N-CSR 1 b63507a1nvcsr.txt HARTFORD MUTUAL FUND, 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) Edward P. Macdonald, Esquire Life Law Unit The Hartford Financial Services Group, Inc. 200 Hopmeadow Street Simsbury, Connecticut 06089 (Name and Address of Agent for Service) Registrant's telephone number, including area code: (860) 843-9934 Date of fiscal year end: October 31, 2006 Date of reporting period: November 1, 2005 - October 31, 2006 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. Annual Report October 31, 2006 (STAG 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 at October 31, 2006: The Hartford Advisers Fund 105 The Hartford Aggressive Growth Allocation Fund 110 The Hartford Balanced Allocation Fund 111 The Hartford Balanced Income Fund 112 The Hartford Capital Appreciation Fund 119 The Hartford Capital Appreciation II Fund 122 The Hartford Conservative Allocation Fund 126 The Hartford Disciplined Equity Fund 127 The Hartford Dividend and Growth Fund 129 The Hartford Equity Income Fund 131 The Hartford Floating Rate Fund 133 The Hartford Focus Fund 144 The Hartford Global Communications Fund 146 The Hartford Global Financial Services Fund 148 The Hartford Global Health Fund 150 The Hartford Global Leaders Fund 152 The Hartford Global Technology Fund 154 The Hartford Growth Allocation Fund 156 The Hartford Growth Fund 157 The Hartford Growth Opportunities Fund 159 The Hartford High Yield Fund 161 The Hartford Income Allocation Fund 167 The Hartford Income Fund 168 The Hartford Inflation Plus Fund 179 The Hartford International Capital Appreciation Fund 182 The Hartford International Opportunities Fund 185 The Hartford International Small Company Fund 188 The Hartford MidCap Fund 191 The Hartford MidCap Growth Fund 193 The Hartford MidCap Value Fund 195 The Hartford Money Market Fund 197 The Hartford Retirement Income Fund 199 The Hartford Select MidCap Growth Fund 200 The Hartford Select MidCap Value Fund 202 The Hartford Select SmallCap Growth Fund 204 The Hartford Select SmallCap Value Fund 207 The Hartford Short Duration Fund 213 The Hartford Small Company Fund 218 The Hartford SmallCap Growth Fund 221 The Hartford Stock Fund 224 The Hartford Target Retirement 2010 Fund 226 The Hartford Target Retirement 2020 Fund 227 The Hartford Target Retirement 2030 Fund 228 The Hartford Tax-Free California Fund 229 The Hartford Tax-Free Minnesota Fund 232 The Hartford Tax-Free National Fund 234 The Hartford Tax-Free New York Fund 239 The Hartford Total Return Bond Fund 241 The Hartford U.S. Government Securities Fund 250 The Hartford Value Fund 252 The Hartford Value Opportunities Fund 254 Statements of Assets and Liabilities at October 31, 2006 256 Statements of Operations for the Year Ended October 31, 2006 268 Statements of Changes in Net Assets for the Years Ended October 31, 2006 and 2005 278 Statement of Cash Flows of The Hartford Total Return Bond Fund for the Year Ended October 31, 2006 296 Notes to Financial Statements 297 Financial Highlights 335 Report of Independent Registered Public Accounting Firm 368 Directors and Officers (Unaudited) 369 How to Obtain a Copy of the Funds' Proxy Voting Policies and Proxy Voting Records 370 Federal Tax Information Notice (Unaudited) 371 Expense Example (Unaudited) 375 Shareholder Meeting Results (Unaudited) 381 Approval of Investment Management and Investment Sub-Advisory Agreements (Unaudited) 382 Privacy Policy 397 The Hartford Advisers Fund (subadvised by Wellington Management Company, LLP) INVESTMENT OBJECTIVE -- SEEKS MAXIMUM LONG-TERM TOTAL RETURN. PERFORMANCE OVERVIEW(3) 10/31/96 - 10/31/06 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 ------------- ------------- ---------------------- 10/31/96 9450 10000 10000 9994 10755 10184 9780 10542 10071 10133 11200 10083 10177 11288 10104 9930 10825 9984 10318 11471 10130 10751 12169 10224 11161 12714 10347 11828 13725 10664 11276 12957 10544 11750 13666 10710 10/97 11580 13210 10881 11955 13821 10939 12059 14058 11053 12176 14213 11209 12707 15238 11186 13151 16018 11221 13341 16179 11277 13215 15901 11398 13737 16546 11514 13827 16371 11523 12677 14004 11749 13196 14901 12085 10/98 13697 16112 11999 14153 17088 12071 14602 18072 12100 14900 18827 12186 14574 18242 11897 15022 18972 11956 15470 19707 11985 15115 19242 11862 15710 20308 11825 15428 19675 11792 15269 19577 11783 15066 19041 11889 10/99 15556 20245 11920 15725 20657 11913 16366 21873 11840 15837 20774 11837 15914 20381 11986 16989 22373 12159 16661 21701 12099 16410 21255 12089 16695 21779 12335 16548 21439 12466 17184 22770 12642 16729 21568 12690 10/00 16778 21477 12770 16270 19785 12988 16514 19882 13244 16801 20587 13466 16145 18711 13605 15510 17526 13668 16130 18886 13565 16243 19013 13644 15833 18551 13709 15843 18368 14051 15273 17219 14230 14676 15829 14361 10/01 14988 16132 14726 15593 17369 14485 15653 17522 14370 15444 17266 14475 15350 16933 14598 15605 17570 14302 14797 16505 14579 14713 16384 14714 14099 15218 14839 13656 14032 15017 13677 14123 15353 12812 12590 15683 10/02 13427 13696 15533 14031 14501 15542 13585 13650 15954 13340 13294 15953 13255 13095 16237 13278 13222 16216 13940 14310 16389 14506 15063 16855 14619 15256 16788 14672 15525 16084 14822 15827 16190 14771 15659 16703 10/03 15255 16544 16491 15362 16690 16535 16009 17564 16698 16095 17887 16849 16225 18135 17055 16062 17862 17212 15770 17582 16684 15889 17822 16598 16158 18169 16666 15757 17567 16843 15877 17638 17199 15843 17829 17259 10/04 15854 18101 17409 16148 18834 17215 16558 19474 17398 16372 19000 17519 16591 19399 17403 16232 19056 17281 16177 18695 17540 16607 19289 17760 16612 19317 17876 17065 20035 17675 17154 19852 17939 17223 20013 17704 10/05 17012 19679 17552 17522 20422 17642 17675 20430 17810 18009 20971 17777 17976 21027 17826 18044 21289 17630 18200 21575 17574 17831 20955 17565 17656 20982 17605 17712 21112 17834 18128 21613 18116 18448 22170 18294 10/06 18911 22892 18409
--- ADVISERS FUND -- LEHMAN BROTHERS GOVERNMENT/ --- S&P 500 INDEX $9,450 starting value CREDIT BOND INDEX $10,000 starting value $18,911 ending value $10,000 starting value $22,892 ending value $18,409 ending value
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. S&P 500 INDEX is a market capitalization weighted price index composed of 500 widely held common stocks. You cannot invest directly in an index. 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 the investment adviser, without which performance would have been lower. For information on current expense waivers/reimbursements, please see the prospectus. AVERAGE ANNUAL TOTAL RETURNS(1,2) (as of 10/31/06)
INCEPTION 1 5 10 SINCE DATE YEAR YEAR YEAR INCEPTION ----------------------------------------------------------------- Advisers A# 7/22/1996 11.16% 4.76% 7.18% 7.76% ----------------------------------------------------------------- Advisers A## 7/22/1996 5.05% 3.58% 6.58% 7.17% ----------------------------------------------------------------- Advisers B# 7/22/1996 10.25% 3.98% NA* NA* ----------------------------------------------------------------- Advisers B## 7/22/1996 5.25% 3.64% NA* NA* ----------------------------------------------------------------- Advisers C# 7/22/1996 10.32% 4.07% 6.46% 7.04% ----------------------------------------------------------------- Advisers C## 7/22/1996 9.32% 4.07% 6.46% 7.04% ----------------------------------------------------------------- Advisers Y# 7/22/1996 11.63% 5.24% 7.69% 8.27% -----------------------------------------------------------------
# Without sales charge ## With sales charge * 10 year and inception returns are not applicable for Class B because after 8 years Class B converts to Class A. PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS. (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 shares reflects the maximum sales charge and Classes B and C reflect CDSC. (3) Growth of a $10,000 investment in Classes B, C and Y shares will vary from results seen above due to differences in the expenses charged to these share classes. PORTFOLIO MANAGERS STEVEN T. IRONS, CFA Senior Vice President, Partner JOHN C. KEOGH Senior Vice President, Partner PETER I. HIGGINS, CFA Vice-President CHRISTOPHER L. GOOTKIND Vice President -------------------------------------------------------------------------------- HOW DID THE FUND PERFORM? The Class A shares of The Hartford Advisers Fund returned 11.16%, before sales charges, for the twelve-month period ended October 31, 2006, versus the returns of 4.88% for the Lehman Brothers Government Credit Bond Index and 16.33% for the S&P 500 Index. The Fund also underperformed the 12.47% return of the average fund in the Lipper Mixed-Asset Target Allocation Growth Funds peer group, a group of funds with investment strategies similar to those of the Fund. WHY DID THE FUND PERFORM THIS WAY? Financial markets have been strong for the past twelve month period. Equity markets as measured by the S&P 500 were up 16.33% while the bond market as measured by the Lehman Brothers Government/Credit Index increased 4.88%. The Fund has three primary levers to generate investment performance: equity investments, fixed income investments, and asset allocation among stocks, bonds, and cash. During the past year both the equity portion and the fixed income portion of the Fund underperformed their respective benchmarks. Allocation contributed positively to the Fund's performance as the Fund's consistent overweight to equities helped during the period. The Equity portion of the Fund underperformed slightly due to negative stock selection within the Consumer Discretionary, Health Care and Materials sectors. This was offset somewhat by strong stock selection within Information Technology and Financials. Sector allocation within equities did not play an active role in the Fund's equity performance. Stocks that detracted the most from relative returns included XM Satellite, Boston Scientific, Marvell Technology and Dollar General. Media company XM Satellite continues to come under pressure. Decelerating customer addition trends and regulatory review of product compliance have caused investors to question the market opportunity. The portfolio continues to hold the stock based on positive long-term trends in satellite radio due to original equipment manufacturer (OEM) adoption. Boston Scientific has had a tough year suffering from erosion of its Implantable Cardioverter Defibrillator (ICD) market share, concerns surrounding its drug eluding stent business, and continued issues with cardiac product recalls after its recently acquired 1 -------------------------------------------------------------------------------- Guidant business. We retain our position because the fundamentals of the company remain sound and the stock is attractively priced. Chip maker Marvell declined on disruption in the hard disk drive market and worries over stock option grants. Discount retailer Dollar General disappointed due to high gasoline prices hitting Dollar General customers and thus impacting the company's top line. Additionally, Dollar General has been selling more lower-margin "highly consumables" than anticipated. These are products like perishable foods and cleaning supplies which are used up quickly by consumers and need to be replaced frequently, but carry thin margins. Stock selection contributed the most within the Information Technology and Financials sectors. Top relative contributors to the Fund included AT&T, UBS, Lexmark and Munich Re. AT&T is benefiting from the stabilization of its long distance pricing. Also, cost-cutting from its acquisitions are going well. UBS, the Swiss-based financial institution, posted outstanding results due primarily to its successful wealth management business. The firm has a superior business mix that leads to less volatility and should continue to be rewarded with higher multiples than the average broker. Shares in Lexmark, a manufacturer and supplier of printing and imaging solutions, rose as the company recovered from its product and distribution missteps last year. German reinsurance company Munich Re reported better-than-expected results due to higher profits from investments and fewer claims due to low levels of natural catastrophes. The company continues to generate good return on capital and improving capital management. While absolute performance was strong in the fixed income portfolio, relative returns slightly lagged the benchmark. The bonds underperformed their benchmark during the year due mainly to starting the year with a longer duration. This was offset somewhat by our overweight allocations to structured sectors such as asset-backed securities (ABS) and commercial mortgage-backed securities (CMBS). We believe an economic growth slowdown is apparent, but a hard landing is unlikely. We continue to overweight the non-government sectors with a preference towards structured securities and MBS. While credit trends remain sound, idiosyncratic risks such as leveraged buy-outs and management buy-outs, which favor equity holders over bondholders, are increasing. Some of the private equity pools have grown to sizes that make many large corporations at risk of some kind of takeover. WHAT IS THE OUTLOOK? The stock portion of The Hartford Advisers Fund is managed with a large cap, core investment approach. We apply a bottom-up investment process in constructing a diversified portfolio. We look for companies that exhibit some or all of the following characteristics: industry leadership, strong balance sheets, solid management teams, high return on equity, accelerating earnings, and/or attractive valuation with a catalyst. At the end of the period, the equity portion of the Fund was overweight positions in Information Technology and Health Care and underweight positions in Energy and Financials. As the Federal Reserve is near the end of its tightening cycle, we have positioned the fixed income portion accordingly. The equity and fixed income managers will continue to work collaboratively to make decisions regarding portfolio weights in stocks, bonds, and cash. As of October 31, 2006, the Fund's equity exposure was at 68% compared to 60% in its benchmark and at the upper end of the 50-70% range, as we expect equities to outperform bonds and cash. COMPOSITION BY SECTOR as of October 31, 2006
PERCENTAGE OF SECTOR NET ASSETS ------------------------------------------------------------------- Common Stock 67.9% ------------------------------------------------------------------- Asset Backed and Commercial Mortgage Securities 5.2 ------------------------------------------------------------------- Corporate Bonds: Investment Grade 11.3 ------------------------------------------------------------------- Municipal Bonds 0.2 ------------------------------------------------------------------- U.S. Government Securities 9.9 ------------------------------------------------------------------- U.S. Government Agencies 3.0 ------------------------------------------------------------------- Short-Term Investments 15.9 ------------------------------------------------------------------- Other Assets & Liabilities -13.4 ------------------------------------------------------------------- TOTAL 100.0% -------------------------------------------------------------------
DIVERSIFICATION BY INDUSTRY as of October 31, 2006
PERCENTAGE OF INDUSTRY NET ASSETS ------------------------------------------------------------------- Basic Materials 4.2% ------------------------------------------------------------------- Capital Goods 2.9 ------------------------------------------------------------------- Consumer Cyclical 6.1 ------------------------------------------------------------------- Consumer Staples 5.3 ------------------------------------------------------------------- Energy 3.6 ------------------------------------------------------------------- Finance 25.2 ------------------------------------------------------------------- General Obligations 0.2 ------------------------------------------------------------------- Health Care 8.8 ------------------------------------------------------------------- Services 7.5 ------------------------------------------------------------------- Technology 20.2 ------------------------------------------------------------------- U.S. Government Agencies 3.0 ------------------------------------------------------------------- U.S. Government Securities 9.9 ------------------------------------------------------------------- Utilities 0.6 ------------------------------------------------------------------- Short-Term Investments 15.9 ------------------------------------------------------------------- Other Assets & Liabilities -13.4 ------------------------------------------------------------------- TOTAL 100.0% -------------------------------------------------------------------
2 The Hartford Aggressive Growth Allocation Fund (advised by Hartford Investment Financial Services, LLC) INVESTMENT OBJECTIVE -- SEEKS LONG-TERM CAPITAL APPRECIATION. PERFORMANCE OVERVIEW(3) 5/28/04 - 10/31/06 Growth of a $10,000 investment in Class A which includes Sales Charge (LINE GRAPH)
AGGRESSIVE GROWTH ALLOCATION FUND S&P 500 INDEX --------------------------------- ------------- 5/28/04 9450 10000 9450 10000 9705 10194 7/04 9318 9857 9280 9897 9592 10004 10/04 9809 10157 10291 10567 10669 10927 1/05 10357 10661 10565 10885 10328 10692 4/05 10073 10490 10442 10823 10612 10838 7/05 11029 11241 11038 11139 11162 11229 10/05 10849 11042 11329 11459 11536 11463 1/06 12127 11766 12041 11798 12280 11945 4/06 12538 12105 11984 11757 11918 11773 7/06 11755 11846 12013 12127 12185 12439 10/06 12605 12844
--- AGGRESSIVE GROWTH ALLOCATION FUND --- S&P 500 INDEX $9,450 starting value $10,000 starting value $12,605 ending value $12,844 ending value
S&P 500 INDEX is a market capitalization weighted price index composed of 500 widely held common stocks. You cannot invest directly in an index. 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 the investment adviser, without which performance would have been lower. For information on current expense waivers/reimbursements, please see the prospectus. AVERAGE ANNUAL TOTAL RETURNS(1,2) (as of 10/31/06)
INCEPTION SINCE DATE 1 YEAR INCEPTION --------------------------------------------------------------------- Aggressive Growth Allocation A# 5/28/2004 16.18% 12.60% --------------------------------------------------------------------- Aggressive Growth Allocation A## 5/28/2004 9.79% 10.00% --------------------------------------------------------------------- Aggressive Growth Allocation B# 5/28/2004 15.43% 11.86% --------------------------------------------------------------------- Aggressive Growth Allocation B## 5/28/2004 10.43% 10.80% --------------------------------------------------------------------- Aggressive Growth Allocation C# 5/28/2004 15.43% 11.86% --------------------------------------------------------------------- Aggressive Growth Allocation C## 5/28/2004 14.43% 11.86% --------------------------------------------------------------------- Aggressive Growth Allocation I# 5/28/2004 16.27% 12.63% ---------------------------------------------------------------------
# Without sales charge ## With sales charge PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS. (1) Class I shares commenced operations on 8/31/06. Performance prior to 8/31/06 reflects Class A performance. (2) The initial investment in Class A shares reflects the maximum sales charge and Classes B and C reflect CDSC. (3) Growth of a $10,000 investment in Classes B, C and I shares will vary from results seen above due to differences in the expenses charged to these share classes. PORTFOLIO MANAGERS WILLIAM DAVISON, CFA Senior Vice President CHRISTOPHER HANLON, CFA Senior Vice President HUGH WHELAN, CFA Executive Vice President -------------------------------------------------------------------------------- HOW DID THE FUND PERFORM? The Hartford Aggressive Growth Allocation Fund (Class A) gained 16.18%, before sales charges, for the year ended October, 2006, trailing its S&P 500 benchmark, which returned 16.33%. The Fund outpaced the 14.50% return of the Lipper Multi-Cap Core Funds peer group, a group of funds with investment strategies similar to those of the Fund. WHY DID THE FUND PERFORM THIS WAY? The Fund's fiscal year, which ended October 31, 2006, began in a period of rising interest rates. Historically high energy and commodity prices, a boom in the housing market, and a strengthening economy led to concerns about rising inflation. To keep inflation in check, the Federal Reserve (the Fed) continued its cycle of monetary tightening that began in the summer of 2004. By June of 2006, the Fed had raised its Federal Funds Target Rate (Fed Funds Rate) 17 consecutive times, leaving the Fed Funds Rate at 5.25%. However, by August of 2006, the Fed became concerned that economic growth was slowing, in part due to the retreating housing market. As such, the Fed found itself in a conundrum as to whether it should continue raising interest rates to restrain inflation, or to pause in the tightening cycle to assess prospects for further economic growth. Since changes in the rate of inflation often lag changes in economic conditions, the Fed left rates unchanged at its two most recent meetings while it waited for more data before taking action. Sensing that the Fed would continue easing monetary policy, the equity markets rallied in the last months of the fiscal year. While stocks, and in particular foreign and small cap stocks, performed strongly for the year, fixed income securities provided more modest gains. For the full 12 month period, value oriented stocks outpaced growth stocks. However, growth stocks did return to favor in the last few months of the fiscal year. Aided in part by favorable currency movements and strengthening foreign economies, the international and emerging market equity indices outperformed the major domestic indices for the year. The Fund is constructed such that it has exposure to the various styles of equities, including international, mid-cap and small cap stocks. This diversification is expected to enhance the long-term return and risk characteristics of the Fund. Thus, as the Dow Jones Industrial Average reached its all-time high, the Fund achieved a positive return from its participation in the stock market rally. However, since domestic, large cap stocks dominated the stock rally late in the period, the Fund's exposure to foreign and smaller capitalization equities partially offset some of their contributions from earlier in the year. Due to the recent strength of the value style, the allocation to value equities was positive contributors to relative performance, whereas the growth style was a lesser contributor. The Fund typically uses cash flows to implement 3 -------------------------------------------------------------------------------- investment allocation changes to the Fund, when appropriate. However, a hard asset rebalance (i.e. a fund rebalancing to move the underlying fund investments to their target allocation percentages) was performed in February due to the strong performance by certain investment sectors. WHAT IS THE OUTLOOK? The recent decline in interest rates suggests an environment of economic weakness that is not consistent with our view of the economy. Falling interest rates and gasoline prices, coupled with a decent employment picture and gains in the stock market, should be supportive of continued consumer spending. While housing remains a wild card for the U.S. economy, our view is that the Fed is still concerned with inflation and that policy decisions will favor price stability as long as economic growth does not decline dramatically. In the coming months we will be closely watching the economy to determine the impact of a slower housing market on the average U.S. consumer and what implications that has for the economy going forward. COMPOSITION BY UNDERLYING FUND as of October 31, 2006
PERCENTAGE OF FUND NAME NET ASSETS ------------------------------------------------------------------- Hartford Capital Appreciation Fund, Class Y 13.2% ------------------------------------------------------------------- Hartford Disciplined Equity Fund, Class Y 15.1 ------------------------------------------------------------------- Hartford Dividend and Growth Fund, Class Y 1.8 ------------------------------------------------------------------- Hartford Equity Income Fund, Class Y 0.4 ------------------------------------------------------------------- Hartford Global Leaders Fund, Class Y 5.8 ------------------------------------------------------------------- Hartford Growth Fund, Class Y 6.6 ------------------------------------------------------------------- Hartford Growth Opportunities Fund, Class Y 3.6 ------------------------------------------------------------------- Hartford International Capital Appreciation Fund, Class Y 4.2 ------------------------------------------------------------------- Hartford International Opportunities Fund, Class Y 2.1 ------------------------------------------------------------------- Hartford International Small Company Fund, Class Y 7.3 ------------------------------------------------------------------- Hartford MidCap Value Fund, Class Y 1.7 ------------------------------------------------------------------- Hartford Select MidCap Growth Fund, Class Y 1.6 ------------------------------------------------------------------- Hartford Select MidCap Value Fund, Class Y 1.3 ------------------------------------------------------------------- Hartford Select SmallCap Value Fund, Class Y 0.7 ------------------------------------------------------------------- Hartford Select SmallCap Growth Fund, Class Y 0.4 ------------------------------------------------------------------- Hartford Small Company Fund, Class Y 7.6 ------------------------------------------------------------------- Hartford SmallCap Growth Fund, Class Y 9.6 ------------------------------------------------------------------- Hartford Value Fund, Class Y 9.8 ------------------------------------------------------------------- Hartford Value Opportunities Fund, Class Y 7.2 ------------------------------------------------------------------- TOTAL 100.0% -------------------------------------------------------------------
4 The Hartford Balanced Allocation Fund (advised by Hartford Investment Financial Services, LLC) INVESTMENT OBJECTIVE -- SEEKS LONG-TERM CAPITAL APPRECIATION AND INCOME. PERFORMANCE OVERVIEW(3) 5/28/04 - 10/31/06 Growth of a $10,000 investment in Class A which includes Sales Charge (LINE GRAPH)
LEHMAN BROTHERS U.S. BALANCED ALLOCATION FUND S&P 500 INDEX AGGREGATE BOND INDEX ------------------------ ------------- -------------------- 5/28/04 9450 10000 10000 9450 10000 10000 9582 10194 10057 7/04 9393 9857 10156 9412 9897 10350 9606 10004 10378 10/04 9748 10157 10465 10022 10567 10382 10291 10927 10477 1/05 10101 10661 10543 10215 10885 10481 10051 10692 10427 4/05 9937 10490 10568 10194 10823 10682 10313 10838 10741 7/05 10542 11241 10643 10609 11139 10779 10677 11229 10668 10/05 10476 11042 10584 10784 11459 10631 10941 11463 10732 1/06 11299 11766 10732 11260 11798 10768 11366 11945 10662 4/06 11531 12105 10643 11240 11757 10631 11192 11773 10654 7/06 11144 11846 10798 11348 12127 10963 11467 12439 11060 10/06 11731 12844 11133
--- BALANCED ALLOCATION FUND -- LEHMAN BROTHERS U.S. AGGREGATE --- S&P 500 INDEX $9,450 starting value BOND INDEX $10,000 starting value $11,731 ending value $10,000 starting value $12,844 ending value $11,133 ending value
S&P 500 INDEX is a market capitalization weighted price index composed of 500 widely held common stocks. 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 Index and Commercial Mortgage-Backed Securities Index. You cannot invest directly in an Index. 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 the investment adviser, without which performance would have been lower. For information on current expense waivers/reimbursements, please see the prospectus. AVERAGE ANNUAL TOTAL RETURNS(1,2) (as of 10/31/06)
INCEPTION SINCE DATE 1 YEAR INCEPTION ------------------------------------------------------------ Balanced Allocation A# 5/28/2004 11.98% 9.31% ------------------------------------------------------------ Balanced Allocation A## 5/28/2004 5.82% 6.80% ------------------------------------------------------------ Balanced Allocation B# 5/28/2004 11.22% 8.53% ------------------------------------------------------------ Balanced Allocation B## 5/28/2004 6.22% 7.42% ------------------------------------------------------------ Balanced Allocation C# 5/28/2004 11.24% 8.53% ------------------------------------------------------------ Balanced Allocation C## 5/28/2004 10.24% 8.53% ------------------------------------------------------------ Balanced Allocation I# 5/28/2004 11.95% 9.30% ------------------------------------------------------------
# Without sales charge ## With sales charge PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS. (1) Class I shares commenced operations on 8/31/06. Performance prior to 8/31/06 reflects Class A performance. (2) The initial investment in Class A shares reflects the maximum sales charge and Classes B and C reflect CDSC. (3) Growth of a $10,000 investment in Classes B, C and I shares will vary from results seen above due to differences in the expenses charged to these share classes. PORTFOLIO MANAGERS WILLIAM DAVISON, CFA Senior Vice President CHRISTOPHER HANLON, CFA Senior Vice President HUGH WHELAN, CFA Executive Vice President -------------------------------------------------------------------------------- HOW DID THE FUND PERFORM? The Hartford Balanced Allocation Fund (Class A) gained 11.98%, before sales charges, for the year ended October 31, 2006, versus the returns of 11.45% for the Lipper Mixed-Asset Target Allocation Moderate Funds peer group, 5.19% for the Lehman Brothers U.S. Aggregate Bond Index and 16.33% for the S&P 500 Index. WHY DID THE FUND PERFORM THIS WAY? The Fund's fiscal year, which ended October 31, 2006, began in a period of rising interest rates. Historically high energy and commodity prices, a boom in the housing market, and a strengthening economy led to concerns about rising inflation. To keep inflation in check, the Federal Reserve (the Fed) continued its cycle of monetary tightening that began in the summer of 2004. By June of 2006, the Fed had raised its Federal Funds Target Rate (Fed Funds Rate) 17 consecutive times, leaving the Fed Funds Rate at 5.25%. In response to the Fed's tightening, short- and intermediate-term bond yields rose through the first half of 2006. Thus, as interest rates rose, the principal value of these short- and intermediate-term bonds declined in response. In contrast, long-term bond yields did not rise as substantially due to overseas demand and expectations that the Fed could keep inflation low over the long run. The result was a yield curve that remained flat or even inverted (i.e. bonds with longer term maturities having a lower interest rate than bonds with shorter maturities) through most of the fiscal year. However, by August of 2006, the Fed became concerned that economic growth was slowing, in part due to the retreating housing market. As such, the Fed found itself in a conundrum as to whether it should continue raising interest rates to restrain inflation, or to pause in the tightening cycle to assess prospects for further economic growth. Since changes in the rate of inflation often lag changes in economic conditions, the Fed left rates unchanged at its two most recent meetings while it waited for more data before taking action. Sensing that the Fed would continue easing monetary policy, the bond and equity markets rallied in the last months of the fiscal year. While stocks, and in particular foreign and small cap stocks, performed strongly for the year, fixed income securities provided more modest gains. For the full 12 month period, value oriented stocks outpaced growth stocks. However, growth stocks did return to favor in the last few months of the fiscal year. Aided in part by favorable currency movements and strengthening foreign economies, the international and emerging market equity indices outperformed the major domestic indices for the year. Fortunately, 5 -------------------------------------------------------------------------------- the bond rally over the last few months offset the negative impact of rising interest rates earlier in the year, allowing the major bond sectors to finish with positive returns for the period. During much of the year, fixed income investors were unable to achieve higher levels of yield by going out longer on the yield curve (i.e. purchasing bonds with a longer maturity date). Thus, many bond investors shifted to lower quality and foreign issues as they sought greater yield. During the period, the traditionally "riskier" high yield and emerging markets bonds were among the strongest performers for the year. Based upon the Fund's design, the Fund's fixed income component typically is less sensitive to changes in interest rates than the Lehman benchmark. Additionally, the Fund's fixed income component was more defensive than normal this year, since the underlying fund managers generally assumed the bond markets were underestimating the potential for higher inflation. As interest rates declined during most of the fiscal year, the Fund's fixed income component delivered positive performance. Although, the Fund's defensive stance did not allow it to participate fully in the bond rally that occurred late in the period, the Fund benefited from the out-of-index exposure to "spread" sectors and higher yielding securities. With the Dow Jones Industrial reaching its all- time high late in the period, the Fund also generated positive gains from its allocation to equities. The Fund is constructed such that it has exposure to the various styles of equities, including international, mid-cap and small cap stocks. This diversification is expected to enhance the long-term return and risk characteristics of the Fund. The added diversification benefited the Fund through most of the year. However, since domestic, large cap stocks dominated the stock rally late in the period, the Fund's exposure to foreign and smaller capitalization equities partially offset some of their earlier contributions. The Fund typically uses cash flows to implement investment allocation changes to the Fund, when appropriate. However, a hard asset rebalance (i.e. a fund rebalancing to move the underlying fund investments to their target allocation percentages) was performed in February due to the strong performance by certain investment sectors. While there are trading costs that occur when a hard rebalance is instituted, these expenses had a negligible impact upon performance. WHAT IS THE OUTLOOK? The recent rally in fixed-rate bonds has resulted in bond prices that reflect an environment of economic weakness that is not consistent with our view of the economy. Declines in interest rates and gasoline prices, coupled with a decent employment picture and gains in the stock market, should be supportive of continued consumer spending. While housing remains a wild card for the U.S. economy, our view is that the Federal Reserve is still concerned with inflation and that policy decisions will favor price stability as long as economic growth does not decline dramatically. In the coming months, we will be closely watching the economy to determine the impact of a slower housing market on the average U.S. consumer and what implications that has for the economy going forward. COMPOSITION BY UNDERLYING FUND as of October 31, 2006
PERCENTAGE OF FUND NAME NET ASSETS ------------------------------------------------------------------- Hartford Capital Appreciation Fund, Class Y 10.8% ------------------------------------------------------------------- Hartford Disciplined Equity Fund, Class Y 5.8 ------------------------------------------------------------------- Hartford Dividend and Growth Fund, Class Y 2.7 ------------------------------------------------------------------- Hartford Equity Income Fund, Class Y 0.3 ------------------------------------------------------------------- Hartford Floating Rate Fund, Class Y 5.2 ------------------------------------------------------------------- Hartford Global Leaders Fund, Class Y 5.1 ------------------------------------------------------------------- Hartford Growth Fund, Class Y 1.6 ------------------------------------------------------------------- Hartford Growth Opportunities Fund, Class Y 3.3 ------------------------------------------------------------------- Hartford High Yield Fund, Class Y 1.8 ------------------------------------------------------------------- Hartford Income Fund, Class Y 6.3 ------------------------------------------------------------------- Hartford Inflation Plus Fund, Class Y 9.2 ------------------------------------------------------------------- Hartford International Capital Appreciation Fund, Class Y 4.2 ------------------------------------------------------------------- Hartford International Opportunities Fund, Class Y 1.7 ------------------------------------------------------------------- Hartford International Small Company Fund, Class Y 1.7 ------------------------------------------------------------------- Hartford MidCap Value Fund, Class Y 1.7 ------------------------------------------------------------------- Hartford Money Market Fund, Class Y 1.4 ------------------------------------------------------------------- Hartford Select MidCap Growth Fund, Class Y 1.6 ------------------------------------------------------------------- Hartford Select MidCap Value Fund, Class Y 1.2 ------------------------------------------------------------------- Hartford Select SmallCap Growth Fund, Class Y 0.3 ------------------------------------------------------------------- Hartford Short Duration Fund, Class Y 6.0 ------------------------------------------------------------------- Hartford Small Company Fund, Class Y 5.3 ------------------------------------------------------------------- Hartford SmallCap Growth Fund, Class Y 2.9 ------------------------------------------------------------------- Hartford Stock Fund, Class Y 1.7 ------------------------------------------------------------------- Hartford Total Return Bond Fund, Class Y 10.1 ------------------------------------------------------------------- Hartford Value Fund, Class Y 2.8 ------------------------------------------------------------------- Hartford Value Opportunities Fund, Class Y 5.1 ------------------------------------------------------------------- Other Assets & Liabilities 0.2 ------------------------------------------------------------------- TOTAL 100.0% -------------------------------------------------------------------
6 The Hartford Balanced Income Fund (subadvised by Wellington Management Company, LLP) INVESTMENT OBJECTIVE -- SEEKS TO PROVIDE CURRENT INCOME WITH GROWTH OF CAPITAL AS A SECONDARY OBJECTIVE. PERFORMANCE OVERVIEW(2) 7/31/06 - 10/31/06 Growth of a $10,000 investment in Class A which includes Sales Charge (LINE GRAPH)
LEHMAN BROTHERS CORPORATE BALANCED INCOME FUND RUSSELL 1000 VALUE INDEX INDEX -------------------- ------------------------ ------------------------- 7/31/06 9450 10000 10000 8/06 9620 10167 10186 9/06 9731 10370 10303 10/06 9902 10709 10386
--- BALANCED INCOME FUND --- RUSSELL 1000 VALUE INDEX -- LEHMAN BROTHERS CORPORATE $9,450 starting value $10,000 starting value INDEX $9,902 ending value $10,709 ending value $10,000 starting value $10,386 ending value
RUSSELL 1000 VALUE INDEX measures the performance of those Russell 1000 Index companies with lower price-to-book ratios and lower forecasted growth values. LEHMAN BROTHERS CORPORATE INDEX Lehman Brothers Corporate Bond Index is an unmanaged index and is the Corporate component of the U.S. Credit Index within the Lehman Brothers U.S. Aggregate Bond Index. You cannot invest directly in an index. 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 the investment adviser, without which performance would have been lower. For information on current expense waivers/reimbursements, please see the prospectus. AVERAGE ANNUAL TOTAL RETURNS(1) (as of 10/31/06)
INCEPTION DATE SINCE INCEPTION ---------------------------------------------------------- Balanced Income A# 7/31/2006 4.78% ---------------------------------------------------------- Balanced Income A## 7/31/2006 -0.98% ---------------------------------------------------------- Balanced Income B# 7/31/2006 4.54% ---------------------------------------------------------- Balanced Income B## 7/31/2006 -0.46% ---------------------------------------------------------- Balanced Income C# 7/31/2006 4.56% ---------------------------------------------------------- Balanced Income C## 7/31/2006 3.56% ---------------------------------------------------------- Balanced Income Y# 7/31/2006 4.83% ----------------------------------------------------------
# Without sales charge ## With sales charge PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS. (1) The initial investment in Class A shares reflects the maximum sales charge and Classes B and C reflect CDSC. (2) Growth of a $10,000 investment in Classes B, C and Y shares will vary from results seen above due to differences in the expenses charged to these share classes. PORTFOLIO MANAGERS LUCIUS T. HILL, III Senior Vice President SCOTT I. ST. JOHN, CFA Vice President JOHN R. RYAN Senior Vice President -------------------------------------------------------------------------------- HOW DID THE FUND PERFORM? The Hartford Balanced Income Fund commenced operations on July 31, 2006, and therefore has a performance track record for only 3 months of the reporting period ended October 31, 2006. During that time the Class A shares of The Hartford Balanced Income Fund returned 4.78 %, before sales charges, for the three-month period ended October 31, 2006, versus the returns of 5.22% for the Lipper Mixed-Asset Target Allocation Moderate Funds peer group, 7.09% for the Russell 1000 Value Index and 3.86% for the Lehman Brothers Corporate index. WHY DID THE FUND PERFORM THIS WAY? Financial markets posted strong returns for the three month period since inception of the Fund as fears of excessive inflation and impending recession were tempered by the sharp drop in energy prices. The US stock market as measured by the S&P 500 Index was up 8.4% while the US bond market as measured by the Lehman Brothers U.S. Aggregate Bond Index was up 3.1%. Growth stocks bested value stocks during the period and small caps beat both large and mid-cap stocks. Nine of the ten economic sectors of the Russell 1000 Value Index posted positive returns. The Russell 1000 Value Index was led by Information Technology and Consumer Discretionary stocks, while the Energy sector was slightly negative on an absolute basis or total performance return basis. The Equity portion of the Fund underperformed its benchmark slightly due primarily to weak stock selection in Financials and its underweight in Consumer Discretionary stocks. The performance of the fixed income portion of the Fund was in line with its benchmark. Asset allocation did not play a major role in the Fund's performance. Within the equity portion of the Fund, stock selection was weakest in the Financials and Health Care sectors and strongest within the Telecommunications and Utilities sectors. Additionally, the equity portion of the Fund was not invested within the strongly performing Consumer Discretionary sector, which also detracted from relative performance. An underweight to Information Technology also detracted from benchmark-relative performance. The three largest detractors from benchmark-relative returns were ConocoPhillips (Energy), PNC Financial (Financials), and Royal Dutch (Energy). While volatile, the price of oil is essentially flat 7 -------------------------------------------------------------------------------- compared with where it was a year ago. Energy stocks, meanwhile, underperformed on a relative basis, and were the worst performing stocks over the period. ConocoPhillips shares struggled due to the recent decline in North American natural gas prices and lower refining margins. Royal Dutch also declined during the period due to retracting oil prices. PNC Financial, while up during the first two months, dropped sharply in early October as analysts were skeptical about its proposed merger with Mercantile Bankshares. We held onto these stocks at the end of the period despite reducing our positions within ConocoPhillips and Royal Dutch Shell. Top relative contributors to the Fund included FPL Group (Utilities), AT&T (Telecommunications), and Dow Chemical (Materials). FPL, a generator and distributor of electric energy, increased over the period due to a rise in third-quarter profits, helped by strength at its unregulated power generation unit. AT&T has over-delivered on original synergy estimates and raised guidance as the legacy businesses have exceeded expectations. Additionally, the market is anticipating higher synergy estimates for the AT&T/BellSouth merger. While Dow Chemical posted lower third quarter earnings, the stock beat expectations as strong pricing has helped offset increased input costs. Also, not holding Valero Energy (Energy), which declined on weakness in oil prices also significantly contributed to performance. We continued to hold positions in FPL, AT&T and Dow at the end of the period. On the fixed income side, the Fund's yield curve positioning detracted from benchmark relative returns. Offsetting these results was the Fund's overweight positions in high yield and emerging markets debt. We believe an economic growth slowdown is apparent, but a hard landing is unlikely. Credit markets should benefit from a less hawkish Fed. We feel that corporate bond spreads offer an attractive level of compensation for the current environment of steady economic growth, strong profits, and healthy corporate balance sheets. Credit default rates remain low and emerging markets are benefiting from secular improvements in credit quality as well as expanding exports. Additionally, we favor the stability of the securitized sectors, namely asset-backed securities and commercial mortgage-backed securities, and maintain an overweight to these sectors. WHAT IS THE OUTLOOK? The equity portion of the Fund is managed with a large cap, value bias. At the end of the period, the equity portion of the Fund was most overweight in the Utilities, Telecommunications, and Materials sectors and most underweight the Financials and Consumer Discretionary sectors. The equity and fixed income managers continue to work collaboratively to make decisions regarding the Fund's weights in equities and fixed income. DIVERSIFICATION BY INDUSTRY as of October 31, 2006
PERCENTAGE OF INDUSTRY NET ASSETS ------------------------------------------------------------------- Basic Materials 6.1% ------------------------------------------------------------------- Capital Goods 1.4 ------------------------------------------------------------------- Consumer Cyclical 3.6 ------------------------------------------------------------------- Consumer Staples 4.6 ------------------------------------------------------------------- Energy 7.1 ------------------------------------------------------------------- Finance 32.4 ------------------------------------------------------------------- Foreign Governments 5.0 ------------------------------------------------------------------- Health Care 4.1 ------------------------------------------------------------------- Services 5.3 ------------------------------------------------------------------- Technology 15.9 ------------------------------------------------------------------- Transportation 0.5 ------------------------------------------------------------------- Utilities 10.1 ------------------------------------------------------------------- Short-Term Investments 5.7 ------------------------------------------------------------------- Other Assets & Liabilities -1.8 ------------------------------------------------------------------- TOTAL 100.0% -------------------------------------------------------------------
DISTRIBUTION BY CATEGORY as of October 31, 2006
PERCENTAGE OF CATEGORY NAME NET ASSETS ------------------------------------------------------------------- Common Stock 45.4% ------------------------------------------------------------------- Asset & Commercial Mortgage Securities 4.7 ------------------------------------------------------------------- Corporate Bonds: Investment Grade 36.3 ------------------------------------------------------------------- Corporate Bonds: Non-Investment Grade 9.7 ------------------------------------------------------------------- Short-Term Investments 5.7 ------------------------------------------------------------------- Other Assets & Liabilities -1.8 ------------------------------------------------------------------- TOTAL 100.0% -------------------------------------------------------------------
8 The Hartford Capital Appreciation Fund (subadvised by Wellington Management Company, LLP) INVESTMENT OBJECTIVE -- SEEKS GROWTH OF CAPITAL. PERFORMANCE OVERVIEW(3) 10/31/96 - 10/31/06 Growth of a $10,000 investment in Class A which includes Sales Charge (LINE GRAPH)
CAPITAL APPRECIATION FUND S&P 500 INDEX RUSSELL 3000 INDEX ------------------------- ------------- ------------------ 10/31/96 9450 10000 10000 10146 10755 10705 10540 10542 10576 11432 11200 11162 11361 11288 11174 10824 10825 10668 10919 11471 11194 13160 12169 11958 14278 12714 12455 15644 13725 13432 15953 12957 12887 17437 13666 13618 10/97 16493 13210 13160 16517 13821 13664 16350 14058 13938 15963 14213 14010 17467 15238 15013 18067 16018 15757 18165 16179 15912 16958 15901 15519 17221 16546 16044 16502 16371 15752 12897 14004 13339 13443 14901 14249 10/98 14774 16112 15331 15782 17088 16268 16882 18072 17302 18130 18827 17890 17064 18242 17257 18511 18972 17890 19561 19707 18697 20346 19242 18342 21454 20308 19269 21710 19675 18684 20950 19577 18472 20577 19041 18000 10/99 21884 20245 19129 23909 20657 19664 28151 21873 20919 27832 20774 20099 32349 20381 20285 32252 22373 21874 28888 21701 21104 27362 21255 20511 30223 21779 21118 29746 21439 20745 33063 22770 22283 32129 21568 21274 10/00 31017 21477 20971 28017 19785 19039 30503 19882 19358 32224 20587 20021 30323 18711 18191 28909 17526 17006 31364 18886 18369 31799 19013 18517 31258 18551 18175 29832 18368 17876 28533 17219 16821 24947 15829 15337 10/01 25670 16132 15693 27395 17369 16902 28448 17522 17140 27341 17266 16926 26511 16933 16579 27756 17570 17306 26043 16505 16398 25713 16384 16208 23595 15218 15042 21530 14032 13846 21967 14123 13911 20285 12590 12449 10/02 21786 13696 13441 23627 14501 14254 21945 13650 13448 21424 13294 13119 21137 13095 12903 20817 13222 13039 22499 14310 14104 24276 15063 14955 24883 15256 15157 25340 15525 15505 26266 15827 15848 26224 15659 15676 10/03 28203 16544 16625 28831 16690 16854 30811 17564 17625 31290 17887 17992 32386 18135 18235 32354 17862 18018 31215 17582 17646 31843 17822 17902 33110 18169 18258 31503 17567 17568 31002 17638 17640 32056 17829 17911 10/04 32780 18101 18205 35025 18834 19052 36335 19474 19731 35494 19000 19205 36845 19399 19628 35419 19056 19296 34376 18695 18877 35387 19289 19592 36079 19317 19729 37878 20035 20538 38197 19852 20342 39549 20013 20520 10/05 38857 19679 20136 40955 20422 20919 41821 20430 20938 43953 20971 21638 43543 21027 21676 44199 21289 22051 45383 21575 22290 43755 20955 21576 43287 20982 21614 42888 21112 21594 43954 21613 22122 44552 22170 22618 10/06 46458 22892 23432
--- CAPITAL APPRECIATION FUND --- S&P 500 INDEX --- RUSSELL 3000 INDEX $9,450 starting value $10,000 starting value $10,000 starting value $46,458 ending value $22,892 ending value $23,432 ending value
S&P 500 INDEX is a market capitalization weighted price index composed of 500 widely held common stocks. RUSSELL 3000 INDEX is an unmanaged index that measures the performance of the 3,000 largest U.S. companies based on total capitalization. The Fund has changed its benchmark from the S&P 500 Index to the Russell 3000 Index because the Fund's investment manager believes that the Russell 3000 Index is better suited to the investment strategy of the Fund. You cannot invest directly in an index. 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 the investment adviser, without which performance would have been lower. For information on current expense waivers/reimbursements, please see the prospectus. AVERAGE ANNUAL TOTAL RETURNS(1,2) (as of 10/31/06)
INCEPTION 1 5 10 SINCE DATE YEAR YEAR YEAR INCEPTION ------------------------------------------------------------------- Cap App A# 7/22/1996 19.56% 12.59% 17.25% 19.17% ------------------------------------------------------------------- Cap App A## 7/22/1996 12.99% 11.32% 16.59% 18.52% ------------------------------------------------------------------- Cap App B# 7/22/1996 18.59% 11.75% NA* NA* ------------------------------------------------------------------- Cap App B## 7/22/1996 13.59% 11.49% NA* NA* ------------------------------------------------------------------- Cap App C# 7/22/1996 18.69% 11.86% 16.47% 18.38% ------------------------------------------------------------------- Cap App C## 7/22/1996 17.69% 11.86% 16.47% 18.38% ------------------------------------------------------------------- Cap App I# 7/22/1996 19.62% 12.60% 17.26% 19.18% ------------------------------------------------------------------- Cap App Y# 7/22/1996 20.07% 13.19% 13.19% 19.76% -------------------------------------------------------------------
# Without sales charge ## With sales charge * 10 year and inception returns are not applicable for Class B because after 8 years Class B converts to Class A. PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS. (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. Class I shares commenced operations on 8/31/06. Performance prior to 8/31/06 reflects Class A performance. (2) The initial investment in Class A shares reflects the maximum sales charge and Classes B and C reflect CDSC. (3) Growth of a $10,000 investment in Classes B, C, I and Y shares will vary from results seen above due to differences in the expenses charged to these share classes. PORTFOLIO MANAGEMENT SAUL J. PANNELL, CFA Senior Vice President, Partner FRANK D. CATRICKES, CFA Vice President -------------------------------------------------------------------------------- HOW DID THE FUND PERFORM? The Class A shares of The Hartford Capital Appreciation Fund returned 19.56%, before sales charges, for the twelve-month period ended October 31, 2006, outperforming its benchmark, the Russell 3000 Index, which returned 16.37% for the same period. The Fund also outperformed the 14.50% return of the average fund in the Lipper Multi-Cap Core Funds peer group, a group of funds with investment strategies similar to those of the Fund. WHY DID THE FUND PERFORM THIS WAY? As measured by the Russell 3000 Index, equity markets ended broadly higher for the fourth fiscal year in a row. Ten of the last twelve months were positive, with May showing the only significant decline as investors moved briefly away from stocks in favor of less risky assets. Every sector in the benchmark posted double digit positive returns for the period, led by a disparate group of sectors: Telecommunication Services (+33%), Materials (+25%), and Financials (+20%). The laggards in this environment were Health Care (+11%), Technology (+11%), and Consumer Staples (+13%). These positive returns took place against a backdrop of a weakening housing market, declining energy prices and continued turmoil in Iraq. Relative (i.e. performance of the Fund as measured against the benchmark) and absolute performance was robust across the board. The Fund's results exceeded those of the benchmark in eight of ten economic sectors, and all sectors provided positive absolute returns. Relative performance was particularly strong in the Financials, Information Technology, and Consumer Discretionary sectors. Brazilian bank Unibanco and Chinese insurance company China Life led the way among Financials stocks. In Technology, Korean electronics giant Samsung and Taiwanese PC component manufacturer Hon Hai boosted relative returns. Within Consumer Discretionary stocks, department store company Federated and auto giant Toyota contributed most to relative outperformance. Other top relative and absolute contributors included airline US Airways, and coal and metals producer Teck Cominco. 9 -------------------------------------------------------------------------------- The Fund lagged the benchmark in the Health Care and Energy sectors. Within Health Care, medical device company Boston Scientific fell on safety concerns regarding the company's implantable defibrillators and a Wall Street Journal article stating that drug-eluting stents could be linked to higher incidences of blood clots. We maintain our position as we expect improvement in cardiac rhythm management, and the stock is attractively priced. Shares in Israeli generic drug company Teva traded lower as the market absorbed news that Merck would be pricing its Zocor drug competitively when it came off patent. We continue to hold Teva as we believe the market is overestimating the impact of this development. Lagging performance in Energy was primarily a result of not holding a position in rising Exxon Mobil stock and owning shares of South African oil and gas company Sasol. Other negative contributors included global semiconductor company Marvell and flash storage company SanDisk. WHAT IS THE OUTLOOK? We maintain our expectations for stable, albeit moderate global growth over the coming years. We expect a slowdown in economic activity and easing inflationary pressures that should keep the global central banks on "hold" over the next year. We continue to focus our efforts on picking stocks one-at-a-time based on detailed fundamental research. At the end of the period, our stock-by-stock investment process resulted in greater-than-benchmark weights in Materials, Information Technology, and Industrials stocks and less-than-benchmark weights in Financials, Consumer Staples, and Health Care. Our largest absolute sector weights at period-end were in the Technology, Industrials, and Financials sectors. DIVERSIFICATION BY INDUSTRY as of October 31, 2006
PERCENTAGE OF INDUSTRY NET ASSETS ------------------------------------------------------------------- Basic Materials 10.9% ------------------------------------------------------------------- Capital Goods 7.5 ------------------------------------------------------------------- Consumer Cyclical 6.6 ------------------------------------------------------------------- Consumer Staples 3.1 ------------------------------------------------------------------- Energy 5.7 ------------------------------------------------------------------- Finance 14.8 ------------------------------------------------------------------- Health Care 5.1 ------------------------------------------------------------------- Services 6.2 ------------------------------------------------------------------- Technology 29.3 ------------------------------------------------------------------- Transportation 1.9 ------------------------------------------------------------------- Utilities 2.0 ------------------------------------------------------------------- Short-Term Investments 15.9 ------------------------------------------------------------------- Other Assets & Liabilities -9.0 ------------------------------------------------------------------- TOTAL 100.0% -------------------------------------------------------------------
