) 26,930 5,018 616,884 146,957 ------- ------- -------- -------- ------- ------ ---------- ---------- 9,573 3,063 7,036 (23,315) 35,363 4,231 1,126,355 56,595 6,514 3,451 103,424 126,739 7,352 3,121 1,273,512 1,216,917 ------- ------- -------- -------- ------- ------ ---------- ---------- $16,087 $ 6,514 $110,460 $103,424 $42,715 $7,352 $2,399,867 $1,273,512 ======= ======= ======== ======== ======= ====== ========== ========== $ 1 $ 6 $ 68 $ -- $ 117 $ 18 $ (4) $ -- ======= ======= ======== ======== ======= ====== ========== ==========
165 THE HARTFORD MUTUAL FUNDS, INC. AND THE HARTFORD MUTUAL FUND II, INC. STATEMENT OF CHANGES IN NET ASSETS -- (CONTINUED) (000'S OMITTED) --------------------------------------------------------------------------------
MIDCAP VALUE FUND ------------------------------- FOR THE FOR THE YEAR YEAR ENDED ENDED OCTOBER 31, OCTOBER 31, 2003 2002 ----------- ----------- OPERATIONS: Net investment income (loss).............................. $ (1,113) $ (625) Net realized gain (loss) on investments................... 1,497 (1,808) Net unrealized appreciation (depreciation) of investments............................................. 57,080 (22,577) -------- -------- Net increase (decrease) in net assets resulting from operations.............................................. 57,464 (25,010) -------- -------- DISTRIBUTIONS TO SHAREHOLDERS: From net investment income Class A................................................. -- -- Class B................................................. -- -- Class C................................................. -- -- Class E................................................. -- -- Class H................................................. -- -- Class L................................................. -- -- Class M................................................. -- -- Class N................................................. -- -- Class Y................................................. -- -- Class Z................................................. -- -- From net realized gain on investments Class A................................................. -- -- Class B................................................. -- -- Class C................................................. -- -- Class E................................................. -- -- Class H................................................. -- -- Class L................................................. -- -- Class M................................................. -- -- Class N................................................. -- -- Class Y................................................. -- -- Class Z................................................. -- -- -------- -------- Total distributions..................................... -- -- -------- -------- CAPITAL SHARE TRANSACTIONS: Class A................................................. 25,155 83,020 Class B................................................. 6,035 23,725 Class C................................................. 5,627 28,679 Class E................................................. -- -- Class H................................................. -- -- Class L................................................. -- -- Class M................................................. -- -- Class N................................................. -- -- Class Y................................................. (279) -- Class Z................................................. -- -- Issuance of shares in connection with fund merger (Note 10) Class A................................................. -- -- Class B................................................. -- -- Class C................................................. -- -- -------- -------- Net increase (decrease) from capital share transactions... 36,538 135,424 -------- -------- Net increase (decrease) in net assets..................... 94,002 110,414 NET ASSETS: Beginning of period....................................... 153,614 43,200 -------- -------- End of period............................................. $247,616 $153,614 ======== ======== Accumulated undistributed (distribution in excess of) net investment income......................................... $ (1) $ -- ======== ========
The accompanying notes are an integral part of these financial statements. 166 --------------------------------------------------------------------------------
MONEY MARKET FUND SHORT DURATION FUND SMALL COMPANY FUND SMALLCAP GROWTH FUND ------------------------- -------------------------- ------------------------- ------------------------- FOR THE FOR THE FOR THE FOR THE FOR THE FOR THE FOR THE FOR THE YEAR YEAR YEAR ONE-DAY YEAR YEAR YEAR YEAR ENDED ENDED ENDED PERIOD ENDED ENDED ENDED ENDED ENDED OCTOBER 31, OCTOBER 31, OCTOBER 31, OCTOBER 31, OCTOBER 31, OCTOBER 31, OCTOBER 31, OCTOBER 31, 2003 2002 2003 2002 2003 2002 2003 2002 ----------- ----------- ----------- ------------ ----------- ----------- ----------- ----------- $ 946 $ 2,942 $ 1,276 $ -- $ (2,963) $ (3,038) $ (1,410) $ (2,034) 8 -- (221) -- 26,132 (28,649) (3,965) (6,787) -- -- 312 -- 53,303 (9,099) 63,633 (17,373) --------- -------- ------- ------- -------- -------- -------- -------- 954 2,942 1,367 -- 76,472 (40,786) 58,258 (26,194) --------- -------- ------- ------- -------- -------- -------- -------- (929) (2,373) (646) -- -- -- -- -- (5) (225) (160) -- -- -- -- -- (3) (217) (477) -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- (17) (127) -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- (418) -- -- -- -- -- -- -- (2,073) -- -- -- -- -- -- -- (335) -- -- -- -- -- -- -- (118) -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- --------- -------- ------- ------- -------- -------- -------- -------- (954) (2,942) (1,283) -- -- -- -- (2,944) --------- -------- ------- ------- -------- -------- -------- -------- (56,663) 22,036 24,661 8,002 4,590 1,791 10,372 4,351 (31,316) 44,803 9,191 1,000 (24) 1,843 3,446 2,107 (35,939) 11,397 29,681 1,000 (1,922) (2,682) 2,486 1,754 -- -- -- -- -- -- -- -- -- -- -- -- -- -- (2,779) (2,423) -- -- -- -- -- -- (11,123) (15,851) -- -- -- -- -- -- (1,596) (1,079) -- -- -- -- -- -- (588) (626) (1,653) (30,494) -- -- (534) (23,496) -- 1 -- -- -- -- -- -- -- -- -- 194,078 -- -- -- -- -- -- -- 5,247 -- -- -- -- -- -- -- 624 -- -- -- -- -- -- --------- -------- ------- ------- -------- -------- -------- -------- (125,571) 247,691 63,533 10,002 2,110 (22,544) 218 (11,766) --------- -------- ------- ------- -------- -------- -------- -------- (125,571) 247,691 63,617 10,002 78,582 (63,330) 58,476 (40,904) 470,619 222,928 10,002 -- 187,513 250,843 128,206 169,110 --------- -------- ------- ------- -------- -------- -------- -------- $ 345,048 $470,619 $73,619 $10,002 $266,095 $187,513 $186,682 $128,206 ========= ======== ======= ======= ======== ======== ======== ======== $ -- $ -- $ 28 $ -- $ -- $ -- $ -- $ -- ========= ======== ======= ======= ======== ======== ======== ========
167 THE HARTFORD MUTUAL FUNDS, INC. AND THE HARTFORD MUTUAL FUND II, INC. STATEMENT OF CHANGES IN NET ASSETS -- (CONTINUED) (000'S OMITTED) --------------------------------------------------------------------------------
STOCK FUND ------------------------------- FOR THE FOR THE YEAR YEAR ENDED ENDED OCTOBER 31, OCTOBER 31, 2003 2002 ----------- ----------- OPERATIONS: Net investment income (loss).............................. $ (154) $ (5,809) Net realized gain (loss) on investments................... (211,855) (250,183) Net unrealized appreciation (depreciation) of investments............................................. 472,384 (152,541) ---------- ---------- Net increase (decrease) in net assets resulting from operations.............................................. 260,375 (408,533) ---------- ---------- DISTRIBUTIONS TO SHAREHOLDERS: From net investment income Class A................................................. -- -- Class B................................................. -- -- Class C................................................. -- -- Class E................................................. -- -- Class H................................................. -- -- Class L................................................. -- -- Class M................................................. -- -- Class N................................................. -- -- Class Y................................................. -- -- Class Z................................................. -- -- From net realized gain on investments Class A................................................. -- -- Class B................................................. -- -- Class C................................................. -- -- Class E................................................. -- -- Class H................................................. -- -- Class L................................................. -- -- Class M................................................. -- -- Class N................................................. -- -- Class Y................................................. -- -- Class Z................................................. -- -- ---------- ---------- Total distributions..................................... -- -- ---------- ---------- CAPITAL SHARE TRANSACTIONS: Class A................................................. (54,575) 72,759 Class B................................................. (31,128) (24,517) Class C................................................. (49,483) (32,747) Class E................................................. -- -- Class H................................................. -- -- Class L................................................. -- -- Class M................................................. -- -- Class N................................................. -- -- Class Y................................................. 3,637 13,254 Class Z................................................. -- -- Issuance of shares in connection with fund merger (Note 10) Class A................................................. -- -- Class B................................................. -- -- Class C................................................. -- -- ---------- ---------- Net increase (decrease) from capital share transactions... (131,549) 28,749 ---------- ---------- Net increase (decrease) in net assets..................... 128,826 (379,784) NET ASSETS: Beginning of period....................................... 1,579,042 1,958,826 ---------- ---------- End of period............................................. $1,707,868 $1,579,042 ========== ========== Accumulated undistributed (distribution in excess of) net investment income......................................... $ -- $ -- ========== ==========
@@ Due to the presentation of the financial statements in thousands, the number rounds to zero. The accompanying notes are an integral part of these financial statements. 168 --------------------------------------------------------------------------------
TAX-FREE CALIFORNIA FUND TAX-FREE MINNESOTA FUND TAX-FREE NATIONAL FUND TAX-FREE NEW YORK FUND -------------------------- ------------------------- ------------------------- -------------------------- FOR THE FOR THE FOR THE FOR THE FOR THE FOR THE FOR THE FOR THE YEAR ONE-DAY YEAR YEAR YEAR YEAR YEAR ONE-DAY ENDED PERIOD ENDED ENDED ENDED ENDED ENDED ENDED PERIOD ENDED OCTOBER 31, OCTOBER 31, OCTOBER 31, OCTOBER 31, OCTOBER 31, OCTOBER 31, OCTOBER 31, OCTOBER 31, 2003 2002 2003 2002 2003 2002 2003 2002 ----------- ------------ ----------- ----------- ----------- ----------- ----------- ------------ $ 443 $ -- $ 1,490 $ 1,386 $ 2,859 $ 2,079 $ 338 $ -- (80) -- 361 687 808 1,606 89 -- (68) -- (193) (490) (694) (987) 74 -- ------- ------- ------- ------- ------- ------- ------- ------- 295 -- 1,658 1,583 2,973 2,698 501 -- ------- ------- ------- ------- ------- ------- ------- ------- (367) -- (105) (19) (656) (116) (286) -- (48) -- (16) (2) (170) (29) (28) -- (35) -- (11) (1) (185) (25) (35) -- -- -- (1,234) (1,167) (1,434) (1,450) -- -- -- -- (9) (23) (77) (99) -- -- -- -- (117) (118) (279) (259) -- -- -- -- (16) (16) (44) (47) -- -- -- -- (6) (6) (19) (17) -- -- -- -- @@ -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- (11) -- (282) -- -- -- -- -- (1) -- (85) -- -- -- -- -- (2) -- (72) -- -- -- -- -- (158) -- (886) (167) -- -- -- -- (2) -- (65) (18) -- -- -- -- (17) -- (166) (32) -- -- -- -- (3) -- (35) (7) -- -- -- -- (1) -- (13) (2) -- -- -- -- @@ -- -- -- -- -- -- -- -- -- -- -- -- -- ------- ------- ------- ------- ------- ------- ------- ------- (450) -- (1,709) (1,352) (4,468) (2,268) (349) -- ------- ------- ------- ------- ------- ------- ------- ------- 2,917 8,000 1,190 2,075 9,628 12,110 480 8,000 852 1,000 297 238 2,940 3,750 36 1,000 242 1,000 112 305 4,570 3,110 378 1,000 -- -- (1,608) (1,325) (4,737) (3,291) -- -- -- -- (427) (517) (1,094) (1,768) -- -- -- -- (415) (224) 234 (713) -- -- -- -- (107) (212) (287) (188) -- -- -- -- 9 (1) 18 56 -- -- -- -- @@ 1 -- 1 -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- ------- ------- ------- ------- ------- ------- ------- ------- 4,011 10,000 (949) 340 11,272 13,067 894 10,000 ------- ------- ------- ------- ------- ------- ------- ------- 3,856 10,000 (1,000) 571 9,777 13,497 1,046 10,000 10,000 -- 38,716 38,145 70,908 57,411 10,000 -- ------- ------- ------- ------- ------- ------- ------- ------- $13,856 $10,000 $37,716 $38,716 $80,685 $70,908 $11,046 $10,000 ======= ======= ======= ======= ======= ======= ======= ======= $ 30 $ -- $ 10 $ 34 $ 32 $ 37 $ 27 $ -- ======= ======= ======= ======= ======= ======= ======= =======
169 THE HARTFORD MUTUAL FUNDS, INC. AND THE HARTFORD MUTUAL FUND II, INC. STATEMENT OF CHANGES IN NET ASSETS -- (CONTINUED) (000'S OMITTED) --------------------------------------------------------------------------------
TOTAL RETURN BOND FUND ------------------------------- FOR THE FOR THE YEAR YEAR ENDED ENDED OCTOBER 31, OCTOBER 31, 2003 2002 ----------- ----------- OPERATIONS: Net investment income (loss).............................. $ 15,031 $ 14,973 Net realized gain (loss) on investments................... 25,764 5,803 Net unrealized appreciation (depreciation) of investments............................................. 1,999 (4,166) -------- -------- Net increase (decrease) in net assets resulting from operations.............................................. 42,794 16,610 -------- -------- DISTRIBUTIONS TO SHAREHOLDERS: From net investment income Class A................................................. (11,495) (7,842) Class B................................................. (4,147) (3,073) Class C................................................. (4,443) (3,440) Class E................................................. -- -- Class H................................................. -- -- Class L................................................. -- -- Class M................................................. -- -- Class N................................................. -- -- Class Y................................................. (2,523) (1,791) Class Z................................................. -- -- From net realized gain on investments Class A................................................. (2,184) (732) Class B................................................. (983) (343) Class C................................................. (1,069) (377) Class E................................................. -- -- Class H................................................. -- -- Class L................................................. -- -- Class M................................................. -- -- Class N................................................. -- -- Class Y................................................. (393) (263) Class Z................................................. -- -- -------- -------- Total distributions..................................... (27,237) (17,861) -------- -------- CAPITAL SHARE TRANSACTIONS: Class A................................................. 46,299 92,879 Class B................................................. 4,755 42,260 Class C................................................. (859) 45,451 Class E................................................. -- -- Class H................................................. -- -- Class L................................................. -- -- Class M................................................. -- -- Class N................................................. -- -- Class Y................................................. 18,951 (3,250) Class Z................................................. -- -- Issuance of shares in connection with fund merger (Note 10) Class A................................................. -- -- Class B................................................. -- -- Class C................................................. -- -- -------- -------- Net increase (decrease) from capital share transactions... 69,146 177,340 -------- -------- Net increase (decrease) in net assets..................... 84,703 176,089 NET ASSETS: Beginning of period....................................... 460,368 284,279 -------- -------- End of period............................................. $545,071 $460,368 ======== ======== Accumulated undistributed (distribution in excess of) net investment income......................................... $ 219 $ 555 ======== ========
@@ Due to the presentation of the financial statements in thousands, the number rounds to zero. The accompanying notes are an integral part of these financial statements. 170 --------------------------------------------------------------------------------
U.S. GOVERNMENT SECURITIES FUND VALUE FUND VALUE OPPORTUNITIES FUND ------------------------------- ------------------------- ------------------------- FOR THE FOR THE FOR THE FOR THE FOR THE FOR THE YEAR YEAR YEAR YEAR YEAR YEAR ENDED ENDED ENDED ENDED ENDED ENDED OCTOBER 31, OCTOBER 31, OCTOBER 31, OCTOBER 31, OCTOBER 31, OCTOBER 31, 2003 2002 2003 2002 2003 2002 -------------- -------------- ----------- ----------- ----------- ----------- $ 15,586 $ 11,065 $ 394 $ 194 $ (160) $ (181) (42) 12,535 (3,212) (4,159) (861) (7,257) (7,693) (6,917) 11,241 (6,448) 12,036 (1,174) -------- -------- ------- -------- ------- ------- 7,851 16,683 8,423 (10,413) 11,015 (8,612) -------- -------- ------- -------- ------- ------- (3,401) (660) (236) -- -- -- (1,645) (272) -- -- -- -- (1,473) (289) -- -- -- -- (6,861) (6,920) -- -- -- -- (285) (331) -- -- -- -- (2,045) (2,041) -- -- -- -- (213) (218) -- -- -- -- (58) (65) -- -- -- -- @@ @@ (3) -- -- -- -- -- -- -- -- -- -- -- -- (79) -- -- -- -- -- (12) -- -- -- -- -- (27) -- -- -- -- -- -- -- -- -- -- -- -- -- (556) -- -- -- -- -- (1,884) -- -- -- -- -- (583) -- -- -- -- -- (184) -- -- -- (1) -- -- -- -- -- -- -- -- -------- -------- ------- -------- ------- ------- (15,981) (10,796) (239) (119) -- (3,207) -------- -------- ------- -------- ------- ------- (8,185) 74,121 6,481 23,394 2,347 3,054 104 38,705 1,084 4,471 1,168 557 (13,021) 40,119 (431) 6,440 960 496 (17,167) (33,953) -- -- -- -- (2,903) (1,617) -- -- (678) (425) (4,907) (4,483) -- -- (2,566) (1,773) (1,961) (55) -- -- (575) 226 (300) (584) -- -- (225) (301) @@ 1 (226) 2 -- 1 -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -------- -------- ------- -------- ------- ------- (48,340) 112,254 6,908 34,307 431 1,835 -------- -------- ------- -------- ------- ------- (56,470) 118,141 15,092 23,775 11,446 (9,984) 378,059 259,918 44,572 20,797 37,248 47,232 -------- -------- ------- -------- ------- ------- $321,589 $378,059 $59,664 $ 44,572 $48,694 $37,248 ======== ======== ======= ======== ======= ======= $ 1 $ 42 $ 349 $ 194 $ (1) $ -- ======== ======== ======= ======== ======= =======
171 THE HARTFORD MUTUAL FUNDS, INC. AND THE HARTFORD MUTUAL FUND II, INC. NOTES TO FINANCIAL STATEMENTS OCTOBER 31, 2003 (000'S OMITTED) -------------------------------------------------------------------------------- 1. ORGANIZATION: The Hartford Mutual Funds, Inc. and The Hartford Mutual Funds II, Inc. (the Companies) are open-end management investment companies comprised of thirty-four portfolios (each a "Fund" or together the "Funds"). They are The Hartford Advisers Fund, The Hartford Capital Appreciation Fund, The Hartford Disciplined Equity Fund, The Hartford Dividend and Growth Fund, The Hartford Equity Income Fund, The Hartford Focus Fund, The Hartford Global Communications Fund, The Hartford Global Financial Services Fund, The Hartford Global Health Fund, The Hartford Global Leaders Fund, The Hartford Global Technology Fund, The Hartford Growth Fund, The Hartford Growth Opportunities Fund, The Hartford High Yield Fund, The Hartford Income Fund, The Hartford Inflation Plus Fund, The Hartford International Capital Appreciation Fund, The Hartford International Opportunities Fund, The Hartford International Small Company Fund, The Hartford MidCap Fund, The Hartford MidCap Value Fund, The Hartford Money Market Fund, The Hartford Short Duration Fund, The Hartford Small Company Fund, The Hartford SmallCap Growth Fund, The Hartford Stock Fund, The Hartford Tax-Free California Fund, The Hartford Tax-Free Minnesota Fund, The Hartford Tax-Free National Fund, The Hartford Tax-Free New York Fund, The Hartford Total Return Bond Fund, The Hartford U.S. Government Securities Fund, The Hartford Value Fund and The Hartford Value Opportunities Fund. The Companies are organized under the laws of the State of Maryland and are registered with the Securities and Exchange Commission (SEC) under the Investment Company Act of 1940, as amended, as diversified open-end management investment companies, except for The Hartford Focus Fund, The Hartford Global Communications Fund, The Hartford Global Financial Services Fund, The Hartford Global Health Fund, The Hartford Global Technology Fund, The Hartford Inflation Plus Fund, The Hartford Tax-Free California Fund and The Hartford Tax-Free New York Fund which are non-diversified. The Funds, their classes and investment objectives are listed below: The Hartford Advisers Fund (Advisers Fund) Seeks maximum long-term total return. Classes A, B, C and Y The Hartford Capital Appreciation Fund Seeks growth of capital. (Capital Appreciation Fund) Classes A, B, C and Y The Hartford Disciplined Equity Fund Seeks growth of capital and current income. (Disciplined Equity) Classes A, B, C and Y The Hartford Dividend and Growth Fund Seeks a high level of current income consistent with growth (Dividend and Growth Fund) of capital. Classes A, B, C and Y The Hartford Equity Income Fund Seeks a high level of current income consistent with growth (Equity Income) of capital. Classes A, B, C and Y The Hartford Focus Fund (Focus Fund) Seeks long-term capital appreciation. Classes A, B, C and Y The Hartford Global Communications Fund Seeks long-term capital appreciation. (Global Communications Fund) Classes A, B, C and Y The Hartford Global Financial Services Fund Seeks long-term capital appreciation. (Global Financial Services Fund) Classes A, B, C and Y The Hartford Global Health Fund Seeks long-term capital appreciation. (Global Health Fund) Classes A, B, C and Y The Hartford Global Leaders Fund Seeks growth of capital. (Global Leaders Fund) Classes A, B, C and Y The Hartford Global Technology Fund Seeks long-term capital appreciation. (Global Technology Fund) Classes A, B, C and Y The Hartford Growth Fund (Growth Fund) Seeks long-term capital appreciation. Classes A, B, C, H, L, M, N and Y The Hartford Growth Opportunities Fund Seeks short- and long-term capital appreciation. (Growth Opportunities Fund) Classes A, B, C, H, L, M, N, Y and Z The Hartford High Yield Fund Seeks high current income. Growth of capital is a secondary (High Yield Fund) objective. Classes A, B, C and Y
172 -------------------------------------------------------------------------------- The Hartford Income Fund (Income Fund) Seeks to provide a high level of current income. Capital Classes A, B and C appreciation is a secondary objective. The Hartford Inflation Plus Fund Seeks a total return that exceeds the rate of inflation over (Inflation Plus Fund) an economic cycle. Classes A, B and C The Hartford International Capital Appreciation Fund Seeks capital appreciation. (International Capital Appreciation Fund) Classes A, B, C and Y The Hartford International Opportunities Seeks growth of capital. Fund (International Opportunities Fund) Classes A, B, C and Y The Hartford International Small Company Fund Seeks capital appreciation. (International Small Company Fund) Classes A, B, C and Y The Hartford MidCap Fund Seeks long-term growth of capital. (MidCap Fund) Classes A, B, C and Y The Hartford MidCap Value Fund Seeks long-term capital appreciation. (MidCap Value Fund) Classes A, B, C and Y The Hartford Money Market Fund Seeks maximum current income consistent with liquidity and (Money Market Fund) preservation of capital. Classes A, B, C and Y The Hartford Short Duration Fund Seeks to provide a high level of income. (Short Duration Fund) Classes A, B and C The Hartford Small Company Fund Seeks growth of capital. (Small Company Fund) Classes A, B, C and Y The Hartford SmallCap Growth Fund Seeks to maximize short- and long-term capital appreciation. (SmallCap Growth Fund) Classes A, B, C, H, L, M, N and Y The Hartford Stock Fund Seeks long-term growth of capital, with income as a (Stock Fund) secondary consideration. Classes A, B, C and Y The Hartford Tax-Free California Fund Seeks to provide current income exempt from both federal and (Tax-Free California Fund) California income tax. Classes A, B and C The Hartford Tax-Free Minnesota Fund Seeks to provide current income exempt from both federal (Tax-Free Minnesota Fund) income tax and Minnesota state personal income tax. Classes A, B, C, E, H, L, M, N and Y The Hartford Tax-Free National Fund Seeks to provide current income exempt from federal income (Tax-Free National Fund) tax. Classes A, B, C, E, H, L, M, N and Y The Hartford Tax-Free New York Fund Seeks to provide current income exempt from federal, New (Tax-Free New York Fund) York State and New York City income tax. Classes A, B and C The Hartford Total Return Bond Fund Seeks a competitive total return, with income as a secondary (Total Return Bond Fund) objective. Classes A, B, C and Y The Hartford U.S. Government Securities Fund Seeks to provide current income while maintaining (U.S. Government Securities Fund) preservation of capital consistent with prudent investment Classes A, B, C, E, H, L, M, N and Y risk. The Hartford Value Fund Seeks long-term total return. (Value Fund) Classes A, B, C and Y The Hartford Value Opportunities Fund Seeks short- and long-term capital appreciation. (Value Opportunities Fund) Classes A, B, C, H, L, M, N and Y
173 THE HARTFORD MUTUAL FUNDS, INC. AND THE HARTFORD MUTUAL FUND II, INC. NOTES TO FINANCIAL STATEMENTS -- (CONTINUED) OCTOBER 31, 2003 (000'S OMITTED) -------------------------------------------------------------------------------- Effective October 30, 2002, the name of The Hartford Bond Income Strategy Fund was changed to The Hartford Total Return Bond Fund and effective August 1, 2003, the name of The Hartford Growth and Income Fund was changed to The Hartford Disciplined Equity Fund. Class A shares are sold with a front-end 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 up to 5.00% to zero depending on the period of time the shares are held. Class C shares are sold with a front-end sales charge of up to 1% and a contingent deferred sales charge of up to 1%. Class E is sold with a front-end sales charge of 4.50%. Classes H and M 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 4.00% to zero depending on the period of time the shares are held. Class L is sold with a sales charge up to 4.75%. Class N is sold with a contingent deferred sales charge of 1.00% if redeemed within 1 year. Class Y shares are sold to certain eligible institutional investors without a sales charge. Class Z is sold without sales charges. 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, and except that Class B shares automatically convert to Class A shares after 8 years. Classes H and N shares will automatically convert to Class L after 8 years. 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 AND INVESTMENT INCOME -- 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. For securities traded on the NASDAQ national market system, the Funds utilize the NASDAQ Official Closing Price which compares the last trade to the bid/ask range of a security. If the last trade falls within the bid/ask range, then that price will be the closing price. If the last trade is outside the bid/ask range, and falls above the ask, the ask will be the closing price. If the last price is below the bid, the bid will be the closing price. The difference between cost and market value for debt and equity securities is recorded in the Statement of Operations and accumulated in net assets. 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. In the remaining Funds, short-term investments with 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 becomes less than 61 days. From such time until maturity, the investments are valued at amortized cost. The funds use market prices in valuing portfolio securities, but may use fair value estimates, as determined by Hartford Investment Financial Services Company (HIFSCO) under procedures established by the Board of Directors, if reliable market prices are unavailable. Fair value pricing may be used by a fund when current market values are unavailable or when an event occurs after the close of the exchange on which the fund's portfolio securities are principally traded that is likely to have changed the value of the securities. The use of fair value pricing by a fund may cause the net asset value of its shares to differ significantly from the net asset value that would be calculated using current market values. Securities of foreign issuers and non-dollar securities are valued on the basis of quotations from the primary market in which they are traded, and are translated from the local currency into U.S. dollars using current exchange rates. 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 prices are not available from an independent pricing service, but where an active market exists, are valued using market quotations obtained from one or more dealers that make markets in the securities or from an approved quotation system. Investment income such as dividend income is recorded on the ex-dividend date. Interest income, including amortization of bond premium and discount, is recorded on the accrual basis. C) FOREIGN CURRENCY TRANSACTIONS -- The accounting records of the Funds are maintained in U.S. dollars. All assets and liabilities initially expressed in foreign currencies are converted into U.S. dollars at prevailing exchange rates. Purchases and sales of investment securities, dividend and interest income and certain expenses are translated at the rates of exchange prevailing on the respective dates of such transactions. The Funds do not isolate that portion of 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 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. Net unrealized foreign exchange gains or losses arise from changes in the value of other assets and liabilities at the end of the reporting period, resulting from changes in the exchange rates. D) SECURITIES LENDING -- The Funds, except for the Money Market Fund, may lend their securities to certain qualified brokers who pay these Funds negotiated lender fees. The loans are collateralized at all times with cash, which is then invested in short-term money market instruments with a market value at least equal to the market value of the securities on loan. As with other extensions of credit, these Funds may bear the risk of delays or cost of the recovery of loaned securities or gaining access to the collateral should the borrower of the securities fail financially. 174 -------------------------------------------------------------------------------- E) JOINT TRADING ACCOUNT -- Pursuant to an exemptive order issued by the Securities and Exchange Commission (SEC), the Funds may transfer uninvested cash balances into a joint trading account managed by The Hartford Investment Management Company (Hartford Investment) or Wellington Management Company, LLP (Wellington). These balances may be invested in one or more repurchase agreements and/or short-term money market instruments. F) 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. Securities that 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. Certain Funds, together with other investment management companies having investment advisory agreements with Wellington have an interest in $2,724,481 joint repurchase agreements dated 10/31/03 with ABN AMRO, BNP Paribas and UBS Securities due 11/03/03. These joint repurchase agreements are collateralized as follows:
BROKER RATE PRINCIPAL COLLATERAL VALUE SECURITY TYPE COUPON RATE MATURITY ------ ----- ---------- ---------------- ---------------------- ------------- --------- ABN AMRO......................... 1.00% $ 395,000 $ 397,329 U.S. Treasury Bonds 11.25%-5.50% 2015-2028 U.S. Treasury Notes 7.50%-1.75% 2015-2004 BNP Paribas...................... 1.00% 1,039,481 1,060,860 U.S. Treasury Bonds 11.25%-5.25% 2015-2028 U.S. Treasury Notes 3.00% 2004 U.S. Treasury Bills 1.01%-0.92% 2004 UBS Securities................... 0.99% 790,000 801,830 U.S. Treasury 3.75%-3.375% 2011-2012 Inflation Linked Bonds UBS Securities................... 0.97% 500,000 508,490 U.S. Treasury 3.625%-1.875% 2012-2028 Inflation Linked Bonds
The maturity amounts are as follows:
MATURITY FUND AMOUNT ---- -------- Advisers Fund............................................... $ 81,278 Capital Appreciation Fund................................... 561,796 Dividend and Growth Fund.................................... 101,048 Disciplined Equity Fund..................................... 565 Equity Income Fund.......................................... 1,825 Focus Fund.................................................. 304 Global Communications Fund.................................. 224 Global Financial Services................................... 1,067 Global Health Fund.......................................... 6,684 Global Leaders Fund......................................... 16,300 Global Technology Fund...................................... 2,411 Growth Fund................................................. 14,858 Growth Opportunities Fund................................... 14,889 International Capital Appreciation Fund..................... 1,678 International Opportunities Fund............................ 2,966 International Small Company Fund............................ 4,907 MidCap Fund................................................. 97,640 MidCap Value Fund........................................... 9,968 Small Company Fund.......................................... 17,393 SmallCap Growth Fund........................................ 1,497 Stock Fund.................................................. 29,210 Value Fund.................................................. 690 Value Opportunities Fund.................................... 501
Certain Funds, together with other investment management companies having investment advisory agreements with Hartford Investment have an interest in a $527,276 joint repurchase agreements dated 10/31/03 with Banc One, BNP Paribas and UBS Warburg due 11/03/03. These joint repurchase agreements are collateralized as follows:
BROKER RATE PRINCIPAL COLLATERAL VALUE SECURITY TYPE COUPON RATE MATURITY ------ ----- --------- ---------------- ------------------- ------------ --------- Banc One.............................. 0.97% $127,226 $128,153 U.S. Treasury Bills 3.25%-0.91% 2003-2004 BNP Paribas........................... 0.99% 200,000 204,139 U.S. Treasury Bills 0.96%-0.89% 2003-2004 UBS Warburg........................... 0.98% 200,000 200,903 U.S. Treasury Bonds 8.125%-5.13% 2016-2028
175 THE HARTFORD MUTUAL FUNDS, INC. AND THE HARTFORD MUTUAL FUND II, INC. NOTES TO FINANCIAL STATEMENTS -- (CONTINUED) OCTOBER 31, 2003 (000'S OMITTED) -------------------------------------------------------------------------------- The maturity amounts are as follows:
MATURITY FUND AMOUNT ---- -------- High Yield Fund.................................. $ 8,599 Income Fund...................................... 193 Money Market Fund................................ 8,479 Short Duration Fund.............................. 1,237 Total Return Bond Fund........................... 25,584 U.S. Government Securities Fund.................. 10,248