DIVERSIFICATION BY COUNTRY as of October 31, 2006
PERCENTAGE OF COUNTRY NET ASSETS ------------------------------------------------------------------- Australia 0.7% ------------------------------------------------------------------- Bermuda 2.0 ------------------------------------------------------------------- Brazil 3.6 ------------------------------------------------------------------- Canada 2.7 ------------------------------------------------------------------- China 0.5 ------------------------------------------------------------------- France 0.5 ------------------------------------------------------------------- Germany 1.3 ------------------------------------------------------------------- Hong Kong 0.8 ------------------------------------------------------------------- India 2.3 ------------------------------------------------------------------- Ireland 0.2 ------------------------------------------------------------------- Israel 1.1 ------------------------------------------------------------------- Japan 3.1 ------------------------------------------------------------------- Liberia 0.8 ------------------------------------------------------------------- Luxembourg 1.1 ------------------------------------------------------------------- Mexico 0.5 ------------------------------------------------------------------- Russia 0.3 ------------------------------------------------------------------- South Africa 0.8 ------------------------------------------------------------------- South Korea 2.3 ------------------------------------------------------------------- Switzerland 1.6 ------------------------------------------------------------------- Taiwan 0.5 ------------------------------------------------------------------- Turkey 1.1 ------------------------------------------------------------------- United Kingdom 3.9 ------------------------------------------------------------------- United States 61.4 ------------------------------------------------------------------- Short Term Investments 15.9 ------------------------------------------------------------------- Other Assets & Liabilities -9.0 ------------------------------------------------------------------- TOTAL 100.0% -------------------------------------------------------------------
10 The Hartford Capital Appreciation II Fund (subadvised by Wellington Management Company, LLP) INVESTMENT OBJECTIVE -- SEEKS GROWTH OF CAPITAL. PERFORMANCE OVERVIEW(3) 4/29/05 - 10/31/06 Growth of a $10,000 investment in Class A which includes Sales Charge (LINE GRAPH)
CAPITAL APPRECIATION II FUND RUSSELL 3000 INDEX S&P 500 INDEX ---------------------------- ------------------ ------------- 4/29/05 9450 10000 10000 9450 10000 10000 9809 10379 10318 6/05 10008 10451 10333 10452 10880 10717 8/05 10518 10776 10619 10669 10871 10705 10/05 10461 10667 10526 10890 11082 10924 12/05 11225 11092 10928 11972 11463 11217 2/06 11838 11483 11248 12068 11682 11388 4/06 12460 11808 11541 11972 11430 11209 6/06 11857 11450 11224 11723 11440 11293 8/06 11981 11720 11561 12135 11982 11859 10/06 12575 12413 12245
--- CAPITAL APPRECIATION II --- RUSSELL 3000 INDEX --- S&P 500 INDEX FUND $10,000 starting value $10,000 starting value $9,450 starting value $12,413 ending value $12,245 ending value $12,575 ending value
RUSSELL 3000 INDEX is an unmanaged index that measures the performance of the 3,000 largest U.S. companies based on total capitalization. S&P 500 INDEX is a market capitalization weighted price index composed of 500 widely held common stocks. You cannot invest directly in an index. 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 the investment adviser, without which performance would have been lower. For information on current expense waivers/reimbursements, please see the prospectus. AVERAGE ANNUAL TOTAL RETURNS(1,2) (as of 10/31/06)
INCEPTION SINCE DATE 1 YEAR INCEPTION --------------------------------------------------- Cap App II A# 4/29/2005 20.21% 20.88% --------------------------------------------------- Cap App II A## 4/29/2005 13.60% 16.43% --------------------------------------------------- Cap App II B# 4/29/2005 19.48% 20.03% --------------------------------------------------- Cap App II B## 4/29/2005 14.48% 17.59% --------------------------------------------------- Cap App II C# 4/29/2005 19.35% 20.09% --------------------------------------------------- Cap App II C## 4/29/2005 18.35% 20.09% --------------------------------------------------- Cap App II I## 4/29/2005 20.30% 20.94% --------------------------------------------------- Cap App II Y# 4/29/2005 20.74% 21.30% ---------------------------------------------------
# Without sales charge ## With sales charge PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS. (1) Class I shares commenced operations on 8/31/06. Performance prior to 8/31/06 reflects Class A performance. (2) The initial investment in Class A shares reflects the maximum sales charge and Classes B and C reflect CDSC. (3) Growth of a $10,000 investment in Classes B, C, I and Y shares will vary from results seen above due to differences in the expenses charged to these share classes. PORTFOLIO MANAGEMENT JAMES H. AVERILL, PHD Senior Vice President DAVID R. FASSNACHT, CFA Senior Vice President JAMES N. MORDY Senior Vice President DAVID W. PALMER, CFA Vice President MICHAEL T. CARMEN, CFA Senior Vice President FRANK D. CATRICKES, CFA Vice President NICHOLAS M. CHOUMENKOVITCH, CFA Vice President SAUL J. PANNELL, CFA Senior Vice President -------------------------------------------------------------------------------- HOW DID THE FUND PERFORM? The Class A shares of The Hartford Capital Appreciation Fund II returned 20.21%, before sales charges, for the twelve-month period ended October 31, 2006, outperforming its benchmark, the Russell 3000 Index, which returned 16.37% for the same period. The Fund also outperformed the 10.39% return of the average fund in the Lipper Multi-Cap Growth Funds peer group, a group of funds with investment strategies similar to those of the Fund. WHY DID THE FUND PERFORM THIS WAY? As measured by the Russell 3000, equity markets ended broadly higher for the fourth fiscal year in a row. Ten of the last twelve months were positive, with May showing the only significant decline as investors moved briefly away from stocks in favor of less risky assets. Every sector in the benchmark posted double digit positive returns for the period, led by a disparate group of sectors: Telecommunication Services (+33%), Materials (+25%), and Financials (+20%). The laggards in this environment were Health Care (+11%), Information Technology (+11%), and Consumer Staples (+13%). These positive returns took place against a backdrop of a weakening housing market, declining energy prices, and continued turmoil in Iraq. Relative (i.e. performance of the Fund as measured against the benchmark) and absolute performance was robust across the board. Fund results exceeded those of the benchmark in eight of ten economic sectors, and all sectors provided positive absolute returns. Relative performance was particularly strong in the Information Technology, Materials, and Energy sectors. Information 11 -------------------------------------------------------------------------------- Technology results benefited from a position in data storage company Network Appliance and by not holding a position in Intel, which fell during the period. Relative performance in Materials was boosted by positions in Zinifex, Vedanta, and Xstrata, all of which more than doubled in the last twelve months. Zinifex, a leading zinc producer, rose on favorable supply/demand trends in the zinc market. Indian miner Vedanta showed strong organic growth, a trend we expect will continue. Xstrata, a diversified mining company, benefited from expectations for its accretive acquisition of rival Falconbridge. Within Energy, relative performance was primarily a result of a position in uranium producer Cameco, which gained on favorable uranium supply and demand trends. Finally, the fund benefited from its holdings in Gol Linhas Aereas, Brazil's low cost airline carrier and one of the most profitable airlines globally. Performance relative to the benchmark was negatively impacted by sector positioning, which is a fallout of the bottom-up investment process. In particular, underweights (i.e. the Fund's sector position was less than the benchmark position) in the strong Financials and Telecommunication Services sectors detracted from relative performance. In addition, relative performance was hurt by stock selection among Consumer Staples and Telecommunication Services stocks. Underperformance in Consumer Staples was driven by a position in lagging tobacco company Altria and by exiting Procter & Gamble prior to the stock's summer rise. Relative performance in Telecommunication Services was hurt by not owning a position in BellSouth, which rose on news of the company's merger with AT&T. Other notable detractors from both absolute and relative returns during the period were Sirius Satellite (Media), Williams-Sonoma (Retailing), and Standard Pacific (Consumer Durables). Sirius Satellite fell on decelerating trends in subscriber growth, while concerns about a weakening global consumer weighed on the share price of Williams-Sonoma. Standard Pacific fell as evidence mounted of a deteriorating housing market. The Fund was also impacted by an underweight position in rising Exxon Mobil shares. WHAT IS THE OUTLOOK? Hartford Capital Appreciation II Fund is a multi-managed Fund with an opportunistic investment approach. The Fund's managers pursue diverse and complementary investment strategies, with fundamental, bottom-up research as the foundation for portfolio construction. The Fund is not designed to exhibit an intentional style bias, as the investment opportunity set includes stocks from the full range of market capitalizations and investment styles. We continue to focus our efforts on picking stocks one-at-a-time based on detailed fundamental research. At the end of the period, our stock-by-stock investment process resulted in greater-than-benchmark weights in Materials, Consumer Discretionary, and Information Technology stocks and less-than-benchmark weights in Consumer Staples, Financials, and Utilities. Our largest absolute sector weights at period-end were in the Financials, Technology, and Consumer Discretionary sectors. DIVERSIFICATION BY INDUSTRY as of October 31, 2006
PERCENTAGE OF INDUSTRY NET ASSETS ------------------------------------------------------------------- Basic Materials 11.0% ------------------------------------------------------------------- Capital Goods 5.2 ------------------------------------------------------------------- Consumer Cyclical 8.2 ------------------------------------------------------------------- Consumer Staples 2.4 ------------------------------------------------------------------- Energy 5.1 ------------------------------------------------------------------- Finance 17.7 ------------------------------------------------------------------- Health Care 8.8 ------------------------------------------------------------------- Services 6.6 ------------------------------------------------------------------- Technology 22.8 ------------------------------------------------------------------- Transportation 3.7 ------------------------------------------------------------------- Utilities 2.0 ------------------------------------------------------------------- Short Term Investments 4.9 ------------------------------------------------------------------- Other Assets & Liabilities 1.6 ------------------------------------------------------------------- TOTAL 100.0% -------------------------------------------------------------------
DIVERSIFICATION BY COUNTRY as of October 31, 2006
PERCENTAGE OF COUNTRY NET ASSETS ------------------------------------------------------------------- Australia 1.1% ------------------------------------------------------------------- Austria 0.2 ------------------------------------------------------------------- Bermuda 0.5 ------------------------------------------------------------------- Brazil 2.8 ------------------------------------------------------------------- Canada 3.6 ------------------------------------------------------------------- Cayman Islands 0.5 ------------------------------------------------------------------- China 1.2 ------------------------------------------------------------------- France 3.3 ------------------------------------------------------------------- Germany 0.5 ------------------------------------------------------------------- Hong Kong 0.9 ------------------------------------------------------------------- Ireland 0.1 ------------------------------------------------------------------- Israel 0.2 ------------------------------------------------------------------- Italy 1.3 ------------------------------------------------------------------- Japan 2.6 ------------------------------------------------------------------- Mexico 0.2 ------------------------------------------------------------------- Netherlands 1.2 ------------------------------------------------------------------- Panama 0.1 ------------------------------------------------------------------- Russia 0.5 ------------------------------------------------------------------- South Africa 0.4 ------------------------------------------------------------------- South Korea 0.6 ------------------------------------------------------------------- Spain 0.4 ------------------------------------------------------------------- Sweden 0.5 ------------------------------------------------------------------- Switzerland 1.7 ------------------------------------------------------------------- Turkey 0.3 ------------------------------------------------------------------- United Kingdom 3.0 ------------------------------------------------------------------- United States 65.8 ------------------------------------------------------------------- Short-Term Investments 4.9 ------------------------------------------------------------------- Other Assets & Liabilities 1.6 ------------------------------------------------------------------- TOTAL 100.0% -------------------------------------------------------------------
12 The Hartford Conservative Allocation Fund (advised by Hartford Investment Financial Services, LLC) INVESTMENT OBJECTIVE -- SEEKS CURRENT INCOME AND LONG-TERM CAPITAL APPRECIATION. PERFORMANCE OVERVIEW(3) 5/28/04 - 10/31/06 Growth of a $10,000 investment in Class A which includes Sales Charge (LINE GRAPH)
LEHMAN BROTHERS U.S. CONSERVATIVE ALLOCATION FUND S&P 500 INDEX AGGREGATE BOND INDEX ---------------------------- ------------- -------------------- 5/28/04 9450 10000 10000 6/04 9573 10194 10057 9431 9857 10156 9497 9897 10350 9606 10004 10378 10/04 9729 10157 10465 9900 10567 10382 10087 10927 10477 9982 10661 10543 2/05 10068 10885 10481 9929 10692 10427 9872 10490 10568 10054 10823 10682 6/05 10136 10838 10741 10271 11241 10643 10348 11139 10779 10357 11229 10668 10/05 10212 11042 10584 10422 11459 10631 10559 11463 10732 10806 11766 10732 2/06 10786 11798 10768 10823 11945 10662 10922 12105 10643 10753 11757 10631 6/06 10730 11773 10654 10750 11846 10798 10930 12127 10963 11027 12439 11060 10/06 11217 12844 11133
--- CONSERVATIVE ALLOCATION -- LEHMAN BROTHERS U.S. AGGREGATE --- S&P 500 INDEX FUND BOND INDEX $10,000 starting value $9,450 starting value $10,000 starting value $12,844 ending value $11,217 ending value $11,133 ending value
S&P 500 INDEX is a market capitalization weighted price index composed of 500 widely held common stocks. 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 Index and Commercial Mortgage-Backed Securities Index. You cannot invest directly in an index. 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 distribution or the redemption of fund shares. Performance information may reflect historical or current expense waivers/reimbursements from the investment adviser, without which performance would have been lower. For information on current expense waivers/reimbursements, please see the prospectus. AVERAGE ANNUAL TOTAL RETURNS(1,2) (as of 10/31/06)
INCEPTION SINCE DATE 1 YEAR INCEPTION ---------------------------------------------------------------- Conservative Allocation A# 5/28/2004 9.85% 7.32% ---------------------------------------------------------------- Conservative Allocation A## 5/28/2004 3.81% 4.85% ---------------------------------------------------------------- Conservative Allocation B# 5/28/2004 9.19% 6.65% ---------------------------------------------------------------- Conservative Allocation B## 5/28/2004 4.19% 5.51% ---------------------------------------------------------------- Conservative Allocation C# 5/28/2004 9.10% 6.62% ---------------------------------------------------------------- Conservative Allocation C## 5/28/2004 8.10% 6.62% ---------------------------------------------------------------- Conservative Allocation I# 5/28/2004 9.91% 7.34% ----------------------------------------------------------------
# Without sales charge ## With sales charge PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS. (1) Class I shares commenced operations on 8/31/06. Performance prior to 8/31/06 reflects Class A performance. (2) The initial investment in Class A shares reflects the maximum sales charge and Classes B and C reflect CDSC. (3) Growth of a $10,000 investment in Classes B, C and I shares will vary from results seen above due to differences in the expenses charged to these share classes. PORTFOLIO MANAGERS WILLIAM DAVISON, CFA Senior Vice President CHRISTOPHER HANLON, CFA Senior Vice President HUGH WHELAN, CFA Executive Vice President -------------------------------------------------------------------------------- HOW DID THE FUND PERFORM? The Hartford Conservative Allocation Fund (Class A) gained 9.85%, before sales charges, for the year ended October 31, 2006, versus the returns of 7.62% for the Lipper Mixed-Asset Target Allocation Conservative Funds peer group, 5.19% for the Lehman Brothers U.S. Aggregate Bond Index and 16.33% for the S&P 500 Index. WHY DID THE FUND PERFORM THIS WAY? The Fund's fiscal year, which ended October 31, 2006, began in a period of rising interest rates. Historically high energy and commodity prices, a boom in the housing market, and a strengthening economy led to concerns about rising inflation. To keep inflation in check, the Federal Reserve (the Fed) continued its cycle of monetary tightening that began in the summer of 2004. By June of 2006, the Fed had raised its Federal Funds Target Rate (Fed Funds Rate) 17 consecutive times, leaving the Fed Funds Rate at 5.25%. In response to the Fed's tightening, short- and intermediate-term bond yields rose through the first half of 2006. Thus, as interest rates rose, the principal value of these short- and intermediate-term bonds declined in response. In contrast, long-term bond yields did not rise as substantially due to overseas demand and expectations that the Fed could keep inflation low over the long run. The result was a yield curve that remained flat or even inverted (i.e. bonds with longer term maturities having a lower interest rate than bonds with shorter maturities) through most of the fiscal year. However, by August of 2006, the Fed became concerned that economic growth was slowing, in part due to the retreating housing market. As such, the Fed found itself in a conundrum as to whether it should continue raising interest rates to restrain inflation, or to pause in the tightening cycle to assess prospects for further economic growth. Since changes in the rate of inflation often lag changes in economic conditions, the Fed left rates unchanged at its two most recent meetings while it waited for more data before taking action. Sensing that the Fed would continue easing monetary policy, the bond and equity markets rallied in the last months of the fiscal year. While stocks, and in particular foreign and small cap stocks, performed strongly for the year, fixed income securities provided more modest gains. For the full 12 month period, value oriented stocks outpaced growth stocks. However, growth stocks did return to favor in the last few months of the fiscal year. Aided in part by favorable currency movements and strengthening foreign 13 -------------------------------------------------------------------------------- economies, the international and emerging market equity indices outperformed the major domestic indices for the year. Fortunately, the bond rally over the last few months offset the negative impact of rising interest rates earlier in the year, allowing the major bond sectors to finish with positive returns for the period. During much of the year, fixed income investors were unable to achieve higher levels of yield by going out longer on the yield curve (i.e. purchasing bonds with a longer maturity date). Thus, many bond investors shifted to lower quality and foreign issues as they sought greater yield. During the period, the traditionally "riskier" high yield and emerging markets bonds were among the strongest performers for the year. Based upon the Fund's design, the Fund's fixed income component typically is less sensitive to changes in interest rates than the Lehman benchmark. Additionally, the Fund's fixed income component was more defensive than normal this year, since the underlying fund managers generally assumed the bond markets were underestimating the potential for higher inflation. As interest rates declined during most of the fiscal year, the Fund's fixed income component delivered positive performance. Although, the Fund's defensive stance did not allow it to participate fully in the bond rally that occurred late in the period, the Fund benefited from the out-of-index exposure to "spread" sectors and higher yielding securities. With the Dow Jones Industrial reaching its all- time high late in the period, the Fund also generated positive gains from its allocation to equities. The Fund is constructed such that it has exposure to the various styles of equities, including international, mid-cap and small cap stocks. This diversification is expected to enhance the long-term return and risk characteristics of the Fund. The added diversification benefited the Fund through most of the year. However, since domestic, large cap stocks dominated the stock rally late in the period, the Fund's exposure to foreign and smaller capitalization equities partially offset some of their earlier contributions. The Fund typically uses cash flows to implement investment allocation changes to the Fund, when appropriate. However, a hard asset rebalance (i.e. a fund rebalancing to move the underlying fund investments to their target allocation percentages) was performed in February due to the strong performance by certain investment sectors. WHAT IS THE OUTLOOK? The recent rally in fixed-rate bonds has resulted in bond prices that reflect an environment of economic weakness that is not consistent with our view of the economy. Declines in interest rates and gasoline prices, coupled with a decent employment picture and gains in the stock market, should be supportive of continued consumer spending. While housing remains a wild card for the U.S. economy, our view is that the Fed is still concerned with inflation and that policy decisions will favor price stability as long as economic growth does not decline dramatically. In the coming months we will be closely watching the economy to determine the impact of a slower housing market on the average U.S. consumer and what implications that has for the economy going forward. COMPOSITION BY UNDERLYING FUND as of October 31, 2006
PERCENTAGE OF FUND NAME NET ASSETS ------------------------------------------------------------------- Hartford Capital Appreciation Fund, Class Y 8.2% ------------------------------------------------------------------- Hartford Disciplined Equity Fund, Class Y 5.7 ------------------------------------------------------------------- Hartford Equity Income Fund, Class Y 1.2 ------------------------------------------------------------------- Hartford Floating Rate Fund, Class Y 6.4 ------------------------------------------------------------------- Hartford Global Leaders Fund, Class Y 3.3 ------------------------------------------------------------------- Hartford Growth Opportunities Fund, Class Y 0.8 ------------------------------------------------------------------- Hartford High Yield Fund, Class Y 4.1 ------------------------------------------------------------------- Hartford Income Fund, Class Y 6.9 ------------------------------------------------------------------- Hartford Inflation Plus Fund, Class Y 11.9 ------------------------------------------------------------------- Hartford International Capital Appreciation Fund, Class Y 1.8 ------------------------------------------------------------------- Hartford International Opportunities Fund, Class Y 1.9 ------------------------------------------------------------------- Hartford International Small Company Fund, Class Y 2.7 ------------------------------------------------------------------- Hartford MidCap Value Fund, Class Y 1.9 ------------------------------------------------------------------- Hartford Money Market Fund, Class Y 0.0 ------------------------------------------------------------------- Hartford Select MidCap Growth Fund, Class Y 1.8 ------------------------------------------------------------------- Hartford Select MidCap Value Fund, Class Y 0.2 ------------------------------------------------------------------- Hartford Select SmallCap Growth Fund, Class Y 0.4 ------------------------------------------------------------------- Hartford Short Duration Fund, Class Y 13.5 ------------------------------------------------------------------- Hartford Small Company Fund, Class Y 1.0 ------------------------------------------------------------------- Hartford SmallCap Growth Fund, Class Y 1.1 ------------------------------------------------------------------- Hartford Stock Fund, Class Y 3.5 ------------------------------------------------------------------- Hartford Total Return Bond Fund, Class Y 17.2 ------------------------------------------------------------------- Hartford Value Opportunities Fund, Class Y 4.4 ------------------------------------------------------------------- Other Assets & Liabilities 0.1 ------------------------------------------------------------------- TOTAL 100.0% -------------------------------------------------------------------
14 The Hartford Disciplined Equity Fund (subadvised by Wellington Management Company, LLP) INVESTMENT OBJECTIVE -- SEEKS GROWTH OF CAPITAL. PERFORMANCE OVERVIEW(3) 4/30/98 - 10/31/06 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 9592 10227 9592 10119 8269 8656 8829 9210 10/98 9625 9959 10156 10562 10847 11170 11198 11637 10790 11275 11311 11726 11652 12181 11416 11893 12145 12552 11889 12161 11719 12100 11368 11769 10/99 11861 12513 12177 12768 13104 13519 12359 12840 12330 12597 13648 13829 13104 13413 12779 13138 13249 13462 13143 13251 14028 14074 13181 13331 10/00 13123 13275 12073 12229 12254 12289 12855 12724 11813 11565 11172 10833 12073 11673 12174 11752 11923 11466 11663 11353 10971 10643 10059 9784 10/01 10380 9971 11111 10736 11212 10830 10951 10672 10631 10466 11021 10860 10250 10202 10150 10127 9298 9406 8657 8673 8707 8730 7755 7782 10/02 8446 8466 8897 8963 8396 8437 8116 8217 7985 8094 8036 8172 8657 8845 9128 9310 9208 9429 9328 9596 9538 9783 9538 9679 10/03 10100 10226 10250 10316 10777 10856 10937 11056 11058 11209 10887 11040 10737 10867 10727 11016 10968 11230 10526 10858 10516 10902 10627 11020 10/04 10697 11188 11158 11641 11611 12037 11388 11744 11611 11991 11388 11778 11187 11555 11590 11922 11722 11940 12146 12383 12115 12270 12237 12370 10/05 11893 12163 12338 12623 12315 12627 12618 12962 12608 12997 12730 13159 12851 13335 12487 12952 12497 12969 12507 13049 12780 13359 13032 13703 10/06 13336 14149
--- DISCIPLINED EQUITY FUND --- S&P 500 INDEX $9,450 starting value $10,000 starting value $13,336 ending value $14,149 ending value
S&P 500 INDEX is a market capitalization weighted price index composed of 500 widely held common stocks. You cannot invest directly in an index. 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 the investment adviser, without which performance would have been lower. For information on current expense waivers/reimbursements, please see the prospectus. AVERAGE ANNUAL TOTAL RETURNS(1,2) (as of 10/31/06)
INCEPTION SINCE DATE 1 YEAR 5 YEAR INCEPTION ----------------------------------------------------------------- Disciplined Eqy A# 4/30/1998 12.13% 5.14% 4.13% ----------------------------------------------------------------- Disciplined Eqy A## 4/30/1998 5.97% 3.95% 3.44% ----------------------------------------------------------------- Disciplined Eqy B# 4/30/1998 11.38% 4.41% NA* ----------------------------------------------------------------- Disciplined Eqy B## 4/30/1998 6.38% 4.08% NA* ----------------------------------------------------------------- Disciplined Eqy C# 4/30/1998 11.37% 4.42% 3.42% ----------------------------------------------------------------- Disciplined Eqy C## 4/30/1998 10.37% 4.42% 3.42% ----------------------------------------------------------------- Disciplined Eqy Y# 4/30/1998 12.76% 5.72% 4.66% -----------------------------------------------------------------
# Without sales charge ## With sales charge * Inception returns are not applicable for Class B because after 8 years Class B converts to Class A. PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS. (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 shares reflects the maximum sales charge and Classes B and C reflect CDSC. (3) Growth of a $10,000 investment in Classes B, C and Y shares will vary from results seen above due to differences in the expenses charged to these share classes. PORTFOLIO MANAGEMENT JAMES A. RULLO, CFA Senior Vice President MAMMEN CHALLY, CFA Vice President -------------------------------------------------------------------------------- HOW DID THE FUND PERFORM? The Class A shares of The Hartford Disciplined Equity Fund returned 12.13%, before sales charges, for the twelve-month period ended October 31, 2006, underperforming its benchmark, the S&P 500, which returned 16.33% for the same period. The Fund also underperformed the 14.23% return of the average fund in the Lipper Large-Cap Core Funds peer group, a group of funds with investment strategies similar to those of the Fund. WHY DID THE FUND PERFORM THIS WAY? US equities recorded strong one-year performance, the best among major developed markets. In recent months, fears of excessive inflation and impending recession were tempered by the sharp drop in energy prices and the rumblings that the Federal Reserve may consider lowering the key fed funds rate in early 2007, bolstering U.S. stocks. The news has not been uniformly positive; however, as the long-awaited slowdown in the US housing market has arrived. The fund's underperformance versus the S&P 500 was driven primarily by stock selection within the Energy and Consumer Discretionary sectors. Lower gasoline prices in the US, the lack of hurricane activity in the Gulf of Mexico, and a calmer geo-political front have all contributed to declines in energy stocks. Companies such as ConocoPhillips and Occidental Petroleum traded lower during the year and detracted from overall performance. Shares of homebuilder DR Horton suffered as declines in housing starts and record inventories impacted the stock. In addition, the negative homebuilder sentiment associated with Federal Reserve's rate increases excessively weighed on market sentiment towards this industry. We no longer hold the security. Among other absolute detractors from performance were Technology & Hardware securities Dell and Qualcomm, which were eliminated during the period. Shares of computer systems manufacturer Dell fell as it faced increased competition and a weak growth outlook for its PC business in the US. Dell has been under pressure due to speculation that the company will cut future pricing and margins in order to accelerate growth. Communication Equipment company Qualcomm also underperformed on lower near-term growth prospects and legal uncertainties. The Fund benefited from positive stock selection relative to the benchmark in the Financials and Utilities sectors. Financials sector performance was helped by Goldman Sachs, Bank of America and Lehman Brothers, all of which profited from strong trading revenues. Bank of America benefited from better than expected savings from the integration of MBNA and continued low credit losses. Other top relative contributors included Office Depot, 15 -------------------------------------------------------------------------------- Lockheed Martin, and TXU. Retail holding Office Depot benefited from strong momentum in North America office retail and delivery businesses combined with improving international operations. Shares of defense contractor Lockheed Martin climbed as the company continued to excel operationally and the forecast for US defense spending remains favorable. We initiated a position in electric utility TXU whose shares benefited from strong earnings and a positive response to its plan to expand generation capacity. WHAT IS THE OUTLOOK? The risk of a US recession is still present. Still, several factors make us believe that a hard landing can be avoided. A more benign energy price environment will push inflation lower in 2007, which will, all else equal, put more spending power into consumers' pockets. Modestly lower bond yields should help stabilize the housing market at some point. Lastly, the Federal Reserve Bank (the Fed) will stand ready to cut the Fed Fund's rate if there is an unexpected deterioration in the labor market. DIVERSIFICATION BY INDUSTRY as of October 31, 2006
PERCENTAGE OF INDUSTRY NET ASSETS ------------------------------------------------------------------- Basic Materials 4.6% ------------------------------------------------------------------- Capital Goods 6.5 ------------------------------------------------------------------- Consumer Cyclical 6.8 ------------------------------------------------------------------- Consumer Staples 1.9 ------------------------------------------------------------------- Energy 9.9 ------------------------------------------------------------------- Finance 23.1 ------------------------------------------------------------------- Health Care 12.7 ------------------------------------------------------------------- Services 7.5 ------------------------------------------------------------------- Technology 24.6 ------------------------------------------------------------------- Transportation 0.2 ------------------------------------------------------------------- Utilities 1.9 ------------------------------------------------------------------- Short-Term Investments 0.6 ------------------------------------------------------------------- Other Assets & Liabilities -0.3 ------------------------------------------------------------------- TOTAL 100.0% -------------------------------------------------------------------
16 The Hartford Dividend and Growth Fund (subadvised by Wellington Management Company, LLP) INVESTMENT OBJECTIVE -- SEEKS A HIGH LEVEL OF CURRENT INCOME CONSISTENT WITH GROWTH OF CAPITAL. PERFORMANCE OVERVIEW(3) 10/31/96 - 10/31/06 Growth of a $10,000 investment in Class A which includes Sales Charge (LINE GRAPH)
DIVIDEND AND GROWTH FUND S&P 500 INDEX RUSSELL 1000 VALUE INDEX ------------------------ ------------- ------------------------ 10/31/96 9450 10000 10000 9964 10755 10725 9878 10542 10588 10344 11200 11102 10508 11288 11265 10102 10825 10860 10430 11471 11316 11103 12169 11948 11701 12714 12461 12377 13725 13398 11788 12957 12921 12483 13666 13702 10/97 12109 13210 13319 12682 13821 13908 12939 14058 14314 13106 14213 14111 13660 15238 15061 14379 16018 15982 14300 16179 16089 14062 15901 15851 14209 16546 16054 14103 16371 15770 12300 14004 13424 13070 14901 14194 10/98 13994 16112 15293 14412 17088 16006 14812 18072 16551 14669 18827 16683 14447 18242 16447 14802 18972 16788 15714 19707 18356 15312 19242 18154 15827 20308 18681 15335 19675 18134 14940 19577 17461 14545 19041 16851 10/99 15380 20245 17821 15294 20657 17682 15489 21873 17767 14864 20774 17187 14028 20381 15910 15571 22373 17852 15378 21701 17644 15700 21255 17830 15208 21779 17015 15208 21439 17228 16070 22770 18187 16222 21568 18353 10/00 16538 21477 18804 16213 19785 18106 17044 19882 19013 16780 20587 19086 16624 18711 18556 16090 17526 17900 16911 18886 18778 17195 19013 19200 16752 18551 18774 16860 18368 18734 16321 17219 17983 15259 15829 16718 10/01 15269 16132 16574 16092 17369 17537 16264 17522 17950 16305 17266 17812 16555 16933 17841 16995 17570 18685 16293 16505 18044 16443 16384 18134 15581 15218 17093 14376 14032 15504 14275 14123 15621 12725 12590 13884 10/02 13661 13696 14913 14576 14501 15852 13957 13650 15164 13483 13294 14797 13201 13095 14402 13173 13222 14426 14133 14310 15696 15032 15063 16709 15159 15256 16918 15301 15525 17170 15635 15827 17438 15446 15659 17268 10/03 16177 16544 18324 16471 16690 18573 17538 17564 19718 17589 17887 20064 17904 18135 20495 17680 17862 20315 17507 17582 19819 17517 17822 20021 17961 18169 20494 17553 17567 20205 17706 17638 20492 18010 17829 20810 10/04 18205 18101 21156 18979 18834 22226 19644 19474 22970 19156 19000 22562 19842 19399 23310 19444 19056 22990 19027 18695 22578 19361 19289 23122 19450 19317 23375 20129 20035 24051 20129 19852 23947 20484 20013 24283 10/05 20002 19679 23666 20613 20422 24444 20709 20430 24590 21430 20971 25545 21321 21027 25701 21657 21289 26049 22216 21575 26711 21744 20955 26037 21770 20982 26203 22155 21112 26840 22552 21613 27289 22955 22170 27833 10/06 23729 22892 28744
--- DIVIDEND AND GROWTH --- S&P 500 INDEX -- RUSSELL 1000 VALUE INDEX FUND $10,000 starting value $10,000 starting value $9,450 starting value $22,892 ending value $28,744 ending value $23,729 ending value
S&P 500 INDEX is a market capitalization weighted price index composed of 500 widely held common stocks. RUSSELL 1000 VALUE INDEX measures the performance of those Russell 1000 Index companies with lower price-to-book ratios and lower forecasted growth values. You cannot invest directly in an index. 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 the investment adviser, without which performance would have been lower. For information on current expense waivers/reimbursements, please see the prospectus. AVERAGE ANNUAL TOTAL RETURNS(1,2) (as of 10/31/06)
INCEPTION 1 5 10 SINCE DATE YEAR YEAR YEAR INCEPTION ---------------------------------------------------------------------- Div & Growth A# 7/22/1996 18.63% 9.21% 9.64% 10.42% ---------------------------------------------------------------------- Div & Growth A## 7/22/1996 12.11% 7.99% 9.02% 9.81% ---------------------------------------------------------------------- Div & Growth B# 7/22/1996 17.63% 8.34% NA* NA* ---------------------------------------------------------------------- Div & Growth B## 7/22/1996 12.63% 8.05% NA* NA* ---------------------------------------------------------------------- Div & Growth C# 7/22/1996 17.75% 8.47% 8.88% 9.65% ---------------------------------------------------------------------- Div & Growth C## 7/22/1996 16.75% 8.47% 8.88% 9.65% ---------------------------------------------------------------------- Div & Growth I# 7/22/1996 18.61% 9.21% 9.64% 10.41% ---------------------------------------------------------------------- Div & Growth Y# 7/22/1996 19.15% 9.75% 10.17% 10.95% ----------------------------------------------------------------------
# Without sales charge ## With sales charge * 10 year and inception returns are not applicable for Class B because after 8 years Class B converts to Class A. PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS. (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. Class I shares commenced operations on 8/31/06. Performance prior to 8/31/06 reflects Class A performance. (2) The initial investment in Class A shares reflects the maximum sales charge and Classes B and C reflect CDSC. (3) Growth of a $10,000 investment in Classes B, C, I and Y shares will vary from results seen above due to differences in the expenses charged to these share classes. PORTFOLIO MANAGER EDWARD P. BOUSA, CFA Vice President, Partner -------------------------------------------------------------------------------- HOW DID THE FUND PERFORM? The Class A shares of The Hartford Dividend and Growth Fund returned 18.63%, before sales charges, for the twelve-month period ended October 31, 2006, outperforming its benchmark, the S&P 500 Index, which returned 16.33% for the same period. The Fund also outperformed the 17.76% return of the average fund in the Lipper Equity Income Funds peer group, a group of funds with investment strategies similar to those of the Fund. WHY DID THE FUND PERFORM THIS WAY? Equity markets ended the twelve month period with strong returns as a result of declining energy prices and a halt in interest rate tightening by the Federal Reserve in recent months. Large cap equities (+16%) continued to lag small cap shares (+20%) and modestly outperformed mid cap names (+13%) as represented by the S&P 500, Russell 2000, and S&P 400 MidCap indices respectively. Additionally, value-oriented stocks dominated growth-oriented stocks. During the twelve month period, Telecommunication Services (+33%), Materials (+25%), and Energy (+19%) were clear leaders within the broad market, as represented by the S&P 500, and Information Technology (+10%) and Health Care (+11%) returns were modest in comparison. The Fund outperformed the S&P 500 in six of the ten broad market sectors. Favorable security selection in the Industrials and Consumer Discretionary sectors drove outperformance. An underweight allocation to Information Technology and materials also contributed to positive returns. Offsetting this somewhat was poor security selection in Materials. Among the leading contributors to benchmark-relative performance were AT&T (Telecommunication Services), CSX (Transportation), and Rio Tinto (Materials). Telecommunications company AT&T benefited from the stabilization of long distance pricing and cost cutting from the Cingular acquisition. CSX, a transportation company providing rail, intermodal and rail-to-truck transload services, reported strong earnings as a result of operational improvements. We took profits in and sold the security. Despite recent weakness in commodities, mining company Rio Tinto was a strong contributor to relative performance for the period. Exxon Mobil (Energy) and Bank of America (Diversified Financials) were among top absolute contributors to 17 -------------------------------------------------------------------------------- performance. Exxon Mobil finished strong despite falling oil prices and natural gas prices during the latter part of the period. Diversified Financials names like Bank of America profited from strong results across its set of businesses. Relative performance was held back by not owning some strong performers held in the benchmark such as Merck & Co (Pharmaceutical), Cisco (Technology Hardware), and Goldman Sachs (Diversified Financials). Sprint Nextel (Telecommunication Services), Newmont Mining (Materials), and Viacom (Media) were among the top names detracting from absolute performance. Sprint Nextel fell with lower quarterly earnings and concerns around increased expenditures related to build-out of the high speed wireless network. Gold commodity weakness impacted Newmont Mining although we view this as a normal correction in a long-term bull market and project that global industrial demand for metals is likely to continue. Shares of Viacom have been under pressure due to numerous management changes and concerns over their digital strategy. However, we are encouraged by Viacom's international growth potential, strong balance sheet and cash flow, and a continued focus on shareholder value through their aggressive share repurchase program. WHAT IS THE OUTLOOK? Our investment approach is focused on identifying industries where supply/demand remains favorable. We remain overweight Energy stocks, as global demand remains strong. The US does have an oversupply of natural gas at present, but we do not believe this will persist for the long-term. We have increased our Technology weighting as demographics around the world favor resumption in technology growth. We have been concerned about the impact a weaker housing market would have on regional banks and consumer finance companies. While we remain underweight these industries, we would be more interested in these companies at lower valuations. DIVERSIFICATION BY INDUSTRY as of October 31, 2006
PERCENTAGE OF INDUSTRY NET ASSETS ------------------------------------------------------------------- Basic Materials 7.2% ------------------------------------------------------------------- Capital Goods 5.1 ------------------------------------------------------------------- Consumer Cyclical 8.0 ------------------------------------------------------------------- Consumer Staples 5.4 ------------------------------------------------------------------- Energy 15.4 ------------------------------------------------------------------- Finance 17.8 ------------------------------------------------------------------- Health Care 9.2 ------------------------------------------------------------------- Services 7.1 ------------------------------------------------------------------- Technology 16.7 ------------------------------------------------------------------- Transportation 0.5 ------------------------------------------------------------------- Utilities 4.8 ------------------------------------------------------------------- Short-Term Investments 4.2 ------------------------------------------------------------------- Other Assets & Liabilities -1.4 ------------------------------------------------------------------- TOTAL 100.0% -------------------------------------------------------------------
18 The Hartford Equity Income Fund (subadvised by Wellington Management Company, LLP) INVESTMENT OBJECTIVE -- SEEKS A HIGH LEVEL OF CURRENT INCOME CONSISTENT WITH GROWTH OF CAPITAL. PERFORMANCE OVERVIEW(3) 8/28/03 - 10/31/06 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 9450 10063 9403 9965 10/03 9800 10575 9944 10718 10613 11379 10546 11579 10736 11827 10623 11723 10432 11437 10470 11553 10633 11826 10422 11660 10642 11826 10764 12009 10/04 10860 12209 11287 12826 11623 13255 11458 13020 11904 13452 11607 13267 11568 13029 11617 13343 11678 13489 12012 13879 11982 13819 12174 14013 10/05 11918 13657 12179 14106 12201 14190 12540 14742 12739 14832 12754 15032 13244 15414 12954 15025 13042 15121 13394 15489 13595 15748 13802 16062 10/06 14146 16588
--- EQUITY INCOME FUND --- RUSSELL 1000 VALUE INDEX $9,450 starting value $10,000 starting value $14,146 ending value $16,588 ending value
RUSSELL 1000 VALUE INDEX measures the performance of those Russell 1000 Index companies with lower price-to-book ratios and lower forecasted growth values. You cannot invest directly in an index. 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 the investment adviser, without which performance would have been lower. For information on current expense waivers/reimbursements, please see the prospectus. PORTFOLIO MANAGER JOHN R. RYAN, CFA Senior Vice President, Managing Partner AVERAGE ANNUAL TOTAL RETURNS(1,2) (as of 10/31/06)
INCEPTION SINCE DATE 1 YEAR INCEPTION ------------------------------------------------------ Equity Income A# 8/28/2003 18.70% 13.53% ------------------------------------------------------ Equity Income A## 8/28/2003 12.17% 11.53% ------------------------------------------------------ Equity Income B# 8/28/2003 17.67% 12.61% ------------------------------------------------------ Equity Income B## 8/28/2003 12.67% 11.88% ------------------------------------------------------ Equity Income C# 8/28/2003 17.88% 12.79% ------------------------------------------------------ Equity Income C## 8/28/2003 16.88% 12.79% ------------------------------------------------------ Equity Income I# 8/28/2003 18.70% 13.53% ------------------------------------------------------ Equity Income Y# 8/28/2003 19.18% 14.13% ------------------------------------------------------
# Without sales charge ## With sales charge PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS. (1) Class I shares commenced operations on 8/31/06. Performance prior to 8/31/06 reflects Class A performance. (2) The initial investment in Class A shares reflects the maximum sales charge and Classes B and C reflect CDSC. (3) Growth of a $10,000 investment in Classes B, C, I and Y shares will vary from results seen above due to differences in the expenses charged to these share classes. -------------------------------------------------------------------------------- HOW DID THE FUND PERFORM? The Class A shares of The Hartford Equity Income Fund returned 18.70%, before sales charges, for the twelve-month period ended October 31, 2006, underperforming its benchmark, the Russell 1000 Value Index, which returned 21.46% for the same period. The Fund outperformed the 17.37% return of the average fund in the Lipper Equity Income Fund peer group, a group of funds with investment strategies similar to those of the Fund. WHY DID THE FUND PERFORM THIS WAY? Improved investor sentiment regarding the likelihood of a global economic slowdown and moderating inflation concerns helped global equity returns during the period. Value outperformed Growth and the broader market, as the Russell 1000 Value index return of 21.46% beat the Russell 1000 Growth return of 10.84% and the S&P 500 index return of 16.33%. All ten sectors of the Russell 1000 Value Index posted strong double digit returns. Telecommunication Services and Materials were the top performers while Utilities and Information Technology were relative laggards in the benchmark. Unfavorable stock selection within Materials, Energy, and Health Care led to some disappointments during the period. At the margin, the Fund's overweight positions in Utilities and Consumer Staples also detracted from relative performance. The three largest benchmark relative detractors owned in the portfolio were Dow Chemical (Materials), ConocoPhillips (Energy) and Dominion Resources (Utilities). Additionally, not owning Merck (Health Care) within the portfolio also significantly detracted from performance. Dow Chemical posted good profit results during the period; however, they were unable to offset the headwinds of high energy and raw materials costs. ConocoPhillips shares struggled due to the recent decline in North American natural gas prices and lower refining margins. Merck's shares benefited from higher than expected sales of Singulair, its treatment for asthma and seasonal allergies, and FDA product approvals for several drugs within its pipeline. We owned Dow Chemical, ConocoPhillips, and Dominion Resources at the end of the period. Partially offsetting these disappointments, the Fund benefited from a combination of strong stock selection and sector allocation within Industrials, Telecommunications Services and Financials. The top three benchmark relative contributors were Caterpillar (Industrials), AT&T (Telecommunication Services) and BellSouth (Telecommunication Services). Caterpillar's shares benefited from growth in their underlying businesses. The stock pulled back sharply in mid-October due to the market's expectation for stronger than delivered earnings results. AT&T and BellSouth benefited from the much anticipated merger. We took profits in Caterpillar and eliminated the position but held AT&T and BellSouth at the end of the period. 19 -------------------------------------------------------------------------------- WHAT IS THE OUTLOOK? Global economic growth appears to have rolled past its peak, although it is still running at a solid clip. While other investors are expressing skepticism about the sustainability of the economic expansion, we expect global growth to remain above 3%, with the US slowing to the 2-3% range. We have no expectation for a recession, and are impressed so far by the consumer's ability to absorb the twin hits of higher short-term interest rates and energy costs. In anticipation of a slowing, yet healthy global economy, we have reduced further the cyclicality of our portfolios, which has been ongoing for several consecutive quarters. We methodically decreased our exposure to the consumer, energy, and mortgage-related financial institutions and increased our exposure to less cyclical areas, including telecommunications, consumer non-durables, and non-credit sensitive financial institutions. At the end of the period, relative to the Russell 1000 Value Index, the Fund was overweight Materials, Consumer Staples, Utilities, Industrials, Telecommunications Services, and Health Care and underweight Consumer Discretionary, Financials, Information Technology and Energy. DIVERSIFICATION BY INDUSTRY as of October 31, 2006
PERCENTAGE OF INDUSTRY NET ASSETS ------------------------------------------------------------------- Basic Materials 8.8% ------------------------------------------------------------------- Capital Goods 5.6 ------------------------------------------------------------------- Consumer Cyclical 3.2 ------------------------------------------------------------------- Consumer Staples 7.2 ------------------------------------------------------------------- Energy 9.3 ------------------------------------------------------------------- Finance 29.5 ------------------------------------------------------------------- Health Care 8.5 ------------------------------------------------------------------- Services 2.2 ------------------------------------------------------------------- Technology 13.6 ------------------------------------------------------------------- Utilities 10.6 ------------------------------------------------------------------- Short-Term Investments 1.8 ------------------------------------------------------------------- Other Assets & Liabilities -0.3 ------------------------------------------------------------------- TOTAL 100.0% -------------------------------------------------------------------
20 The Hartford Floating Rate Fund (subadvised by Hartford Investment Management Company) INVESTMENT OBJECTIVE -- SEEKS A HIGH LEVEL OF CURRENT INCOME. PERFORMANCE OVERVIEW(3) 4/29/05 - 10/31/06 Growth of a $10,000 investment in Class A which includes Sales Charge (LINE GRAPH)
FLOATING RATE FUND CSFB LEVERAGED LOAN INDEX ------------------ ------------------------- 4/29/05 9700 10000 9700 10000 9681 10008 6/05 9799 10075 9869 10154 9960 10225 9984 10273 10/05 9997 10306 10042 10340 10100 10391 10159 10460 2/06 10230 10533 10292 10611 10354 10662 10377 10703 6/06 10402 10747 10457 10803 10536 10877 10583 10936 10/06 10654 11010
--- FLOATING RATE FUND --- CSFB LEVERAGED LOAN INDEX $9,700 starting value $10,000 starting value $10,654 ending value $11,010 ending value