The SmallCap Growth Fund has an interest in a $1,497 repurchase agreement dated 10/31/03 with UBS Securities, 0.99% due 11/03/03. This repurchase agreement is collateralized by $1,503 U.S. Treasury Bond 6.125% due 2027. In addition, the Capital Appreciation Fund has a repurchase agreement as collateral for securities lending. The lending agreement was collateralized by an interest in a $56,039 repurchase agreement dated 10/31/03 with Bear, Stearns & Co., 0.99% due 11/03/03. This repurchase agreement is collateralized by $56,252, a FNCL #555783 4.50% due 2033. G) FUTURES, OPTIONS ON FUTURES AND OPTIONS TRANSACTIONS -- Certain Funds may invest in futures contracts and options contracts in order to gain exposure to or protect against changes in the market. 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, commercial paper 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 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 use of futures contracts involve elements of market risk, which may exceed the amounts recognized in the Statements of Assets and Liabilities. Change in the value of the futures contracts may decrease the effectiveness of a Fund's strategies and potentially result in loss. The premium paid by a Fund for the purchase of a call or put option is included in the Fund's Statement of Assets and Liabilities as an investment and subsequently "marked-to-market" through net unrealized appreciation (depreciation) of options to reflect the current market value of the option as of the end of the reporting period. If a purchased option expires on its stipulated expiration date, the Fund realizes a loss in the amount of 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 a 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 its 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. A Fund receives a premium for writing a call or put option, recorded as a component of other liabilities on the Statements of Assets and Liabilities, 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. There is a risk of loss from a change in value of such options, which may exceed the related premiums received. The Total Return Bond Fund contracts and premium amounts associated with options contracts written are as follows:
FOR THE YEAR ENDED OCTOBER 31, 2003 ------------------------------------------ PUTS CALLS -------------------- ------------------- TOTAL RETURN BOND CONTRACTS PREMIUM CONTRACTS PREMIUM ----------------- --------- -------- --------- ------- Balance October 31, 2002............... -- $ -- -- $ -- Opened............... 750 113,708 750 55,114 Closed............... (750) (113,708) -- -- Exercised............ -- -- -- -- Expired.............. -- -- (750) (55,114) ---- -------- ---- ------- Balance October 31, 2003............... -- $ -- -- $ -- ---- -------- ---- -------
As of October 31, 2003, none of the Funds had open option contracts. H) FORWARD FOREIGN CURRENCY CONTRACTS -- For the year ended October 31, 2003, the Capital Appreciation Fund, the Global Communications Fund, the Global Financial Services Fund, the Global Leaders Fund, the International Capital Appreciation Fund, the International Opportunities Fund, the International Small Company Fund, the MidCap Value Fund and the Small Company 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 Statements of Assets and Liabilities. 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. I) INDEXED SECURITIES -- The Funds may invest in indexed securities whose values are linked to changes in interest rates, indices, or other underlying instruments. The Funds use these 176 -------------------------------------------------------------------------------- securities to increase or decrease their exposure to different underlying instruments and to gain exposure to markets that might be difficult to invest through conventional securities. Indexed securities may be more volatile than their underlying instruments, but any loss is limited to the amount of the original investment and there is a limit to the potential appreciation of the investment. J) 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 requirements of regulated investment companies. On a calendar year basis, the Funds are subject to a 4% federal excise tax to the extent they do not distribute substantially all of their net investment income and realized gains, if any. Accordingly, no provision for federal income taxes has been made in the accompanying financial statements. The tax character of distributions paid for the periods indicated is as follows:
FOR THE PERIOD FOR THE PERIOD ENDED ENDED OCTOBER 31, 2003 OCTOBER 31, 2002 ---------------- ---------------- ADVISERS FUND Ordinary income........... $26,613 $31,960 DIVIDEND AND GROWTH FUND Ordinary income........... 10,229 6,346 Return of capital......... 293 Long-term capital gains... 12,883 GLOBAL FINANCIAL SERVICES FUND Ordinary income........... 58 GLOBAL HEALTH FUND Ordinary income........... 1,236 2,670 Long-term capital gains... 3,821 1,353 GROWTH FUND Long-term capital gains... 147 GROWTH OPPORTUNITIES FUND Long-term capital gains... 8,492 HIGH YIELD FUND Ordinary income........... 22,578 15,541
FOR THE PERIOD FOR THE PERIOD ENDED ENDED OCTOBER 31, 2003 OCTOBER 31, 2002 ---------------- ---------------- INCOME FUND Ordinary income........... $ 857 INFLATION PLUS FUND Ordinary income........... 4,094 INTERNATIONAL CAPITAL APPRECIATION FUND Ordinary income........... 6 INTERNATIONAL SMALL COMPANY FUND Ordinary income........... 17 MONEY MARKET FUND Ordinary income........... 954 $ 2,942 SHORT DURATION FUND Ordinary income........... 1,283 SMALL CAP GROWTH FUND Long-term capital gains... 2,944 TAX-FREE CALIFORNIA FUND Ordinary income........... 450 TAX-FREE MINNESOTA FUND Ordinary income........... 1,514 1,352 Long-term capital gains... 195 TAX-FREE NATIONAL FUND Ordinary income........... 2,864 2,171 Long-term capital gains... 1,604 97 TAX-FREE NEW YORK Ordinary income........... 349 TOTAL RETURN BOND FUND Ordinary income........... 25,854 16,772 Long-term capital gains... 1,383 1,089 U.S. GOVERNMENT SECURITIES FUND Ordinary income........... 15,981 10,796 VALUE FUND Ordinary income........... 239 119 VALUE OPPORTUNITIES FUND Ordinary income........... 1,805 Long-term capital gains... 1,402
As of October 31, 2003, the components of distributable earnings on a tax basis are as follows:
TOTAL UNDISTRIBUTED UNDISTRIBUTED ACCUMULATED UNREALIZED ACCUMULATED ORDINARY LONG-TERM CAPITAL GAINS APPRECIATION EARNINGS INCOME CAPITAL GAIN (LOSSES)* (DEPRECIATION)** (DEFICIT) ------------- ------------- ------------- ---------------- ----------- Advisers Fund................................ $ 1,654 $ -- $(357,815) $ 88,493 $(267,652) Capital Appreciation Fund.................... -- -- (791,427) 710,179 (81,248) Disciplined Equity Fund...................... 154 -- (129,537) 24,556 (104,827) Dividend and Growth Fund..................... -- -- (51,709) 85,235 33,526 Equity Income Fund........................... 69 -- -- 646 715 Focus Fund................................... -- -- (30,183) 9,933 (20,250) Global Communications Fund................... -- -- (7,672) 2,377 (5,295) Global Financial Services Fund............... 130 -- (2,480) 1,715 (635) Global Health Fund........................... -- 1,115 -- 7,502 8,617 Global Leaders Fund.......................... -- -- (161,940) 72,948 (88,992) Global Technology Fund....................... -- -- (65,114) 10,058 (55,056) Growth Fund.................................. -- -- (87,248) 69,240 (18,008) Growth Opportunities Fund.................... -- -- (151,238) 109,029 (42,209) High Yield Fund.............................. 6 -- (86,634) 8,031 (78,597) Income Fund.................................. 30 -- (20) 680 690 Inflation Plus Fund.......................... 1,736 -- -- 3,443 5,179
177 THE HARTFORD MUTUAL FUNDS, INC. AND THE HARTFORD MUTUAL FUND II, INC. NOTES TO FINANCIAL STATEMENTS -- (CONTINUED) OCTOBER 31, 2003 (000'S OMITTED) --------------------------------------------------------------------------------
TOTAL UNDISTRIBUTED UNDISTRIBUTED ACCUMULATED UNREALIZED ACCUMULATED ORDINARY LONG-TERM CAPITAL GAINS APPRECIATION EARNINGS INCOME CAPITAL GAIN (LOSSES)* (DEPRECIATION)** (DEFICIT) ------------- ------------- ------------- ---------------- ----------- International Capital Appreciation Fund...... 37 65 -- 1,582 1,684 International Opportunities Fund............. 63 -- (57,670) 11,817 (45,790) International Small Company Fund............. 2,967 86 -- 4,204 7,257 MidCap Fund.................................. -- -- (122,776) 396,012 273,236 MidCap Value Fund............................ -- -- (474) 30,362 29,888 Money Market Fund............................ -- -- -- -- -- Short Duration Fund.......................... 28 -- (221) 312 119 Small Company Fund........................... -- -- (108,923) 41,844 (67,079) SmallCap Growth Fund......................... -- -- (84,008) 23,263 (60,745) Stock Fund................................... -- -- (570,537) (39,875) (610,412) Tax-Free California Fund..................... 30 -- (80) (68) (118) Tax-Free Minnesota Fund...................... 21 348 -- 1,889 2,258 Tax-Free National Fund....................... 281 558 -- 3,352 4,191 Tax-Free New York Fund....................... 116 -- -- 74 190 Total Return Bond Fund....................... 17,671 1,196 -- 2,821 21,688 U.S. Government Securities Fund.............. 1 -- (10,866) 1,127 (9,738) Value Fund................................... 349 -- (7,069) 2,877 (3,843) Value Opportunities Fund..................... -- -- (9,273) 6,050 (3,223)
* Certain Funds had capital loss carryforwards that are identified in footnote 8. ** The differences between book-basis and tax-basis unrealized appreciation (depreciation) is attributable primarily to the tax deferral of wash sale losses and differing treatments for the interest accrual on defaulted securities. K) FUND SHARE VALUATION AND DIVIDEND DISTRIBUTIONS TO SHAREHOLDERS -- Orders for a Fund's shares are executed in accordance with the investment instructions of the shareholders. Dividend income is accrued as of the ex-dividend date, except that certain dividends for foreign securities where the ex-dividend date may have passed are recorded as soon as the Fund is informed of the dividend in the exercise of reasonable diligence. 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 Exchange 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 Capital Appreciation Fund, the Disciplined Equity Fund, the Focus Fund, Global Communications Fund, the Global Financial Services Fund, the Global Health Fund, the Global Leaders Fund, the Global Technology Fund, the Growth Fund, the Growth Opportunities Fund, the International Capital Appreciation Fund, the International Opportunities Fund, the International Small Company Fund, the MidCap Fund, the MidCap Value Fund, the Small Company Fund, the SmallCap Growth Fund, the Stock Fund, the Value Fund, and the Value Opportunities Fund will be declared and paid annually; dividends from net investment income of the Advisers Fund, the Dividend and Growth Fund and the Equity Income Fund will be declared and paid quarterly; dividends from the net investment income of the High Yield Fund, the Income Fund, the Inflation Plus Fund, the Short Duration Fund, the Tax-Free California Fund, the Tax- Free Minnesota Fund, the Tax-Free National Fund, the Tax-Free New York Fund, the Total Return Bond Fund and the U. S. Government Securities 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. Net investment income and net realized capital gains available for distribution 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 7). L) USE OF ESTIMATES -- The preparation of financial statements in conformity with accounting principles generally accepted in the United States 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. M) 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 178 -------------------------------------------------------------------------------- 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. N) CREDIT DEFAULT SWAPS -- The Funds may enter into credit default swaps. The credit default swap market allows the Funds to manage credit risk through buying and selling credit protection on specific companies or a basket of companies. A buyer agrees to pay a counterparty to assume the credit risk of an issuer upon the occurrence of certain events. The seller of the protection receives a premium and agrees to assume the credit risk of an issuer upon the occurrence of certain events. The Funds will limit credit default swap transactions to five percent (5%) of the Fund's net assets at the time of purchase. As of October 31, 2003, no credit default swaps were held by the Funds. O) SECURITIES PURCHASED ON A WHEN-ISSUED BASIS -- Delivery and payment for securities that have been purchased by the fund on a forward commitment or when-issued basis can take place a month or more after the transaction date. During this period, such securities are subject to market fluctuations and the fund maintains in a segregated account with its custodian, assets with a market value equal to the amount of its purchase commitments. As of October 31, 2003, the Total Return Bond Fund has entered into outstanding when-issued or forward commitments of $22,454. 3. EXPENSES: A) INVESTMENT MANAGEMENT AND ADVISORY AGREEMENTS -- HIFSCO, a wholly-owned indirect subsidiary of The Hartford Financial Services Group, Inc. (The Hartford), serves as investment manager to each Fund pursuant to an Investment Advisory Agreements dated March 3, 1997 for Hartford Mutual Funds, Inc. and dated February 19, 2002 for Hartford Mutual Funds II, Inc. 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 Funds. HIFSCO has contracted with Wellington for the provision of day to day investment management services to the Advisers Fund, the Capital Appreciation Fund, the Disciplined Equity Fund, the Dividend and Growth Fund, the Equity Income Fund, the Focus Fund, the Global Communications Fund, the Global Financial Services Fund, the Global Health Fund, the Global Leaders Fund, the Global Technology Fund, the Growth Fund, the Growth Opportunities Fund, the International Capital Appreciation Fund, the International Opportunities Fund, the International Small Company Fund, the MidCap Fund, the MidCap Value Fund, the Small Company Fund, the SmallCap Growth Fund, the Stock Fund, the Value Fund and the Value Opportunities Fund in accordance with each Fund's investment objective and policies. In addition, HIFSCO has contracted with Hartford Investment, a wholly owned subsidiary of The Hartford, for the provision of day to day investment management services for the High Yield Fund, the Income Fund, the Inflation Plus Fund, the Money Market Fund, the Short Duration Fund, the Tax-Free California Fund, the Tax-Free Minnesota Fund, the Tax-Free National Fund, the Tax-Free New York Fund, the Total Return Bond Fund and the U.S. Government Securities 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 investment advisory services rendered:
MONEY MARKET FUND AVERAGE DAILY NET ASSETS ANNUAL FEE ------------------------ ---------- On first $500 million.......................... .50% On next $500 million........................... .45% Over $1 billion................................ .40%
TAX-FREE NATIONAL FUND AND U.S. GOVERNMENT SECURITIES FUND AVERAGE DAILY NET ASSETS ANNUAL FEE ------------------------ ---------- On first $50 million........................... .80% Over $50 million............................... .70%
TOTAL RETURN BOND FUND AVERAGE DAILY NET ASSETS ANNUAL FEE ------------------------ ---------- On first $500 million.......................... .65% On next $500 million........................... .55% Over $1 billion................................ .50%
GLOBAL LEADERS FUND, INTERNATIONAL OPPORTUNITIES FUND, MIDCAP FUND, MIDCAP VALUE FUND AND SMALL COMPANY FUND AVERAGE DAILY NET ASSETS ANNUAL FEE ------------------------ ---------- On first $500 million.......................... .85% On next $500 million........................... .75% Over $1 billion................................ .70%
TAX-FREE MINNESOTA FUND AVERAGE DAILY NET ASSETS ANNUAL FEE ------------------------ ---------- On first $50 million........................... .72% Over $50 million............................... .70%
GROWTH FUND, GROWTH OPPORTUNITIES FUND, SMALLCAP GROWTH FUND AND VALUE OPPORTUNITIES FUND AVERAGE DAILY NET ASSETS ANNUAL FEE ------------------------ ---------- On first $100 million.......................... 1.00% On next $150 million........................... .80% Over $250 million.............................. .70%
ADVISERS FUND, DIVIDEND AND GROWTH FUND AND HIGH YIELD FUND AVERAGE DAILY NET ASSETS ANNUAL FEE ------------------------ ---------- On first $500 million.......................... .75% On next $500 million........................... .65% Over $1 billion................................ .60%
179 THE HARTFORD MUTUAL FUNDS, INC. AND THE HARTFORD MUTUAL FUND II, INC. NOTES TO FINANCIAL STATEMENTS -- (CONTINUED) OCTOBER 31, 2003 (000'S OMITTED) --------------------------------------------------------------------------------
INTERNATIONAL CAPITAL APPRECIATION FUND AND INTERNATIONAL SMALL COMPANY FUND AVERAGE DAILY NET ASSETS ANNUAL FEE ------------------------ ---------- On first $500 million.......................... 1.00% On next $500 million........................... .90% Over $1 billion................................ .85%
CAPITAL APPRECIATION FUND, DISCIPLINED EQUITY FUND, EQUITY INCOME FUND, STOCK FUND AND VALUE FUND AVERAGE DAILY NET ASSETS ANNUAL FEE ------------------------ ---------- On first $500 million.......................... .80% On next $500 million........................... 70% Over $1 billion................................ .65%
FOCUS FUND, GLOBAL COMMUNICATIONS FUND, GLOBAL FINANCIAL SERVICES FUND, GLOBAL HEALTH FUND AND GLOBAL TECHNOLOGY FUND AVERAGE DAILY NET ASSETS ANNUAL FEE ------------------------ ---------- On first $500 million.......................... 1.00% On next $500 million........................... .95% Over $1 billion................................ .90%
INCOME FUND AND INFLATION PLUS FUND AVERAGE DAILY NET ASSETS ANNUAL FEE ------------------------ ---------- On first $500 million.......................... .60% Over $500 million.............................. .55%
SHORT DURATION FUND, TAX-FREE CALIFORNIA FUND AND TAX-FREE NEW YORK FUND AVERAGE DAILY NET ASSETS ANNUAL FEE ------------------------ ---------- On first $500 million.......................... .55% Over $500 million.............................. .50%
B) DISTRIBUTION AND SERVICE PLAN FOR CLASS A, B, C, H, L, M AND N SHARES -- HIFSCO, is the principal underwriter and distributor of the Funds. HIFSCO is engaged in distribution activities, which include marketing, distribution and clearing of shares through broker-dealers, financing distribution costs and maintaining financial books and records. For the year ended, October 31, 2003, the following revenues were received by HIFSCO:
FRONT-END LOAD CONTINGENT SALES CHARGE DEFERRED SALES CHARGE -------------- --------------------- HIFSCO................... $58,985 $10,119
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 activities intended to result in the sale and distribution of Classes A, B, C, H, L, M and N shares and for providing services for shareholders. 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. Some or the entire 12b-1 fee for Class B shares may be remitted 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 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. Under the Class C Plan, the Fund pays the Distributor 1.00% of the average daily net 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. For Class C shares, some or the entire fee may be remitted to broker-dealers for distribution and/or shareholder account services. Class L has a distribution fee of 0.25% for each Fund, except for SmallCap Growth Fund which has a 0.45% fee. Classes H, M and N have a distribution fee of 1.00% of average daily net assets on an annual basis, to be used to compensate those who sell shares of the fund and pay certain other expenses of selling fund shares. For the fiscal period ended October 31, 2003, total sales commissions paid to affiliated brokers/dealers of The Hartford for distributing the Funds' shares were $2,955. These commissions are in turn paid to sales representatives of the broker/dealers. 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 or to specific classes within a Fund. The Hartford has voluntarily agreed to limit the total operating expenses of the Class A, B, C, H, L, M, N and Y shares of some of the Funds, exclusive of taxes, interest, brokerage commissions, certain distribution expenses and extraordinary expenses as follows:
FUND CLASS A CLASS B CLASS C CLASS H CLASS L CLASS M CLASS N CLASS Y ---- ------- ------- ------- ------- ------- ------- ------- ------- Disciplined Equity Fund....................... 1.45% 2.15% 2.15% NA NA NA NA 1.00% Focus Fund.................................... 1.65% 2.35% 2.35% NA NA NA NA 1.20% Global Communications Fund.................... 1.65% 2.35% 2.35% NA NA NA NA 1.20% Global Financial Services Fund................ 1.65% 2.35% 2.35% NA NA NA NA 1.20% Global Health Fund............................ 1.65% 2.35% 2.35% NA NA NA NA 1.20%
180 --------------------------------------------------------------------------------
FUND CLASS A CLASS B CLASS C CLASS H CLASS L CLASS M CLASS N CLASS Y ---- ------- ------- ------- ------- ------- ------- ------- ------- Global Leaders Fund........................... 1.65% 2.35% 2.35% NA NA NA NA 1.20% Global Technology Fund........................ 1.65% 2.35% 2.35% NA NA NA NA 1.20% Growth Fund................................... 1.45% 2.15% 2.15% 2.15% 1.45% 2.15% 2.15% 1.00% Growth Opportunities Fund..................... 1.45% 2.15% 2.15% 2.15% 1.45% 2.15% 2.15% 1.00% High Yield Fund............................... 1.40% 2.10% 2.10% NA NA NA NA 0.95% Income Fund................................... 1.00% 1.70% 1.70% NA NA NA NA NA Inflation Plus Fund........................... 1.00% 1.70% 1.70% NA NA NA NA NA International Capital Appreciation Fund....... 1.65% 2.35% 2.35% NA NA NA NA 1.20% International Opportunities Fund.............. 1.65% 2.35% 2.35% NA NA NA NA 1.20% International Small Company Fund.............. 1.65% 2.35% 2.35% NA NA NA NA 1.20% MidCap Value Fund............................. 1.45% 2.15% 2.15% NA NA NA NA 1.00% Money Market Fund............................. 1.00% 1.70% 1.70% NA NA NA NA 0.55% Short Duration Fund........................... 0.95% 1.65% 1.65% NA NA NA NA NA SmallCap Growth Fund.......................... 1.45% 2.15% 2.15% 2.15% 1.45% 2.15% 2.15% 1.10% Small Company Fund............................ 1.45% 2.15% 2.15% NA NA NA NA 1.00% Tax-Free California Fund...................... 0.95% 1.65% 1.65% NA NA NA NA NA Tax-Free Minnesota Fund....................... 1.15% 1.85% 1.85% 1.85% 1.15% 1.85% 1.85% 0.80% Tax-Free National Fund........................ 1.15% 1.85% 1.85% 1.85% 1.15% 1.85% 1.85% 0.85% Tax-Free New York Fund........................ 0.95% 1.65% 1.65% NA NA NA NA NA Total Return Bond Fund........................ 1.25% 1.95% 1.95% NA NA NA NA 0.80% U.S. Government Securities Fund............... 1.20% 1.90% 1.90% 1.90% 1.20% 1.90% 1.90% 0.80% Value Fund.................................... 1.45% 2.15% 2.15% NA NA NA NA 1.00% Value Opportunities Fund...................... 1.45% 2.15% 2.15% 2.15% 1.45% 2.15% 2.15% 1.25%
The Hartford voluntarily agreed to waive management fees for the Equity Income until August 28, 2004. The Hartford may terminate such voluntary and temporary fee waivers and expense limitation arrangements at any time. Amounts incurred which exceed the above limits, are deducted from expenses and are reported as expense reimbursements or waivers on the accompanying Statements of Operations. As of March 1, 2003, the fee waivers and expense limitation arrangements ended for the Capital Appreciation Fund, the MidCap Fund, the Stock Fund, the Dividend and Growth Fund and the Advisers Fund. 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, Hartford Investment and/or The Hartford or its subsidiaries. No officer of the Funds receives any compensation directly from the Funds. Hartford Administrative Services Company (HASCO), a wholly owned subsidiary of The Hartford, provides transfer agent services to the Funds. 4. AFFILIATE HOLDINGS: As of October 31, 2003, affiliates of The Hartford had ownership of shares in the Funds as follows:
FUND CLASS A CLASS B CLASS C CLASS Y ---- ------- ------- ------- ------- Equity Income Fund........ 270 10 10 10 Global Communications Fund.................... 700 100 100 100 Global Financial Services Fund.................... 703 100 100 101 Growth Fund............... @@ @@ @@ @@ Growth Opportunities Fund.................... @@ @@ @@ @@ High Yield Fund........... -- -- -- @@ Income Fund............... 842 104 104 NA International Capital Appreciation Fund....... 210 30 30 30 International Small Company Fund............ 210 30 30 30 MidCap Value Fund......... -- -- -- 2 Short Duration Fund....... 824 -- -- NA
4. AFFILIATE HOLDINGS: (CONTINUED)
FUND CLASS A CLASS B CLASS C CLASS Y ---- ------- ------- ------- ------- SmallCap Growth Fund...... @@ @@ @@ @@ Tax-Free California Fund.................... 830 103 103 NA Tax-Free Minnesota Fund... @@ @@ @@ @@ Tax-Free National Fund.... @@ @@ @@ @@ Tax-Free New York Fund.... 828 103 103 NA U.S. Government Securities Fund.................... @@ @@ @@ @@ Value Fund................ -- -- -- 3 Value Opportunities Fund.................... @@ @@ @@ @@
@@ Due to the presentation of the financial statements in thousands, the number of shares held round to zero. NA Not applicable 5. INVESTMENT TRANSACTIONS: For the period ended October 31, 2003, the cost of purchases and proceeds from sales of securities for Money Market Fund were $5,554,361 and $5,687,879, respectively. The cost of purchases and proceeds from sales of securities (excluding short-term investments) for the other portfolios were as follows:
COST OF PROCEEDS FUND PURCHASES FROM SALES ---- ---------- ---------- Advisers Fund....................... $1,031,447 $1,091,353 Capital Appreciation Fund........... 3,899,393 4,113,643 Disciplined Equity Fund............. 232,851 263,896 Dividend and Growth Fund............ 783,270 416,557 Equity Income Fund.................. 31,382 260 Focus Fund.......................... 151,248 164,683 Global Communications Fund.......... 8,509 6,880 Global Financial Services Fund...... 16,216 15,552 Global Health Fund.................. 75,130 81,267 Global Leaders Fund................. 1,639,728 1,629,520 Global Technology Fund.............. 73,868 72,169 Growth Fund......................... 474,112 458,933 Growth Opportunities Fund........... 853,202 891,153 High Yield Fund..................... 273,928 141,713 Income Fund......................... 46,116 21,777
181 THE HARTFORD MUTUAL FUNDS, INC. AND THE HARTFORD MUTUAL FUND II, INC. NOTES TO FINANCIAL STATEMENTS -- (CONTINUED) OCTOBER 31, 2003 (000'S OMITTED) --------------------------------------------------------------------------------
COST OF PROCEEDS FUND PURCHASES FROM SALES ---- ---------- ---------- Inflation Plus Fund................. $ 412,002 $ 47,828 International Capital Appreciation Fund.............................. 29,575 24,403 International Opportunities Fund.... 133,009 142,313 International Small Company Fund.... 50,373 26,768 MidCap Fund......................... 1,754,903 1,162,834 MidCap Value Fund................... 126,647 98,507 Short Duration Fund................. 125,406 53,811 Small Company Fund.................. 350,691 361,620 SmallCap Growth Fund................ 173,060 174,738
COST OF PROCEEDS FUND PURCHASES FROM SALES ---- ---------- ---------- Stock Fund.......................... $ 585,335 $ 706,823 Tax-Free California Fund............ 20,942 7,587 Tax-Free Minnesota Fund............. 6,562 7,759 Tax-Free National Fund.............. 37,928 26,127 Tax-Free New York Fund.............. 16,048 5,484 Total Return Bond Fund.............. 1,421,363 1,345,959 U.S. Government Securities Fund..... 404,621 444,148 Value Fund.......................... 23,285 16,810 Value Opportunities Fund............ 22,316 22,415
6. CAPITAL SHARE TRANSACTIONS: The following information is for the periods ended October 31, 2003 and 2002:
SHARES ISSUED FOR SHARES ISSUED SHARES SOLD REINVESTED DIVIDENDS SHARES REDEEMED FROM MERGER ---------------------- -------------------- ---------------------- ------------------ 2003 2002 2003 2002 2003 2002 2003 2002 -------- ---------- -------- -------- --------- --------- ------ -------- ADVISERS FUND: Class A Shares........... 20,836 30,212 1,405 1,488 (16,930) (19,331) -- 10,210 Amount............ $276,476 $ 425,382 $18,517 $20,243 $(223,566) $(261,961) $ -- $149,372 Class B Shares........... 4,637 7,800 299 413 (7,994) (10,661) -- 4,011 Amount............ $ 60,761 $ 109,498 $ 3,881 $ 5,576 $(103,704) $(140,899) $ -- $ 58,085 Class C Shares........... 4,392 8,933 237 328 (8,264) (9,892) -- 721 Amount............ $ 58,068 $ 126,642 $ 3,113 $ 4,445 $(108,634) $(133,048) $ -- $ 10,535 Class Y Shares........... 301 313 8 25 (15) (3,901) -- -- Amount............ $ 4,038 $ 4,432 $ 119 $ 377 $ (203) $ (59,007) $ -- $ -- CAPITAL APPRECIATION FUND: Class A Shares........... 20,811 37,272 -- -- (14,908) (19,951) -- -- Amount............ $474,094 $ 911,291 $ -- $ -- $(324,553) $(446,936) $ -- $ -- Class B Shares........... 6,504 15,443 -- -- (6,361) (7,947) -- -- Amount............ $138,655 $ 361,905 $ -- $ -- $(130,934) $(165,543) $ -- $ -- Class C Shares........... 8,629 17,915 -- -- (7,407) (8,820) -- -- Amount............ $185,768 $ 419,454 $ -- $ -- $(152,981) $(183,671) $ -- $ -- Class Y Shares........... 936 915 -- -- (382) (2,801) -- -- Amount............ $ 21,401 $ 22,058 $ -- $ -- $ (8,207) $ (76,693) $ -- $ -- DISCIPLINED EQUITY FUND: Class A Shares........... 4,602 8,981 -- -- (7,751) (6,736) -- 1,945 Amount............ $ 40,782 $ 91,439 $ -- $ -- $ (67,219) $ (64,226) $ -- $ 20,626 Class B Shares........... 770 1,220 -- -- (1,148) (1,387) -- 1,206 Amount............ $ 6,568 $ 11,971 $ -- $ -- $ (9,611) $ (12,606) $ -- $ 12,446 Class C Shares........... 841 1,280 -- -- (1,474) (2,046) -- 179 Amount............ $ 7,184 $ 12,720 $ -- $ -- $ (12,330) $ (18,897) $ -- $ 1,856 Class Y Shares........... 21 41 -- -- (38) (6) -- -- Amount............ $ 187 $ 425 $ -- $ -- $ (353) $ (61) $ -- $ -- DIVIDEND AND GROWTH FUND: Class A Shares........... 30,101 32,386 609 868 (8,875) (7,280) -- -- Amount............ $435,362 $ 503,459 $ 8,814 $13,605 $(126,929) $(107,015) $ -- $ -- Class B Shares........... 4,757 5,997 30 159 (2,247) (2,118) -- -- Amount............ $ 67,912 $ 92,473 $ 417 $ 2,503 $ (31,454) $ (30,687) $ -- $ -- Class C Shares........... 5,187 7,245 38 129 (2,830) (2,749) -- -- Amount............ $ 73,923 $ 111,009 $ 546 $ 2,036 $ (39,913) $ (39,850) $ -- $ -- Class Y Shares........... 3,551 930 29 40 (2,045) (1,567) -- -- Amount............ $ 53,476 $ 14,303 $ 434 $ 629 $ (31,994) $ (25,703) $ -- $ -- EQUITY INCOME FUND: Class A Shares........... 2,610 -- -- -- (41) -- -- -- Amount............ $ 26,551 $ -- $ -- $ -- $ (424) $ -- $ -- $ -- Class B Shares........... 235 -- -- -- (1) -- -- -- Amount............ $ 2,391 $ -- $ -- $ -- $ (15) $ -- $ -- $ -- Class C Shares........... 737 -- -- -- @@ -- -- -- Amount............ $ 7,502 $ -- $ -- $ -- @@ $ -- $ -- $ -- Class Y Shares........... 10 -- -- -- -- -- -- -- Amount............ $ 100 $ -- $ -- $ -- $ -- $ -- $ -- $ -- FOCUS FUND: Class A Shares........... 985 3,997 -- -- (2,225) (2,518) -- -- Amount............ $ 7,885 $ 37,194 $ -- $ -- $ (17,497) $ (20,394) $ -- $ -- NET INCREASE (DECREASE) OF SHARES --------------------- 2003 2002 --------- -------- ADVISERS FUND: Class A Shares........... 5,311 22,579 Amount............ $ 71,427 $333,036 Class B Shares........... (3,058) 1,563 Amount............ $ (39,062) $ 32,260 Class C Shares........... (3,635) 90 Amount............ $ (47,453) $ 8,574 Class Y Shares........... 294 (3,563) Amount............ $ 3,954 $(54,198) CAPITAL APPRECIATION FUND Class A Shares........... 5,903 17,321 Amount............ $ 149,541 $464,355 Class B Shares........... 143 7,496 Amount............ $ 7,721 $196,362 Class C Shares........... 1,222 9,095 Amount............ $ 32,787 $235,783 Class Y Shares........... 554 (1,886) Amount............ $ 13,194 $(54,635) DISCIPLINED EQUITY FUND: Class A Shares........... (3,149) 4,190 Amount............ $ (26,437) $ 47,839 Class B Shares........... (378) 1,039 Amount............ $ (3,043) $ 11,811 Class C Shares........... (633) (587) Amount............ $ (5,146) $ (4,321) Class Y Shares........... (17) 35 Amount............ $ (166) $ 364 DIVIDEND AND GROWTH FUND: Class A Shares........... 21,835 25,974 Amount............ $ 317,247 $410,049 Class B Shares........... 2,540 4,038 Amount............ $ 36,875 $ 64,289 Class C Shares........... 2,395 4,625 Amount............ $ 34,556 $ 73,195 Class Y Shares........... 1,535 (597) Amount............ $ 21,916 $(10,771) EQUITY INCOME FUND: Class A Shares........... 2,569 -- Amount............ $ 26,127 $ -- Class B Shares........... 234 -- Amount............ $ 2,376 $ -- Class C Shares........... 737 -- Amount............ $ 7,502 $ -- Class Y Shares........... 10 -- Amount............ $ 100 $ -- FOCUS FUND: Class A Shares........... (1,240) 1,479 Amount............ $ (9,612) $ 16,800
@@ Due to the presentation of the financial statements in thousands, the number or shares and/or dollars round to zero. 182 --------------------------------------------------------------------------------
SHARES ISSUED FOR SHARES ISSUED SHARES SOLD REINVESTED DIVIDENDS SHARES REDEEMED FROM MERGER ---------------------- -------------------- ---------------------- ------------------ 2003 2002 2003 2002 2003 2002 2003 2002 -------- ---------- -------- -------- --------- --------- ------ -------- Class B Shares........... 257 1,013 -- -- (463) (518) -- -- Amount............ $ 2,008 $ 9,398 $ -- $ -- $ (3,564) $ (4,001) $ -- $ -- Class C Shares........... 407 1,553 -- -- (883) (732) -- -- Amount............ $ 3,218 $ 14,420 $ -- $ -- $ (6,741) $ (5,785) $ -- $ -- Class Y Shares........... 20 69 -- -- (9) (1) -- -- Amount............ $ 158 $ 635 $ -- $ -- $ (80) $ (10) $ -- $ -- GLOBAL COMMUNICATIONS FUND: Class A Shares........... 422 306 -- -- (132) (107) -- -- Amount............ $ 1,657 $ 1,162 $ -- $ -- $ (494) $ (376) $ -- $ -- Class B Shares........... 133 123 -- -- (58) (41) -- -- Amount............ $ 526 $ 440 $ -- $ -- $ (222) $ (128) $ -- $ -- Class C Shares........... 95 98 -- -- (41) (60) -- -- Amount............ $ 368 $ 408 $ -- $ -- $ (146) $ (218) $ -- $ -- Class Y Shares........... 37 47 -- -- (31) -- -- -- Amount............ $ 147 $ 164 $ -- $ -- $ (128) $ -- $ -- $ -- GLOBAL FINANCIAL SERVICES FUND: Class A Shares........... 231 304 6 -- (145) (154) -- -- Amount............ $ 2,013 $ 2,884 $ 44 $ -- $ (1,230) $ (1,390) $ -- $ -- Class B Shares........... 73 164 -- -- (36) (37) -- -- Amount............ $ 613 $ 1,540 $ -- $ -- $ (290) $ (315) $ -- $ -- Class C Shares........... 79 164 -- -- (66) (63) -- -- Amount............ $ 673 $ 1,530 $ -- $ -- $ (522) $ (529) $ -- $ -- Class Y Shares........... 4 78 2 -- (22) (1) -- -- Amount............ $ 36 $ 762 $ 13 $ -- $ (191) $ (8) $ -- $ -- GLOBAL HEALTH FUND: Class A Shares........... 3,203 6,349 228 154 (3,174) (4,932) -- -- Amount............ $ 40,388 $ 83,934 $ 2,589 $ 2,030 $ (38,579) $ (61,196) $ -- $ -- Class B Shares........... 700 1,729 102 64 (681) (915) -- -- Amount............ $ 8,608 $ 22,654 $ 1,130 $ 840 $ (7,941) $ (10,740) $ -- $ -- Class C Shares........... 725 1,583 98 69 (823) (1,139) -- -- Amount............ $ 9,058 $ 20,910 $ 1,089 $ 897 $ (9,659) $ (13,533) $ -- $ -- Class Y Shares........... 34 94 2 7 (34) (345) -- -- Amount............ $ 412 $ 1,245 $ 23 $ 92 $ (413) $ (4,828) $ -- $ -- GLOBAL LEADERS FUND: Class A Shares........... 24,925 38,303 -- -- (23,238) (32,026) -- 6,063 Amount............ $292,646 $ 476,139 $ -- $ -- $(271,217) $(410,391) $ -- $ 81,253 Class B Shares........... 542 892 -- -- (1,130) (1,468) -- 2,012 Amount............ $ 6,308 $ 12,236 $ -- $ -- $ (12,914) $ (17,733) $ -- $ 26,325 Class C Shares........... 844 1,533 -- -- (1,932) (3,154) -- 262 Amount............ $ 9,733 $ 19,049 $ -- $ -- $ (22,148) $ (38,398) $ -- $ 3,427 Class Y Shares........... 829 575 -- -- (39) (644) -- -- Amount............ $ 10,182 $ 7,234 $ -- $ -- $ (507) $ (9,185) $ -- $ -- GLOBAL TECHNOLOGY FUND: Class A Shares........... 3,806 6,012 -- -- (3,043) (6,044) -- -- Amount............ $ 14,169 $ 26,713 $ -- $ -- $ (11,163) $ (25,765) $ -- $ -- Class B Shares........... 896 772 -- -- (626) (739) -- -- Amount............ $ 3,306 $ 3,149 $ -- $ -- $ (2,176) $ (2,751) $ -- $ -- Class C Shares........... 1,253 742 -- -- (906) (1,399) -- -- Amount............ $ 4,613 $ 3,146 $ -- $ -- $ (3,103) $ (5,115) $ -- $ -- Class Y Shares........... 242 516 -- -- (226) (1,485) -- -- Amount............ $ 921 $ 2,264 $ -- $ -- $ (834) $ (8,253) $ -- $ -- GROWTH FUND: Class A Shares........... 4,711 636 -- -- (462) (134) -- -- Amount............ $ 65,217 $ 8,247 $ -- $ -- $ (5,930) $ (1,639) $ -- $ -- Class B Shares........... 750 171 -- -- (64) (14) -- -- Amount............ $ 9,255 $ 1,973 $ -- $ -- $ (743) $ (147) $ -- $ -- Class C Shares........... 807 181 -- -- (75) (44) -- -- Amount............ $ 9,924 $ 2,077 $ -- $ -- $ (856) $ (468) $ -- $ -- Class H Shares........... 130 239 -- 1 (568) (735) -- -- Amount............ $ 1,503 $ 3,107 $ -- $ 13 $ (6,564) $ (8,866) $ -- $ -- Class L Shares........... 993 1,044 -- 8 (3,309) (5,098) -- -- Amount............ $ 12,856 $ 14,904 $ -- $ 116 $ (42,188) $ (68,367) $ -- $ -- Class M Shares........... 163 285 -- @@ (438) (460) -- -- Amount............ $ 1,881 $ 3,657 $ -- $ 10 $ (4,962) $ (5,592) $ -- $ -- NET INCREASE (DECREASE) OF SHARES --------------------- 2003 2002 --------- -------- Class B Shares........... (206) 495 Amount............ $ (1,556) $ 5,397 Class C Shares........... (476) 821 Amount............ $ (3,523) $ 8,635 Class Y Shares........... 11 68 Amount............ $ 78 $ 625 GLOBAL COMMUNICATIONS FUN Class A Shares........... 290 199 Amount............ $ 1,163 $ 786 Class B Shares........... 75 82 Amount............ $ 304 $ 312 Class C Shares........... 54 38 Amount............ $ 222 $ 190 Class Y Shares........... 6 47 Amount............ $ 19 $ 164 GLOBAL FINANCIAL SERVICES Class A Shares........... 92 150 Amount............ $ 827 $ 1,494 Class B Shares........... 37 127 Amount............ $ 323 $ 1,225 Class C Shares........... 13 101 Amount............ $ 151 $ 1,001 Class Y Shares........... (16) 77 Amount............ $ (142) $ 754 GLOBAL HEALTH FUND: Class A Shares........... 257 1,571 Amount............ $ 4,398 $ 24,768 Class B Shares........... 121 878 Amount............ $ 1,797 $ 12,754 Class C Shares........... -- 513 Amount............ $ 488 $ 8,274 Class Y Shares........... 2 (244) Amount............ $ 22 $ (3,491) GLOBAL LEADERS FUND: Class A Shares........... 1,687 12,340 Amount............ $ 21,429 $147,001 Class B Shares........... (588) 1,436 Amount............ $ (6,606) $ 20,828 Class C Shares........... (1,088) (1,359) Amount............ $ (12,415) $(15,922) Class Y Shares........... 790 (69) Amount............ $ 9,675 $ (1,951) GLOBAL TECHNOLOGY FUND: Class A Shares........... 763 (32) Amount............ $ 3,006 $ 948 Class B Shares........... 270 33 Amount............ $ 1,130 $ 398 Class C Shares........... 347 (657) Amount............ $ 1,510 $ (1,969) Class Y Shares........... 16 (969) Amount............ $ 87 $ (5,989) GROWTH FUND: Class A Shares........... 4,249 502 Amount............ $ 59,287 $ 6,608 Class B Shares........... 686 157 Amount............ $ 8,512 $ 1,826 Class C Shares........... 732 137 Amount............ $ 9,068 $ 1,609 Class H Shares........... (438) (495) Amount............ $ (5,061) $ (5,746) Class L Shares........... (2,316) (4,046) Amount............ $ (29,332) $(53,347) Class M Shares........... (275) (175) Amount............ $ (3,081) $ (1,925)