CSFB LEVERAGED LOAN INDEX is designed to mirror the investable universe of the $U.S.-denominated leveraged loan market. You cannot invest directly in an index. 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 the investment adviser, without which performance would have been lower. For information on current expense waivers/reimbursements, please see the prospectus. AVERAGE ANNUAL TOTAL RETURNS(1,2) (as of 10/31/06)
INCEPTION SINCE DATE 1 YEAR INCEPTION ------------------------------------------------------ Floating Rate A# 4/29/2005 6.56% 6.42% ------------------------------------------------------ Floating Rate A## 4/29/2005 3.36% 4.29% ------------------------------------------------------ Floating Rate B# 4/29/2005 5.79% 5.63% ------------------------------------------------------ Floating Rate B## 4/29/2005 0.79% 3.04% ------------------------------------------------------ Floating Rate C# 4/29/2005 5.86% 5.68% ------------------------------------------------------ Floating Rate C## 4/29/2005 4.86% 5.68% ------------------------------------------------------ Floating Rate I# 4/29/2005 6.66% 6.49% ------------------------------------------------------ Floating Rate Y# 4/29/2005 7.00% 6.73% ------------------------------------------------------
# Without sales charge ## With sales charge PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS. (1) Class I shares commenced operations on 8/31/06. Performance prior to 8/31/06 reflects Class A performance. (2) The initial investment in Class A shares reflects the maximum sales charge and Classes B and C reflect CDSC. (3) Growth of a $10,000 investment in Classes B, C, I and Y shares will vary from results seen above due to differences in the expenses charged to these share classes. PORTFOLIO MANAGERS MICHAEL BACEVICH Managing Director JOHN CONNOR Vice President, Credit Research Analyst -------------------------------------------------------------------------------- HOW DID THE FUND PERFORM? The Hartford Floating Rate Fund (Class A) gained 6.56%, before sales charges, for the 12 month period ended October 31, 2006, trailing its benchmark, the CSFB Leveraged Loan Index, which returned 6.83%. Further, the Fund outperformed the 5.80% return of the Lipper Loan Participation Funds peer group, a group of funds with investment strategies similar to those of the Fund. WHY DID THE FUND PERFORM THIS WAY? For most of the Fund's fiscal year, which ended October 31, 2006, US interest rates rose steadily. Historically high energy and commodity prices, strong demand for housing, and a strengthening economy sustained investor concerns about rising inflation throughout the period. To keep inflation in check, the Federal Reserve (the Fed) continued its cycle of monetary tightening that began in the summer of 2004. By June of 2006, the Fed had raised its Federal Funds Target Rate (Fed Funds Rate) 17 consecutive times, bringing the Fed Funds rate to 5.25%. During this period, 3-month LIBOR (London Inter-Bank Offer Rate), generally considered the benchmark rate for the domestic floating rate debt market, also rose consistently, peaking around 5.52%. This dynamic has proven to be very beneficial to the floating rate asset class, including the bank loans and floating rate notes that constitute the Fund's core portfolio. Over the past few months of the year, the Fed faced the increasingly difficult choice of whether to i.) continue raising rates to restrain inflation, or ii.) ease monetary policy in order to forestall a potential recession tied to higher housing costs and lower consumer demand. Balancing several factors in its analysis, the Fed decided to pause its long-term strategy of rate increases. Consequently, both the Fed Funds and LIBOR benchmarks have held at flat levels since this time. Despite some concern about the potential for economic weakness toward the end of the year, the credit markets actually rallied during this period. While the investment grade corporate and high yield bond sectors led the way with very strong returns, the floating rate asset class also posted solid results. Overall, the fiscal year just completed proved to be a very good one for our asset classes with market liquidity is at an all-time high, and the incidence of loan/bond defaults and distressed credits has been very low. Although floating rate asset valuations fluctuated throughout the year, as is typical, price volatility has been within normal expectations. As a result, the NAV for the Fund remained within a relatively narrow band throughout the period. 21 -------------------------------------------------------------------------------- Over the 12 month period ended October 31, 2006, the performance of the Floating Rate Fund benefited from several positive dynamics: i. Rising short-term interest rates throughout most of the year, as evidenced by a total increase in the LIBOR benchmark by over 1%; ii. Attractive average spread over LIBOR for the floating rate assets in the Fund. Spread is the premium that issuers pay to lenders to compensate for credit risk assumed; iii. A modest amount of realized trading gains, which boosted returns; iv. Minimal losses from loan defaults and sales of financially distressed holdings; v. The consistently high percentage of loan/bond fundings in the Fund, even considering the strong growth of assets in the Fund during the year. The Fund seeks to remain fully invested in order to generate income vi. Very tight supply/demand balance for US leveraged loan assets, which supported relatively high valuations for new and existing holdings of the Fund. With more than 300 holdings (no individual issuers larger than 1.3% of the portfolio) and exposure to more than 30 industries, the Fund continues to be very well diversified -- a key aspect of our strategy. WHAT IS THE OUTLOOK? The new fiscal year has thus far witnessed ongoing strength and liquidity of the loan and bond markets, with valuations up even more from recent levels. We expect new bank loan issue volume to remain very high for the near term and to include some of the largest new issue transactions ever sold into our market. Given the Fed's neutral approach toward future rate increases and the relatively benign nature of most recent economic indicators, we anticipate that the overall tone for the bank loan and floating rate bond markets should remain positive well into 2007. As always, we remain very focused on generating attractive returns for the Fund while ensuring relative NAV price stability for shareholders. We expect to add credits selectively to the Fund via reasonably priced new loans and purchases in the secondary markets, while also protecting overall portfolio value through i.) "defensive" sales of loans and securities with weakening credit profiles, and ii.) proactive reduction of exposure to industries with deteriorating prospects. DIVERSIFICATION BY INDUSTRY as of October 31, 2006
PERCENTAGE OF INDUSTRY NET ASSETS ------------------------------------------------------------------- Basic Materials 14.5% ------------------------------------------------------------------- Capital Goods 2.5 ------------------------------------------------------------------- Consumer Cyclical 12.5 ------------------------------------------------------------------- Consumer Staples 4.6 ------------------------------------------------------------------- Energy 1.7 ------------------------------------------------------------------- Finance 7.9 ------------------------------------------------------------------- Health Care 9.7 ------------------------------------------------------------------- Services 25.0 ------------------------------------------------------------------- Technology 15.2 ------------------------------------------------------------------- Transportation 2.3 ------------------------------------------------------------------- Utilities 4.0 ------------------------------------------------------------------- Short-Term Investments 3.4 ------------------------------------------------------------------- Other Assets & Liabilities -3.3 ------------------------------------------------------------------- TOTAL 100.0% -------------------------------------------------------------------
22 The Hartford Focus Fund (subadvised by Wellington Management Company, LLP) INVESTMENT OBJECTIVE -- SEEKS LONG-TERM CAPITAL APPRECIATION. PERFORMANCE OVERVIEW(2) 5/24/01 - 10/31/06 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 9185 9479 8996 9386 8770 8799 8014 8088 10/01 8335 8243 9129 8875 9526 8953 9176 8823 9072 8652 9299 8978 8439 8434 8222 8372 7513 7776 7125 7170 7088 7217 6275 6433 10/02 6917 6998 7626 7410 7106 6975 6927 6793 6719 6691 6738 6756 7229 7312 7664 7697 7721 7795 8042 7933 8108 8087 7919 8002 10/03 8448 8454 8514 8528 9034 8975 9091 9140 9110 9267 8892 9127 8703 8984 8807 9107 9063 9284 8855 8977 8826 9013 8789 9110 10/04 8637 9249 8996 9624 9246 9951 9029 9708 9218 9913 8887 9737 8849 9553 9209 9856 9190 9870 9662 10237 9643 10144 9785 10226 10/05 9700 10056 10069 10435 10121 10439 10312 10716 10207 10745 10283 10878 10417 11024 10122 10707 9846 10722 9684 10788 9998 11044 10217 11328 10/06 10484 11697
--- FOCUS FUND --- S&P 500 INDEX $9,450 starting value $10,000 starting value $10,484 ending value $11,697 ending value
S&P 500 INDEX is a market capitalization weighted price index composed of 500 widely held common stocks. You cannot invest directly in an index. 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 the investment adviser, without which performance would have been lower. For information on current expense waivers/reimbursements, please see the prospectus. AVERAGE ANNUAL TOTAL RETURNS(1) (as of 10/31/06)
INCEPTION SINCE DATE 1 YEAR 5 YEAR INCEPTION ------------------------------------------------------- Focus A# 5/24/2001 8.07% 4.69% 1.92% ------------------------------------------------------- Focus A## 5/24/2001 2.13% 3.51% 0.87% ------------------------------------------------------- Focus B# 5/24/2001 7.24% 3.93% 1.18% ------------------------------------------------------- Focus B## 5/24/2001 2.24% 3.59% 1.01% ------------------------------------------------------- Focus C# 5/24/2001 7.34% 3.95% 1.20% ------------------------------------------------------- Focus C## 5/24/2001 6.34% 3.95% 1.20% ------------------------------------------------------- Focus Y# 5/24/2001 8.57% 5.19% 2.39% -------------------------------------------------------
# Without sales charge ## With sales charge PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS. (1) The initial investment in Class A shares reflects the maximum sales charge and Classes B and C reflect CDSC. (2) Growth of a $10,000 investment in Classes B, C and Y shares will vary from results seen above due to differences in the expenses charged to these share classes. PORTFOLIO MANAGER STEVEN T. IRONS, CFA Senior Vice President, Partner PETER I. HIGGINS, CFA Vice President -------------------------------------------------------------------------------- HOW DID THE FUND PERFORM? The Class A shares of The Hartford Focus Fund returned 8.07%, before sales charges, for the twelve-month period ended October 31, 2006, underperforming its benchmark, the S&P 500 Index which returned 16.33% for the same period. The Fund also underperformed the 14.23% return of the average fund in the Lipper Large Cap Core Funds peer group, a group of funds with investment strategies similar to those of the Fund. WHY DID THE FUND PERFORM THIS WAY? Despite weakening housing prices, concerns regarding the consumer and the Federal Reserve's monetary tightening, equity markets continue to show strength. The S&P 500 was up 16.33% for the reporting period and showed broad based strength posting positive results in all ten sectors. Sector results were led by Telecommunication Services, Materials, and Energy. Information Technology, Health Care, and Consumer Staples all posted robust returns but lagged the general market. The Fund underperformed during the period due to poor stock selection across several sectors including Consumer Discretionary and Health Care. Sector allocation did not play a major role in performance. XM Satellite, Boston Scientific, Dollar General and Medtronic detracted from benchmark relative returns during the period. Media company XM Satellite continues to come under pressure. Decelerating customer addition trends and regulatory review of product compliance have caused investors to question the market opportunity. The portfolio continues to hold the stock based on positive long-term trends in satellite radio due to original equipment manufacturer (OEM) adoption. Boston Scientific has had a tough year suffering from erosion of its Implantable Cardioverter Defibrillator (ICD) market share, concerns surrounding its drug eluting stent business, and continued issues with cardiac product recalls after its recently acquired Guidant business. We retain our position as the fundamentals of the company remain sound and the stock is attractively priced. Discount retailer Dollar General disappointed due to high gasoline prices hitting Dollar General customers and thus impacting the company's top line. Additionally, Dollar General has been selling more lower-margin "highly consumables" than anticipated. These are products like perishable foods and cleaning supplies are used up quickly by consumers and need to be replaced frequently, but carry thin margins. Medtronic also suffered due to concerns about its ICD business. We believe the company will benefit from improvements in its ICD business as well as from its strong product pipeline. 23 -------------------------------------------------------------------------------- Consistent with the Fund's approach of searching for stocks across the full spectrum of opportunities, the Fund had strong performance from stocks in a variety of sectors including Information Technology and Financials. Stocks that contributed the most to the Fund's relative returns (i.e. returns of the Fund as measured against the benchmark) included Munich Re, UBS, Cisco and Accenture. UBS, the Swiss-based financial institution, posted outstanding results due primarily to its succeeding wealth management business. The firm has a superior business mix that leads to less volatility and should continue to be rewarded with higher multiples than the average broker. Manufacturer of networking systems Cisco has been reporting better than expected earnings as enterprise and service provider revenues improve. Additionally, sales to emerging markets are providing added growth. We have been taking profits and trimming our position in Cisco. German reinsurance company Munich Re reported better-than-expected results due to higher profits from investments and fewer claims due to low levels of natural catastrophes. The company continues to generate good return on capital and improving capital management. Accenture, a global management consulting company, has seen solid results due to strong demand for its consulting and outsourcing services. Additionally, the company has a solid pipeline of new bookings, is well run, and is aggressively returning cash to shareholders. WHAT IS THE OUTLOOK? The Fund is managed in a concentrated, large cap core investment approach. The fund is constructed by selecting roughly 20-40 stocks from the universe of the 80 to 120 stocks in The Hartford Stock Fund. We look for stocks that exhibit some or all of the following characteristics: leadership within an industry, a strong balance sheet, solid management teams, high return on equity, accelerating earnings, and/or attractive valuation with a catalyst. At end of the period, the Fund's bottom-up investment approach resulted in overweights in Health Care, Information Technology and Industrials and underweights in Energy, Financials and Utilities. DIVERSIFICATION BY INDUSTRY as of October 31, 2006
PERCENTAGE OF INDUSTRY NET ASSETS ------------------------------------------------------------------- Basic Materials 4.6% ------------------------------------------------------------------- Capital Goods 4.1 ------------------------------------------------------------------- Consumer Cyclical 4.9 ------------------------------------------------------------------- Consumer Staples 4.2 ------------------------------------------------------------------- Energy 4.3 ------------------------------------------------------------------- Finance 20.2 ------------------------------------------------------------------- Health Care 14.5 ------------------------------------------------------------------- Services 9.5 ------------------------------------------------------------------- Technology 33.4 ------------------------------------------------------------------- Short-Term Investments 0.7 ------------------------------------------------------------------- Other Assets & Liabilities -0.4 ------------------------------------------------------------------- TOTAL 100.0% -------------------------------------------------------------------
24 The Hartford Global Communications Fund (subadvised by Wellington Management Company, LLP) INVESTMENT OBJECTIVE -- SEEKS LONG-TERM CAPITAL APPRECIATION. PERFORMANCE OVERVIEW(2) 10/31/00 - 10/31/06 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 9230 9586 7069 7800 8712 5982 7361 8161 6492 7922 8794 5963 7312 8853 5689 6831 8638 5585 6911 8553 4791 6173 8018 4564 6248 7370 10/01 4319 6020 7511 4564 6306 8087 4697 6343 8158 4101 5775 8039 3600 5513 7884 3733 5585 8181 3317 4976 7685 3326 5009 7628 2882 4489 7085 2731 4254 6533 2882 4250 6576 2504 3594 5862 10/02 3062 4411 6377 3393 4883 6752 3241 4594 6356 3156 4493 6190 3137 4261 6097 3081 4208 6156 3383 4713 6662 3667 5055 7013 3865 5098 7103 3875 4978 7228 3988 4964 7369 4064 4994 7291 10/03 4413 5234 7703 4564 5413 7770 5018 5855 8178 5160 6052 8328 5160 6096 8444 5160 5968 8316 4961 5868 8186 4905 5717 8298 5084 5824 8459 4923 5792 8179 4668 5848 8212 4791 6000 8301 10/04 5179 6285 8428 5963 6751 8769 6194 7014 9067 5956 6718 8846 6184 6828 9032 5794 6656 8872 5613 6537 8704 5784 6520 8981 6203 6585 8994 6775 6882 9328 6746 6871 9243 7004 6917 9318 10/05 6785 6733 9162 7004 6665 9508 7090 6669 9512 7273 6799 9764 7399 6831 9790 7534 7058 9912 7727 7319 10045 7012 7118 9756 6800 7147 9769 6761 7339 9829 6915 7501 10063 7157 7823 10322 10/06 7775 8348 10658
--- GLOBAL COMMUNICATIONS FUND --- MSCI AC WORLD TELECOMMUNICATIONS $9,450 starting value SERVICES INDEX $7,775 ending value $10,000 starting value $8,348 ending value -- S&P 500 INDEX $10,000 starting value $10,658 ending value
S&P 500 INDEX is a market capitalization weighted price index composed of 500 widely held common stocks. MSCI AC (ALL COUNTRY) WORLD TELECOMMUNICATIONS SERVICES INDEX is a free float-adjusted market capitalization index which measures the performance of companies within the telecommunications sector across both developed and emerging market countries. The index is calculated to exclude companies and share classes which cannot be freely purchased by foreigners. You cannot invest directly in an index. 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 the investment adviser, without which performance would have been lower. For information on current expense waivers/reimbursements, please see the prospectus. AVERAGE ANNUAL TOTAL RETURNS(1) (as of 10/31/06)
INCEPTION SINCE DATE 1 YEAR 5 YEAR INCEPTION -------------------------------------------------------------- Global Comm A# 10/31/2000 14.60% 12.47% -3.20% -------------------------------------------------------------- Global Comm A## 10/31/2000 8.30% 11.21% -4.11% -------------------------------------------------------------- Global Comm B# 10/31/2000 13.93% 11.72% -3.84% -------------------------------------------------------------- Global Comm B## 10/31/2000 8.93% 11.46% -4.00% -------------------------------------------------------------- Global Comm C# 10/31/2000 13.74% 11.65% -3.89% -------------------------------------------------------------- Global Comm C## 10/31/2000 12.74% 11.65% -3.89% -------------------------------------------------------------- Global Comm Y# 10/31/2000 15.14% 12.98% -2.73% --------------------------------------------------------------
# Without sales charge ## With sales charge PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS. (1) The initial investment in Class A shares reflects the maximum sales charge and Classes B and C reflect CDSC. (2) Growth of a $10,000 investment in Classes B, C and Y shares will vary from results seen above due to differences in the expenses charged to these share classes. PORTFOLIO MANAGEMENT TEAM ARCHANA BASI, CFA Vice President, Global Industry Analyst DAVID NINCIC, CFA Vice President, Global Industry Analyst -------------------------------------------------------------------------------- HOW DID THE FUND PERFORM? The Class A shares of The Hartford Global Communications Fund returned 14.60%, before sales charges, for the twelve-month period ended October 31, 2006, underperforming its benchmark, the MSCI All Country World Telecommunication Services Index, which returned 24.12% for the same period. The Fund lagged the 19.81% return of the average fund in the Lipper Telecommunications Funds peer group, a group of funds with investment strategies similar to those of the Fund. WHY DID THE FUND PERFORM THIS WAY? Telecommunication Services stocks performed well during the period, outpacing the broader market as represented by the S&P 500 Index and the MSCI World Index. The Fund's strong absolute performance was primarily due to holdings within Wireless Telecommunications Services. However, security selection within the Integrated Telecommunications Services sub-industry detracted from benchmark relative returns. Overall allocation decisions across the sub-industries also hurt relative performance. Top contributors to relative and absolute performance during the period included Phillipines Long Distance, Turkcell, Vimpel Communications and Mobile Telesystems. Phillipines Long Distance Telephone benefited from better-than-expected wireless growth and improved cost efficiencies, which resulted in increased margins. Turkcell, a mobile communication services provider, performed well despite a challenging macro backdrop in Turkey. In Russia, both Vimpel Communications and Mobile Telesystems reported strong results and stable average revenues per user (ARPU), suggesting that price competition was easing. We held all four stocks at the end of the period. Stocks that detracted from relative and absolute performance included KongZhong, NeuStar and Westell Technologies. KongZhong, a provider of interactive entertainment services for wireless devices in China, shares suffered because of announced 25 -------------------------------------------------------------------------------- regulatory changes that will hurt its revenues. NeuStar, a telephone number database company, fell due to investor concerns about a contract renegotiation that resulted in lower rates. Westell, a telecommunications equipment company, fell after the company lowered third quarter guidance because of anticipated changes in customer promotional activity and pricing reductions amidst seasonal softness in several businesses. We sold Westell during the period and held KongZhong and NeuStar at the end of the period. WHAT IS THE OUTLOOK? For the remainder of 2006, we remain optimistic on the performance of telecom stocks. Within the wireline sector, we prefer stocks outside of North America. While many international wireline carriers face access line declines and voice substitution to wireless, these same carriers often have wireless operations that are performing well, resulting in solid revenue growth. For the wireless sector, we remain bullish on US stocks. The US wireless industry is a telecom rarity because the sector is experiencing capacity constraints, whereas the telecom norm is one of excess supply. We believe these capacity constraints should result in pricing power and, ultimately, strong financial results for the US wireless carriers. While the telecom industry is highly competitive, we believe that there are many attractive opportunities and that the Fund can continue to find underpriced stocks of companies with improving business fundamentals. Often, these companies are not well known among global investors, but we frequently find the best opportunities in stocks unfamiliar to the investment community. At the end of the period the Fund was positioned based on our beliefs that wireless stocks are likely to outperform wireline stocks; North American and Asian wireless are likely to outperform European wireless; and Emerging Market wireline stocks are likely to outperform developed market wireline stocks. DIVERSIFICATION BY INDUSTRY as of October 31, 2006
PERCENTAGE OF INDUSTRY NET ASSETS ------------------------------------------------------------------- Communications Equipment Manufacturing 3.9% ------------------------------------------------------------------- Other Telecommunications 27.7 ------------------------------------------------------------------- Semiconductor, Electronic Component Manufacturing 0.5 ------------------------------------------------------------------- Software Publishers 3.9 ------------------------------------------------------------------- Wired Telecommunications Carriers 23.2 ------------------------------------------------------------------- Wireless Communications Services 5.1 ------------------------------------------------------------------- Wireless Telecommunications Carriers 32.6 ------------------------------------------------------------------- Short-Term Investments 12.0 ------------------------------------------------------------------- Other Assets & Liabilities -8.9 ------------------------------------------------------------------- TOTAL 100.0% -------------------------------------------------------------------
DIVERSIFICATION BY COUNTRY as of October 31, 2006
PERCENTAGE OF DIVERSIFICATION BY COUNTRY NET ASSETS ------------------------------------------------------------------- Brazil 8.6% ------------------------------------------------------------------- China 1.8 ------------------------------------------------------------------- Egypt 1.0 ------------------------------------------------------------------- France 6.1 ------------------------------------------------------------------- Germany 1.7 ------------------------------------------------------------------- Italy 0.3 ------------------------------------------------------------------- Luxembourg 3.5 ------------------------------------------------------------------- Morocco 0.1 ------------------------------------------------------------------- Norway 4.1 ------------------------------------------------------------------- Philippines 5.9 ------------------------------------------------------------------- Russia 15.6 ------------------------------------------------------------------- South Africa 6.9 ------------------------------------------------------------------- South Korea 0.5 ------------------------------------------------------------------- Spain 4.0 ------------------------------------------------------------------- Turkey 6.0 ------------------------------------------------------------------- United States 30.8 ------------------------------------------------------------------- Short-Term Investments 12.0 ------------------------------------------------------------------- Other Assets & Liabilities -8.9 ------------------------------------------------------------------- TOTAL 100.0% -------------------------------------------------------------------
26 The Hartford Global Financial Services Fund (subadvised by Wellington Management Company, LLP) INVESTMENT OBJECTIVE -- SEEKS LONG-TERM CAPITAL APPRECIATION. PERFORMANCE OVERVIEW(2) 10/31/00 - 10/31/06 Growth of a $10,000 investment in Class A which includes Sales Charge (LINE GRAPH)
GLOBAL FINANCIAL SERVICES MSCI FINANCE EX REAL ESTATE FUND INDEX S&P 500 INDEX ------------------------- --------------------------- ------------- 10/31/00 9450 10000 10000 9091 9618 9212 10036 10358 9257 9856 10361 9586 9630 9685 8712 9289 9114 8161 9715 9501 8794 9941 9447 8853 9989 9364 8638 9885 9166 8553 9715 9066 8018 8836 8104 7370 10/01 8855 8117 7511 9100 8533 8087 9384 8630 8158 8949 8330 8039 8921 8183 7884 9403 8772 8181 9431 8799 7685 9299 8911 7628 8987 8423 7085 8080 7630 6533 8070 7728 6576 7135 6668 5862 10/02 7588 7314 6377 8004 7672 6752 7566 7225 6356 7206 6988 6190 7025 6841 6097 6987 6711 6156 7718 7651 6662 8098 8072 7013 8184 8233 7103 8459 8609 7228 8430 8518 7369 8582 8730 7291 10/03 9218 9425 7703 9256 9508 7770 9831 10097 8178 10023 10330 8328 10281 10564 8444 10243 10532 8316 9803 10162 8186 9831 10238 8298 9927 10348 8459 9477 10035 8179 9717 10293 8212 9784 10403 8301 10/04 9994 10686 8428 10434 11230 8769 10951 11808 9067 10680 11530 8846 10768 11742 9032 10477 11409 8872 10400 11218 8704 10525 11348 8981 10738 11519 8994 10961 11790 9328 10884 11822 9243 11194 12227 9318 10/05 11232 12296 9162 11794 12859 9508 11998 13204 9512 12496 13694 9764 12633 14035 9790 12760 14201 9912 13337 14808 10045 12819 14197 9756 12702 14154 9769 12731 14352 9829 13181 14783 10063 13356 15093 10322 10/06 13689 15531 10658
--- GLOBAL FINANCIAL SERVICES FUND --- MSCI FINANCE EX REAL ESTATE INDEX $9,450 starting value $10,000 starting value $13,689 ending value $15,531 ending value -- S&P 500 INDEX $10,000 starting value $10,658 ending value
S&P 500 INDEX is a market capitalization weighted price index composed of 500 widely held common stocks. 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. You cannot invest directly in an index. 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 the investment adviser, without which performance would have been lower. For information on current expense waivers/reimbursements, please see the prospectus. AVERAGE ANNUAL TOTAL RETURNS(1) (as of 10/31/06)
INCEPTION 1 5 SINCE DATE YEAR YEAR INCEPTION ---------------------------------------------------------------- Global Fin Ser A# 10/31/2000 21.87% 9.10% 6.37% ---------------------------------------------------------------- Global Fin Ser A## 10/31/2000 15.16% 7.87% 5.37% ---------------------------------------------------------------- Global Fin Ser B# 10/31/2000 21.06% 8.36% 5.63% ---------------------------------------------------------------- Global Fin Ser B## 10/31/2000 16.06% 8.06% 5.50% ---------------------------------------------------------------- Global Fin Ser C# 10/31/2000 20.88% 8.32% 5.61% ---------------------------------------------------------------- Global Fin Ser C## 10/31/2000 19.88% 8.32% 5.61% ---------------------------------------------------------------- Global Fin Ser Y# 10/31/2000 22.24% 9.59% 6.84% ----------------------------------------------------------------
# Without sales charge ## With sales charge PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS. (1) The initial investment in Class A shares reflects the maximum sales charge and Classes B and C reflect CDSC. (2) Growth of a $10,000 investment in Classes B, C and Y shares will vary from results seen above due to differences in the expenses charged to these share classes. PORTFOLIO MANAGEMENT TEAM MARK T. LYNCH, CFA Senior Vice President, Partner, Global Industry Analyst THEODORE SHASTA, CFA Senior Vice President, Partner, Global Industry Analyst JENNIFER L. NETTESHEIM, CFA Vice President, Global Industry Analyst R. ANDREW HEISKELL Vice President, Global Industry Analyst -------------------------------------------------------------------------------- HOW DID THE FUND PERFORM? The Class A shares of The Hartford Global Financial Services Fund returned 21.87%, before sales charges, for the twelve-month period ended October 31, 2006, underperforming its benchmark, the MSCI Finance ex-Real Estate Index, which returned 26.30% for the same period. The Fund outperformed the 18.58% return of the average fund in the Lipper Financial Services Funds peer group, a group of funds with investment strategies similar to those of the Fund. WHY DID THE FUND PERFORM THIS WAY? Financial stocks have performed well over the last twelve months despite interest rate uncertainty and inflation concerns. The Finance sector outperformed both the S&P 500 and MSCI World Index during the twelve-month period. Almost all industries within the Finance sector posted positive returns, led by Capital Markets and Diversified Financial Services, while Real Estate Management & Development and Consumer Finance companies trailed by the widest margin. Commercial Banks and Capital Markets contributed most to the Fund's strong absolute performance during the period. Industry allocation, including the Fund's slight overweights in Consumer Finance and Thrifts and Mortgage Finance, detracted from benchmark relative performance. Weaker security selection within Insurance also hurt relative returns as St Paul Travelers, ACE and American International Group were among relative detractors during the period. We sold our positions in St Paul Travelers and American International Group and continued to hold ACE at the end of the period. Top contributors to relative performance included Euronext and Capitalia, while Banco Bilbao Vizcaya contributed most on an absolute basis. The prospect of industry consolidation played a part in driving up shares of stock market companies such as 27 -------------------------------------------------------------------------------- Euronext during the period. Capitalia shares surged on speculation that further consolidation in the Italian banking market would see it become a likely takeover target. Banco Bilbao Vizcaya benefited from strong growth in emerging markets. We eliminated the Euronext and Capitalia and continued to hold Banco Bilbao Vizcaya at the end of the period. WHAT IS THE OUTLOOK? We remain bearish on US banking since recent earnings-per-share growth has come from unsustainable areas such as venture capital, mortgage banking and credit quality while the less volatile areas, particularly spread income, are under severe competitive pressure. In addition, loan quality statistics are beginning to deteriorate from pristine levels and the hard landing for the homebuilders will likely challenge the more aggressive banks. Within the US we favor the cheaper, less risky large banks as value is difficult to find in the small caps. We continue to expect stronger growth opportunities outside the US, particularly in diversified financial services and banking. Within Capital Markets, the merger and acquisition cycle remains robust. We have maintained a cautious stance within Investment Banks; however, we believe there is longer-term potential due to the depth and breadth of product, geographies and liquidity in the market place. In addition, the fourth and first quarters are seasonally stronger periods for these business models. We are also focusing on Asset Managers that concentrate on organic growth with excess cash deployment. We are likely nearing the end of the bull market in life insurance stocks. We expect that year-over-year comparisons will become increasingly difficult as growth slows. The US market remains highly competitive with modest margins and limited growth potential. The large, globally diversified life companies continue to have an advantage in terms of scale, distribution and product development. At the end of the period we were most overweight the Insurance, Diversified Financial Services and Consumer Finance industries and underweight Commercial Banks and Capital Markets. DIVERSIFICATION BY COUNTRY as of October 31, 2006
PERCENTAGE OF COUNTRY NET ASSETS ------------------------------------------------------------------- Australia 4.6% ------------------------------------------------------------------- Canada 2.8 ------------------------------------------------------------------- Germany 7.6 ------------------------------------------------------------------- Hong Kong 2.1 ------------------------------------------------------------------- Italy 5.9 ------------------------------------------------------------------- Japan 4.6 ------------------------------------------------------------------- Netherlands 2.7 ------------------------------------------------------------------- Spain 3.8 ------------------------------------------------------------------- Switzerland 8.3 ------------------------------------------------------------------- United Kingdom 7.5 ------------------------------------------------------------------- United States 48.1 ------------------------------------------------------------------- Short-Term Investments 11.0 ------------------------------------------------------------------- Other Assets & Liabilities -9.0 ------------------------------------------------------------------- TOTAL 100.0% -------------------------------------------------------------------
DIVERSIFICATION BY INDUSTRY as of October 31, 2006
PERCENTAGE OF INDUSTRY NET ASSETS ------------------------------------------------------------------- Commercial Banking 4.5% ------------------------------------------------------------------- Depository Credit Banking 22.3 ------------------------------------------------------------------- Insurance Carriers 22.8 ------------------------------------------------------------------- International Trade Financing (Foreign Banks) 24.1 ------------------------------------------------------------------- Monetary Authorities -- Central Bank 4.1 ------------------------------------------------------------------- Nondepository Credit Banking 3.6 ------------------------------------------------------------------- Other Financial Investment Activities 4.5 ------------------------------------------------------------------- Real Estate Credit (Mortgage Banking) 3.3 ------------------------------------------------------------------- Securities and Commodity Exchanges 2.1 ------------------------------------------------------------------- Securities, Commodities and Brokerage 6.7 ------------------------------------------------------------------- Short-Term Investments 11.0 ------------------------------------------------------------------- Other Assets & Liabilities -9.0 ------------------------------------------------------------------- TOTAL 100.0% -------------------------------------------------------------------
28 The Hartford Global Health Fund (subadvised by Wellington Management Company, LLP) INVESTMENT OBJECTIVE -- SEEKS LONG-TERM CAPITAL APPRECIATION. PERFORMANCE OVERVIEW(3) 5/1/00 - 10/31/06 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 ------------------ ------------- ------------------------- 5/1/00 9450 10000 10000 9620 9795 10391 11323 10036 11522 11503 9879 11132 12118 10493 11534 12922 9939 12043 10/00 13111 9897 12333 13463 9117 12507 13965 9162 12959 13168 9487 11763 13128 8622 11708 12321 8076 10664 12981 8703 11130 13591 8762 11375 13679 8549 11088 13601 8464 11392 13394 7935 11100 12961 7294 11014 10/01 13266 7434 11029 13989 8004 11619 14170 8074 11399 13768 7956 11094 13818 7803 11038 14190 8096 11176 13707 7605 10478 13285 7550 10274 12078 7012 9297 11756 6466 9093 11525 6508 9158 10831 5801 8669 10/02 11485 6311 9072 12272 6682 9325 11673 6290 9002 11498 6126 9007 11116 6034 8852 11230 6092 9121 12210 6594 9541 13407 6941 9986 13717 7029 10414 13769 7153 10455 13634 7293 10226 13944 7215 10241 10/03 14243 7623 10342 14591 7690 10529 15306 8093 11091 15877 8242 11417 15981 8356 11573 15804 8230 11239 15949 8101 11639 15866 8212 11624 16064 8372 11622 15203 8095 10895 15358 8127 11029 15524 8215 11000 10/04 15555 8341 10743 16062 8678 11018 17120 8973 11786 16488 8755 11428 16324 8939 11732 15910 8781 11742 16378 8614 12207 16607 8888 12432 16847 8901 12487 17698 9232 12919 18276 9147 12976 18570 9222 12891 10/05 17992 9068 12631 18469 9410 12902 19153 9414 13213 19768 9663 13372 19756 9689 13475 19802 9810 13324 19559 9941 12904 19223 9655 12675 19304 9668 12680 19791 9728 13211 20104 9959 13558 20208 10215 13693 10/06 20683 10548 13779
--- GLOBAL HEALTH FUND -- GOLDMAN SACHS HEALTH CARE INDEX $9,450 starting value $10,000 starting value $20,683 ending value $13,779 ending value --- S&P 500 INDEX $10,000 starting value $10,548 ending value
S&P 500 INDEX is a market capitalization weighted price index composed of 500 widely held common stocks. 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. You cannot invest directly in an index. 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 the investment adviser, without which performance would have been lower. For information on current expense waivers/reimbursements, please see the prospectus. AVERAGE ANNUAL TOTAL RETURNS(1,2) (as of 10/31/06)
INCEPTION SINCE DATE 1 YEAR 5 YEAR INCEPTION --------------------------------------------------------------- Global Health A# 5/1/2000 14.96% 9.28% 12.80% --------------------------------------------------------------- Global Health A## 5/1/2000 8.63% 8.06% 11.82% --------------------------------------------------------------- Global Health B# 5/1/2000 14.10% 8.51% 11.98% --------------------------------------------------------------- Global Health B## 5/1/2000 9.10% 8.22% 11.98% --------------------------------------------------------------- Global Health C# 5/1/2000 14.17% 8.51% 11.99% --------------------------------------------------------------- Global Health C## 5/1/2000 13.17% 8.51% 11.99% --------------------------------------------------------------- Global Health I# 5/1/2000 15.09% 9.31% 12.82% --------------------------------------------------------------- Global Health Y# 5/1/2000 15.56% 9.89% 13.42% ---------------------------------------------------------------
# Without sales charge ## With sales charge PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS. (1) Class I shares commenced operations on 8/31/06. Performance prior to 8/31/06 reflects Class A performance. (2) The initial investment in Class A shares reflects the maximum sales charge and Classes B and C reflect CDSC. (3) Growth of a $10,000 investment in Classes B, C, I and Y shares will vary from results seen above due to differences in the expenses charged to these share classes. PORTFOLIO MANAGEMENT TEAM JOSEPH H. SCHWARTZ, CFA Senior Vice President, Partner, Global Industry Analyst JEAN M. HYNES, CFA Senior Vice President, Partner, Global Industry Analyst ANN C. GALLO Senior Vice President, Partner, Global Industry Analyst KIRK J. MAYER, CFA Vice President, Global Industry Analyst ROBERT L. DERESIEWICZ Vice President, Global Industry Analyst -------------------------------------------------------------------------------- HOW DID THE FUND PERFORM? The Class A shares of The Hartford Global Health Fund returned 14.96%, before sales charges, for the twelve-month period ended October 31, 2006, outperforming its benchmark, the Goldman Sachs Health Care Index, which returned 9.09% for the same period. The Fund also outperformed the 8.41% return of the average fund in the Lipper Health and Biotechnology peer group, a group of funds with investment strategies similar to those of the Fund. WHY DID THE FUND PERFORM THIS WAY? The Health Care sector performed well during the period but lagged the broader market, as represented by the S&P 500. The Fund's outperformance was driven by superior security selection relative to the benchmark, particularly within Pharmaceuticals and Biotechnology. Industry allocation decisions also positively impacted relative performance. The top relative and absolute performers came from the Pharmaceutical sub-sector; Daiichi Sankyo, AstraZeneca and Shionogi. After the completion of the Daiichi Pharmaceutical and Sankyo merger, investor confidence grew in the combined entity's ability to grow earnings and its long-term prospects from numerous synergies. In addition, Daiichi Sankyo's R&D day boosted enthusiasm for its developmental projects in diabetes, cancer, and cardiovascular disease. AstraZeneca benefited from strong sales of its cholesterol lowering drug Crestor, as demand in the cholesterol market remains high. Shionogi shares performed well from a profitable royalty stream off sales of Crestor. We held all three stocks at the end of the period. 29 -------------------------------------------------------------------------------- Aetna was the largest detractor of absolute and relative performance and we eliminated the stock during the period. Aetna shares fell as the company experienced pricing issues as well as an unanticipated increase in high acuity inpatient claims. The company also faced increased competition in several regions including the Northeast, Florida and the Mid-Atlantic. While our Pharmaceutical holdings contributed strongly to overall performance, the Fund did not own strong performers Merck or Pfizer, which detracted from relative performance as did our holding in CV Therapeutics. Other detractors from absolute performance included Boston Scientific and UnitedHealth Group. WHAT IS THE OUTLOOK? With the stock market reaching new heights in the face of brewing difficult economic conditions, we expect a more subdued market lies ahead with the healthcare stocks performing somewhat better than the overall market. We will remain diversified and focused on the long-term while shifting selectively to those areas that seemingly offer the most value. At the end of the period the Fund was overweight in the Pharmaceuticals and Biotechnology sub-industries and underweight in Managed Health Care and Health Care services. DIVERSIFICATION BY COUNTRY as of October 31, 2006
PERCENTAGE OF COUNTRY NET ASSETS ------------------------------------------------------------------- Belgium 1.9% ------------------------------------------------------------------- Denmark 1.1 ------------------------------------------------------------------- France 4.0 ------------------------------------------------------------------- Germany 1.7 ------------------------------------------------------------------- Ireland 1.4 ------------------------------------------------------------------- Israel 0.7 ------------------------------------------------------------------- Japan 14.7 ------------------------------------------------------------------- United Kingdom 3.1 ------------------------------------------------------------------- United States 68.9 ------------------------------------------------------------------- Short-Term Investments 16.5 ------------------------------------------------------------------- Other Assets & Liabilities -14.0 ------------------------------------------------------------------- TOTAL 100.0% -------------------------------------------------------------------
DIVERSIFICATION BY INDUSTRY as of October 31, 2006
PERCENTAGE OF INDUSTRY NET ASSETS ------------------------------------------------------------------- Agencies, Brokerages, Other Insurance Activities 1.1% ------------------------------------------------------------------- Basic Chemical Manufacturing 0.7 ------------------------------------------------------------------- Drugs & Druggists Sundries Wholesalers 6.5 ------------------------------------------------------------------- Electrical Equipment Manufacturing 0.9 ------------------------------------------------------------------- General Medical and Surgical Hospitals 1.9 ------------------------------------------------------------------- Health and Personal Care Stores 1.4 ------------------------------------------------------------------- Insurance Carriers 5.0 ------------------------------------------------------------------- Medical Equipment & Supplies Manufacturing 5.4 ------------------------------------------------------------------- Navigate, Measure, Control Instrument Manufacturing 6.1 ------------------------------------------------------------------- Pharmaceutical & Medicine Manufacturing 57.7 ------------------------------------------------------------------- Professional Service -- Computer System Design & Related 1.0 ------------------------------------------------------------------- Scientific Research & Development Services 9.8 ------------------------------------------------------------------- Short-Term Investments 16.5 ------------------------------------------------------------------- Other Assets & Liabilities -14.0 ------------------------------------------------------------------- TOTAL 100.0% -------------------------------------------------------------------
30 The Hartford Global Leaders Fund (subadvised by Wellington Management Company, LLP) INVESTMENT OBJECTIVE -- SEEKS GROWTH OF CAPITAL. PERFORMANCE OVERVIEW(2) 9/30/98 - 10/31/06 Growth of a $10,000 investment in Class A which includes Sales Charge (LINE GRAPH)
GLOBAL LEADERS FUND MSCI WORLD INDEX MSCI WORLD GROWTH INDEX ------------------- ---------------- ----------------------- 9/30/98 9450 10000 10000 10/98 10697 10906 10871 11482 11556 11573 12319 12122 12419 12932 12389 12858 12572 12062 12348 13175 12566 12805 13476 13063 12784 13010 12587 12339 13876 13176 13099 14071 13138 12955 13993 13117 13115 13798 12991 13138 10/99 14695 13668 13999 15772 14055 14821 18193 15194 16518 17477 14326 15484 19457 14366 16023 19389 15361 16979 18467 14713 15840 17958 14342 14901 18765 14827 15813 18135 14412 15018 19149 14882 15552 18342 14093 14175 10/00 17288 13858 13581 16265 13019 12534 16871 13231 12299 16871 13488 12670 15320 12350 11055 14267 11541 10164 15370 12397 10987 15052 12243 10769 14764 11861 10394 14395 11705 10241 13598 11145 9612 12413 10165 8815 10/01 12782 10361 9191 13877 10975 9891 13947 11046 9941 13489 10712 9618 13389 10621 9645 13818 11114 9887 13349 10720 9467 13618 10745 9421 12762 10095 8879 11676 9245 8254 11556 9264 8254 10201 8247 7437 10/02 11168 8857 8017 12154 9337 8310 11088 8886 7992 10839 8617 7705 10580 8470 7624 10430 8447 7694 11596 9201 8247 12293 9731 8592 12582 9904 8715 12891 10106 8884 13250 10327 9064 12891 10392 9117 10/03 13907 11011 9661 14236 11181 9800 14953 11885 10272 15531 12078 10483 16069 12285 10612 16358 12208 10508 15730 11965 10302 15940 12073 10410 16477 12336 10553 15182 11936 10048 15093 11993 10020 15860 12224 10222 10/04 16428 12526 10474 17334 13190 11007 17693 13697 11423 17025 13391 11116 16627 13822 11403 16029 13560 11186 15820 13273 10947 16199 13519 11238 16348 13642 11293 16906 14122 11762 17235 14235 11870 17334 14609 12134 10/05 16737 14257 11877 17489 14740 12266 17999 15070 12535 19381 15746 13114 18876 15729 12983 19280 16082 13311 19865 16579 13623 18755 16028 13107 18866 16029 13088 18302 16133 12983 18786 16560 13331 19118 16762 13451 10/06 19512 17381 13931
--- GLOBAL LEADERS FUND --- MSCI WORLD INDEX -- MSCI WORLD GROWTH $9,450 starting $10,000 starting INDEX value value $10,000 starting value $19,512 ending value $17,381 ending value $13,931 ending value
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 WORLD GROWTH INDEX is a broad-based unmanaged market capitalization-weighted total return index which measures the performance of growth securities in 23 developed-country global equity markets including the United States, Canada, Europe, Australia, New Zealand and the Far East. The fund has changed its benchmark from the Morgan Stanley Capital International World Index to the Morgan Stanley Capital International World Growth Index because the fund's investment manager believes that the Morgan Stanley Capital International World Growth Index is better suited to the investment strategy of the fund. You cannot invest directly in an index. 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 the investment adviser, without which performance would have been lower. For information on current expense waivers/reimbursements, please see the prospectus. AVERAGE ANNUAL TOTAL RETURNS(1) (as of 10/31/06)
INCEPTION SINCE DATE 1 YEAR 5 YEARS INCEPTION ----------------------------------------------------------------- Global Leaders A# 9/30/1998 16.58% 8.82% 9.37% ----------------------------------------------------------------- Global Leaders A## 9/30/1998 10.17% 7.60% 8.61% ----------------------------------------------------------------- Global Leaders B# 9/30/1998 15.80% 8.02% NA* ----------------------------------------------------------------- Global Leaders B## 9/30/1998 10.80% 7.73% NA* ----------------------------------------------------------------- Global Leaders C# 9/30/1998 15.72% 8.10% 8.63% ----------------------------------------------------------------- Global Leaders C## 9/30/1998 14.72% 8.10% 8.63% ----------------------------------------------------------------- Global Leaders Y# 9/30/1998 17.25% 9.45% 9.97% -----------------------------------------------------------------
# Without sales charge ## With sales charge * Inception returns are not applicable for Classes B because after 8 years Class B converts to Class A. PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS. (1) The initial investment in Class A shares reflects the maximum sales charge and Classes B and C reflect CDSC. (2) Growth of a $10,000 investment in Classes B, C and Y shares will vary from results seen above due to differences in the expenses charged to these share classes. PORTFOLIO MANAGEMENT ANDREW S. OFFIT Senior Vice President, Partner JEAN-MARC BERTEAUX Vice President MATTHEW D. HUDSON Vice President -------------------------------------------------------------------------------- HOW DID THE FUND PERFORM? The Class A shares of The Hartford Global Leaders Fund returned 16.58%, before sales charges, for the twelve-month period ended October 31, 2006, versus returns of 17.29% for the MSCI World Growth Index and 21.91% for the MSCI World Index. The Fund underperformed the 18.44% return of the average fund in the Lipper Global Large Cap Growth Funds peer group, a group of funds with investment strategies similar to those of the fund. WHY DID THE FUND PERFORM THIS WAY? Global equities rose with moderating inflation expectations in recent months, helping to offset data suggesting a slowing global economy. The long-awaited pause in the Federal Reserve's monetary tightening cycle finally occurred, calming investor fears that the Fed would over tighten and tip the US economy into recession. The drop in oil and gas prices from record highs also bolstered optimism. Within the MSCI World Growth Index, Utilities, Materials, and Industrials led all sectors, while Health Care and Energy performed well but lagged the index returns for the twelve month period ended October 31, 2006. The Fund's relative performance (i.e. performance of the Fund as measured against the benchmark) was driven primarily by stock selection. Performance was hurt by our holdings in Rakuten, SanDisk, and Electronic Arts. Japan's "Amazon.com," Rakuten, was the fund's largest detractor on both an absolute and relative basis. Despite no fundamental disappointments within the online retailer's core business, the stock was negatively impacted by issues in its peripheral business, rumors of its president being arrested, and a meltdown in JASDAQ stocks as retail investors fled "new Japan" companies in light of Livedoor and Murakami Fund scandals. In addition, Australian-based materials holding BHP Billiton declined over concerns of decelerating global growth eroding demand for raw materials, leading to lower profits. While sector allocation is a fallout of the Fund's bottom-up investment process, our underweight positioning (i.e. the Fund's sector 31 -------------------------------------------------------------------------------- position was less than the benchmark position) in less traditional growth sectors, which included Materials, Consumer Staples, and Industrials, also hurt performance. The leading contributors to relative performance were Las Vegas Sands (Consumer Services), Carphone Warehouse (Retailing), and Softbank Corp (Telecommunication Services). Las Vegas Sands benefited from a strong first quarter driven by its core Las Vegas properties and increased business at the Sands Macau. Carphone Warehouse contributed meaningfully to the Fund's return on news of stronger than expected earnings driven by the UK mobile phone retailer's dominant position in the fast growing market for handsets with increased functionality. Shares of Softbank, Japan's second-biggest provider of high-speed Internet services, gained after the company reported favorable quarterly results earlier in the year. Relative performance during the period was also helped by strong selection efforts in the Financials sector, led by several global investment banks, including Credit Suisse, Goldman Sachs, and UBS. Finally, our overweight and selection in the Telecommunication Services sector contributed positively as Mexican wireless provider America Movil and tower operator American Tower performed well. America Movil reported strong earnings and is benefiting from robust subscriber growth in Latin America, while cell phone companies' increased spending to support subscriber growth and enhance coverage translated into strong earnings at American Tower. On an absolute basis Google was also a top contributor. Internet search-and-content company Google continues to take market share and remains the clear leader in the search-engine market. WHAT IS THE OUTLOOK? As usual, the Fund is positioned for growth. The Fund's overweight in Information Technology and Consumer Discretionary sectors, some of the strongest areas of growth, are a result of our bottom-up research and stock analysis. This is true to our process, which has remained unchanged. Our focus remains on stock selections that result from intense bottom-up research, diligently meeting with the management of leading global companies, and leveraging the strong research capabilities of our firm. We have strong conviction in our holdings and process and are optimistic about the Fund's positioning. DIVERSIFICATION BY COUNTRY as of October 31, 2006
PERCENTAGE OF COUNTRY NET ASSETS ------------------------------------------------------------------- Austria 1.2% ------------------------------------------------------------------- Belgium 0.8 ------------------------------------------------------------------- Canada 2.5 ------------------------------------------------------------------- Cayman Islands 0.6 ------------------------------------------------------------------- Dutch Antilles 1.8 ------------------------------------------------------------------- France 6.0 ------------------------------------------------------------------- Germany 1.6 ------------------------------------------------------------------- Ireland 1.8 ------------------------------------------------------------------- Japan 12.0 ------------------------------------------------------------------- Mexico 2.8 ------------------------------------------------------------------- Netherlands 1.3 ------------------------------------------------------------------- South Korea 1.8 ------------------------------------------------------------------- Switzerland 3.3 ------------------------------------------------------------------- Taiwan 1.9 ------------------------------------------------------------------- United Kingdom 12.4 ------------------------------------------------------------------- United States 45.6 ------------------------------------------------------------------- Short-Term Investments 13.5 ------------------------------------------------------------------- Other Assets & Liabilities -10.9 ------------------------------------------------------------------- TOTAL 100.0% -------------------------------------------------------------------
DIVERSIFICATION BY INDUSTRY As of October 31, 2006
PERCENTAGE OF INDUSTRY NET ASSETS ------------------------------------------------------------------- Basic Materials 2.5% ------------------------------------------------------------------- Capital Goods 1.6 ------------------------------------------------------------------- Consumer Cyclical 10.6 ------------------------------------------------------------------- Consumer Staples 5.9 ------------------------------------------------------------------- Energy 2.3 ------------------------------------------------------------------- Finance 18.7 ------------------------------------------------------------------- Health Care 11.6 ------------------------------------------------------------------- Services 10.2 ------------------------------------------------------------------- Technology 33.2 ------------------------------------------------------------------- Transportation 0.8 ------------------------------------------------------------------- Short-Term Investments 13.5 ------------------------------------------------------------------- Other Assets & Liabilities -10.9 ------------------------------------------------------------------- TOTAL 100.0% -------------------------------------------------------------------
32 The Hartford Global Technology Fund (subadvised by Wellington Management Company, LLP) INVESTMENT OBJECTIVE -- SEEKS LONG-TERM CAPITAL APPRECIATION. PERFORMANCE OVERVIEW(2) 5/1/00 - 10/31/06 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 8898 9795 9812 9992 10036 9181 9527 9879 10426 10766 10493 8930 9022 9939 10/00 8103 8341 9897 6146 6431 9117 5930 5880 9162 6868 6845 9487 5367 4947 8622 4626 4260 8076 5480 5073 8703 5217 4871 8762 5301 4884 8549 4954 4536 8464 4194 3946 7935 3265 3148 7294 10/01 3763 3653 7434 4429 4276 8004 4588 4200 8074 4541 4196 7956 3978 3635 7803 4279 3894 8096 3763 3417 7605 3547 3277 7550 3181 2814 7012 2862 2529 6466 2824 2497 6508 2308 2051 5801 10/02 2796 2499 6311 3284 2936 6682 2824 2509 6290 2871 2487 6126 2862 2525 6034 2852 2496 6092 3162 2756 6594 3509 3064 6941 3547 3056 7029 3744 3232 7153 3988 3455 7293 3941 3405 7215 10/03 4391 3737 7623 4476 3809 7690 4523 3868 8093 4701 4050 8242 4645 3935 8356 4513 3827 8230 4204 3604 8101 4485 3804 8212 4579 3897 8372 4063 3528 8095 3791 3352 8127 3960 3468 8215 10/04 4147 3652 8341 4401 3858 8678 4532 3981 8973 4269 3718 8755 4269 3725 8939 4082 3635 8781 4016 3449 8614 4382 3763 8888 4372 3690 8901 4654 3938 9232 4682 3908 9147 4720 3948 9222 10/05 4663 3878 9068 4992 4137 9410 5010 4062 9414 5433 4213 9663 5254 4148 9689 5367 4241 9810 5433 4213 9941 5038 3904 9655 4907 3850 9668 4719 3685 9728 5029 3974 9959 5189 4133 10215 10/06 5320 4298 10548
--- GLOBAL TECHNOLOGY FUND --- GOLDMAN SACHS TECHNOLOGY COMPOSITE INDEX $9,450 starting value $10,000 starting value $5,320 ending value $4,298 ending value -- S&P 500 INDEX $10,000 starting value $10,548 ending value
S&P 500 INDEX is a market capitalization weighted price index composed of 500 widely held common stocks. 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. You cannot invest directly in an index. 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 the investment adviser, without which performance would have been lower. For information on current expense waivers/reimbursements, please see the prospectus. AVERAGE ANNUAL TOTAL RETURNS(1) (as of 10/31/06)
INCEPTION SINCE DATE 1 YEAR 5 YEAR INCEPTION ----------------------------------------------------------------- Global Tech A# 5/1/2000 14.08% 7.17% -8.45% ----------------------------------------------------------------- Global Tech A## 5/1/2000 7.81% 5.96% -9.25% ----------------------------------------------------------------- Global Tech B# 5/1/2000 13.42% 6.44% -9.11% ----------------------------------------------------------------- Global Tech B## 5/1/2000 8.42% 6.12% -9.11% ----------------------------------------------------------------- Global Tech C# 5/1/2000 13.21% 6.34% -9.14% ----------------------------------------------------------------- Global Tech C## 5/1/2000 12.21% 6.34% -9.14% ----------------------------------------------------------------- Global Tech Y# 5/1/2000 14.34% 7.57% -8.09% -----------------------------------------------------------------
# Without sales charge ## With sales charge PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS. (1) The initial investment in Class A shares reflects the maximum sales charge and Classes B and C reflect CDSC. (2) Growth of a $10,000 investment in Classes B, C and Y shares will vary from results seen above due to differences in the expenses charged to these share classes. PORTFOLIO MANAGEMENT TEAM SCOTT E. SIMPSON Senior Vice President, Partner, Global Industry Analyst JOHN F. AVERILL, CFA Senior Vice President, Partner, Global Industry Analyst ERIC STROMQUIST Senior Vice President, Partner, Global Industry Analyst BRUCE L. GLAZER Senior Vice President, Partner, Global Industry Analyst ANITA M. KILLIAN, CFA Vice President, Global Industry Analyst -------------------------------------------------------------------------------- HOW DID THE FUND PERFORM? The Class A shares of The Hartford Global Technology Fund returned 14.08%, before sales charges, for the twelve-month period ended October 31, 2006, outperforming its benchmark, the Goldman Sachs Technology Composite Index, which returned 10.83% for the same period. The Fund also outperformed the 10.21% return of the average fund in the Lipper Science and Technology Funds peer group, a group of funds with investment strategies similar to those of the Fund. WHY DID THE FUND PERFORM THIS WAY? Technology stocks hit a rough patch earlier in the year but rebounded to end the period with double-digit returns. The Technology sector lagged the broader market during the period, as measured by the MSCI World Index. Outperformance during the period was the result of superior security selection relative to the Goldman Sachs Technology Composite Index. Selection was strongest among Electronic Manufacturing Services, Communications Equipment and Semiconductor Equipment. Top contributors to relative performance during the period included Hon Hai Precision, Intel, Nokia and Samsung. Hon Hai, a manufacturer of electronics and communications products, benefited from the high demand for consumer electronics, particularly mobile phones. Similarly, Nokia benefited from mobile phone growth outside of the US as it gained share in emerging markets, Asia, and Latin America. We eliminated Nokia at the end of the period as it reached our target price. The Fund benefited from an underweight in Intel, which was down throughout much of the period. We initiated a position in Intel at the end of the period in anticipation of its new product cycle. Our 33 -------------------------------------------------------------------------------- position in Samsung (not held in the benchmark) also proved beneficial. Hewlett-Packard and Google, both up double-digits for the period, contributed strongly to absolute performance. The Fund's Systems Software and Computer Hardware holdings detracted most from benchmark-relative performance during the period. The top detractors of benchmark-relative performance were Oracle, Microsoft, and Red Hat. Our underweight position in Oracle, which performed well during the period, detracted most from relative performance. Microsoft's shares declined on news that the company planned to ramp spending aggressively to more effectively compete with Google. The shares have recovered recently as we are approaching the delivery of Windows Vista. Red Hat shares fell as the company continued to battle with Oracle for share in open source software solutions. We continued to hold all three stocks at the end of the period. WHAT IS THE OUTLOOK? We expect a slowing economy and typically find that the computer services sub-industry does quite well in this environment. We currently observe healthy fundamentals and attractive valuation levels. On the internet front, online advertising spending continues to be very robust in general (both branded and search). We believe the cell phone industry will likely remain healthy, although we do anticipate some growth deceleration over the next few quarters. We continue to favor market share gainers and companies able to launch attractive new products on a timely basis. As for the semiconductor industry, we believe that the worst is over but we don't expect the group to outperform based on several months of decelerating growth rates. We like a number of stocks in that space but continue to look for improved fundamentals to change our views on the group. In the hardware industry, we apply careful stock picking methodology as we do not embrace the group as a whole. At the end of the period the Fund was most overweight the Data Processing & Outsourced Services and Home Entertainment Software sub-industries, and most underweight Systems Software and Computer Hardware. DIVERSIFICATION BY COUNTRY as of October 31, 2006
PERCENTAGE OF COUNTRY NET ASSETS ------------------------------------------------------------------- Canada 2.7% ------------------------------------------------------------------- France 1.7 ------------------------------------------------------------------- Japan 1.2 ------------------------------------------------------------------- Luxembourg 0.8 ------------------------------------------------------------------- South Korea 3.0 ------------------------------------------------------------------- Sweden 1.9 ------------------------------------------------------------------- Taiwan 4.1 ------------------------------------------------------------------- United States 82.6 ------------------------------------------------------------------- Short-Term Investments 4.0 ------------------------------------------------------------------- Other Assets & Liabilities -2.0 ------------------------------------------------------------------- TOTAL 100.0% -------------------------------------------------------------------
DIVERSIFICATION BY INDUSTRY as of October 31, 2006
PERCENTAGE OF INDUSTRY NET ASSETS ------------------------------------------------------------------- Activities Related to Credit Banking 1.7% ------------------------------------------------------------------- Audio and Video Equipment Manufacturing 1.2 ------------------------------------------------------------------- Business Support Services 1.2 ------------------------------------------------------------------- Communications Equipment Manufacturing 6.9 ------------------------------------------------------------------- Computer and Peripheral Manufacturing 19.3 ------------------------------------------------------------------- Data Processing Services 1.8 ------------------------------------------------------------------- Electrical Equipment Manufacturing -- Component Other 3.3 ------------------------------------------------------------------- Employment Services 2.4 ------------------------------------------------------------------- Internet Providers & Web Search Portals 0.8 ------------------------------------------------------------------- Machinery Manufacturing -- Industrial Machinery 6.6 ------------------------------------------------------------------- Management, Scientific, and Technical Consulting Services 3.7 ------------------------------------------------------------------- Navigate, Measure, Control Instrument Manufacturing 1.5 ------------------------------------------------------------------- On-Line Information Services 5.3 ------------------------------------------------------------------- Other Investment Pools and Funds 0.4 ------------------------------------------------------------------- Other Services -- Other Personal Services 0.8 ------------------------------------------------------------------- Professional Services -- Computer System Design & Related 5.5 ------------------------------------------------------------------- Retail -- Electronic Shopping and Mail-Order Houses 2.5 ------------------------------------------------------------------- Semiconductor, Electronic Component Manufacturing 17.9 ------------------------------------------------------------------- Software Publishers 13.1 ------------------------------------------------------------------- Wholesalers -- Electrical Goods 1.1 ------------------------------------------------------------------- Wireless Communications Services 1.0 ------------------------------------------------------------------- Short-Term Investments 4.0 ------------------------------------------------------------------- Other Assets & Liabilities -2.0 ------------------------------------------------------------------- TOTAL 100.0% -------------------------------------------------------------------
34 The Hartford Growth Allocation Fund (advised by Hartford Investment Financial Services, LLC) INVESTMENT OBJECTIVE -- SEEKS LONG-TERM CAPITAL APPRECIATION. PERFORMANCE OVERVIEW(3) 5/28/04 - 10/31/06 Growth of a $10,000 investment in Class A which includes Sales Charge (LINE GRAPH)
LEHMAN BROTHERS U.S. GROWTH ALLOCATION FUND S&P 500 INDEX AGGREGATE BOND INDEX ---------------------- ------------- -------------------- 5/28/04 9450 10000 10000 9450 10000 10000 6/04 9611 10194 10057 9337 9857 10156 8/04 9346 9897 10350 9601 10004 10378 10/04 9790 10157 10465 10178 10567 10382 12/04 10493 10927 10477 10237 10661 10543 2/05 10408 10885 10481 10199 10692 10427 4/05 10019 10490 10568 10313 10823 10682 6/05 10474 10838 10741 10787 11241 10643 8/05 10844 11139 10779 10939 11229 10668 10/05 10683 11042 10584 11071 11459 10631 12/05 11258 11463 10732 11737 11766 10732 2/06 11670 11798 10768 11833 11945 10662 4/06 12015 12105 10643 11584 11757 10631 6/06 11545 11773 10654 11430 11846 10798 8/06 11660 12127 10963 11804 12439 11060 10/06 12140 12844 11133
--- GROWTH ALLOCATION FUND -- LEHMAN BROTHERS U.S. AGGREGATE --- S&P 500 INDEX $9,450 starting value BOND INDEX $10,000 starting value $12,140 ending value $10,000 starting value $12,844 ending value $11,133 ending value
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 Index and Commercial Mortgage-Backed Securities Index. S&P 500 INDEX is a market capitalization weighted price index composed of 500 widely held common stocks. You cannot invest directly in an index. 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 the investment adviser, without which performance would have been lower. For information on current expense waivers/reimbursements, please see the prospectus. AVERAGE ANNUAL TOTAL RETURNS(1,2) (as of 10/31/06)
INCEPTION SINCE DATE 1 YEAR INCEPTION ---------------------------------------------------------- Growth Allocation A# 5/28/2004 13.64% 10.87% ---------------------------------------------------------- Growth Allocation A## 5/28/2004 7.39% 8.32% ---------------------------------------------------------- Growth Allocation B# 5/28/2004 12.96% 10.19% ---------------------------------------------------------- Growth Allocation B## 5/28/2004 7.96% 9.11% ---------------------------------------------------------- Growth Allocation C# 5/28/2004 12.96% 10.19% ---------------------------------------------------------- Growth Allocation C## 5/28/2004 11.96% 10.19% ---------------------------------------------------------- Growth Allocation I# 5/28/2004 13.73% 10.91% ----------------------------------------------------------
# Without sales charge ## With sales charge PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS. (1) Class I shares commenced operations on 8/31/06. Performance prior to 8/31/06 reflects Class A performance. (2) The initial investment in Class A shares reflects the maximum sales charge and Classes B and C reflect CDSC. (3) Growth of a $10,000 investment in Classes B, C and I shares will vary from results seen above due to differences in the expenses charged to these share classes. PORTFOLIO MANAGERS WILLIAM DAVISON, CFA Senior Vice President CHRISTOPHER HANLON, CFA Senior Vice President HUGH WHELAN, CFA Executive Vice President -------------------------------------------------------------------------------- HOW DID THE FUND PERFORM? The Hartford Growth Allocation Fund (Class A) gained 13.64%, before sales charges, for the year ended October 31, 2006, versus the returns of 12.47% for the Lipper Mixed-Asset Target Allocation Growth Funds peer group, 5.19% for the Lehman Brothers U.S. Aggregate Bond Index and 16.33% for the S&P 500 Index. WHY DID THE FUND PERFORM THIS WAY? The Fund's fiscal year, which ended October 31, 2006, began in a period of rising interest rates. Historically high energy and commodity prices, a boom in the housing market, and a strengthening economy led to concerns about rising inflation. To keep inflation in check, the Federal Reserve (the Fed) continued its cycle of monetary tightening that began in the summer of 2004. By June of 2006, the Fed had raised its Federal Funds Target Rate (Fed Funds Rate) 17 consecutive times, leaving the Fed Funds Rate at 5.25%. In response to the Fed's tightening, short- and intermediate-term bond yields rose through the first half of 2006. Thus, as interest rates rose, the principal value of these short- and intermediate-term bonds declined in response. In contrast, long-term bond yields did not rise as substantially due to overseas demand and expectations that the Fed could keep inflation low over the long run. The result was a yield curve that remained flat or even inverted (i.e. bonds with longer term maturities having a lower interest rate than bonds with shorter maturities) through most of the fiscal year. However, by August of 2006, the Fed became concerned that economic growth was slowing, in part due to the retreating housing market. The Fed found itself in a conundrum as to whether it should continue raising interest rates to restrain inflation, or to pause in the tightening cycle to assess prospects for further economic growth. Since changes in the rate of inflation often lag changes in economic conditions, the Fed left rates unchanged at its two most recent meetings while it waited for more data before taking action. Sensing that the Fed would continue easing monetary policy, the equity and bond markets rallied in the last months of the fiscal year. While stocks, and in particular foreign and small cap stocks, performed strongly for the year, fixed income securities provided more modest gains. For the full 12 month period, value oriented stocks outpaced growth stocks. However, growth stocks did return to favor in the last few months of the fiscal year. Aided in part by favorable currency movements and strengthening foreign economies, the international and emerging market equity indices 35 -------------------------------------------------------------------------------- outperformed the major domestic indices for the year. Fortunately, the bond rally over the last few months offset the negative impact of rising interest rates earlier in the year, allowing the major bond sectors to finish with positive returns for the period. During much of the year, fixed income investors were unable to achieve higher levels of yield by going out longer on the yield curve (i.e. purchasing bonds with a longer maturity date). Thus, many bond investors shifted to lower quality and foreign issues as they sought greater yield. During the period, the traditionally "riskier" high yield and emerging markets bonds were among the strongest performers for the year. Based upon the Fund's design, the Fund's fixed income component emphasizes investment grade securities. The Fund did, however, benefit modestly from its small exposure to "spread" sectors and higher yielding securities. For the year, the Fund responded to changes in interest rates that was roughly in-line with the benchmark. Thus, as interest rates declined during most of the fiscal year, the Fund's fixed income component contributed to absolute performance. With the Dow Jones Industrial reaching its all-time high late in the period, the Fund also generated positive gains from its allocation to equities. The Fund is constructed such that it has exposure to the various styles of equities, including international, mid-cap and small cap stocks. This diversification is expected to enhance the long-term return and risk characteristics of the Fund. The added diversification benefited the Fund through most of the year. However, since domestic, large cap stocks dominated the stock rally late in the period, the Fund's exposure to foreign and smaller capitalization equities partially offset some of their earlier contributions. Although the Fund's asset allocations were positive contributors to performance, selection at the individual fund level and within the underlying funds appeared to detract from relative return. The Fund typically uses cash flows to implement investment allocation changes to the Fund, when appropriate. However, a hard asset rebalance (i.e. a fund rebalancing to move the underlying fund investments to their target allocation percentages) was performed in February due to the strong performance by certain investment sectors. WHAT IS THE OUTLOOK? The recent rally in fixed-rate bonds has resulted in bond prices that reflect an environment of economic weakness that is not consistent with our view of the economy. Declines in interest rates and gasoline prices, coupled with a decent employment picture and gains in the stock market, should be supportive of continued consumer spending. While housing remains a wild card for the U.S. economy, our view is that the Fed is still concerned with inflation and that policy decisions will favor price stability as long as economic growth does not decline dramatically. In the coming months we will be closely watching the economy to determine the impact of a slower housing market on the U.S. consumer and what implications that has for the economy going forward. COMPOSITION BY UNDERLYING FUND as of October 31, 2006
PERCENTAGE OF FUND NAME NET ASSETS ------------------------------------------------------------------- Hartford Capital Appreciation Fund, Class Y 13.2% ------------------------------------------------------------------- Hartford Disciplined Equity Fund, Class Y 13.1 ------------------------------------------------------------------- Hartford Equity Income Fund, Class Y 0.2 ------------------------------------------------------------------- Hartford Global Leaders Fund, Class Y 6.8 ------------------------------------------------------------------- Hartford Growth Fund, Class Y 2.5 ------------------------------------------------------------------- Hartford Growth Opportunities Fund, Class Y 3.8 ------------------------------------------------------------------- Hartford Inflation Plus Fund, Class Y 7.2 ------------------------------------------------------------------- Hartford International Capital Appreciation Fund, Class Y 3.3 ------------------------------------------------------------------- Hartford International Opportunities Fund, Class Y 2.5 ------------------------------------------------------------------- Hartford International Small Company Fund, Class Y 3.9 ------------------------------------------------------------------- Hartford MidCap Value Fund, Class Y 1.7 ------------------------------------------------------------------- Hartford Select MidCap Growth Fund, Class Y 1.6 ------------------------------------------------------------------- Hartford Select MidCap Value Fund, Class Y 1.2 ------------------------------------------------------------------- Hartford Select SmallCap Growth Fund, Class Y 0.2 ------------------------------------------------------------------- Hartford Short Duration Fund, Class Y 4.2 ------------------------------------------------------------------- Hartford Small Company Fund, Class Y 6.3 ------------------------------------------------------------------- Hartford SmallCap Growth Fund, Class Y 8.1 ------------------------------------------------------------------- Hartford Total Return Bond Fund, Class Y 8.7 ------------------------------------------------------------------- Hartford Value Fund, Class Y 4.7 ------------------------------------------------------------------- Hartford Value Opportunities Fund, Class Y 6.7 ------------------------------------------------------------------- Other Assets and Liabilities 0.1 ------------------------------------------------------------------- TOTAL 100.0% -------------------------------------------------------------------
36 The Hartford Growth Fund (subadvised by Wellington Management Company, LLP) INVESTMENT OBJECTIVE -- SEEKS LONG-TERM CAPITAL APPRECIATION. PERFORMANCE OVERVIEW(1,3) 10/31/96 - 10/31/06 Growth of a $10,000 investment in Class A which includes Sales Charge (LINE GRAPH)
GROWTH FUND RUSSELL 1000 GROWTH INDEX ----------- ------------------------- 10/31/96 9450 10000 9961 10751 9640 10540 10073 11280 9841 11203 9323 10597 9671 11301 10587 12116 10998 12601 11998 13716 11672 12913 12217 13548 10/97 11842 13047 11762 13602 11934 13754 12077 14165 12941 15231 13656 15838 13704 16057 13481 15601 14266 16557 14022 16447 11855 13979 12681 15053 10/98 13314 16263 14088 17500 15471 19078 16209 20198 15607 19275 16409 20290 16653 20316 16309 19692 17054 21071 16775 20402 16345 20735 16051 20299 10/99 17155 21832 18006 23010 20835 25403 20152 24212 22280 25396 22144 27214 20234 25919 19616 24614 20353 26479 20034 25375 21689 27673 21398 25055 10/00 20544 23869 18630 20351 19804 19707 18899 21068 18016 17492 16842 15588 18824 17560 18878 17301 18296 16901 17736 16478 16250 15131 14818 13620 10/01 15324 14335 16750 15712 16912 15682 16406 15405 15942 14766 16427 15277 15113 14030 14801 13690 13454 12424 12560 11741 12722 11776 11709 10554 10/02 12819 11523 13551 12149 12722 11309 12442 11035 12226 10984 12635 11189 13702 12016 14370 12616 14704 12789 14941 13108 15253 13434 15210 13290 10/03 16363 14036 16578 14183 16869 14674 17418 14973 17612 15069 17537 14789 17310 14617 18032 14890 18409 15076 17009 14223 16600 14153 17310 14288 10/04 17440 14511 18065 15010 18851 15598 18043 15078 17828 15239 17407 14961 17300 14676 18323 15386 18517 15329 18883 16079 18743 15871 19034 15945 10/05 18657 15790 19497 16471 19626 16419 20284 16707 19831 16681 20057 16927 20553 16904 19109 16331 19045 16267 18485 15957 19002 16455 19454 16907 10/06 19874 17501
--- GROWTH FUND --- RUSSELL 1000 GROWTH INDEX $9,450 starting value $10,000 starting value $19,874 ending value $17,501 ending value
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. You cannot invest directly in an index. 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 the investment adviser, without which performance would have been lower. For information on current expense waivers/reimbursements, please see the prospectus. PORTFOLIO MANAGEMENT ANDREW J. SHILLING, CFA Senior Vice President, Partner JOHN A. BOSELLI, CFA Senior Vice President, Partner AVERAGE ANNUAL TOTAL RETURNS(1,2) (as of 10/31/06)
INCEPTION 1 5 10 SINCE DATE YEAR YEAR YEAR INCEPTION ---------------------------------------------------------------- Growth A# 6/8/1949 6.52% 5.33% 7.71% 10.99% ---------------------------------------------------------------- Growth A## 6/8/1949 0.67% 4.15% 7.11% 10.88% ---------------------------------------------------------------- Growth B# 11/14/1994 5.66% 4.57% NA* NA* ---------------------------------------------------------------- Growth B## 11/14/1994 0.66% 4.23% NA* NA* ---------------------------------------------------------------- Growth C# 11/14/1994 5.78% 4.62% 6.95% 8.35% ---------------------------------------------------------------- Growth C## 11/14/1994 4.78% 4.62% 6.95% 8.35% ---------------------------------------------------------------- Growth H# 11/14/1994 5.99% 4.80% NA* NA* ---------------------------------------------------------------- Growth H## 11/14/1994 1.99% 4.47% NA* NA* ---------------------------------------------------------------- Growth I# 2/19/2002 6.58% NA NA 5.17% ---------------------------------------------------------------- Growth L# 6/8/1949 6.80% 5.61% 7.85% 11.02% ---------------------------------------------------------------- Growth L## 6/8/1949 1.73% 4.58% 7.33% 10.92% ---------------------------------------------------------------- Growth M# 11/14/1994 6.00% 4.81% NA* NA* ---------------------------------------------------------------- Growth M## 11/14/1994 2.00% 4.48% NA* NA* ---------------------------------------------------------------- Growth N# 11/14/1994 6.00% 4.81% 7.05% 8.44% ---------------------------------------------------------------- Growth N## 11/14/1994 5.00% 4.81% 7.05% 8.44% ---------------------------------------------------------------- Growth Y# 2/19/2002 7.03% NA NA 5.15% ----------------------------------------------------------------
# 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. (1) Classes A, B and C were offered beginning on February 19, 2002. Performance prior to that date is that of the fund's Classes L, M and N shares, respectively, which have lower operating expenses. Performance prior to February 19, 2002 would have been lower if Classes A, B and C shares expenses were applied during that period. Class I shares commenced operations on 8/31/06. Performance prior to 8/31/06 reflects Class A performance. (2) The initial investment in Classes A and L shares reflects the maximum sales charge and Classes B, C, H, M and N reflect CDSC. (3) Growth of a $10,000 investment in Classes B, C, H, I, L, M, N and Y shares will vary from results seen above due to differences in the expenses charged to these share classes. -------------------------------------------------------------------------------- HOW DID THE FUND PERFORM? The Class A shares of The Hartford Growth Fund returned 6.52%, before sales charges, for the twelve-month period ended October 31, 2006, underperforming its benchmark, the Russell 1000 Growth Index, which returned 10.84% for the same period. The Fund also underperformed the 7.42% return of the average fund in the Large-Cap Growth Funds peer group, a group of funds with investment strategies similar to those of the Fund. WHY DID THE FUND PERFORM THIS WAY? The equity markets closed the one year period with a gain in October. For the year ended October 31, 2006, US large cap equities performed well (+16.3% as measured by the S&P 500 Index) but were solidly outpaced by small cap shares (+20.0%). From a style perspective, returns of growth and value stocks showed little if any deviation from the broader market, rising 10.8% and 16.3%, respectively. Small cap (+20.0%) shares noticeably outperformed blue chips while mid-caps (+13.4%) performed well. Poor security selection was the main source of underperformance for the period predominately in the Health Care and Information Technology sectors. The top three detractors were Marvell Technology, Electronic Arts, and Medtronic. Global semiconductor company Marvell Technology declined on weak earnings and lowered guidance. We reduced our position due to decelerating growth and lowered expectations in the drive business; however we feel that the growth drivers for 2007 and beyond remain intact. We eliminated our position in Electronic Arts after video game stocks fell as consumers delayed purchases in anticipation of next generation console launches. Medical devices company Medtronic is trading at an inexpensive valuation due to concerns about its 37 -------------------------------------------------------------------------------- Implantable Cardioverter Defibrillator (ICD) business. We believe the company will benefit from improvements in its ICD business as well as from its strong product pipeline in other segments of its business. Sector allocation, a result of our bottom up stock picking, also detracted slightly from fund performance. Strong stock selection within the Financials and Energy sectors contributed positively the Fund's fiscal year returns. The top three contributors to perform were AstraZeneca, Network Appliance, and Chicago Mercantile. Non-US pharmaceutical firm AstraZeneca outperformed during the period showing solid growth from existing drugs. Shares also benefited from an improving product pipeline and recent takeover speculation. We expect pipeline success, solid growth from Crestor and Seroquel, and stock buybacks/dividends to spur price appreciation. Data management firm Network Appliance rose in conjunction with strong revenue growth and a broadening product lineup. Shares of the world's largest trading market, Chicago Mercantile Exchange, continued their ascent alongside rising trading volumes and expansion of its electronic trading platform, Globex. WHAT IS THE OUTLOOK? Our investment approach is very much a "bottom-up" process; we pick one stock at a time based upon the attractiveness of each company's valuation and fundamentals. Greater-than-benchmark exposure to Financials includes top-10 position weights in world class wealth manager UBS and asset manager Franklin Resources. Exposure was reduced by swapping Legg Mason and Countrywide Financial for State Street. Health Care exposure remains above benchmark and tilted toward pharmaceuticals, with AstraZeneca and Schering-Plough among the Portfolio's top active positions. We have neutralized exposure to the Energy sector, eliminating Peabody Energy and Petro-Canada and reducing positions in Halliburton and Cameco. Consumer-related sectors remain relatively unattractive. We did, however, reduce the Fund's underweight to Consumer Staples via a new position in PepsiCo. DIVERSIFICATION BY INDUSTRY as of October 31, 2006
PERCENTAGE OF INDUSTRY NET ASSETS ------------------------------------------------------------------- Basic Materials 2.4% ------------------------------------------------------------------- Capital Goods 4.0 ------------------------------------------------------------------- Consumer Cyclical 3.3 ------------------------------------------------------------------- Consumer Staples 0.7 ------------------------------------------------------------------- Energy 1.5 ------------------------------------------------------------------- Finance 19.5 ------------------------------------------------------------------- Health Care 13.1 ------------------------------------------------------------------- Services 16.1 ------------------------------------------------------------------- Technology 33.4 ------------------------------------------------------------------- Transportation 3.1 ------------------------------------------------------------------- Utilities 2.0 ------------------------------------------------------------------- Short-Term Investments 3.8 ------------------------------------------------------------------- Other Assets & Liabilities -2.9 ------------------------------------------------------------------- TOTAL 100.0% -------------------------------------------------------------------
38 The Hartford Growth Opportunities Fund (subadvised by Wellington Management Company, LLP) INVESTMENT OBJECTIVE -- SEEKS SHORT- AND LONG-TERM CAPITAL APPRECIATION. PERFORMANCE OVERVIEW(1,3) 10/31/96 - 10/31/06 Growth of a $10,000 investment in Class A which includes Sales Charge (LINE GRAPH)
GROWTH OPPORTUNITIES FUND RUSSELL 3000 GROWTH INDEX ------------------------- ------------------------- 10/31/96 9450 10000 9898 10705 9532 10535 10010 11227 9452 11095 8795 10478 8880 11103 9866 11974 10274 12447 11314 13503 10959 12824 11540 13496 10/97 11032 12964 10941 13426 10841 13562 10677 13911 11628 14974 12220 15574 12295 15778 11999 15265 12641 16131 12006 15914 9798 13420 10565 14476 10/98 11062 15607 11480 16796 12898 18311 13299 19368 12270 18418 12916 19365 12925 19507 12582 18954 13499 20257 13473 19614 13709 19858 13771 19494 10/99 14764 20899 16480 22098 19821 24505 19557 23422 25305 24885 22947 26293 20991 24940 19705 23621 22700 25495 21986 24354 24975 26582 24997 24148 10/00 22826 22948 18439 19513 20509 19012 20146 20341 17550 16935 15602 15114 17074 17021 16925 16818 16889 16494 16491 16012 15374 14723 12999 13192 10/01 13661 13921 15033 15246 15565 15281 15399 14992 14472 14346 15234 14892 14480 13738 14293 13371 12690 12141 11447 11391 11174 11423 10283 10260 10/02 11002 11174 12000 11812 11138 10996 10987 10726 10836 10662 11138 10858 12151 11675 13093 12305 13474 12478 13603 12833 14214 13179 14027 13023 10/03 15270 13784 15780 13951 15996 14401 16484 14730 16722 14815 16844 14566 16341 14353 16966 14622 17462 14827 15981 13948 15766 13861 16614 14042 10/04 16880 14272 17677 14822 18575 15399 17922 14869 17763 15032 17433 14733 16980 14396 18072 15119 18770 15109 19862 15875 19948 15668 20394 15745 10/05 20005 15554 20875 16243 21478 16195 22877 16590 22552 16558 22970 16854 23356 16829 22049 16200 21763 16142 21114 15789 21609 16279 22011 16698 10/06 22675 17326
--- GROWTH OPPORTUNITIES FUND --- RUSSELL 3000 GROWTH INDEX $9,450 starting value $10,000 starting value $22,675 ending value $17,326 ending value
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. You cannot invest directly in an index. 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 the investment adviser, without which performance would have been lower. For information on current expense waivers/reimbursements, please see the prospectus. PORTFOLIO MANAGER MICHAEL T. CARMEN, CFA Senior Vice President, Partner MARIO E. ABULARACH, CFA Vice President AVERAGE ANNUAL TOTAL RETURNS(1,2) (as of 10/31/06)
INCEPTION 1 5 10 SINCE DATE YEAR YEAR YEAR INCEPTION ---------------------------------------------------------------------- Growth Opp A# 3/31/1963 13.35% 10.66% 9.14% 12.90% ---------------------------------------------------------------------- Growth Opp A## 3/31/1963 7.12% 9.42% 8.53% 12.75% ---------------------------------------------------------------------- Growth Opp B# 11/14/1994 12.36% 9.87% NA* NA* ---------------------------------------------------------------------- Growth Opp B## 11/14/1994 7.36% 9.60% NA* NA* ---------------------------------------------------------------------- Growth Opp C# 11/14/1994 12.40% 9.87% 8.35% 10.21% ---------------------------------------------------------------------- Growth Opp C## 11/14/1994 11.40% 9.87% 8.35% 10.21% ---------------------------------------------------------------------- Growth Opp H# 11/14/1994 12.62% 10.11% NA* NA* ---------------------------------------------------------------------- Growth Opp H## 11/14/1994 8.62% 9.84% NA* NA* ---------------------------------------------------------------------- Growth Opp I# 2/19/2002 13.39% NA NA 10.44% ---------------------------------------------------------------------- Growth Opp L# 3/31/1963 13.45% 10.94% 9.28% 12.93% ---------------------------------------------------------------------- Growth Opp L## 3/31/1963 8.06% 9.87% 8.75% 12.81% ---------------------------------------------------------------------- Growth Opp M# 11/14/1994 12.64% 10.12% NA* NA* ---------------------------------------------------------------------- Growth Opp M## 11/14/1994 8.64% 9.84% NA* NA* ---------------------------------------------------------------------- Growth Opp N# 11/14/1994 12.64% 10.10% 8.46% 10.31% ---------------------------------------------------------------------- Growth Opp N## 11/14/1994 11.64% 10.10% 8.46% 10.31% ---------------------------------------------------------------------- Growth Opp Y# 2/19/2002 13.76% NA NA 10.33% ---------------------------------------------------------------------- Growth Opp Z# 3/1/1996 13.77% 11.29% 9.60% 10.09% ----------------------------------------------------------------------
# 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. (1) Classes A, B and C were offered beginning on February 19, 2002. Performance prior to that date is that of the fund's Classes L, M and N shares, respectively, which have lower operating expenses. Performance prior to February 19, 2002 would have been lower if Classes A, B and C shares expenses were applied during that period. Class I shares commenced operations on 8/31/06. Performance prior to 8/31/06 reflects Class A performance. (2) The initial investment in Classes A and L shares reflects the maximum sales charge and Classes B, C, H, M and N reflect CDSC. (3) Growth of a $10,000 investment in Classes B, C, H, I, L, M, N, Y and Z shares will vary from results seen above due to differences in the expenses charged to these share classes. -------------------------------------------------------------------------------- HOW DID THE FUND PERFORM? The Hartford Growth Opportunities Fund Class A shares returned 13.35%, before sales charges, for the twelve-month period ended October 31, 2006, outperforming the Russell 3000 Growth Index, which returned 11.39% for the same period. The Fund also outperformed the 10.39% return of the average fund in the Lipper Multi-Cap Growth Funds peer group, a group of funds with investment strategies similar to those of the Fund. WHY DID THE FUND PERFORM THIS WAY? As measured by the Russell 3000 Growth Index, equity markets ended broadly higher for the fourth fiscal year in a row. Three of the last four quarters were positive, with the April to July period showing the only significant decline as investors moved away from stocks in favor of less risky assets. Every sector in the benchmark posted positive returns for the period, led by a disparate group of sectors: Utilities (+29%), Telecommunication Services (+25%), and Materials (+18%). The laggards in this environment were Health Care (+7%), Technology (+9%), and Energy (+10%). These positive returns took place against a backdrop of a weakening housing market, declining energy prices, and continued turmoil in Iraq. The Fund outperformed by maintaining its focus on stock selection. Positions in Health Care and Technology stocks were most additive to returns. Pharmaceutical company Shionogi and diagnostic test provider Digene led results in Health Care. Shionogi shares advanced as the company's cholesterol fighting drug Crestor beat growth expectations. Digene rose on strong sales of its test to detect HPV, a virus that is a known causative agent in cervical cancer. In Technology, Network Appliance benefited from a healthy storage spending environment where sales of the company's mid-range storage solution, FAS3000, remained strong. Avoiding benchmark heavyweights Intel and Dell, which 39 -------------------------------------------------------------------------------- performed poorly during the period, also helped to boost relative performance. Other significant contributors included Melco International and Gol Linhas. Shares in Hong Kong-based conglomerate Melco International were up on news of a deal that would positively impact the company's plans to open its first casino in Macau. We sold the stock during the period due to its strong performance. Low-cost, low-fare Brazilian airline Gol Linhas performed well as competitor Varig amassed debt and ceded market share. Aggressive pricing, expanding routes, and rising load factors contributed to higher revenues and profits. We believe Gol's superior competitive positioning, continued route expansion, and Varig's demise should support attractive fundamentals going forward. The Fund's results in Consumer Discretionary and Financials stocks detracted from relative performance. Sector weightings, the result of bottom-up stock selection decisions, were also negative. In the Consumer Discretionary sector, shares of satellite radio providers XM Satellite and Sirius declined on concerns of rising subscriber acquisition costs. We have eliminated our positions in the stocks. Among Financials stocks, a position in online real estate information company Move Inc. fell in concert with a softening housing market. Other significant detractors from relative and absolute performance included Marvell Technology and St. Jude Medical. Weakness in the disk drive industry led to an earnings miss at Marvell, while St. Jude Medical fell on overall weakness in the implantable cardiac defibrillator market. We eliminated our positions in both stocks. WHAT IS THE OUTLOOK? We maintain our expectations for stable, albeit moderate global growth over the coming years. We expect a slowdown in economic activity and easing inflationary pressures that should keep the global central banks on "hold" over the next year. We continue to focus our efforts on picking stocks one-at-a-time based on detailed fundamental research. Currently our largest exposure is to Technology, followed by Health Care and Industrials. We would note that we have reduced our exposure to the Energy sector, reflecting our recognition that our bullish energy view has become more consensus. Our lowest weights are in the Consumer Staples, Utilities, and Telecommunication Services sectors. DIVERSIFICATION BY INDUSTRY as of October 31, 2006
PERCENTAGE OF INDUSTRY NET ASSETS ------------------------------------------------------------------- Basic Materials 6.8% ------------------------------------------------------------------- Capital Goods 3.0 ------------------------------------------------------------------- Consumer Cyclical 10.1 ------------------------------------------------------------------- Consumer Staples 0.9 ------------------------------------------------------------------- Energy 2.1 ------------------------------------------------------------------- Finance 9.8 ------------------------------------------------------------------- Health Care 16.4 ------------------------------------------------------------------- Services 11.8 ------------------------------------------------------------------- Technology 32.4 ------------------------------------------------------------------- Transportation 1.1 ------------------------------------------------------------------- Utilities 3.7 ------------------------------------------------------------------- Short-Term Investments 10.3 ------------------------------------------------------------------- Other Assets & Liabilities -8.4 ------------------------------------------------------------------- TOTAL 100.0% -------------------------------------------------------------------
40 The Hartford High Yield Fund (subadvised by Hartford Investment Management Company) INVESTMENT OBJECTIVE -- SEEKS HIGH CURRENT INCOME. GROWTH OF CAPITAL IS A SECONDARY OBJECTIVE. PERFORMANCE OVERVIEW(2) 9/30/98 - 10/31/06 Growth of a $10,000 investment in Class A which includes Sales Charge (LINE GRAPH)
LEHMAN BROTHERS HIGH YIELD HIGH YIELD FUND CORPORATE INDEX --------------- -------------------------- 9/30/98 9550 10000 10/98 9529 9795 9856 10202 9868 10213 10016 10364 10007 10303 10137 10402 10326 10603 10123 10460 10113 10437 10102 10479 10026 10363 9986 10289 10/99 10040 10221 10168 10341 10211 10457 10120 10412 10106 10431 10011 10212 10050 10229 9914 10123 10173 10330 10279 10408 10423 10479 10359 10388 10/00 10175 10056 9922 9657 10275 9844 10958 10581 11015 10722 10765 10469 10624 10339 10689 10525 10340 10230 10498 10381 10587 10503 9962 9797 10/01 10359 10039 10688 10406 10572 10363 10465 10436 10110 10290 10216 10538 10315 10706 10210 10647 9643 9862 9195 9431 9310 9700 9078 9573 10/02 9099 9489 9663 10077 9762 10218 10008 10558 10200 10688 10380 10995 10924 11647 11106 11768 11336 12106 11058 11973 11158 12111 11504 12442 10/03 11710 12693 11862 12886 12133 13177 12268 13429 12236 13395 12273 13486 12100 13394 11868 13168 12017 13356 12169 13538 12384 13803 12555 14004 10/04 12794 14257 12856 14429 12979 14644 12918 14625 13139 14840 12695 14408 12589 14268 12822 14521 12989 14806 13157 15065 13175 15094 13029 14943 10/05 12917 14839 13005 14916 13111 15045 13251 15285 13358 15387 13448 15479 13538 15574 13529 15572 13455 15517 13576 15669 13805 15923 13944 16149 10/06 14153 16369
--- HIGH YIELD FUND --- LEHMAN BROTHERS HIGH YIELD CORPORATE INDEX $9,550 starting value $10,000 starting value $14,153 ending value $16,369 ending value
LEHMAN BROTHERS HIGH YIELD CORPORATE 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. You cannot invest directly in an index. 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 the investment adviser, without which performance would have been lower. For information on current expense waivers/reimbursements, please see the prospectus. AVERAGE ANNUAL TOTAL RETURNS(1) (as of 10/31/06)
INCEPTION SINCE DATE 1 YEAR 5 YEAR INCEPTION ------------------------------------------------------------ High Yield A# 9/30/1998 9.57% 6.44% 4.98% ------------------------------------------------------------ High Yield A## 9/30/1998 4.64% 5.46% 4.39% ------------------------------------------------------------ High Yield B# 9/30/1998 8.90% 5.69% NA* ------------------------------------------------------------ High Yield B## 9/30/1998 3.90% 5.39% NA* ------------------------------------------------------------ High Yield C# 9/30/1998 8.84% 5.76% 4.28% ------------------------------------------------------------ High Yield C## 9/30/1998 7.84% 5.76% 4.28% ------------------------------------------------------------ High Yield Y# 9/30/1998 10.11% 6.86% 5.42% ------------------------------------------------------------
# Without sales charge ## With sales charge NA Not Applicable. * Inception returns are not applicable for Class B because after 8 years Class B converts to Class A. PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS. (1) The initial investment in Class A shares reflects the maximum sales charge and Classes B and C reflect CDSC. (2) Growth of a $10,000 investment in Classes B, C and Y shares will vary from results seen above due to differences in the expenses charged to these share classes. PORTFOLIO MANAGERS MARK NILAND, CFA Executive Vice President NASRI TOUTOUNGI Managing Director JAMES SERHANT Vice President -------------------------------------------------------------------------------- HOW DID THE FUND PERFORM? The Hartford High Yield Fund (Class A) gained 9.57%, before sales charges, for the 12 month period ended October 31, 2006, trailing its benchmark, the Lehman Brothers High Yield Corporate Index, which returned 10.31%. However, the Fund outpaced the 9.18% return of the Lipper High Current Yield Funds peer group, a group of funds with investment strategies similar to those of the Fund. WHY DID THE FUND PERFORM THIS WAY? The Fund's fiscal year, which ended October 31, 2006, began in a period of rising interest rates. Historically high energy and commodity prices, a boom in the housing market, and a strengthening economy led to concerns about rising inflation. To keep inflation in check, the Federal Reserve (the Fed) continued its cycle of monetary tightening (i.e. raising interest rates) that began in the summer of 2004. By June of 2006, the Fed had raised its Federal Funds Target Rate (Fed Funds Rate) 17 consecutive times, leaving the Fed Funds rate at 5.25%. In response to the Fed's tightening, short- and intermediate-term bond yields rose through the first half of 2006. Thus, as interest rates rose, the principal value of these bonds declined in response. In contrast, long-term bond yields did not rise as substantially due to overseas demand and expectations that the Fed could keep inflation low over the long run. The result was a yield curve that remained flat or even inverted through most of the fiscal year. However, by August of 2006, the Fed became concerned that economic growth was slowing, in part due to the retreating housing market. As such, the Fed found itself in a conundrum as to whether it should continue raising interest rates to restrain inflation, or to pause in the tightening cycle to assess prospects for further economic growth. Since changes in the rate of inflation often lag changes in economic conditions, the Fed left rates unchanged at its two most recent meetings while it waited for more data before taking action. Sensing that the Fed would continue easing monetary policy, the bond markets rallied in the last months of the fiscal year. While stocks, and in particular foreign and small cap stocks, performed strongly for the year, fixed income securities provided more modest gains. Fortunately, the bond rally over the last few months offset the negative impact of rising interest rates earlier in the year, allowing the major bond sectors to finish with positive returns for the period. During much of the year, fixed income investors were unable to achieve higher levels of yield by going out to a longer duration on the yield curve. Thus, many investors allocated to lower quality and foreign issues as they sought out higher yields. Accordingly, the traditionally "riskier" high yield and emerging markets bonds were among the strongest performers for the year. Within the high yield sector, the lowest quality and highest risk bonds outperformed those with higher credit ratings. 41 -------------------------------------------------------------------------------- During the twelve months ending October 31, 2006, security selection within the Fund proved to be the primary driver of performance. The strongest selection occurred within the Electric, Health Care and Chemicals sectors. However, for most of the fiscal year the Fund's performance was constrained by its 10% limit on CCC-rated securities (which we fully utilized) versus the fund's benchmark which carries a 15% weighting. For the year, the lower end of the credit spectrum (rated "CCC") outperformed the middle (rated "B") and highest (rated "BB") tiers of the below investment grade credit spectrum. Late in the second quarter of 2006, the Fund's investment guidelines were expanded to allow up to a maximum of 25% in securities rated CCC. At this point in time, we do not anticipate fully utilizing this larger "bucket", as we will continue to treat the CCC-rated sector very selectively and opportunistically. At the sector level, allocations detracted somewhat from performance, primarily due to the underweight to the Automotive sector. Mainly due to last year's downgrade of Ford and General Motors (GM) to below investment grade ratings, the Automotive Sector now represents approximately 13% of the Lehman High Yield Index. While we have generally been bullish (positive) on the prospects for these issuers, prudent portfolio management principles and the asymmetry of fixed income returns dictated a less-than-benchmark exposure of roughly 10%. Nevertheless, this weighting within our portfolio is larger than the bulk of its peers. During the year this positioning benefited the fund's peer relative performance, as heightened speculation surrounding GM's sale of its most profitable subsidiary, General Motors Acceptance Corp. (GMAC), and GM's progress in addressing its pension and benefit obligations with its unions led to a rally in the automotive sector. While the portfolio outperformed the Index on a gross (before expenses) basis, it did not outperform by a great enough margin to offset the costs associated with operating the Fund. WHAT IS THE OUTLOOK? The recent rally in bonds has priced in an environment of economic weakness that is not entirely consistent with our view. Declines in interest rates and gasoline prices, coupled with a healthy employment picture and gains in the stock market, should be supportive of continued consumer spending. While housing remains a wild card for the U.S. economy, our view is that the Fed is still chiefly concerned with inflation and accordingly, policy decisions will favor price stability as long as economic growth does not decline dramatically. We continue to position the portfolio with a slight bias towards higher interest rates. With the Fed's rate hike campaign on hold and slower, but positive, growth ahead, the environment for spread sectors (those that offer yield premiums over Treasuries) is favorable. Strong earnings, a benign inflation and interest rate environment, and attractive yields all suggest that the High Yield sector continues to offer value. In the near term, our chief concern is the technical backdrop, in that the high yield market will be asked to absorb a significant spike of supply (approximately $25 billion) before year end. This dynamic has the potential to cause secondary market values to soften as new issues will most likely have to come at some price concession. However, we are looking forward to the upswing in the primary market as an opportunity to participate in new issues with attractive pricing and covenant protection, and we would view any material decline in the secondary market as a buying opportunity. DISTRIBUTION BY CREDIT QUALITY as of October 31, 2006
PERCENTAGE OF LONG-TERM RATING HOLDINGS -------------------------------------------------------------------- BBB 0.7% -------------------------------------------------------------------- BB 24.3 -------------------------------------------------------------------- B 62.3 -------------------------------------------------------------------- CCC 11.9 -------------------------------------------------------------------- NR 0.8 -------------------------------------------------------------------- TOTAL 100.0% --------------------------------------------------------------------