@@ Due to the presentation of the financial statements in thousands, the number or shares and/or dollars round to zero. 183 THE HARTFORD MUTUAL FUNDS, INC. AND THE HARTFORD MUTUAL FUND II, INC. NOTES TO FINANCIAL STATEMENTS -- (CONTINUED) OCTOBER 31, 2003 (000'S OMITTED) --------------------------------------------------------------------------------
SHARES ISSUED FOR SHARES ISSUED SHARES SOLD REINVESTED DIVIDENDS SHARES REDEEMED FROM MERGER ---------------------- -------------------- ---------------------- ------------------ 2003 2002 2003 2002 2003 2002 2003 2002 -------- ---------- -------- -------- --------- --------- ------ -------- Class N Shares........... 32 72 -- @@ (106) (201) -- -- Amount............ $ 378 $ 952 $ -- $ 2 $ (1,255) $ (2,481) $ -- $ -- Class Y Shares........... -- @@ -- -- -- -- -- -- Amount............ $ -- $ 1 $ -- $ -- $ -- $ -- $ -- $ -- GROWTH OPPORTUNITIES FUND: Class A Shares........... 757 289 -- -- (168) (71) -- -- Amount............ $ 14,186 $ 5,314 $ -- $ -- $ (2,947) $ (1,171) $ -- $ -- Class B Shares........... 201 69 -- -- (22) (12) -- -- Amount............ $ 3,353 $ 1,159 $ -- $ -- $ (346) $ (187) $ -- $ -- Class C Shares........... 285 106 -- -- (73) (41) -- -- Amount............ $ 4,860 $ 1,612 $ -- $ -- $ (1,137) $ (596) $ -- $ -- Class H Shares........... 209 316 -- 36 (684) (643) -- -- Amount............ $ 3,188 $ 5,424 $ -- $ 647 $ (10,526) $ (10,604) $ -- $ -- Class L Shares........... 1,072 1,473 -- 311 (3,729) (5,768) -- -- Amount............ $ 18,661 $ 28,880 $ -- $ 6,190 $ (63,752) $(107,309) $ -- $ -- Class M Shares........... 137 214 -- 17 (323) (320) -- -- Amount............ $ 2,091 $ 3,662 $ -- $ 322 $ (4,908) $ (5,191) $ -- $ -- Class N Shares........... 24 42 -- 4 (76) (96) -- -- Amount............ $ 364 $ 744 $ -- $ 73 $ (1,144) $ (1,657) $ -- $ -- Class Y Shares........... -- @@ -- -- -- -- -- -- Amount............ $ -- $ 1 $ -- $ -- $ -- $ -- $ -- $ -- Class Z Shares........... 63 59 -- 48 (289) (3,218) -- -- Amount............ $ 1,121 $ 1,299 $ -- $ 983 $ (5,364) $ (70,413) $ -- $ -- HIGH YIELD FUND: Class A Shares........... 21,777 9,501 1,432 887 (10,570) (6,676) -- 5,090 Amount............ $164,279 $ 74,745 $10,772 $ 6,677 $ (80,037) $ (51,831) $ -- $ 41,430 Class B Shares........... 4,300 2,251 385 270 (2,167) (1,863) -- 3,935 Amount............ $ 32,275 $ 17,344 $ 2,883 $ 2,020 $ (16,295) $ (14,165) $ -- $ 31,948 Class C Shares........... 5,820 4,021 373 283 (2,401) (1,872) -- 337 Amount............ $ 44,021 $ 31,627 $ 2,801 $ 2,141 $ (18,087) $ (14,323) $ -- $ 2,737 Class Y Shares........... -- 54 @@ 9 -- (561) -- -- Amount............ $ -- $ 469 @@ $ 75 $ -- $ (4,796) $ -- $ -- INCOME FUND: Class A Shares........... 924 800 56 -- (276) -- -- -- Amount............ $ 9,639 $ 8,000 $ 583 $ -- $ (2,873) $ -- $ -- $ -- Class B Shares........... 435 100 10 -- (98) -- -- -- Amount............ $ 4,536 $ 1,000 $ 101 $ -- $ (1,022) $ -- $ -- $ -- Class C Shares........... 481 100 11 -- (113) -- -- -- Amount............ $ 5,041 $ 1,000 $ 111 $ -- $ (1,182) $ -- $ -- $ -- INFLATION PLUS FUND: Class A Shares........... 16,391 800 154 -- (3,896) -- -- -- Amount............ $171,999 $ 8,002 $ 1,621 $ -- $ (40,833) $ -- $ -- $ -- Class B Shares........... 7,264 100 50 -- (1,023) -- -- -- Amount............ $ 76,272 $ 1,000 $ 521 $ -- $ (10,706) $ -- $ -- $ -- Class C Shares........... 17,734 100 114 -- (2,876) -- -- -- Amount............ $186,158 $ 1,000 $ 1,191 $ -- $ (30,131) $ -- $ -- $ -- INTERNATIONAL CAPITAL APPRECIATION FUND: Class A Shares........... 2,549 1,535 1 -- (2,042) (1,201) -- -- Amount............ $ 20,230 $ 11,891 $ 5 $ -- $ (15,786) $ (9,277) $ -- $ -- Class B Shares........... 320 104 -- -- (212) (28) -- -- Amount............ $ 2,602 $ 840 $ -- $ -- $ (1,694) $ (219) $ -- $ -- Class C Shares........... 1,095 277 -- -- (974) (199) -- -- Amount............ $ 8,473 $ 2,073 $ -- $ -- $ (7,562) $ (1,468) $ -- $ -- Class Y Shares........... -- -- @@ -- -- -- -- -- Amount............ $ -- $ -- $ 1 $ -- $ -- $ -- $ -- $ -- INTERNATIONAL OPPORTUNITIES FUND: Class A Shares........... 25,564 71,750 -- -- (26,722) (72,603) -- 1,418 Amount............ $206,831 $ 672,351 $ -- $ -- $(217,754) $(685,079) $ -- $ 12,538 Class B Shares........... 396 347 -- -- (596) (643) -- 636 Amount............ $ 3,188 $ 3,098 $ -- $ -- $ (4,723) $ (5,676) $ -- $ 5,906 Class C Shares........... 6,856 6,014 -- -- (6,993) (6,399) -- 77 Amount............ $ 53,002 $ 49,239 $ -- $ -- $ (54,300) $ (53,383) $ -- $ 711 Class Y Shares........... 589 1,255 -- -- (532) (2,501) -- -- Amount............ $ 5,041 $ 12,179 $ -- $ -- $ (4,536) $ (25,586) $ -- $ -- NET INCREASE (DECREASE) OF SHARES --------------------- 2003 2002 --------- -------- Class N Shares........... (74) (130) Amount............ $ (877) $ (1,527) Class Y Shares........... -- @@ Amount............ $ -- $ 1 GROWTH OPPORTUNITIES FUND Class A Shares........... 589 218 Amount............ $ 11,239 $ 4,143 Class B Shares........... 179 57 Amount............ $ 3,007 $ 972 Class C Shares........... 212 65 Amount............ $ 3,723 $ 1,016 Class H Shares........... (475) (291) Amount............ $ (7,338) $ (4,533) Class L Shares........... (2,657) (3,984) Amount............ $ (45,091) $(72,239) Class M Shares........... (186) (89) Amount............ $ (2,817) $ (1,207) Class N Shares........... (52) (50) Amount............ $ (780) $ (840) Class Y Shares........... -- @@ Amount............ $ -- $ 1 Class Z Shares........... (226) (3,111) Amount............ $ (4,243) $(68,131) HIGH YIELD FUND: Class A Shares........... 12,639 8,802 Amount............ $ 95,014 $ 71,021 Class B Shares........... 2,518 4,593 Amount............ $ 18,863 $ 37,147 Class C Shares........... 3,792 2,769 Amount............ $ 28,735 $ 22,182 Class Y Shares........... -- (498) Amount............ $ -- $ (4,252) INCOME FUND: Class A Shares........... 704 800 Amount............ $ 7,349 $ 8,000 Class B Shares........... 847 100 Amount............ $ 3,615 $ 1,000 Class C Shares........... 379 100 Amount............ $ 3,970 $ 1,000 INFLATION PLUS FUND: Class A Shares........... 12,649 800 Amount............ $ 132,787 $ 8,002 Class B Shares........... 6,291 100 Amount............ $ 66,087 $ 1,000 Class C Shares........... 14,972 100 Amount............ $ 157,218 $ 1,000 INTERNATIONAL CAPITAL APP Class A Shares........... 508 334 Amount............ $ 4,449 $ 2,614 Class B Shares........... 108 76 Amount............ $ 908 $ 621 Class C Shares........... 121 78 Amount............ $ 911 $ 605 Class Y Shares........... @@ -- Amount............ $ 1 $ -- INTERNATIONAL OPPORTUNITI Class A Shares........... (1,158) 565 Amount............ $ (10,923) $ (190) Class B Shares........... (200) 340 Amount............ $ (1,535) $ 3,328 Class C Shares........... (137) (308) Amount............ $ (1,298) $ (3,433) Class Y Shares........... 57 (1,246) Amount............ $ 505 $(13,407)
@@ Due to the presentation of the financial statements in thousands, the number or shares and/or dollars round to zero. 184 --------------------------------------------------------------------------------
SHARES ISSUED FOR SHARES ISSUED SHARES SOLD REINVESTED DIVIDENDS SHARES REDEEMED FROM MERGER ---------------------- -------------------- ---------------------- ------------------ 2003 2002 2003 2002 2003 2002 2003 2002 -------- ---------- -------- -------- --------- --------- ------ -------- INTERNATIONAL SMALL COMPANY FUND: Class A Shares........... 1,516 1,081 1 -- (1,113) (777) -- -- Amount............ $ 14,976 $ 10,260 $ 10 $ -- $ (10,846) $ (7,309) $ -- $ -- Class B Shares........... 101 123 -- -- (38) (43) -- -- Amount............ $ 1,105 $ 1,160 $ -- $ -- $ (408) $ (386) $ -- $ -- Class C Shares........... 332 86 -- -- (200) (30) -- -- Amount............ $ 3,285 $ 774 $ -- $ -- $ (1,861) $ (247) $ -- $ -- Class Y Shares........... 1,855 91 1 -- (38) (6) -- -- Amount............ $ 21,094 $ 827 $ 7 $ -- $ (432) $ (61) $ -- $ -- MIDCAP FUND: Class A Shares........... 31,557 16,040 -- -- (8,330) (7,584) -- -- Amount............ $556,422 $ 269,742 $ -- $ -- $(142,582) $(127,935) $ -- $ -- Class B Shares........... 6,247 4,128 -- -- (2,513) (2,799) -- -- Amount............ $104,470 $ 67,559 $ -- $ -- $ (40,772) $ (45,504) $ -- $ -- Class C Shares........... 9,074 4,901 -- -- (3,257) (4,256) -- -- Amount............ $152,841 $ 80,204 $ -- $ -- $ (53,133) $ (69,945) $ -- $ -- Class Y Shares........... 2,757 1,373 -- -- (516) (2,766) -- -- Amount............ $ 48,718 $ 24,730 $ -- $ -- $ (9,080) $ (48,769) $ -- $ -- MIDCAP VALUE FUND: Class A Shares........... 4,780 10,353 -- -- (2,373) (2,173) -- -- Amount............ $ 46,718 $ 102,514 $ -- $ -- $ (21,563) $ (19,494) $ -- $ -- Class B Shares........... 1,287 2,914 -- -- (694) (542) -- -- Amount............ $ 12,186 $ 28,637 $ -- $ -- $ (6,151) $ (4,912) $ -- $ -- Class C Shares........... 1,597 3,687 -- -- (1,054) (837) -- -- Amount............ $ 15,411 $ 35,966 $ -- $ -- $ (9,784) $ (7,287) $ -- $ -- Class Y Shares........... -- -- -- -- (27) -- -- -- Amount............ $ -- $ -- $ -- $ -- $ (279) $ -- $ -- $ -- MONEY MARKET FUND: Class A Shares........... 445,008 1,017,129 873 2,029 (502,544) (997,122) -- 194,078 Amount............ $445,008 $1,017,129 $ 873 $ 2,029 $(502,544) $(997,122) $ -- $194,078 Class B Shares........... 53,900 109,766 4 204 (85,220) (65,167) -- 5,247 Amount............ $ 53,900 $ 109,766 $ 4 $ 204 $ (85,220) $ (65,167) $ -- $ 5,247 Class C Shares........... 78,941 113,576 3 202 (114,883) (102,381) -- 624 Amount............ $ 78,941 $ 113,576 $ 3 $ 202 $(114,883) $(102,381) $ -- $ 624 Class Y Shares........... 1,293 12,352 17 123 (2,963) (42,969) -- -- Amount............ $ 1,293 $ 12,352 $ 17 $ 123 $ (2,963) $ (42,969) $ -- $ -- SHORT DURATION FUND: Class A Shares........... 3,485 800 59 -- (1,114) -- -- -- Amount............ $ 35,368 $ 8,002 $ 595 $ -- $ (11,302) $ -- $ -- $ -- Class B Shares........... 1,336 100 14 -- (443) -- -- -- Amount............ $ 13,547 $ 1,000 $ 142 $ -- $ (4,498) $ -- $ -- $ -- Class C Shares........... 4,226 100 39 -- (1,342) -- -- -- Amount............ $ 42,908 $ 1,000 $ 397 $ -- $ (13,624) $ -- $ -- $ -- SMALL COMPANY FUND: Class A Shares........... 4,197 6,686 -- -- (3,992) (6,688) -- -- Amount............ $ 48,158 $ 83,361 $ -- $ -- $ (43,568) $ (81,570) $ -- $ -- Class B Shares........... 656 1,061 -- -- (719) (1,001) -- -- Amount............ $ 7,407 $ 12,844 $ -- $ -- $ (7,431) $ (11,001) $ -- $ -- Class C Shares........... 1,028 1,185 -- -- (1,291) (1,518) -- -- Amount............ $ 11,105 $ 14,298 $ -- $ -- $ (13,027) $ (16,980) $ -- $ -- Class Y Shares........... 440 440 -- -- (519) (2,094) -- -- Amount............ $ 5,313 $ 5,800 $ -- $ -- $ (5,847) $ (27,145) $ -- $ -- SMALLCAP GROWTH FUND: Class A Shares........... 833 357 -- -- (289) (135) -- -- Amount............ $ 15,670 $ 6,601 $ -- $ -- $ (5,298) $ (2,250) $ -- $ -- Class B Shares........... 233 132 -- -- (42) (10) -- -- Amount............ $ 4,143 $ 2,283 $ -- $ -- $ (697) $ (176) $ -- $ -- Class C Shares........... 193 114 -- -- (51) (14) -- -- Amount............ $ 3,421 $ 1,948 $ -- $ -- $ (935) $ (194) $ -- $ -- Class H Shares........... 82 149 -- 23 (255) (313) -- -- Amount............ $ 1,313 $ 2,732 $ -- $ 416 $ (4,092) $ (5,571) $ -- $ -- Class L Shares........... 382 830 -- 103 (1,019) (1,757) -- -- Amount............ $ 6,709 $ 16,839 $ -- $ 2,032 $ (17,832) $ (34,722) $ -- $ -- NET INCREASE (DECREASE) OF SHARES --------------------- 2003 2002 --------- -------- INTERNATIONAL SMALL COMPA Class A Shares........... 404 304 Amount............ $ 4,140 $ 2,951 Class B Shares........... 63 80 Amount............ $ 697 $ 774 Class C Shares........... 132 56 Amount............ $ 1,424 $ 527 Class Y Shares........... 1,818 85 Amount............ $ 20,669 $ 766 MIDCAP FUND: Class A Shares........... 23,227 8,456 Amount............ $ 413,840 $141,807 Class B Shares........... 3,734 1,329 Amount............ $ 63,698 $ 22,055 Class C Shares........... 5,817 645 Amount............ $ 99,708 $ 10,259 Class Y Shares........... 2,241 (1,393) Amount............ $ 39,638 $(24,039) MIDCAP VALUE FUND: Class A Shares........... 2,407 8,180 Amount............ $ 25,155 $ 83,020 Class B Shares........... 593 2,372 Amount............ $ 6,035 $ 23,725 Class C Shares........... 543 2,850 Amount............ $ 5,627 $ 28,679 Class Y Shares........... (27) -- Amount............ $ (279) $ -- MONEY MARKET FUND: Class A Shares........... (56,663) 216,114 Amount............ $ (56,663) $216,114 Class B Shares........... (31,316) 50,050 Amount............ $ (31,316) $ 50,050 Class C Shares........... (35,939) 12,021 Amount............ $ (35,939) $ 12,021 Class Y Shares........... (1,653) (30,494) Amount............ $ (1,653) $(30,494) SHORT DURATION FUND: Class A Shares........... 2,430 800 Amount............ $ 24,661 $ 8,002 Class B Shares........... 907 100 Amount............ $ 9,191 $ 1,000 Class C Shares........... 2,923 100 Amount............ $ 29,681 $ 1,000 SMALL COMPANY FUND: Class A Shares........... 205 (2) Amount............ $ 4,590 $ 1,791 Class B Shares........... (63) 60 Amount............ $ (24) $ 1,843 Class C Shares........... (263) (333) Amount............ $ (1,922) $ (2,682) Class Y Shares........... (79) (1,654) Amount............ $ (534) $(21,345) SMALLCAP GROWTH FUND: Class A Shares........... 544 222 Amount............ $ 10,372 $ 4,351 Class B Shares........... 191 122 Amount............ $ 3,446 $ 2,107 Class C Shares........... 142 100 Amount............ $ 2,486 $ 1,754 Class H Shares........... (173) (141) Amount............ $ (2,779) $ (2,423) Class L Shares........... (637) (824) Amount............ $ (11,123) $(15,851)
@@ Due to the presentation of the financial statements in thousands, the number or shares and/or dollars round to zero. 185 THE HARTFORD MUTUAL FUNDS, INC. AND THE HARTFORD MUTUAL FUND II, INC. NOTES TO FINANCIAL STATEMENTS -- (CONTINUED) OCTOBER 31, 2003 (000'S OMITTED) --------------------------------------------------------------------------------
SHARES ISSUED FOR SHARES ISSUED SHARES SOLD REINVESTED DIVIDENDS SHARES REDEEMED FROM MERGER ---------------------- -------------------- ---------------------- ------------------ 2003 2002 2003 2002 2003 2002 2003 2002 -------- ---------- -------- -------- --------- --------- ------ -------- Class M Shares........... 84 133 -- 18 (183) (220) -- -- Amount............ $ 1,347 $ 2,366 $ -- $ 328 $ (2,943) $ (3,773) $ -- $ -- Class N Shares........... 29 40 -- 6 (69) (82) -- -- Amount............ $ 464 $ 728 $ -- $ 116 $ (1,052) $ (1,470) $ -- $ -- Class Y Shares........... -- @@ -- -- -- -- -- -- Amount............ $ -- $ 1 $ -- $ -- $ -- $ -- $ -- $ -- STOCK FUND: Class A Shares........... 8,443 18,429 -- -- (12,312) (15,369) -- -- Amount............ $123,104 $ 311,199 $ -- $ -- $(177,679) $(238,440) $ -- $ -- Class B Shares........... 1,969 4,217 -- -- (4,275) (6,336) -- -- Amount............ $ 27,216 $ 68,344 $ -- $ -- $ (58,344) $ (92,861) $ -- $ -- Class C Shares........... 2,360 5,277 -- -- (5,967) (7,933) -- -- Amount............ $ 32,634 $ 85,205 $ -- $ -- $ (82,117) $(117,952) $ -- $ -- Class Y Shares........... 1,029 986 -- -- (888) (135) -- -- Amount............ $ 15,485 $ 15,761 $ -- $ -- $ (11,848) $ (2,507) $ -- $ -- TAX-FREE CALIFORNIA FUND: Class A Shares........... 334 800 36 -- (82) -- -- -- Amount............ $ 3,372 $ 8,000 $ 363 $ -- $ (818) $ -- $ -- $ -- Class B Shares........... 86 100 4 -- (6) -- -- -- Amount............ $ 864 $ 1,000 $ 46 $ -- $ (58) $ -- $ -- $ -- Class C Shares........... 23 100 3 -- (2) -- -- -- Amount............ $ 227 $ 1,000 $ 35 $ -- $ (20) $ -- $ -- $ -- TAX-FREE MINNESOTA FUND: Class A Shares........... 252 208 10 2 (150) (12) -- -- Amount............ $ 2,656 $ 2,183 $ 103 $ 16 $ (1,569) $ (124) $ -- $ -- Class B Shares........... 48 25 1 -- (21) (2) -- -- Amount............ $ 506 $ 258 $ 11 $ 1 $ (220) $ (21) $ -- $ -- Class C Shares........... 21 29 1 -- (12) -- -- -- Amount............ $ 228 $ 303 $ 11 $ 2 $ (127) $ -- $ -- $ -- Class E Shares........... 36 69 93 76 (281) (274) -- -- Amount............ $ 377 $ 717 $ 985 $ 792 $ (2,970) $ (2,834) $ -- $ -- Class H Shares........... -- -- 1 2 (41) (52) -- -- Amount............ $ -- $ -- $ 6 $ 19 $ (433) $ (536) $ -- $ -- Class L Shares........... 38 22 10 9 (88) (52) -- -- Amount............ $ 403 $ 219 $ 111 $ 94 $ (929) $ (537) $ -- $ -- Class M Shares........... 1 3 1 1 (12) (25) -- -- Amount............ $ 6 $ 34 $ 15 $ 12 $ (128) $ (258) $ -- $ -- Class N Shares........... 1 2 1 -- (1) (2) -- -- Amount............ $ 14 $ 26 $ 5 $ 3 $ (10) $ (30) $ -- $ -- Class Y Shares........... -- @@ @@ -- -- -- -- -- Amount............ $ -- $ 1 @@ $ -- $ -- $ -- $ -- $ -- TAX-FREE NATIONAL FUND: Class A Shares........... 2,067 1,189 66 8 (1,275) (116) -- -- Amount............ $ 23,066 $ 13,321 $ 736 $ 93 $ (14,174) $ (1,304) $ -- $ -- Class B Shares........... 411 380 19 2 (166) (46) -- -- Amount............ $ 4,558 $ 4,241 $ 209 $ 24 $ (1,827) $ (515) $ -- $ -- Class C Shares........... 661 312 18 1 (269) (35) -- -- Amount............ $ 7,349 $ 3,487 $ 196 $ 19 $ (2,975) $ (396) $ -- $ -- Class E Shares........... 28 64 155 102 (604) (465) -- -- Amount............ $ 307 $ 708 $ 1,718 $ 1,125 $ (6,762) $ (5,124) $ -- $ -- Class H Shares........... @@ 16 10 7 (110) (185) -- -- Amount............ $ 7 $ 182 $ 110 $ 79 $ (1,211) $ (2,029) $ -- $ -- Class L Shares........... 90 57 32 21 (100) (143) -- -- Amount............ $ 993 $ 625 $ 351 $ 227 $ (1,110) $ (1,565) $ -- $ -- Class M Shares........... 1 19 6 4 (33) (40) -- -- Amount............ $ 9 $ 209 $ 72 $ 48 $ (368) $ (445) $ -- $ -- Class N Shares........... 3 18 2 2 (4) (14) -- -- Amount............ $ 34 $ 199 $ 30 $ 18 $ (46) $ (161) $ -- $ -- Class Y Shares........... -- @@ @@ -- -- -- -- -- Amount............ $ -- $ 1 @@ $ -- $ -- $ -- $ -- $ -- TAX-FREE NEW YORK FUND: Class A Shares........... 21 800 28 -- (2) -- -- -- Amount............ $ 218 $ 8,000 $ 284 $ -- $ (22) $ -- $ -- $ -- NET INCREASE (DECREASE) OF SHARES --------------------- 2003 2002 --------- -------- Class M Shares........... (99) (69) Amount............ $ (1,596) $ (1,079) Class N Shares........... (40) (36) Amount............ $ (588) $ (626) Class Y Shares........... -- @@ Amount............ $ -- $ 1 STOCK FUND: Class A Shares........... (3,869) 3,060 Amount............ $ (54,575) $ 72,759 Class B Shares........... (2,306) (2,119) Amount............ $ (31,128) $(24,517) Class C Shares........... (3,607) (2,656) Amount............ $ (49,483) $(32,747) Class Y Shares........... 141 851 Amount............ $ 3,637 $ 13,254 TAX-FREE CALIFORNIA FUND: Class A Shares........... 288 800 Amount............ $ 2,917 $ 8,000 Class B Shares........... 84 100 Amount............ $ 852 $ 1,000 Class C Shares........... 24 100 Amount............ $ 242 $ 1,000 TAX-FREE MINNESOTA FUND: Class A Shares........... 112 198 Amount............ $ 1,190 $ 2,075 Class B Shares........... 28 23 Amount............ $ 297 $ 238 Class C Shares........... 10 29 Amount............ $ 112 $ 305 Class E Shares........... (152) (129) Amount............ $ (1,608) $ (1,325) Class H Shares........... (40) (50) Amount............ $ (427) $ (517) Class L Shares........... (40) (21) Amount............ $ (415) $ (224) Class M Shares........... (10) (21) Amount............ $ (107) $ (212) Class N Shares........... 1 @@ Amount............ $ 9 $ (1) Class Y Shares........... -- @@ Amount............ $ @@ $ 1 TAX-FREE NATIONAL FUND: Class A Shares........... 858 1,081 Amount............ $ 9,628 $ 12,110 Class B Shares........... 264 336 Amount............ $ 2,940 $ 3,750 Class C Shares........... 410 278 Amount............ $ 4,570 $ 3,110 Class E Shares........... (421) (299) Amount............ $ (4,737) $ (3,291) Class H Shares........... (100) (162) Amount............ $ (1,094) $ (1,768) Class L Shares........... 22 (65) Amount............ $ 234 $ (713) Class M Shares........... (26) (17) Amount............ $ (287) $ (188) Class N Shares........... 1 6 Amount............ $ 18 $ 56 Class Y Shares........... -- @@ Amount............ $ -- $ 1 TAX-FREE NEW YORK FUND: Class A Shares........... 47 800 Amount............ $ 480 $ 8,000
@@ Due to the presentation of the financial statements in thousands, the number or shares and/or dollars round to zero. 186 --------------------------------------------------------------------------------
SHARES ISSUED FOR SHARES ISSUED SHARES SOLD REINVESTED DIVIDENDS SHARES REDEEMED FROM MERGER ---------------------- -------------------- ---------------------- ------------------ 2003 2002 2003 2002 2003 2002 2003 2002 -------- ---------- -------- -------- --------- --------- ------ -------- Class B Shares........... 11 100 3 -- (10) -- -- -- Amount............ $ 109 $ 1,000 $ 28 $ -- $ (101) $ -- $ -- $ -- Class C Shares........... 37 100 3 -- (3) -- -- -- Amount............ $ 378 $ 1,000 $ 34 $ -- $ (34) $ -- $ -- $ -- TOTAL RETURN BOND FUND: Class A Shares........... 20,815 41,344 1,161 741 (17,801) (33,367) -- -- Amount............ $230,384 $ 440,630 $12,816 $ 7,890 $(196,901) $(355,641) $ -- $ -- Class B Shares........... 3,361 6,149 405 277 (3,330) (2,452) -- -- Amount............ $ 37,093 $ 65,306 $ 4,445 $ 2,942 $ (36,783) $ (25,988) $ -- $ -- Class C Shares........... 4,024 8,311 407 289 (4,503) (4,332) -- -- Amount............ $ 44,598 $ 88,545 $ 4,477 $ 3,072 $ (49,934) $ (46,166) $ -- $ -- Class Y Shares........... 3,008 2,085 261 191 (1,577) (2,587) -- -- Amount............ $ 33,786 $ 22,377 $ 2,916 $ 2,051 $ (17,751) $ (27,678) $ -- $ -- U.S. GOVERNMENT SECURITIES FUND: Class A Shares........... 11,235 9,877 314 61 (12,412) (2,321) -- -- Amount............ $111,585 $ 96,314 $ 3,103 $ 597 $(122,873) $ (22,790) $ -- $ -- Class B Shares........... 2,842 4,502 148 25 (3,017) (535) -- -- Amount............ $ 28,199 $ 43,685 $ 1,464 $ 245 $ (29,559) $ (5,225) $ -- $ -- Class C Shares........... 5,479 5,728 100 20 (6,954) (1,610) -- -- Amount............ $ 54,470 $ 55,648 $ 985 $ 199 $ (68,476) $ (15,728) $ -- $ -- Class E Shares........... 264 562 516 531 (2,526) (4,688) -- -- Amount............ $ 2,616 $ 5,375 $ 5,089 $ 5,069 $ (24,872) $ (44,397) $ -- $ -- Class H Shares........... 30 156 25 29 (350) (354) -- -- Amount............ $ 299 $ 1,495 $ 241 $ 271 $ (3,443) $ (3,383) $ -- $ -- Class L Shares........... 351 3,304 168 170 (1,017) (3,941) -- -- Amount............ $ 3,476 $ 31,232 $ 1,662 $ 1,622 $ (10,045) $ (37,337) $ -- $ -- Class M Shares........... 51 183 19 19 (271) (207) -- -- Amount............ $ 510 $ 1,737 $ 187 $ 184 $ (2,658) $ (1,976) $ -- $ -- Class N Shares........... 12 33 6 6 (48) (101) -- -- Amount............ $ 120 $ 315 $ 56 $ 62 $ (476) $ (961) $ -- $ -- Class Y Shares........... -- @@ @@ @@ -- -- -- -- Amount............ $ -- $ 1 @@ @@ $ -- $ -- $ -- $ -- VALUE FUND: Class A Shares........... 1,775 3,339 30 8 (1,040) (916) -- -- Amount............ $ 14,409 $ 30,840 $ 231 $ 78 $ (8,159) $ (7,524) $ -- $ -- Class B Shares........... 275 642 -- 1 (144) (173) -- -- Amount............ $ 2,202 $ 5,842 $ -- $ 11 $ (1,118) $ (1,383) $ -- $ -- Class C Shares........... 328 1,019 -- 3 (383) (340) -- -- Amount............ $ 2,572 $ 9,226 $ -- $ 27 $ (3,003) $ (2,813) $ -- $ -- Class Y Shares........... @@ -- -- @@ (27) -- -- -- Amount............ $ 3 $ -- $ -- $ 2 $ (229) $ -- $ -- $ -- VALUE OPPORTUNITIES FUND: Class A Shares........... 384 309 -- -- (178) (28) -- -- Amount............ $ 4,094 $ 3,321 $ -- $ -- $ (1,747) $ (267) $ -- $ -- Class B Shares........... 126 63 -- -- (12) (9) -- -- Amount............ $ 1,291 $ 650 $ -- $ -- $ (123) $ (93) $ -- $ -- Class C Shares........... 106 50 -- -- (15) (1) -- -- Amount............ $ 1,098 $ 501 $ -- $ -- $ (138) $ (5) $ -- $ -- Class H Shares........... 40 71 -- 49 (110) (167) -- -- Amount............ $ 371 $ 773 $ -- $ 542 $ (1,049) $ (1,740) $ -- $ -- Class L Shares........... 156 416 -- 160 (414) (784) -- -- Amount............ $ 1,619 $ 4,918 $ -- $ 1,848 $ (4,185) $ (8,539) $ -- $ -- Class M Shares........... 65 177 -- 52 (124) (227) -- -- Amount............ $ 621 $ 1,988 $ -- $ 576 $ (1,196) $ (2,338) $ -- $ -- Class N Shares........... 14 23 -- 16 (39) (70) -- -- Amount............ $ 135 $ 263 $ -- $ 183 $ (360) $ (747) $ -- $ -- Class Y Shares........... -- @@ -- -- -- -- -- -- Amount............ $ -- $ 1 $ -- $ -- $ -- $ -- $ -- $ -- NET INCREASE (DECREASE) OF SHARES --------------------- 2003 2002 --------- -------- Class B Shares........... 4 100 Amount............ $ 36 $ 1,000 Class C Shares........... 37 100 Amount............ $ 378 $ 1,000 TOTAL RETURN BOND FUND: Class A Shares........... 4,175 8,718 Amount............ $ 46,299 $ 92,879 Class B Shares........... 436 3,974 Amount............ $ 4,755 $ 42,260 Class C Shares........... (72) 4,268 Amount............ $ (859) $ 45,451 Class Y Shares........... 1,692 (311) Amount............ $ 18,951 $ (3,250) U.S. GOVERNMENT SECURITIE Class A Shares........... (863) 7,617 Amount............ $ (8,185) $ 74,121 Class B Shares........... (27) 3,992 Amount............ $ 104 $ 38,705 Class C Shares........... (1,375) 4,138 Amount............ $ (13,021) $ 40,119 Class E Shares........... (1,746) (3,595) Amount............ $ (17,167) $(33,953) Class H Shares........... (295) (169) Amount............ $ (2,903) $ (1,617) Class L Shares........... (498) (467) Amount............ $ (4,907) $ (4,483) Class M Shares........... (201) (5) Amount............ $ (1,961) $ (55) Class N Shares........... (30) (62) Amount............ $ (300) $ (584) Class Y Shares........... @@ @@ Amount............ @@ $ 1 VALUE FUND: Class A Shares........... 765 2,431 Amount............ $ 6,481 $ 23,394 Class B Shares........... 131 470 Amount............ $ 1,084 $ 4,470 Class C Shares........... (55) 682 Amount............ $ (431) $ 6,440 Class Y Shares........... (27) @@ Amount............ $ (226) $ 2 VALUE OPPORTUNITIES FUND: Class A Shares........... 206 281 Amount............ $ 2,347 $ 3,054 Class B Shares........... 114 54 Amount............ $ 1,168 $ 557 Class C Shares........... 91 49 Amount............ $ 960 $ 496 Class H Shares........... (70) (47) Amount............ $ (678) $ (425) Class L Shares........... (258) (208) Amount............ $ (2,566) $ (1,773) Class M Shares........... (59) 2 Amount............ $ (575) $ 226 Class N Shares........... (25) (31) Amount............ $ (225) $ (301) Class Y Shares........... -- @@ Amount............ $ -- $ 1
@@ Due to the presentation of the financial statements in thousands, the number or shares and/or dollars round to zero. 187 THE HARTFORD MUTUAL FUNDS, INC. AND THE HARTFORD MUTUAL FUND II, INC. NOTES TO FINANCIAL STATEMENTS -- (CONTINUED) OCTOBER 31, 2003 (000'S OMITTED) -------------------------------------------------------------------------------- 7. RECLASSIFICATION OF CAPITAL ACCOUNTS: In accordance with American Institute of Certified Public Accountants Statement of Position 93-2, Determination, Disclosure, and Financial Statement Presentation of Income, Capital Gain, and Return of Capital Distributions by Investment Companies, the Funds have recorded several reclassifications in their capital accounts. These reclassifications had no impact on the net asset value of the Funds and are designed generally to present accumulated undistributed (distribution in excess of) net investment income and realized gain on investments on a tax basis which is considered to be more informative to the shareholder. The reclassifications are a result of permanent differences between GAAP and tax accounting for such items as foreign currency and passive foreign investment company (PFIC) income classifications, and net operating losses that reduce capital gain distribution requirements. Adjustments are made to reflect the impact these items have on current and future distributions to shareholders. Therefore, the source of the Funds' distributions may be shown in the accompanying Statements of Changes in Net Assets as from net investment income, from net realized gains on investments or from capital depending on the type of book and tax differences that exist. For the period ended October 31, 2003, the Funds recorded the following reclassifications to increase (decrease) the accounts listed below.
UNDISTRIBUTED ACCUMULATED NET INVESTMENT NET REALIZED PAID-IN- INCOME GAIN (LOSS) CAPITAL -------------- ------------ -------- Advisers Fund........................... $ 123 $ (123) $ -- Capital Appreciation Fund............... 15,762 1,449 (17,211) Dividend and Growth Fund................ 280 12 (292) Equity Income Fund...................... 7 -- (7) Focus Fund.............................. 638 -- (638) Global Communications Fund.............. 17 6 (23) Global Financial Services Fund.......... 2 (2) -- Global Health Fund...................... 1,913 (1,081) (832) Global Leaders Fund..................... 2,379 (88) (2,291) Global Technology Fund.................. 739 -- (739) Growth Fund............................. 1,780 -- (1,780) Growth Opportunities Fund............... 3,535 -- (3,535) High Yield Fund......................... 1,778 (15,403) 13,625 Income Fund............................. 53 (20) (33) Inflation Plus Fund..................... 42 -- (42) International Capital Appreciation Fund.................................. 49 (49) -- International Opportunities Fund........ 12 (5) (7) International Small Company Fund........ 3 (3) -- MidCap Fund............................. 14,260 (19) (14,241) MidCap Value Fund....................... 1,112 77 (1,189) Money Market Fund....................... 8 (8) -- Short Duration Fund..................... 35 -- (35) Small Company Fund...................... 2,963 12 (2,975) SmallCap Growth Fund.................... 1,410 16 (1,426) Stock Fund.............................. 154 -- (154) Tax-Free California Fund................ 37 -- (37) Tax-Free New York Fund.................. 38 -- (38) Total Return Bond Fund.................. 7,241 (7,241) -- U.S. Government Securities Fund......... 354 17,873 (18,227) Value Opportunities Fund................ 159 -- (159)
8. CAPITAL LOSS CARRYFORWARDS: As of October 31, 2003 (tax year-end), the following Funds had capital loss carryforwards for U.S. federal income tax purposes of approximately:
YEAR OF FUND AMOUNT EXPIRATION ---- -------- ---------- Advisers Fund................................ $357,815 2009-2011 Capital Appreciation Fund.................... 791,427 2009-2011 Disciplined Equity Fund...................... 129,537 2009-2011 Dividend and Growth Fund..................... 51,709 2010-2011 Focus Fund................................... 30,183 2009-2011 Global Communications Fund................... 7,672 2009-2011 Global Financial Services Fund............... 2,480 2009-2011 Global Leaders Fund.......................... 161,940 2009-2010 Global Technology Fund....................... 65,114 2009-2010 Growth Fund.................................. 87,248 2009-2011 Growth Opportunities Fund.................... 151,238 2009-2010 High Yield Fund.............................. 86,634 2007-2011 Income Fund.................................. 20 2011 International Opportunities Fund............. 57,670 2009-2011 MidCap Fund.................................. 122,776 2009-2010 MidCap Value Fund............................ 474 2009-2010 Short Duration Fund.......................... 221 2011 Small Company Fund........................... 108,923 2009-2010 SmallCap Growth Fund......................... 84,008 2009-2011 Stock Fund................................... 570,537 2009-2011 Tax-Free California Fund..................... 80 2011 U.S. Government Securities Fund.............. 10,866 2004-2011 Value........................................ 7,069 2010-2011 Value Opportunities Fund..................... 9,273 2009-2011
In accordance with Section 382 of the Internal Revenue Code, utilization of all or a portion of the above capital loss carryforwards (acquired via merger) is limited on an annual basis in the amounts as follows:
ANNUAL ACQUIRING FUND LIMITATION -------------- ---------- High Yield Fund................................. $3,813 International Opportunities Fund................ 960
9. LINE OF CREDIT: The Funds participate in a $550,000 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. For the period ended October 31, 2003, the Funds did not have any borrowings under this facility. 10. FUND MERGERS: Effective with the close of business on February 15, 2002, the shareholders approved the following fund mergers: Fortis Asset Allocation Portfolio merged into The Hartford Advisers Fund Fortis Global Growth Portfolio merged into The Hartford Global Leaders Fund Fortis Growth & Income Fund merged into The Hartford Growth and Income Fund (subsequently renamed The Hartford Disciplined Equity Fund) Fortis High Yield Portfolio merged into The Hartford High Yield Fund 188 -------------------------------------------------------------------------------- Fortis International Equity Portfolio merged into The Hartford International Opportunities Fund Fortis Money Fund merged into The Hartford Money Market Fund Fortis Class A and Z were merged into Hartford Class A, Fortis Classes B and H were merged into Hartford Class B and Fortis Class C was merged into Hartford Class C. The mergers were accomplished by tax-free exchanges as detailed below:
ADVISERS FUND CLASS A/Z CLASS B/H CLASS C CLASS Y ------------- ---------- --------- -------- ------- Fortis Asset Allocation shares exchanged................... 10,445 4,097 747 Hartford Advisers shares issued...................... 10,210 4,011 721 Net assets of Fortis Asset Allocation on February 15, 2002........................ $ 149,372 $ 58,085 $ 10,535 Net assets of Hartford Advisers immediately before the merger.................. $1,193,698 $654,672 $508,986 $1,445 Combined net assets........... $1,343,070 $712,757 $519,521 $1,445
GLOBAL LEADERS FUND CLASS A CLASS B CLASS C CLASS Y ------------------- -------- ------- -------- ------- Fortis Global Growth Fund shares exchanged........................ 4,773 1,659 215 Hartford Global Leaders shares issued........................... 6,063 2,012 262 Net assets of Fortis Global Growth Fund on February 15, 2002........ $ 81,253 $26,325 $ 3,427 Net assets of Hartford Global Leaders immediately before the merger........................... $261,919 $65,618 $104,332 $1 Combined net assets................ $343,172 $91,943 $107,759 $1
DISCIPLINED EQUITY FUND CLASS A CLASS B CLASS C CLASS Y ----------------------- -------- ------- ------- ------- Fortis Growth & Income shares exchanged................... 1,696 1,043 155 Hartford Disciplined Equity shares issued............... 1,945 1,206 179 Net assets of Fortis Growth & Income on February 15, 2002........................ $ 20,626 $12,446 $ 1,856 Net assets of Hartford Disciplined Equity immediately before the merger...................... $267,115 $46,629 $63,400 $528 Combined net assets........... $287,741 $59,075 $65,256 $528
HIGH YIELD FUND CLASS A CLASS B CLASS C CLASS Y --------------- ------- ------- ------- ------- Fortis High Yield shares exchanged................... 8,797 6,779 581 Hartford High Yield shares issued...................... 5,090 3,935 337 Net assets of Fortis High Yield on February 15, 2002.. $41,430 $31,948 $ 2,737 Net assets of Hartford High Yield immediately before the merger...................... $56,149 $18,466 $33,142 $1 Combined net assets........... $97,579 $50,414 $35,879 $1
INTERNATIONAL OPPORTUNITIES FUND CLASS A CLASS B CLASS C CLASS Y -------------------------------- ------- ------- ------- ------- Fortis International Equity shares exchanged............. 912 439 53 Hartford International Opportunities shares issued.. 1,418 636 77 Net assets of Fortis International Equity on February 15, 2002............ $12,538 $ 5,906 $ 711 Net assets of Hartford International Opportunities immediately before the merger....................... $77,338 $18,688 $17,707 $5,426 Combined net assets............ $90,952 $24,593 $18,416 $5,501
MONEY MARKET FUND CLASS A CLASS B/H CLASS C CLASS Y ----------------- -------- --------- ------- ------- Fortis Money Fund shares exchanged................... 194,078 5,247 624 Hartford Money Market shares issued...................... 194,078 5,247 624 Net assets of Fortis Money Fund on February 15, 2002... $194,078 $ 5,247 $ 624 Net assets of Hartford Money Market immediately before the merger.................. $ 93,806 $44,287 $50,627 $804 Combined net assets........... $287,884 $49,534 $51,251 $804
The Fortis Asset Allocation Portfolio, Fortis Global Growth Fund, Fortis Growth & Income Fund, Fortis High Yield Fund, Fortis International Equity Fund and Fortis Money Fund had unrealized appreciation (depreciation), accumulated net realized gains (losses) and capital stock as follows:
UNREALIZED ACCUMULATED APPRECIATION NET REALIZED CAPITAL FUND (DEPRECATION) GAINS (LOSSES) STOCK ---- ------------- -------------- -------- Fortis Asset Allocation Fund.................. $ (8,150) $ (2,713) $228,855 Fortis Global Growth Fund.................. 3,855 (616) 107,766 Fortis Growth & Income Fund.................. (670) (1,119) 36,717 Fortis High Yield Fund.................. (25,192) (60,942) 162,249 Fortis International Equity Fund........... (570) (7,152) 26,877 Fortis Money Fund....... -- -- 199,949
189 HARTFORD MUTUAL FUNDS, INC. AND HARTFORD MUTUAL FUNDS II, INC. FINANCIAL HIGHLIGHTS --------------------------------------------------------------------------------
SELECTED PER-SHARE DATA(A) ---------------------------------------------------------------------------------- NET REALIZED AND DISTRIBUTIONS NET ASSET NET UNREALIZED DIVIDENDS FROM VALUE AT INVESTMENT GAIN FROM NET REALIZED DISTRIBUTIONS BEGINNING INCOME (LOSS) ON INVESTMENT CAPITAL FROM OF PERIOD (LOSS) INVESTMENTS INCOME GAINS CAPITAL --------- ---------- ------------ ---------- ------------- ------------- THE HARTFORD ADVISERS FUND For the Year Ended October 31, 2003(g) Class A...................... $12.67 $ 0.19 $ 1.52 $(0.19) $ -- $ -- Class B...................... 12.54 0.09 1.51 (0.09) -- -- Class C...................... 12.66 0.11 1.52 (0.11) -- -- Class Y...................... 12.82 0.27 1.54 (0.26) -- -- For the Year Ended October 31, 2002(g) Class A...................... 14.38 0.21 (1.69) (0.23) -- -- Class B...................... 14.24 0.11 (1.68) (0.13) -- -- Class C...................... 14.37 0.12 (1.69) (0.14) -- Class Y...................... 14.54 0.13 (1.55) (0.30) -- -- For the Year Ended October 31, 2001 Class A...................... 17.07 0.30 (2.04) (0.31) (0.64) -- Class B...................... 16.90 0.20 (2.03) (0.19) (0.64) -- Class C...................... 17.05 0.20 (2.04) (0.20) (0.64) -- Class Y...................... 17.24 0.38 (2.06) (0.38) (0.64) -- For the Ten Months Ended October 31, 2000 Class A...................... 17.02 0.24 0.19 (0.22) (0.16) -- Class B...................... 16.87 0.15 0.17 (0.13) (0.16) -- Class C...................... 17.02 0.15 0.17 (0.13) (0.16) -- Class Y...................... 17.16 0.33 0.16 (0.25) (0.16) -- For the Year Ended December 31, 1999 Class A...................... 15.71 0.27 1.60 (0.25) (0.31) -- Class B...................... 15.59 0.16 1.58 (0.15) (0.31) -- Class C...................... 15.73(f) 0.17(f) 1.58(f) (0.15)(f) (0.31)(f) -- Class Y...................... 15.80 0.35 1.61 (0.29) (0.31) -- For the Year Ended December 31, 1998 Class A...................... 13.41 0.23 2.58 (0.25) (0.26) -- Class B...................... 13.33 0.15 2.54 (0.17) (0.26) -- Class Y...................... 13.46 0.29 2.59 (0.28) (0.26) -- From inception August 1, 1998, through December 31, 1998 Class C...................... 15.56(f) 0.16(f) 0.63(f) (0.22)(f) (0.40)(f) -- RATIOS AND SUPPLEMENTAL DATA ------------------------------------------------------------------------------------------ RATIO OF RATIO OF RATIO OF EXPENSES EXPENSES NET NET ASSET NET ASSETS TO AVERAGE TO AVERAGE INVESTMENT VALUE AT AT END OF NET ASSETS NET ASSETS INCOME PORTFOLIO END OF TOTAL PERIOD BEFORE AFTER TO AVERAGE TURNOVER PERIOD RETURN(C) (000'S) WAIVERS WAIVERS NET ASSETS RATE(E) --------- --------- ---------- ---------- ---------- ---------- --------- THE HARTFORD ADVISERS FUND For the Year Ended October 31, 2003(g) Class A...................... $14.19 13.62% $1,470,569 1.40% 1.39% 1.44% 46% Class B...................... 14.05 12.86 593,179 2.13 2.12 0.72 -- Class C...................... 14.18 12.92 421,814 2.00 2.00 0.84 -- Class Y...................... 14.37 14.28 8,714 0.81 0.81 1.98 -- For the Year Ended October 31, 2002(g) Class A...................... 12.67 (10.42) 1,245,331 1.41 1.36 1.56 44 Class B...................... 12.54 (11.11) 567,953 2.08 2.08 0.84 -- Class C...................... 12.66 (10.99) 422,520 1.97 1.97 0.95 -- Class Y...................... 12.82 (9.89) 3,997 0.78 0.78 2.15 -- For the Year Ended October 31, 2001 Class A...................... 14.38 (10.67) 1,088,858 1.27 1.22 1.99 37 Class B...................... 14.24 (11.27) 622,519 1.93 1.93 1.28 -- Class C...................... 14.37 (11.26) 478,194 1.93 1.93 1.28 -- Class Y...................... 14.54 (10.20) 56,320 0.74 0.74 2.48 -- For the Ten Months Ended October 31, 2000 Class A...................... 17.07 2.52(d) 893,954 1.26(b) 1.21(b) 1.76(b) 38 Class B...................... 16.90 1.89(d) 631,930 1.92(b) 1.92(b) 1.05(b) -- Class C...................... 17.05 1.89(d) 432,171 1.92(b) 1.92(b) 1.05(b) -- Class Y...................... 17.24 2.90(d) 64,889 0.75(b) 0.75(b) 2.22(b) -- For the Year Ended December 31, 1999 Class A...................... 17.02 12.08 693,136 1.31 1.26 1.72 35 Class B...................... 16.87 11.29 555,338 1.97 1.97 1.00 -- Class C...................... 17.02(f) 11.29 323,631 1.99 1.99 0.99 -- Class Y...................... 17.16 12.62 68,133 0.79 0.79 2.18 -- For the Year Ended December 31, 1998 Class A...................... 15.71 21.09 316,435 1.43 1.38 1.67 40 Class B...................... 15.59 20.27 237,959 2.11 2.10 0.98 -- Class Y...................... 15.80 21.62 57,891 0.90 0.90 2.09 -- From inception August 1, 1998, through December 31, 1998 Class C...................... 15.73(f) 5.25(d) 54,907 2.18(b) 2.10(b) 1.06(b) --
--------------- (a) Information presented relates to a share of capital share outstanding throughout the indicated period. (b) Annualized. (c) Assumes initial investment at net asset value at the beginning of each period, reinvestment of all distributions, the complete redemption of the investment at net asset value at the end of each period and no sales charge. Total return would be reduced if sales charges were taken into account. (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 have been restated to reflect a reverse stock split for Class C shares effective February 11, 1999. (g) Per share amounts have been calculated using average shares outstanding method. (h) Expense ratio includes a practical waiver of 12b-1 fees. See Notes to Financial Statements. 190 --------------------------------------------------------------------------------
SELECTED PER-SHARE DATA(A) ---------------------------------------------------------------------------------- NET REALIZED AND DISTRIBUTIONS NET ASSET NET UNREALIZED DIVIDENDS FROM VALUE AT INVESTMENT GAIN FROM NET REALIZED DISTRIBUTIONS BEGINNING INCOME (LOSS) ON INVESTMENT CAPITAL FROM OF PERIOD (LOSS) INVESTMENTS INCOME GAINS CAPITAL --------- ---------- ------------ ---------- ------------- ------------- THE HARTFORD CAPITAL APPRECIATION FUND For the Year Ended October 31, 2003 Class A...................... $20.47 $(0.04) $ 6.07 $ -- $ -- $ -- Class B...................... 19.44 (0.19) 5.72 -- -- -- Class C...................... 19.44 (0.16) 5.72 -- -- -- Class Y...................... 21.23 0.08 6.33 -- -- -- For the Year Ended October 31, 2002(g) Class A...................... 24.12 (0.06) (3.59) -- -- -- Class B...................... 23.06 (0.25) (3.37) -- -- -- Class C...................... 23.04 (0.22) (3.38) -- -- -- Class Y...................... 24.85 0.04 (3.66) -- -- -- For the Year Ended October 31, 2001 Class A...................... 33.20 0.05 (5.12) -- (4.01) -- Class B...................... 32.14 (0.02) (5.05) -- (4.01) -- Class C...................... 32.10 (0.06) (4.99) -- (4.01) -- Class Y...................... 33.94 0.08 (5.16) -- (4.01) -- For the Ten Months Ended October 31, 2000 Class A...................... 31.72 (0.01) 3.15 -- (1.66) -- Class B...................... 30.92 (0.12) 3.00 -- (1.66) -- Class C...................... 30.89 (0.15) 3.02 -- (1.66) -- Class Y...................... 32.27 0.03 3.30 -- (1.66) -- For the Year Ended December 31, 1999 Class A...................... 20.42 (0.07) 13.28 -- (1.91) -- Class B...................... 20.08 (0.19) 12.94 -- (1.91) -- Class C...................... 20.08(f) (0.12)(f) 12.84(f) -- (1.91)(f) -- Class Y...................... 20.66 -- 13.52 -- (1.91) -- For the Year Ended December 31, 1998 Class A...................... 19.90 (0.10) 0.75 -- (0.13) -- Class B...................... 19.71 (0.21) 0.71 -- (0.13) -- Class Y...................... 20.05 (0.06) 0.80 -- (0.13) -- From inception August 1, 1998, through December 31, 1998 Class C...................... 19.67(f) (0.06)(f) 0.47(f) -- --(f) -- RATIOS AND SUPPLEMENTAL DATA ------------------------------------------------------------------------------------------ RATIO OF RATIO OF RATIO OF EXPENSES EXPENSES NET NET ASSET NET ASSETS TO AVERAGE TO AVERAGE INVESTMENT VALUE AT AT END OF NET ASSETS NET ASSETS INCOME PORTFOLIO END OF TOTAL PERIOD BEFORE AFTER TO AVERAGE TURNOVER PERIOD RETURN(C) (000'S) WAIVERS WAIVERS NET ASSETS RATE(E) --------- --------- ---------- ---------- ---------- ---------- --------- THE HARTFORD CAPITAL APPRECIATION FUND For the Year Ended October 31, 2003 Class A...................... $26.50 29.46% $2,357,913 1.45% 1.43% (0.13)% 113% Class B...................... 24.97 28.45 1,140,154 2.17 2.17 (0.87) -- Class C...................... 25.00 28.60 981,246 2.05 2.05 (0.75) -- Class Y...................... 27.64 30.19 48,372 0.85 0.85 0.46 -- For the Year Ended October 31, 2002(g) Class A...................... 20.47 (15.13) 1,700,765 1.45 1.40 (0.28) 112 Class B...................... 19.44 (15.70) 884,553 2.14 2.14 (1.04) -- Class C...................... 19.44 (15.62) 738,988 2.02 2.02 (0.92) -- Class Y...................... 21.23 (14.57) 25,378 0.80 0.80 0.27 -- For the Year Ended October 31, 2001 Class A...................... 24.12 (17.24) 1,585,508 1.33 1.28 (0.22) 132 Class B...................... 23.06 (17.88) 876,826 1.99 1.99 (0.93) -- Class C...................... 23.04 (17.84) 666,372 1.99 1.99 (0.93) -- Class Y...................... 24.85 (16.85) 76,592 0.78 0.78 0.28 -- For the Ten Months Ended October 31, 2000 Class A...................... 33.20 10.18(d) 1,309,836 1.32(b) 1.27(b) (0.42)(b) 130 Class B...................... 32.14 9.59(d) 826,495 1.97(b) 1.97(b) (1.12)(b) -- Class C...................... 32.10 9.56(d) 494,391 1.99(b) 1.99(b) (1.14)(b) -- Class Y...................... 33.94 10.60(d) 89,477 0.80(b) 0.80(b) 0.05(b) -- For the Year Ended December 31, 1999 Class A...................... 31.72 66.76 797,656 1.38 1.33 (0.61) 169 Class B...................... 30.92 65.58 569,201 2.02 2.02 (1.31) -- Class C...................... 30.89(f) 65.44 191,466 2.09 2.09 (1.37) -- Class Y...................... 32.27 67.49 64,688 0.87 0.87 (0.16) -- For the Year Ended December 31, 1998 Class A...................... 20.42 3.26 364,951 1.49 1.44 (0.70) 123 Class B...................... 20.08 2.52 290,756 2.15 2.15 (1.39) -- Class Y...................... 20.66 3.68 27,700 0.96 0.96 (0.27) -- From inception August 1, 1998, through December 31, 1998 Class C...................... 20.08(f) 2.10(d) 15,231 2.29(b) 2.15(b) (1.34)(b) --
--------------- (a) Information presented relates to a share of capital share outstanding throughout the indicated period. (b) Annualized. (c) Assumes initial investment at net asset value at the beginning of each period, reinvestment of all distributions, the complete redemption of the investment at net asset value at the end of each period and no sales charge. Total return would be reduced if sales charges were taken into account. (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 have been restated to reflect a reverse stock split for Class C shares effective February 11, 1999. (g) Per share amounts have been calculated using average shares outstanding method. (h) Expense ratio includes a practical waiver of 12b-1 fees. 191 HARTFORD MUTUAL FUNDS, INC. AND HARTFORD MUTUAL FUNDS II, INC. FINANCIAL HIGHLIGHTS -- (CONTINUED) --------------------------------------------------------------------------------
SELECTED PER-SHARE DATA(A) ---------------------------------------------------------------------------------- NET REALIZED AND DISTRIBUTIONS NET ASSET NET UNREALIZED DIVIDENDS FROM VALUE AT INVESTMENT GAIN FROM NET REALIZED DISTRIBUTIONS BEGINNING INCOME (LOSS) ON INVESTMENT CAPITAL FROM OF PERIOD (LOSS) INVESTMENTS INCOME GAINS CAPITAL --------- ---------- ------------ ---------- ------------- ------------- THE HARTFORD DISCIPLINED EQUITY FUND For the Year Ended October 31, 2003 Class A...................... $ 8.43 $ 0.02 $ 1.63 $ -- $ -- $ -- Class B...................... 8.17 (0.04) 1.57 -- -- -- Class C...................... 8.18 (0.04) 1.57 -- -- -- Class Y...................... 8.63 0.08 1.65 -- -- -- For the Year Ended October 31, 2002(g) Class A...................... 10.36 -- (1.93) -- -- -- Class B...................... 10.10 (0.11) (1.82) -- -- -- Class C...................... 10.11 (0.06) (1.87) -- -- -- Class Y...................... 10.52 0.05 (1.94) -- -- -- For the Year Ended October 31, 2001 Class A...................... 13.63 -- (2.75) -- (0.52) -- Class B...................... 13.40 (0.05) (2.73) -- (0.52) -- Class C...................... 13.41 (0.06) (2.72) -- (0.52) -- Class Y...................... 13.78 0.03 (2.77) -- (0.52) -- For the Ten Months Ended October 31, 2000 Class A...................... 13.72 (0.02) 0.04 -- (0.11) -- Class B...................... 13.58 (0.06) (0.01) -- (0.11) -- Class C...................... 13.58 (0.06) -- -- (0.11) -- Class Y...................... 13.83 0.02 0.04 -- (0.11) -- For the Year Ended December 31, 1999 Class A...................... 11.45 0.01 2.36 -- (0.10) -- Class B...................... 11.41 (0.02) 2.29 -- (0.10) -- Class C...................... 11.41(f) (0.03)(f) 2.30(f) -- (0.10)(f) -- Class Y...................... 11.48 0.06 2.39 -- (0.10) -- From inception April 30, 1998, through December 31, 1998 Class A...................... 10.00 0.02 1.45 -- -- (0.02) Class B...................... 10.00 (0.01) 1.43 -- -- (0.01) Class Y...................... 10.00 0.05 1.46 -- -- (0.03) From inception August 1, 1998, through December 31, 1998 Class C...................... 10.14(f) 0.01(f) 1.29(f) -- -- (0.03)(f) RATIOS AND SUPPLEMENTAL DATA ------------------------------------------------------------------------------------------ RATIO OF RATIO OF RATIO OF EXPENSES EXPENSES NET NET ASSET NET ASSETS TO AVERAGE TO AVERAGE INVESTMENT VALUE AT AT END OF NET ASSETS NET ASSETS INCOME PORTFOLIO END OF TOTAL PERIOD BEFORE AFTER TO AVERAGE TURNOVER PERIOD RETURN(C) (000'S) WAIVERS WAIVERS NET ASSETS RATE(E) --------- --------- ---------- ---------- ---------- ---------- --------- THE HARTFORD DISCIPLINED EQUITY FUND For the Year Ended October 31, 2003 Class A...................... $10.08 19.57% $ 243,842 1.56% 1.45% 0.24% 76% Class B...................... 9.70 18.73 47,888 2.30 2.15 (0.46) -- Class C...................... 9.71 18.70 46,162 2.17 2.15 (0.46) -- Class Y...................... 10.36 20.05 622 0.98 0.98 0.70 -- For the Year Ended October 31, 2002(g) Class A...................... 8.43 (18.63) 230,545 1.57 1.45 (0.03) 89 Class B...................... 8.17 (19.11) 43,431 2.26 2.15 (1.03) -- Class C...................... 8.18 (19.09) 44,054 2.13 2.13 (0.80) -- Class Y...................... 8.63 (17.97) 661 0.93 0.93 0.46 -- For the Year Ended October 31, 2001 Class A...................... 10.36 (20.90) 239,698 1.43 1.38 (0.07) 80 Class B...................... 10.10 (21.51) 43,210 2.11 2.11 (0.80) -- Class C...................... 10.11 (21.50) 60,409 2.09 2.09 (0.78) -- Class Y...................... 10.52 (20.60) 440 0.96 0.96 0.34 -- For the Ten Months Ended October 31, 2000 Class A...................... 13.63 0.15(d) 197,176 1.43(b) 1.38(b) (0.17)(b) 63 Class B...................... 13.40 (0.51)(d) 41,126 2.11(b) 2.11(b) (0.90)(b) -- Class C...................... 13.41 (0.44)(d) 63,650 2.09(b) 2.09(b) (0.88)(b) -- Class Y...................... 13.78 0.44(d) 490 0.95(b) 0.95(b) 0.26(b) -- For the Year Ended December 31, 1999 Class A...................... 13.72 20.80 74,764 1.49 1.44 0.01 53 Class B...................... 13.58 20.00 20,375 2.13 2.13 (0.68) -- Class C...................... 13.58(f) 19.98 29,265 2.16 2.15 (0.69) -- Class Y...................... 13.83 21.45 480 0.93 0.93 0.51 -- From inception April 30, 1998, through December 31, 1998 Class A...................... 11.45 14.78(d) 11,120 1.63(b) 1.45(b) 0.23(b) 35 Class B...................... 11.41 14.21(d) 3,538 2.32(b) 2.15(b) (0.47)(b) -- Class Y...................... 11.48 15.18(d) 386 1.20(b) 1.00(b) 0.76(b) -- From inception August 1, 1998, through December 31, 1998 Class C...................... 11.41(f) 12.80(d) 3,726 2.38(b) 2.15(b) (0.53)(b) --
--------------- (a) Information presented relates to a share of capital share outstanding throughout the indicated period. (b) Annualized. (c) Assumes initial investment at net asset value at the beginning of each period, reinvestment of all distributions, the complete redemption of the investment at net asset value at the end of each period and no sales charge. Total return would be reduced if sales charges were taken into account. (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 have been restated to reflect a reverse stock split for Class C shares effective February 11, 1999. (g) Per share amounts have been calculated using average shares outstanding method. (h) Expense ratio includes a practical waiver of 12b-1 fees. See Notes to Financial Statements. 192 --------------------------------------------------------------------------------
SELECTED PER-SHARE DATA(A) ---------------------------------------------------------------------------------- NET REALIZED AND DISTRIBUTIONS NET ASSET NET UNREALIZED DIVIDENDS FROM VALUE AT INVESTMENT GAIN FROM NET REALIZED DISTRIBUTIONS BEGINNING INCOME (LOSS) ON INVESTMENT CAPITAL FROM OF PERIOD (LOSS) INVESTMENTS INCOME GAINS CAPITAL --------- ---------- ------------ ---------- ------------- ------------- THE HARTFORD DIVIDEND AND GROWTH FUND For the Year Ended October 31, 2003 Class A...................... $13.58 $ 0.12 $ 2.37 $(0.13)(i) $ -- $ -- Class B...................... 13.43 0.03 2.32 (0.03)(i) -- -- Class C...................... 13.40 0.04 2.32 (0.04)(i) -- -- Class Y...................... 13.73 0.19 2.40 (0.21)(i) -- -- For the Year Ended October 31, 2002(g) Class A...................... 15.53 0.12 (1.71) (0.12) (0.24) -- Class B...................... 15.37 0.02 (1.70) (0.02) (0.24) -- Class C...................... 15.33 0.03 (1.69) (0.03) (0.24) -- Class Y...................... 15.71 0.12 (1.65) (0.21) (0.24) -- For the Year Ended October 31, 2001 Class A...................... 17.78 0.18 (1.49) (0.17) (0.77) -- Class B...................... 17.60 0.07 (1.48) (0.05) (0.77) -- Class C...................... 17.57 0.08 (1.48) (0.07) (0.77) -- Class Y...................... 17.96 0.25 (1.48) (0.25) (0.77) -- For the Ten Months Ended October 31, 2000 Class A...................... 16.85 0.15 0.98 (0.12) (0.08) -- Class B...................... 16.69 0.04 0.99 (0.04) (0.08) -- Class C...................... 16.67 0.07 0.95 (0.04) (0.08) -- Class Y...................... 16.96 0.22 1.02 (0.16) (0.08) -- For the Year Ended December 31, 1999 Class A...................... 16.62 0.15 0.60 (0.17) (0.35) -- Class B...................... 16.47 0.04 0.58 (0.05) (0.35) -- Class C...................... 16.48(f) 0.04(f) 0.58(f) (0.08)(f) (0.35)(f) -- Class Y...................... 16.69 0.21 0.63 (0.22) (0.35) -- For the Year Ended December 31, 1998 Class A...................... 14.72 0.15 1.97 (0.15) (0.07) -- Class B...................... 14.61 0.06 1.92 (0.05) (0.07) -- Class Y...................... 14.77 0.24 1.94 (0.19) (0.07) -- From inception August 1, 1998, through December 31, 1998 Class C...................... 15.94(f) 0.05(f) 0.70(f) (0.10)(f) (0.11)(f) -- THE HARTFORD EQUITY INCOME FUND From inception August 28, 2003, through October 31, 2003 Class A...................... 10.00 0.02 0.35 -- -- -- Class B...................... 10.00 0.01 0.35 -- -- -- Class C...................... 10.00 0.01 0.35 -- -- -- Class Y...................... 10.00 0.04 0.35 -- -- -- RATIOS AND SUPPLEMENTAL DATA ------------------------------------------------------------------------------------------ RATIO OF RATIO OF RATIO OF EXPENSES EXPENSES NET NET ASSET NET ASSETS TO AVERAGE TO AVERAGE INVESTMENT VALUE AT AT END OF NET ASSETS NET ASSETS INCOME PORTFOLIO END OF TOTAL PERIOD BEFORE AFTER TO AVERAGE TURNOVER PERIOD RETURN(C) (000'S) WAIVERS WAIVERS NET ASSETS RATE(E) --------- --------- ---------- ---------- ---------- ---------- --------- THE HARTFORD DIVIDEND AND GROWTH FUND For the Year Ended October 31, 2003 Class A...................... $15.94 18.42% $1,296,982 1.41% 1.40% 0.88% 31% Class B...................... 15.75 17.52 257,856 2.14 2.13 0.16 -- Class C...................... 15.72 17.67 230,348 2.02 2.02 0.27 -- Class Y...................... 16.11 19.03 42,107 0.81 0.81 1.44 -- For the Year Ended October 31, 2002(g) Class A...................... 13.58 (10.64) 808,633 1.46 1.40 0.78 33 Class B...................... 13.43 (11.15) 185,731 2.13 2.10 0.08 -- Class C...................... 13.40 (11.08) 164,260 2.02 2.02 0.15 -- Class Y...................... 13.73 (10.00) 14,790 0.82 0.82 1.36 -- For the Year Ended October 31, 2001 Class A...................... 15.53 (7.67) 521,543 1.36 1.31 1.06 55 Class B...................... 15.37 (8.34) 150,592 2.03 2.03 0.34 -- Class C...................... 15.33 (8.33) 117,108 2.03 2.03 0.35 -- Class Y...................... 15.71 (7.20) 26,326 0.82 0.82 1.55 -- For the Ten Months Ended October 31, 2000 Class A...................... 17.78 6.77(d) 294,903 1.36(b) 1.31(b) 0.99(b) 56 Class B...................... 17.60 6.17(d) 118,936 2.03(b) 2.03(b) 0.27(b) -- Class C...................... 17.57 6.17(d) 63,503 2.03(b) 2.03(b) 0.27(b) -- Class Y...................... 17.96 7.37(d) 22,441 0.85(b) 0.85(b) 1.45(b) -- For the Year Ended December 31, 1999 Class A...................... 16.85 4.57 242,054 1.38 1.33 0.94 50 Class B...................... 16.69 3.82 121,977 2.02 2.02 0.25 -- Class C...................... 16.67(f) 3.76 42,869 2.07 2.07 0.21 -- Class Y...................... 16.96 5.10 23,616 0.87 0.87 1.42 -- For the Year Ended December 31, 1998 Class A...................... 16.62 14.47 182,495 1.43 1.38 1.08 46 Class B...................... 16.47 13.62 108,344 2.10 2.10 0.39 -- Class Y...................... 16.69 14.86 17,098 0.91 0.91 1.53 -- From inception August 1, 1998, through December 31, 1998 Class C...................... 16.48(f) 4.82(d) 9,682 2.20(b) 2.10(b) 0.23(b) -- THE HARTFORD EQUITY INCOME FUND From inception August 28, 2003, through October 31, 2003 Class A...................... 10.37 3.70(d) 26,649 1.53(b) 0.73(b) 1.81(b) 1 Class B...................... 10.36 3.60(d) 2,421 2.27(b) 1.47(b) 1.10(b) -- Class C...................... 10.36 3.60(d) 7,639 2.15(b) 1.35(b) 1.23(b) -- Class Y...................... 10.39 3.90(d) 104 0.93(b) 0.13(b) 2.17(b) --
--------------- (a) Information presented relates to a share of capital share outstanding throughout the indicated period. (b) Annualized. (c) Assumes initial investment at net asset value at the beginning of each period, reinvestment of all distributions, the complete redemption of the investment at net asset value at the end of each period and no sales charge. Total return would be reduced if sales charges were taken into account. (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 have been restated to reflect a reverse stock split for Class C shares effective February 11, 1999. (g) Per share amounts have been calculated using average shares outstanding method. (h) Expense ratio includes a practical waiver of 12b-1 fees. (i) This includes a tax return of capital of less than $0.01. 193 HARTFORD MUTUAL FUNDS, INC. AND HARTFORD MUTUAL FUNDS II, INC. FINANCIAL HIGHLIGHTS -- (CONTINUED) --------------------------------------------------------------------------------
SELECTED PER-SHARE DATA(A) ---------------------------------------------------------------------------------- NET REALIZED AND DISTRIBUTIONS NET ASSET NET UNREALIZED DIVIDENDS FROM VALUE AT INVESTMENT GAIN FROM NET REALIZED DISTRIBUTIONS BEGINNING INCOME (LOSS) ON INVESTMENT CAPITAL FROM OF PERIOD (LOSS) INVESTMENTS INCOME GAINS CAPITAL --------- ---------- ------------ ---------- ------------- ------------- THE HARTFORD FOCUS FUND For the Year Ended October 31, 2003 Class A...................... $ 7.32 $(0.02) $ 1.64 $ -- $ -- $ -- Class B...................... 7.25 (0.08) 1.62 -- -- -- Class C...................... 7.24 (0.08) 1.62 -- -- -- Class Y...................... 7.37 0.01 1.66 -- -- -- For the Year Ended October 31, 2002(g) Class A...................... 8.82 (0.05) (1.45) -- -- -- Class B...................... 8.79 (0.12) (1.42) -- -- -- Class C...................... 8.79 (0.12) (1.43) -- -- -- Class Y...................... 8.83 -- (1.46) -- -- -- From inception May 24, 2001, through October 31, 2001 Class A...................... 10.00 (0.01) (1.17) -- -- -- Class B...................... 10.00 (0.03) (1.18) -- -- -- Class C...................... 10.00 (0.04) (1.17) -- -- -- Class Y...................... 10.00 0.01 (1.18) -- -- -- THE HARTFORD GLOBAL COMMUNICATIONS FUND For the Year Ended October 31, 2003 Class A...................... 3.24 (0.01) 1.44 -- -- -- Class B...................... 3.19 (0.03) 1.42 -- -- -- Class C...................... 3.19 (0.03) 1.41 -- -- -- Class Y...................... 3.26 0.01 1.47 -- -- -- For the Year Ended October 31, 2002(g) Class A...................... 4.57 -- (1.33) -- -- -- Class B...................... 4.54 (0.04) (1.31) -- -- -- Class C...................... 4.54 (0.04) (1.31) -- -- -- Class Y...................... 4.60 -- (1.34) -- -- -- For the Year Ended October 31, 2001 Class A...................... 10.00 (0.02) (5.41) -- -- -- Class B...................... 10.00 (0.05) (5.41) -- -- -- Class C...................... 10.00 (0.05) (5.41) -- -- -- Class Y...................... 10.00 -- (5.40) -- -- -- THE HARTFORD GLOBAL FINANCIAL SERVICES FUND For the Year Ended October 31, 2003 Class A...................... 8.03 0.07 1.65 (0.04) -- -- Class B...................... 7.92 0.02 1.61 -- -- -- Class C...................... 7.92 0.02 1.61 -- -- -- Class Y...................... 8.10 0.13 1.64 (0.08) -- -- For the Year Ended October 31, 2002(g) Class A...................... 9.37 0.04 (1.38) -- -- -- Class B...................... 9.30 (0.02) (1.36) -- -- -- Class C...................... 9.30 (0.02) (1.36) -- -- -- Class Y...................... 9.41 0.08 (1.39) -- -- -- For the Year Ended October 31, 2001 Class A...................... 10.00 0.02 (0.65) -- -- -- Class B...................... 10.00 (0.03) (0.67) -- -- -- Class C...................... 10.00 (0.03) (0.67) -- -- -- Class Y...................... 10.00 0.07 (0.66) -- -- -- RATIOS AND SUPPLEMENTAL DATA ------------------------------------------------------------------------------------------ RATIO OF RATIO OF RATIO OF EXPENSES EXPENSES NET NET ASSET NET ASSETS TO AVERAGE TO AVERAGE INVESTMENT VALUE AT AT END OF NET ASSETS NET ASSETS INCOME PORTFOLIO END OF TOTAL PERIOD BEFORE AFTER TO AVERAGE TURNOVER PERIOD RETURN(C) (000'S) WAIVERS WAIVERS NET ASSETS RATE(E) --------- --------- ---------- ---------- ---------- ---------- --------- THE HARTFORD FOCUS FUND For the Year Ended October 31, 2003 Class A...................... $ 8.94 22.13% $ 70,002 1.76% 1.65% (0.29)% 138% Class B...................... 8.79 21.24 21,058 2.49 2.35 (1.00) -- Class C...................... 8.78 21.27 27,158 2.36 2.35 (0.99) -- Class Y...................... 9.04 22.66 719 1.17 1.17 0.17 -- For the Year Ended October 31, 2002(g) Class A...................... 7.32 (17.01) 66,432 1.76 1.65 (0.53) 215 Class B...................... 7.25 (17.52) 18,862 2.43 2.35 (1.23) -- Class C...................... 7.24 (17.63) 25,847 2.34 2.34 (1.22) -- Class Y...................... 7.37 (16.54) 509 1.14 1.14 0.09 -- From inception May 24, 2001, through October 31, 2001 Class A...................... 8.82 (11.80)(d) 66,970 1.68(b) 1.63(b) (0.18)(b) 109 Class B...................... 8.79 (12.10)(d) 18,524 2.35(b) 2.35(b) (0.89)(b) -- Class C...................... 8.79 (12.10)(d) 24,142 2.35(b) 2.35(b) (0.89)(b) -- Class Y...................... 8.83 (11.70)(d) 9 1.20(b) 1.20(b) 0.25(b) -- THE HARTFORD GLOBAL COMMUNICATIONS FUND For the Year Ended October 31, 2003 Class A...................... 4.67 44.14 6,419 1.95 1.65 (0.08) 100 Class B...................... 4.58 43.57 1,555 2.68 2.35 (0.79) -- Class C...................... 4.57 43.26 1,305 2.55 2.35 (0.77) -- Class Y...................... 4.74 45.40 724 1.35 1.20 0.38 -- For the Year Ended October 31, 2002(g) Class A...................... 3.24 (29.10) 3,506 2.03 1.65 (0.10) 84 Class B...................... 3.19 (29.74) 846 2.70 2.35 (0.80) -- Class C...................... 3.19 (29.74) 736 2.57 2.35 (0.78) -- Class Y...................... 3.26 (29.13) 481 1.27 1.20 0.40 -- For the Year Ended October 31, 2001 Class A...................... 4.57 (54.30) 4,050 1.73 1.66 (0.42) 84 Class B...................... 4.54 (54.60) 832 2.46 2.36 (1.12) -- Class C...................... 4.54 (54.60) 875 2.44 2.36 (1.12) -- Class Y...................... 4.60 (54.00) 460 1.20 1.20 0.03 -- THE HARTFORD GLOBAL FINANCIAL SERVICES FUND For the Year Ended October 31, 2003 Class A...................... 9.71 21.48 12,652 1.90 1.65 0.93 93 Class B...................... 9.55 20.58 3,681 2.62 2.35 0.22 -- Class C...................... 9.55 20.58 3,197 2.50 2.35 0.23 -- Class Y...................... 9.79 22.01 1,580 1.31 1.20 1.38 -- For the Year Ended October 31, 2002(g) Class A...................... 8.03 (14.30) 9,739 1.98 1.65 0.51 76 Class B...................... 7.92 (14.84) 2,755 2.68 2.35 (0.20) -- Class C...................... 7.92 (14.84) 2,548 2.54 2.35 (0.20) -- Class Y...................... 8.10 (13.92) 1,435 1.25 1.20 0.96 -- For the Year Ended October 31, 2001 Class A...................... 9.37 (6.30) 9,946 1.89 1.70 0.25 115 Class B...................... 9.30 (7.00) 2,052 2.61 2.40 (0.45) -- Class C...................... 9.30 (7.00) 2,053 2.60 2.40 (0.45) -- Class Y...................... 9.41 (5.90) 941 1.35 1.24 0.70 --
--------------- (a) Information presented relates to a share of capital share outstanding throughout the indicated period. (b) Annualized. (c) Assumes initial investment at net asset value at the beginning of each period, reinvestment of all distributions, the complete redemption of the investment at net asset value at the end of each period and no sales charge. Total return would be reduced if sales charges were taken into account. (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 have been restated to reflect a reverse stock split for Class C shares effective February 11, 1999. (g) Per share amounts have been calculated using average shares outstanding method. (h) Expense ratio includes a practical waiver of 12b-1 fees. See Notes to Financial Statements. 194 --------------------------------------------------------------------------------
SELECTED PER-SHARE DATA(A) ---------------------------------------------------------------------------------- NET REALIZED AND DISTRIBUTIONS NET ASSET NET UNREALIZED DIVIDENDS FROM VALUE AT INVESTMENT GAIN FROM NET REALIZED DISTRIBUTIONS BEGINNING INCOME (LOSS) ON INVESTMENT CAPITAL FROM OF PERIOD (LOSS) INVESTMENTS INCOME GAINS CAPITAL --------- ---------- ------------ ---------- ------------- ------------- THE HARTFORD GLOBAL HEALTH FUND For the Year Ended October 31, 2003 Class A...................... $11.42 $(0.07) $ 2.75 $ -- $(0.30) $ -- Class B...................... 11.20 (0.15) 2.68 -- (0.30) -- Class C...................... 11.21 (0.15) 2.68 -- (0.30) -- Class Y...................... 11.61 (0.02) 2.80 -- (0.30) -- For the Year Ended October 31, 2002(g) Class A...................... 13.47 (0.09) (1.68) -- (0.28) -- Class B...................... 13.31 (0.18) (1.65) -- (0.28) -- Class C...................... 13.32 (0.18) (1.65) -- (0.28) -- Class Y...................... 13.58 (0.02) (1.67) -- (0.28) -- For the Year Ended October 31, 2001 Class A...................... 13.86 (0.06) 0.23 -- (0.56) -- Class B...................... 13.81 (0.12) 0.18 -- (0.56) -- Class C...................... 13.81 (0.13) 0.20 -- (0.56) -- Class Y...................... 13.89 (0.01) 0.26 -- (0.56) -- From inception May 1, 2000, through October 31, 2000 Class A...................... 10.00 (0.01) 3.87 -- -- -- Class B...................... 10.00 (0.04) 3.85 -- -- -- Class C...................... 10.00 (0.04) 3.85 -- -- -- Class Y...................... 10.00 0.01 3.88 -- -- -- RATIOS AND SUPPLEMENTAL DATA ------------------------------------------------------------------------------------------ RATIO OF RATIO OF RATIO OF EXPENSES EXPENSES NET NET ASSET NET ASSETS TO AVERAGE TO AVERAGE INVESTMENT VALUE AT AT END OF NET ASSETS NET ASSETS INCOME PORTFOLIO END OF TOTAL PERIOD BEFORE AFTER TO AVERAGE TURNOVER PERIOD RETURN(C) (000'S) WAIVERS WAIVERS NET ASSETS RATE(E) --------- --------- ---------- ---------- ---------- ---------- --------- THE HARTFORD GLOBAL HEALTH FUND For the Year Ended October 31, 2003 Class A...................... $13.80 24.02% $ 126,630 1.76% 1.65% (0.62)% 37% Class B...................... 13.43 23.13 56,378 2.49 2.35 (1.31) -- Class C...................... 13.44 23.11 51,606 2.36 2.35 (1.31) -- Class Y...................... 14.09 24.50 1,095 1.19 1.19 (0.15) -- For the Year Ended October 31, 2002(g) Class A...................... 11.42 (13.43) 101,881 1.79 1.65 (0.70) 63 Class B...................... 11.20 (14.05) 45,659 2.48 2.35 (1.40) -- Class C...................... 11.21 (14.08) 43,042 2.35 2.35 (1.40) -- Class Y...................... 11.61 (12.68) 881 1.17 1.17 (0.22) -- For the Year Ended October 31, 2001 Class A...................... 13.47 1.18 98,971 1.67 1.62 (0.61) 58 Class B...................... 13.31 0.36 42,578 2.36 2.35 (1.33) -- Class C...................... 13.32 0.43 44,306 2.33 2.33 (1.31) -- Class Y...................... 13.58 1.78 4,340 1.12 1.12 (0.11) -- From inception May 1, 2000, through October 31, 2000 Class A...................... 13.86 38.74(d) 44,917 1.72(b) 1.65(b) (0.33)(b) 92 Class B...................... 13.81 38.24(d) 20,574 2.43(b) 2.35(b) (1.03)(b) -- Class C...................... 13.81 38.24(d) 26,830 2.40(b) 2.35(b) (1.03)(b) -- Class Y...................... 13.89 39.04(d) 2,507 1.20(b) 1.20(b) 0.12(b) --
--------------- (a) Information presented relates to a share of capital share outstanding throughout the indicated period. (b) Annualized. (c) Assumes initial investment at net asset value at the beginning of each period, reinvestment of all distributions, the complete redemption of the investment at net asset value at the end of each period and no sales charge. Total return would be reduced if sales charges were taken into account. (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 have been restated to reflect a reverse stock split for Class C shares effective February 11, 1999. (g) Per share amounts have been calculated using average shares outstanding method. (h) Expense ratio includes a practical waiver of 12b-1 fees. 195 HARTFORD MUTUAL FUNDS, INC. AND HARTFORD MUTUAL FUNDS II, INC. FINANCIAL HIGHLIGHTS -- (CONTINUED) --------------------------------------------------------------------------------