DIVERSIFICATION BY INDUSTRY as of October 31, 2006
PERCENTAGE OF INDUSTRY NET ASSETS ------------------------------------------------------------------- Basic Materials 13.2% ------------------------------------------------------------------- Capital Goods 1.6 ------------------------------------------------------------------- Consumer Cyclical 13.8 ------------------------------------------------------------------- Consumer Staples 2.5 ------------------------------------------------------------------- Energy 3.5 ------------------------------------------------------------------- Finance 14.2 ------------------------------------------------------------------- Health Care 4.9 ------------------------------------------------------------------- Services 15.2 ------------------------------------------------------------------- Technology 20.4 ------------------------------------------------------------------- Transportation 2.7 ------------------------------------------------------------------- Utilities 7.2 ------------------------------------------------------------------- Short-Term Investments 20.8 ------------------------------------------------------------------- Other Assets & Liabilities -20.0 ------------------------------------------------------------------- TOTAL 100.0% -------------------------------------------------------------------
42 The Hartford Income Allocation Fund (advised by Hartford Investment Financial Services, LLC) INVESTMENT OBJECTIVE -- SEEKS CURRENT INCOME AND, AS A SECONDARY OBJECTIVE, CAPITAL PRESERVATION. PERFORMANCE OVERVIEW(3) 5/28/04 - 10/31/06 Growth of a $10,000 investment in Class A which includes Sales Charge (LINE GRAPH)
LEHMAN BROTHERS U.S. AGGREGATE BOND INCOME ALLOCATION FUND INDEX ---------------------- ----------------------------------- 5/28/04 9550 10000 9550 10000 9560 10057 7/04 9602 10156 9683 10350 9713 10378 10/04 9781 10465 9765 10382 9832 10477 1/05 9836 10543 9838 10481 9764 10427 4/05 9820 10568 9888 10682 9939 10741 7/05 9910 10643 9992 10779 9937 10668 10/05 9880 10584 9915 10631 9989 10732 1/06 10012 10732 10042 10768 9990 10662 4/06 10001 10643 10005 10631 10016 10654 7/06 10108 10798 10218 10963 10274 11060 10/06 10339 11133
--- INCOME ALLOCATION FUND --- LEHMAN BROTHERS U.S. AGGREGATE $9,550 starting value BOND INDEX $10,339 ending value $10,000 starting value $11,133 ending value
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 Index and Commercial Mortgage-Backed Securities Index. You cannot invest directly in an index. 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 the investment adviser, without which performance would have been lower. For information on current expense waivers/reimbursements, please see the prospectus. AVERAGE ANNUAL TOTAL RETURNS(1,2) (as of 10/31/06)
INCEPTION SINCE DATE 1 YEAR INCEPTION ---------------------------------------------------------- Income Allocation A#................. 5/28/2004 4.64% 3.32% ---------------------------------------------------------- Income Allocation A##................ 5/28/2004 -0.06% 1.38% ---------------------------------------------------------- Income Allocation B#................. 5/28/2004 3.91% 2.58% ---------------------------------------------------------- Income Allocation B##................ 5/28/2004 -1.09% 1.40% ---------------------------------------------------------- Income Allocation C#................. 5/28/2004 3.91% 2.58% ---------------------------------------------------------- Income Allocation C##................ 5/28/2004 2.91% 2.58% ---------------------------------------------------------- Income Allocation I#................. 5/28/2004 4.63% 3.32% ----------------------------------------------------------
# Without sales charge ## With sales charge PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS. (1) Class I shares commenced operations on 8/31/06. Performance prior to 8/31/06 reflects Class A performance. (2) The initial investment in Class A shares reflects the maximum sales charge and Classes B and C reflect CDSC. (3) Growth of a $10,000 investment in Classes B, C and I shares will vary from results seen above due to differences in the expenses charged to these share classes. PORTFOLIO MANAGERS WILLIAM DAVISON, CFA Senior Vice President CHRISTOPHER HANLON, CFA Senior Vice President HUGH WHELAN, CFA Executive Vice President -------------------------------------------------------------------------------- HOW DID THE FUND PERFORM? The Hartford Income Allocation Fund (Class A) gained 4.64%, before sales charges, for the year ended October, 2006, versus the returns of 4.62% return for the Lipper Intermediate Investment Grade Funds peer group and 5.19% for the Lehman Brothers U.S. Aggregate Bond Index. WHY DID THE FUND PERFORM THIS WAY? The Fund's fiscal year, which ended October 31, 2006, began in a period of rising interest rates. Historically high energy and commodity prices, a boom in the housing market, and a strengthening economy led to concerns about rising inflation. To keep inflation in check, the Federal Reserve (the Fed) continued its cycle of monetary tightening that began in the summer of 2004. By June of 2006, the Fed had raised its Federal Funds Target Rate (Fed Funds Rate) 17 consecutive times, leaving the Fed Funds Rate at 5.25%. In response to the Fed's tightening, short- and intermediate-term bond yields rose through the first half of 2006. Thus, as interest rates rose, the principal value of these short- and intermediate-term bonds declined in response. In contrast, long-term bond yields did not rise as substantially due to overseas demand and expectations that the Fed could keep inflation low over the long run. The result was a yield curve that remained flat or even inverted (i.e. bonds with longer term maturities having a lower interest rate than bonds with shorter maturities) through most of the fiscal year. However, by August of 2006, the Fed became concerned that economic growth was slowing, in part due to the retreating housing market. As such, the Fed found itself in a conundrum as to whether it should continue raising interest rates to restrain inflation, or to pause in the tightening cycle to assess prospects for further economic growth. Since changes in the rate of inflation often lag changes in economic conditions, the Fed left rates unchanged at its two most recent meetings while it waited for more data before taking action. Sensing that the Fed would continue easing monetary policy, the bond markets rallied in the last months of the fiscal year. While stocks, and in particular foreign and small cap stocks, performed strongly for the year, fixed income securities provided more modest gains. Fortunately, the bond rally over the last few months offset the negative impact of rising interest rates earlier in the year, allowing the major bond sectors to finish with positive returns for the period. During much of the year, fixed income investors were unable to achieve higher levels of yield by going out longer on the yield curve (i.e. purchasing bonds with a longer maturity date). Thus, many investors shifted to lower quality and foreign issues as they sought greater yield. During the period, the 43 -------------------------------------------------------------------------------- traditionally "riskier" high yield and emerging markets bonds were among the strongest performers for the year. Based upon the Fund's design, the Fund's fixed income component typically is less sensitive to changes in interest rates than the Lehman benchmark. Additionally, the Fund's fixed income component was more defensive than normal this year, since the underlying fund managers generally assumed the bond markets were underestimating the potential for higher inflation. As interest rates declined during most of the fiscal year, the Fund's fixed income component delivered positive performance. However, the Fund's defensive stance did not allow it to participate fully in the bond rally that occurred late in the period. Thus, earlier gains were negatively offset. The Fund did, however, benefit from the out-of-index exposure to "spread" sectors and higher yielding securities. These sectors pay greater yields than Treasuries of similar maturities to compensate for their greater risks. In periods when investors are optimistic, such as last year, these spreads or risk premiums decline, causing their bond values to rise. The underlying managers typically have exposure to spread sectors since they can offer greater yields and at times may offer compelling values. Ultimately, due to the relatively conservative structure of the Fund, the benefits of the out-of-index strategies could not be fully exploited, thereby preventing the Fund from outperforming its benchmark. WHAT IS THE OUTLOOK? The recent rally in fixed-rate bonds has resulted in bond prices that reflect an environment of economic weakness that is not consistent with our view of the economy. Declines in interest rates and gasoline prices, coupled with a decent employment picture and gains in the stock market, should be supportive of continued consumer spending. While housing remains a wild card for the U.S. economy, our view is that the Federal Reserve is still concerned with inflation and that policy decisions will favor price stability as long as economic growth does not decline dramatically. In the coming months we will be closely watching the economy to determine the impact of a slower housing market on the average U.S. consumer and what implications that has for the economy going forward. COMPOSITION BY UNDERLYING FUND as of October 31, 2006
PERCENTAGE OF FUND NAME NET ASSETS ------------------------------------------------------------------- Hartford Floating Rate Fund, Class Y 7.8% ------------------------------------------------------------------- Hartford High Yield Fund, Class Y 12.0 ------------------------------------------------------------------- Hartford Income Fund, Class Y 8.5 ------------------------------------------------------------------- Hartford Inflation Plus Fund, Class Y 16.3 ------------------------------------------------------------------- Hartford Money Market Fund, Class Y 7.1 ------------------------------------------------------------------- Hartford Short Duration Fund, Class Y 23.4 ------------------------------------------------------------------- Hartford Total Return Bond Fund, Class Y 24.7 ------------------------------------------------------------------- Hartford U.S. Government Securities Fund, Class Y 0.1 ------------------------------------------------------------------- Other Assets & Liabilities 0.1 ------------------------------------------------------------------- TOTAL 100.0% -------------------------------------------------------------------
44 The Hartford Income Fund (subadvised by Hartford Investment Management Company) INVESTMENT OBJECTIVE -- SEEKS TO PROVIDE A HIGH LEVEL OF CURRENT INCOME. CAPITAL APPRECIATION IS A SECONDARY OBJECTIVE. PERFORMANCE OVERVIEW(2) 10/31/02 - 10/31/06 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 9662 10207 9820 10215 9883 10357 10045 10349 10099 10434 10314 10629 10459 10608 10540 10251 10193 10319 10273 10592 10563 10493 10/03 10580 10518 10637 10625 10804 10711 10895 10827 10995 10908 11080 10624 10788 10582 10691 10641 10769 10747 10897 10952 11108 10982 11170 11074 10/04 11305 10985 11242 11086 11356 11156 11376 11090 11373 11033 11209 11183 11289 11304 11414 11365 11497 11262 11460 11406 11597 11289 11490 11199 10/05 11384 11249 11450 11356 11550 11356 11601 11394 11659 11282 11578 11262 11590 11250 11558 11274 11538 11426 11682 11601 11874 11703 11983 11780 10/06 12095 11780
--- INCOME FUND --- LEHMAN BROTHERS U.S. AGGREGATE BOND INDEX $9,550 starting value $10,000 starting value $12,095 ending value $11,780 ending value
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. You cannot invest directly in an index. 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 the investment adviser, without which performance would have been lower. For information on current expense waivers/reimbursements, please see the prospectus. AVERAGE ANNUAL TOTAL RETURNS(1) (as of 10/31/06)
INCEPTION SINCE DATE 1 YEAR INCEPTION ------------------------------------------------ Income A# 10/31/2002 6.24% 6.08% ------------------------------------------------ Income A## 10/31/2002 1.46% 4.87% ------------------------------------------------ Income B# 10/31/2002 5.45% 5.31% ------------------------------------------------ Income B## 10/31/2002 0.45% 4.67% ------------------------------------------------ Income C# 10/31/2002 5.44% 5.36% ------------------------------------------------ Income C## 10/31/2002 4.44% 5.36% ------------------------------------------------ Income Y# 11/28/2003 6.41% 4.74% ------------------------------------------------
# Without sales charge ## With sales charge PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS. (1) The initial investment in Class A shares reflects the maximum sales charge and Classes B and C reflect CDSC. (2) Growth of a $10,000 investment in Classes B, C and Y shares will vary from results seen above due to differences in the expenses charged to these share classes. PORTFOLIO MANAGERS WILLIAM DAVISON, CFA Managing Director JEFFREY MACDONALD, CFA Vice President CHARLES MOON Executive Vice President -------------------------------------------------------------------------------- HOW DID THE FUND PERFORM? The Hartford Income Fund (Class A) gained 6.24%, before sales charges, for the year ended October, 2006, outperforming its benchmark, the Lehman Brothers U.S. Aggregate Bond Index, which returned 5.19%. Similarly, the Fund outpaced the 5.33% return of the Lipper Corporate Debt Funds BBB-Rated Funds peer group, a group of funds with investment strategies similar to those of the Fund. WHY DID THE FUND PERFORM THIS WAY? The Fund's fiscal year, which ended October 31, 2006, began with continued flattening of the U.S. Treasury yield curve. Historically high energy and commodity prices, a boom in the housing market, and a strengthening economy led to concerns about rising inflation. To keep inflation in check, the Federal Reserve (the Fed) continued its cycle of monetary tightening (i.e. raising interest rates) that began in the summer of 2004. By June of 2006, the Fed had raised its Federal Funds Target Rate (Fed Funds Rate) 17 consecutive times, leaving the Fed Funds rate at 5.25%. In response to the Fed's tightening, short- and intermediate-term bond yields rose through the first half of 2006. In contrast, long-term bond yields remained relatively stable due, in large part, to overseas demand and expectations that the Fed could keep inflation low over the long run. By the August 8th meeting of the Federal Open Market Committee (FOMC), the economic outlook at the Fed suggested a slowing in economic growth and a subsequent moderation in inflation pressures. The Fed Funds Rate was left at 5.25%, unchanged for the first time since May 2004. Rates across the yield curve fell in the wake of the FOMC pause as the market began to price in an environment of slow economic growth and a series of Fed Funds Rate cuts that would likely follow. While stocks, and in particular foreign and small cap stocks, performed strongly for the year, fixed income securities provided more modest gains. Fortunately, the bond rally over the last few months offset the negative impact of rising interest rates earlier in the year, allowing the major bond sectors to finish with positive returns for the period. During much of the year, fixed income investors were unable to achieve higher levels of yield by going out to longer durations on the yield curve. Thus, many investors added lower quality and foreign issues as they sought greater yield. During the period, the traditionally "riskier" high yield and emerging markets bonds were among the strongest performers for the year. The greatest driver of the Fund's performance relative to the benchmark was exposure to sectors outside the Fund's benchmark -- specifically High Yield and Emerging Markets Debt. 45 -------------------------------------------------------------------------------- These sectors were the strongest performers for the period and benefited from the strength of global economies, the outlook for stable-to-improving credit quality, and from the continuing search for yield by investors. With a flat yield curve for much of the 12 month period, investors could not obtain meaningful increases in yields simply by extending the maturities of their portfolios. As such, Investors were willing to accept the risk associated with the higher yields in credit-sensitive sectors such as High Yield and Emerging Markets Debt, at least in part because of their general confidence in the economy and the positive prospects for most of the issuers in these sectors. The fund's overweight to High Yield and Emerging Markets Debt was funded with U.S. Treasuries. The major detractor from performance was the Fund's underweight to the Mortgage-Backed Securities sector. Although rising interest rates detracted from the Fund's performance on an absolute return basis, the Fund's shorter-than-benchmark duration added to performance on a relative basis. In addition to benefiting from sector allocation, the Fund also benefited from selection at the individual security level. While the strongest issue selection came from within the investment grade corporate sector, selection within the Mortgage-Backed Securities and Treasury sectors also added value. Consistent with the Fund's primary objective of high current income, the Fund maintained a higher-than-median 30-Day SEC Yield relative to the Lipper BBB Corporate Bond Universe for the months of November 2005 through October 2006, placing in the 1st quartile in nine of those months and continuing our record of consistently generating above-average SEC yields while maintaining an A3 credit rating. WHAT IS THE OUTLOOK? The recent rally in bonds has priced into bond market values an environment of economic weakness that is not consistent with our view. Declines in interest rates and gasoline prices, coupled with a decent employment picture and gains in the stock market, should support continued spending. While housing remains a wild card for the U.S. economy, we believe that the Fed is still concerned with inflation and that policy decisions will favor price stability as long as economic growth does not decline dramatically. We continue to position the portfolio with a slight bias towards higher interest rates. With the Fed's rate hike campaign on hold and slower, yet still positive growth ahead, the environment for spread sectors (those that offer yield premiums over Treasuries) is favorable. Strong earnings, a benign inflation and interest rate environment and attractive yields all suggest the High Yield sector continues to offer value. We also believe that opportunities continue to exist in the Non-Dollar and Emerging Markets Debt sectors. In the coming months we will be closely watching the economy to determine the impact of a slower housing market on the average U.S. consumer and what implications for the economy result. DISTRIBUTION BY CREDIT QUALITY as of October 31, 2006
PERCENTAGE OF LONG-TERM RATING HOLDINGS ------------------------------------------------------------------- AAA 36.6% ------------------------------------------------------------------- AA 2.2 ------------------------------------------------------------------- A 10.7 ------------------------------------------------------------------- BBB 13.8 ------------------------------------------------------------------- BB 14.4 ------------------------------------------------------------------- B 18.5 ------------------------------------------------------------------- CCC 3.0 ------------------------------------------------------------------- NR 0.8 ------------------------------------------------------------------- TOTAL 100.0% -------------------------------------------------------------------
DIVERSIFICATION BY INDUSTRY as of October 31, 2006
PERCENTAGE OF INDUSTRY NET ASSETS ------------------------------------------------------------------- Basic Materials 4.6% ------------------------------------------------------------------- Capital Goods 1.0 ------------------------------------------------------------------- Consumer Cyclical 4.8 ------------------------------------------------------------------- Consumer Staples 1.4 ------------------------------------------------------------------- Energy 2.8 ------------------------------------------------------------------- Finance 27.7 ------------------------------------------------------------------- Foreign Governments 1.1 ------------------------------------------------------------------- General Obligations 0.1 ------------------------------------------------------------------- Health Care 2.6 ------------------------------------------------------------------- Services 10.9 ------------------------------------------------------------------- Technology 8.1 ------------------------------------------------------------------- Transportation 0.7 ------------------------------------------------------------------- U.S. Government Agencies 26.3 ------------------------------------------------------------------- U.S. Government Securities 2.8 ------------------------------------------------------------------- Utilities 3.6 ------------------------------------------------------------------- Short-Term Investments 2.9 ------------------------------------------------------------------- Other Assets & Liabilities -1.4 ------------------------------------------------------------------- TOTAL 100.0% -------------------------------------------------------------------
46 The Hartford Inflation Plus Fund (subadvised by Hartford Investment Management Company) INVESTMENT OBJECTIVE -- SEEKS A TOTAL RETURN THAT EXCEEDS THE RATE OF INFLATION OVER AN ECONOMIC CYCLE. PERFORMANCE OVERVIEW(3) 10/31/02 - 10/31/06 Growth of a $10,000 investment in Class A which includes Sales Charge (LINE GRAPH)
LEHMAN BROTHERS U.S. TREASURY INFLATION PLUS FUND INFLATION-PROTECTED SECURITIES INDEX ------------------- ------------------------------------ 10/31/02 9550 10000 9528 9993 9842 10329 9889 10407 10245 10796 10082 10621 10037 10594 10507 11097 10407 10983 9921 10476 10072 10664 10390 11017 10/03 10412 11077 10411 11084 10500 11197 10609 11325 10842 11586 11003 11772 10488 11201 10628 11403 10621 11408 10707 11514 10976 11823 10988 11846 10/04 11077 11965 11044 11936 11228 12144 11226 12145 11173 12093 11173 12104 11367 12335 11446 12420 11469 12473 11248 12211 11487 12493 11456 12475 10/05 11310 12316 11316 12337 11442 12489 11441 12488 11429 12482 11190 12208 11164 12198 11200 12234 11211 12268 11377 12468 11570 12684 11581 12705 10/06 11569 12683
--- INFLATION PLUS FUND --- LEHMAN BROTHERS U.S. TREASURY $9,550 starting value INFLATION-PROTECTED SECURITIES INDEX $11,569 ending value $10,000 starting value $12,683 ending value
LEHMAN BROTHERS U.S. TREASURY INFLATION-PROTECTED SECURITIES 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. You cannot invest directly in an index. 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 the investment adviser, without which performance would have been lower. For information on current expense waivers/reimbursements, please see the prospectus. AVERAGE ANNUAL TOTAL RETURNS(1,2) (as of 10/31/06)
INCEPTION SINCE DATE 1 YEAR INCEPTION -------------------------------------------------------- Inflation Plus A# 10/31/2002 2.29% 4.91% -------------------------------------------------------- Inflation Plus A## 10/31/2002 -2.32% 3.71% -------------------------------------------------------- Inflation Plus B# 10/31/2002 1.51% 4.18% -------------------------------------------------------- Inflation Plus B## 10/31/2002 -3.38% 3.51% -------------------------------------------------------- Inflation Plus C# 10/31/2002 1.51% 4.16% -------------------------------------------------------- Inflation Plus C## 10/31/2002 0.51% 4.16% -------------------------------------------------------- Inflation Plus I# 11/28/2003 2.34% 4.92% -------------------------------------------------------- Inflation Plus Y# 11/28/2003 2.58% 4.00% --------------------------------------------------------
# Without sales charge ## With sales charge PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS. (1) Class I shares commenced operations on 8/31/06. Performance prior to 8/31/06 reflects Class A performance. (2) The initial investment in Class A shares reflects the maximum sales charge and Classes B and C reflect CDSC. (3) Growth of a $10,000 investment in Classes B, C, I and Y shares will vary from results seen above due to differences in the expenses charged to these share classes. PORTFOLIO MANAGERS WILLIAM DAVISON, CFA Managing Director TIMOTHY WILHIDE Senior Vice President -------------------------------------------------------------------------------- HOW DID THE FUND PERFORM? The Hartford Inflation Plus Fund (Class A), before sales charges, gained 2.29% for the year ended October 31, 2006, trailing its benchmark, the Lehman U.S. Treasury Inflation-Protected Securities Index, which returned 2.98%. The Fund also lagged the 2.48% return of the Lipper U.S. Treasury Inflation-Protected Funds peer group, a group of funds with investment strategies similar to those of the Fund. WHY DID THE FUND PERFORM THIS WAY? The Fund's fiscal year, which ended October 31, 2006, began in a period of rising interest rates. Historically high energy and commodity prices, a boom in the housing market, and a strengthening economy led to concerns about rising inflation. To keep inflation in check, the Federal Reserve (the Fed) continued its cycle of monetary tightening (i.e. raising interest rates) that began in the summer of 2004. By June of 2006, the Fed had raised its Federal Funds Target Rate (Fed Funds Rate) 17 consecutive times, leaving the Fed Funds rate at 5.25%. In response to the Fed's tightening, short- and intermediate-term bond yields rose through the first half of 2006. Thus, as interest rates rose, the principal value of these bonds declined in response. In contrast, long-term bond yields did not rise as substantially due to overseas demand and expectations that the Fed could keep inflation low over the long run. The result was a yield curve that remained flat or even inverted through most of the fiscal year. However, by August of 2006, the Fed became concerned that economic growth was slowing, in part due to the retreating housing market. As such, the Fed found itself in a conundrum as to whether it should continue raising interest rates to restrain inflation, or to pause in the tightening cycle to assess prospects for further economic growth. Since changes in the rate of inflation often lag changes in economic conditions, the Fed left rates unchanged at its two most recent meetings while it waited for more data before taking action. Sensing that the Fed's pause would be followed by an easing, the bond markets rallied in the last months of the fiscal year. While stocks, and in particular foreign and small cap stocks, performed strongly for the year, fixed income securities provided more modest gains. It was a particularly challenging year for U.S. Treasury Inflation-Protected Securities (TIPS), which are impacted by the market's expectations about future inflation. During the past twelve months, energy, commodities and housing prices each soared to historically high levels, only to partially retreat in the latter half of the period. Also during the period, the Fed changed 47 -------------------------------------------------------------------------------- from its policy of monetary tightening to a "data dependent" outlook. Further complicating the market's ability to gauge future inflation was the change in leadership at the Federal Reserve. Overall, through all of these events, the bond markets maintained an outlook for low, long-term inflation. These conditions were therefore not beneficial for TIPS, which for the year lagged their nominal Treasury counterparts. The greatest impact upon the Fund's performance was its sensitivity to changes in interest rates. Late in 2005, the Fund's duration was slightly long to the benchmark, having underweighted TIPS in the 1 to 5 year maturities in response to expectation that the real rate (nominal rate minus inflation) curve would continue to flatten. However, early in the new year, the Fund shortened its duration as the first quarter economic data proved much stronger than expected, raising the odds of more aggressive Fed tightening through the first half of 2006. By the last few months of the fiscal year, though, it became apparent that the economy might be slowing and the Fed might ease its monetary policy. The Fund consequently lengthened its duration to be in-line with the benchmark, and was therefore able to participate fully in the bond rally at the end of the twelve month period. The Fund's duration and yield curve management were both positive contributors to relative return. In seeking higher yields and greater diversification, the Fund has made small allocations outside the TIPS sector. For the fiscal year, in aggregate these allocations detracted slightly from relative return. In particular, the Fund's defensive positions in nominal Treasuries and hedging actions detracted slightly from performance. In September, the Fund made its first allocation into secured Bank Loans, an asset class which historically outperforms inflation. Even though they were in the portfolio for less than two months, the allocation to bank loans was a meaningful contributor to relative return. WHAT IS THE OUTLOOK? The recent rally in fixed-rate bonds has priced into bond market values an environment of economic weakness that is not consistent with our view. Declines in interest rates and gasoline prices, coupled with a decent employment picture and gains in the stock market, should be supportive of continued spending. While housing remains a wild card for the U.S. economy, our view is that the Federal Reserve is still concerned with inflation and that policy decisions will favor price stability as long as economic growth does not decline dramatically. In the coming months we will be closely watching the economy to determine the impact of a slower housing market on the average U.S. consumer and what implications for the economy result. DIVERSIFICATION BY INDUSTRY as of October 31, 2006
PERCENTAGE OF INDUSTRY NET ASSETS ------------------------------------------------------------------- Basic Materials 0.8% ------------------------------------------------------------------- Consumer Cyclical 1.2 ------------------------------------------------------------------- Finance 4.3 ------------------------------------------------------------------- Health Care 1.6 ------------------------------------------------------------------- Services 0.9 ------------------------------------------------------------------- Technology 1.2 ------------------------------------------------------------------- U.S. Government Securities 88.9 ------------------------------------------------------------------- Utilities 1.2 ------------------------------------------------------------------- Short-Term Investments 1.2 ------------------------------------------------------------------- Other Assets & Liabilities -1.3 ------------------------------------------------------------------- TOTAL 100.0% -------------------------------------------------------------------
DISTRIBUTION BY CREDIT QUALITY as of October 31, 2006
PERCENTAGE OF LONG-TERM RATING HOLDINGS ------------------------------------------------------------------- AAA 91.0% ------------------------------------------------------------------- AA 0.7 ------------------------------------------------------------------- BBB 0.6 ------------------------------------------------------------------- BB 7.4 ------------------------------------------------------------------- B 0.3 ------------------------------------------------------------------- TOTAL 100.0% -------------------------------------------------------------------
48 The Hartford International Capital Appreciation Fund (subadvised by Wellington Management Company, LLP) INVESTMENT OBJECTIVE -- SEEKS CAPITAL APPRECIATION. PERFORMANCE OVERVIEW(3) 4/30/01 - 10/31/06 Growth of a $10,000 investment in Class A which includes Sales Charge (LINE GRAPH)
INTERNATIONAL CAP APP FUND MSCI EAFE INDEX MSCI EAFE GROWTH INDEX -------------------------- --------------- ---------------------- 4/30/01 9450 10000 10000 8836 9655 9601 8411 9264 9137 8297 9096 8915 7825 8867 8509 6861 7971 7706 10/01 7201 8175 8013 7815 8477 8425 8023 8528 8474 7702 8075 8017 7834 8132 8125 8222 8616 8477 8080 8638 8488 8146 8755 8512 7768 8410 8295 7002 7580 7411 6880 7565 7355 6067 6755 6716 10/02 6549 7118 7097 7154 7442 7306 6517 7192 7138 6574 6893 6785 6423 6735 6639 6234 6608 6575 6990 7263 7151 7605 7710 7527 7794 7901 7661 8031 8093 7762 8381 8290 7905 8400 8547 8174 10/03 9100 9080 8645 9207 9284 8848 9711 10009 9457 10082 10152 9642 10548 10388 9826 10796 10450 9837 10282 10223 9600 10463 10254 9583 10796 10496 9714 10035 10157 9320 10082 10204 9331 10586 10472 9563 10/04 11024 10830 9883 11642 11573 10567 11975 12081 11015 11604 11860 10762 11480 12375 11195 11052 12069 10925 10948 11799 10723 11033 11817 10764 11090 11979 10853 11480 12347 11184 11813 12662 11507 12061 13229 11993 10/05 11547 12843 11666 11957 13161 11888 12649 13774 12517 13614 14621 13289 13402 14591 13140 13807 15079 13655 14465 15810 14282 13702 15215 13692 13567 15221 13712 13489 15373 13777 13847 15800 14111 13934 15828 14034 10/06 14417 16445 14513
--- INTERNATIONAL CAP APP --- MSCI EAFE INDEX -- MSCI EAFE GROWTH INDEX FUND $10,000 starting value $10,000 starting value $9,450 starting value $16,445 ending value $14,513 ending value $14,417 ending value
MSCI EAFE INDEX -- 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. MSCI EAFE GROWTH INDEX is a free float-adjusted market capitalization index that is designed to measure developed market equity performance (excluding the U.S. and Canada) of the growth securities within the MSCI EAFE Index. The fund has changed its benchmark from the MSCI EAFE Index to the MSCI EAFE Growth Index because the fund's investment manager believes that the MSCI EAFE Growth Index is better suited to the investment strategy of the fund. You cannot invest directly in an index. 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 the investment adviser, without which performance would have been lower. For information on current expense waivers/reimbursements, please see the prospectus. AVERAGE ANNUAL TOTAL RETURNS(1,2) (as of 10/31/06)
INCEPTION SINCE DATE 1 YEAR 5 YEAR INCEPTION --------------------------------------------------------------- Int'l Cap App A# 4/30/2001 24.85% 14.88% 7.97% --------------------------------------------------------------- Int'l Cap App A## 4/30/2001 17.98% 13.59% 6.87% --------------------------------------------------------------- Int'l Cap App B# 4/30/2001 23.95% 14.08% 7.21% --------------------------------------------------------------- Int'l Cap App B## 4/30/2001 18.95% 13.84% 7.07% --------------------------------------------------------------- Int'l Cap App C# 4/30/2001 23.95% 14.08% 7.21% --------------------------------------------------------------- Int'l Cap App C## 4/30/2001 22.95% 14.08% 7.21% --------------------------------------------------------------- Int'l Cap App I## 4/30/2001 24.93% 14.90% 7.98% --------------------------------------------------------------- Int'l Cap App Y# 4/30/2001 25.38% 15.41% 8.44% ---------------------------------------------------------------
# Without sales charge ## With sales charge PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS. (1) Class I shares commenced operations on 8/31/06. Performance prior to 8/31/06 reflects Class A performance. (2) The initial investment in Class A shares reflects the maximum sales charge and Classes B and C reflect CDSC. (3) Growth of a $10,000 investment in Classes B, C, I and Y shares will vary from results seen above due to differences in the expenses charged to these share classes. PORTFOLIO MANAGEMENT ANDREW S. OFFIT Senior Vice President, Partner JEAN-MARC BERTEAUX Vice President MATTHEW D. HUDSON Vice President -------------------------------------------------------------------------------- HOW DID THE FUND PERFORM? The Class A shares of The Hartford International Capital Appreciation Fund returned 24.85%, before sales charges, for the twelve-month period ended October 31, 2006, versus returns of 24.41% for the MSCI EAFE Growth Index and 28.04% for the MSCI EAFE Index. The Fund underperformed the 26.17% return of the average fund in the International Multi-Cap Growth Funds peer group, a group of funds with investment strategies similar to those of the Fund. WHY DID THE FUND PERFORM THIS WAY? Global equity markets were up significantly for the twelve months year ended October 31, 2006, buoyed by a pause in the US Federal Reserve's tightening cycle and lessening fears of excessive global inflation. Global equities showed signs of strength in late 2005, gained momentum and then dipped. The markets then rebounded in the third quarter as prices of energy-related commodities dropped significantly. Within the MSCI EAFE Growth Index, Utilities, Materials, and Industrials led all sectors, while Telecommunications Services and Energy performed well but lagged the index returns for the twelve month period ended October 31, 2006. The Fund outperformed its benchmark during the period aided by strong stock selection across many sectors. Vallourec (Capital Goods), Research in Motion (Technology Hardware), and London Stock Exchange (Diversified Financials) were the top three relative contributors owned by the Fund. We initiated a position in French-based steel tube producer, Vallourec, after the company declined on macro-economic fears of inflation and higher interest rates. Shares of the company's stock surged due to increased demand for exploration from oil and gas companies benefiting from earlier price increases. Shares of wireless communications device maker Research In Motion increased as third quarter results exceeded expectations due to continued strong subscriber growth. The company continues to experience accelerating growth as it expands its geographic reach, subscription base, and product line. The UK securities market, London Stock Exchange, benefited 49 -------------------------------------------------------------------------------- from industry consolidation, along with exceptional earnings growth due to record trading volumes. Avoidance of Energy names like BP PLC also helped performance with the price of oil flattening compared with where it was a year ago. The leading detractors from the Fund's relative (i.e. performance of the Fund as measured against the benchmark) and absolute performance were Rakuten (Retailing), Cia Vale do Rio Doce (Materials), and Statoil (Energy). Rakuten, Japan's leading online retailer, was negatively impacted by volatility in Japanese internet stocks. We have trimmed but continue to hold this name as there have been no fundamental disappointments with the company's earnings. Cia Vale Do Rio Doce, the world's largest iron ore miner, declined over concerns of decelerating global growth eroding demand for the company's raw materials, leading to lower profits. We trimmed due to near-term concerns of deteriorating fundamentals. Norwegian oil and gas company Statoil reported lower-than-expected quarterly profits and reduced guidance for full-year production volumes. WHAT IS THE OUTLOOK? We expect this pendulum swing in sector leadership from cyclical to growth to continue into the close of 2006 and beyond. In the meantime we continue to pick stocks one at a time, focusing on fundamental bottom-up research. As usual, the Fund is positioned for growth. The Fund's overweight in Consumer Discretionary and Information Technology sectors, two of the strongest areas of growth, are a result of our bottom-up research and stock analysis. Despite the Fund's challenging relative performance earlier in the year, our process has not wavered. Our focus remains on stock and sector selections that result from intense bottom-up research, diligently meeting with the management of leading global companies, and leveraging the strong research capabilities of our firm. We have strong conviction in our holdings and process and are optimistic about the Fund's positioning. DIVERSIFICATION BY COUNTRY as of October 31, 2006
PERCENTAGE OF COUNTRY NET ASSETS ------------------------------------------------------------------- Australia 0.5% ------------------------------------------------------------------- Austria 1.3 ------------------------------------------------------------------- Belgium 0.9 ------------------------------------------------------------------- Brazil 0.4 ------------------------------------------------------------------- Canada 6.7 ------------------------------------------------------------------- France 14.7 ------------------------------------------------------------------- Germany 5.3 ------------------------------------------------------------------- Hong Kong 2.9 ------------------------------------------------------------------- Ireland 2.4 ------------------------------------------------------------------- Japan 16.8 ------------------------------------------------------------------- Mexico 2.7 ------------------------------------------------------------------- Netherlands 3.9 ------------------------------------------------------------------- South Korea 1.8 ------------------------------------------------------------------- Spain 1.0 ------------------------------------------------------------------- Sweden 1.4 ------------------------------------------------------------------- Switzerland 8.2 ------------------------------------------------------------------- Taiwan 2.2 ------------------------------------------------------------------- United Kingdom 22.4 ------------------------------------------------------------------- Short-Term Investments 28.8 ------------------------------------------------------------------- Other Assets & Liabilities -24.3 ------------------------------------------------------------------- TOTAL 100.0% -------------------------------------------------------------------
DIVERSIFICATION BY INDUSTRY as of October 31, 2006
PERCENTAGE OF INDUSTRY NET ASSETS ------------------------------------------------------------------- Basic Materials 6.0% ------------------------------------------------------------------- Consumer Cyclical 15.7 ------------------------------------------------------------------- Consumer Staples 9.9 ------------------------------------------------------------------- Energy 0.5 ------------------------------------------------------------------- Finance 22.1 ------------------------------------------------------------------- Health Care 9.4 ------------------------------------------------------------------- Services 4.5 ------------------------------------------------------------------- Technology 22.5 ------------------------------------------------------------------- Transportation 2.4 ------------------------------------------------------------------- Utilities 2.5 ------------------------------------------------------------------- Short-Term Investments 28.8 ------------------------------------------------------------------- Other Assets & Liabilities -24.3 ------------------------------------------------------------------- TOTAL 100.0% -------------------------------------------------------------------
50 The Hartford International Opportunities Fund (subadvised by Wellington Management Company, LLP) INVESTMENT OBJECTIVE -- SEEKS GROWTH OF CAPITAL. PERFORMANCE OVERVIEW(3) 10/31/96 - 10/31/06 Growth of a $10,000 investment in Class A which includes Sales Charge (LINE GRAPH)
INTERNATIONAL OPPORTUNITIES FUND MSCI AC WORLD FREE EX U.S. INDEX -------------------------------- -------------------------------- 10/31/96 9450 10000 9883 10386 9970 10266 9868 10077 9924 10262 9924 10240 9868 10327 10445 10964 10889 11569 11206 11804 10461 10875 11001 11463 10/97 10228 10487 10098 10356 10054 10475 10197 10789 10852 11508 11337 11906 11575 11991 11641 11774 11660 11730 11765 11841 10092 10171 9779 9956 10/98 10415 10999 11014 11590 11314 11990 11647 11977 11380 11709 11989 12274 12437 12888 11913 12283 12472 12847 12786 13148 12796 13194 12872 13283 10/99 13301 13778 14091 14329 15741 15695 14904 14844 15914 15244 15832 15818 15006 14935 14424 14553 14960 15173 14510 14574 14715 14754 13977 13936 10/00 13352 13493 12781 12888 13297 13328 13372 13527 12319 12456 11471 11576 12309 12363 11858 12022 11493 11561 11235 11304 10913 11023 9784 9853 10/01 10031 10130 10601 10593 10805 10729 10289 10270 10268 10344 10816 10949 10752 10976 10859 11096 10354 10617 9279 9582 9139 9583 8031 8567 10/02 8633 9027 8999 9461 8623 9155 8225 8834 7967 8655 7795 8487 8504 9305 8988 9898 9117 10172 9386 10443 9719 10754 9773 11055 10/03 10386 11772 10601 12028 11337 12947 11466 13155 11745 13489 11810 13572 11477 13150 11563 13180 11853 13478 11294 13085 11294 13190 11638 13614 10/04 12068 14087 12810 15065 13294 15712 13004 15441 13445 16203 13111 15763 12864 15375 12929 15471 13187 15762 13832 16344 14198 16762 14714 17627 10/05 14122 16985 14391 17556 15118 18401 16165 19684 15863 19627 16391 20197 17286 21238 16520 20259 16466 20239 16531 20446 16952 21026 16779 21039 10/06 17405 21896
--- INTERNATIONAL OPPORTUNITIES FUND --- MSCI AC WORLD FREE EX U.S. INDEX $9,450 starting value $10,000 starting value $17,405 ending value $21,896 ending value
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. You cannot invest directly in an index. 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 the investment adviser, without which performance would have been lower. For information on current expense waivers/reimbursements, please see the prospectus. AVERAGE ANNUAL TOTAL RETURNS(1,2) (as of 10/31/06)
INCEPTION 1 5 10 SINCE DATE YEAR YEAR YEAR INCEPTION ------------------------------------------------------------------- Int'l Opp A# 7/22/1996 23.25% 11.65% 6.29% 6.38% ------------------------------------------------------------------- Int'l Opp A## 7/22/1996 16.47% 10.39% 5.70% 5.79% ------------------------------------------------------------------- Int'l Opp B# 7/22/1996 22.59% 10.86% NA* NA* ------------------------------------------------------------------- Int'l Opp B## 7/22/1996 17.59% 10.59% NA* NA* ------------------------------------------------------------------- Int'l Opp C# 7/22/1996 22.33% 10.79% 5.51% 5.58% ------------------------------------------------------------------- Int'l Opp C## 7/22/1996 21.33% 10.79% 5.51% 5.58% ------------------------------------------------------------------- Int'l Opp Y# 7/22/1996 24.00% 12.20% 6.79% 6.87% -------------------------------------------------------------------
# Without sales charge ## With sales charge NA Not Applicable * 10 year and inception returns are not applicable for Class B because after 8 years Class B converts to Class A. PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS. (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 shares reflects the maximum sales charge and Classes B and C reflect CDSC. (3) Growth of a $10,000 investment in Classes B, C and Y shares will vary from results seen above due to differences in the expenses charged to these share classes. PORTFOLIO MANAGEMENT TROND SKRAMSTAD Senior Vice President, Partner, Director of Global Equity NICOLAS M. CHOUMENKOVITCH Vice President -------------------------------------------------------------------------------- HOW DID THE FUND PERFORM? The Class A shares of The Hartford International Opportunities Fund returned 23.25%, before sales charges, for the twelve-month period ended October 31, 2006, underperforming its benchmark, the MSCI All Country World Free ex US Index, which returned 28.91% for the same period. The Fund underperformed the 25.62% return of the average fund in the Lipper International Large Cap Core Funds peer group, a group of funds with investment strategies similar to those of the Fund. WHY DID THE FUND PERFORM THIS WAY? Toward the end of 2005 global equity markets showed signs of strength, as investors felt encouraged by strong consumer confidence, solid holiday sales, and retreating energy prices. Early 2006 showed international equity markets advancing as corporate earnings growth continued to be excellent. Returns were strong in Europe, which experienced a high volume of merger and acquisition activity and IPO offerings. Mid-year 2006 economic resilience and companies that benefited from M&A helped returns in the portfolio. Declining energy and metals prices helped drive up international equity markets during the last months of the Fund's fiscal year. The Fund's underperformance versus its benchmark reflected a combination of weak stock selection in some areas as well as sector allocation. Key detractors from performance included Peugeot (Automotives), Rakuten (Retailing), and Statoil (Energy). Peugeot has been under short-term pressure due to its late stage product cycle evolution, higher raw materials costs, and additional expenses related to weaker than expected sales results. Over the mid-long term, we expect positive upside from restructuring efforts, initiatives set forth by a new CEO, and product cycle improvements. Rakuten's stock price fell as a temporary rise in the costs necessary to grow a healthy sales base of this internet retailer disappointed investors; they also had adverse press which in turn hit the stock hard. We remain confident in Rakuten's leading market position and added to our holdings on the recent weakness. Statoil fell back with the decline in the oil prices compounded by lower-than-expected quarterly profits and reduced company guidance for full year production volumes. We remain positive on the company due to its ability to control costs and our confidence in management plans to boost oil production longer-term. As a strategy the Fund tends to favor asset rich companies with growth potential. These, however, underperformed when a sudden down draft in commodity prices occurred. Consumer financial related stocks in Japan, such as Matsui Securities, also detracted from performance. Finally, the Fund's overweight (i.e. the Fund's sector position was more than the benchmark position) 51 -------------------------------------------------------------------------------- to the lagging Healthcare sector and underweight to the outperforming Materials sector hurt performance somewhat. The Fund benefited from strong security selection in several areas, including Materials and Financial Services. New to the Fund this year, Xstrata (Materials) was the top contributing stock to both relative and absolute performance during the period. The value of coal assets in rising energy prices were finally recognized in the market, and we trimmed its position mid year as the stock approached our target price. Investments in the London Stock Exchange and the Hong Kong Exchanges (Diversified Financials) also significantly contributed to the portfolio's performance. The London Stock Exchange's business has been very strong this year due to the increases in listings and growth of electronic trading. The Hong Kong Stock Exchange had strong performance during the beginning of the year driven by higher trading fees. Although market volumes are down, the company remains a proxy for growth in China. Other positive contributors included Inco Ltd, a Canadian Metals and Mining company, and Banco Bilbao Vizcaya, a Spanish commercial bank. WHAT IS THE OUTLOOK? We continue to position the Fund for a slower world economy than currently anticipated by the market, driven by housing in the US and expected growth disappointments in Europe next year. While we may have what will turn out to be a hard "mid-cycle" slowdown, avoiding a global recession, the markets have yet to engage with the much weaker growth outlook we are maintaining. Other than rebuilding our positions in the Consumer Staples sector and further cutting back our emerging markets exposure there have been no major shifts in the Fund's exposure. We maintain a large overweight to continental Europe as relative valuations support this positioning. We are looking to add to UK domestic and Japanese names when the economic growth issues that concerned us are reflected in these markets. DIVERSIFICATION BY COUNTRY as of October 31, 2006
PERCENTAGE OF COUNTRY NET ASSETS ------------------------------------------------------------------- Australia 1.6% ------------------------------------------------------------------- Belgium 0.5 ------------------------------------------------------------------- Brazil 4.1 ------------------------------------------------------------------- Canada 6.4 ------------------------------------------------------------------- China 0.3 ------------------------------------------------------------------- France 15.3 ------------------------------------------------------------------- Germany 9.4 ------------------------------------------------------------------- Hong Kong 0.9 ------------------------------------------------------------------- India 1.4 ------------------------------------------------------------------- Ireland 1.5 ------------------------------------------------------------------- Italy 6.5 ------------------------------------------------------------------- Japan 14.0 ------------------------------------------------------------------- Luxembourg 0.6 ------------------------------------------------------------------- Mexico 1.2 ------------------------------------------------------------------- Netherlands 1.5 ------------------------------------------------------------------- Norway 3.6 ------------------------------------------------------------------- Panama 0.3 ------------------------------------------------------------------- Russia 1.1 ------------------------------------------------------------------- South Korea 1.0 ------------------------------------------------------------------- Spain 2.6 ------------------------------------------------------------------- Sweden 2.1 ------------------------------------------------------------------- Switzerland 8.3 ------------------------------------------------------------------- Taiwan 1.6 ------------------------------------------------------------------- United Kingdom 10.2 ------------------------------------------------------------------- Short-Term Investments 23.3 ------------------------------------------------------------------- Other Assets & Liabilities -19.3 ------------------------------------------------------------------- TOTAL 100.0% -------------------------------------------------------------------
DIVERSIFICATION BY INDUSTRY as of October 31, 2006
PERCENTAGE OF INDUSTRY NET ASSETS ------------------------------------------------------------------- Basic Materials 14.1% ------------------------------------------------------------------- Capital Goods 0.5 ------------------------------------------------------------------- Consumer Cyclical 10.4 ------------------------------------------------------------------- Consumer Staples 5.4 ------------------------------------------------------------------- Energy 9.9 ------------------------------------------------------------------- Finance 26.8 ------------------------------------------------------------------- Health Care 10.9 ------------------------------------------------------------------- Services 2.9 ------------------------------------------------------------------- Technology 10.5 ------------------------------------------------------------------- Transportation 3.2 ------------------------------------------------------------------- Utilities 1.4 ------------------------------------------------------------------- Short-Term Investments 23.3 ------------------------------------------------------------------- Other Assets & Liabilities -19.3 ------------------------------------------------------------------- TOTAL 100.0% -------------------------------------------------------------------
52 The Hartford International Small Company Fund (subadvised by Wellington Management Company, LLP) INVESTMENT OBJECTIVE -- SEEKS CAPITAL APPRECIATION. PERFORMANCE OVERVIEW(2) 4/30/01 - 10/31/06 Growth of a $10,000 investment in Class A which includes Sales Charge (LINE GRAPH)
S&P/CITIGROUP EURO-PACIFIC EXTENDED INTERNATIONAL SMALL CO FUND MARKET INDEX --------------------------- ----------------------------------- 4/30/01 9450 10000 9781 10051 9204 9730 9044 9365 9044 9388 7825 8233 10/01 8335 8554 8902 8875 8713 8758 8581 8585 8562 8792 8968 9305 9346 9565 9620 9980 9507 9671 8921 9000 8713 8917 7834 8188 10/02 7910 8117 8155 8408 8331 8345 8142 8223 8123 8207 8094 8157 9098 8834 9827 9576 9959 10030 10357 10357 10868 11015 11569 11642 10/03 12241 12443 12322 12432 12884 13194 13209 13691 13554 14117 14021 14484 13757 14113 13453 14116 13848 14613 13108 14028 12996 14139 13179 14562 10/04 13635 15016 14383 16191 14973 16992 15337 17232 15746 18014 15292 17637 14803 17128 14917 17210 15292 17537 15905 18172 16223 18693 16632 19398 10/05 16212 18832 16536 19517 17669 20747 18977 22263 18938 22281 19715 23268 20699 24427 19793 23296 19469 23016 19598 22832 20155 23586 20427 23751 10/06 20971 24368
--- INTERNATIONAL SMALL CO FUND --- S&P/CITIGROUP EURO-PACIFIC $9,450 starting value EXTENDED MARKET INDEX $20,971 ending value $10,000 starting value $24,368 ending value
S&P/CITIGROUP EURO-PACIFIC EXTENDED MARKET INDEX is a global equity index comprised of the smallest 20% of each country's market capitalization in the Broad Market Index. All developed countries are included except the US and Canada. You cannot invest directly in an index. 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 the investment adviser, without which performance would have been lower. For information on current expense waivers/reimbursements, please see the prospectus. AVERAGE ANNUAL TOTAL RETURNS(1) (as of 10/31/06)
INCEPTION SINCE DATE 1 YEAR 5 YEAR INCEPTION ---------------------------------------------------------------- Int'l Small Co A# 4/30/2001 29.36% 20.26% 15.58% ---------------------------------------------------------------- Int'l Small Co A## 4/30/2001 22.25% 18.90% 14.40% ---------------------------------------------------------------- Int'l Small Co B# 4/30/2001 28.51% 19.52% 14.91% ---------------------------------------------------------------- Int'l Small Co B## 4/30/2001 23.51% 19.33% 14.82% ---------------------------------------------------------------- Int'l Small Co C# 4/30/2001 28.35% 19.39% 14.72% ---------------------------------------------------------------- Int'l Small Co C## 4/30/2001 27.35% 19.39% 14.72% ---------------------------------------------------------------- Int'l Small Co Y# 4/30/2001 29.89% 20.77% 16.07% ----------------------------------------------------------------
# Without sales charge ## With sales charge PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS. (1) The initial investment in Class A shares reflects the maximum sales charge and Classes B and C reflect CDSC. (2) Growth of a $10,000 investment in Classes B, C and Y shares will vary from results seen above due to differences in the expenses charged to these share classes. PORTFOLIO MANAGER SIMON H. THOMAS Vice President DANIEL MAGUIRE Equity Research Analyst -------------------------------------------------------------------------------- HOW DID THE FUND PERFORM? The Class A shares of The Hartford International Small Company Fund returned 29.36%, before sales charges, for the twelve-month period ended October 31, 2006, underperforming its benchmark, The S&P/Citigroup Euro-Pacific Extended Market Index, which returned 29.40% for the same period. The Fund outperformed the 27.09% return of the average fund in the Lipper International Small/Mid Cap Core peer group, a group of funds with investment strategies similar to those of the Fund. WHY DID THE FUND PERFORM THIS WAY? International small cap equity markets advanced markedly during the period. The benchmark rose in nine of the 12 months with only the May -- July period showing negative results as investors sold off riskier assets. The current period marks the fourth consecutive fiscal year of double-digit positive returns. Every sector in the benchmark rose, led by Materials (+44%), Utilities (+42%), and Energy (+40%). Even the laggards posted strong results as the bottom three sectors Technology (+15%), Health Care (+23%), and Consumer Discretionary (+24%) all rose. Fund returns during the period were helped by strong stock selection, particularly among Industrials, Health Care, and Consumer Discretionary stocks. Sector allocation, an outgrowth of the bottom-up stock selection process, was negative due to an overweight position in the lagging Health Care sector and a modest cash position. The Fund's strongest relative contributors (i.e. performance of the Fund as measured against the benchmark) for the period included: Hellenic Technodomik (+93%), Greece's largest construction company, which rose on strong new business wins; Cambridge Antibody (+106%), a UK biotechnology company that soared on the news that pharmaceutical giant AstraZeneca would be buying the 80% of the company it did not already own; Hagemeyer (+110%), a Dutch supplier of electrical and industrial goods, rose on positive restructuring results; and Rhodia (+63%), a French specialty chemicals company. These stocks, along with Union Tool (+77%), a Japanese supplier of micro-thin drill bits, were also among the top absolute contributors. The largest detractors to relative and absolute performance included: GCAP Media (-27%), a British media company that suffered in a weakening UK advertising market and some concerns over a format change involving fewer ads per minute; Sorin (-17%), an Italian medical technology company that experienced some disappointing profits; Seventy-Seven Bank (-16%), a Japanese regional bank whose profits did not rise as quickly as expected in a rising rate environment; AWB (-48%), an Australian wheat 53 -------------------------------------------------------------------------------- exporter which suffered from a weak harvest and political concerns arising from contracts with middle eastern clients; and Wolfson Microelectronics (-21%), a British microchip company. WHAT IS THE OUTLOOK? Signs of a steadily decelerating global economy continue. Within the United States, the Federal Reserve Bank seems to have successfully orchestrated a soft landing of the United States economy. A moderation in energy prices may help to keep global inflation under control and may signal at least a temporary pause in US rate increases. Outside of the United States, we believe the resurgence of the US dollar and the continued relative strength of the US economy may act as an inflection point for a shift from value to growth, small to large, low quality to high quality, and cyclical to non-cyclical. We finished the period overweight Industrials, Technology, Health Care, and Consumer Staples. Our Technology weight is based on greater conviction that Technology companies broadly are gaining strength. Within Consumer Staples, we maintain an emphasis on Japanese convenience stores and consumer products companies. We expect our Industrials overweight to decline as companies hit our price targets. Our largest underweights are in the Financials, Utilities, and Consumer Discretionary sectors. DIVERSIFICATION BY COUNTRY as of October 31, 2006
PERCENTAGE OF COUNTRY NET ASSETS ------------------------------------------------------------------- Australia 3.4% ------------------------------------------------------------------- Belgium 1.7 ------------------------------------------------------------------- China 1.0 ------------------------------------------------------------------- Denmark 3.7 ------------------------------------------------------------------- Finland 1.2 ------------------------------------------------------------------- France 8.0 ------------------------------------------------------------------- Germany 12.1 ------------------------------------------------------------------- Greece 1.9 ------------------------------------------------------------------- Hong Kong 3.3 ------------------------------------------------------------------- Italy 5.2 ------------------------------------------------------------------- Japan 22.4 ------------------------------------------------------------------- Liechtenstein 1.3 ------------------------------------------------------------------- Luxembourg 0.7 ------------------------------------------------------------------- Malaysia 0.8 ------------------------------------------------------------------- Mexico 0.6 ------------------------------------------------------------------- Netherlands 3.3 ------------------------------------------------------------------- Portugal 0.8 ------------------------------------------------------------------- South Korea 1.6 ------------------------------------------------------------------- Spain 1.8 ------------------------------------------------------------------- Sweden 3.3 ------------------------------------------------------------------- Switzerland 6.8 ------------------------------------------------------------------- United Kingdom 9.7 ------------------------------------------------------------------- United States 4.1 ------------------------------------------------------------------- Short-Term Investments 23.9 ------------------------------------------------------------------- Other Assets & Liabilities -22.6 ------------------------------------------------------------------- TOTAL 100.0% -------------------------------------------------------------------
DIVERSIFICATION BY INDUSTRY as of October 31, 2006
PERCENTAGE OF INDUSTRY NET ASSETS ------------------------------------------------------------------- Basic Materials 12.6% ------------------------------------------------------------------- Capital Goods 9.3 ------------------------------------------------------------------- Consumer Cyclical 16.4 ------------------------------------------------------------------- Consumer Staples 3.5 ------------------------------------------------------------------- Energy 3.4 ------------------------------------------------------------------- Finance 20.6 ------------------------------------------------------------------- Health Care 8.4 ------------------------------------------------------------------- Services 7.7 ------------------------------------------------------------------- Technology 11.5 ------------------------------------------------------------------- Transportation 4.7 ------------------------------------------------------------------- Utilities 0.6 ------------------------------------------------------------------- Short-Term Investments 23.9 ------------------------------------------------------------------- Other Assets & Liabilities -22.6 ------------------------------------------------------------------- TOTAL 100.0% -------------------------------------------------------------------
54 The Hartford MidCap Fund** (subadvised by Wellington Management Company, LLP) INVESTMENT OBJECTIVE -- SEEKS LONG-TERM GROWTH OF CAPITAL. PERFORMANCE OVERVIEW(3) 12/31/97 - 10/31/06 Growth of a $10,000 investment in Class A which includes Sales Charge (LINE GRAPH)
MIDCAP FUND S & P MIDCAP 400 INDEX ----------- ---------------------- 12/30/97 9450 10000 9441 10074 9138 9883 9970 10701 10442 11184 10669 11388 10291 10876 10849 10944 10669 10520 8581 8562 9110 9361 10/98 9866 10197 10480 10706 11624 12000 11907 11533 11378 10929 12342 11234 13277 12120 13438 12173 14358 12825 13951 12552 13753 12122 13450 11748 10/99 14235 12346 14991 12994 17455 13766 17406 13379 20126 14315 21353 15513 20077 14972 19026 14785 20929 15002 21102 15239 23347 16940 23053 16824 10/00 22778 16254 20236 15027 21795 16177 22106 16537 20838 15593 19079 14434 20871 16026 21216 16399 21138 16333 20681 16090 19701 15563 17350 13628 10/01 18464 14230 19968 15289 20782 16079 20403 15995 20525 16015 21662 17160 21383 17080 21495 16791 20146 15562 18040 14054 17951 14126 16425 12988 10/02 17272 13550 18843 14334 17662 13745 17416 13344 17260 13026 17394 13136 18809 14089 20369 15257 20492 15451 20670 16000 21617 16726 21160 16469 10/03 22932 17715 23356 18332 23991 18641 24537 19045 24760 19503 24626 19585 23946 18943 24269 19335 24838 19776 23623 18853 23579 18803 24671 19360 10/04 25194 19670 26724 20841 27816 21714 27304 21160 27975 21870 27566 21628 26621 20787 28146 22039 29158 22550 30398 23734 29909 23470 30421 23650 10/05 29943 23142 31887 24273 32335 24440 34129 25881 34197 25664 34822 26304 35285 26675 33804 25471 33328 25477 32472 24751 33084 25034 33301 25202 10/06 34387 26250
--- MIDCAP FUND --- S&P MIDCAP 400 INDEX $9,450 starting value $10,000 starting value $34,387 ending value $26,250 ending value
S&P MIDCAP 400 INDEX is an unmanaged index measuring the performance of the mid-size company segment of the U.S. market. You cannot invest directly in an index. 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 the investment adviser, without which performance would have been lower. For information on current expense waivers/reimbursements, please see the prospectus. PORTFOLIO MANAGER PHILLIP H. PERELMUTER Senior Vice President, Partner AVERAGE ANNUAL TOTAL RETURNS(1,2) (as of 10/31/06)
INCEPTION SINCE DATE 1 YEAR 5 YEAR INCEPTION ------------------------------------------------------------- MidCap A# 12/31/1997 14.84% 13.24% 15.75% ------------------------------------------------------------- MidCap A## 12/31/1997 8.52% 11.96% 15.01% ------------------------------------------------------------- MidCap B# 12/31/1997 13.97% 12.41% NA* ------------------------------------------------------------- MidCap B## 12/31/1997 8.97% 12.16% NA* ------------------------------------------------------------- MidCap C# 12/31/1997 14.06% 12.50% 14.98% ------------------------------------------------------------- MidCap C## 12/31/1997 13.06% 12.50% 14.98% ------------------------------------------------------------- MidCap Y# 12/31/1997 15.31% 13.81% 16.30% -------------------------------------------------------------
# Without sales charge ## With sales charge NA Not Applicable * Since inception returns are not applicable for Class B because after 8 years Class B converts to Class A. PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS. ** 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. The Fund will continue to offer and sell shares: (1) through ACH and other similar systematic investment facilities to investors who established plans to invest through such facilities prior to August 16, 2004, (2) for reinvestment of capital gains distributions and income dividends, and (3) to certain qualified retirement plans that include (or offered) the Fund as an investment option prior to August 16, 2004. The Fund continues to pay 12b-1 fees. These fees are paid for ongoing shareholder services, to compensate brokers for past sales to reimburse the Fund's distributor for commissions paid in connection with past sales. (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 shares reflects the maximum sales charge and Classes B and C reflect CDSC. (3) Growth of a $10,000 investment in Classes B, C and Y shares will vary from results seen above due to differences in the expenses charged to these share classes. -------------------------------------------------------------------------------- HOW DID THE FUND PERFORM? The Class A shares of The Hartford Mid Cap Fund returned 14.84%, before sales charges, for the twelve-month period ended October 31, 2006, outperforming its benchmark, the S&P MidCap 400 Index, which returned 13.43% for the same period. The Fund also outperformed the 14.46 % return of the average fund in the Lipper Mid-Cap Core Funds peer group, a group of funds with investment strategies similar to those of the Fund. WHY DID THE FUND PERFORM THIS WAY? The twelve months ended October 31, 2006 were subject to significant volatility. 2005 ended on a positive note as markets were helped by falling energy prices and waning inflationary pressures. The markets generally moved higher in the first quarter of 2006, supported by strength in corporate earnings, a solidifying global economy, and benign inflation but then moved lower during the 2nd quarter, driven by inflationary fears, higher interest rates, and concerns about a slowing domestic economy. Broad equity markets increased during the third quarter as declining energy prices and a halt in interest rate hikes by the Federal Reserve offset concerns of a slowing housing market. The fiscal year closed on a high note, as markets continued to rise in October. Positive contribution to Fund performance came from favorable stock selection in several sectors, including Consumer Discretionary, Health Care and Telecommunications. On both a relative and absolute basis, American Tower Corporation (Telecommunication Services) was the top contributor to the Fund's performance during the period as tower operators benefited from cell phone companies' increased spending to support more subscribers, enhanced coverage, and upgrading of networks to 3G technologies. Additional relative and absolute performance contribution came from Manor Care Inc (Health Care) a long-term care center owner 55 -------------------------------------------------------------------------------- and operator benefiting from high occupancy rates and improved private pay volumes, and Cameco Corp (Energy), a Uranium producer that is benefiting from limited supply and a high demand for the commodity. Negative contribution to Fund performance came primarily from stock selection in the Information Technology sector where semiconductor stocks generally suffered from slowing end user demand and stock options inquiries. Four significant detractors from performance in the Information Technology sector were MEMC Electronic Materials, Linear Technology Corp, Fairchild Semiconductor International, and Cognos Inc. Semiconductor company MEMC Electronic Materials detracted from the Fund's relative performance during the period due both to price appreciation early in the year when we did not hold the stock and a stock price decline after we had initiated the position. The stock that detracted most on both a relative and absolute basis was within the Media sector, Sirius Satellite. Recent deceleration in demand, particularly in retail sales, and an up-tick in churn raised investor concerns about the satellite radio company. We eliminated the stock due to concerns about the long-term sustainability of customer growth at current monthly pricing levels. Another significant detractor was Coventry Health Care (Health Care), whose stock fell over the period as the industry confronted slowing commercial growth and Medicaid funding changes. WHAT IS THE OUTLOOK? We continue to expect slower economic growth for the remainder of the year. The Fund retains an overweight to Industrials, where exposure favors commercial services companies. The Fund's overweight to Consumer Discretionary is largely comprised of a collection of media, retailing, and consumer services stocks. The Fund's weight in Consumer Staples rose with new purchases of household & personal products companies, although the Fund remains underweight overall in the sector. DIVERSIFICATION BY INDUSTRY as of October 31, 2006
PERCENTAGE OF INDUSTRY NET ASSETS ------------------------------------------------------------------- Basic Materials 6.0% ------------------------------------------------------------------- Capital Goods 3.4 ------------------------------------------------------------------- Consumer Cyclical 16.6 ------------------------------------------------------------------- Consumer Staples 2.3 ------------------------------------------------------------------- Energy 6.0 ------------------------------------------------------------------- Finance 12.7 ------------------------------------------------------------------- Health Care 8.6 ------------------------------------------------------------------- Services 20.4 ------------------------------------------------------------------- Technology 14.8 ------------------------------------------------------------------- Transportation 1.3 ------------------------------------------------------------------- Utilities 3.4 ------------------------------------------------------------------- Short-Term Investments 7.1 ------------------------------------------------------------------- Other Assets & Liabilities -2.6 ------------------------------------------------------------------- TOTAL 100.0% -------------------------------------------------------------------
56 The Hartford MidCap Growth Fund (subadvised by Hartford Investment Management Company) INVESTMENT OBJECTIVE -- SEEKS LONG-TERM GROWTH OF CAPITAL. PERFORMANCE OVERVIEW(2) 7/31/06 - 10/31/06 Growth of a $10,000 investment in Class A which includes Sales Charge (LINE GRAPH)
MIDCAP GROWTH FUND RUSSELL MIDCAP GROWTH INDEX ------------------ --------------------------- 7/31/06 9450 10000 8/06 9658 10230 9/06 9677 10464 10/06 10045 10866
--- MIDCAP GROWTH FUND --- RUSSELL MIDCAP GROWTH INDEX $9,450 starting value $10,000 starting value $10,045 ending value $10,866 ending value
RUSSELL MIDCAP GROWTH INDEX measures the performance of those Russell MidCap companies with higher price-to-book ratios and higher forecasted growth values. The stocks are members of the Russell 1000 Growth Index. You cannot invest directly in an index. 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 the investment adviser, without which performance would have been lower. For information on current expense waivers/reimbursements, please see the prospectus. AVERAGE ANNUAL TOTAL RETURNS(1) (as of 10/31/06)
INCEPTION SINCE DATE INCEPTION --------------------------------------------- MidCap Growth A# 7/31/2006 6.30% --------------------------------------------- MidCap Growth A## 7/31/2006 0.45% --------------------------------------------- MidCap Growth B# 7/31/2006 6.10% --------------------------------------------- MidCap Growth B## 7/31/2006 1.10% --------------------------------------------- MidCap Growth C# 7/31/2006 6.10% --------------------------------------------- MidCap Growth C## 7/31/2006 5.10% --------------------------------------------- MidCap Growth Y# 7/31/2006 6.40% ---------------------------------------------
# Without sales charge ## With sales charge PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS. (1) The initial investment in Class A shares reflects the maximum sales charge and Classes B and C reflect CDSC. (2) Growth of a $10,000 investment in Classes B, C and Y shares will vary from results seen above due to differences in the expenses charged to these share classes. PORTFOLIO MANAGER MARK WATERHOUSE Executive Vice President -------------------------------------------------------------------------------- HOW DID THE FUND PERFORM? The Class A shares of The Hartford MidCap Growth Fund returned 6.30%, before sales charges, for the three-month period ended October 31, 2006, versus the returns of 7.04% for the Lipper MidCap Growth Funds peer group and 8.65% for the Russell MidCap Growth index. WHY DID THE FUND PERFORM THIS WAY? Sector allocation accounted for approximately half of the overall relative underperformance (i.e. performance of the Fund as measured against the benchmark) during the period with approximately two-thirds of this variance coming from our underweighting (i.e. the Fund's sector position was less than the benchmark position) of the Consumer Discretionary sector. Consumer Discretionary increased by 17% during the period and was the best performing sector in the benchmark while our 13% average weighting of the sector was well below the 22% average weighting of the benchmark. In Consumer Discretionary, we took a defensive approach to both sector allocation and stock selection believing that consumer spending would be negatively impacted by the housing slowdown and weaker economy. While the housing market did slow considerably as we expected -- we did not predict the rapid decline in energy prices in September which propelled more aggressive retailing stocks to outperform and we did not participate in the strength of that group. Our overweight in Health Care (the second worst performing sector during the period) and our underweight of Information Technology (third best performing sector), also hurt us from a sector allocation perspective. Our stock selection accounted for half of the relative underperformance during the period owing to challenged selection the Health Care (amplified by our overweight), Financials, Industrials and Consumer Discretionary sectors. We had very strong stock selection in Information Technology during the period, but not enough to offset the weakness in all of these other sectors. In Health Care, our concentration in the more defensive services segments of the sector (such as diagnostics and benefit management) was not a winning formula for this particular three-month period as investors began to fear that future uncertainties from the then pending November elections could be potentially disruptive to regulated segments of Health Care. In Financials and Industrials, our picks lagged for specific reasons. In Summary, we felt this was an unusual three-month period in which we had "double-whammies" in both Consumer and Health Care with both sector allocation and stock selection hurting us at the same time. Additionally, our strong stock selection in 57 -------------------------------------------------------------------------------- Information Technology was entirely offset by a lack of winning picks in Financials and Industrials. WHAT IS THE OUTLOOK? We take a long-term approach in identifying growth industries and the best-positioned companies in those industries with earnings power that we believe justifies higher stock prices. We can be wrong in the short term as investors react to near term data points that do not necessarily impair long term earnings power. We believe the foreseeable environment of more moderate economic growth, sustained low interest rates (by historical standards) and contained inflation is setting up to be an attractive environment for mid cap growth stocks in 2007 and 2008, particularly in the Health Care, Information Technology and Services sectors. We continue to believe the Consumer Discretionary sector will face "headwinds" in the near term. Overall, we are optimistic that mid cap growth will be an attractive asset class over the next 24 months and we are confident that our approach of identifying the best positioned companies with sustainable, long-term earnings power will suit our investors well over the long term. DIVERSIFICATION BY INDUSTRY as of October 31, 2006
PERCENTAGE OF INDUSTRY NET ASSETS ------------------------------------------------------------------- Basic Materials 6.4% ------------------------------------------------------------------- Capital Goods 3.5 ------------------------------------------------------------------- Consumer Cyclical 7.9 ------------------------------------------------------------------- Consumer Staples 4.5 ------------------------------------------------------------------- Energy 4.1 ------------------------------------------------------------------- Finance 14.6 ------------------------------------------------------------------- Health Care 13.6 ------------------------------------------------------------------- Services 13.8 ------------------------------------------------------------------- Technology 24.1 ------------------------------------------------------------------- Transportation 1.1 ------------------------------------------------------------------- Utilities 4.2 ------------------------------------------------------------------- Short-Term Investments 2.8 ------------------------------------------------------------------- Other Assets & Liabilities -0.6 ------------------------------------------------------------------- TOTAL 100.0% -------------------------------------------------------------------
58 The Hartford MidCap Value Fund* (subadvised by Wellington Management Company, LLP) INVESTMENT OBJECTIVE -- SEEKS LONG-TERM CAPITAL APPRECIATION. PERFORMANCE OVERVIEW(2) 4/30/01 - 10/31/06 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 9374 10337 9091 10248 7815 9111 10/01 8014 9306 8685 10022 9384 10593 9422 10690 9592 10823 10121 11493 10121 11690 9941 11498 9412 11092 8429 9809 8420 9862 7522 9055 10/02 7881 9184 8524 9854 8118 9546 7938 9258 7758 9030 7711 9091 8429 9915 9214 10832 9318 11026 9630 11505 10074 11968 10026 11883 10/03 10697 12791 11075 13313 11567 13836 11746 14284 11992 14574 11964 14690 11538 13921 11756 14201 12228 14765 11699 14171 11501 14349 11916 14802 10/04 12181 15070 12865 16302 13365 16821 12865 16280 13405 16686 13232 16464 12569 15848 13232 16727 13538 17341 14140 18269 14109 17937 14038 17957 10/05 13558 17427 14389 18141 14649 18123 15597 19315 15564 19341 15789 20019 16151 20098 15631 19403 15552 19512 15202 19242 15643 19754 15756 19955 10/06 16455 20890
--- MIDCAP VALUE FUND --- RUSSELL 2500 VALUE INDEX $9,450 starting value $10,000 starting value $16,455 ending value $20,890 ending value
RUSSELL 2500 VALUE INDEX measures the performance of those Russell 2500 Index companies with lower price-to-book ratios and lower forecasted growth values. You cannot invest directly in an index. 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 the investment adviser, without which performance would have been lower. For information on current expense waivers/reimbursements, please see the prospectus. PORTFOLIO MANAGER JAMES N. MORDY Senior Vice President, Partner AVERAGE ANNUAL TOTAL RETURNS(1) (as of 10/31/06)
INCEPTION SINCE DATE 1 YEAR 5 YEAR INCEPTION -------------------------------------------------------------- MidCap Value A# 4/30/2001 21.37% 15.47% 10.60% -------------------------------------------------------------- MidCap Value A## 4/30/2001 14.69% 14.17% 9.47% -------------------------------------------------------------- MidCap Value B# 4/30/2001 20.46% 14.62% 9.81% -------------------------------------------------------------- MidCap Value B## 4/30/2001 15.46% 14.39% 9.69% -------------------------------------------------------------- MidCap Value C# 4/30/2001 20.45% 14.62% 9.81% -------------------------------------------------------------- MidCap Value C## 4/30/2001 19.45% 14.62% 9.81% -------------------------------------------------------------- MidCap Value Y# 4/30/2001 21.90% 16.00% 11.11% --------------------------------------------------------------
# Without sales charge ## With sales charge * As of August 16, 2004, the Fund no longer offers Class A, B and C shares except as follows: The Fund will continue to offer and sell shares: (1) through ACH and other similar systematic investors who established plans to invest through such facilities prior to August 16, 2004 and (2) for reinvestment of capital gains distributions and income dividends. The Fund continues to pay 12b-1 fees. These fees are paid for ongoing shareholder services, to compensate brokers for past sales and to reimburse the Fund's distributor for commissions paid in connection with past sales. PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS. (1) The initial investment in Class A shares reflects the maximum sales charge and Classes B and C reflect CDSC. (2) Growth of a $10,000 investment in Classes B, C and Y shares will vary from results seen above due to differences in the expenses charged to these share classes. -------------------------------------------------------------------------------- HOW DID THE FUND PERFORM? The Class A shares of The Hartford MidCap Value Fund returned 21.37%, before sales charges, for the twelve-month period ended October 31, 2006, outperforming its benchmark, the Russell 2500 Value Index, which returned 19.87% for the same period. The Fund outperformed the 16.81 % return of the average fund in the Lipper Mid-Cap Value Fund peer group, a group of funds with investment strategies similar to those of the Fund. WHY DID THE FUND PERFORM THIS WAY? During the period, US equities posted strong positive returns supporting the Fund's positive, absolute returns. Mid cap stocks trailed small and larger cap stocks during the period, as measured by the S&P 400 MidCap, Russell 2000 and S&P 500 Indices, respectively. Value stocks continued to outperform growth during the period, as measured by the Russell 1000 Growth and Russell 1000 Value Indices, driven by the relative strength of sectors like Telecommunication Services, Materials, and Industrials which led the way. Conversely, Energy, Health Care and Consumer Discretionary lagged, on a relative basis, despite posting positive double-digit returns. The Fund's outperformance relative to the benchmark was due primarily to strong stock selection within Information Technology, Materials, Consumer Discretionary and Industrials. The top three contributors to relative performance (i.e. performance of the Fund as measured against the benchmark) were SeaGate Technology (Information Technology), Inco (Materials) and Acuity Brands (Industrials). Disk drive maker SeaGate's shares benefited from healthy fundamentals and investor anticipation of the benefits of their acquisition of a competitor. Inco's shares benefited from a takeout offer by Teck Cominco, a competitor. Acuity Brands' shares benefited from the company's favorable non-residential end markets, where new construction has been strong. The Fund eliminated its profitable positions in SeaGate and Inco during the period. The three largest detractors of relative performance were biotechnology company Impax Lab, whose shares fell due to unresolved accounting issues, crude oil and natural gas exploration and production company Newfield Exploration, whose shares fell due to a recent pullback in energy prices and compact disc maker Cinram, whose shares declined on concerns that their largest shareholder, a recently failed hedge fund, will be forced into a disorderly liquidation of their position. The Fund held its positions in all three names at the end of the period. WHAT IS THE OUTLOOK? The US economy advanced at a healthy pace during the period but we do not believe this pace will be sustainable as the effects of a slowdown in housing and credit cycle tightening are felt. We 59 -------------------------------------------------------------------------------- expect US economic growth to slow to the 2-3% range in 2007 driven by a slowdown in corporate profits growth (to single-digit levels) and a deceleration in consumer spending to levels that are consistent with income growth as mortgage equity withdrawal is greatly reduced in light of higher US interest rates. As of the end of the period, Industrials, Health Care, Information Technology, and Materials were our largest overweight sectors. The Fund decreased its holdings in the Consumer Discretionary sector during the period; however, we believe that certain specialty retailers that are not overly dependent on the consumer, and some casual dining restaurants, which offer significant value to the consumer on their menus, have some appeal in more challenging times. The Fund's largest underweight sectors remain Financials, particularly REITs, which are interest-rate sensitive and Utilities, where we find valuations to be challenging. DIVERSIFICATION BY INDUSTRY as of October 31, 2006
PERCENTAGE OF INDUSTRY NET ASSETS ------------------------------------------------------------------- Basic Materials 13.2% ------------------------------------------------------------------- Capital Goods 13.1 ------------------------------------------------------------------- Consumer Cyclical 9.3 ------------------------------------------------------------------- Consumer Staples 3.7 ------------------------------------------------------------------- Energy 3.8 ------------------------------------------------------------------- Finance 17.7 ------------------------------------------------------------------- Health Care 7.3 ------------------------------------------------------------------- Services 9.8 ------------------------------------------------------------------- Technology 13.5 ------------------------------------------------------------------- Transportation 2.3 ------------------------------------------------------------------- Utilities 5.4 ------------------------------------------------------------------- Short-Term Investments 8.9 ------------------------------------------------------------------- Other Assets & Liabilities -8.0 ------------------------------------------------------------------- TOTAL 100.0% -------------------------------------------------------------------
60 The Hartford Retirement Income Fund (subadvised by Hartford Investment Management Company) INVESTMENT OBJECTIVE -- SEEKS CURRENT INCOME AND SECONDARILY, CAPITAL PRESERVATION. PERFORMANCE OVERVIEW(2) 9/30/05 - 10/31/06 Growth of a $10,000 investment in Class A which includes Sales Charge (LINE GRAPH)
LEHMAN BROTHERS U.S. RETIREMENT INCOME FUND S&P 500 INDEX AGGREGATE BOND INDEX ---------------------- ------------- -------------------- 9/30/05 9450 10000 10000 10/05 9334 9833 9921 11/05 9383 10205 9965 12/05 9441 10208 10059 1/06 9508 10479 10060 2/06 9493 10507 10093 3/06 9482 10638 9994 4/06 9551 10780 9976 5/06 9459 10471 9966 6/06 9450 10484 9987 7/06 9492 10549 10122 8/06 9626 10800 10277 9/06 9687 11078 10367 10/06 9803 11439 10436
--- RETIREMENT INCOME FUND -- LEHMAN BROTHERS U.S. AGGREGATE --- S&P 500 INDEX $9,450 starting value BOND INDEX $10,000 starting value $9,803 ending value $10,000 starting value $11,439 ending value $10,436 ending value
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 Index and Commercial Mortgage-Backed Securities Index. S&P 500 INDEX is a market capitalization weighted price index composed of 500 widely held common stocks. You cannot invest directly in an index. 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 the investment adviser, without which performance would have been lower. For information on current expense waivers/reimbursements, please see the prospectus. AVERAGE ANNUAL TOTAL RETURNS(1) (as of 10/31/06)
INCEPTION SINCE DATE 1 YEAR INCEPTION --------------------------------------------------------------- Retirement Income A# 9/30/2005 5.03% 3.45% --------------------------------------------------------------- Retirement Income A## 9/30/2005 -0.75% -1.81% --------------------------------------------------------------- Retirement Income B# 9/30/2005 4.21% 2.63% --------------------------------------------------------------- Retirement Income B## 9/30/2005 -0.65% -0.90% --------------------------------------------------------------- Retirement Income C# 9/30/2005 4.42% 2.83% --------------------------------------------------------------- Retirement Income C## 9/30/2005 3.42% 2.83% --------------------------------------------------------------- Retirement Income Y# 9/30/2005 5.55% 3.84% ---------------------------------------------------------------
# Without sales charge ## With sales charge PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS. (1) The initial investment in Class A shares reflects the maximum sales charge and Classes B and C reflect CDSC. (2) Growth of a $10,000 investment in Classes B, C and Y shares will vary from results seen above due to differences in the expenses charged to these share classes. PORTFOLIO MANAGERS WILLIAM DAVISON, CFA Senior Vice President CHRISTOPHER HANLON, CFA Senior Vice President HUGH WHELAN, CFA Executive Vice President -------------------------------------------------------------------------------- HOW DID THE FUND PERFORM: In this environment, The Hartford Retirement Income Fund (Class A) gained 5.03%, before sales charges, for the year ended October, 2006, versus the returns of 9.84% return of the Lipper Mixed-Asset Target Allocation Conservative Funds peer group, 5.19% for the Lehman Brothers U.S. Aggregate Bond Index and 16.33% for the S&P 500 Index. WHY DID THE FUND PERFORM THIS WAY? The Fund's fiscal year, which ended October 31, 2006, began in a period of rising interest rates. Historically high energy and commodity prices, a boom in the housing market, and a strengthening economy led to concerns about rising inflation. To keep inflation in check, the Federal Reserve (the Fed) continued its cycle of monetary tightening (i.e. raising interest rates) that began in the summer of 2004. By June of 2006, the Fed had raised its Federal Funds Target Rate (Fed Funds Rate) 17 consecutive times, leaving the Fed Funds Rate at 5.25%. In response to the Fed's tightening, short- and intermediate-term bond yields rose through the first half of 2006. Thus, as interest rates rose, the principal value of these short- and intermediate-term bonds declined in response. In contrast, long-term bond yields did not rise as substantially due to overseas demand and expectations that the Fed could keep inflation low over the long run. The result was a yield curve that remained flat or even inverted (i.e. bonds with longer term maturities having a lower interest rate than bonds with shorter maturities) through most of the fiscal year. However, by August of 2006, the Fed became concerned that economic growth was slowing, in part due to the retreating housing market. As such, the Fed found itself in a conundrum as to whether it should continue raising interest rates to restrain inflation, or to pause in the tightening cycle to assess prospects for further economic growth. Since changes in the rate of inflation often lag changes in economic conditions, the Fed left rates unchanged at its two most recent meetings while it waited for more data before taking action. Sensing that the Fed would continue easing monetary policy, the bond and equity markets rallied in the last months of the fiscal year. While stocks, and in particular foreign and small cap stocks, performed strongly for the year, fixed income securities provided more modest gains. For the full 12 month period, value oriented stocks outpaced growth stocks. However, growth stocks did return to favor in the last few months of the fiscal year. Aided in part by favorable currency movements and strengthening foreign 61 -------------------------------------------------------------------------------- economies, the international and emerging market equity indices outperformed the major domestic indices for the year. Fortunately, the bond rally over the last few months offset the negative impact of rising interest rates earlier in the year, allowing the major bond sectors to finish with positive returns for the period. During much of the year, fixed income investors were unable to achieve higher levels of yield by going out longer on the yield curve (i.e. purchasing bonds with a longer maturity date). Thus, many bond investors shifted to lower quality and foreign issues as they sought greater yield. During the period, the traditionally "riskier" high yield and emerging markets bonds were among the strongest performers for the year. Based upon the Fund's design, the Fund's fixed income component typically is less sensitive to changes in interest rates than the Lehman benchmark. Additionally, the Fund's fixed income component was more defensive than normal this year, since the underlying fund managers generally assumed the bond markets were underestimating the potential for higher inflation. As interest rates declined during most of the fiscal year, the Fund's fixed income component delivered positive performance. However, the Fund's defensive stance did not allow it to participate fully in the bond rally that occurred late in the period, resulting in a substantial cost to relative performance (i.e. fund performance compared to the fund benchmark's performance). The Fund did, however, benefit from the out-of-index exposure to "spread" sectors and higher yielding securities. With the Dow Jones Industrial reaching its all-time high late in the period, the Fund also generated positive gains from its allocation to stocks. The Fund is constructed such that it has exposure to the various styles of equities, including international, mid-cap and small cap stocks. This diversification is expected to enhance the long-term return and risk characteristics of the Fund. This added diversification benefited the Fund through most of the year. However, since domestic, large cap stocks dominated the stock rally late in the fiscal year, the Fund's exposure to foreign and smaller capitalization equities partially offset some of their earlier contributions. Overall the Fund's allocations were a positive factor for Fund performance. However, stock selection at the individual fund level and within the underlying funds appeared to detract from performance, in part due to the timing of cash flows that detracted from return. WHAT IS THE OUTLOOK? The recent rally in fixed-rate bonds has resulted in bond prices that reflect an environment of economic weakness that is not consistent with our view of the economy. Declines in interest rates and gasoline prices, coupled with a decent employment picture and gains in the stock market, should be supportive of continued consumer spending. While housing remains a wild card for the U.S. economy, our view is that the Federal Reserve is still concerned with inflation and that policy decisions will favor price stability as long as economic growth does not decline dramatically. In the coming months we will be closely watching the economy to determine the impact of a slower housing market on the average U.S. consumer and what implications that has for the economy going forward. COMPOSITION BY UNDERLYING FUND as of October 31, 2006
PERCENTAGE OF FUND NAME NET ASSETS ------------------------------------------------------------------- Hartford Capital Appreciation Fund, Class Y 7.3% ------------------------------------------------------------------- Hartford Disciplined Equity Fund, Class Y 5.8 ------------------------------------------------------------------- Hartford Equity Income Fund, Class Y 2.3 ------------------------------------------------------------------- Hartford Floating Rate Fund, Class Y 6.3 ------------------------------------------------------------------- Hartford Global Leaders Fund, Class Y 2.2 ------------------------------------------------------------------- Hartford High Yield Fund, Class Y 4.0 ------------------------------------------------------------------- Hartford Income Fund, Class Y 0.3 ------------------------------------------------------------------- Hartford Inflation Plus Fund, Class Y 13.8 ------------------------------------------------------------------- Hartford International Capital Appreciation Fund, Class Y 0.6 ------------------------------------------------------------------- Hartford International Opportunities Fund, Class Y 1.7 ------------------------------------------------------------------- Hartford International Small Company Fund, Class Y 0.8 ------------------------------------------------------------------- Hartford MidCap Value Fund, Class Y 0.9 ------------------------------------------------------------------- Hartford Money Market Fund, Class Y 1.4 ------------------------------------------------------------------- Hartford Select MidCap Growth Fund, Class Y 0.3 ------------------------------------------------------------------- Hartford Select MidCap Value Fund, Class Y 2.8 ------------------------------------------------------------------- Hartford Short Duration Fund, Class Y 24.9 ------------------------------------------------------------------- Hartford Small Company Fund, Class Y 1.4 ------------------------------------------------------------------- Hartford Total Return Bond Fund, Class Y 18.9 ------------------------------------------------------------------- Hartford Value Fund, Class Y 1.3 ------------------------------------------------------------------- Other Assets & Liabilities 3.0 ------------------------------------------------------------------- TOTAL 100.0% -------------------------------------------------------------------
62 The Hartford Select MidCap Growth Fund (subadvised by: Chartwell Investment Partners, L.P. Goldman Sachs Asset Management, L.P. Northern Capital Management, LLC) INVESTMENT OBJECTIVE -- SEEKS LONG-TERM CAPITAL APPRECIATION. PERFORMANCE OVERVIEW(2) 1/1/05 - 10/31/06 Growth of a $10,000 investment in Class A which includes Sales Charge (LINE GRAPH)
SELECT MIDCAP GROWTH FUND RUSSELL MIDCAP GROWTH INDEX ------------------------- --------------------------- 12/31/04 9450 10000 9168 9732 2/05 9272 9979 9149 9833 4/05 8717 9444 9168 9985 6/05 9290 10170 9779 10764 8/05 9732 10698 9826 10837 10/05 9525 10518 10081 11088 12/05 10110 11210 10660 11881 2/06 10650 11735 11001 12063 4/06 11039 12114 10384 11544 6/06 10327 11497 9910 11085 8/06 10128 11340 10403 11599 10/06 10698 12044
--- SELECT MIDCAP GROWTH FUND --- RUSSELL MIDCAP GROWTH INDEX $9,450 starting value $10,000 starting value $10,698 ending value $12,044 ending value
RUSSELL MIDCAP GROWTH INDEX is an unmanaged index measuring the performance of the mid-size company segment of the U.S. market. You cannot invest directly in an index. 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 the investment adviser, without which performance would have been lower. For information on current expense waivers/reimbursements, please see the prospectus. AVERAGE ANNUAL TOTAL RETURNS(1) (as of 10/31/06)
INCEPTION SINCE DATE 1 YEAR INCEPTION ---------------------------------------------------------- Select MidCap Gro A# 1/1/2005 12.31% 7.01% ---------------------------------------------------------- Select MidCap Gro A## 1/1/2005 6.13% 3.75% ---------------------------------------------------------- Select MidCap Gro B# 1/1/2005 11.58% 6.29% ---------------------------------------------------------- Select MidCap Gro B## 1/1/2005 6.58% 4.19% ---------------------------------------------------------- Select MidCap Gro C# 1/1/2005 11.48% 6.23% ---------------------------------------------------------- Select MidCap Gro C## 1/1/2005 10.48% 6.23% ---------------------------------------------------------- Select MidCap Gro Y# 1/1/2005 12.77% 7.42% ----------------------------------------------------------
# Without sales charge ## With sales charge PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS. (1) The initial investment in Class A shares reflects the maximum sales charge and Classes B and C reflect CDSC. (2) Growth of a $10,000 investment in Classes B, C and Y shares will vary from results seen above due to differences in the expenses charged to these share classes. PORTFOLIO MANAGERS CHARTWELL INVESTMENT PARTNERS, L.P. GOLDMAN SACHS ASSET MANAGEMENT, L.P. NORTHERN CAPITAL MANAGEMENT, LLC EDWARD N. ANTOIAN, DAVID G. SHELL, DANIEL T. MURPHY, Senior Portfolio Manager Managing Director and Chief Investment President and Chief Investment Officer Officer MARK J. CUNNEEN, BRIAN A. HELLMER, Senior Portfolio Manager STEVEN M. BARRY, Senior Vice President and Director of Managing Director and Chief Investment Research Officer GREGORY H. EKIZIAN, Managing Director and Chief Investment Officer
-------------------------------------------------------------------------------- HOW DID THE FUND PERFORM? The Hartford Select MidCap Growth Class A, before sales charge, returned 12.31% for the year ended October 31, 2006. The Fund underperformed the 14.51% return of the Russell MidCap Growth Index and outperformed the 11.52% return of the Lipper Mid Cap Growth peer group average. WHY DID THE FUND PERFORM THIS WAY? The year ended October 31, 2006 was subject to significant market volatility. During the period, mid cap growth stocks underperformed mid cap value stocks as measured by the Russell MidCap Growth and Russell MidCap Value indices. Broad equity markets increased during the third quarter as declining energy prices and a halt in interest rate hikes by the Federal Reserve offset concerns of a slowing housing market. The fiscal year closed on a high note, as markets continued to rise in October. The best performing sectors within the Russell MidCap Growth index were Information Technology, Materials and Financials. Energy, Healthcare and Consumer Discretionary, while still posting positive returns, were the laggards. Stock selection remained the primary driver of our performance during the period. Overall, Information Technology was our largest contributor to relative performance (i.e. performance of the Fund as measured against the benchmark). In particular, MEMC Electronic Materials (a maker of semiconductor wafers), Akamai Technologies (a leader in distributed computing services, Amphenol (a maker of cable and connectors used in computers and networking equipment), and Research In Motion (wireless communications) were top performers as a result of posting strong financial results. Research In Motion has dominant share in the enterprise mobile email market and we believe it is well-positioned to grow its customer base and penetrate the retail market. We believe the company's growth prospects remain strong as the wireless handheld market broadens and continues to develop. 63 -------------------------------------------------------------------------------- Another top contributor was Alliance Data Systems, a provider of transaction, credit and marketing services. Alliance was up over 70% during the period, hitting a new high for the year. The company announced that fiscal first-quarter earnings rose 52% from a year-ago and growth was balanced across all three of its business segments. A portion of the positive stock selection was offset by stock specific shortfalls in several areas. Within Media Services, XM Satellite Radio Holdings, Inc. was down significantly, despite a revenue increase of over 100% driven by strong subscriber growth during the first quarter. Its shares fell after missing subscriber guidance estimates and lowering the company outlook for 2006. Other stock detractors included Cogent and Urban Outfitters. Shares of Cogent, a provider of automated fingerprint identification systems, were weak during the period. The company's decreased visibility surrounding some large orders in 2006 resulted in several analyst downgrades. Shares of Urban Outfitters fell after lower than expected earnings and inventory buildups dogged the company during this period. WHAT IS THE OUTLOOK? On December 4, 2006, Hartford Investment Management Company (HIMCO) became sub-adviser for the Fund. We, Hartford Investment Financial Services as the investment manager of the Fund, believe that replacing Chartwell, Northern Capital and Goldman Sachs with HIMCO will benefit Fund shareholders by: (1) reducing costs, due to a lower management fee schedule; (2) providing access to a talented and experienced portfolio manager who has a proven track record and a seasoned team of investment professionals; and (3) increasing the potential for economies of scale by providing greater opportunities for additional asset growth. DIVERSIFICATION BY INDUSTRY as of October 31, 2006
PERCENTAGE OF INDUSTRY NET ASSETS ------------------------------------------------------------------- Basic Materials 4.4% ------------------------------------------------------------------- Capital Goods 8.5 ------------------------------------------------------------------- Consumer Cyclical 9.9 ------------------------------------------------------------------- Consumer Staples 1.2 ------------------------------------------------------------------- Energy 5.0 ------------------------------------------------------------------- Finance 10.0 ------------------------------------------------------------------- Health Care 12.1 ------------------------------------------------------------------- Services 14.7 ------------------------------------------------------------------- Technology 23.4 ------------------------------------------------------------------- Transportation 2.8 ------------------------------------------------------------------- Utilities 0.8 ------------------------------------------------------------------- Short-Term Investments 3.2 ------------------------------------------------------------------- Other Assets & Liabilities 4.0 ------------------------------------------------------------------- TOTAL 100.0% -------------------------------------------------------------------
64 The Hartford Select MidCap Value Fund (subadvised by: Artisan Partners Limited Partnership Cramer Rosenthal McGlynn, LLC Sterling Capital Management, LLC) INVESTMENT OBJECTIVE -- SEEKS LONG-TERM CAPITAL APPRECIATION. PERFORMANCE OVERVIEW(2) 4/29/05 - 10/31/06 Growth of a $10,000 investment in Class A which includes Sales Charge (LINE GRAPH)
SELECT MIDCAP VALUE FUND RUSSELL MIDCAP VALUE INDEX ------------------------ -------------------------- 4/29/05 9450 10000 9847 10413 6/05 10074 10754 10452 11266 8/05 10423 11178 10518 11330 10/05 10197 10983 10607 11370 12/05 10673 11481 11050 11979 2/06 11098 12092 11379 12356 4/06 11543 12475 11204 12214 6/06 11156 12287 10992 12217 8/06 11301 12560 11533 12720 10/06 11997 13236
--- SELECT MIDCAP VALUE FUND --- RUSSELL MIDCAP VALUE INDEX $9,450 starting value $10,000 starting value $11,997 ending value $13,236 ending value