SELECTED PER-SHARE DATA(A) ---------------------------------------------------------------------------------- NET REALIZED AND DISTRIBUTIONS NET ASSET NET UNREALIZED DIVIDENDS FROM VALUE AT INVESTMENT GAIN FROM NET REALIZED DISTRIBUTIONS BEGINNING INCOME (LOSS) ON INVESTMENT CAPITAL FROM OF PERIOD (LOSS) INVESTMENTS INCOME GAINS CAPITAL --------- ---------- ------------ ---------- ------------- ------------- THE HARTFORD GLOBAL LEADERS FUND For the Year Ended October 31, 2003 Class A...................... $11.21 $(0.03) $ 2.78 $ -- $ -- $ -- Class B...................... 10.88 (0.12) 2.69 -- -- -- Class C...................... 10.90 (0.11) 2.70 -- -- -- Class Y...................... 11.45 0.03 2.86 -- -- -- For the Year Ended October 31, 2002(g) Class A...................... 12.83 0.02 (1.64) -- -- -- Class B...................... 12.54 (0.07) (1.59) -- -- -- Class C...................... 12.55 (0.06) (1.59) -- -- -- Class Y...................... 13.03 0.05 (1.63) -- -- -- For the Year Ended October 31, 2001 Class A...................... 17.55 0.01 (4.54) (0.18) (0.01) Class B...................... 17.29 (0.08) (4.48) -- (0.18) (0.01) Class C...................... 17.30 (0.10) (4.46) -- (0.18) (0.01) Class Y...................... 17.73 0.08 (4.59) -- (0.18) (0.01) For the Ten Months Ended October 31, 2000 Class A...................... 18.56 -- (0.92) -- (0.09) -- Class B...................... 18.40 (0.06) (0.96) -- (0.09) -- Class C...................... 18.40 (0.06) (0.95) -- (0.09) -- Class Y...................... 18.68 0.03 (0.89) -- (0.09) -- For the Year Ended December 31, 1999 Class A...................... 12.67 -- 6.01 -- (0.12) -- Class B...................... 12.65 (0.02) 5.89 -- (0.12) -- Class C...................... 12.65 (0.02) 5.89 -- (0.12) -- Class Y...................... 12.69 0.03 6.08 -- (0.12) -- From inception September 30, 1998, through December 31, 1998 Class A...................... 10.00 (0.01) 3.03 -- (0.35) -- Class B...................... 10.00 (0.02) 3.02 -- (0.35) -- Class C...................... 10.00 (0.02) 3.02 -- (0.35) -- Class Y...................... 10.00 0.01 3.03 -- (0.35) -- THE HARTFORD GLOBAL TECHNOLOGY FUND For the Year Ended October 31, 2003 Class A...................... 2.98 (0.04) 1.74 -- -- -- Class B...................... 2.92 (0.06) 1.70 -- -- -- Class C...................... 2.92 (0.06) 1.70 -- -- -- Class Y...................... 3.01 (0.03) 1.77 -- -- -- For the Year Ended October 31, 2002(g) Class A...................... 4.01 (0.12) (0.91) -- -- -- Class B...................... 3.96 (0.18) (0.86) -- -- -- Class C...................... 3.97 (0.19) (0.86) -- -- -- Class Y...................... 4.04 (0.14) (0.89) -- -- -- For the Year Ended October 31, 2001 Class A...................... 8.72 (0.08) (4.55) -- (0.08) -- Class B...................... 8.68 (0.11) (4.53) -- (0.08) -- Class C...................... 8.68 (0.11) (4.52) -- (0.08) -- Class Y...................... 8.73 (0.04) (4.57) -- (0.08) -- From inception May 1, 2000, through October 31, 2000 Class A...................... 10.00 (0.05) (1.23) -- -- -- Class B...................... 10.00 (0.07) (1.25) -- -- -- Class C...................... 10.00 (0.06) (1.26) -- -- -- Class Y...................... 10.00 (0.02) (1.25) -- -- -- RATIOS AND SUPPLEMENTAL DATA ------------------------------------------------------------------------------------------ RATIO OF RATIO OF RATIO OF EXPENSES EXPENSES NET NET ASSET NET ASSETS TO AVERAGE TO AVERAGE INVESTMENT VALUE AT AT END OF NET ASSETS NET ASSETS INCOME PORTFOLIO END OF TOTAL PERIOD BEFORE AFTER TO AVERAGE TURNOVER PERIOD RETURN(C) (000'S) WAIVERS WAIVERS NET ASSETS RATE(E) --------- --------- ---------- ---------- ---------- ---------- --------- THE HARTFORD GLOBAL LEADERS FUND For the Year Ended October 31, 2003 Class A...................... $13.96 24.53% $ 464,610 1.62% 1.61% (0.29)% 320% Class B...................... 13.45 23.62 78,923 2.36 2.35 (1.01) -- Class C...................... 13.49 23.76 78,303 2.23 2.23 (0.89) -- Class Y...................... 14.34 25.24 19,043 1.00 1.00 0.28 -- For the Year Ended October 31, 2002(g) Class A...................... 11.21 (12.63) 354,407 1.66 1.61 0.24 323 Class B...................... 10.88 (13.24) 70,280 2.33 2.33 (0.48) -- Class C...................... 10.90 (13.15) 75,174 2.21 2.21 (0.36) -- Class Y...................... 11.45 (12.13) 6,167 1.00 1.00 0.84 -- For the Year Ended October 31, 2001 Class A...................... 12.83 (26.07) 247,094 1.53 1.48 0.08 382 Class B...................... 12.54 (26.64) 62,973 2.23 2.23 (0.66) -- Class C...................... 12.55 (26.62) 103,574 2.19 2.19 (0.63) -- Class Y...................... 13.03 (25.68) 7,908 0.98 0.98 0.58 -- For the Ten Months Ended October 31, 2000 Class A...................... 17.55 (4.98)(d) 255,959 1.53(b) 1.48(b) (0.06)(b) 290 Class B...................... 17.29 (5.56)(d) 75,702 2.22(b) 2.22(b) (0.80)(b) -- Class C...................... 17.30 (5.51)(d) 142,549 2.19(b) 2.19(b) (0.77)(b) -- Class Y...................... 17.73 (4.62)(d) 10,001 1.01(b) 1.01(b) 0.41(b) -- For the Year Ended December 31, 1999 Class A...................... 18.56 47.68 84,632 1.62 1.57 (0.15) 204 Class B...................... 18.40 46.64 24,588 2.29 2.29 (0.86) -- Class C...................... 18.40 46.64 43,012 2.33 2.33 (0.89) -- Class Y...................... 18.68 48.39 4,423 1.10 1.10 0.32 -- From inception September 30, 1998, through December 31, 1998 Class A...................... 12.67 30.36(d) 3,771 2.71(b) 1.65(b) (0.19)(b) 49 Class B...................... 12.65 30.16(d) 486 3.55(b) 2.35(b) (0.92)(b) -- Class C...................... 12.65 30.16(d) 517 3.57(b) 2.35(b) (0.90)(b) -- Class Y...................... 12.69 30.57(d) 392 2.46(b) 1.20(b) 0.31(b) -- THE HARTFORD GLOBAL TECHNOLOGY FUND For the Year Ended October 31, 2003 Class A...................... 4.68 57.05 32,388 1.77 1.65 (1.28) 163 Class B...................... 4.56 56.16 13,991 2.50 2.35 (1.98) -- Class C...................... 4.56 56.16 16,513 2.37 2.35 (1.99) -- Class Y...................... 4.75 57.81 886 1.18 1.18 (0.82) -- For the Year Ended October 31, 2002(g) Class A...................... 2.98 (25.69) 18,321 1.86 1.65 (1.44) 174 Class B...................... 2.92 (26.26) 8,170 2.54 2.35 (2.14) -- Class C...................... 2.92 (26.45) 9,560 2.39 2.35 (2.15) -- Class Y...................... 3.01 (25.50) 512 1.15 1.15 (0.97) -- For the Year Ended October 31, 2001 Class A...................... 4.01 (53.56) 24,824 1.71 1.66 (1.24) 253 Class B...................... 3.96 (53.93) 10,962 2.43 2.36 (1.94) -- Class C...................... 3.97 (53.81) 15,581 2.37 2.36 (1.94) -- Class Y...................... 4.04 (53.27) 4,602 1.13 1.13 (0.71) -- From inception May 1, 2000, through October 31, 2000 Class A...................... 8.72 (14.26)(d) 33,221 1.77(b) 1.66(b) (1.37)(b) 104 Class B...................... 8.68 (14.65)(d) 15,676 2.46(b) 2.35(b) (2.07)(b) -- Class C...................... 8.68 (14.65)(d) 21,615 2.43(b) 2.35(b) (2.07)(b) -- Class Y...................... 8.73 (14.16)(d) 4,677 1.32(b) 1.20(b) (0.92)(b) --
--------------- (a) Information presented relates to a share of capital share outstanding throughout the indicated period. (b) Annualized. (c) Assumes initial investment at net asset value at the beginning of each period, reinvestment of all distributions, the complete redemption of the investment at net asset value at the end of each period and no sales charge. Total return would be reduced if sales charges were taken into account. (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 have been restated to reflect a reverse stock split for Class C shares effective February 11, 1999. (g) Per share amounts have been calculated using average shares outstanding method. (h) Expense ratio includes a practical waiver of 12b-1 fees. See Notes to Financial Statements. 196 --------------------------------------------------------------------------------
SELECTED PER-SHARE DATA(A) ---------------------------------------------------------------------------------- NET REALIZED AND DISTRIBUTIONS NET ASSET NET UNREALIZED DIVIDENDS FROM VALUE AT INVESTMENT GAIN FROM NET REALIZED DISTRIBUTIONS BEGINNING INCOME (LOSS) ON INVESTMENT CAPITAL FROM OF PERIOD (LOSS) INVESTMENTS INCOME GAINS CAPITAL --------- ---------- ------------ ---------- ------------- ------------- THE HARTFORD GROWTH FUND For the Year Ended October 31, 2003 Class A...................... $11.90 $(0.03) $ 3.32 $ -- $ -- $ -- Class B...................... 10.80 (0.07) 2.97 -- -- -- Class C...................... 10.80 (0.07) 2.97 -- -- -- Class H...................... 10.81 (0.14) 3.07 -- -- -- Class L...................... 11.91 (0.05) 3.40 -- -- -- Class M...................... 10.80 (0.14) 3.06 -- -- -- Class N...................... 10.80 (0.14) 3.06 -- -- -- Class Y...................... 11.94 (0.03) 3.40 -- -- -- For the Period February 19, 2002 through October 31, 2002 Class A...................... 14.57 (0.02) (2.65) -- -- -- Class B...................... 13.28 (0.04) (2.44) -- -- -- Class C...................... 13.28 (0.04) (2.44) -- -- -- Class Y...................... 14.57 -- (2.63) -- -- -- For the Year Ended October 31, 2002 Class H...................... 13.02 (0.23) (1.98) -- -- -- Class L...................... 14.23 (0.03) (2.29) -- -- -- Class M...................... 13.00 (0.16) (2.04) -- -- -- Class N...................... 13.00 (0.26) (1.94) -- -- -- For the Two-Month Period Ended October 31, 2001 Class H...................... 13.83 (0.03) (0.78) -- -- -- Class L...................... 15.09 (0.01) (0.85) -- -- -- Class M...................... 13.81 (0.03) (0.78) -- -- -- Class N...................... 13.81 (0.03) (0.78) -- -- -- For the Year Ended August 31, 2001 Class H...................... 22.30 (0.21) (4.94) -- (3.32) -- Class L...................... 23.85 (0.05) (5.39) -- (3.32) -- Class M...................... 22.27 (0.21) (4.93) -- (3.32) -- Class N...................... 22.27 (0.21) (4.93) -- (3.32) -- For the Year Ended August 31, 2000 Class H...................... 21.78 (0.62) 6.49 -- (5.35) -- Class L...................... 22.81 (0.08) 6.47 -- (5.35) -- Class M...................... 21.77 (0.62) 6.47 -- (5.35) -- Class N...................... 21.76 (0.62) 6.48 -- (5.35) -- For the Year Ended August 31, 1999 Class H...................... 21.74 (0.43) 6.73 -- (6.26) -- Class L...................... 22.37 (0.03) 6.73 -- (6.26) -- Class M...................... 21.73 (0.43) 6.73 -- (6.26) -- Class N...................... 21.73 (0.44) 6.73 -- (6.26) -- RATIOS AND SUPPLEMENTAL DATA ------------------------------------------------------------------------------------------ RATIO OF RATIO OF RATIO OF EXPENSES EXPENSES NET NET ASSET NET ASSETS TO AVERAGE TO AVERAGE INVESTMENT VALUE AT AT END OF NET ASSETS NET ASSETS INCOME PORTFOLIO END OF TOTAL PERIOD BEFORE AFTER TO AVERAGE TURNOVER PERIOD RETURN(C) (000'S) WAIVERS WAIVERS NET ASSETS RATE(E) --------- --------- ---------- ---------- ---------- ---------- --------- THE HARTFORD GROWTH FUND For the Year Ended October 31, 2003 Class A...................... $15.19 27.65% $ 72,186 1.52% 1.45% (0.65)% 129% Class B...................... 13.70 26.85 11,552 2.26 2.12 (1.35) -- Class C...................... 13.70 26.85 11,896 2.15 2.15 (1.36) -- Class H...................... 13.74 27.10 27,032 1.90 1.90 (1.09) -- Class L...................... 15.26 28.13 316,451 1.15 1.15 (0.34) -- Class M...................... 13.72 27.04 23,523 1.90 1.90 (1.09) -- Class N...................... 13.72 27.04 4,499 1.90 1.90 (1.09) -- Class Y...................... 15.31 28.22 1 0.96 0.96 (0.17) -- For the Period February 19, 2002 through October 31, 2002 Class A...................... 11.90 (18.33)(d) 5,970 1.65(b) 1.45(b) (0.44)(b) 107 Class B...................... 10.80 (18.67)(d) 1,698 2.32(b) 2.15(b) (1.10)(b) -- Class C...................... 10.80 (18.68)(d) 1,480 2.18(b) 2.15(b) (1.13)(b) -- Class Y...................... 11.94 (18.05)(d) 1 0.90(b) 0.90(b) (0.01)(b) -- For the Year Ended October 31, 2002 Class H...................... 10.81 (16.95) 26,002 1.89 1.89 (1.03) 107 Class L...................... 11.91 (16.28) 274,683 1.14 1.14 (0.28) -- Class M...................... 10.80 (16.90) 21,478 1.89 1.89 (1.03) -- Class N...................... 10.80 (16.90) 4,340 1.89 1.89 (1.03) -- For the Two-Month Period Ended October 31, 2001 Class H...................... 13.02 (5.86)(d) 37,750 1.86(b) 1.86(b) (1.09)(b) 13 Class L...................... 14.23 (5.70)(d) 385,620 1.11(b) 1.11(b) (0.34)(b) -- Class M...................... 13.00 (5.87)(d) 28,112 1.86(b) 1.86(b) (1.09)(b) -- Class N...................... 13.00 (5.87)(d) 6,911 1.86(b) 1.86(b) (1.09)(b) -- For the Year Ended August 31, 2001 Class H...................... 13.83 (25.59) 40,645 1.83 1.83 (0.91) 161 Class L...................... 15.09 (25.08) 416,544 1.08 1.08 (0.16) -- Class M...................... 13.81 (25.58) 29,777 1.83 1.83 (0.91) -- Class N...................... 13.81 (25.58) 7,557 1.83 1.83 (0.91) -- For the Year Ended August 31, 2000 Class H...................... 22.30 31.68 56,771 1.82 1.82 (1.04) 165 Class L...................... 23.85 32.70 615,473 1.07 1.07 (0.29) -- Class M...................... 22.27 31.59 38,264 1.82 1.82 (1.04) -- Class N...................... 22.27 31.66 10,932 1.82 1.82 (1.04) -- For the Year Ended August 31, 1999 Class H...................... 21.78 36.91 40,760 1.85 1.85 (0.83) 177 Class L...................... 22.81 37.88 551,551 1.10 1.10 (0.08) -- Class M...................... 21.77 36.94 24,847 1.85 1.85 (0.83) -- Class N...................... 21.76 36.87 5,715 1.85 1.85 (0.83) --
--------------- (a) Information presented relates to a share of capital share outstanding throughout the indicated period. (b) Annualized. (c) Assumes initial investment at net asset value at the beginning of each period, reinvestment of all distributions, the complete redemption of the investment at net asset value at the end of each period and no sales charge. Total return would be reduced if sales charges were taken into account. (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 have been restated to reflect a reverse stock split for Class C shares effective February 11, 1999. (g) Per share amounts have been calculated using average shares outstanding method. (h) Expense ratio includes a practical waiver of 12b-1 fees. 197 HARTFORD MUTUAL FUNDS, INC. AND HARTFORD MUTUAL FUNDS II, INC. FINANCIAL HIGHLIGHTS -- (CONTINUED) --------------------------------------------------------------------------------
SELECTED PER-SHARE DATA(A) ---------------------------------------------------------------------------------- NET REALIZED AND DISTRIBUTIONS NET ASSET NET UNREALIZED DIVIDENDS FROM VALUE AT INVESTMENT GAIN FROM NET REALIZED DISTRIBUTIONS BEGINNING INCOME (LOSS) ON INVESTMENT CAPITAL FROM OF PERIOD (LOSS) INVESTMENTS INCOME GAINS CAPITAL --------- ---------- ------------ ---------- ------------- ------------- THE HARTFORD GROWTH OPPORTUNITIES FUND For the Year Ended October 31, 2003 Class A...................... $15.31 $(0.07) $ 6.01 $ -- $ -- $ -- Class B...................... 13.71 (0.12) 5.32 -- -- -- Class C...................... 13.70 (0.09) 5.30 -- -- -- Class H...................... 13.73 (0.22) 5.48 -- -- -- Class L...................... 15.33 (0.10) 6.13 -- -- -- Class M...................... 13.71 (0.22) 5.48 -- -- -- Class N...................... 13.71 (0.22) 5.48 -- -- -- Class Y...................... 15.35 (0.07) 6.14 -- -- -- Class Z...................... 15.87 (0.06) 6.36 -- -- -- For the Period February 19, 2002 through October 31, 2002 Class A...................... 19.80 (0.06) (4.43) -- -- -- Class B...................... 17.80 (0.10) (3.99) -- -- -- Class C...................... 17.80 (0.09) (4.01) -- -- -- Class Y...................... 19.80 (0.06) (4.39) -- -- -- For the Year Ended October 31, 2002 Class H...................... 17.36 (0.32) (3.10) -- (0.21) -- Class L...................... 19.21 (0.13) (3.54) -- (0.21) -- Class M...................... 17.33 (0.28) (3.13) -- (0.21) -- Class N...................... 17.34 (0.34) (3.08) -- (0.21) -- Class Z...................... 19.77 0.72 (4.41) -- (0.21) -- For the Two-Month Period Ended October 31, 2001 Class H...................... 19.55 (0.11) (2.08) -- -- -- Class L...................... 21.62 (0.11) (2.30) -- -- -- Class M...................... 19.53 (0.12) (2.08) -- -- -- Class N...................... 19.53 (0.11) (2.08) -- -- -- Class Z...................... 22.24 (0.10) (2.37) -- -- -- For the Year Ended August 31, 2001 Class H...................... 42.35 (0.70) (13.55) -- (8.55) -- Class L...................... 45.45 (0.30) (14.98) -- (8.55) -- Class M...................... 42.31 (0.70) (13.53) -- (8.55) -- Class N...................... 42.32 (0.71) (13.53) -- (8.55) -- Class Z...................... 46.35 (0.15) (15.41) -- (8.55) -- For the Year Ended August 31, 2000 Class H...................... 29.28 (0.30) 20.22 -- (6.85) -- Class L...................... 30.80 (0.20) 21.70 -- (6.85) -- Class M...................... 29.26 (0.30) 20.20 -- (6.85) -- Class N...................... 29.26 (0.30) 20.21 -- (6.85) -- Class Z...................... 31.23 (0.16) 22.13 -- (6.85) -- For the Year Ended August 31, 1999 Class H...................... 28.86 (0.73) 10.72 -- (9.57) -- Class L...................... 29.78 (0.13) 10.72 -- (9.57) -- Class M...................... 28.85 (0.74) 10.72 -- (9.57) -- Class N...................... 28.85 (0.74) 10.72 -- (9.57) -- Class Z...................... 30.00 (0.06) 10.86 -- (9.57) -- RATIOS AND SUPPLEMENTAL DATA ------------------------------------------------------------------------------------------ RATIO OF RATIO OF RATIO OF EXPENSES EXPENSES NET NET ASSET NET ASSETS TO AVERAGE TO AVERAGE INVESTMENT VALUE AT AT END OF NET ASSETS NET ASSETS INCOME PORTFOLIO END OF TOTAL PERIOD BEFORE AFTER TO AVERAGE TURNOVER PERIOD RETURN(C) (000'S) WAIVERS WAIVERS NET ASSETS RATE(E) --------- --------- ---------- ---------- ---------- ---------- --------- THE HARTFORD GROWTH OPPORTUNITIES FUND For the Year Ended October 31, 2003 Class A...................... $21.25 38.80% $ 17,149 1.49% 1.45% (0.88)% 158% Class B...................... 18.91 37.93 4,470 2.22 2.15 (1.58) -- Class C...................... 18.91 38.03 5,238 2.10 2.10 (1.54) -- Class H...................... 18.99 38.31 45,121 1.85 1.85 (1.31) -- Class L...................... 21.36 39.34 517,892 1.10 1.10 (0.56) -- Class M...................... 18.97 38.36 24,361 1.85 1.85 (1.31) -- Class N...................... 18.97 38.36 4,773 1.85 1.85 (1.31) -- Class Y...................... 21.42 39.54 1 0.91 0.91 (0.38) -- Class Z...................... 22.17 39.70 32,485 0.85 0.85 (0.31) -- For the Period February 19, 2002 through October 31, 2002 Class A...................... 15.31 (22.68)(d) 3,338 1.62(b) 1.45(b) (0.92)(b) 182 Class B...................... 13.71 (22.99)(d) 777 2.30(b) 2.15(b) (1.60)(b) -- Class C...................... 13.70 (23.05)(d) 892 2.09(b) 2.09(b) (1.56)(b) -- Class Y...................... 15.35 (22.47)(d) 1 0.89(b) 0.89(b) (0.44)(b) -- For the Year Ended October 31, 2002 Class H...................... 13.73 (19.99) 39,151 1.85 1.85 (1.42) 182 Class L...................... 15.33 (19.36) 412,454 1.10 1.10 (0.67) -- Class M...................... 13.71 (19.97) 20,163 1.85 1.85 (1.42) -- Class N...................... 13.71 (20.01) 4,172 1.85 1.85 (1.42) -- Class Z...................... 15.87 (18.90) 26,842 0.84 0.84 (0.43) -- For the Two-Month Period Ended October 31, 2001 Class H...................... 17.36 (11.20)(d) 54,539 1.83(b) 1.83(b) (1.27)(b) 28 Class L...................... 19.21 (11.15)(d) 593,267 1.08(b) 1.08(b) (0.52)(b) -- Class M...................... 17.33 (11.26)(d) 27,013 1.83(b) 1.83(b) (1.27)(b) -- Class N...................... 17.34 (11.21)(d) 6,131 1.83(b) 1.83(b) (1.27)(b) -- Class Z...................... 19.77 (11.11)(d) 94,961 0.83(b) 0.83(b) (0.27)(b) -- For the Year Ended August 31, 2001 Class H...................... 19.55 (38.91) 61,764 1.79 1.79 (1.15) 198 Class L...................... 21.62 (38.44) 681,941 1.04 1.04 (0.40) -- Class M...................... 19.53 (38.90) 30,268 1.79 1.79 (1.15) -- Class N...................... 19.53 (38.92) 6,866 1.79 1.79 (1.15) -- Class Z...................... 22.24 (38.26) 110,221 0.79 0.79 (0.15) -- For the Year Ended August 31, 2000 Class H...................... 42.35 80.72 97,410 1.79 1.79 (1.29) 140 Class L...................... 45.45 82.06 1,203,376 1.04 1.04 (0.54) -- Class M...................... 42.31 80.70 43,250 1.79 1.79 (1.29) -- Class N...................... 42.32 80.74 10,352 1.79 1.79 (1.29) -- Class Z...................... 46.35 82.51 231,410 0.79 0.79 (0.29) -- For the Year Ended August 31, 1999 Class H...................... 29.28 39.00 50,547 1.81 1.81 (1.19) 166 Class L...................... 30.80 40.00 734,282 1.06 1.06 (0.44) -- Class M...................... 29.26 38.98 20,236 1.81 1.81 (1.19) -- Class N...................... 29.26 38.98 4,629 1.81 1.81 (1.19) -- Class Z...................... 31.23 40.49 119,548 0.81 0.81 (0.19) --
--------------- (a) Information presented relates to a share of capital share outstanding throughout the indicated period. (b) Annualized. (c) Assumes initial investment at net asset value at the beginning of each period, reinvestment of all distributions, the complete redemption of the investment at net asset value at the end of each period and no sales charge. Total return would be reduced if sales charges were taken into account. (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 have been restated to reflect a reverse stock split for Class C shares effective February 11, 1999. (g) Per share amounts have been calculated using average shares outstanding method. (h) Expense ratio includes a practical waiver of 12b-1 fees. See Notes to Financial Statements. 198 --------------------------------------------------------------------------------
SELECTED PER-SHARE DATA(A) ---------------------------------------------------------------------------------- NET REALIZED AND DISTRIBUTIONS NET ASSET NET UNREALIZED DIVIDENDS FROM VALUE AT INVESTMENT GAIN FROM NET REALIZED DISTRIBUTIONS BEGINNING INCOME (LOSS) ON INVESTMENT CAPITAL FROM OF PERIOD (LOSS) INVESTMENTS INCOME GAINS CAPITAL --------- ---------- ------------ ---------- ------------- ------------- THE HARTFORD HIGH YIELD FUND For the Year Ended October 31, 2003(g) Class A...................... $ 6.73 $ 0.60 $ 1.26 $(0.65) $ -- $ -- Class B...................... 6.72 0.57 1.24 (0.60) -- -- Class C...................... 6.72 0.55 1.26 (0.60) -- -- Class Y...................... 6.73 0.65 1.24 (0.68) -- -- For the Year Ended October 31, 2002(g) Class A...................... 8.45 0.82 (1.78) (0.76) -- -- Class B...................... 8.43 0.80 (1.81) (0.70) -- -- Class C...................... 8.43 0.72 (1.73) (0.70) -- -- Class Y...................... 8.48 0.34 (1.30) (0.79) -- -- For the Year Ended October 31, 2001 Class A...................... 9.06 0.78 (0.61) (0.78) -- -- Class B...................... 9.05 0.72 (0.62) (0.72) -- -- Class C...................... 9.05 0.72 (0.62) (0.72) -- -- Class Y...................... 9.10 0.83 (0.63) (0.82) -- -- For the Ten Months Ended October 31, 2000 Class A...................... 9.75 0.66 (0.69) (0.66) -- -- Class B...................... 9.74 0.62 (0.71) (0.60) -- -- Class C...................... 9.74 0.61 (0.70) (0.60) -- -- Class Y...................... 9.78 0.69 (0.69) (0.68) -- -- For the Year Ended December 31, 1999 Class A...................... 10.15 0.75 (0.40) (0.75) -- -- Class B...................... 10.14 0.68 (0.40) (0.68) -- -- Class C...................... 10.14 0.68 (0.40) (0.68) -- -- Class Y...................... 10.16 0.78 (0.39) (0.77) -- -- From inception September 30, 1998, through December 31, 1998 Class A...................... 10.00 0.19 0.13 (0.17) -- -- Class B...................... 10.00 0.16 0.14 (0.16) -- -- Class C...................... 10.00 0.16 0.14 (0.16) -- -- Class Y...................... 10.00 0.21 0.13 (0.18) -- -- THE HARTFORD INCOME FUND From inception October 31, 2002, through October 31, 2003 Class A...................... 10.00 0.52 0.54 (0.53) -- -- Class B...................... 10.00 0.44 0.54 (0.45) -- -- Class C...................... 10.00 0.44 0.56 (0.45) -- -- THE HARTFORD INFLATION PLUS FUND From inception October 31, 2002, through October 31, 2003 Class A...................... 10.00 0.27 0.62 (0.26) -- -- Class B...................... 10.00 0.21 0.63 (0.20) -- -- Class C...................... 10.00 0.20 0.63 (0.20) -- -- RATIOS AND SUPPLEMENTAL DATA ------------------------------------------------------------------------------------------ RATIO OF RATIO OF RATIO OF EXPENSES EXPENSES NET NET ASSET NET ASSETS TO AVERAGE TO AVERAGE INVESTMENT VALUE AT AT END OF NET ASSETS NET ASSETS INCOME PORTFOLIO END OF TOTAL PERIOD BEFORE AFTER TO AVERAGE TURNOVER PERIOD RETURN(C) (000'S) WAIVERS WAIVERS NET ASSETS RATE(E) --------- --------- ---------- ---------- ---------- ---------- --------- THE HARTFORD HIGH YIELD FUND For the Year Ended October 31, 2003(g) Class A...................... $ 7.94 28.69% $ 213,377 1.49% 1.40% 7.98% 54% Class B...................... 7.93 27.83 72,293 2.23 2.10 7.39 -- Class C...................... 7.93 27.84 77,968 2.10 2.10 7.31 -- Class Y...................... 7.94 29.27 1 1.69 0.95 8.70 -- For the Year Ended October 31, 2002(g) Class A...................... 6.73 (12.16) 95,760 1.55 1.40 9.48 22 Class B...................... 6.72 (12.70) 44,359 2.24 2.10 8.78 -- Class C...................... 6.72 (12.65) 40,611 2.10 2.10 8.78 -- Class Y...................... 6.73 (12.01) 1 0.84 0.84 10.04 -- For the Year Ended October 31, 2001 Class A...................... 8.45 1.80 45,753 1.40 1.35 9.00 63 Class B...................... 8.43 0.99 16,922 2.08 2.08 8.28 -- Class C...................... 8.43 1.01 27,605 2.08 2.08 8.28 -- Class Y...................... 8.48 2.15 4,223 0.88 0.88 9.48 -- For the Ten Months Ended October 31, 2000 Class A...................... 9.06 (0.35)(d) 23,214 1.38(b) 1.33(b) 8.55(b) 57 Class B...................... 9.05 (0.92)(d) 7,929 2.04(b) 2.04(b) 7.84(b) -- Class C...................... 9.05 (0.90)(d) 9,534 2.04(b) 2.04(b) 7.83(b) -- Class Y...................... 9.10 0.02(d) 2,955 0.89(b) 0.89(b) 8.99(b) -- For the Year Ended December 31, 1999 Class A...................... 9.75 3.47 17,465 1.41 1.36 7.74 53 Class B...................... 9.74 2.80 7,436 2.08 2.08 7.03 -- Class C...................... 9.74 2.81 8,573 2.09 2.09 7.01 -- Class Y...................... 9.78 3.98 2,314 0.90 0.90 8.20 -- From inception September 30, 1998, through December 31, 1998 Class A...................... 10.15 3.33(d) 8,507 1.58(b) 1.40(b) 7.06(b) 11 Class B...................... 10.14 3.09(d) 2,322 2.31(b) 2.10(b) 6.50(b) -- Class C...................... 10.14 3.08(d) 2,278 2.31(b) 2.10(b) 6.49(b) -- Class Y...................... 10.16 3.51(d) 1,034 1.17(b) 0.95(b) 7.48(b) -- THE HARTFORD INCOME FUND From inception October 31, 2002, through October 31, 2003 Class A...................... 10.53 10.79 15,836 1.54(b) 1.00(b) 5.06(b) 124 Class B...................... 10.53 10.01 4,705 2.31(b) 1.70(b) 4.31(b) -- Class C...................... 10.55 10.22 5,050 2.17(b) 1.70(b) 4.28(b) -- THE HARTFORD INFLATION PLUS FUND From inception October 31, 2002, through October 31, 2003 Class A...................... 10.63 9.02 142,992 1.34(b) 1.00(b) 2.63(b) 23 Class B...................... 10.64 8.41 67,986 2.09(b) 1.70(b) 1.98(b) -- Class C...................... 10.63 8.31 160,253 1.95(b) 1.70(b) 1.97(b) --
--------------- (a) Information presented relates to a share of capital share outstanding throughout the indicated period. (b) Annualized. (c) Assumes initial investment at net asset value at the beginning of each period, reinvestment of all distributions, the complete redemption of the investment at net asset value at the end of each period and no sales charge. Total return would be reduced if sales charges were taken into account. (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 have been restated to reflect a reverse stock split for Class C shares effective February 11, 1999. (g) Per share amounts have been calculated using average shares outstanding method. (h) Expense ratio includes a practical waiver of 12b-1 fees. 199 HARTFORD MUTUAL FUNDS, INC. AND HARTFORD MUTUAL FUNDS II, INC. FINANCIAL HIGHLIGHTS -- (CONTINUED) --------------------------------------------------------------------------------
SELECTED PER-SHARE DATA(A) ---------------------------------------------------------------------------------- NET REALIZED AND DISTRIBUTIONS NET ASSET NET UNREALIZED DIVIDENDS FROM VALUE AT INVESTMENT GAIN FROM NET REALIZED DISTRIBUTIONS BEGINNING INCOME (LOSS) ON INVESTMENT CAPITAL FROM OF PERIOD (LOSS) INVESTMENTS INCOME GAINS CAPITAL --------- ---------- ------------ ---------- ------------- ------------- THE HARTFORD INTERNATIONAL CAPITAL APPRECIATION FUND For the Year Ended October 31, 2003 Class A...................... $ 6.93 $(0.02) $ 2.72 $(0.01) $ -- $ -- Class B...................... 6.86 (0.04) 2.64 -- -- -- Class C...................... 6.86 (0.04) 2.64 -- -- -- Class Y...................... 6.98 0.01 2.74 (0.04) -- -- For the Year Ended October 31, 2002(g) Class A...................... 7.62 0.02 (0.71) -- -- -- Class B...................... 7.59 (0.03) (0.70) -- -- -- Class C...................... 7.59 (0.03) (0.70) -- -- -- Class Y...................... 7.63 0.07 (0.72) -- -- -- From inception April 30, 2001, through October 31, 2001 Class A...................... 10.00 -- (2.38) -- -- -- Class B...................... 10.00 (0.03) (2.38) -- -- -- Class C...................... 10.00 (0.02) (2.39) -- -- -- Class Y...................... 10.00 0.02 (2.39) -- -- -- THE HARTFORD INTERNATIONAL OPPORTUNITIES FUND For the Year Ended October 31, 2003 Class A...................... 8.03 0.02 1.61 -- -- -- Class B...................... 7.71 (0.04) 1.55 -- -- -- Class C...................... 7.67 (0.04) 1.53 -- -- -- Class Y...................... 8.19 0.06 1.66 -- -- -- For the Year Ended October 31, 2002(g) Class A...................... 9.33 0.03 (1.33) -- -- -- Class B...................... 9.04 (0.08) (1.25) -- -- -- Class C...................... 8.99 (0.05) (1.27) -- -- -- Class Y...................... 9.49 0.02 (1.32) -- -- -- For the Year Ended October 31, 2001 Class A...................... 13.03 0.05 (3.14) -- (0.61) -- Class B...................... 12.74 (0.04) (3.05) -- (0.61) -- Class C...................... 12.68 (0.03) (3.05) -- (0.61) -- Class Y...................... 13.19 0.09 (3.18) -- (0.61) -- For the Ten Months Ended October 31, 2000 Class A...................... 15.43 0.08 (2.42) (0.01) (0.05) -- Class B...................... 15.17 0.01 (2.39) -- (0.05) -- Class C...................... 15.10 0.07 (2.44) -- (0.05) -- Class Y...................... 15.56 0.12 (2.43) (0.01) (0.05) -- For the Year Ended December 31, 1999 Class A...................... 11.89 0.06 4.46 (0.15) (0.83) -- Class B...................... 11.73 0.01 4.32 (0.06) (0.83) -- Class C...................... 11.74(f) (0.02)(f) 4.33(f) (0.12)(f) (0.83)(f) -- Class Y...................... 11.97 0.09 4.51 (0.18) (0.83) -- For the Year Ended December 31, 1998 Class A...................... 10.58 0.07 1.26 (0.02) -- -- Class B...................... 10.49 0.01 1.23 -- -- -- Class Y...................... 10.62 0.12 1.27 (0.04) -- -- From inception August 1, 1998, through December 31, 1998 Class C...................... 12.26(f) (0.01)(f) (0.48)(f) (0.03)(f) -- -- RATIOS AND SUPPLEMENTAL DATA ------------------------------------------------------------------------------------------ RATIO OF RATIO OF RATIO OF EXPENSES EXPENSES NET NET ASSET NET ASSETS TO AVERAGE TO AVERAGE INVESTMENT VALUE AT AT END OF NET ASSETS NET ASSETS INCOME PORTFOLIO END OF TOTAL PERIOD BEFORE AFTER TO AVERAGE TURNOVER PERIOD RETURN(C) (000'S) WAIVERS WAIVERS NET ASSETS RATE(E) --------- --------- ---------- ---------- ---------- ---------- --------- THE HARTFORD INTERNATIONAL CAPITAL APPRECIATION FUND For the Year Ended October 31, 2003 Class A...................... $ 9.62 38.95% $ 11,362 2.36% 1.65% (0.35)% 281% Class B...................... 9.46 37.90 2,148 3.08 2.35 (1.04) -- Class C...................... 9.46 37.90 2,285 2.95 2.35 (1.01) -- Class Y...................... 9.69 39.57 292 1.80 1.20 0.16 -- For the Year Ended October 31, 2002(g) Class A...................... 6.93 (9.06) 4,666 2.98 1.65 0.34 330 Class B...................... 6.86 (9.62) 813 3.69 2.35 (0.42) -- Class C...................... 6.86 (9.62) 826 3.55 2.35 (0.34) -- Class Y...................... 6.98 (8.52) 209 2.19 1.20 0.79 -- From inception April 30, 2001, through October 31, 2001 Class A...................... 7.62 (23.80)(d) 2,579 2.64(b) 1.65(b) (0.09)(b) 135 Class B...................... 7.59 (24.10)(d) 327 3.35(b) 2.35(b) (0.79)(b) -- Class C...................... 7.59 (24.10)(d) 316 3.32(b) 2.35(b) (0.79)(b) -- Class Y...................... 7.63 (23.70)(d) 229 2.10(b) 1.20(b) 0.36(b) -- THE HARTFORD INTERNATIONAL OPPORTUNITIES FUND For the Year Ended October 31, 2003 Class A...................... 9.66 20.30 69,153 1.72 1.65 0.25 138 Class B...................... 9.22 19.58 20,459 2.45 2.35 (0.46) -- Class C...................... 9.16 19.43 14,790 2.35 2.35 (0.45) -- Class Y...................... 9.91 21.00 6,058 1.13 1.13 0.77 -- For the Year Ended October 31, 2002(g) Class A...................... 8.03 (13.93) 66,775 1.82 1.65 0.34 175 Class B...................... 7.71 (14.71) 18,668 2.50 2.35 (0.79) -- Class C...................... 7.67 (14.68) 13,438 2.40 2.35 (0.64) -- Class Y...................... 8.19 (13.70) 4,543 1.13 1.13 0.31 -- For the Year Ended October 31, 2001 Class A...................... 9.33 (24.87) 72,326 1.61 1.56 0.47 158 Class B...................... 9.04 (25.46) 18,798 2.30 2.30 (0.28) -- Class C...................... 8.99 (25.51) 18,523 2.28 2.28 (0.25) -- Class Y...................... 9.49 (24.56) 17,092 1.06 1.06 0.97 -- For the Ten Months Ended October 31, 2000 Class A...................... 13.03 (15.18)(d) 89,309 1.60(b) 1.55(b) 0.64(b) 121 Class B...................... 12.74 (15.70)(d) 25,872 2.29(b) 2.29(b) (0.09)(b) -- Class C...................... 12.68 (15.70)(d) 26,912 2.27(b) 2.27(b) (0.07)(b) -- Class Y...................... 13.19 (14.91)(d) 22,454 1.06(b) 1.06(b) 1.13(b) -- For the Year Ended December 31, 1999 Class A...................... 15.43 39.13 63,281 1.61 1.56 0.61 128 Class B...................... 15.17 38.11 22,835 2.26 2.26 (0.09) -- Class C...................... 15.10(f) 37.98 13,514 2.31 2.31 (0.13) -- Class Y...................... 15.56 39.63 25,403 1.11 1.11 1.07 -- For the Year Ended December 31, 1998 Class A...................... 11.89 12.53 32,014 1.89 1.65 0.69 149 Class B...................... 11.73 11.82 11,767 2.56 2.35 0.01 -- Class Y...................... 11.97 13.11 10,860 1.36 1.20 1.17 -- From inception August 1, 1998, through December 31, 1998 Class C...................... 11.74(f) (4.05)(d) 1,379 2.83(b) 2.35(b) (0.71)(b) --
--------------- (a) Information presented relates to a share of capital share outstanding throughout the indicated period. (b) Annualized. (c) Assumes initial investment at net asset value at the beginning of each period, reinvestment of all distributions, the complete redemption of the investment at net asset value at the end of each period and no sales charge. Total return would be reduced if sales charges were taken into account. (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 have been restated to reflect a reverse stock split for Class C shares effective February 11, 1999. (g) Per share amounts have been calculated using average shares outstanding method. (h) Expense ratio includes a practical waiver of 12b-1 fees. See Notes to Financial Statements. 200 --------------------------------------------------------------------------------