RUSSELL MIDCAP VALUE INDEX measures the performance of those Russell Midcap companies with lower price-to-book ratios and lower forecasted growth rate. These stocks are also members of the Russell 1000 Value Index. You cannot invest directly in an index. 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 the investment adviser, without which performance would have been lower. For information on current expense waivers/reimbursements, please see the prospectus. AVERAGE ANNUAL TOTAL RETURNS(1) (as of 10/31/06)
INCEPTION SINCE DATE 1 YEAR INCEPTION ---------------------------------------------------------- Select MidCap Val A# 4/29/2005 17.66% 17.16% ---------------------------------------------------------- Select MidCap Val A## 4/29/2005 11.19% 12.85% ---------------------------------------------------------- Select MidCap Val B# 4/29/2005 16.79% 16.30% ---------------------------------------------------------- Select MidCap Val B## 4/29/2005 11.79% 13.83% ---------------------------------------------------------- Select MidCap Val C# 4/29/2005 16.79% 16.30% ---------------------------------------------------------- Select MidCap Val C## 4/29/2005 15.79% 16.30% ---------------------------------------------------------- Select MidCap Val Y# 4/29/2005 17.79% 17.39% ----------------------------------------------------------
# Without sales charge ## With sales charge PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS. (1) The initial investment in Class A shares reflects the maximum sales charge and Classes B and C reflect CDSC. (2) Growth of a $10,000 investment in Classes B, C and Y shares will vary from results seen above due to differences in the expenses charged to these share classes. PORTFOLIO MANAGERS ARTISAN PARTNERS LIMITED PARTNERSHIP CRAMER ROSENTHAL MCGLYNN, LLC STERLING CAPITAL MANAGEMENT, LLC James C. Kieffer, Jay B. Abramson, Patrick Rau, Managing Director President, Chief Investment Officer and Director and Principal, Equity Portfolio Equity Portfolio Manager Manager Scott C. Satterwhite, Managing Director Robert Rewey III, CFA, Timothy Beyer, Vice President, Equity Portfolio Manager Director and Principal, Equity Portfolio and Senior Research Analyst Manager
-------------------------------------------------------------------------------- HOW DID THE FUND PERFORM? The Hartford Select MidCap Value Class A, before sales charges, returned 17.66% for the year ended October 31, 2006. The Fund underperformed the 20.51% return of the Russell MidCap Value Index and outperformed the 16.81% return of the Lipper Mid Cap Value peer group average. WHY DID THE FUND PERFORM THIS WAY? For the period October 31, 2005 to October 31, 2006, domestic equities posted strong positive returns. Mid cap stocks trailed small and larger cap stocks during the period, as measured by the S&P 400 MidCap, Russell 2000 and S&P 500 Indices, respectively. Value stocks continued to outperform growth during the period, as measured by the Russell 1000 Growth and Russell 1000 Value Indices, driven by the relative strength of sectors like Telecommunication Services, Materials, and Industrials which led the way. Conversely, Energy and Health Care lagged, on a relative basis, despite posting positive double-digit returns. The last three months of the fiscal year were particularly detrimental to energy stocks as oil prices declined considerably. Stock selection remained the primary driver of our performance during the period. Overall, the Fund was generally supported by the returns of in Consumer Discretionary. In particular, Rent-A-Center, Marvel Entertainment, Dollar Tree and Kohl's were strong performers in this area. Rent-A-Center is the largest rent-to-own operator in the United States. During the period, Rent-A-Center experienced improved sales trends, benefited from its store consolidation plan and had an aggressive share repurchase program. Marvel Entertainment is a globally recognized character franchise with a library of over 5,000 characters. During the period, Marvel regained the movie rights to Hulk, its second-largest character franchise behind Spider-Man licensing, and experienced an increase in publishing and toy sales. Dollar Tree's 65 -------------------------------------------------------------------------------- sales results benefited from a number of in store initiatives including the acceptance of debit and credit cards, a focus on consumable items that drive store traffic, and better inventory positioning from a new point-of-sales system. Kohl's, a specialty department store and one of our largest holdings, increased as a result of strong sales and income growth. Other top contributors to performance for the period included NCR (business technology) and CR Bard (medical products). NCR shares rose, as more investors began to appreciate hidden value of its data warehousing division. CR Bard had double digit revenue growth behind strong performance in nearly all of their product categories. Fund detractors include Lear (supplier of automotive interior systems), Deluxe Checks (financial services) and Boston Scientific (medical industry). General Motor's financial difficulties, weak near-term results, and liquidity fears sent Lear sharply lower during the quarter. We sold this position in April, 2006. Deluxe Checks experienced price competition for checks and its financial position weakened. We have also sold this security. Boston Scientific struggled with additional product recalls related to the newly acquired Guidant business and concerns over the long term safety profile of drug coated stents. We have reduced our position in response to these issues. WHAT IS THE OUTLOOK? On December 4, 2006, Hartford Investment Management Company (HIMCO) became sub-adviser for the Fund. We, Hartford Investment Financial Services as the investment adviser of the Fund, believe that replacing Artisan, CRM and Sterling with HIMCO will benefit Fund shareholders by: (1) reducing costs, due to a lower management fee schedule; (2) providing access to a talented and experienced portfolio manager who has a proven track record and a seasoned team of investment professionals; and (3) increasing the potential for economies of scale by providing greater opportunities for additional asset growth. DIVERSIFICATION BY INDUSTRY as of October 31, 2006
PERCENTAGE OF INDUSTRY NET ASSETS ------------------------------------------------------------------- Basic Materials 6.0% ------------------------------------------------------------------- Capital Goods 4.0 ------------------------------------------------------------------- Consumer Cyclical 13.2 ------------------------------------------------------------------- Consumer Staples 1.4 ------------------------------------------------------------------- Energy 7.4 ------------------------------------------------------------------- Finance 24.6 ------------------------------------------------------------------- Health Care 5.1 ------------------------------------------------------------------- Services 13.3 ------------------------------------------------------------------- Technology 12.7 ------------------------------------------------------------------- Transportation 1.9 ------------------------------------------------------------------- Utilities 4.9 ------------------------------------------------------------------- Short-Term Investments 4.4 ------------------------------------------------------------------- Other Assets & Liabilities 1.1 ------------------------------------------------------------------- TOTAL 100.0% -------------------------------------------------------------------
66 The Hartford Select SmallCap Growth Fund (subadvised by: Jennison Associates LLC Oberweis Asset Management, Inc.) INVESTMENT OBJECTIVE -- SEEKS GROWTH OF CAPITAL PERFORMANCE OVERVIEW(2) 9/30/05 - 10/31/06 Growth of a $10,000 investment in Class A which includes Sales Charge (LINE GRAPH)
SELECT SMALLCAP GROWTH FUND RUSSELL 2000 GROWTH INDEX --------------------------- ------------------------- 9/30/05 9450 10000 10/05 9053 9630 11/05 9488 10176 12/05 9393 10161 1/06 10319 11141 2/06 10055 11081 3/06 10575 11620 4/06 10594 11586 5/06 9838 10771 6/06 9734 10777 7/06 9204 10218 8/06 9431 10517 9/06 9497 10588 10/06 9951 11274
--- SELECT SMALLCAP GROWTH FUND --- RUSSELL 2000 GROWTH INDEX $9,450 starting value $10,000 starting value $9,951 ending value $11,274 ending value
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. You cannot invest directly in an index. 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 the investment adviser, without which performance would have been lower. For information on current expense waivers/reimbursements, please see the prospectus. AVERAGE ANNUAL TOTAL RETURNS(1) (as of 10/31/06)
INCEPTION SINCE DATE 1 YEAR INCEPTION --------------------------------------------------------------- Select SmallCap Gro A# 9/30/2005 9.92% 4.88% --------------------------------------------------------------- Select SmallCap Gro A## 9/30/2005 3.87% -0.45% --------------------------------------------------------------- Select SmallCap Gro B# 9/30/2005 9.30% 4.23% --------------------------------------------------------------- Select SmallCap Gro B## 9/30/2005 4.30% 0.55% --------------------------------------------------------------- Select SmallCap Gro C# 9/30/2005 9.20% 4.14% --------------------------------------------------------------- Select SmallCap Gro C## 9/30/2005 8.20% 4.14% --------------------------------------------------------------- Select SmallCap Gro Y# 9/30/2005 10.54% 5.43% ---------------------------------------------------------------
# Without sales charge ## With sales charge PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS. (1) The initial investment in Class A shares reflects the maximum sales charge and Classes B and C reflect CDSC. (2) Growth of a $10,000 investment in Classes B, C and Y shares will vary from results seen above due to differences in the expenses charged to these share classes. PORTFOLIO MANAGERS JENNISON ASSOCIATES LLC OBERWEIS ASSET MANAGEMENT, INC. John P. Mullman, CFA James W. Oberweis, CFA Senior Portfolio Manager President, Portfolio Manager Jason Swiatek, CFA Portfolio Manager
-------------------------------------------------------------------------------- HOW DID THE FUND PERFORM? The Class A shares of the Hartford Select SmallCap Growth Fund, before sales charge, returned 9.92% for the year ended October 31, 2006. The Fund underperformed the 17.07% benchmark return of the Russell 2000 Growth Index and the 12.82% return of the Lipper Small Cap Growth Funds peer group average. WHY DID THE FUND PERFORM THIS WAY? For the period October 31, 2005 to October 31, 2006, although small cap growth stocks underperformed value stocks (as measured by the Russell 2000 Growth and Russell 2000 Value indices), they were strong across all sectors. The best performing small cap growth sectors within the index were Materials, Industrials, Consumer Staples, Utilities and Telecommunications. Healthcare and Information Technology, while still posting positive returns, were the laggards. However, upon closer review of the Russell 2000 Growth Index, small cap stocks with high rates of growth dramatically underperformed the benchmark and were out-of-favor during the year. The Fund invests a portion of its assets in these types of securities which was the primary cause for the underperformance during the year. Stock selection remained the significant driver of our performance during the period. In particular, Equinix, Broadwing, Focus Media and Rackable Systems were strong contributors to performance. Equinix provides electronic network services where different kinds of networks can exchange data. The company reported consistently strong earnings during the period. We believe that Equinix has a unique franchise with an attractive business model, and should benefit from the ongoing explosion of Internet traffic from a wide variety of sources. Shares of Broadwing, which delivers innovative data, voice, and media solutions to enterprises and service providers over a nationwide optical fiber-based network, rose more than 135% over the reporting period as demand for Broadwing's broadband services was strong. Focus Media, one of our largest holdings, provides television display advertising in China. Focus Media returned over 100% during the period as a result of strong earnings. Rackable manufactures high-density, rack-mounted servers and storage systems for large scale data centers. 67 -------------------------------------------------------------------------------- Among the detractors from returns was biotechnology position CV Therapeutics. CV Therapeutics, an emerging biotech company with focus on cardiovascular drugs, fell as the company reported its net loss widened. Despite this recent weak performance, we retain our confidence in the stock. We believe the company has growth potential from its current pipeline and drugs awaiting approval. Other detractors include Pharmanet (a global drug development services company) and Blue Coat Systems (an internet security company). Pharmanet shares tumbled after questions were raised about its drug testing practices while Blue Coat fell after lowering its 2006 earnings guidance. We have sold out of our position in Blue Coat. WHAT IS THE OUTLOOK? We remain constructive on the market overall and believe stocks are attractively valued at current levels. The moderation of energy prices since July has reduced inflationary pressure and, at least theoretically, increased consumers' disposable income as we head into the all-important holiday season. A reduction in inflation expectations should allow the Federal Reserve (the Fed) to continue to stand pat with respect to monetary policy, and moderation in economic growth might even prompt the Fed to reduce short-term interest rates sometime in 2007. While the strength of the consumer was in doubt just a few months ago, lower energy costs should allow stocks with consumer leverage to potentially exceed expectations. We believe that an economic environment characterized by slower but sustainable growth that allows the Fed to maintain the status quo would be positive for equities in 2007. DIVERSIFICATION BY INDUSTRY as of October 31, 2006
PERCENTAGE OF INDUSTRY NET ASSETS ------------------------------------------------------------------- Basic Materials 5.6% ------------------------------------------------------------------- Capital Goods 7.4 ------------------------------------------------------------------- Consumer Cyclical 11.9 ------------------------------------------------------------------- Energy 6.9 ------------------------------------------------------------------- Finance 7.9 ------------------------------------------------------------------- Health Care 10.3 ------------------------------------------------------------------- Services 18.6 ------------------------------------------------------------------- Technology 22.1 ------------------------------------------------------------------- Transportation 2.3 ------------------------------------------------------------------- Utilities 1.3 ------------------------------------------------------------------- Short-Term Investments 4.7 ------------------------------------------------------------------- Other Assets & Liabilities 1.0 ------------------------------------------------------------------- TOTAL 100.0% -------------------------------------------------------------------
68 The Hartford Select SmallCap Value Fund (subadvised by: Kayne Anderson Rudnick Investment Management, LLC Metropolitan West Capital Management, LLC SSgA Funds Management, Inc.) INVESTMENT OBJECTIVE -- SEEKS CAPITAL APPRECIATION. PERFORMANCE OVERVIEW(2) 7/31/06 - 10/31/06 Growth of a $10,000 investment in Class A which includes Sales Charge (LINE GRAPH)
SELECT SMALLCAP VALUE FUND RUSSELL 2000 VALUE INDEX -------------------------- ------------------------ 7/31/06 9450 10000 8/06 9667 10299 9/06 9800 10399 10/06 10357 10929
--- SELECT SMALLCAP VALUE FUND --- RUSSELL 2000 VALUE INDEX $9,450 starting value $10,000 starting value $10,357 ending value $10,929 ending value
RUSSELL 2000 VALUE INDEX is a broad-based unmanaged index comprised of 2,000 of the smallest U.S. domiciled company common stocks (on the basis of capitalization) that are traded in the United States on the New York Stock Exchange. American Stock Exchange and Nasdaq. You cannot invest directly in an index. 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 the investment adviser, without which performance would have been lower. For information on current expense waivers/reimbursements, please see the prospectus. AVERAGE ANNUAL TOTAL RETURNS(1) (as of 10/31/06)
INCEPTION SINCE DATE INCEPTION ----------------------------------------------------- Select SmallCap Value A# 7/31/2006 9.60% ----------------------------------------------------- Select SmallCap Value A## 7/31/2006 3.57% ----------------------------------------------------- Select SmallCap Value B# 7/31/2006 9.30% ----------------------------------------------------- Select SmallCap Value B## 7/31/2006 4.30% ----------------------------------------------------- Select SmallCap Value C# 7/31/2006 9.30% ----------------------------------------------------- Select SmallCap Value C## 7/31/2006 8.30% ----------------------------------------------------- Select SmallCap Value Y# 7/31/2006 9.70% -----------------------------------------------------
# Without sales charge ## With sales charge PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS. (1) The initial investment in Class A shares reflects the maximum sales charge and Classes B and C reflect CDSC. (2) Growth of a $10,000 investment in Classes B, C and Y shares will vary from results seen above due to differences in the expenses charged to these share classes. PORTFOLIO MANAGERS KAYNE ANDERSON RUDNICK INVESTMENT MANAGEMENT, LLC ROBERT A. SCHWARZKOPF, CFA Managing Director SANDI L. GLEASON, CFA METROPOLITAN WEST CAPITAL MANAGEMENT, LLC GARY W. LISENBEE President SSGA FUNDS MANAGEMENT, INC. RIC THOMAS, CFA Principal CHUCK MARTIN, CFA Principal JOHN O'CONNELL Principal -------------------------------------------------------------------------------- HOW DID THE FUND PERFORM? The Hartford Select SmallCap Value Fund launched on July 31, 2006 and therefore has a performance track record for only three months of the reporting period ended October 31, 2006. During that time, the Class A shares of the Fund, before sales charges, returned 9.60% for the period July 31, 2006 to October 31, 2006. The Fund outperformed the 9.29% benchmark return of the Russell 2000 Value Index and the 7.60% return of the Lipper Small Cap Value peer group average. WHY DID THE FUND PERFORM THIS WAY? In October, lower energy prices and solid earnings announcements supported robust returns in the stock market as the Dow Jones set record highs. Since the Fund's inception of July 31, 2006, it has outperformed the benchmark due to positive stock selection. Small cap stocks have experienced sharp return swings throughout 2006, and after a sluggish third quarter, they have continued their general upward trend with a very strong performance in October. The top performing index sectors were Telecommunication Services, Consumer Discretionary and Consumer Staples. Energy and Utilities were the laggards. Strong stock selection drove the outperformance for the Fund during the period. Top contributors include Tempur-Pedic International (manufacturer of mattresses and pillows), Business Objects (a business intelligence software provider) and Manhattan Associates (a software provider). All of these stocks were up over 35 % during the brief period. Within the Consumer Discretionary sector, Aftermarket Technology (logistics services) was the primary detractor. Aftermarket Technology had been strong in the first five months of the year, and the Fund took advantage of recent weakness in the stock to 69 -------------------------------------------------------------------------------- add to our position during the period. While investors focused on transitional issues related to the company's logistics business, we have identified this part of their business as having significant profit potential over the longer term. WHAT IS THE OUTLOOK? Ongoing strength in corporate profits, a benign bond market, and increased pressure on those holding short positions have combined to lift equity benchmarks to their best levels since 2000. Prospects for continued upside in 2007 look bright, especially if economic growth stays steady enough to allow valuation multiples to build on their recent expansion. We believe that the Fund is well positioned to add value relative to the market and its peers into 2007. DIVERSIFICATION BY INDUSTRY as of October 31, 2006
PERCENTAGE OF INDUSTRY NET ASSETS ------------------------------------------------------------------- Basic Materials 8.1% ------------------------------------------------------------------- Capital Goods 6.3 ------------------------------------------------------------------- Consumer Cyclical 11.6 ------------------------------------------------------------------- Consumer Staples 2.1 ------------------------------------------------------------------- Energy 3.9 ------------------------------------------------------------------- Finance 26.6 ------------------------------------------------------------------- Health Care 4.9 ------------------------------------------------------------------- Services 15.5 ------------------------------------------------------------------- Technology 7.9 ------------------------------------------------------------------- Transportation 4.4 ------------------------------------------------------------------- Utilities 2.0 ------------------------------------------------------------------- Short-Term Investments 6.3 ------------------------------------------------------------------- Other Assets & Liabilities 0.4 ------------------------------------------------------------------- TOTAL 100.0% -------------------------------------------------------------------
70 The Hartford Short Duration Fund (subadvised by Hartford Investment Management Company) INVESTMENT OBJECTIVE -- SEEKS TO PROVIDE A HIGH LEVEL OF INCOME. PERFORMANCE OVERVIEW(2) 10/31/02 - 10/31/06 Growth of a $10,000 investment in Class A which includes Sales Charge (LINE GRAPH)
LEHMAN BROTHERS 1-5 YEAR U.S. SHORT DURATION FUND GOVERNMENT/CREDIT INDEX ------------------- ----------------------------- 10/31/02 9700 10000 9676 9987 9829 10145 9842 10150 9945 10244 9963 10262 10023 10312 10130 10430 10143 10442 10008 10296 10013 10300 10186 10474 10/03 10134 10406 10131 10406 10209 10485 10254 10527 10319 10609 10365 10667 10242 10494 10220 10467 10236 10481 10283 10541 10356 10662 10346 10662 10/04 10377 10713 10329 10638 10357 10679 10358 10676 10350 10635 10343 10609 10404 10694 10424 10756 10448 10787 10440 10730 10483 10824 10490 10770 10/05 10472 10744 10511 10784 10542 10832 10561 10846 10578 10851 10587 10846 10629 10876 10652 10885 10688 10903 10743 11004 10797 11106 10860 11176 10/06 10893 11227
--- SHORT DURATION FUND --- LEHMAN BROTHERS 1-5 YEAR U.S. $9,700 starting value GOVERNMENT/CREDIT INDEX $10,893 ending value $10,000 starting value $11,227 ending value
LEHMAN BROTHERS 1-5 YEAR U.S. GOVERNMENT/CREDIT INDEX is an unmanaged index comprised of the U.S. Government/Credit component of the U.S. Aggregate Index. The Hartford Government/Credit Index includes securities in the 1-5 year maturity range in the Government and Credit Indices. You cannot invest directly in an index. 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 the investment adviser, without which performance would have been lower. For information on current expense waivers/reimbursements, please see the prospectus. AVERAGE ANNUAL TOTAL RETURNS(1) (as of 10/31/06)
INCEPTION SINCE DATE 1 YEAR INCEPTION -------------------------------------------------------- Short Duration A# 10/31/2002 4.02% 2.94% -------------------------------------------------------- Short Duration A## 10/31/2002 0.90% 2.16% -------------------------------------------------------- Short Duration B# 10/31/2002 3.33% 2.23% -------------------------------------------------------- Short Duration B## 10/31/2002 -1.67% 1.53% -------------------------------------------------------- Short Duration C# 10/31/2002 3.33% 2.23% -------------------------------------------------------- Short Duration C## 10/31/2002 2.33% 2.23% -------------------------------------------------------- Short Duration Y# 11/28/2003 4.28% 2.76% --------------------------------------------------------
# Without sales charge ## With sales charge PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS. (1) The initial investment in Class A shares reflects the maximum sales charge and Classes B and C reflect CDSC. (2) Growth of a $10,000 investment in Classes B, C and Y shares will vary from results seen above due to differences in the expenses charged to these share classes. PORTFOLIO MANAGERS ROBERT CRUSHA, CFA Vice President BRIAN DIRGINS, CFA Vice President -------------------------------------------------------------------------------- HOW DID THE FUND PERFORM? The Hartford Short Duration Fund (Class A) gained 4.02%, before sales charges, for the year ended October 31, 2006, trailing its benchmark, the Lehman Brothers 1-5 year U.S. Government / Credit Bond Index, which returned 4.52%. The Fund also trailed the 4.10% return of the Lipper Short-term Investment Grade Debt Funds peer group, a group of funds with investment strategies similar to those of the Fund. WHY DID THE FUND PERFORM THIS WAY? The Fund's fiscal year, which ended October 31, 2006, began in a period of rising interest rates. Historically high energy and commodity prices, a boom in the housing market, and a strengthening economy led to concerns about rising inflation. To keep inflation in check, the Federal Reserve (the Fed) continued its cycle of monetary tightening that began in the summer of 2004. By June of 2006, the Fed had raised its Federal Funds Target Rate (Fed Funds Rate) 17 consecutive times, leaving the Fed Funds rate at 5.25%. In response to the Fed's tightening, short- and intermediate-term bond yields rose through the first half of 2006. Thus, as interest rates rose, the principal value of these bonds declined in response. In contrast, long-term bond yields did not rise as substantially due to overseas demand and expectations that the Fed could keep inflation low over the long run. The result was a yield curve that remained flat or even inverted through most of the fiscal year. However, by August of 2006, the Fed became concerned that economic growth was slowing, in part due to the retreating housing market. As such, the Fed found itself in a conundrum as to whether it should continue raising interest rates to restrain inflation, or to pause in the tightening cycle to assess prospects for further economic growth. Since changes in the rate of inflation often lag changes in economic conditions, the Fed left rates unchanged at its two most recent meetings while it waited for more data. Sensing that the Fed would continue easing monetary policy, the bond markets rallied in the last months of the fiscal year. While stocks, and in particular foreign and small cap stocks, performed strongly for the year, fixed income securities provided more modest gains. Fortunately, the bond rally over the last few months offset the negative impact of rising interest rates earlier in the year, allowing the major bond sectors to finish with positive returns for the period. During much of the year, fixed income investors were unable to achieve higher levels of yield by going out 71 -------------------------------------------------------------------------------- to longer duration on the yield curve. Thus, many investors shifted to higher yields in the spread sectors that offer a risk premium over U.S. Treasuries of similar maturities. Accordingly, the Mortgage-Backed Securities (MBS), Commercial Mortgage-Backed Securities (CMBS), Asset-Backed Securities (ABS) and Agencies investment grade spread sectors outperformed U.S. Treasuries. One of the largest impacts upon the Fund's performance through the period stemmed from its sensitivity to changes in interest rates. Generally, fixed rate bonds decline in value as interest rates rise, because the lower coupon bonds become less attractive when compared to bonds that pay higher rates. Purchasers would rather purchase the new higher yielding bonds, so sellers of the existing, lower coupon bonds must discount them to compensate for their lower interest rates. Although the rising rates detracted from the Fund's return on an absolute basis for most of the fiscal year, the Fund was appropriately positioned with a duration that was less than half that of the benchmark. However, the very substantial benefits of the Fund's conservative positioning through mid-2006 were negatively offset by the bond rally late in the fiscal year. Therefore, the Fund's duration and yield curve management ultimately resulted in only modest contributions to performance. As spread sectors outperformed U.S. Treasuries for the twelve month period, investments in ABS, CMBS and Corporate issues continued to contribute significant yield to the portfolio. Since the Fund was overweight in out-of-index sectors compared to the benchmark weightings, it had underweighted U.S. Treasuries. This allocation away from Treasuries was also beneficial as Treasuries trailed the credit sectors. The Fund's lower allocation to Agency issues appeared to be a cost to performance. However, that shortfall was more than offset by the beneficial allocations to the ABS, MBS and especially CMBS sectors. The Fund tactically held Treasury Inflation-Protected Securities (TIPS) at times to take advantage of the attractive seasonal accruals (when inflation adjustments are typically advantageous). While the overall TIPS sector lagged the Index for the period, we believe the Fund's tactical individual security selection was a positive contributor to performance. In the end, the portfolio outperformed the Index on a gross (before expenses) basis, but it did not outperform by a great enough margin to offset the costs associated with operating the Fund. WHAT IS THE OUTLOOK? The recent rally in bonds has priced into bond market values an environment of economic weakness that is not consistent with our view. Declines in interest rates and gasoline prices, coupled with a decent employment picture and gains in the stock market, should be supportive of continued spending. While housing remains a wild card for the U.S. economy, our view is that the Fed is still concerned with inflation and that policy decisions will favor price stability as long as economic growth does not decline dramatically. During the coming fourth quarter, we anticipate the Fed will remain on hold and is unlikely to lower rates through the first quarter of 2007, as current market pricing suggests. Therefore, we shall remain patient in extending duration until such time that we find attractive opportunities and shall focus on adding additional yield in shorter maturities than that of the benchmark. DISTRIBUTION BY CREDIT QUALITY as of October 31, 2006
PERCENTAGE OF RATING LONG-TERM HOLDINGS ------------------------------------------------------------------- AAA 30.5% ------------------------------------------------------------------- AA 4.8 ------------------------------------------------------------------- A 28.6 ------------------------------------------------------------------- BBB 36.1 ------------------------------------------------------------------- TOTAL 100.0% -------------------------------------------------------------------
DIVERSIFICATION BY INDUSTRY as of October 31, 2006
PERCENTAGE OF INDUSTRY NET ASSETS ------------------------------------------------------------------- Basic Materials 1.1% ------------------------------------------------------------------- Capital Goods 0.7 ------------------------------------------------------------------- Consumer Cyclical 1.6 ------------------------------------------------------------------- Consumer Staples 1.0 ------------------------------------------------------------------- Energy 2.6 ------------------------------------------------------------------- Finance 69.9 ------------------------------------------------------------------- Health Care 1.4 ------------------------------------------------------------------- Services 3.9 ------------------------------------------------------------------- Technology 4.1 ------------------------------------------------------------------- Transportation 0.5 ------------------------------------------------------------------- U.S. Government Agencies 5.1 ------------------------------------------------------------------- Utilities 1.3 ------------------------------------------------------------------- Short-Term Investments 5.9 ------------------------------------------------------------------- Other Assets & Liabilities 0.9 ------------------------------------------------------------------- TOTAL 100.0% -------------------------------------------------------------------
72 The Hartford Small Company Fund (subadvised by: Wellington Management Company, LLP Hartford Investment Management Company**) INVESTMENT OBJECTIVE -- SEEKS GROWTH OF CAPITAL. PERFORMANCE OVERVIEW(3) 10/31/96 - 10/31/06 Growth of a $10,000 investment in Class A which includes Sales Charge (LINE GRAPH)
SMALL COMPANY FUND RUSSELL 2000 GROWTH INDEX ------------------ ------------------------- 10/31/96 9450 10000 9652 10278 9602 10478 9593 10740 9440 10092 8955 9379 9009 9271 9980 10664 10565 11026 11078 11591 11339 11939 12310 12892 10/97 11806 12117 11599 11828 11453 11835 11171 11677 12282 12708 12772 13241 12941 13322 12310 12354 12490 12481 12053 11438 9106 8798 9895 9690 10/98 10684 10195 11406 10986 12652 11980 13203 12519 11901 11374 12880 11779 13935 12819 14229 12840 15361 13516 15342 13098 15123 12608 15427 12851 10/99 15959 13181 17776 14574 20959 17143 20345 16984 23916 20935 23558 18734 21430 16843 19035 15368 21720 17353 19976 15866 21559 17535 20618 16664 10/00 19344 15311 16937 12531 18209 13298 17401 14374 15476 12404 14138 11276 16063 12657 15853 12950 16100 13303 15226 12168 14584 11408 12283 9567 10/01 13279 10488 14551 11363 15326 12071 15082 11641 14374 10888 15425 11834 15038 11578 14463 10901 13456 9977 11276 8444 11054 8440 10601 7830 10/02 10988 8226 11663 9042 10645 8418 10357 8189 10147 7971 10501 8092 11619 8857 12913 9856 13323 10045 14274 10805 14983 11385 14429 11097 10/03 15801 12056 16244 12449 16543 12504 17207 13161 17229 13141 17561 13202 16654 12540 16952 12789 17328 13215 15901 12028 15215 11769 16399 12420 10/04 16698 12722 17649 13797 18424 14293 17417 13649 17992 13837 17749 13318 16985 12470 18136 13349 19154 13781 20316 14744 20383 14536 20947 14652 10/05 20416 14110 21666 14909 22208 14887 24211 16323 24034 16236 25085 17025 25572 16976 24233 15781 23636 15791 22662 14970 22905 15409 22994 15513 10/06 23879 16518
--- SMALL COMPANY FUND --- RUSSELL 2000 GROWTH INDEX $9,450 starting value $10,000 starting value $23,879 ending value $16,518 ending value
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. You cannot invest directly in an index. 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 the investment adviser, without which performance would have been lower. For information on current expense waivers/reimbursements, please see the prospectus. ** As of June 12, 2006, Hartford Small Company Fund ("the Fund") employs a multimanager approach with Hartford Investment Management Company providing sub-advisory services for a portion of the Fund's assets. As of that date, the Fund's Class A, B, C and Y were reopened to new investments. AVERAGE ANNUAL TOTAL RETURNS(1,2) (as of 10/31/06)
INCEPTION 1 5 10 SINCE DATE YEAR YEAR YEAR INCEPTION -------------------------------------------------------------------- Small Co A# 7/22/1996 16.96% 12.45% 9.71% 10.68% -------------------------------------------------------------------- Small Co A## 7/22/1996 10.53% 11.18% 9.09% 10.07% -------------------------------------------------------------------- Small Co B# 7/22/1996 16.10% 11.62% NA* NA* -------------------------------------------------------------------- Small Co B## 7/22/1996 11.10% 11.37% NA* NA* -------------------------------------------------------------------- Small Co C# 7/22/1996 16.14% 11.64% 8.96% 9.92% -------------------------------------------------------------------- Small Co C## 7/22/1996 15.14% 11.64% 8.96% 9.92% -------------------------------------------------------------------- Small Co I# 7/22/1996 17.02% 12.46% 9.71% 10.68% -------------------------------------------------------------------- Small Co Y# 7/22/1996 17.59% 12.97% 10.23% 11.20% --------------------------------------------------------------------
# Without sales charge ## With sales charge * 10 year and inception returns are not applicable for Class B because after 8 years Class B converts to Class A. PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS. (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. Class I shares commenced operations on 8/31/06. Performance prior to 8/31/06 reflects Class A performance. (2) The initial investment in Class A shares reflects the maximum sales charge and Classes B and C reflect CDSC. (3) Growth of a $10,000 investment in Classes B, C, I and Y shares will vary from results seen above due to differences in the expenses charged to these share classes. PORTFOLIO MANAGERS WELLINGTON MANAGEMENT COMPANY, LLP STEVEN C. ANGELI, CFA Senior Vice President, Partner STEPHEN MORTIMER Vice President MARIO E. ABULARACH Vice President HARTFORD INVESTMENT MANAGEMENT COMPANY MARK WATERHOUSE Executive Vice President -------------------------------------------------------------------------------- HOW DID THE FUND PERFORM? The Class A shares of the Hartford Small Company Fund returned 16.96%, before sales charges, for the twelve-month period ended October 31, 2006, underperforming its benchmark, the Russell 2000 Growth Index which returned 17.07% for the same period. The Fund outperformed the 12.82% return of the average fund in the Lipper Small Cap Growth Funds peer group, a group of funds with investment strategies similar to those of the Fund. WHY DID THE FUND PERFORM THIS WAY? US equity indices edged higher toward the end of 2005, helped by a drop in energy prices. Despite indications that inflation had moderated, the Federal Reserve continued to raise rates to the point where the yield curve inverted (i.e. bonds with longer term maturities having a lower interest rate than bonds with shorter maturities of the same credit quality). On the back of that, the Russell 2000 Growth Index soared during the first quarter of 2006, demonstrating the third largest first quarter gain in over 15 years. As the Fed continued to raise rates in the second quarter 2006 to fight inflation, the market reacted quite negatively. Worried that the Fed may push rates too far and sour the economy, investors punished small cap stocks most severely. The later part of the year resulted in excellent performance for large cap stocks which outpaced smaller companies. Superior stock selection among Financials, Health Care and Materials stocks helped to boost Fund performance. Strength in the financial services arena came from an eclectic range of holdings including Admiral Corp (a UK-based auto insurance underwriter and distributor), Hong Kong Exchanges (which operates stock and futures exchanges in the leading capital formation center for China), and CB Richard Ellis (the largest global commercial real estate services company). In health care, Schwarz Pharmaceuticals AG advanced first on positive fundamental developments and later 73 -------------------------------------------------------------------------------- on a takeover bid. Positive clinical indications on several drug pipeline candidates likewise lifted holdings in Vertex Pharmaceuticals. Eagle Materials (cement), Brush Engineered Materials (high performance metals and alloys) and Agnico-Eagle Mines Ltd. (gold) led performance among basic materials holdings. Outside these sectors top relative individual stock contributors included CSR Plc (Bluetooth chip sets), Corrections Corp. (private correctional facilities), Equinix Plc (outsourced internet exchange hubs) and Melco Corp. (Macau hotel and casinos). Offsetting these strong results was weaker stock selection in the Energy, Consumer Discretionary, and Consumer Staples sectors. Energy holdings -- whether fossil fuel oriented or alternatives based -- corrected sharply during the latter half of the period. Significant detractors among this group included Frontier Oil (oil refining and marketing), Arch Coal (Coal consumables and Fuels) and VeraSun Energy (Oil exploration & production). In Consumer Discretionaries, shares in our holding in household products manufacturer, Jarden, declined after it issued an earnings warning. In Consumer Staples, though we avoided a fairly steep correction in alternative beverage purveyor Hansen Natural Corp, we also missed an impressive run up in the stock. Holdings in Peet's Coffee & Tea disappointed on higher operating expenses. We eliminated our position during the period. Other stocks that detracted from performance included Symbion Inc, an operator of surgical centers which pulled back amid reimbursement pressure from private payors and Medicaid, and Red Hat, the leading provider of Linux operating systems and support which gapped lower on a weaker than expected quarter as well as concerns over increasing competition. WHAT IS THE OUTLOOK? The surprisingly swift and dramatic pullback in energy prices that began during the summer months appears to have allayed inflation fears and softened the case for a housing-induced slowdown in consumer spending. We suspect this shift in sentiment propelled the late period rebound among consumer discretionary stocks. Whether or not this is sustainable remains to be seen. With regard to portfolio positioning, the most significant shifts on a year over year basis include a net reduction in our exposure to Health Care and Financials concerns -- generally the result of taking profits -- and an increase in our Consumer Discretionary holdings, most notably in the media space. Opportunistic purchases in Industrials increased the overweight position to this sector. DIVERSIFICATION BY INDUSTRY as of October 31, 2006
PERCENTAGE OF INDUSTRY NET ASSETS ------------------------------------------------------------------- Basic Materials 5.9% ------------------------------------------------------------------- Capital Goods 3.7 ------------------------------------------------------------------- Consumer Cyclical 6.9 ------------------------------------------------------------------- Consumer Staples 1.6 ------------------------------------------------------------------- Energy 4.6 ------------------------------------------------------------------- Finance 10.2 ------------------------------------------------------------------- Health Care 11.8 ------------------------------------------------------------------- Investment Companies 0.9 ------------------------------------------------------------------- Services 16.2 ------------------------------------------------------------------- Technology 27.3 ------------------------------------------------------------------- Transportation 6.0 ------------------------------------------------------------------- Utilities 1.1 ------------------------------------------------------------------- Short-Term Investments 24.2 ------------------------------------------------------------------- Other Assets & Liabilities -20.4 ------------------------------------------------------------------- TOTAL 100.0% -------------------------------------------------------------------
74 The Hartford SmallCap Growth Fund (subadvised by Wellington Management Company, LLP) INVESTMENT OBJECTIVE -- SEEKS TO MAXIMIZE SHORT- AND LONG-TERM CAPITAL APPRECIATION. PERFORMANCE OVERVIEW(1,3) 10/31/96 - 10/31/06 Growth of a $10,000 investment in Class A which includes Sales Charge (LINE GRAPH)
SMALLCAP GROWTH FUND RUSSELL 2000 GROWTH INDEX -------------------- ------------------------- 10/31/96 9450 10000 9447 10278 9071 10478 8930 10740 7856 10092 7165 9379 6990 9270 8303 10664 8503 11025 9002 11590 8770 11937 9357 12890 10/97 8927 12115 8959 11827 9208 11834 8902 11677 9959 12708 10598 13241 10679 13322 10131 12354 10541 12480 9690 11438 7572 8798 8096 9690 10/98 8624 10196 9713 10987 11036 11981 11820 12520 10324 11375 11070 11780 11483 12820 11566 12840 13168 13517 13339 13099 13649 12610 14289 12853 10/99 16399 13182 18435 14575 23334 17143 23787 16984 33214 20936 29719 18736 24884 16843 21428 15368 26556 17353 24586 15866 29461 17535 27794 16664 10/00 25269 15311 17994 12530 20078 13297 20461 14373 16617 12402 14849 11275 16199 12655 16185 12949 16802 13302 15576 12168 14555 11407 11848 9566 10/01 13047 10486 14524 11362 15667 12070 15151 11640 14308 10887 15785 11833 15110 11577 14051 10900 12741 9976 11013 8442 10958 8438 10045 7829 10/02 10846 8225 12065 9040 11111 8416 10742 8188 10254 7969 10373 8090 11355 8855 12692 9853 13020 10043 13883 10802 14852 11382 14859 11094 10/03 15959 12053 16356 12446 16586 12501 17576 13158 17548 13138 17408 13199 16642 12537 16816 12786 17367 13211 15952 12026 15743 11767 16607 12417 10/04 17137 12719 18307 13794 19094 14290 18244 13646 18753 13833 18516 13315 17659 12467 18955 13346 19512 13778 20815 14741 20439 14533 20411 14648 10/05 19714 14107 20836 14906 20954 14883 22528 16319 22173 16232 22807 17021 22486 16972 20897 15777 20925 15787 19866 14967 20131 15405 20410 15510 10/06 21816 16514
--- SMALLCAP GROWTH FUND --- RUSSELL 2000 GROWTH INDEX $9,450 starting value $10,000 starting value $21,816 ending value $16,514 ending value
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. You cannot invest directly in an index. 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 the investment adviser, without which performance would have been lower. For information on current expense waivers/reimbursements, please see the prospectus. PORTFOLIO MANAGERS DAVID J. ELLIOTT, CFA Vice President DORIS T. DWYER Vice President AVERAGE ANNUAL TOTAL RETURNS(1,2) (as of 10/31/06)
INCEPTION 1 5 10 SINCE DATE YEAR YEAR YEAR INCEPTION ------------------------------------------------------------------- SmallCap A# 1/4/1988 10.67% 10.82% 8.72% 12.47% ------------------------------------------------------------------- SmallCap A## 1/4/1988 4.58% 9.58% 8.11% 12.13% ------------------------------------------------------------------- SmallCap B# 11/14/1994 9.97% 10.08% NA* NA* ------------------------------------------------------------------- SmallCap B## 11/14/1994 4.97% 9.81% NA* NA* ------------------------------------------------------------------- SmallCap C# 11/14/1994 9.82% 10.03% 8.04% 10.45% ------------------------------------------------------------------- SmallCap C## 11/14/1994 8.82% 10.03% 8.04% 10.45% ------------------------------------------------------------------- SmallCap H# 11/14/1994 10.12% 10.20% NA* NA* ------------------------------------------------------------------- SmallCap H## 11/14/1994 6.12% 9.93% NA* NA* ------------------------------------------------------------------- SmallCap I# 2/19/2002 10.71% NA NA 9.78% ------------------------------------------------------------------- SmallCap L# 1/4/1988 10.90% 10.92% 8.77% 12.49% ------------------------------------------------------------------- SmallCap L## 1/4/1988 5.63% 9.84% 8.24% 12.20% ------------------------------------------------------------------- SmallCap M# 11/14/1994 10.09% 10.19% NA* NA* ------------------------------------------------------------------- SmallCap M## 11/14/1994 6.09% 9.91% NA* NA* ------------------------------------------------------------------- SmallCap N# 11/14/1994 10.08% 10.20% 8.12% 10.52% ------------------------------------------------------------------- SmallCap N## 11/14/1994 9.08% 10.20% 8.12% 10.52% ------------------------------------------------------------------- SmallCap Y# 2/19/2002 11.17% 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. (1) Classes A, B and C were offered beginning on February 19, 2002. Performance prior to that date is that of the fund's Classes L, M and N shares, respectively, which have lower operating expenses. Performance prior to February 19, 2002 would have been lower if Classes A, B and C shares expenses were applied during that period. Class I shares commenced operations on 8/31/06. Performance prior to 8/31/06 reflects Class A performance. (2) The initial investment in Classes A and L shares reflects the maximum sales charge and Classes B, C, H, M and N reflect CDSC. (3) Growth of a $10,000 investment in Classes B, C, H, I, L, M, N and Y shares will vary from results seen above due to differences in the expenses charged to these share classes. -------------------------------------------------------------------------------- HOW DID THE FUND PERFORM? The Class A shares of The Hartford Small Cap Growth Fund returned 10.67%, before sales charges, for the twelve-month period ended October 31, 2006, underperforming its benchmark, the Russell 2000 Growth Index, which returned 17.07% for the same period. The Fund also underperformed the 12.82% return of the average fund in the Lipper Small Cap Growth Funds peer group, a group of funds with investment strategies similar to those of the Fund. WHY DID THE FUND PERFORM THIS WAY? US equity indices edged higher toward the end of 2005, helped by a drop in energy prices. Despite indications that inflation had moderated, the Federal Reserve (the Fed) continued to raise rates to the point where the yield curve inverted. On the back of that, the Russell 2000 Growth Index soared during the first quarter of 2006, demonstrating the third largest first quarter gain in over 15 years. As the Fed continued to raise rates in the second quarter 2006 to fight inflation, the market reacted quite negatively. Worried that the Fed may push rates too far and sour the economy, investors punished small cap stocks most severely. The later part of the year resulted in excellent performance for large cap stocks which outpaced smaller companies. Stock selection within Financials, Consumer Discretionary, Industrials and Healthcare drove the Fund's underperformance relative to the benchmark. Scottish Re Group Ltd (Insurance), Standard Pacific Corp (Consumer Durables), and CV Therapeutics (Pharmaceutical Biotechnology) were the largest detractors from the portfolio's relative return over the period. Scottish Re, a Cayman Islands-based reinsurer for US life insurance, variable annuities, and other annuity type products, disappointed during the first quarter of 2006. With the decreased demand for new housing in the southwest and overall housing market slowing this year, Standard Pacific Corp, a residential housing constructor, negatively impacted the portfolio and we eliminated our position during the period. We sold our position in this portfolio during the period. CV Therapeutics, a developer of drugs for cardiovascular diseases 75 -------------------------------------------------------------------------------- since its foundation in 1990, detracted from the Fund's performance during the period as the market was too focused on the launch of Ranexa, a drug used to help treat angina, and approval of the trial. Although it has not been a strong contributor thus far, we still believe in the fundamentals of the company and continue to hold it in the Fund. Other Healthcare stocks that detracted from relative performance during the period included NPS Pharmaceutical Corp, and Encysive Pharmaceutical Inc. NPS's performance suffered this year because its new drug in development, Preos, came under scrutiny by the FDA. The market thought the FDA would require an additional clinical trial, forcing the stock price lower. Encysive's new drug, Thelin, which is intended to treat chronic high blood pressure in the blood vessel carrying oxygen-poor blood to the lungs, was approved in Europe in August and is still awaiting final approval by the FDA. Stock Selection within Materials, Energy, and Information Technology were the areas of greatest strength relative to the benchmark. In Energy, Frontier Oil, a refining company, contributed to the overall relative performance of the fund. In Materials, Century Aluminum, a manufacturer of Alumina and Aluminum, demonstrated increased net income and sales year over year and continued growth. Other top contributors to absolute and relative performance included Abgenix Inc (Pharmaceutical Biotechnology), which was acquired in late 2005 by Amgen and Skechers USA (Consumer Durables), the maker of sneakers for men, women and children, which continues to be a leader in the shoe market and showed significant growth over the period. WHAT IS THE OUTLOOK? A mid-cycle slowdown is underway and the housing correction is leading the way. We expect further price and transaction weakness ahead. Consumers continue to face headwinds and fading sources of stimulus. We will continue to apply a bottom-up investment process in constructing a diversified portfolio. The Fund seeks to apply a combination of fundamental and quantitative research analysis to build a portfolio diversifying across all sectors of the Russell 2000 Growth Index. As a result of the Fund's investment approach, sector positioning is in-line with the Russell 2000 Growth Index, resulting in the greatest exposure to the Information Technology, Industrials and Health Care sectors. DIVERSIFICATION BY INDUSTRY as of October 31, 2006
PERCENTAGE OF INDUSTRY NET ASSETS ------------------------------------------------------------------- Basic Materials 7.4% ------------------------------------------------------------------- Capital Goods 4.7 ------------------------------------------------------------------- Consumer Cyclical 12.0 ------------------------------------------------------------------- Energy 4.8 ------------------------------------------------------------------- Finance 10.6 ------------------------------------------------------------------- Health Care 15.3 ------------------------------------------------------------------- Services 13.6 ------------------------------------------------------------------- Technology 23.1 ------------------------------------------------------------------- Transportation 4.5 ------------------------------------------------------------------- Short-Term Investments 20.2 ------------------------------------------------------------------- Other Assets & Liabilities -16.2 ------------------------------------------------------------------- TOTAL 100.0% -------------------------------------------------------------------
76 The Hartford Stock Fund (subadvised by Wellington Management Company, LLP) INVESTMENT OBJECTIVE -- SEEKS LONG-TERM GROWTH OF CAPITAL, WITH INCOME AS A SECONDARY CONSIDERATION. PERFORMANCE OVERVIEW(3) 10/31/96 - 10/31/06 Growth of a $10,000 investment in Class A which includes Sales Charge (LINE GRAPH)
STOCK FUND S&P 500 INDEX ---------- ------------- 10/31/96 9450 10000 10117 10755 9878 10542 10469 11200 10546 11288 10238 10825 10769 11471 11437 12169 12006 12714 12845 13725 12100 12957 12717 13666 10/97 12374 13210 12888 13821 13017 14058 13129 14213 14134 15238 14949 16018 15267 16179 14975 15901 15834 16546 15988 16371 13644 14004 14211 14901 10/98 15327 16112 16212 17088 17096 18072 17651 18827 17313 18242 18163 18972 18979 19707 18424 19242 19630 20308 19083 19675 18788 19577 18268 19041 10/99 19248 20245 19575 20657 20911 21873 19920 20774 19956 20381 21884 22373 21256 21701 20787 21255 21239 21779 20793 21439 21882 22770 20855 21568 10/00 20882 21477 19632 19785 19847 19882 20362 20587 18903 18711 17528 17526 18781 18886 18931 19013 18105 18551 17881 18368 16692 17219 15484 15829 10/01 15812 16132 17001 17369 17122 17522 16701 17266 16458 16933 17019 17570 15587 16505 15362 16384 14248 15218 13387 14032 13265 14123 11786 12590 10/02 12854 13696 13818 14501 12928 13650 12573 13294 12311 13095 12357 13222 13294 14310 13939 15063 14136 15256 14482 15525 14660 15827 14417 15659 10/03 15175 16544 15306 16690 16205 17564 16280 17887 16383 18135 16083 17862 15859 17582 16065 17822 16411 18169 15802 17567 15802 17638 15728 17829 10/04 15690 18101 16186 18834 16713 19474 16402 19000 16741 19399 16242 19056 16082 18695 16638 19289 16591 19317 17344 20035 17363 19852 17551 20013 10/05 17316 19679 18041 20422 18192 20430 18748 20971 18673 21027 18890 21289 19192 21575 18588 20955 18286 20982 18277 21112 18777 21613 19201 22170 10/06 19852 22892
--- STOCK FUND --- S&P 500 INDEX $9,450 starting value $10,000 starting value $19,852 ending value $22,892 ending value
S&P 500 INDEX is a market capitalization weighted price index composed of 500 widely held common stocks. You cannot invest directly in an index. 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 the investment adviser, without which performance would have been lower. For information on current expense waivers/reimbursements, please see the prospectus. AVERAGE ANNUAL TOTAL RETURNS(1,2) (as of 10/31/06)