SELECTED PER-SHARE DATA(A) ---------------------------------------------------------------------------------- NET REALIZED AND DISTRIBUTIONS NET ASSET NET UNREALIZED DIVIDENDS FROM VALUE AT INVESTMENT GAIN FROM NET REALIZED DISTRIBUTIONS BEGINNING INCOME (LOSS) ON INVESTMENT CAPITAL FROM OF PERIOD (LOSS) INVESTMENTS INCOME GAINS CAPITAL --------- ---------- ------------ ---------- ------------- ------------- THE HARTFORD INTERNATIONAL SMALL COMPANY FUND For the Year Ended October 31, 2003(g) Class A...................... $ 8.37 $ 0.07 $ 4.51 $(0.02) $ -- $ -- Class B...................... 8.34 0.01 4.47 -- -- -- Class C...................... 8.28 0.01 4.43 -- -- -- Class Y...................... 8.43 0.09 4.56 (0.06) -- -- For the Year Ended October 31, 2002(g) Class A...................... 8.82 0.03 (0.48) -- -- -- Class B...................... 8.81 (0.02) (0.45) -- -- -- Class C...................... 8.78 (0.03) (0.47) -- -- -- Class Y...................... 8.84 0.09 (0.50) -- -- -- From inception April 30, 2001, through October 31, 2001 Class A...................... 10.00 0.04 (1.22) -- -- -- Class B...................... 10.00 -- (1.19) -- -- -- Class C...................... 10.00 0.01 (1.23) -- -- -- Class Y...................... 10.00 0.06 (1.22) -- -- -- THE HARTFORD MIDCAP FUND For the Year Ended October 31, 2003 Class A...................... 15.50 (0.08) 5.16 -- -- -- Class B...................... 14.93 (0.20) 4.95 -- -- -- Class C...................... 14.94 (0.18) 4.95 -- -- -- Class Y...................... 15.88 -- 5.33 -- -- -- For the Year Ended October 31, 2002(g) Class A...................... 16.57 (0.10) (0.97) -- -- -- Class B...................... 16.07 (0.21) (0.93) -- -- -- Class C...................... 16.08 (0.21) (0.93) -- -- -- Class Y...................... 16.89 (0.02) (0.99) -- -- -- For the Year Ended October 31, 2001 Class A...................... 22.42 (0.03) (3.89) -- (1.93) -- Class B...................... 21.96 (0.09) (3.87) -- (1.93) -- Class C...................... 21.96 (0.12) (3.83) -- (1.93) -- Class Y...................... 22.72 -- (3.90) -- (1.93) -- For the Ten Months Ended October 31, 2000 Class A...................... 17.78 (0.03) 5.37 -- (0.70) -- Class B...................... 17.54 (0.07) 5.19 -- (0.70) -- Class C...................... 17.53 (0.10) 5.23 -- (0.70) -- Class Y...................... 17.94 (0.01) 5.49 -- (0.70) -- For the Year Ended December 31, 1999 Class A...................... 12.30 (0.03) 6.08 -- (0.57) -- Class B...................... 12.22 (0.03) 5.92 -- (0.57) -- Class C...................... 12.21(f) (0.04)(f) 5.93(f) -- (0.57)(f) -- Class Y...................... 12.35 (0.02) 6.18 -- (0.57) -- For the Year Ended December 31, 1998 Class A...................... 10.00 (0.05) 2.35 -- -- -- Class B...................... 10.00 (0.10) 2.32 -- -- -- Class Y...................... 10.00 (0.02) 2.37 -- -- -- From inception August 1, 1998, through December 31, 1998 Class C...................... 11.23(f) (0.03)(f) 1.01(f) -- -- -- RATIOS AND SUPPLEMENTAL DATA ------------------------------------------------------------------------------------------ RATIO OF RATIO OF RATIO OF EXPENSES EXPENSES NET NET ASSET NET ASSETS TO AVERAGE TO AVERAGE INVESTMENT VALUE AT AT END OF NET ASSETS NET ASSETS INCOME PORTFOLIO END OF TOTAL PERIOD BEFORE AFTER TO AVERAGE TURNOVER PERIOD RETURN(C) (000'S) WAIVERS WAIVERS NET ASSETS RATE(E) --------- --------- ---------- ---------- ---------- ---------- --------- THE HARTFORD INTERNATIONAL SMALL COMPANY FUND For the Year Ended October 31, 2003(g) Class A...................... $12.93 54.76% $ 12,320 2.36% 1.65% 0.72% 166% Class B...................... 12.82 53.72 2,237 3.09 2.35 0.03 -- Class C...................... 12.72 53.62 3,004 2.96 2.35 (0.03) -- Class Y...................... 13.02 55.47 25,154 1.64 1.20 0.93 -- For the Year Ended October 31, 2002(g) Class A...................... 8.37 (5.10) 4,598 3.09 1.65 0.44 194 Class B...................... 8.34 (5.34) 926 3.81 2.35 (0.26) -- Class C...................... 8.28 (5.70) 859 3.53 2.35 (0.26) -- Class Y...................... 8.43 (4.64) 969 1.91 1.20 0.89 -- From inception April 30, 2001, through October 31, 2001 Class A...................... 8.82 (11.80)(d) 2,156 3.46(b) 1.65(b) 0.86(b) 128 Class B...................... 8.81 (11.90)(d) 275 4.12(b) 2.35(b) 0.16(b) -- Class C...................... 8.78 (12.20)(d) 425 4.12(b) 2.35(b) 0.16(b) -- Class Y...................... 8.84 (11.60)(d) 265 2.92(b) 1.20(b) 1.31(b) -- THE HARTFORD MIDCAP FUND For the Year Ended October 31, 2003 Class A...................... 20.58 32.77 1,413,021 1.50 1.48 (0.58) 70 Class B...................... 19.68 31.82 424,959 2.23 2.20 (1.30) -- Class C...................... 19.71 31.93 477,891 2.10 2.10 (1.21) -- Class Y...................... 21.21 33.56 83,996 0.90 0.90 (0.01) -- For the Year Ended October 31, 2002(g) Class A...................... 15.50 (6.46) 704,238 1.56 1.45 (0.65) 109 Class B...................... 14.93 (7.09) 266,650 2.24 2.15 (1.35) -- Class C...................... 14.94 (7.09) 275,305 2.12 2.12 (1.31) -- Class Y...................... 15.88 (5.98) 27,319 0.92 0.92 (0.08) -- For the Year Ended October 31, 2001 Class A...................... 16.57 (18.94) 612,750 1.43 1.38 (0.53) 116 Class B...................... 16.07 (19.58) 265,683 2.11 2.11 (1.28) -- Class C...................... 16.08 (19.53) 285,908 2.09 2.09 (1.24) -- Class Y...................... 16.89 (18.58) 52,576 0.88 0.88 (0.03) -- For the Ten Months Ended October 31, 2000 Class A...................... 22.42 30.50(d) 425,686 1.48(b) 1.43(b) (0.80)(b) 110 Class B...................... 21.96 29.72(d) 185,830 2.15(b) 2.15(b) (1.52)(b) -- Class C...................... 21.96 29.72(d) 217,965 2.14(b) 2.14(b) (1.51)(b) -- Class Y...................... 22.72 31.01(d) 62,343 0.96(b) 0.96(b) (0.33)(b) -- For the Year Ended December 31, 1999 Class A...................... 17.78 50.17 118,194 1.51 1.45 (0.79) 123 Class B...................... 17.54 49.10 50,301 2.17 2.15 (1.48) -- Class C...................... 17.53(f) 49.22 48,310 2.22 2.15 (1.48) -- Class Y...................... 17.94 50.87 17,997 0.97 0.97 (0.31) -- For the Year Ended December 31, 1998 Class A...................... 12.30 23.12 24,294 1.62 1.45 (0.78) 139 Class B...................... 12.22 22.32 8,403 2.31 2.15 (1.48) -- Class Y...................... 12.35 23.62 3,750 1.12 1.00 (0.33) -- From inception August 1, 1998, through December 31, 1998 Class C...................... 12.21(f) 8.70(d) 1,077 2.57(b) 2.15(b) (1.45)(b) --
--------------- (a) Information presented relates to a share of capital share outstanding throughout the indicated period. (b) Annualized. (c) Assumes initial investment at net asset value at the beginning of each period, reinvestment of all distributions, the complete redemption of the investment at net asset value at the end of each period and no sales charge. Total return would be reduced if sales charges were taken into account. (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 have been restated to reflect a reverse stock split for Class C shares effective February 11, 1999. (g) Per share amounts have been calculated using average shares outstanding method. (h) Expense ratio includes a practical waiver of 12b-1 fees. 201 HARTFORD MUTUAL FUNDS, INC. AND HARTFORD MUTUAL FUNDS II, INC. FINANCIAL HIGHLIGHTS -- (CONTINUED) --------------------------------------------------------------------------------
SELECTED PER-SHARE DATA(A) ---------------------------------------------------------------------------------- NET REALIZED AND DISTRIBUTIONS NET ASSET NET UNREALIZED DIVIDENDS FROM VALUE AT INVESTMENT GAIN FROM NET REALIZED DISTRIBUTIONS BEGINNING INCOME (LOSS) ON INVESTMENT CAPITAL FROM OF PERIOD (LOSS) INVESTMENTS INCOME GAINS CAPITAL --------- ---------- ------------ ---------- ------------- ------------- THE HARTFORD MIDCAP VALUE FUND For the Year Ended October 31, 2003(g) Class A...................... $ 8.34 $(0.03) $ 3.01 $ -- $ -- $ -- Class B...................... 8.25 (0.09) 2.96 -- -- -- Class C...................... 8.25 (0.09) 2.97 -- -- -- Class Y...................... 8.39 0.02 3.05 -- -- -- For the Year Ended October 31, 2002(g) Class A...................... 8.48 (0.02) (0.12) -- -- -- Class B...................... 8.46 (0.09) (0.12) -- -- -- Class C...................... 8.46 (0.09) (0.12) -- -- -- Class Y...................... 8.50 0.01 (0.12) -- -- -- From inception April 30, 2001, through October 31, 2001 Class A...................... 10.00 (0.01) (1.51) -- -- -- Class B...................... 10.00 (0.02) (1.52) -- -- -- Class C...................... 10.00 (0.02) (1.52) -- -- -- Class Y...................... 10.00 (0.01) (1.49) -- -- -- THE HARTFORD MONEY MARKET FUND For the Year Ended October 31, 2003 Class A...................... 1.00 0.003 -- (0.003) -- -- Class B...................... 1.00 -- -- -- -- -- Class C...................... 1.00 -- -- -- -- -- Class Y...................... 1.00 0.008 -- (0.008) -- -- For the Year Ended October 31, 2002(g) Class A...................... 1.00 0.011 -- (0.011) -- -- Class B...................... 1.00 0.004 -- (0.004) -- -- Class C...................... 1.00 0.004 -- (0.004) -- -- Class Y...................... 1.00 0.017 -- (0.017) -- -- For the Year Ended October 31, 2001 Class A...................... 1.00 0.04 -- (0.04) -- -- Class B...................... 1.00 0.03 -- (0.03) -- -- Class C...................... 1.00 0.03 -- (0.03) -- -- Class Y...................... 1.00 0.04 -- (0.04) -- -- For the Ten Months Ended October 31, 2000 Class A...................... 1.00 0.04 -- (0.04) -- -- Class B...................... 1.00 0.04 -- (0.04) -- -- Class C...................... 1.00 0.04 -- (0.04) -- -- Class Y...................... 1.00 0.05 -- (0.05) -- -- For the Year Ended December 31, 1999 Class A...................... 1.00 0.04 -- (0.04) -- -- Class B...................... 1.00 0.04 -- (0.04) -- -- Class C...................... 1.00 0.04 -- (0.04) -- -- Class Y...................... 1.00 0.05 -- (0.05) -- -- For the Year Ended December 31, 1998 Class A...................... 1.00 0.05 -- (0.05) -- -- Class B...................... 1.00 0.04 -- (0.04) -- -- Class Y...................... 1.00 0.05 -- (0.05) -- -- From inception August 1, 1998, through December 31, 1998 Class C...................... 1.00 0.02 -- (0.02) -- -- RATIOS AND SUPPLEMENTAL DATA ------------------------------------------------------------------------------------------ RATIO OF RATIO OF RATIO OF EXPENSES EXPENSES NET NET ASSET NET ASSETS TO AVERAGE TO AVERAGE INVESTMENT VALUE AT AT END OF NET ASSETS NET ASSETS INCOME PORTFOLIO END OF TOTAL PERIOD BEFORE AFTER TO AVERAGE TURNOVER PERIOD RETURN(C) (000'S) WAIVERS WAIVERS NET ASSETS RATE(E) --------- --------- ---------- ---------- ---------- ---------- --------- THE HARTFORD MIDCAP VALUE FUND For the Year Ended October 31, 2003(g) Class A...................... $11.32 35.73% $ 155,614 1.60% 1.45% (0.35)% 56% Class B...................... 11.12 34.79 42,407 2.33 2.15 (1.05) -- Class C...................... 11.13 34.91 49,566 2.20 2.15 (1.05) -- Class Y...................... 11.46 36.59 29 1.03 1.00 0.16 -- For the Year Ended October 31, 2002(g) Class A...................... 8.34 (1.65) 94,532 1.68 1.45 (0.23) 40 Class B...................... 8.25 (2.48) 26,556 2.38 2.15 (0.95) -- Class C...................... 8.25 (2.48) 32,274 2.27 2.15 (0.96) -- Class Y...................... 8.39 (1.29) 252 1.02 1.00 0.23 -- From inception April 30, 2001, through October 31, 2001 Class A...................... 8.48 (15.20)(d) 26,812 1.69(b) 1.40(b) (0.20)(b) 28 Class B...................... 8.46 (15.40)(d) 7,158 2.38(b) 2.10(b) (0.90)(b) -- Class C...................... 8.46 (15.40)(d) 8,975 2.37(b) 2.10(b) (0.90)(b) -- Class Y...................... 8.50 (15.00)(d) 255 1.11(b) 0.95(b) 0.25(b) -- THE HARTFORD MONEY MARKET FUND For the Year Ended October 31, 2003 Class A...................... 1.00 0.32 246,199 1.28 1.00 0.33 N/A Class B...................... 1.00 0.00 67,732 2.01 1.33(h) 0.01 -- Class C...................... 1.00 0.00 29,955 1.89 1.36(h) 0.01 -- Class Y...................... 1.00 0.78 1,162 0.68 0.55 0.84 -- For the Year Ended October 31, 2002(g) Class A...................... 1.00 1.09 302,862 1.30 1.00 1.06 N/A Class B...................... 1.00 0.43 99,048 1.96 1.70 0.37 -- Class C...................... 1.00 0.42 65,894 1.82 1.70 0.37 -- Class Y...................... 1.00 1.72 2,815 0.62 0.55 1.51 -- For the Year Ended October 31, 2001 Class A...................... 1.00 4.02 86,748 1.19 1.00 3.63 N/A Class B...................... 1.00 3.31 48,998 1.85 1.70 2.93 -- Class C...................... 1.00 3.31 53,873 1.82 1.70 2.93 -- Class Y...................... 1.00 4.49 33,309 0.61 0.55 4.08 -- For the Ten Months Ended October 31, 2000 Class A...................... 1.00 4.54(d) 43,897 1.20(b) 1.00(b) 5.35(b) N/A Class B...................... 1.00 3.94(d) 14,974 1.85(b) 1.70(b) 4.65(b) -- Class C...................... 1.00 3.93(d) 6,842 1.85(b) 1.70(b) 4.65(b) -- Class Y...................... 1.00 4.94(d) 18,325 0.65(b) 0.55(b) 5.80(b) -- For the Year Ended December 31, 1999 Class A...................... 1.00 4.32 44,663 1.15 1.00 4.25 N/A Class B...................... 1.00 3.59 25,762 1.81 1.70 3.55 -- Class C...................... 1.00 3.59 9,904 1.84 1.70 3.56 -- Class Y...................... 1.00 4.80 8,953 0.64 0.55 4.70 -- For the Year Ended December 31, 1998 Class A...................... 1.00 4.69 29,424 1.25 1.00 4.57 N/A Class B...................... 1.00 3.97 11,936 1.86 1.70 3.83 -- Class Y...................... 1.00 5.16 5,320 0.71 0.55 4.99 -- From inception August 1, 1998, through December 31, 1998 Class C...................... 1.00 1.58(d) 1,203 2.02(b) 1.70(b) 3.57(b) --
--------------- (a) Information presented relates to a share of capital share outstanding throughout the indicated period. (b) Annualized. (c) Assumes initial investment at net asset value at the beginning of each period, reinvestment of all distributions, the complete redemption of the investment at net asset value at the end of each period and no sales charge. Total return would be reduced if sales charges were taken into account. (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 have been restated to reflect a reverse stock split for Class C shares effective February 11, 1999. (g) Per share amounts have been calculated using average shares outstanding method. (h) Expense ratio includes a practical waiver of 12b-1 fees. See Notes to Financial Statements. 202 --------------------------------------------------------------------------------
SELECTED PER-SHARE DATA(A) ---------------------------------------------------------------------------------- NET REALIZED AND DISTRIBUTIONS NET ASSET NET UNREALIZED DIVIDENDS FROM VALUE AT INVESTMENT GAIN FROM NET REALIZED DISTRIBUTIONS BEGINNING INCOME (LOSS) ON INVESTMENT CAPITAL FROM OF PERIOD (LOSS) INVESTMENTS INCOME GAINS CAPITAL --------- ---------- ------------ ---------- ------------- ------------- THE HARTFORD SHORT DURATION FUND From inception October 31, 2002, through October 31, 2003 Class A...................... $10.00 $ 0.30 $ 0.14 $(0.30) $ -- $ -- Class B...................... 10.00 0.23 0.14 (0.23) -- -- Class C...................... 10.00 0.23 0.14 (0.23) -- -- THE HARTFORD SMALL COMPANY FUND For the Year Ended October 31, 2003 Class A...................... 9.93 (0.13) 4.48 -- -- -- Class B...................... 9.46 (0.20) 4.25 -- -- -- Class C...................... 9.47 (0.20) 4.25 -- -- -- Class Y...................... 10.27 (0.09) 4.65 -- -- -- For the Year Ended October 31, 2002(g) Class A...................... 12.00 (0.12) (1.95) -- -- -- Class B...................... 11.52 (0.20) (1.86) -- -- -- Class C...................... 11.53 (0.20) (1.86) -- -- -- Class Y...................... 12.35 (0.06) (2.02) -- -- -- For the Year Ended October 31, 2001 Class A...................... 18.08 (0.08) (5.41) -- (0.59) -- Class B...................... 17.49 (0.16) (5.22) -- (0.59) -- Class C...................... 17.51 (0.19) (5.20) -- (0.59) -- Class Y...................... 18.50 (0.02) (5.54) -- (0.59) -- For the Ten Months Ended October 31, 2000 Class A...................... 20.48 (0.04) (1.47) -- (0.89) -- Class B...................... 19.96 (0.11) (1.47) -- (0.89) -- Class C...................... 19.97 (0.12) (1.45) -- (0.89) -- Class Y...................... 20.84 (0.02) (1.43) -- (0.89) -- For the Year Ended December 31, 1999 Class A...................... 13.31 (0.05) 8.52 -- (1.30) -- Class B...................... 13.09 (0.09) 8.26 -- (1.30) -- Class C...................... 13.09(f) (0.08)(f) 8.26(f) -- (1.30)(f) -- Class Y...................... 13.47 (0.03) 8.70 -- (1.30) -- For the Year Ended December 31, 1998 Class A...................... 12.16 (0.06) 1.33 -- (0.12) -- Class B...................... 12.04 (0.12) 1.29 -- (0.12) -- Class Y...................... 12.24 (0.03) 1.38 -- (0.12) -- From inception August 1, 1998, through December 31, 1998 Class C...................... 12.49(f) (0.02)(f) 0.62(f) -- -- -- RATIOS AND SUPPLEMENTAL DATA ------------------------------------------------------------------------------------------ RATIO OF RATIO OF RATIO OF EXPENSES EXPENSES NET NET ASSET NET ASSETS TO AVERAGE TO AVERAGE INVESTMENT VALUE AT AT END OF NET ASSETS NET ASSETS INCOME PORTFOLIO END OF TOTAL PERIOD BEFORE AFTER TO AVERAGE TURNOVER PERIOD RETURN(C) (000'S) WAIVERS WAIVERS NET ASSETS RATE(E) --------- --------- ---------- ---------- ---------- ---------- --------- THE HARTFORD SHORT DURATION FUND From inception October 31, 2002, through October 31, 2003 Class A...................... $10.14 4.48% $ 32,753 1.34(b)% 0.95(b)% 3.14(b)% 113% Class B...................... 10.14 3.77 10,206 2.09(b) 1.65(b) 2.46(b) -- Class C...................... 10.14 3.77 30,660 1.96(b) 1.65(b) 2.44(b) -- THE HARTFORD SMALL COMPANY FUND For the Year Ended October 31, 2003 Class A...................... 14.28 43.81 141,327 1.63 1.45 (1.19) 179 Class B...................... 13.51 42.81 58,286 2.36 2.15 (1.89) -- Class C...................... 13.52 42.77 52,010 2.23 2.15 (1.88) -- Class Y...................... 14.83 44.40 14,472 1.05 1.00 (0.73) -- For the Year Ended October 31, 2002(g) Class A...................... 9.93 (17.25) 96,302 1.64 1.45 (0.97) 226 Class B...................... 9.46 (17.88) 41,439 2.31 2.15 (1.67) -- Class C...................... 9.47 (17.87) 38,938 2.20 2.15 (1.65) -- Class Y...................... 10.27 (16.84) 10,834 1.00 1.00 (0.53) -- For the Year Ended October 31, 2001 Class A...................... 12.00 (31.36) 116,398 1.51 1.45 (0.64) 224 Class B...................... 11.52 (31.80) 49,738 2.19 2.15 (1.34) -- Class C...................... 11.53 (31.82) 51,234 2.17 2.15 (1.34) -- Class Y...................... 12.35 (31.02) 33,473 0.95 0.95 (0.14) -- For the Ten Months Ended October 31, 2000 Class A...................... 18.08 (7.70)(d) 164,280 1.50(b) 1.45(b) (0.72)(b) 158 Class B...................... 17.49 (8.26)(d) 71,323 2.16(b) 2.15(b) (1.42)(b) -- Class C...................... 17.51 (8.21)(d) 77,337 2.16(b) 2.15(b) (1.42)(b) -- Class Y...................... 18.50 (7.27)(d) 46,205 0.96(b) 0.96(b) (0.23)(b) -- For the Year Ended December 31, 1999 Class A...................... 20.48 65.66 109,559 1.51 1.45 (0.92) 177 Class B...................... 19.96 64.46 53,358 2.15 2.15 (1.62) -- Class C...................... 19.97(f) 64.58 37,672 2.20 2.15 (1.61) -- Class Y...................... 20.84 66.37 39,536 0.99 0.99 (0.46) -- For the Year Ended December 31, 1998 Class A...................... 13.31 10.46 37,623 1.57 1.45 (0.79) 267 Class B...................... 13.09 9.73 18,345 2.22 2.15 (1.49) -- Class Y...................... 13.47 11.05 13,004 1.02 1.00 (0.33) -- From inception August 1, 1998, through December 31, 1998 Class C...................... 13.09(f) 4.80(d) 2,765 2.46(b) 2.15(b) (1.49)(b) --
--------------- (a) Information presented relates to a share of capital share outstanding throughout the indicated period. (b) Annualized. (c) Assumes initial investment at net asset value at the beginning of each period, reinvestment of all distributions, the complete redemption of the investment at net asset value at the end of each period and no sales charge. Total return would be reduced if sales charges were taken into account. (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 have been restated to reflect a reverse stock split for Class C shares effective February 11, 1999. (g) Per share amounts have been calculated using average shares outstanding method. (h) Expense ratio includes a practical waiver of 12b-1 fees. 203 HARTFORD MUTUAL FUNDS, INC. AND HARTFORD MUTUAL FUNDS II, INC. FINANCIAL HIGHLIGHTS -- (CONTINUED) --------------------------------------------------------------------------------
SELECTED PER-SHARE DATA(A) ---------------------------------------------------------------------------------- NET REALIZED AND DISTRIBUTIONS NET ASSET NET UNREALIZED DIVIDENDS FROM VALUE AT INVESTMENT GAIN FROM NET REALIZED DISTRIBUTIONS BEGINNING INCOME (LOSS) ON INVESTMENT CAPITAL FROM OF PERIOD (LOSS) INVESTMENTS INCOME GAINS CAPITAL --------- ---------- ------------ ---------- ------------- ------------- THE HARTFORD SMALLCAP GROWTH FUND For the Year Ended October 31, 2003 Class A...................... $15.57 $(0.09) $ 7.43 $ -- $ -- $ -- Class B...................... 14.36 (0.15) 6.78 -- -- -- Class C...................... 14.35 (0.16) 6.80 -- -- -- Class H...................... 14.37 (0.25) 6.90 -- -- -- Class L...................... 15.56 (0.15) 7.49 -- -- -- Class M...................... 14.36 (0.24) 6.88 -- -- -- Class N...................... 14.37 (0.24) 6.89 -- -- -- Class Y...................... 15.61 (0.08) 7.53 -- -- -- For the Period February 19, 2002 through October 31, 2002 Class A...................... 20.21 (0.06) (4.58) -- -- -- Class B...................... 18.73 (0.08) (4.29) -- -- -- Class C...................... 18.73 (0.09) (4.29) -- -- -- Class Y...................... 20.21 (0.08) (4.52) -- -- -- For the Year Ended October 31, 2002 Class H...................... 17.71 (0.36) (2.65) -- (0.33) -- Class L...................... 19.04 (0.20) (2.95) -- (0.33) -- Class M...................... 17.70 (0.33) (2.68) -- (0.33) -- Class N...................... 17.71 (0.34) (2.67) -- (0.33) -- For the Two-Month Period Ended October 31, 2001 Class H...................... 19.77 (0.04) (2.02) -- -- -- Class L...................... 21.24 (0.03) (2.17) -- -- -- Class M...................... 19.76 (0.04) (2.02) -- -- -- Class N...................... 19.77 (0.04) (2.02) -- -- -- For the Year Ended August 31, 2001 Class H...................... 57.72 (0.72) (24.24) -- (12.99) -- Class L...................... 60.44 (0.17) (26.04) -- (12.99) -- Class M...................... 57.66 (0.68) (24.23) -- (12.99) -- Class N...................... 57.71 (0.71) (24.24) -- (12.99) -- For the Year Ended August 31, 2000 Class H...................... 34.94 (0.47) 33.83 -- (10.58) -- Class L...................... 36.04 (0.44) 35.42 -- (10.58) -- Class M...................... 34.91 (0.47) 33.80 -- (10.58) -- Class N...................... 34.94 (0.47) 33.82 -- (10.58) -- For the Year Ended August 31, 1999 Class H...................... 25.92 (0.90) 18.42 -- (8.50) -- Class L...................... 26.42 (0.30) 18.42 -- (8.50) -- Class M...................... 25.90 (0.91) 18.42 -- (8.50) -- Class N...................... 25.92 (0.90) 18.42 -- (8.50) -- RATIOS AND SUPPLEMENTAL DATA ------------------------------------------------------------------------------------------ RATIO OF RATIO OF RATIO OF EXPENSES EXPENSES NET NET ASSET NET ASSETS TO AVERAGE TO AVERAGE INVESTMENT VALUE AT AT END OF NET ASSETS NET ASSETS INCOME PORTFOLIO END OF TOTAL PERIOD BEFORE AFTER TO AVERAGE TURNOVER PERIOD RETURN(C) (000'S) WAIVERS WAIVERS NET ASSETS RATE(E) --------- --------- ---------- ---------- ---------- ---------- --------- THE HARTFORD SMALLCAP GROWTH FUND For the Year Ended October 31, 2003 Class A...................... $22.91 47.14% $ 17,544 1.61% 1.45% (0.83)% 122% Class B...................... 20.99 46.17 6,571 2.31 2.15 (1.53) -- Class C...................... 20.99 46.27 5,076 2.22 2.15 (1.53) -- Class H...................... 21.02 46.28 20,767 2.05 2.05 (1.40) -- Class L...................... 22.90 47.17 112,621 1.50 1.45 (0.80) -- Class M...................... 21.00 46.24 17,992 2.05 2.05 (1.40) -- Class N...................... 21.02 46.28 6,110 2.05 2.05 (1.40) -- Class Y...................... 23.06 47.72 1 1.11 1.10 (0.46) -- For the Period February 19, 2002 through October 31, 2002 Class A...................... 15.57 (22.97)(d) 3,457 1.82(b) 1.45(b) (0.93)(b) 93 Class B...................... 14.36 (23.31)(d) 1,756 2.52(b) 2.15(b) (1.60)(b) -- Class C...................... 14.35 (23.37)(d) 1,432 2.38(b) 2.15(b) (1.60)(b) -- Class Y...................... 15.61 (22.77)(d) 1 1.06(b) 1.00(b) (0.60)(b) -- For the Year Ended October 31, 2002 Class H...................... 14.37 (17.41) 16,675 2.05 2.05 (1.65) 93 Class L...................... 15.56 (16.92) 86,414 1.50 1.45 (1.06) -- Class M...................... 14.36 (17.42) 13,714 2.05 2.05 (1.65) -- Class N...................... 14.37 (17.41) 4,757 2.05 2.05 (1.65) -- For the Two-Month Period Ended October 31, 2001 Class H...................... 17.71 (10.42)(d) 23,059 2.05(b) 2.05(b) (1.57)(b) 17 Class L...................... 19.04 (10.36)(d) 121,440 1.50(b) 1.50(b) (1.02)(b) -- Class M...................... 17.70 (10.43)(d) 18,115 2.05(b) 2.05(b) (1.57)(b) -- Class N...................... 17.71 (10.42)(d) 6,495 2.05(b) 2.05(b) (1.57)(b) -- For the Year Ended August 31, 2001 Class H...................... 19.77 (50.88) 26,051 1.94 1.94 (1.12) 151 Class L...................... 21.24 (50.60) 138,175 1.39 1.39 (0.57) -- Class M...................... 19.76 (50.84) 20,522 1.94 1.94 (1.12) -- Class N...................... 19.77 (50.87) 7,278 1.94 1.94 (1.12) -- For the Year Ended August 31, 2000 Class H...................... 57.72 114.64 50,558 1.90 1.90 (1.49) 212 Class L...................... 60.44 115.84 314,326 1.35 1.35 (0.94) -- Class M...................... 57.66 114.66 38,246 1.90 1.90 (1.49) -- Class N...................... 57.71 114.60 14,300 1.90 1.90 (1.49) -- For the Year Ended August 31, 1999 Class H...................... 34.94 79.33 20,755 2.05 2.05 (1.63) 271 Class L...................... 36.04 80.27 147,346 1.50 1.50 (1.08) -- Class M...................... 34.91 79.35 11,426 2.05 2.05 (1.63) -- Class N...................... 34.94 79.33 3,612 2.05 2.05 (1.63) --
--------------- (a) Information presented relates to a share of capital share outstanding throughout the indicated period. (b) Annualized. (c) Assumes initial investment at net asset value at the beginning of each period, reinvestment of all distributions, the complete redemption of the investment at net asset value at the end of each period and no sales charge. Total return would be reduced if sales charges were taken into account. (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 have been restated to reflect a reverse stock split for Class C shares effective February 11, 1999. (g) Per share amounts have been calculated using average shares outstanding method. (h) Expense ratio includes a practical waiver of 12b-1 fees. See Notes to Financial Statements. 204 --------------------------------------------------------------------------------
SELECTED PER-SHARE DATA(A) ---------------------------------------------------------------------------------- NET REALIZED AND DISTRIBUTIONS NET ASSET NET UNREALIZED DIVIDENDS FROM VALUE AT INVESTMENT GAIN FROM NET REALIZED DISTRIBUTIONS BEGINNING INCOME (LOSS) ON INVESTMENT CAPITAL FROM OF PERIOD (LOSS) INVESTMENTS INCOME GAINS CAPITAL --------- ---------- ------------ ---------- ------------- ------------- THE HARTFORD STOCK FUND For the Year Ended October 31, 2003 Class A...................... $13.73 $ 0.04 $ 2.44 $ -- $ -- $ -- Class B...................... 13.10 (0.07) 2.32 -- -- -- Class C...................... 13.13 (0.05) 2.33 -- -- -- Class Y...................... 14.15 0.12 2.54 -- -- -- For the Year Ended October 31, 2002(g) Class A...................... 16.89 -- (3.16) -- -- -- Class B...................... 16.24 (0.12) (3.02) -- -- -- Class C...................... 16.23 (0.08) (3.02) -- -- -- Class Y...................... 17.31 0.10 (3.26) -- -- -- For the Year Ended October 31, 2001 Class A...................... 23.40 0.02 (5.45) -- (1.08) -- Class B...................... 22.69 (0.09) (5.28) -- (1.08) -- Class C...................... 22.68 (0.08) (5.29) -- (1.08) -- Class Y...................... 23.85 0.09 (5.55) -- (1.08) -- For the Ten Months Ended October 31, 2000 Class A...................... 23.64 (0.03) -- -- (0.21) -- Class B...................... 23.06 (0.12) (0.04) -- (0.21) -- Class C...................... 23.05 (0.11) (0.05) -- (0.21) -- Class Y...................... 23.99 0.05 0.02 -- (0.21) -- For the Year Ended December 31, 1999 Class A...................... 19.70 -- 4.36 -- (0.42) -- Class B...................... 19.36 (0.07) 4.19 -- (0.42) -- Class C...................... 19.36(f) (0.08)(f) 4.19(f) -- (0.42)(f) -- Class Y...................... 19.89 (0.01) 4.53 -- (0.42) -- For the Year Ended December 31, 1998 Class A...................... 15.16 (0.01) 4.75 -- (0.19) (0.01) Class B...................... 15.01 (0.05) 4.60 -- (0.19) (0.01) Class Y...................... 15.25 0.06 4.78 -- (0.19) (0.01) From inception August 1, 1998, through December 31, 1998 Class C...................... 18.53(f) (0.02)(f) 1.22(f) -- (0.35)(f) (0.02)(f) THE HARTFORD TAX-FREE CALIFORNIA FUND From inception October 31, 2002, through October 31, 2003 Class A...................... 10.00 0.37 (0.07) (0.37) -- -- Class B...................... 10.00 0.30 (0.08) (0.30) -- -- Class C...................... 10.00 0.30 (0.07) (0.30) -- -- RATIOS AND SUPPLEMENTAL DATA ------------------------------------------------------------------------------------------ RATIO OF RATIO OF RATIO OF EXPENSES EXPENSES NET NET ASSET NET ASSETS TO AVERAGE TO AVERAGE INVESTMENT VALUE AT AT END OF NET ASSETS NET ASSETS INCOME PORTFOLIO END OF TOTAL PERIOD BEFORE AFTER TO AVERAGE TURNOVER PERIOD RETURN(C) (000'S) WAIVERS WAIVERS NET ASSETS RATE(E) --------- --------- ---------- ---------- ---------- ---------- --------- THE HARTFORD STOCK FUND For the Year Ended October 31, 2003 Class A...................... $16.21 18.06% $ 976,663 1.47% 1.45% 0.26% 37% Class B...................... 15.35 17.18 376,437 2.20 2.18 (0.47) -- Class C...................... 15.41 17.36 311,874 2.07 2.07 (0.36) -- Class Y...................... 16.81 18.80 42,894 0.88 0.88 0.84 -- For the Year Ended October 31, 2002(g) Class A...................... 13.73 (18.71) 880,371 1.47 1.42 (0.01) 48 Class B...................... 13.10 (19.34) 351,382 2.15 2.15 (0.74) -- Class C...................... 13.13 (19.10) 313,173 2.03 2.03 (0.62) -- Class Y...................... 14.15 (18.26) 34,116 0.85 0.85 0.58 -- For the Year Ended October 31, 2001 Class A...................... 16.89 (24.28) 1,031,549 1.33 1.28 0.05 38 Class B...................... 16.24 (24.80) 470,035 2.00 2.00 (0.67) -- Class C...................... 16.23 (24.81) 430,238 1.99 1.99 (0.66) -- Class Y...................... 17.31 (23.93) 27,004 0.79 0.79 0.54 -- For the Ten Months Ended October 31, 2000 Class A...................... 23.40 (0.14)(d) 1,067,970 1.32(b) 1.27(b) (0.19)(b) 38 Class B...................... 22.69 (0.71)(d) 578,402 1.99(b) 1.99(b) (0.90)(b) -- Class C...................... 22.68 (0.71)(d) 492,996 1.98(b) 1.98(b) (0.90)(b) -- Class Y...................... 23.85 0.28(d) 32,123 0.80(b) 0.80(b) 0.28(b) -- For the Year Ended December 31, 1999 Class A...................... 23.64 22.31 752,763 1.38 1.33 (0.06) 34 Class B...................... 23.06 21.46 462,318 2.03 2.03 (0.75) -- Class C...................... 23.05(f) 21.40 305,566 2.07 2.07 (0.78) -- Class Y...................... 23.99 22.91 31,129 0.91 0.91 0.36 -- For the Year Ended December 31, 1998 Class A...................... 19.70 31.33 268,226 1.49 1.44 (0.07) 37 Class B...................... 19.36 30.38 185,205 2.16 2.15 (0.77) -- Class Y...................... 19.89 31.80 7,919 0.96 0.96 0.36 -- From inception August 1, 1998, through December 31, 1998 Class C...................... 19.36(f) 6.60(d) 36,039 2.24(b) 2.15(b) (0.76)(b) -- THE HARTFORD TAX-FREE CALIFORNIA FUND From inception October 31, 2002, through October 31, 2003 Class A...................... 9.93 3.06 10,799 1.57(b) 0.95(b) 3.73(b) 64 Class B...................... 9.92 2.23 1,827 2.32(b) 1.65(b) 3.07(b) -- Class C...................... 9.93 2.34 1,230 2.18(b) 1.65(b) 3.02(b) --
--------------- (a) Information presented relates to a share of capital share outstanding throughout the indicated period. (b) Annualized. (c) Assumes initial investment at net asset value at the beginning of each period, reinvestment of all distributions, the complete redemption of the investment at net asset value at the end of each period and no sales charge. Total return would be reduced if sales charges were taken into account. (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 have been restated to reflect a reverse stock split for Class C shares effective February 11, 1999. (g) Per share amounts have been calculated using average shares outstanding method. (h) Expense ratio includes a practical waiver of 12b-1 fees. 205 HARTFORD MUTUAL FUNDS, INC. AND HARTFORD MUTUAL FUNDS II, INC. FINANCIAL HIGHLIGHTS -- (CONTINUED) --------------------------------------------------------------------------------
SELECTED PER-SHARE DATA(A) ---------------------------------------------------------------------------------- NET REALIZED AND DISTRIBUTIONS NET ASSET NET UNREALIZED DIVIDENDS FROM VALUE AT INVESTMENT GAIN FROM NET REALIZED DISTRIBUTIONS BEGINNING INCOME (LOSS) ON INVESTMENT CAPITAL FROM OF PERIOD (LOSS) INVESTMENTS INCOME GAINS CAPITAL --------- ---------- ------------ ---------- ------------- ------------- THE TAX-FREE MINNESOTA FUND For the Year Ended October 31, 2003(g) Class A...................... $10.46 $ 0.38 $ 0.05 $(0.38) $(0.05) $ -- Class B...................... 10.47 0.31 0.04 (0.31) (0.05) -- Class C...................... 10.48 0.31 0.05 (0.31) (0.05) -- Class E...................... 10.53 0.41 0.05 (0.42) (0.05) -- Class H...................... 10.52 0.30 0.06 (0.32) (0.05) -- Class L...................... 10.49 0.39 0.05 (0.39) (0.05) -- Class M...................... 10.49 0.31 0.07 (0.32) (0.05) -- Class N...................... 10.51 0.31 0.05 (0.32) (0.05) -- Class Y...................... 10.49 0.40 0.06 (0.43) (0.05) -- For the Period February 19, 2002 through October 31, 2002 Class A...................... 10.29 0.26 0.16 (0.25) -- -- Class B...................... 10.27 0.20 0.20 (0.20) -- -- Class C...................... 10.27 0.20 0.21 (0.20) -- -- Class Y...................... 10.29 0.29 0.20 (0.29) -- -- For the Year Ended October 31, 2002 Class E...................... 10.45 0.40 0.07 (0.39) -- -- Class H...................... 10.44 0.29 0.07 (0.28) -- -- Class L...................... 10.42 0.37 0.06 (0.36) -- -- Class M...................... 10.42 0.29 0.06 (0.28) -- -- Class N...................... 10.44 0.29 0.06 (0.28) -- -- For the One-Month Period Ended October 31, 2001 Class E...................... 10.35 0.04 0.10 (0.04) -- -- Class H...................... 10.34 0.03 0.10 (0.03) -- -- Class L...................... 10.31 0.04 0.11 (0.04) -- -- Class M...................... 10.31 0.03 0.11 (0.03) -- -- Class N...................... 10.34 0.03 0.10 (0.03) -- -- For the Year Ended September 30, 2001 Class E...................... 9.91 0.48 0.45 (0.49) -- -- Class H...................... 9.91 0.38 0.44 (0.39) -- -- Class L...................... 9.88 0.45 0.45 (0.47) -- -- Class M...................... 9.88 0.38 0.44 (0.39) -- -- Class N...................... 9.90 0.38 0.45 (0.39) -- -- For the Year Ended September 30, 2000 Class E...................... 9.94 0.51 (0.04) (0.50) -- -- Class H...................... 9.93 0.42 (0.04) (0.40) -- -- Class L...................... 9.91 0.48 (0.04) (0.47) -- -- Class M...................... 9.90 0.42 (0.04) (0.40) -- -- Class N...................... 9.93 0.41 (0.04) (0.40) -- -- For the Year Ended September 30, 1999 Class E...................... 10.77 0.50 (0.67) (0.49) (0.17) -- Class H...................... 10.76 0.39 (0.67) (0.38) (0.17) -- Class L...................... 10.74 0.47 (0.67) (0.46) (0.17) -- Class M...................... 10.73 0.39 (0.67) (0.38) (0.17) -- Class N...................... 10.73 0.42 (0.67) (0.38) (0.17) -- RATIOS AND SUPPLEMENTAL DATA ------------------------------------------------------------------------------------------ RATIO OF RATIO OF RATIO OF EXPENSES EXPENSES NET NET ASSET NET ASSETS TO AVERAGE TO AVERAGE INVESTMENT VALUE AT AT END OF NET ASSETS NET ASSETS INCOME PORTFOLIO END OF TOTAL PERIOD BEFORE AFTER TO AVERAGE TURNOVER PERIOD RETURN(C) (000'S) WAIVERS WAIVERS NET ASSETS RATE(E) --------- --------- ---------- ---------- ---------- ---------- --------- THE TAX-FREE MINNESOTA FUND For the Year Ended October 31, 2003(g) Class A...................... $10.46 4.23% $ 3,242 1.50% 1.15% 3.58% 17% Class B...................... 10.46 3.42 532 2.21 1.85 2.88 -- Class C...................... 10.48 3.51 414 2.09 1.85 2.88 -- Class E...................... 10.52 4.50 29,784 0.83 0.80 3.92 -- Class H...................... 10.51 3.46 155 1.81 1.78 2.89 -- Class L...................... 10.49 4.34 2,922 1.07 1.05 3.67 -- Class M...................... 10.50 3.67 454 1.82 1.80 2.92 -- Class N...................... 10.50 3.47 212 1.83 1.80 2.92 -- Class Y...................... 10.47 4.50 1 0.91 0.80 3.82 -- For the Period February 19, 2002 through October 31, 2002 Class A...................... 10.46 4.16(d) 2,073 1.37(b) 1.15(b) 3.57(b) 36 Class B...................... 10.47 3.93(d) 238 2.09(b) 1.85(b) 2.73(b) -- Class C...................... 10.48 4.03(d) 304 1.92(b) 1.85(b) 2.79(b) -- Class Y...................... 10.49 4.92(d) 1 0.65(b) 0.65(b) 3.83(b) -- For the Year Ended October 31, 2002 Class E...................... 10.53 4.58 31,414 0.79 0.79 3.81 36 Class H...................... 10.52 3.56 577 1.81 1.81 2.81 -- Class L...................... 10.49 4.22 3,344 1.04 1.04 3.56 -- Class M...................... 10.49 3.46 562 1.79 1.79 2.81 -- Class N...................... 10.51 3.46 203 1.79 1.79 2.81 -- For the One-Month Period Ended October 31, 2001 Class E...................... 10.45 1.33(d) 32,533 0.84(b) 0.84(b) 4.28(b) -- Class H...................... 10.44 1.25(d) 1,094 1.84(b) 1.84(b) 3.28(b) -- Class L...................... 10.42 1.41(d) 3,543 1.09(b) 1.09(b) 4.03(b) -- Class M...................... 10.42 1.35(d) 772 1.84(b) 1.84(b) 3.28(b) -- Class N...................... 10.44 1.25(d) 203 1.84(b) 1.84(b) 3.28(b) -- For the Year Ended September 30, 2001 Class E...................... 10.35 9.58 32,259 0.85 0.85 4.70 18 Class H...................... 10.34 8.43 1,086 1.85 1.85 3.70 -- Class L...................... 10.31 9.24 3,570 1.10 1.10 4.45 -- Class M...................... 10.31 8.45 789 1.85 1.85 3.70 -- Class N...................... 10.34 8.55 200 1.85 1.85 3.70 -- For the Year Ended September 30, 2000 Class E...................... 9.91 4.87 33,088 0.86 0.86 5.12 56 Class H...................... 9.91 3.95 1,076 1.86 1.86 4.12 -- Class L...................... 9.88 4.63 3,454 1.11 1.11 4.87 -- Class M...................... 9.88 3.96 829 1.86 1.86 4.12 -- Class N...................... 9.90 3.84 255 1.86 1.86 4.12 -- For the Year Ended September 30, 1999 Class E...................... 9.94 (1.71) 37,396 0.86 0.86 4.73 55 Class H...................... 9.93 (2.73) 1,401 1.86 1.86 3.73 -- Class L...................... 9.91 (1.94) 3,240 1.11 1.11 4.48 -- Class M...................... 9.90 (2.73) 860 1.86 1.86 3.73 -- Class N...................... 9.93 (2.45) 247 1.86 1.86 3.73 --
--------------- (a) Information presented relates to a share of capital share outstanding throughout the indicated period. (b) Annualized. (c) Assumes initial investment at net asset value at the beginning of each period, reinvestment of all distributions, the complete redemption of the investment at net asset value at the end of each period and no sales charge. Total return would be reduced if sales charges were taken into account. (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 have been restated to reflect a reverse stock split for Class C shares effective February 11, 1999. (g) Per share amounts have been calculated using average shares outstanding method. (h) Expense ratio includes a practical waiver of 12b-1 fees. See Notes to Financial Statements. 206 --------------------------------------------------------------------------------
SELECTED PER-SHARE DATA(A) ---------------------------------------------------------------------------------- NET REALIZED AND DISTRIBUTIONS NET ASSET NET UNREALIZED DIVIDENDS FROM VALUE AT INVESTMENT GAIN FROM NET REALIZED DISTRIBUTIONS BEGINNING INCOME (LOSS) ON INVESTMENT CAPITAL FROM OF PERIOD (LOSS) INVESTMENTS INCOME GAINS CAPITAL --------- ---------- ------------ ---------- ------------- ------------- THE HARTFORD TAX-FREE NATIONAL FUND For the Year Ended October 31, 2003 Class A...................... $11.28 $ 0.41 $ 0.04 $(0.41) $(0.25) $ -- Class B...................... 11.21 0.33 0.04 (0.33) (0.25) -- Class C...................... 11.23 0.33 0.04 (0.33) (0.25) -- Class E...................... 11.27 0.45 0.03 (0.45) (0.25) -- Class H...................... 11.24 0.36 0.02 (0.34) (0.25) -- Class L...................... 11.25 0.42 0.04 (0.42) (0.25) -- Class M...................... 11.24 0.34 0.04 (0.34) (0.25) -- Class N...................... 11.22 0.33 0.05 (0.34) (0.25) -- Class Y...................... 11.28 0.45 0.04 (0.46) (0.25) -- For the Period February 19, 2002 through October 31, 2002 Class A...................... 10.99 0.26 0.30 (0.27) -- -- Class B...................... 10.97 0.20 0.25 (0.21) -- -- Class C...................... 10.97 0.20 0.27 (0.21) -- -- Class Y...................... 10.99 0.33 0.27 (0.31) -- -- For the Year Ended October 31, 2002 Class E...................... 11.18 0.41 0.12 (0.40) (0.04) -- Class H...................... 11.15 0.32 0.11 (0.30) (0.04) -- Class L...................... 11.16 0.39 0.12 (0.38) (0.04) -- Class M...................... 11.15 0.31 0.12 (0.30) (0.04) -- Class N...................... 11.13 0.31 0.12 (0.30) (0.04) -- For the One-Month Period Ended October 31, 2001 Class E...................... 11.07 0.04 0.11 (0.04) -- -- Class H...................... 11.03 0.03 0.12 (0.03) -- -- Class L...................... 11.05 0.04 0.11 (0.04) -- -- Class M...................... 11.04 0.03 0.11 (0.03) -- -- Class N...................... 11.02 0.03 0.11 (0.03) -- -- For the Year Ended September 30, 2001 Class E...................... 10.52 0.49 0.56 (0.50) -- -- Class H...................... 10.49 0.37 0.56 (0.39) -- -- Class L...................... 10.50 0.46 0.56 (0.47) -- -- Class M...................... 10.49 0.38 0.56 (0.39) -- -- Class N...................... 10.48 0.38 0.56 (0.40) -- -- For the Year Ended September 30, 2000 Class E...................... 10.49 0.52 0.02 (0.51) -- -- Class H...................... 10.46 0.42 0.02 (0.41) -- -- Class L...................... 10.47 0.50 0.02 (0.49) -- -- Class M...................... 10.46 0.42 0.02 (0.41) -- -- Class N...................... 10.45 0.42 0.02 (0.41) -- -- For the Year Ended September 30, 1999 Class E...................... 11.38 0.50 (0.78) (0.49) (0.12) -- Class H...................... 11.35 0.39 (0.78) (0.38) (0.12) -- Class L...................... 11.37 0.47 (0.78) (0.47) (0.12) -- Class M...................... 11.36 0.38 (0.78) (0.38) (0.12) -- Class N...................... 11.34 0.39 (0.78) (0.38) (0.12) -- THE HARTFORD TAX-FREE NEW YORK FUND From inception October 31, 2002, through October 31, 2003 Class A...................... 10.00 0.34 0.16 (0.35) -- -- Class B...................... 10.00 0.27 0.16 (0.28) -- -- Class C...................... 10.00 0.27 0.16 (0.28) -- -- RATIOS AND SUPPLEMENTAL DATA ------------------------------------------------------------------------------------------ RATIO OF RATIO OF RATIO OF EXPENSES EXPENSES NET NET ASSET NET ASSETS TO AVERAGE TO AVERAGE INVESTMENT VALUE AT AT END OF NET ASSETS NET ASSETS INCOME PORTFOLIO END OF TOTAL PERIOD BEFORE AFTER TO AVERAGE TURNOVER PERIOD RETURN(C) (000'S) WAIVERS WAIVERS NET ASSETS RATE(E) --------- --------- ---------- ---------- ---------- ---------- --------- THE HARTFORD TAX-FREE NATIONAL FUND For the Year Ended October 31, 2003 Class A...................... $11.07 4.18% $ 21,457 1.61% 1.15% 3.75% 35% Class B...................... 11.00 3.43 6,598 2.33 1.85 3.05 -- Class C...................... 11.02 3.42 7,588 2.21 1.85 3.06 -- Class E...................... 11.05 4.39 33,998 0.92 0.85 4.00 -- Class H...................... 11.03 3.47 1,747 1.92 1.84 2.99 -- Class L...................... 11.04 4.24 7,454 1.18 1.10 3.76 -- Class M...................... 11.03 3.47 1,235 1.92 1.84 3.01 -- Class N...................... 11.01 3.48 607 1.93 1.85 3.01 -- Class Y...................... 11.06 4.53 1 1.17 0.85 4.06 -- For the Period February 19, 2002 through October 31, 2002 Class A...................... 11.28 5.17(d) 12,192 1.63(b) 1.15(b) 3.31(b) 47 Class B...................... 11.21 4.18(d) 3,764 2.33(b) 1.85(b) 2.54(b) -- Class C...................... 11.23 4.37(d) 3,121 2.18(b) 1.85(b) 2.57(b) -- Class Y...................... 11.28 5.52(d) 1 0.63(b) 0.63(b) 4.15(b) -- For the Year Ended October 31, 2002 Class E...................... 11.27 4.93 39,423 0.94 0.94 3.70 47 Class H...................... 11.24 3.99 2,895 1.95 1.85 2.83 -- Class L...................... 11.25 4.72 7,360 1.19 1.15 3.50 -- Class M...................... 11.24 3.99 1,552 1.95 1.85 2.80 -- Class N...................... 11.22 3.99 600 1.95 1.85 2.80 -- For the One-Month Period Ended October 31, 2001 Class E...................... 11.18 1.35(d) 42,441 0.95(b) 0.95(b) 4.21(b) -- Class H...................... 11.15 1.36(d) 4,679 1.95(b) 1.95(b) 3.21(b) -- Class L...................... 11.16 1.33(d) 8,029 1.20(b) 1.20(b) 3.96(b) -- Class M...................... 11.15 1.27(d) 1,723 1.95(b) 1.95(b) 3.21(b) -- Class N...................... 11.13 1.27(d) 538 1.95(b) 1.95(b) 3.21(b) -- For the Year Ended September 30, 2001 Class E...................... 11.07 10.18 42,331 0.97 0.97 4.49 28 Class H...................... 11.03 9.03 4,853 1.97 1.97 3.49 -- Class L...................... 11.05 9.91 7,892 1.22 1.22 4.24 -- Class M...................... 11.04 9.14 1,701 1.97 1.97 3.49 -- Class N...................... 11.02 9.06 469 1.97 1.97 3.49 -- For the Year Ended September 30, 2000 Class E...................... 10.52 5.33 42,212 0.96 0.96 4.96 64 Class H...................... 10.49 4.29 5,021 1.96 1.96 3.96 -- Class L...................... 10.50 5.09 6,509 1.21 1.21 4.71 -- Class M...................... 10.49 4.29 1,540 1.96 1.96 3.96 -- Class N...................... 10.48 4.30 289 1.96 1.96 3.96 -- For the Year Ended September 30, 1999 Class E...................... 10.49 (2.56) 47,140 0.94 0.94 4.56 89 Class H...................... 10.46 (3.52) 6,019 1.94 1.94 3.56 -- Class L...................... 10.47 (2.87) 8,247 1.19 1.19 4.31 -- Class M...................... 10.46 (3.61) 1,752 1.94 1.94 3.56 -- Class N...................... 10.45 (3.53) 548 1.94 1.94 3.56 -- THE HARTFORD TAX-FREE NEW YORK FUND From inception October 31, 2002, through October 31, 2003 Class A...................... 10.15 5.03 8,602 1.63(b) 0.95(b) 3.34(b) 54 Class B...................... 10.15 4.30 1,051 2.38(b) 1.65(b) 2.64(b) -- Class C...................... 10.15 4.30 1,393 2.26(b) 1.65(b) 2.67(b) --
--------------- (a) Information presented relates to a share of capital share outstanding throughout the indicated period. (b) Annualized. (c) Assumes initial investment at net asset value at the beginning of each period, reinvestment of all distributions, the complete redemption of the investment at net asset value at the end of each period and no sales charge. Total return would be reduced if sales charges were taken into account. (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 have been restated to reflect a reverse stock split for Class C shares effective February 11, 1999. (g) Per share amounts have been calculated using average shares outstanding method. (h) Expense ratio includes a practical waiver of 12b-1 fees. 207 HARTFORD MUTUAL FUNDS, INC. AND HARTFORD MUTUAL FUNDS II, INC. FINANCIAL HIGHLIGHTS -- (CONTINUED) --------------------------------------------------------------------------------
SELECTED PER-SHARE DATA(A) ---------------------------------------------------------------------------------- NET REALIZED AND DISTRIBUTIONS NET ASSET NET UNREALIZED DIVIDENDS FROM VALUE AT INVESTMENT GAIN FROM NET REALIZED DISTRIBUTIONS BEGINNING INCOME (LOSS) ON INVESTMENT CAPITAL FROM OF PERIOD (LOSS) INVESTMENTS INCOME GAINS CAPITAL --------- ---------- ------------ ---------- ------------- ------------- THE HARTFORD TOTAL RETURN BOND FUND For the Year Ended October 31, 2003 Class A...................... $10.78 $ 0.49 $ 0.48 $(0.50) $(0.11) $ -- Class B...................... 10.73 0.42 0.47 (0.42) (0.11) -- Class C...................... 10.77 0.42 0.46 (0.42) (0.11) -- Class Y...................... 10.87 0.53 0.50 (0.55) (0.11) -- For the Year Ended October 31, 2002(g) Class A...................... 10.90 0.47 -- (0.52) (0.07) -- Class B...................... 10.85 0.40 -- (0.45) (0.07) -- Class C...................... 10.89 0.40 -- (0.45) (0.07) -- Class Y...................... 10.99 0.45 0.08 (0.58) (0.07) -- For the Year Ended October 31, 2001 Class A...................... 10.14 0.55 0.73 (0.52) -- -- Class B...................... 10.10 0.48 0.72 (0.45) -- -- Class C...................... 10.14 0.49 0.71 (0.45) -- -- Class Y...................... 10.22 0.61 0.73 (0.57) -- -- For the Ten Months Ended October 31, 2000 Class A...................... 9.93 0.50 0.19 (0.48) -- -- Class B...................... 9.90 0.43 0.20 (0.43) -- -- Class C...................... 9.93 0.44 0.20 (0.43) -- -- Class Y...................... 9.99 0.54 0.20 (0.51) -- -- For the Year Ended December 31, 1999 Class A...................... 10.76 0.54 (0.83) (0.52) (0.02) -- Class B...................... 10.72 0.47 (0.82) (0.45) (0.02) -- Class C...................... 10.76(f) 0.47(f) (0.82)(f) (0.46)(f) (0.02)(f) -- Class Y...................... 10.81 0.55 (0.80) (0.55) (0.02) -- For the Year Ended December 31, 1998 Class A...................... 10.61 0.54 0.23 (0.54) (0.08) -- Class B...................... 10.58 0.47 0.22 (0.47) (0.08) -- Class Y...................... 10.64 0.58 0.24 (0.57) (0.08) -- From inception August 1, 1998, through December 31, 1998 Class C...................... 10.70(f) 0.19(f) 0.15(f) (0.21)(f) (0.07)(f) -- RATIOS AND SUPPLEMENTAL DATA ------------------------------------------------------------------------------------------ RATIO OF RATIO OF RATIO OF EXPENSES EXPENSES NET NET ASSET NET ASSETS TO AVERAGE TO AVERAGE INVESTMENT VALUE AT AT END OF NET ASSETS NET ASSETS INCOME PORTFOLIO END OF TOTAL PERIOD BEFORE AFTER TO AVERAGE TURNOVER PERIOD RETURN(C) (000'S) WAIVERS WAIVERS NET ASSETS RATE(E) --------- --------- ---------- ---------- ---------- ---------- --------- THE HARTFORD TOTAL RETURN BOND FUND For the Year Ended October 31, 2003 Class A...................... $11.14 9.16% $ 268,655 1.40% 1.25% 3.39% 199% Class B...................... 11.09 8.44 106,077 2.13 1.95 2.70 -- Class C...................... 11.12 8.31 110,214 2.01 1.95 2.71 -- Class Y...................... 11.24 9.68 60,125 0.81 0.80 3.82 -- For the Year Ended October 31, 2002(g) Class A...................... 10.78 4.50 215,083 1.42 1.25 4.65 149 Class B...................... 10.73 3.77 98,028 2.10 1.95 3.92 -- Class C...................... 10.77 3.80 107,479 1.98 1.95 3.92 -- Class Y...................... 10.87 5.01 39,778 0.78 0.78 5.16 -- For the Year Ended October 31, 2001 Class A...................... 10.90 12.96 122,423 1.30 1.25 5.00 196 Class B...................... 10.85 12.12 55,999 1.96 1.95 4.30 -- Class C...................... 10.89 12.12 62,222 1.97 1.95 4.30 -- Class Y...................... 10.99 13.46 43,635 0.75 0.75 5.50 -- For the Ten Months Ended October 31, 2000 Class A...................... 10.14 7.17(d) 37,290 1.29(b) 1.24(b) 5.88(b) 140 Class B...................... 10.10 6.48(d) 22,197 1.95(b) 1.95(b) 5.17(b) -- Class C...................... 10.14 6.55(d) 16,886 1.94(b) 1.94(b) 5.18(b) -- Class Y...................... 10.22 7.60(d) 30,334 0.77(b) 0.77(b) 6.34(b) -- For the Year Ended December 31, 1999 Class A...................... 9.93 (2.71) 57,320 1.29 1.24 5.32 113 Class B...................... 9.90 (3.30) 21,442 1.94 1.94 4.62 -- Class C...................... 9.93(f) (3.36) 18,136 1.97 1.95 4.62 -- Class Y...................... 9.99 (2.31) 28,052 0.80 0.80 5.77 -- For the Year Ended December 31, 1998 Class A...................... 10.76 7.48 47,143 1.32 1.25 5.04 135 Class B...................... 10.72 6.70 16,772 2.01 1.95 4.32 -- Class Y...................... 10.81 7.98 10,766 0.84 0.80 5.48 -- From inception August 1, 1998, through December 31, 1998 Class C...................... 10.76(f) 3.19(d) 5,420 2.13(b) 1.95(b) 4.13(b) --
--------------- (a) Information presented relates to a share of capital share outstanding throughout the indicated period. (b) Annualized. (c) Assumes initial investment at net asset value at the beginning of each period, reinvestment of all distributions, the complete redemption of the investment at net asset value at the end of each period and no sales charge. Total return would be reduced if sales charges were taken into account. (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 have been restated to reflect a reverse stock split for Class C shares effective February 11, 1999. (g) Per share amounts have been calculated using average shares outstanding method. (h) Expense ratio includes a practical waiver of 12b-1 fees. See Notes to Financial Statements. 208 --------------------------------------------------------------------------------
SELECTED PER-SHARE DATA(A) ---------------------------------------------------------------------------------- NET REALIZED AND DISTRIBUTIONS NET ASSET NET UNREALIZED DIVIDENDS FROM VALUE AT INVESTMENT GAIN FROM NET REALIZED DISTRIBUTIONS BEGINNING INCOME (LOSS) ON INVESTMENT CAPITAL FROM OF PERIOD (LOSS) INVESTMENTS INCOME GAINS CAPITAL --------- ---------- ------------ ---------- ------------- ------------- THE HARTFORD U.S. GOVERNMENT SECURITIES FUND For the Year Ended October 31, 2003 Class A...................... $ 9.88 $ 0.41 $(0.21) $(0.41) $ -- $ -- Class B...................... 9.84 0.33 (0.19) (0.34) -- -- Class C...................... 9.84 0.33 (0.20) (0.34) -- -- Class E...................... 9.87 0.45 (0.20) (0.46) -- -- Class H...................... 9.83 0.35 (0.19) (0.36) -- -- Class L...................... 9.87 0.42 (0.19) (0.43) -- -- Class M...................... 9.84 0.35 (0.20) (0.36) -- -- Class N...................... 9.84 0.35 (0.20) (0.36) -- -- Class Y...................... 9.89 0.45 (0.20) (0.46) -- -- For the Period February 19, 2002 through October 31, 2002 Class A...................... 9.50 0.26 0.38 (0.26) -- -- Class B...................... 9.46 0.21 0.38 (0.21) -- -- Class C...................... 9.46 0.21 0.38 (0.21) -- -- Class Y...................... 9.50 0.32 0.36 (0.29) -- -- For the Year Ended October 31, 2002 Class E...................... 9.67 0.42 0.19 (0.41) -- -- Class H...................... 9.64 0.32 0.19 (0.32) -- -- Class L...................... 9.67 0.39 0.20 (0.39) -- -- Class M...................... 9.64 0.32 0.20 (0.32) -- -- Class N...................... 9.64 0.32 0.20 (0.32) -- -- For the Three-Month Period Ended October 31, 2001 Class E...................... 9.37 0.13 0.30 (0.13) -- -- Class H...................... 9.34 0.10 0.30 (0.10) -- -- Class L...................... 9.37 0.12 0.30 (0.12) -- -- Class M...................... 9.34 0.10 0.30 (0.10) -- -- Class N...................... 9.34 0.10 0.30 (0.10) -- -- For the Year Ended July 31, 2001 Class E...................... 8.86 0.54 0.52 (0.55) -- -- Class H...................... 8.83 0.45 0.52 (0.46) -- -- Class L...................... 8.86 0.52 0.52 (0.53) -- -- Class M...................... 8.83 0.45 0.52 (0.46) -- -- Class N...................... 8.83 0.45 0.52 (0.46) -- -- For the Year Ended July 31, 2000 Class E...................... 8.96 0.52 (0.10) (0.52) -- -- Class H...................... 8.94 0.43 (0.10) (0.44) -- -- Class L...................... 8.96 0.50 (0.10) (0.50) -- -- Class M...................... 8.94 0.43 (0.10) (0.44) -- -- Class N...................... 8.93 0.44 (0.10) (0.44) -- -- For the Year Ended July 31, 1999 Class E...................... 9.30 0.49 (0.34) (0.49) -- -- Class H...................... 9.28 0.40 (0.34) (0.40) -- -- Class L...................... 9.30 0.47 (0.34) (0.47) -- -- Class M...................... 9.28 0.40 (0.34) (0.40) -- -- Class N...................... 9.27 0.40 (0.34) (0.40) -- -- RATIOS AND SUPPLEMENTAL DATA ------------------------------------------------------------------------------------------ RATIO OF RATIO OF RATIO OF EXPENSES EXPENSES NET NET ASSET NET ASSETS TO AVERAGE TO AVERAGE INVESTMENT VALUE AT AT END OF NET ASSETS NET ASSETS INCOME PORTFOLIO END OF TOTAL PERIOD BEFORE AFTER TO AVERAGE TURNOVER PERIOD RETURN(C) (000'S) WAIVERS WAIVERS NET ASSETS RATE(E) --------- --------- ---------- ---------- ---------- ---------- --------- THE HARTFORD U.S. GOVERNMENT SECURITIES FUND For the Year Ended October 31, 2003 Class A...................... $ 9.67 2.06% $ 65,337 1.48% 1.20% 4.11% 108% Class B...................... 9.64 1.45 38,210 2.21 1.90 3.41 -- Class C...................... 9.63 1.34 26,626 2.07 1.90 3.43 -- Class E...................... 9.66 2.49 135,954 0.81 0.81 4.49 -- Class H...................... 9.63 1.57 6,283 1.80 1.80 3.50 -- Class L...................... 9.67 2.32 43,202 1.06 1.06 4.24 -- Class M...................... 9.63 1.47 4,588 1.80 1.80 3.50 -- Class N...................... 9.63 1.47 1,388 1.80 1.80 3.49 -- Class Y...................... 9.68 2.51 1 0.87 0.80 4.50 -- For the Period February 19, 2002 through October 31, 2002 Class A...................... 9.88 6.87(d) 75,245 1.59(b) 1.20(b) 3.58(b) 218 Class B...................... 9.84 6.36(d) 39,276 2.28(b) 1.90(b) 2.87(b) -- Class C...................... 9.84 6.36(d) 40,708 2.11(b) 1.90(b) 2.86(b) -- Class Y...................... 9.89 7.32(d) 1 0.74(b) 0.74(b) 4.36(b) -- For the Year Ended October 31, 2002 Class E...................... 9.87 6.55 156,085 0.81 0.81 4.45 218 Class H...................... 9.83 5.41 9,319 1.81 1.81 3.45 -- Class L...................... 9.87 6.29 49,048 1.06 1.06 4.20 -- Class M...................... 9.84 5.51 6,660 1.81 1.81 3.44 -- Class N...................... 9.84 5.52 1,717 1.81 1.81 3.47 -- For the Three-Month Period Ended October 31, 2001 Class E...................... 9.67 4.57(d) 187,712 0.79(b) 0.79(b) 5.25(b) 32 Class H...................... 9.64 4.31(d) 10,770 1.79(b) 1.79(b) 4.25(b) -- Class L...................... 9.67 4.50(d) 52,579 1.04(b) 1.04(b) 5.01(b) -- Class M...................... 9.64 4.32(d) 6,582 1.79(b) 1.79(b) 4.25(b) -- Class N...................... 9.64 4.31(d) 2,275 1.79(b) 1.79(b) 4.25(b) -- For the Year Ended July 31, 2001 Class E...................... 9.37 12.30 182,170 0.79 0.79 5.93 136 Class H...................... 9.34 11.24 10,078 1.79 1.79 4.92 -- Class L...................... 9.37 12.02 47,798 1.04 1.04 5.67 -- Class M...................... 9.34 11.24 5,284 1.79 1.79 4.92 -- Class N...................... 9.34 11.24 1,603 1.79 1.79 4.92 -- For the Year Ended July 31, 2000 Class E...................... 8.86 4.91 184,520 0.79 0.79 5.96 181 Class H...................... 8.83 3.79 8,345 1.79 1.79 4.96 -- Class L...................... 8.86 4.62 43,620 1.04 1.04 5.71 -- Class M...................... 8.83 3.79 4,264 1.79 1.79 4.96 -- Class N...................... 8.83 3.91 1,606 1.79 1.79 4.93 -- For the Year Ended July 31, 1999 Class E...................... 8.96 1.56 254,096 0.78 0.78 5.32 75 Class H...................... 8.94 0.53 10,262 1.78 1.78 4.32 -- Class L...................... 8.96 1.30 49,274 1.03 1.03 5.07 -- Class M...................... 8.94 0.53 4,703 1.78 1.78 4.32 -- Class N...................... 8.93 0.52 3,071 1.78 1.78 4.32 --
--------------- (a) Information presented relates to a share of capital share outstanding throughout the indicated period. (b) Annualized. (c) Assumes initial investment at net asset value at the beginning of each period, reinvestment of all distributions, the complete redemption of the investment at net asset value at the end of each period and no sales charge. Total return would be reduced if sales charges were taken into account. (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 have been restated to reflect a reverse stock split for Class C shares effective February 11, 1999. (g) Per share amounts have been calculated using average shares outstanding method. (h) Expense ratio includes a practical waiver of 12b-1 fees. 209 HARTFORD MUTUAL FUNDS, INC. AND HARTFORD MUTUAL FUNDS II, INC. FINANCIAL HIGHLIGHTS -- (CONTINUED) --------------------------------------------------------------------------------
SELECTED PER-SHARE DATA(A) ---------------------------------------------------------------------------------- NET REALIZED AND DISTRIBUTIONS NET ASSET NET UNREALIZED DIVIDENDS FROM VALUE AT INVESTMENT GAIN FROM NET REALIZED DISTRIBUTIONS BEGINNING INCOME (LOSS) ON INVESTMENT CAPITAL FROM OF PERIOD (LOSS) INVESTMENTS INCOME GAINS CAPITAL --------- ---------- ------------ ---------- ------------- ------------- THE HARTFORD VALUE FUND For the Year Ended October 31, 2003(g) Class A...................... $ 7.59 $ 0.08 $ 1.31 $(0.06) $ -- $ -- Class B...................... 7.51 0.03 1.29 -- -- -- Class C...................... 7.51 0.03 1.29 -- -- -- Class Y...................... 7.64 0.16 1.25 (0.10) -- -- For the Year Ended October 31, 2002(g) Class A...................... 9.02 0.05 (1.43) -- (0.05) -- Class B...................... 8.99 (0.02) (1.41) -- (0.05) -- Class C...................... 8.99 (0.02) (1.41) -- (0.05) -- Class Y...................... 9.04 0.09 (1.44) -- (0.05) -- From inception April 30, 2001, through October 31, 2001 Class A...................... 10.00 0.01 (0.99) -- -- -- Class B...................... 10.00 -- (1.01) -- -- -- Class C...................... 10.00 -- (1.01) -- -- -- Class Y...................... 10.00 0.05 (1.01) -- -- -- RATIOS AND SUPPLEMENTAL DATA ------------------------------------------------------------------------------------------ RATIO OF RATIO OF RATIO OF EXPENSES EXPENSES NET NET ASSET NET ASSETS TO AVERAGE TO AVERAGE INVESTMENT VALUE AT AT END OF NET ASSETS NET ASSETS INCOME PORTFOLIO END OF TOTAL PERIOD BEFORE AFTER TO AVERAGE TURNOVER PERIOD RETURN(C) (000'S) WAIVERS WAIVERS NET ASSETS RATE(E) --------- --------- ---------- ---------- ---------- ---------- --------- THE HARTFORD VALUE FUND For the Year Ended October 31, 2003(g) Class A...................... $ 8.92 18.43% $ 42,101 1.57% 1.45% 1.02% 35% Class B...................... 8.83 17.58 7,305 2.30 2.15 0.32 -- Class C...................... 8.83 17.58 10,231 2.18 2.15 0.32 -- Class Y...................... 8.95 18.66 27 1.00 1.00 1.46 -- For the Year Ended October 31, 2002(g) Class A...................... 7.59 (15.42) 30,010 1.63 1.45 0.69 35 Class B...................... 7.51 (16.03) 5,222 2.31 2.15 (0.02) -- Class C...................... 7.51 (16.03) 9,110 2.21 2.15 (0.04) -- Class Y...................... 7.64 (15.05) 230 0.98 0.98 1.09 -- From inception April 30, 2001, through October 31, 2001 Class A...................... 9.02 (9.80)(d) 13,728 1.66(b) 1.45(b) 0.53(b) 12 Class B...................... 8.99 (10.10)(d) 2,029 2.36(b) 2.15(b) (0.17)(b) -- Class C...................... 8.99 (10.10)(d) 4,769 2.34(b) 2.15(b) (0.17)(b) -- Class Y...................... 9.04 (9.60)(d) 271 1.09(b) 1.00(b) 0.98(b) --
--------------- (a) Information presented relates to a share of capital share outstanding throughout the indicated period. (b) Annualized. (c) Assumes initial investment at net asset value at the beginning of each period, reinvestment of all distributions, the complete redemption of the investment at net asset value at the end of each period and no sales charge. Total return would be reduced if sales charges were taken into account. (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 have been restated to reflect a reverse stock split for Class C shares effective February 11, 1999. (g) Per share amounts have been calculated using average shares outstanding method. (h) Expense ratio includes a practical waiver of 12b-1 fees. See Notes to Financial Statements. 210 --------------------------------------------------------------------------------
SELECTED PER-SHARE DATA(A) ---------------------------------------------------------------------------------- NET REALIZED AND DISTRIBUTIONS NET ASSET NET UNREALIZED DIVIDENDS FROM VALUE AT INVESTMENT GAIN FROM NET REALIZED DISTRIBUTIONS BEGINNING INCOME (LOSS) ON INVESTMENT CAPITAL FROM OF PERIOD (LOSS) INVESTMENTS INCOME GAINS CAPITAL --------- ---------- ------------ ---------- ------------- ------------- THE HARTFORD VALUE OPPORTUNITIES FUND For the Year Ended October 31, 2003 Class A...................... $ 9.26 $(0.01) $ 2.90 $ -- $ -- $ -- Class B...................... 8.84 (0.04) 2.73 -- -- -- Class C...................... 8.85 (0.04) 2.72 -- -- -- Class H...................... 8.85 (0.08) 2.77 -- -- -- Class L...................... 9.26 (0.01) 2.90 -- -- -- Class M...................... 8.85 (0.08) 2.76 -- -- -- Class N...................... 8.85 (0.08) 2.77 -- -- -- Class Y...................... 9.30 0.01 2.91 -- -- -- For the Period February 19, 2002 through October 31, 2002 Class A...................... 11.73 -- (2.47) -- -- -- Class B...................... 11.26 (0.02) (2.40) -- -- -- Class C...................... 11.26 (0.02) (2.39) -- -- -- Class Y...................... 11.73 0.05 (2.48) -- -- -- For the Year Ended October 31, 2002 Class H...................... 11.58 (0.11) (1.81) -- (0.81) -- Class L...................... 11.99 -- (1.92) -- (0.81) -- Class M...................... 11.57 (0.08) (1.83) -- (0.81) -- Class N...................... 11.57 (0.13) (1.78) -- (0.81) -- For the Two-Month Period Ended October 31, 2001 Class H...................... 12.86 (0.02) (1.26) -- -- -- Class L...................... 13.30 -- (1.31) -- -- -- Class M...................... 12.85 (0.02) (1.26) -- -- -- Class N...................... 12.86 (0.03) (1.26) -- -- -- For the Year Ended August 31, 2001 Class H...................... 13.95 (0.07) 0.30 -- (1.32) -- Class L...................... 14.30 0.03 0.31 (0.02) (1.32) -- Class M...................... 13.94 (0.07) 0.30 -- (1.32) -- Class N...................... 13.95 (0.07) 0.30 -- (1.32) -- For the Year Ended August 31, 2000 Class H...................... 13.07 (0.08) 1.89 -- (0.93) -- Class L...................... 13.28 0.01 1.94 -- (0.93) -- Class M...................... 13.06 (0.08) 1.89 -- (0.93) -- Class N...................... 13.07 (0.08) 1.89 -- (0.93) -- For the Year Ended August 31, 1999 Class H...................... 11.72 (0.08) 2.73 -- (1.30) -- Class L...................... 11.85 0.05 2.73 (0.05) (1.30) -- Class M...................... 11.71 (0.08) 2.73 -- (1.30) -- Class N...................... 11.72 (0.08) 2.73 -- (1.30) -- For the Year Ended August 31, 1998 Class H...................... 13.39 (0.01) (0.30) -- (1.36) -- Class L...................... 13.51 0.09 (0.30) (0.09) (1.36) -- Class M...................... 13.39 (0.02) (0.30) -- (1.36) -- Class N...................... 13.39 (0.01) (0.30) -- (1.36) -- RATIOS AND SUPPLEMENTAL DATA ------------------------------------------------------------------------------------------ RATIO OF RATIO OF RATIO OF EXPENSES EXPENSES NET NET ASSET NET ASSETS TO AVERAGE TO AVERAGE INVESTMENT VALUE AT AT END OF NET ASSETS NET ASSETS INCOME PORTFOLIO END OF TOTAL PERIOD BEFORE AFTER TO AVERAGE TURNOVER PERIOD RETURN(C) (000'S) WAIVERS WAIVERS NET ASSETS RATE(E) --------- --------- ---------- ---------- ---------- ---------- --------- THE HARTFORD VALUE OPPORTUNITIES FUND For the Year Ended October 31, 2003 Class A...................... $12.15 31.21% $ 5,917 1.92% 1.45% (0.10)% 57% Class B...................... 11.53 30.43 1,932 2.63 2.15 (0.80) -- Class C...................... 11.53 30.28 1,613 2.51 2.15 (0.81) -- Class H...................... 11.54 30.40 6,526 2.26 2.15 (0.82) -- Class L...................... 12.15 31.21 22,701 1.51 1.45 (0.11) -- Class M...................... 11.53 30.28 8,015 2.26 2.15 (0.82) -- Class N...................... 11.54 30.40 1,989 2.26 2.15 (0.82) -- Class Y...................... 12.22 31.40 1 1.33 1.25 0.08 -- For the Period February 19, 2002 through October 31, 2002 Class A...................... 9.26 (21.06)(d) 2,600 1.92(b) 1.45(b) 0.04(b) 70 Class B...................... 8.84 (21.45)(d) 481 2.61(b) 2.15(b) (0.71)(b) -- Class C...................... 8.85 (21.41)(d) 430 2.48(b) 2.15(b) (0.75)(b) -- Class Y...................... 9.30 (20.75)(d) 1 1.13(b) 1.00(b) 0.49(b) -- For the Year Ended October 31, 2002 Class H...................... 8.85 (17.99) 5,634 2.17 2.15 (0.82) 70 Class L...................... 9.26 (17.34) 19,684 1.43 1.43 (0.11) -- Class M...................... 8.85 (17.92) 6,669 2.18 2.15 (0.82) -- Class N...................... 8.85 (17.92) 1,749 2.18 2.15 (0.83) -- For the Two-Month Period Ended October 31, 2001 Class H...................... 11.58 (9.95)(d) 7,914 2.18(b) 2.18(b) (0.89)(b) 12 Class L...................... 11.99 (9.85)(d) 27,982 1.43(b) 1.43(b) (0.14)(b) -- Class M...................... 11.57 (9.96)(d) 8,700 2.18(b) 2.18(b) (0.89)(b) -- Class N...................... 11.57 (10.03)(d) 2,636 2.18(b) 2.18(b) (0.89)(b) -- For the Year Ended August 31, 2001 Class H...................... 12.86 1.53 8,967 2.16 2.16 (0.70) 177 Class L...................... 13.30 2.29 30,480 1.41 1.41 0.05 -- Class M...................... 12.85 1.53 9,668 2.16 2.16 (0.70) -- Class N...................... 12.86 1.53 2,935 2.16 2.16 (0.70) -- For the Year Ended August 31, 2000 Class H...................... 13.95 14.90 8,796 2.17 2.17 (0.61) 228 Class L...................... 14.30 15.76 39,975 1.42 1.42 0.14 -- Class M...................... 13.94 14.90 7,633 2.17 2.17 (0.61) -- Class N...................... 13.95 14.90 2,662 2.17 2.17 (0.61) -- For the Year Ended August 31, 1999 Class H...................... 13.07 23.18 8,045 2.23 2.23 (0.43) 266 Class L...................... 13.28 24.10 34,302 1.48 1.48 0.32 -- Class M...................... 13.06 23.20 6,662 2.23 2.23 (0.43) -- Class N...................... 13.07 23.18 2,486 2.23 2.23 (0.43) -- For the Year Ended August 31, 1998 Class H...................... 11.72 (3.24) 7,016 2.27 2.27 (0.20) 260 Class L...................... 11.85 (2.52) 22,449 1.52 1.52 0.55 -- Class M...................... 11.71 (3.33) 4,794 2.27 2.27 (0.20) -- Class N...................... 11.72 (3.24) 1,991 2.27 2.27 (0.20) --
--------------- (a) Information presented relates to a share of capital share outstanding throughout the indicated period. (b) Annualized. (c) Assumes initial investment at net asset value at the beginning of each period, reinvestment of all distributions, the complete redemption of the investment at net asset value at the end of each period and no sales charge. Total return would be reduced if sales charges were taken into account. (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 have been restated to reflect a reverse stock split for Class C shares effective February 11, 1999. (g) Per share amounts have been calculated using average shares outstanding method. (h) Expense ratio includes a practical waiver of 12b-1 fees. 211 REPORT OF INDEPENDENT AUDITORS TO THE SHAREHOLDERS AND BOARD OF DIRECTORS THE HARTFORD MUTUAL FUNDS, INC. AND THE HARTFORD MUTUAL FUNDS II, INC. -------------------------------------------------------------------------------- We have audited the accompanying statements of assets and liabilities, including the schedules of investments of The Hartford Advisers Fund, The Hartford Capital Appreciation Fund, The Hartford Disciplined Equity Fund, The Hartford Dividend and Growth Fund, The Hartford Equity Income Fund, The Hartford Focus Fund, The Hartford Global Communications Fund, The Hartford Global Financial Services Fund, The Hartford Global Health Fund, The Hartford Global Leaders Fund, The Hartford Global Technology Fund, The Hartford Growth Fund, The Hartford Growth Opportunities Fund, The Hartford High Yield Fund, The Hartford Income Fund, The Hartford Inflation Plus Fund, The Hartford International Capital Appreciation Fund, The Hartford International Opportunities Fund, The Hartford International Small Company Fund, The Hartford MidCap Fund, The Hartford MidCap Value Fund, The Hartford Money Market Fund, The Hartford Short Duration Fund, The Hartford Small Company Fund, The Hartford SmallCap Growth Fund, The Hartford Stock Fund, The Hartford Tax-Free California Fund, The Hartford Tax-Free Minnesota Fund, The Hartford Tax-Free National Fund, The Hartford Tax-Free New York Fund, The Hartford Total Return Bond Fund, The Hartford U.S. Government Securities Fund, The Hartford Value Fund and The Hartford Value Opportunities Fund (certain funds within The Hartford Mutual Funds, Inc. and The Hartford Mutual Funds II, Inc.) (the "Funds") as of October 31, 2003, and the related statements of operations, statements of changes in net assets and financial highlights for each of the periods indicated therein, except as noted below. These financial statements and financial highlights are the responsibility of the Funds' management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits. The financial highlights for the periods presented through October 31, 2001, were audited by other auditors whose reports dated December 6, 2001 and December 7, 2001, expressed unqualified opinions on those financial highlights. We conducted our audits in accordance with auditing standards generally accepted in the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free from material misstatement. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements and financial highlights. Our procedures included confirmation of securities owned as of October 31, 2003, by correspondence with the custodian and brokers or by other appropriate auditing procedures where replies from brokers were not received. An audit includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements and financial highlights audited by us as referred to above present fairly, in all material respects, the financial position of the Funds listed above constituting The Hartford Mutual Funds, Inc. and The Hartford Mutual Funds II, Inc. at October 31, 2003, the results of their operations, the changes in their net assets and their financial highlights for each of the periods indicated herein, in conformity with accounting principles generally accepted in the United States. /s/ ERNST & YOUNG LLP Minneapolis, Minnesota December 5, 2003 212 THE HARTFORD MUTUAL FUNDS, INC. AND THE HARTFORD MUTUAL FUNDS II, INC. DIRECTOR AND OFFICER INFORMATION (UNAUDITED) -------------------------------------------------------------------------------- The Boards of Directors ("Boards") are responsible for overall management of the Funds. The Boards may exercise all of the Funds' powers, except those conferred solely upon or reserved to the shareholders. The following table provides information about the Funds' directors and officers. The business address for all directors and officers is c/o Hartford Mutual Funds, P.O. Box 2999, Hartford, CT 06104-2999, except for Tamara L. Fagely and Robert W. Beltz, Jr., whose business address is 500 Bielenberg Dr., Woodbury, MN 55125.
------------------------------------------------------------------------------------------------------------------------------------ NON-INTERESTED DIRECTORS ------------------------------------------------------------------------------------------------------------------------------------ TERM OF NUMBER OF OFFICE(1) AND PORTFOLIOS IN POSITION HELD LENGTH OF FUND COMPLEX OTHER WITH THE TIME SERVED: PRINCIPAL OCCUPATION(S) OVERSEEN BY DIRECTORSHIPS NAME AND AGE COMPANIES MF(2) MFII(3) DURING PAST 5 YEARS DIRECTOR HELD BY DIRECTOR ------------------------------------------------------------------------------------------------------------------------------------ LYNN S. BIRDSONG(4) Director 2003 2003 From 1979 to 2002, Mr. Birdsong was a 72 N/A (age 57) managing director of Zurich Scudder Investments, an investment management firm. In 2003, Mr. Birdsong became an independent director of the Atlantic Whitehall Funds and The Japan Fund; during his employment with Scudder, he was an interested director of The Japan Fund. Since 1981, Mr. Birdsong has been a partner in Birdsong Company, an advertising specialty firm. He is also a Director of The Hartford Income Shares Fund, Inc., Hartford Series Fund, Inc. and Hartford HLS Series Fund II, Inc. ------------------------------------------------------------------------------------------------------------------------------------ WINIFRED E. COLEMAN Director 1996 2002 Ms. Coleman has served as President of 72 N/A (age 71) Saint Joseph College since 1991 and President of Cashel House, Ltd. (retail) since 1985. She is also a Director of The Hartford Income Shares Fund, Inc., Hartford Series Fund, Inc. and Hartford HLS Series Fund II, Inc. ------------------------------------------------------------------------------------------------------------------------------------ DR. ROBERT M. GAVIN Director 2002 1986 Dr. Gavin is an educational consultant. 72 Dr. Gavin is a (age 63) Prior to September 1, 2001, he was Director of Systems President of Cranbrook Education & Computer Community; and prior to July 1996, he Technology was President of Macalester College, St. Corporation. Paul, Minnesota. He is also a Director of The Hartford Income Shares Fund, Inc., Hartford Series Fund, Inc. and Hartford HLS Series Fund II, Inc. ------------------------------------------------------------------------------------------------------------------------------------ DUANE E. HILL Director 2001 2002 Mr. Hill is Partner Emeritus and a 72 N/A (age 58) founding partner of TSG Capital Group, a private equity investment firm that serves as sponsor and lead investor in leveraged buyouts of middle market companies. Mr. Hill is also a Partner of TSG Ventures L.P., a private equity investment company that invests primarily in minority-owned small businesses. He is also a Director of The Hartford Income Shares Fund, Inc., Hartford Series Fund, Inc. and Hartford HLS Series Fund II, Inc. ------------------------------------------------------------------------------------------------------------------------------------ PHILLIP O. PETERSON Director 2002 2000 Mr. Peterson is a mutual fund industry 72 N/A (age 58) consultant. He was a partner of KPMG LLP until July 1999. He is also a Director of The Hartford Income Shares Fund, Inc., Hartford Series Fund, Inc. and Hartford HLS Series Fund II, Inc. ------------------------------------------------------------------------------------------------------------------------------------
213 THE HARTFORD MUTUAL FUNDS, INC. AND THE HARTFORD MUTUAL FUNDS II, INC. DIRECTOR AND OFFICER INFORMATION (UNAUDITED) -- (CONTINUED) --------------------------------------------------------------------------------
NON-INTERESTED DIRECTORS ------------------------------------------------------------------------------------------------------------------------------------ TERM OF NUMBER OF OFFICE(1) AND PORTFOLIOS IN POSITION HELD LENGTH OF FUND COMPLEX OTHER WITH THE TIME SERVED: PRINCIPAL OCCUPATION(S) OVERSEEN BY DIRECTORSHIPS NAME AND AGE COMPANIES MF(2) MFII(3) DURING PAST 5 YEARS DIRECTOR HELD BY DIRECTOR ------------------------------------------------------------------------------------------------------------------------------------ MILLARD H. PRYOR, JR. Director 1996 2002 Mr. Pryor has served as Managing 72 Mr. Pryor is a (age 70) Director of Pryor & Clark Company (real Director of Infodata estate investment), Hartford, Systems, Inc. Connecticut, since June 1992. He is also (software company) a Director of The Hartford Income Shares and CompuDyne Fund, Inc., Hartford Series Fund, Inc. Corporation and Hartford HLS Series Fund II, Inc. (security products and services) and August Financial Holding Company (advisory services). ------------------------------------------------------------------------------------------------------------------------------------ JOHN K. SPRINGER(5) Director 1996 2002 Mr. Springer served as Chairman of N/A N/A (age 72) Medspan, Inc. (health maintenance organization) until March 2002. Until his retirement in May 2003, Mr. Springer served as a Director of The Hartford Income Shares Fund, Inc., Hartford Series Fund, Inc. and Hartford HLS Series Fund II, Inc. ------------------------------------------------------------------------------------------------------------------------------------
(1) Term of Office: Each director and officer may serve until his or her successor is elected and qualifies. (2) The Hartford Mutual Funds, Inc. (3) The Hartford Mutual Funds II, Inc. (4) Elected May 13, 2003. (5) Retired May 13, 2003. 214 THE HARTFORD MUTUAL FUNDS, INC. AND THE HARTFORD MUTUAL FUNDS II, INC. DIRECTOR AND OFFICER INFORMATION (UNAUDITED) -- (CONTINUED) --------------------------------------------------------------------------------
INTERESTED DIRECTORS AND OFFICERS --------------------------------------------------------------------------------------------------------------------------------- TERM OF NUMBER OF OFFICE(1) AND PORTFOLIOS IN POSITION HELD LENGTH OF FUND COMPLEX OTHER WITH THE TIME SERVED: PRINCIPAL OCCUPATION(S) OVERSEEN BY DIRECTORSHIPS NAME AND AGE COMPANIES MF(2) MFII(3) DURING PAST 5 YEARS DIRECTOR HELD BY DIRECTOR --------------------------------------------------------------------------------------------------------------------------------- THOMAS M. MARRA(4) Director and 2002 2002 Mr. Marra is President and Chief 72 Mr. Marra is a (age 45) Chairman of Operating Officer of Hartford member of the Board the Board Life, Inc. He is also a member of of Directors of The the Board of Directors and a Hartford. member of the Office of the Chairman for The Hartford Financial Services Group, Inc. ("The Hartford"), the parent company of Hartford Life. Mr. Marra was named President of Hartford Life in 2001 and COO in 2000, and served as Director of Hartford Life's Investment Products Division from 1998 to 2000. He was head of the company's Individual Life and Annuities Division from 1994 to 1998 after being promoted to Senior Vice President in 1994 and to Executive Vice President in 1996. Mr. Marra is also a Managing Member and President of Hartford Investment Financial Services, LLC ("HIFSCO") and HL Investment Advisors, LLC ("HL Advisors"). He is also a Director and Chairman of the Board of The Hartford Income Shares Fund, Inc., Hartford Series Fund, Inc. and Hartford HLS Series Fund II, Inc. --------------------------------------------------------------------------------------------------------------------------------- LOWNDES A. SMITH(4) Director 1996 2002 Mr. Smith served as Vice Chairman 72 N/A (age 64) of The Hartford from February 1997 to January 2002, as President and Chief Executive Officer of Hartford Life, Inc. from February 1997 to January 2002, and as President and Chief Operating Officer of The Hartford Life Insurance Companies from January 1989 to January 2002. Mr. Smith is also a Director of The Hartford Income Shares Fund, Inc., Hartford Series Fund, Inc. and Hartford HLS Series Fund II, Inc. ---------------------------------------------------------------------------------------------------------------------------------
215 THE HARTFORD MUTUAL FUNDS, INC. AND THE HARTFORD MUTUAL FUNDS II, INC. DIRECTOR AND OFFICER INFORMATION (UNAUDITED) -- (CONTINUED) --------------------------------------------------------------------------------
INTERESTED DIRECTORS AND OFFICERS --------------------------------------------------------------------------------------------------------------------------------- TERM OF NUMBER OF OFFICE(1) AND PORTFOLIOS IN POSITION HELD LENGTH OF FUND COMPLEX OTHER WITH THE TIME SERVED: PRINCIPAL OCCUPATION(S) OVERSEEN BY DIRECTORSHIPS NAME AND AGE COMPANIES MF(2) MFII(3) DURING PAST 5 YEARS DIRECTOR HELD BY DIRECTOR --------------------------------------------------------------------------------------------------------------------------------- DAVID M. ZNAMIEROWSKI(4) President and 1999 2001 Mr. Znamierowski currently serves 53 N/A (age 43) Director(5) as President of Hartford Investment Management Company ("Hartford Investment"), Senior Vice President for Hartford Life, Inc., and Senior Vice President and Chief Investment Officer for Hartford Life Insurance Company. Mr. Znamierowski is also a Managing Member and Senior Vice President of HIFSCO and HL Advisors. Mr. Znamierowski is Group Senior Vice President and Chief Investment Officer for The Hartford. In addition, he serves as President and Director of Hartford Series Fund, Inc. and President of The Hartford Income Shares Fund, Inc. and Hartford HLS Series Fund II, Inc. --------------------------------------------------------------------------------------------------------------------------------- ROBERT W. BELTZ, JR. Vice President 2002 1993 Mr. Beltz currently serves as Vice N/A N/A (age 54) President Securities Operations of Hartford Administrative Services Company ("HASCO"). Since December 2001, he has served as Assistant Vice President of Hartford Life Insurance Company. In addition, he is a Vice President of The Hartford Income Shares Fund, Inc., Hartford Series Fund, Inc. and Hartford HLS Series Fund II, Inc. --------------------------------------------------------------------------------------------------------------------------------- KEVIN J. CARR Vice President 1996 2001 Mr. Carr has served as The N/A N/A (age 49) and Secretary Hartford's Assistant General Counsel since 1999, Counsel since November 1996 and Associate Counsel since November 1995. Mr. Carr is also Vice President and Assistant Secretary of HL Advisors and HIFSCO and Assistant Secretary of Hartford Investment. He is also Vice President and Secretary of The Hartford Income Shares Fund, Inc., Hartford Series Fund, Inc. and Hartford HLS Series Fund II, Inc. --------------------------------------------------------------------------------------------------------------------------------- WILLIAM H. DAVISON, JR. Vice President 2002 2002 Mr. Davison is a Managing Director N/A N/A (age 46) and Director of the Funds Management Group of Hartford Investment. Mr. Davison is also a Senior Vice President of HIFSCO and HL Advisors. In addition, he serves as a Vice President of The Hartford Income Shares Fund, Inc., Hartford Series Fund, Inc. and Hartford HLS Series Fund II, Inc. ---------------------------------------------------------------------------------------------------------------------------------
216 THE HARTFORD MUTUAL FUNDS, INC. AND THE HARTFORD MUTUAL FUNDS II, INC. DIRECTOR AND OFFICER INFORMATION (UNAUDITED) -- (CONTINUED) --------------------------------------------------------------------------------
INTERESTED DIRECTORS AND OFFICERS --------------------------------------------------------------------------------------------------------------------------------- TERM OF NUMBER OF OFFICE(1) AND PORTFOLIOS IN POSITION HELD LENGTH OF FUND COMPLEX OTHER WITH THE TIME SERVED: PRINCIPAL OCCUPATION(S) OVERSEEN BY DIRECTORSHIPS NAME AND AGE COMPANIES MF(2) MFII(3) DURING PAST 5 YEARS DIRECTOR HELD BY DIRECTOR --------------------------------------------------------------------------------------------------------------------------------- TAMARA L. FAGELY Vice 2002 1993 Ms. Fagely has been Vice President N/A N/A (age 45) President, of HASCO since 1998. Prior to Controller and 1998, she was Second Vice Treasurer President of HASCO. Since December 2001, she has served as Assistant Vice President of Hartford Life Insurance Company. In addition, she is Controller of HIFSCO and Vice President, Controller and Treasurer of The Hartford Income Shares Fund, Inc. and Vice President of Hartford Series Fund, Inc. and Hartford HLS Series Fund II, Inc. --------------------------------------------------------------------------------------------------------------------------------- BRUCE FERRIS Vice President 2002 2002 Mr. Ferris serves as Senior Vice N/A N/A (age 48) President and a Director of Sales and Marketing in the Investment Products Division of Hartford Life Insurance Company. He is also a Managing Member of HL Advisors. In addition, Mr. Ferris is Vice President of The Hartford Income Shares Fund, Inc., Hartford Series Fund, Inc. and Hartford HLS Series Fund II, Inc. --------------------------------------------------------------------------------------------------------------------------------- MARY JANE FORTIN Vice President 2003 2003 Ms. Fortin is Senior Vice N/A N/A (age 39)(6) President and Director of Mutual Funds and 529 Programs for Hartford Life. In addition, she is a Vice President of The Hartford Income Shares Fund, Inc., Hartford Series Fund, Inc. and Hartford HLS Series Fund II, Inc. Previously, Ms. Fortin served as Senior Vice President and Chief Accounting Officer of Hartford Life. She joined Hartford Life in 1997. --------------------------------------------------------------------------------------------------------------------------------- GEORGE R. JAY Vice President 1996 2001 Mr. Jay serves as Assistant Vice N/A N/A (age 51) President of Hartford Life Insurance Company's Equity Products Department. He is also Controller of HL Advisors and Vice President, Controller and Treasurer of Hartford Series Fund, Inc. and Hartford HLS Series Fund II, Inc. In addition, he is Vice President of The Hartford Income Shares Fund, Inc. ---------------------------------------------------------------------------------------------------------------------------------
217 THE HARTFORD MUTUAL FUNDS, INC. AND THE HARTFORD MUTUAL FUNDS II, INC. DIRECTOR AND OFFICER INFORMATION (UNAUDITED) -- (CONTINUED) --------------------------------------------------------------------------------
INTERESTED DIRECTORS AND OFFICERS --------------------------------------------------------------------------------------------------------------------------------- TERM OF NUMBER OF OFFICE(1) AND PORTFOLIOS IN POSITION HELD LENGTH OF FUND COMPLEX OTHER WITH THE TIME SERVED: PRINCIPAL OCCUPATION(S) OVERSEEN BY DIRECTORSHIPS NAME AND AGE COMPANIES MF(2) MFII(3) DURING PAST 5 YEARS DIRECTOR HELD BY DIRECTOR --------------------------------------------------------------------------------------------------------------------------------- RYAN JOHNSON(7) Vice President 2002 2002 Until October 2003 Mr. Johnson N/A N/A (age 43) served as Senior Vice President and a Director of Sales and Marketing in the Investment Products Division of Hartford Life Insurance Company. He was also a Managing Member of HL Advisors. In addition, Mr. Johnson served as a Vice President of The Hartford Income Shares Fund, Inc., Hartford Series Fund, Inc. and Hartford HLS Series Fund II, Inc. He was previously with Guardian Insurance Company. --------------------------------------------------------------------------------------------------------------------------------- STEPHEN T. JOYCE Vice President 2000 2001 Mr. Joyce currently serves as N/A N/A (age 44) Senior Vice President and Director of the Institutional Products Group for Hartford Life Insurance Company. Mr. Joyce is also a Senior Vice President of HL Advisors and a Vice President of The Hartford Income Shares Fund, Inc., Hartford Series Fund, Inc. and Hartford HLS Series Fund II, Inc. Previously he served as Vice President (1997-1999) and Assistant Vice President (1994-1997) of Hartford Life Insurance Company. --------------------------------------------------------------------------------------------------------------------------------- DAVID N. LEVENSON Vice President 2000 2001 Mr. Levenson serves as Senior Vice N/A N/A (age 37) President of Hartford Life Insurance Company's Retail Product Management Group and is responsible for all retail product management and profitability. Mr. Levenson is also a Senior Vice President of HIFSCO. In addition, he serves as Vice President of The Hartford Income Shares Fund, Inc., Hartford Series Fund, Inc. and Hartford HLS Series Fund II, Inc. Mr. Levenson joined The Hartford in 1995. --------------------------------------------------------------------------------------------------------------------------------- JOHN C. WALTERS Vice President 2000 2001 Mr. Walters serves as Executive N/A N/A (age 41) Vice President and Director of the Investment Products Division of Hartford Life Insurance Company. Mr. Walters is also a Managing Member and Executive Vice President of HIFSCO and HL Advisors. In addition, he is a Vice President of The Hartford Income Shares Fund, Inc., Hartford Series Fund, Inc. and Hartford HLS Series Fund II, Inc. Previously, Mr. Walters was with First Union Securities. ---------------------------------------------------------------------------------------------------------------------------------
(1) Term of Office: Each director and officer may serve until his or her successor is elected and qualifies. (2) The Hartford Mutual Funds, Inc. 218 THE HARTFORD MUTUAL FUNDS, INC. AND THE HARTFORD MUTUAL FUNDS II, INC. DIRECTOR AND OFFICER INFORMATION (UNAUDITED) -- (CONTINUED) -------------------------------------------------------------------------------- (3) The Hartford Mutual Funds II, Inc. (4) "Interested person" of each Company as defined in the 1940 Act because of the person's affiliation with or equity ownership of Hartford Investment Financial Services, LLC or affiliated companies. (5) Director of The Hartford Mutual Funds, Inc. (6) Elected May 13, 2003. (7) Resigned October 9, 2003. The Statement of Additional Information (SAI) includes additional information about fund directors and is available upon request without charge by calling 1-888-843-7824 or writing: The Hartford Mutual Funds P.O. Box 64387 St. Paul, MN 55164-0387 A description of the policies and procedures that the Fund uses to determine how to vote proxies relating to portfolio securities is available (1) without charge, upon request, by calling 888-843-7824 and (2) on the Securities and Exchange Commission's website at http:www.sec.gov. 219 THE HARTFORD MUTUAL FUNDS, INC. AND THE HARTFORD MUTUAL FUNDS II, INC. FEDERAL INCOME TAX INFORMATION (UNAUDITED) -------------------------------------------------------------------------------- The information set forth below is for the fund's fiscal year as required by federal tax law. Shareholders, however, must report distributions on a calendar year basis for income tax purposes which may include distributions of two fiscal years of the fund. Accordingly, the information needed by shareholders for income tax purposes will be sent to them in early 2004. Shareholders may wish to consult a tax advisor on how to report distributions for state and local purposes. Advisers Fund, Dividend and Growth Fund, Global Financial Services Fund and Value Fund paid income distributions, taxable as dividend income, of which 88.49%, 100.00%, 100.00% and 100.00%, respectively, qualified for deduction by corporations. The income received from federal obligations is as follows:
ADVISERS INCOME INFLATION SHORT TOTAL RETURN U.S. GOVERNMENT FUND FUND PLUS FUND DURATION FUND BOND FUND SECURITIES FUND -------- ------- --------- ------------- ------------ --------------- U.S. Treasury............... 12.53% 10.47% 97.26% 10.06% 0.23% 10.78% Other Direct Federal Obligations............... 0.00% 0.00% 0.00% 0.27% 0.00% 3.62% ------- ------- ------- ------- ------- ------- Total Direct Federal Obligations............. 12.53% 10.47% 97.26% 10.33% 0.23% 14.40% Other Securities.......... 87.47% 89.53% 2.74% 89.67% 99.77% 85.60% ------- ------- ------- ------- ------- ------- Total....................... 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% ------- ------- ------- ------- ------- -------
For the fiscal year ended October 31, 2003, certain dividends paid by the Funds may be subject to a maximum tax rate of 15%, as provided for by the Jobs and Growth Tax Relief Reconciliation Act of 2003. The Funds intend to designate ordinary distributions declared as taxed at a maximum rate of 15%, up to a maximum amount as follows: Advisers Fund............................................... $19,406 Dividend and Growth Fund.................................... 8,698
Complete information will be computed and reported in conjunction with your 2003 Form 1099-DIV. Detailed below are the per share distributions made for the fiscal year ended October 31, 2003.
FUND EX-DATE CLASS A CLASS B CLASS C CLASS E CLASS H CLASS L CLASS M CLASS N CLASS Y CLASS Z ---- ---------- ------- ------- ------- ------- ------- ------- ------- ------- ------- ------- ADVISERS FUND Income.............. 12/23/2002 0.049 0.028 0.032 0.069 Income.............. 3/26/2003 0.052 0.030 0.031 0.064 Income.............. 6/25/2003 0.045 0.020 0.024 0.062 Income.............. 9/25/2003 0.043 0.017 0.020 0.063 ----- ----- ----- ----- Total Income Distributions... 0.189 0.095 0.107 0.258 ----- ----- ----- ----- DIVIDEND AND GROWTH FUND Income.............. 12/23/2002 0.025 0.008 0.009 0.037 Income.............. 3/26/2003 0.033 0.008 0.010 0.053 Income.............. 6/25/2003 0.036 0.008 0.013 0.062 Income.............. 9/25/2003 0.034 0.005 0.011 0.058 ----- ----- ----- ----- Total Income Distributions... 0.128 0.029 0.043 0.210 ----- ----- ----- ----- GLOBAL FINANCIAL SERVICES FUND Income.............. 12/23/2002 0.037 0.076 ----- ----- GLOBAL HEALTH FUND Short-Term Capital Gain.............. 11/11/2002 0.111 0.111 0.111 0.111 Long-Term Capital Gain.............. 11/11/2002 0.188 0.188 0.188 0.188 ----- ----- ----- ----- Total Distributions... 0.299 0.299 0.299 0.299 ----- ----- ----- -----
220 --------------------------------------------------------------------------------
FUND EX-DATE CLASS A CLASS B CLASS C CLASS E CLASS H CLASS L CLASS M CLASS N CLASS Y CLASS Z ---- ---------- ------- ------- ------- ------- ------- ------- ------- ------- ------- ------- HIGH YIELD FUND Income.............. 11/25/2002 0.067 0.063 0.063 0.070 Income.............. 12/23/2002 0.072 0.068 0.068 0.075 Income.............. 1/28/2003 0.059 0.055 0.055 0.062 Income.............. 2/25/2003 0.057 0.053 0.053 0.060 Income.............. 3/26/2003 0.058 0.054 0.054 0.061 Income.............. 4/25/2003 0.054 0.050 0.050 0.057 Income.............. 5/27/2003 0.048 0.043 0.043 0.051 Income.............. 6/25/2003 0.051 0.046 0.046 0.053 Income.............. 7/28/2003 0.048 0.043 0.043 0.051 Income.............. 8/26/2003 0.049 0.044 0.044 0.051 Income.............. 9/25/2003 0.047 0.042 0.042 0.050 Income.............. 10/28/2003 0.040 0.035 0.036 0.043 ----- ----- ----- ----- Total Income Distributions... 0.650 0.596 0.597 0.684 ----- ----- ----- ----- INCOME FUND Income.............. 11/25/2002 0.027 0.022 0.022 Income.............. 12/23/2002 0.055 0.048 0.048 Income.............. 1/28/2003 0.046 0.040 0.040 Income.............. 2/25/2003 0.046 0.040 0.040 Income.............. 3/26/2003 0.046 0.040 0.040 Income.............. 4/25/2003 0.050 0.044 0.044 Income.............. 5/27/2003 0.048 0.042 0.042 Income.............. 6/25/2003 0.042 0.036 0.036 Income.............. 7/28/2003 0.040 0.033 0.033 Income.............. 8/26/2003 0.040 0.034 0.034 Income.............. 9/25/2003 0.041 0.035 0.035 Income.............. 10/28/2003 0.047 0.041 0.041 ----- ----- ----- Total Income Distributions... 0.528 0.455 0.455 ----- ----- ----- INFLATION PLUS FUND Income.............. 11/25/2002 0.017 0.012 0.012 Income.............. 12/23/2002 0.018 0.015 0.015 Income.............. 1/28/2003 0.019 0.013 0.013 Income.............. 2/25/2003 0.020 0.014 0.014 Income.............. 3/26/2003 0.041 0.035 0.035 Income.............. 4/25/2003 0.043 0.037 0.037 Income.............. 5/27/2003 0.025 0.018 0.018 Income.............. 6/25/2003 0.007 0.001 0.001 Income.............. 7/28/2003 0.011 0.005 0.005 Income.............. 8/26/2003 0.015 0.009 0.009 Income.............. 9/25/2003 0.026 0.020 0.020 Income.............. 10/28/2003 0.022 0.016 0.016 ----- ----- ----- Total Income Distributions... 0.264 0.195 0.195 ----- ----- ----- INTERNATIONAL CAPITAL APPRECIATION FUND Income.............. 12/23/2002 0.007 0.037 ----- ----- INTERNATIONAL SMALL COMPANY FUND Income.............. 12/23/2002 0.016 0.057 ----- -----
221 THE HARTFORD MUTUAL FUNDS, INC. AND THE HARTFORD MUTUAL FUNDS II, INC. FEDERAL INCOME TAX INFORMATION (UNAUDITED) -- (CONTINUED) --------------------------------------------------------------------------------
FUND EX-DATE CLASS A CLASS B CLASS C CLASS E CLASS H CLASS L CLASS M CLASS N CLASS Y CLASS Z ---- ---------- ------- ------- ------- ------- ------- ------- ------- ------- ------- ------- SHORT DURATION FUND Income.............. 11/25/2002 0.015 0.011 0.011 Income.............. 12/23/2002 0.027 0.021 0.021 Income.............. 1/28/2003 0.024 0.018 0.018 Income.............. 2/25/2003 0.025 0.019 0.019 Income.............. 3/26/2003 0.028 0.023 0.023 Income.............. 4/25/2003 0.032 0.026 0.026 Income.............. 5/27/2003 0.029 0.023 0.023 Income.............. 6/25/2003 0.023 0.017 0.017 Income.............. 7/28/2003 0.024 0.018 0.018 Income.............. 8/26/2003 0.024 0.019 0.019 Income.............. 9/25/2003 0.024 0.018 0.018 Income.............. 10/28/2003 0.028 0.022 0.022 ----- ----- ----- Total Income Distributions... 0.303 0.235 0.235 ----- ----- ----- TAX-FREE CALIFORNIA FUND* Income.............. 11/25/2002 0.013 0.008 0.008 Income.............. 12/23/2002 0.032 0.025 0.025 Income.............. 1/28/2003 0.027 0.021 0.021 Income.............. 2/25/2003 0.032 0.026 0.026 Income.............. 3/26/2003 0.031 0.025 0.025 Income.............. 4/25/2003 0.030 0.024 0.024 Income.............. 5/27/2003 0.030 0.024 0.024 Income.............. 6/25/2003 0.032 0.026 0.026 Income.............. 7/28/2003 0.034 0.029 0.029 Income.............. 8/26/2003 0.035 0.029 0.029 Income.............. 9/25/2003 0.033 0.028 0.028 Income.............. 10/28/2003 0.043 0.037 0.037 ----- ----- ----- Total Income Distributions... 0.372 0.302 0.302 ----- ----- ----- TAX-FREE MINNESOTA FUND* Long-Term Capital Gain.............. 11/11/2002 0.053 0.053 0.053 0.053 0.053 0.053 0.053 0.053 0.053 ----- ----- ----- ----- ----- ----- ----- ----- ----- Income.............. 11/25/2002 0.033 0.028 0.028 0.037 0.028 0.034 0.028 0.028 0.038 Income.............. 12/23/2002 0.032 0.026 0.026 0.035 0.026 0.033 0.026 0.026 0.036 Income.............. 1/28/2003 0.031 0.025 0.025 0.034 0.025 0.032 0.025 0.025 0.035 Income.............. 2/25/2003 0.029 0.023 0.023 0.032 0.024 0.030 0.024 0.024 0.033 Income.............. 3/26/2003 0.031 0.025 0.025 0.034 0.026 0.032 0.026 0.026 0.035 Income.............. 4/25/2003 0.033 0.027 0.027 0.036 0.028 0.034 0.028 0.028 0.037 Income.............. 5/27/2003 0.031 0.024 0.024 0.035 0.025 0.032 0.025 0.025 0.035 Income.............. 6/25/2003 0.031 0.025 0.025 0.035 0.026 0.033 0.026 0.026 0.035 Income.............. 7/28/2003 0.032 0.026 0.026 0.036 0.027 0.033 0.027 0.027 0.036 Income.............. 8/26/2003 0.034 0.028 0.028 0.037 0.028 0.035 0.028 0.028 0.038 Income.............. 9/25/2003 0.033 0.027 0.027 0.036 0.027 0.034 0.027 0.027 0.036 Income.............. 10/28/2003 0.032 0.026 0.026 0.035 0.026 0.033 0.026 0.026 0.036 ----- ----- ----- ----- ----- ----- ----- ----- ----- Total Income Distributions... 0.382 0.310 0.310 0.422 0.316 0.395 0.316 0.316 0.430 ----- ----- ----- ----- ----- ----- ----- ----- ----- * Ordinary distributions from the Tax-Free California and Tax-Free Minnesota were exempt from federal income taxation for non-corporate shareholders.
222 --------------------------------------------------------------------------------
FUND EX-DATE CLASS A CLASS B CLASS C CLASS E CLASS H CLASS L CLASS M CLASS N CLASS Y CLASS Z ---- ---------- ------- ------- ------- ------- ------- ------- ------- ------- ------- ------- TAX-FREE NATIONAL FUND* Long-Term Capital Gain.............. 11/11/2002 0.253 0.253 0.253 0.253 0.253 0.253 0.253 0.253 0.253 ----- ----- ----- ----- ----- ----- ----- ----- ----- Income.............. 11/25/2002 0.030 0.023 0.023 0.032 0.024 0.030 0.024 0.024 0.034 Income.............. 12/23/2002 0.034 0.027 0.027 0.036 0.027 0.034 0.027 0.027 0.038 Income.............. 1/28/2003 0.033 0.026 0.026 0.036 0.027 0.034 0.027 0.027 0.037 Income.............. 2/25/2003 0.032 0.025 0.025 0.034 0.025 0.032 0.025 0.025 0.036 Income.............. 3/26/2003 0.034 0.027 0.027 0.037 0.028 0.034 0.028 0.028 0.038 Income.............. 4/25/2003 0.036 0.029 0.029 0.039 0.030 0.037 0.030 0.030 0.040 Income.............. 5/27/2003 0.034 0.028 0.028 0.038 0.028 0.035 0.028 0.028 0.040 Income.............. 6/25/2003 0.034 0.027 0.027 0.037 0.027 0.035 0.027 0.027 0.038 Income.............. 7/28/2003 0.037 0.029 0.029 0.039 0.030 0.037 0.030 0.030 0.040 Income.............. 8/26/2003 0.037 0.030 0.030 0.040 0.031 0.037 0.031 0.031 0.041 Income.............. 9/25/2003 0.036 0.030 0.030 0.039 0.030 0.037 0.030 0.030 0.040 Income.............. 10/28/2003 0.037 0.030 0.030 0.040 0.030 0.037 0.030 0.030 0.040 ----- ----- ----- ----- ----- ----- ----- ----- ----- Total Income Distributions... 0.414 0.331 0.331 0.447 0.337 0.419 0.337 0.337 0.462 ----- ----- ----- ----- ----- ----- ----- ----- ----- TAX-FREE NEW YORK FUND* Income.............. 11/25/2002 0.010 0.005 0.005 Income.............. 12/23/2002 0.031 0.024 0.024 Income.............. 1/28/2003 0.024 0.019 0.019 Income.............. 2/25/2003 0.028 0.022 0.022 Income.............. 3/26/2003 0.029 0.023 0.023 Income.............. 4/25/2003 0.030 0.024 0.024 Income.............. 5/27/2003 0.030 0.024 0.024 Income.............. 6/25/2003 0.030 0.024 0.024 Income.............. 7/28/2003 0.031 0.025 0.025 Income.............. 8/26/2003 0.032 0.026 0.026 Income.............. 9/25/2003 0.031 0.025 0.025 Income.............. 10/28/2003 0.042 0.036 0.036 ----- ----- ----- Total Income Distributions... 0.348 0.277 0.277 ----- ----- ----- TOTAL RETURN BOND FUND Short-Term Capital Gain.............. 11/11/2002 0.083 0.083 0.083 0.083 Long-Term Capital Gain.............. 11/11/2002 0.025 0.025 0.025 0.025 ----- ----- ----- ----- Total Capital Gain Distributions..... 0.108 0.108 0.108 0.108 ----- ----- ----- ----- Income.............. 11/25/2002 0.038 0.032 0.032 0.038 Income.............. 12/23/2002 0.052 0.045 0.045 0.056 Income.............. 1/28/2003 0.051 0.044 0.044 0.056 Income.............. 2/25/2003 0.047 0.040 0.040 0.051 Income.............. 3/26/2003 0.045 0.038 0.038 0.049 Income.............. 4/25/2003 0.041 0.034 0.034 0.045 Income.............. 5/27/2003 0.038 0.032 0.032 0.043 Income.............. 6/25/2003 0.040 0.034 0.034 0.045 Income.............. 7/28/2003 0.038 0.032 0.032 0.043 Income.............. 8/26/2003 0.036 0.030 0.030 0.041 Income.............. 9/25/2003 0.035 0.029 0.029 0.040 Income.............. 10/28/2003 0.037 0.030 0.030 0.042 ----- ----- ----- ----- Total Income Distributions... 0.498 0.420 0.420 0.549 ----- ----- ----- ----- * Ordinary distributions from the Tax-Free National and Tax-Free New York were exempt from federal income taxation for non-corporate shareholders.
223 THE HARTFORD MUTUAL FUNDS, INC. AND THE HARTFORD MUTUAL FUNDS II, INC. FEDERAL INCOME TAX INFORMATION (UNAUDITED) -- (CONTINUED) --------------------------------------------------------------------------------
FUND EX-DATE CLASS A CLASS B CLASS C CLASS E CLASS H CLASS L CLASS M CLASS N CLASS Y ---- ---------- ------- ------- ------- ------- ------- ------- ------- ------- ------- U.S. GOVERNMENT SECURITIES FUND Income................... 11/25/2002 0.034 0.028 0.028 0.037 0.029 0.035 0.029 0.029 0.038 Income................... 12/23/2002 0.028 0.023 0.023 0.032 0.024 0.030 0.024 0.024 0.033 Income................... 1/28/2003 0.034 0.028 0.028 0.037 0.028 0.035 0.028 0.028 0.037 Income................... 2/25/2003 0.034 0.028 0.028 0.037 0.029 0.035 0.029 0.029 0.037 Income................... 3/26/2003 0.034 0.028 0.028 0.038 0.029 0.035 0.029 0.029 0.038 Income................... 4/25/2003 0.040 0.034 0.034 0.043 0.035 0.041 0.035 0.035 0.043 Income................... 5/27/2003 0.038 0.032 0.032 0.042 0.033 0.040 0.033 0.033 0.042 Income................... 6/25/2003 0.037 0.031 0.031 0.041 0.033 0.039 0.033 0.033 0.041 Income................... 7/28/2003 0.034 0.028 0.028 0.038 0.029 0.036 0.029 0.029 0.038 Income................... 8/26/2003 0.034 0.029 0.029 0.038 0.030 0.036 0.030 0.030 0.038 Income................... 9/25/2003 0.034 0.028 0.028 0.037 0.029 0.035 0.029 0.029 0.037 Income................... 10/28/2003 0.033 0.027 0.027 0.036 0.028 0.034 0.028 0.028 0.037 ----- ----- ----- ----- ----- ----- ----- ----- ----- Total Income Distributions........ 0.414 0.344 0.344 0.456 0.356 0.431 0.356 0.356 0.459 ----- ----- ----- ----- ----- ----- ----- ----- ----- VALUE FUND Income................... 12/23/2002 0.059 0.000 0.000 0.098 ----- ----- ----- ----- FUND CLASS Z ---- ------- U.S. GOVERNMENT SECURITIES FUND Income................... Income................... Income................... Income................... Income................... Income................... Income................... Income................... Income................... Income................... Income................... Income................... Total Income Distributions........ VALUE FUND Income...................
224 PRIVACY POLICY AND PRACTICES OF THE HARTFORD FINANCIAL SERVICES GROUP, INC. AND ITS AFFILIATES (HEREIN CALLED "WE, OUR, AND US") This Privacy Policy applies to our United States Operations We value your trust. We are committed to the responsible: a) management; b) use; and c) protection; of PERSONAL INFORMATION. This notice describes how we collect, disclose, and protect PERSONAL INFORMATION. We collect PERSONAL INFORMATION to: a) service your TRANSACTIONS with us; and b) support our business functions. We may obtain PERSONAL INFORMATION from: a) YOU; b) your TRANSACTIONS with us; and c) third parties such as a consumer-reporting agency. Based on the type of product or service YOU apply for or get from us, PERSONAL INFORMATION such as: a) your name; b) your address; c) your income; d) your payment; or e) your credit history; may be gathered from sources such as applications, TRANSACTIONS, and consumer reports. To serve YOU and service our business, we may share certain PERSONAL INFORMATION. We will share PERSONAL INFORMATION, only as allowed by law, with affiliates such as: a) our insurance companies; b) our employee agents; c) our brokerage firms; and d) our administrators. As allowed by law, we may share PERSONAL FINANCIAL INFORMATION with our affiliates to: a) market our products; or b) market our services; to YOU without providing YOU with an option to prevent these disclosures. We may also share PERSONAL INFORMATION, only as allowed by law, with unaffiliated third parties including: a) independent agents; b) brokerage firms; c) insurance companies; d) administrators; and e) service providers; who help us serve YOU and service our business. When allowed by law, we may share certain PERSONAL FINANCIAL INFORMATION with other unaffiliated third parties who assist us by performing services or functions such as: a) taking surveys; b) marketing our products or services; or c) offering financial products or services under a joint agreement between us and one or more financial institutions. We will not sell or share your PERSONAL FINANCIAL INFORMATION with anyone for purposes unrelated to our business functions without offering YOU the opportunity to: a) "opt-out;" or b) "opt-in;" as required by law. We only disclose PERSONAL HEALTH INFORMATION with: a) your proper written authorization; or b) as otherwise allowed or required by law. Our employees have access to PERSONAL INFORMATION in the course of doing their jobs, such as: a) underwriting policies; b) paying claims; c) developing new products; or d) advising customers of our products and services. We use manual and electronic security procedures to maintain: a) the confidentiality; and b) the integrity of; PERSONAL INFORMATION that we have. We use these procedures to guard against unauthorized access. 225 Some techniques we use to protect PERSONAL INFORMATION include: a) secured files; b) user authentication; c) encryption; d) firewall technology; and e) the use of detection software. We are responsible for and must: a) identify information to be protected; b) provide an adequate level of protection for that data; c) grant access to protected data only to those people who must use it in the performance of their job-related duties. Employees who violate our Privacy Policy will be subject to discipline, which may include ending their employment with us. At the start of our business relationship, we will give YOU a copy of our current Privacy Policy. We will also give YOU a copy of our current Privacy Policy once a year if YOU maintain a continuing business relationship with us. We will continue to follow our Privacy Policy regarding PERSONAL INFORMATION even when a business relationship no longer exists between us. As used in this Privacy Notice: APPLICATION means your request for our product or service. PERSONAL FINANCIAL INFORMATION means financial information such as: a) credit history; b) income; c) financial benefits; or d) policy or claim information. PERSONAL HEALTH INFORMATION means health information such as: a) your medical records; or b) information about your illness, disability or injury. PERSONAL INFORMATION means information that identifies YOU personally and is not otherwise available to the public. It includes: a) PERSONAL FINANCIAL INFORMATION; and b) PERSONAL HEALTH INFORMATION. TRANSACTION means your business dealings with us, such as: a) your APPLICATION; b) your request for us to pay a claim; and c) your request for us to take an action on your account. YOU means an individual who has given us PERSONAL INFORMATION in conjunction with: a) asking about; b) applying for; or c) obtaining; a financial product or service from us if the product or service is used mainly for personal, family, or household purposes. This Privacy Policy is being provided on behalf of the following affiliates of The Hartford Financial Services Group, Inc.: American Maturity Life Insurance Company; Capstone Risk Management, LLC; First State Insurance Company; Hart Life Insurance Company; Hartford Accident & Indemnity Company; Hartford Administrative Services Company; Hartford Casualty Insurance Company; Hartford Equity Sales Company, Inc.; Hartford Fire Insurance Company; Hartford HLS Series Fund II, Inc.; Hartford Insurance Company of Illinois; Hartford Insurance Company of the Midwest; Hartford Insurance Company of the Southeast; Hartford International Life Reassurance Corporation; Hartford Investment Financial Services, LLC; Hartford Investment Management Company; Hartford Life & Accident Insurance Company; Hartford Life and Annuity Insurance Company; Hartford Life Insurance Company; Hartford Lloyd's Insurance Company; Hartford Securities Distribution Company, Inc.; Hartford Series Fund, Inc.; Hartford Specialty Company; Hartford Underwriters Insurance Company; Hartford-Comprehensive Employee Benefit Service Company; International Corporate Marketing Group, LLC; New England Insurance Company; Nutmeg Insurance Agency, Inc.; Nutmeg Insurance Company; Nutmeg Life Insurance Company; Omni General Agency, Inc.; Omni Indemnity Company; Omni Insurance Company; P2P Link, LLC; Pacific Insurance Company, Limited; Planco Financial Services, Inc.; Property and Casualty Insurance Company of Hartford; Sentinel Insurance Company, Ltd.; Servus Life Insurance Company; Specialty Risk Services, Inc.; The Hartford Income Shares Fund, Inc.; The Hartford Mutual Funds II, Inc.; The Hartford Mutual Funds, Inc.; Trumbull Insurance Company; Trumbull Services, L.L.C.; Twin City Fire Insurance Company; Woodbury Financial Services, Inc. 226 ITEM 2. CODE OF ETHICS. Registrant has adopted a code of ethics, which is attached as Exhibit 10(a). ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT. The Board of Directors of the Registrant has designated Phillip O. Peterson as an Audit Committee Financial Expert. Mr. Peterson is considered by the Board to be an independent director. ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES. Not applicable to this filing. ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS. Not applicable to this filing. ITEM 6. RESERVED. ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES. Not applicable to this filing. ITEM 8. RESERVED. ITEM 9. CONTROLS AND PROCEDURES. (a) Based on an evaluation of the Registrant's Disclosure Controls and Procedures as of a date within 90 days of the filing date of this report, the Disclosure Controls and Procedures are effectively designed to ensure that information required to be disclosed by the Registrant is recorded, processed, summarized and reported by the date of this report, including ensuring that information required to be disclosed in the report is accumulated and communicated to the Registrant's management, including the Registrant's officers, as appropriate, to allow timely decisions regarding required disclosure. (b) There were no significant changes in the Registrant's internal controls or in other factors that could significantly affect these controls subsequent to the date of their evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses. ITEM 10. EXHIBITS. (a) Registrant's Code of Ethics in response to Item 2. (b) Section 302 certifications of the principal executive officer and principal financial officer of Registrant. 99 Section 906 certification. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. THE HARTFORD MUTUAL FUNDS, INC. /s/ David M. Znamierowski Date: December 15, 2003 By: David M. Znamierowski Its: President Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated. /s/ David M. Znamierowski Date: December 15, 2003 By: David M. Znamierowski Its: President /s/ Tamara L. Fagely Date: December 15, 2003 By: Tamara L. Fagely Its: Vice President, Controller and Treasurer EXHIBIT LIST 10(a) Code of Ethics 99.CERT 10(b) Certifications (i) Section 302 certification of principal executive officer (ii) Section 302 certification of principal financial officer 99.906CERT 99 Section 906 certification of principal executive officer and principal financial officer