INCEPTION 1 5 10 SINCE DATE YEAR YEAR YEAR INCEPTION ----------------------------------------------------------------- Stock A# 7/22/1996 14.65% 4.65% 7.70% 8.54% ----------------------------------------------------------------- Stock A## 7/22/1996 8.34% 3.48% 7.09% 7.94% ----------------------------------------------------------------- Stock B# 7/22/1996 13.64% 3.81% NA* NA* ----------------------------------------------------------------- Stock B## 7/22/1996 8.64% 3.46% NA* NA* ----------------------------------------------------------------- Stock C# 7/22/1996 13.72% 3.98% 6.97% 7.79% ----------------------------------------------------------------- Stock C## 7/22/1996 12.72% 3.98% 6.97% 7.79% ----------------------------------------------------------------- Stock Y# 7/22/1996 15.21% 5.24% 8.25% 9.08% -----------------------------------------------------------------
# Without sales charge ## With sales charge NA Not Applicable. * Inception returns are not applicable for Class B because after 8 years Class B converts to Class A. PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS. (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 shares reflects the maximum sales charge and Classes B and C reflect CDSC. (3) Growth of a $10,000 investment in Classes B, C and Y shares will vary from results seen above due to differences in the expenses charged to these share classes. PORTFOLIO MANAGERS STEVEN T. IRONS, CFA Senior Vice President, Partner PETER I. HIGGINS, CFA Vice President -------------------------------------------------------------------------------- HOW DID THE FUND PERFORM? The Class A shares of The Hartford Stock Fund returned 14.65%, before sales charges, for the twelve-month period ended October 31, 2006, underperforming its benchmark, the S&P 500 Index which returned 16.33% for the same period. However, the Fund outperformed the 14.23% return of the average fund in the Lipper Large Cap Core Funds peer group, a group of funds with investment strategies similar to those of the Fund. WHY DID THE FUND PERFORM THIS WAY? Despite weakening housing prices, concerns regarding the consumer and the Federal Reserve's monetary tightening, equity markets continue to show strength. The S&P 500 was up 16.33% for the reporting period and showed broad based strength, posting positive results in all ten sectors. Sector results were led by Telecommunication Services, Materials, and Energy. Information Technology, Health Care, and Consumer Staples all posted robust returns but lagged the general market. The Fund's performance versus the benchmark was driven primarily by security selection. Detracting from results was weak stock selection within the Consumer Discretionary, Health Care and Materials sectors. Stocks that detracted the most from relative returns included XM Satellite, Boston Scientific, Marvell Technology and Dollar General. Media company XM Satellite continues to come under pressure. Decelerating customer addition trends and regulatory review of product compliance have caused investors to question the market opportunity. The portfolio continues to hold the stock based on positive long-term trends in satellite radio due to original equipment manufacturer (OEM) adoption. Boston Scientific has had a tough year suffering from erosion of its Implantable Cardioverter Defibrillator (ICD) market share, concerns surrounding its drug eluting stent business, and continued issues with cardiac product recalls after its recently acquired Guidant business. We retain our position as the fundamentals of the company remain sound and the stock is attractively priced. Chip maker Marvell declined on disruption in the hard disk drive market and worries over stock option grants. Discount retailer Dollar General disappointed due to high gasoline prices hitting Dollar General customers and thus impacting the company's top line. Additionally, Dollar General has been selling more lower-margin "highly consumables" than anticipated. These are products like perishable foods and cleaning supplies are used up quickly by consumers and need to be replaced frequently, but carry thin margins. Other top contributors to the Fund's overall performance included Cisco Systems and Exxon Mobil. Stock selection contributed the most within the Information Technology and Financials sectors. Top relative contributors to the Fund included AT&T, UBS, Lexmark and Munich Re. AT&T is 77 -------------------------------------------------------------------------------- benefiting from the stabilization of its long distance pricing. Also, cost-cutting from its acquisitions are going well. UBS, the Swiss-based financial institution, posted outstanding results due primarily to its succeeding wealth management business. The firm has a superior business mix that leads to less volatility and should continue to be rewarded with higher multiples than the average broker. Shares in Lexmark, a manufacturer and supplier of printing and imaging solutions, rose as the company recovered from its product and distribution missteps last year. German reinsurance company Munich Re reported better-than-expected results due to higher profits from investments and fewer claims due to low levels of natural catastrophes. The company continues to generate good return on capital and improving capital management. WHAT IS THE OUTLOOK? The Fund continues to be managed with a large cap, core investment approach. We apply a bottom-up investment process in constructing a diversified portfolio and look for companies that exhibit industry leadership, strong balance sheets, solid management, high return on equity, accelerating earnings, and/or attractive valuation with a catalyst. Our bottom-up investment approach resulted in the Fund being overweight Information Technology, Health Care and Materials, and underweight Energy, Financials and Utilities at the end of the period. DIVERSIFICATION BY INDUSTRY as of October 31, 2006
PERCENTAGE OF INDUSTRY NET ASSETS ------------------------------------------------------------------- Basic Materials 5.7% ------------------------------------------------------------------- Capital Goods 3.8 ------------------------------------------------------------------- Consumer Cyclical 8.1 ------------------------------------------------------------------- Consumer Staples 5.3 ------------------------------------------------------------------- Energy 5.3 ------------------------------------------------------------------- Finance 21.1 ------------------------------------------------------------------- Health Care 12.1 ------------------------------------------------------------------- Services 9.8 ------------------------------------------------------------------- Technology 27.8 ------------------------------------------------------------------- Utilities 0.5 ------------------------------------------------------------------- Short-Term Investments 8.9 ------------------------------------------------------------------- Other Assets & Liabilities -8.4 ------------------------------------------------------------------- TOTAL 100.0% -------------------------------------------------------------------
78 The Hartford Target Retirement 2010 Fund (subadvised by Hartford Investment Management Company) INVESTMENT OBJECTIVE -- SEEKS TO MAXIMIZE TOTAL RETURN AND SECONDARILY, TO SEEK CAPITAL PRESERVATION. PERFORMANCE OVERVIEW(2) 9/30/05 - 10/31/06 Growth of a $10,000 investment in Class A which includes Sales Charge (LINE GRAPH)
LEHMAN BROTHERS U.S. TARGET RETIREMENT 2010 FUND AGGREGATE BOND INDEX S&P 500 INDEX --------------------------- -------------------- ------------- 9/30/05 9450 10000 10000 10/05 9280 9921 9833 11/05 9469 9965 10205 12/05 9507 10059 10208 1/06 9670 10060 10479 2/06 9650 10093 10507 3/06 9679 9994 10638 4/06 9782 9976 10780 5/06 9598 9966 10471 6/06 9570 9987 10484 7/06 9560 10122 10549 8/06 9714 10277 10800 9/06 9805 10367 11078 10/06 9970 10436 11439
--- TARGET RETIREMENT 2010 -- LEHMAN BROTHERS U.S. AGGREGATE --- S&P 500 INDEX FUND BOND INDEX $10,000 starting value $9,450 starting value $10,000 starting value $11,439 ending value $9,970 ending value $10,436 ending value
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 Index and Commercial Mortgage-Backed Securities Index. S&P 500 INDEX is a market capitalization weighted price index composed of 500 widely held common stocks. You cannot invest directly in an index. 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 distribution or the redemption of fund shares. Performance information may reflect historical or current expense waivers/reimbursements from the investment adviser, without which performance would have been lower. For information on current expense waivers/reimbursements, please see the prospectus. AVERAGE ANNUAL TOTAL RETURNS(1) (as of 10/31/06)
INCEPTION SINCE DATE 1 YEAR INCEPTION --------------------------------------------------------------- Target Retirement 2010 A# 9/30/2005 7.43% 5.06% --------------------------------------------------------------- Target Retirement 2010 A## 9/30/2005 1.52% -0.28% --------------------------------------------------------------- Target Retirement 2010 B# 9/30/2005 6.58% 4.29% --------------------------------------------------------------- Target Retirement 2010 B## 9/30/2005 1.58% 0.74% --------------------------------------------------------------- Target Retirement 2010 C# 9/30/2005 6.53% 4.24% --------------------------------------------------------------- Target Retirement 2010 C## 9/30/2005 5.53% 4.24% --------------------------------------------------------------- Target Retirement 2010 Y# 9/30/2005 7.62% 5.32% ---------------------------------------------------------------
# Without sales charge ## With sales charge PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS. (1) The initial investment in Class A shares reflects the maximum sales charge and Classes B and C reflect CDSC. (2) Growth of a $10,000 investment in Classes B, C and Y shares will vary from results seen above due to differences in the expenses charged to these share classes. PORTFOLIO MANAGERS WILLIAM DAVISON, CFA Senior Vice President CHRISTOPHER HANLON, CFA Senior Vice President HUGH WHELAN, CFA Executive Vice President -------------------------------------------------------------------------------- HOW DID THE FUND PERFORM? In this environment, The Hartford Target Retirement 2010 Fund (Class A) gained 7.43%, before sales charges, for the year ended October, 2006, versus the returns of 10.57% for the Lipper Mixed-Asset Target 2010 Funds peer group, 5.19% for the Lehman Brothers U.S. Aggregate Bond Index and 16.33% for the S&P 500 Index. WHY DID THE FUND PERFORM THIS WAY? The Fund's fiscal year, which ended October 31, 2006, began in a period of rising interest rates. Historically high energy and commodity prices, a boom in the housing market, and a strengthening economy led to concerns about rising inflation. To keep inflation in check, the Federal Reserve (the Fed) continued its cycle of monetary tightening (i.e. raising interest rates) that began in the summer of 2004. By June of 2006, the Fed had raised its Federal Funds Target Rate (Fed Funds Rate) 17 consecutive times, leaving the Fed Funds Rate at 5.25%. In response to the Fed's tightening, short- and intermediate-term bond yields rose through the first half of 2006. Thus, as interest rates rose, the principal value of these short- and intermediate-term bonds declined in response. In contrast, long-term bond yields did not rise as substantially due to overseas demand and expectations that the Fed could keep inflation low over the long run. The result was a yield curve that remained flat or even inverted (i.e. bonds with longer term maturities having a lower interest rate than bonds with shorter maturities) through most of the fiscal year. However, by August of 2006, the Fed became concerned that economic growth was slowing, in part due to the retreating housing market. As such, the Fed found itself in a conundrum as to whether it should continue raising interest rates to restrain inflation, or to pause in the tightening cycle to assess prospects for further economic growth. Since changes in the rate of inflation often lag changes in economic conditions, the Fed left rates unchanged at its two most recent meetings while it waited for more data before taking action. Sensing that the Fed would continue easing monetary policy, the bond and equity markets rallied in the last months of the fiscal year. While stocks, and in particular foreign and small cap stocks, performed strongly for the year, fixed income securities provided more modest gains. For the full 12 month period, value oriented stocks outpaced growth stocks. However, growth stocks did return to favor in the last few months of the fiscal year. Aided in part by 79 -------------------------------------------------------------------------------- favorable currency movements and strengthening foreign economies, the international and emerging market equity indices outperformed the major domestic indices for the year. Fortunately, the bond rally over the last few months offset the negative impact of rising interest rates earlier in the year, allowing the major bond sectors to finish with positive returns for the period. During much of the year, fixed income investors were unable to achieve higher levels of yield by going out longer on the yield curve (i.e. purchasing bonds with a longer maturity date). Thus, many bond investors shifted to lower quality and foreign issues as they sought greater yield. During the period, the traditionally "riskier" high yield and emerging markets bonds were among the strongest performers for the year. Based upon the Fund's design, the Fund's fixed income component typically is less sensitive to changes in interest rates than the Lehman benchmark. Additionally, the Fund's fixed income component was more defensive than normal this year, since the underlying fund managers generally assumed the bond markets were underestimating the potential for higher inflation. As interest rates declined during most of the fiscal year, the Fund's fixed income component delivered positive performance. However, the Fund's defensive stance did not allow it to participate fully in the bond rally that occurred late in the period, resulting in a substantial cost to relative performance. The Fund did, however, benefit from the out-of-index exposure to "spread" sectors and higher yielding securities. With the Dow Jones Industrial reaching its all-time high late in the period, the Fund also generated positive gains from its allocation to equities. The Fund is constructed such that it has exposure to the various styles of equities, including international, mid-cap and small cap stocks. This diversification is expected to enhance the long-term return and risk characteristics of the Fund. This added diversification benefited the Fund through most of the year. However, since domestic, large cap stocks dominated the stock rally late in the fiscal year, the Fund's exposure to foreign and smaller capitalization equities partially offset some of their earlier contributions. Overall the Fund's allocations were a positive factor. However, stock selection at the individual fund level and within the underlying funds appeared to detract from performance, in part due to the timing of cash flows that detracted from return. WHAT IS THE OUTLOOK? The recent rally in fixed-rate bonds has resulted in bond prices that reflect an environment of economic weakness that is not consistent with our view of the economy. Declines in interest rates and gasoline prices, coupled with a decent employment picture and gains in the stock market, should be supportive of continued consumer spending. While housing remains a wild card for the U.S. economy, our view is that the Federal Reserve is still concerned with inflation and that policy decisions will favor price stability as long as economic growth does not decline dramatically. In the coming months we will be closely watching the economy to determine the impact of a slower housing market on the U.S. consumer and what implications that has for the economy going forward. COMPOSITION BY UNDERLYING FUND as of October 31, 2006
PERCENTAGE OF FUND NAME NET ASSETS ------------------------------------------------------------------- Hartford Capital Appreciation Fund, Class Y 10.7% ------------------------------------------------------------------- Hartford Disciplined Equity Fund, Class Y 7.8 ------------------------------------------------------------------- Hartford Equity Income Fund, Class Y 0.9 ------------------------------------------------------------------- Hartford Floating Rate Fund, Class Y 5.5 ------------------------------------------------------------------- Hartford Global Leaders Fund, Class Y 2.2 ------------------------------------------------------------------- Hartford Growth Fund, Class Y 1.2 ------------------------------------------------------------------- Hartford Growth Opportunities Fund, Class Y 1.2 ------------------------------------------------------------------- Hartford High Yield Fund, Class Y 3.6 ------------------------------------------------------------------- Hartford Income Fund, Class Y 4.6 ------------------------------------------------------------------- Hartford Inflation Plus Fund, Class Y 9.0 ------------------------------------------------------------------- Hartford International Capital Appreciation Fund, Class Y 1.1 ------------------------------------------------------------------- Hartford International Opportunities Fund, Class Y 2.6 ------------------------------------------------------------------- Hartford International Small Company Fund, Class Y 2.9 ------------------------------------------------------------------- Hartford MidCap Value Fund, Class Y 1.1 ------------------------------------------------------------------- Hartford Select MidCap Growth Fund, Class Y 1.1 ------------------------------------------------------------------- Hartford Select MidCap Value Fund, Class Y 1.1 ------------------------------------------------------------------- Hartford Select SmallCap Value Fund, Class Y 2.7 ------------------------------------------------------------------- Hartford Short Duration Fund, Class Y 10.3 ------------------------------------------------------------------- Hartford Small Company Fund, Class Y 2.1 ------------------------------------------------------------------- Hartford SmallCap Growth Fund, Class Y 2.3 ------------------------------------------------------------------- Hartford Total Return Bond Fund, Class Y 9.2 ------------------------------------------------------------------- Hartford U.S. Government Securities Fund, Class Y 2.5 ------------------------------------------------------------------- Hartford Value Fund, Class Y 8.8 ------------------------------------------------------------------- Hartford Value Opportunities Fund, Class Y 4.0 ------------------------------------------------------------------- Other Assets & Liabilities 1.5 ------------------------------------------------------------------- TOTAL 100.0% -------------------------------------------------------------------
80 The Hartford Target Retirement 2020 Fund (subadvised by Hartford Investment Management Company) INVESTMENT OBJECTIVE -- SEEKS TO MAXIMIZE TOTAL RETURN AND SECONDARILY, TO SEEK CAPITAL PRESERVATION. PERFORMANCE OVERVIEW(2) 9/30/05 - 10/31/06 Growth of a $10,000 investment in Class A which includes Sales Charge (LINE GRAPH)
LEHMAN BROTHERS U.S. TARGET RETIREMENT 2020 FUND AGGREGATE BOND INDEX S&P 500 INDEX --------------------------- -------------------- ------------- 9/30/05 9450 10000 10000 10/05 9252 9921 9833 11/05 9469 9965 10205 12/05 9585 10059 10208 1/06 9857 10060 10479 2/06 9819 10093 10507 3/06 9904 9994 10638 4/06 10031 9976 10780 5/06 9778 9966 10471 6/06 9755 9987 10484 7/06 9707 10122 10549 8/06 9882 10277 10800 9/06 9986 10367 11078 10/06 10210 10436 11439
--- TARGET RETIREMENT 2020 -- LEHMAN BROTHERS U.S. AGGREGATE --- S&P 500 INDEX FUND BOND INDEX $10,000 starting value $9,450 starting value $10,000 starting value $11,439 ending value $10,210 ending value $10,436 ending value
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 Index and Commercial Mortgage-Backed Securities Index. S&P 500 INDEX is a market capitalization weighted price index composed of 500 widely held common stocks. You cannot invest directly in an index. 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 distribution or the redemption of fund shares. Performance information may reflect historical or current expense waivers/reimbursements from the investment adviser, without which performance would have been lower. For information on current expense waivers/reimbursements, please see the prospectus. AVERAGE ANNUAL TOTAL RETURNS(1) (as of 10/31/06)
INCEPTION SINCE DATE 1 YEAR INCEPTION --------------------------------------------------------------- Target Retirement 2020 A# 9/30/2005 10.37% 7.40% --------------------------------------------------------------- Target Retirement 2020 A## 9/30/2005 4.30% 1.94% --------------------------------------------------------------- Target Retirement 2020 B# 9/30/2005 9.56% 6.57% --------------------------------------------------------------- Target Retirement 2020 B## 9/30/2005 4.56% 2.90% --------------------------------------------------------------- Target Retirement 2020 C# 9/30/2005 9.58% 6.59% --------------------------------------------------------------- Target Retirement 2020 C## 9/30/2005 8.58% 6.59% --------------------------------------------------------------- Target Retirement 2020 Y# 9/30/2005 10.70% 7.69% ---------------------------------------------------------------
# Without sales charge ## With sales charge PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS. (1) The initial investment in Class A shares reflects the maximum sales charge and Classes B and C reflect CDSC. (2) Growth of a $10,000 investment in Classes B, C and Y shares will vary from results seen above due to differences in the expenses charged to these share classes. PORTFOLIO MANAGERS WILLIAM DAVISON, CFA Senior Vice President CHRISTOPHER HANLON, CFA Senior Vice President HUGH WHELAN, CFA Executive Vice President -------------------------------------------------------------------------------- HOW DID THE FUND PERFORM? The Hartford Target Retirement 2020 Fund (Class A) gained 10.37%, before sales charges, for the year ended October 31, 2006, versus the returns of 12.89% return for the Lipper Mixed-Asset Target 2020 Funds peer group, 5.19% for the Lehman Brothers U.S. Aggregate Bond Index and 16.33% for the S&P 500 Index. WHY DID THE FUND PERFORM THIS WAY? The Fund's fiscal year, which ended October 31, 2006, began in a period of rising interest rates. Historically high energy and commodity prices, a boom in the housing market, and a strengthening economy led to concerns about rising inflation. To keep inflation in check, the Federal Reserve (the Fed) continued its cycle of monetary tightening (i.e. raising interest rates) that began in the summer of 2004. By June of 2006, the Fed had raised its Federal Funds Target Rate (Fed Funds Rate) 17 consecutive times, leaving the Fed Funds Rate at 5.25%. In response to the Fed's tightening, short- and intermediate-term bond yields rose through the first half of 2006. Thus, as interest rates rose, the principal value of these short- and intermediate-term bonds declined in response. In contrast, long-term bond yields did not rise as substantially due to overseas demand and expectations that the Fed could keep inflation low over the long run. The result was a yield curve that remained flat or even inverted (i.e. bonds with longer term maturities having a lower interest rate than bonds with shorter maturities) through most of the fiscal year. However, by August of 2006, the Fed became concerned that economic growth was slowing, in part due to the retreating housing market. As such, the Fed found itself in a conundrum as to whether it should continue raising interest rates to restrain inflation, or to pause in the tightening cycle to assess prospects for further economic growth. Since changes in the rate of inflation often lag changes in economic conditions, the Fed left rates unchanged at its two most recent meetings while it waited for more data before taking action. Sensing that the Fed would continue easing monetary policy, the bond and equity markets rallied in the last months of the fiscal year. While stocks, and in particular foreign and small cap stocks, performed strongly for the year, fixed income securities provided more modest gains. For the full 12 month period, value oriented stocks outpaced growth stocks. However, growth stocks did return to favor in the last few months of the fiscal year. Aided in part by 81 -------------------------------------------------------------------------------- favorable currency movements and strengthening foreign economies, the international and emerging market equity indices outperformed the major domestic indices for the year. Fortunately, the bond rally over the last few months offset the negative impact of rising interest rates earlier in the year, allowing the major bond sectors to finish with positive returns for the period. During much of the year, fixed income investors were unable to achieve higher levels of yield by going out longer on the yield curve (i.e. purchasing bonds with a longer maturity date). Thus, many bond investors shifted to lower quality and foreign issues as they sought greater yield. During the period, the traditionally "riskier" high yield and emerging markets bonds were among the strongest performers for the year. Based upon the Fund's design, the Fund's fixed income component typically is less sensitive to changes in interest rates than the Lehman benchmark. Additionally, the Fund's fixed income component was more defensive than normal this year, since the underlying fund managers generally assumed the bond markets were underestimating the potential for higher inflation. As interest rates declined during most of the fiscal year, the Fund's fixed income component delivered positive performance. However, the Fund's defensive stance did not allow it to participate fully in the bond rally that occurred late in the period, resulting in a substantial cost to relative performance. The Fund did, however, benefit from the out-of-index exposure to "spread" sectors and higher yielding securities. With the Dow Jones Industrial reaching its all-time high late in the period, the Fund also generated positive gains from its allocation to equities. The Fund is constructed such that it has exposure to the various styles of equities, including international, mid-cap and small cap stocks. This diversification is expected to enhance the long-term return and risk characteristics of the Fund. This added diversification benefited the Fund through most of the year. However, since domestic, large cap stocks dominated the stock rally late in the fiscal year, the Fund's exposure to foreign and smaller capitalization equities partially offset some of their earlier contributions. Overall the Fund's allocations were a positive factor. However, stock selection at the individual fund level and within the underlying funds appeared to detract from performance, in part due to the timing of cash flows that detracted from return. WHAT IS THE OUTLOOK? The recent rally in fixed-rate bonds has resulted in bond prices that reflect an environment of economic weakness that is not consistent with our view of the economy. Declines in interest rates and gasoline prices, coupled with a decent employment picture and gains in the stock market, should be supportive of continued consumer spending. While housing remains a wild card for the U.S. economy, our view is that the Federal Reserve is still concerned with inflation and that policy decisions will favor price stability as long as economic growth does not decline dramatically. In the coming months we will be closely watching the economy to determine the impact of a slower housing market on the U.S. consumer and what implications that has for the economy going forward. COMPOSITION BY UNDERLYING FUND as of October 31, 2006
PERCENTAGE OF FUND NAME NET ASSETS ------------------------------------------------------------------- Hartford Capital Appreciation Fund, Class Y 14.5% ------------------------------------------------------------------- Hartford Disciplined Equity Fund, Class Y 7.5 ------------------------------------------------------------------- Hartford Equity Income Fund, Class Y 1.8 ------------------------------------------------------------------- Hartford Floating Rate Fund, Class Y 4.8 ------------------------------------------------------------------- Hartford Global Leaders Fund, Class Y 4.9 ------------------------------------------------------------------- Hartford Growth Fund, Class Y 1.5 ------------------------------------------------------------------- Hartford Growth Opportunities Fund, Class Y 1.6 ------------------------------------------------------------------- Hartford High Yield Fund, Class Y 1.0 ------------------------------------------------------------------- Hartford Income Fund, Class Y 9.2 ------------------------------------------------------------------- Hartford Inflation Plus Fund, Class Y 4.2 ------------------------------------------------------------------- Hartford International Capital Appreciation Fund, Class Y 0.4 ------------------------------------------------------------------- Hartford International Opportunities Fund, Class Y 1.5 ------------------------------------------------------------------- Hartford International Small Company Fund, Class Y 3.8 ------------------------------------------------------------------- Hartford MidCap Value Fund, Class Y 0.3 ------------------------------------------------------------------- Hartford Select MidCap Growth Fund, Class Y 0.4 ------------------------------------------------------------------- Hartford Select MidCap Value Fund, Class Y 1.0 ------------------------------------------------------------------- Hartford Select SmallCap Value Fund, Class Y 0.6 ------------------------------------------------------------------- Hartford Select SmallCap Growth Fund, Class Y 0.1 ------------------------------------------------------------------- Hartford Short Duration Fund, Class Y 9.9 ------------------------------------------------------------------- Hartford Small Company Fund, Class Y 2.9 ------------------------------------------------------------------- Hartford SmallCap Growth Fund, Class Y 2.9 ------------------------------------------------------------------- Hartford Total Return Bond Fund, Class Y 6.3 ------------------------------------------------------------------- Hartford Value Fund, Class Y 13.6 ------------------------------------------------------------------- Hartford Value Opportunities Fund, Class Y 4.0 ------------------------------------------------------------------- Other Assets & Liabilities 1.3 ------------------------------------------------------------------- TOTAL 100.0% -------------------------------------------------------------------
82 The Hartford Target Retirement 2030 Fund (subadvised by Hartford Investment Management Company) INVESTMENT OBJECTIVE -- SEEKS TO MAXIMIZE TOTAL RETURN AND SECONDARILY, TO SEEK CAPITAL PRESERVATION. PERFORMANCE OVERVIEW(2) 9/30/05 - 10/31/06 Growth of a $10,000 investment in Class A which includes Sales Charge (LINE GRAPH)
LEHMAN BROTHERS U.S. TARGET RETIREMENT 2030 FUND S&P 500 INDEX AGGREGATE BOND INDEX --------------------------- ------------- -------------------- 9/30/05 9450 10000 10000 10/05 9214 9833 9921 11/05 9507 10205 9965 12/05 9551 10208 10059 1/06 9832 10479 10060 2/06 9778 10507 10093 3/06 9886 10638 9994 4/06 9995 10780 9976 5/06 9692 10471 9966 6/06 9670 10484 9987 7/06 9595 10549 10122 8/06 9768 10800 10277 9/06 9876 11078 10367 10/06 10136 11439 10436
--- TARGET RETIREMENT 2030 -- LEHMAN BROTHERS U.S. AGGREGATE --- S&P 500 INDEX FUND BOND INDEX $10,000 starting value $9,450 starting value $10,000 starting value $11,439 ending value $10,136 ending value $10,436 ending value
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 Index and Commercial Mortgage-Backed Securities Index. S&P 500 INDEX is a market capitalization weighted price index composed of 500 widely held common stocks. You cannot invest directly in an index. 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 distribution or the redemption of fund shares. Performance information may reflect historical or current expense waivers/reimbursements from the investment adviser, without which performance would have been lower. For information on current expense waivers/reimbursements, please see the prospectus. AVERAGE ANNUAL TOTAL RETURNS(1) (as of 10/31/06)
INCEPTION SINCE DATE 1 YEAR INCEPTION ------------------------------------------------------------------ Target Retirement 2030 A# 9/30/2005 10.00% 6.67% ------------------------------------------------------------------ Target Retirement 2030 A## 9/30/2005 3.95% 1.25% ------------------------------------------------------------------ Target Retirement 2030 B# 9/30/2005 9.22% 5.86% ------------------------------------------------------------------ Target Retirement 2030 B## 9/30/2005 4.22% 2.42% ------------------------------------------------------------------ Target Retirement 2030 C# 9/30/2005 9.35% 5.98% ------------------------------------------------------------------ Target Retirement 2030 C## 9/30/2005 8.35% 5.98% ------------------------------------------------------------------ Target Retirement 2030 Y# 9/30/2005 10.40% 7.02% ------------------------------------------------------------------
# Without sales charge ## With sales charge PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS. (1) The initial investment in Class A shares reflects the maximum sales charge and Classes B and C reflect CDSC. (2) Growth of a $10,000 investment in Classes B, C and Y shares will vary from results seen above due to differences in the expenses charged to these share classes. PORTFOLIO MANAGERS WILLIAM DAVISON, CFA Senior Vice President CHRISTOPHER HANLON, CFA Senior Vice President HUGH WHELAN, CFA Executive Vice President -------------------------------------------------------------------------------- HOW DID THE FUND PERFORM? In this environment, The Hartford Target Retirement 2030 Fund (Class A) gained 10.00%, before sales charges, for the year ended October 31, 2006, versus the returns of 14.94% return of the Lipper Mixed-Asset Target 2030 Funds peer group, 5.19% for the Lehman Brothers U.S. Aggregate Bond Index and 16.33% for the S&P 500 Index. WHY DID THE FUND PERFORM THIS WAY? The Fund's fiscal year, which ended October 31, 2006, began in a period of rising interest rates. Historically high energy and commodity prices, a boom in the housing market, and a strengthening economy led to concerns about rising inflation. To keep inflation in check, the Federal Reserve (the Fed) continued its cycle of monetary tightening (i.e. raising interest rates) that began in the summer of 2004. By June of 2006, the Fed had raised its Federal Funds Target Rate (Fed Funds Rate) 17 consecutive times, leaving the Fed Funds Rate at 5.25%. In response to the Fed's tightening, short- and intermediate-term bond yields rose through the first half of 2006. Thus, as interest rates rose, the principal value of these short- and intermediate-term bonds declined in response. In contrast, long-term bond yields did not rise as substantially due to overseas demand and expectations that the Fed could keep inflation low over the long run. The result was a yield curve that remained flat or even inverted (i.e. bonds with longer term maturities having a lower interest rate than bonds with shorter maturities) through most of the fiscal year. However, by August of 2006, the Fed became concerned that economic growth was slowing, in part due to the retreating housing market. As such, the Fed found itself in a conundrum as to whether it should continue raising interest rates to restrain inflation, or to pause in the tightening cycle to assess prospects for further economic growth. Since changes in the rate of inflation often lag changes in economic conditions, the Fed left rates unchanged at its two most recent meetings while it waited for more data before taking action. Sensing that the Fed would continue easing monetary policy, the bond and equity markets rallied in the last months of the fiscal year. While stocks, and in particular foreign and small cap stocks, performed strongly for the year, fixed income securities provided more modest gains. For the full 12 month period, value oriented stocks outpaced growth stocks. However, growth stocks did return to favor in the last few months of the fiscal year. Aided in part by 83 -------------------------------------------------------------------------------- favorable currency movements and strengthening foreign economies, the international and emerging market equity indices outperformed the major domestic indices for the year. Fortunately, the bond rally over the last few months offset the negative impact of rising interest rates earlier in the year, allowing the major bond sectors to finish with positive returns for the period. During much of the year, fixed income investors were unable to achieve higher levels of yield by going out longer on the yield curve (i.e. purchasing bonds with a longer maturity date). Thus, many bond investors shifted to lower quality and foreign issues as they sought greater yield. During the period, the traditionally "riskier" high yield and emerging markets bonds were among the strongest performers for the year. Based upon the Fund's design, the Fund's fixed income component typically is less sensitive to changes in interest rates than the Lehman benchmark. Additionally, the Fund's fixed income component was more defensive than normal this year, since the underlying fund managers generally assumed the bond markets were underestimating the potential for higher inflation. As interest rates declined during most of the fiscal year, the Fund's fixed income component delivered positive performance. However, the Fund's defensive stance did not allow it to participate fully in the bond rally that occurred late in the period, resulting in a substantial cost to relative performance. The Fund did, however, benefit from the out-of-index exposure to "spread" sectors and higher yielding securities. With the Dow Jones Industrial reaching its all-time high late in the period, the Fund also generated positive gains from its allocation to equities. The Fund is constructed such that it has exposure to the various styles of equities, including international, mid-cap and small cap stocks. This diversification is expected to enhance the long-term return and risk characteristics of the Fund. This added diversification benefited the Fund through most of the year. However, since domestic, large cap stocks dominated the stock rally late in the fiscal year, the Fund's exposure to foreign and smaller capitalization equities partially offset some of their earlier contributions. Overall the Fund's allocations were a positive factor. However, stock selection at the individual fund level and within the underlying funds appeared to detract from performance, in part due to the timing of cash flows that detracted from return. WHAT IS THE OUTLOOK? The recent rally in fixed-rate bonds has resulted in bond prices that reflect an environment of economic weakness that is not consistent with our view of the economy. Declines in interest rates and gasoline prices, coupled with a decent employment picture and gains in the stock market, should be supportive of continued consumer spending. While housing remains a wild card for the U.S. economy, our view is that the Federal Reserve is still concerned with inflation and that policy decisions will favor price stability as long as economic growth does not decline dramatically. In the coming months we will be closely watching the economy to determine the impact of a slower housing market on the U.S. consumer and what implications that has for the economy going forward. COMPOSITION BY UNDERLYING FUND as of October 31, 2006
PERCENTAGE OF FUND NAME NET ASSETS ------------------------------------------------------------------- Hartford Capital Appreciation Fund, Class Y 15.8% ------------------------------------------------------------------- Hartford Disciplined Equity Fund, Class Y 11.6 ------------------------------------------------------------------- Hartford Equity Income Fund, Class Y 2.5 ------------------------------------------------------------------- Hartford Global Leaders Fund, Class Y 8.5 ------------------------------------------------------------------- Hartford Growth Fund, Class Y 0.5 ------------------------------------------------------------------- Hartford Growth Opportunities Fund, Class Y 3.2 ------------------------------------------------------------------- Hartford Income Fund, Class Y 1.2 ------------------------------------------------------------------- Hartford Inflation Plus Fund, Class Y 4.9 ------------------------------------------------------------------- Hartford International Capital Appreciation Fund, Class Y 0.4 ------------------------------------------------------------------- Hartford International Opportunities Fund, Class Y 0.2 ------------------------------------------------------------------- Hartford International Small Company Fund, Class Y 3.5 ------------------------------------------------------------------- Hartford MidCap Value Fund, Class Y 0.3 ------------------------------------------------------------------- Hartford Select MidCap Growth Fund, Class Y 0.5 ------------------------------------------------------------------- Hartford Select MidCap Value Fund, Class Y 0.7 ------------------------------------------------------------------- Hartford Select SmallCap Growth Fund, Class Y 2.2 ------------------------------------------------------------------- Hartford Short Duration Fund, Class Y 6.9 ------------------------------------------------------------------- Hartford Small Company Fund, Class Y 8.0 ------------------------------------------------------------------- Hartford SmallCap Growth Fund, Class Y 3.6 ------------------------------------------------------------------- Hartford Total Return Bond Fund, Class Y 8.4 ------------------------------------------------------------------- Hartford Value Fund, Class Y 9.8 ------------------------------------------------------------------- Hartford Value Opportunities Fund, Class Y 5.3 ------------------------------------------------------------------- Other Assets & Liabilities 2.0 ------------------------------------------------------------------- TOTAL 100.0% -------------------------------------------------------------------
84 The Hartford Tax-Free California Fund (subadvised by Hartford Investment Management Company) INVESTMENT OBJECTIVE -- SEEKS TO PROVIDE CURRENT INCOME EXEMPT FROM BOTH FEDERAL AND CALIFORNIA INCOME TAX. PERFORMANCE OVERVIEW(2) 10/31/02 - 10/31/06 Growth of a $10,000 investment in Class A which includes Sales Charge (LINE GRAPH)
LEHMAN BROTHERS CALIFORNIA MUNICIPAL TAX-FREE CALIFORNIA FUND BOND INDEX ------------------------ ------------------------------------ 10/31/02 9550 10000 9477 9985 9718 10166 9619 10116 9813 10269 9805 10274 9863 10339 10115 10587 10000 10506 9437 10111 9540 10193 9868 10486 10/03 9842 10448 9990 10575 10087 10660 10141 10725 10335 10903 10318 10878 10017 10608 9969 10568 10023 10636 10189 10777 10479 11013 10542 11072 10/04 10644 11186 10550 11104 10706 11247 10831 11375 10790 11340 10727 11264 10924 11449 11009 11532 11097 11617 11047 11574 11167 11701 11097 11631 10/05 11036 11556 11090 11614 11189 11714 11202 11749 11288 11837 11213 11758 11213 11740 11269 11800 11227 11758 11374 11909 11532 12089 11612 12167 10/06 11713 12253
--- TAX-FREE CALIFORNIA FUND --- LEHMAN BROTHERS CALIFORNIA MUNICIPAL $9,550 starting value BOND INDEX $11,713 ending value $10,000 starting value $12,253 ending value
LEHMAN BROTHERS CALIFORNIA MUNICIPAL BOND INDEX is an unmanaged index of municipal bonds issued by the State of California with maturities greater than two years. You cannot invest directly in an index. 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 the investment adviser, without which performance would have been lower. For information on current expense waivers/reimbursements, please see the prospectus. PORTFOLIO MANAGER Charles Grande Senior Vice President AVERAGE ANNUAL TOTAL RETURNS(1) (as of 10/31/06)
INCEPTION SINCE DATE 1 YEAR INCEPTION ---------------------------------------------------- California A# 10/31/2002 6.13% 5.23% ---------------------------------------------------- California A## 10/31/2002 1.36% 4.03% ---------------------------------------------------- California B# 10/31/2002 5.34% 4.45% ---------------------------------------------------- California B## 10/31/2002 0.34% 3.78% ---------------------------------------------------- California C# 10/31/2002 5.33% 4.49% ---------------------------------------------------- California C## 10/31/2002 4.33% 4.49% ----------------------------------------------------
# Without sales charge ## With sales charge PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS. (1) The initial investment in Class A shares reflects the maximum sales charge and Classes B and C reflect CDSC. (2) Growth of a $10,000 investment in Classes B and C shares will vary from results seen above due to differences in the expenses charged to these share classes. -------------------------------------------------------------------------------- HOW DID THE FUND PERFORM? The Hartford Tax-Free California Fund (Class A) gained 6.13%, before sales charges, for the year ended October 31, 2006, outpacing its benchmark, the Lehman Brothers California Municipal Bond Index, which returned 6.03%. The Fund also outperformed the 5.51% average return of the Lipper California Municipal Debt Funds peer group, a group of funds with investment strategies similar to those of the Fund. WHY DID THE FUND PERFORM THIS WAY? In general, it was a good year (fiscal year ending 10/31/06) for the bond market despite the early bias towards higher rates (lower prices) due to continued economic growth and the Federal Reserve Bank's tightening campaign. Early in the year many commodities reached historical highs and the price of oil approached record levels. To keep inflation in check, the Federal Reserve Bank (the Fed) continued its cycle of monetary tightening that began in the summer of 2004. By June of 2006, the Fed had raised its Federal Funds Target Rate 17 consecutive times, leaving the rate at 5.25%. In response to the increases in the Federal Funds Target Rate, short- and intermediate-term bond yields rose through the first half of 2006. Thus, as interest rates rose, the value of bonds declined. Due to technical factors (limited supply versus greater demand), long-term bond yields did not rise as significantly as shorter maturity debt. The market now finds itself with an inverted yield curve (short interest rates are higher than long interest rates). The tax-exempt yield curve performed similarly to the taxable curve, but for one significant factor -- the municipal yield curve remains steep and has not inverted. The net result is a tax-exempt yield curve that flattened during most of the fiscal year. By August of 2006, the Fed, believing it now had inflation under control, turned its focus on concerns that economic growth was slowing. This new focus was supported by a belief that strong housing market growth was now retreating. The Fed found itself in a conundrum as to whether it should continue raising interest rates to restrain inflation, or pause the tightening cycle to assess prospects for the economy. Since changes in the rate of inflation often lag changes in economic conditions, the Fed has held rates steady at its two most recent meetings. Sensing that the Fed was now on hold for increasing rates, and in fact may have to lower rates to spur the economy along, the bond markets rallied in the final months of the fiscal year and investors sent yields lower (prices higher). The Fund demonstrated good performance both relative to its benchmark and within its peer group. Away from actions taken by the Fed, one of the primary drivers of market performance was the technical imbalance (demand greater than supply). The demand 85 -------------------------------------------------------------------------------- for municipal securities remained strong throughout the year versus a decline in municipal issuance. By fiscal year end, municipal issuance was down 12% compared to the prior year. The lack of issuance was even more acute in the State of California where we estimate a decline of almost 20% for the year. Robust demand has been exhibited by traditional buyers (insurance companies, mutual funds) awash in cash from strong earnings and positive mutual fund cash flows. Non-traditional investors (arbitrage/hedge funds) continued to demonstrate good demand as these buyers took advantage of "carry trades" in the municipal market. (A carry trade is when an investor makes a spread (or profit) based on the steepness of the curve by borrowing at the short-term rate (lower cost of funds) and purchasing longer maturity bonds and receiving the higher rate. The difference between the long and short end rates is the "carry." Of course, the investor will only execute this trade when there is positive carry (i.e. steep curve)). Although municipal bonds historically have lagged the performance of the taxable fixed income bonds when interest rates have fallen, this was not the case in 2006. The municipal bond market tracked the positive performance of the taxable market for most of the year. The primary drivers of the Fund's performance have been duration extension and curve positioning through increased exposure to the longer maturity bonds (25+ years), exposure to higher yielding bonds and the tightening of credit spreads. However, exposure to short maturity bonds hurt performance as the long end of the municipal curve experienced greater positive performance. Fund duration increased to almost 7 years, up from 6.91 in 2005. Extending duration as interest rates fell late in the fiscal year contributed positively to performance. Because this strategy increases the Fund's sensitivity to movements in interest rates, it could hurt future performance should interest rates reverse and begin to increase. Curve positioning also contributed positively to Fund performance. One of our basic themes has been to take advantage of a lack of substantial issuance of long maturity debt. The Fund's exposure to long maturity municipal debt benefited both incremental yield and total return performance. Mutual fund demand for maximum yield long maturity debt has been especially strong throughout the year. At times, the Fund's exposure to variable rate daily and weekly resetting coupon securities has been a drag on performance. A reduction in exposure to these securities would have reduced the negative effect of holding these securities. The Fund's exposure to triple-B and double-B rated securities also contributed positively to performance. During the year, the Fund increased its exposure to double-B rated securities to 16% from 13%. Throughout the year, as interest rates declined, there has been increased demand for higher yielding debt. Since the beginning of the fiscal year, high yield issuance has been limited and the performance of this particular sector has been especially strong. However in contrast, holding insured bonds in the Fund has been a drag on performance. While we prefer holding uninsured, non-investment grade bonds for the incremental yield, this strategy may be a drag on future performance should a "flight to quality" ensue. Current positive economic conditions at both the state and local levels have allowed credit fundamentals for lower quality credits to improve. Significant exposures to the "Education" and "Special Tax" sectors particularly benefited the Fund's performance. Strong demand for the services and products these sectors represent and the positive demographic trends have resulted in good credit performance and positive total return. We recognize the risk of a weakening housing market and have increased our credit selectivity when making new purchases to bonds with exposure to housing construction (Special Tax Bonds). (A special tax bond is a bond secured by special assessment taxes levied on certain real estate). The Fund's exposure to "Tobacco Bonds" also contributed to performance as the tobacco sector continues to provide good total return. We favor these bonds due to the reduced headline risk caused by legal challenges to the tobacco industry as well as for the incremental yield provided by these bonds. Earlier in the year, the Fund's exposure to the Commonwealth of Puerto Rico had been a drag on performance as credit spreads widened due to a deteriorating fiscal position and a limited closure of some of the Commonwealth's governmental services. We opted to reduce the Fund's exposure to this credit, until a long-term solution to the Commonwealth's financial crisis is crafted. We remain cautious on high yield credits due to a slowing economy and tighter credit spreads. Although the tighter credit spreads helped performance to existing exposure, we believe we are not fairly compensated for the risk of purchasing new exposure. Thus, we favor trading up in credit quality for more reasonably priced bonds. WHAT IS THE OUTLOOK? At year end, technical conditions have changed slightly with a temporary surge in the supply of municipal bonds. For the foreseeable future, we expect demand to remain robust and to outweigh supply. Specifically, the demand from non-traditional buyers should remain strong given the opportunities the municipal market offers these buyers with a municipal curve that remains steeper than most other taxable curves. Non-traditional buyers play an important role in our assessment of the future performance by the municipal market. Until non-traditional buyers find a better alternative, their presence and demand for municipal bonds will assist municipal market out performance. We still prefer going out longer on the municipal curve for incremental yield. The conclusion of the recent election cycle and resulting Congress leave expectations for limited reductions in future taxes. If anything, we expect future federal tax increases, which will contribute to the municipal markets' out performance because of the attractiveness of the federal, state and local tax exemption provided by municipal investments. Additional federal policy shifts in health care funding could hold negative consequences for the entire health care sector. California government appears to be in a stable position due to the re-election of many of the same governmental officials. Current credit conditions for both state and local governments appear stable as we believe we have not reached the end of this favorable credit cycle despite concerns of a slowing economy. However, our outlook for high yield credit remains more cautious, especially for Special Tax bonds. These non-rated bonds provide good incremental yield, but also represent exposure to the general housing slowdown and California's housing market that is notorious for 86 -------------------------------------------------------------------------------- "boom/bust" cycles. Going forward, we will remain very selective in our purchases of lower quality debt, especially given that the currently tight credit spreads do not compensate investors for the additional risk. When possible, we will trade up in credit quality to protect against credit-related underperformance when spreads eventually widen again. DISTRIBUTION BY CREDIT QUALITY as of October 31, 2006
PERCENTAGE OF RATING LONG-TERM HOLDINGS ------------------------------------------------------------------- AAA 26.0% ------------------------------------------------------------------- AA 10.9 ------------------------------------------------------------------- A 19.9 ------------------------------------------------------------------- BBB 21.9 ------------------------------------------------------------------- BB 0.9 ------------------------------------------------------------------- NR 20.4 ------------------------------------------------------------------- TOTAL 100.0% -------------------------------------------------------------------
DIVERSIFICATION BY INDUSTRY as of October 31, 2006
PERCENTAGE OF INDUSTRY NET ASSETS ------------------------------------------------------------------- General Obligations 10.2% ------------------------------------------------------------------- Health Care/Services 5.2 ------------------------------------------------------------------- Higher Education (Univ., Dorms, etc.) 17.6 ------------------------------------------------------------------- Housing (HFA's, etc.) 2.8 ------------------------------------------------------------------- Land Development 6.4 ------------------------------------------------------------------- Miscellaneous 30.8 ------------------------------------------------------------------- Pollution Control 0.8 ------------------------------------------------------------------- Public Facilities 7.5 ------------------------------------------------------------------- Transportation 0.6 ------------------------------------------------------------------- Utilities -- Combined 0.9 ------------------------------------------------------------------- Utilities -- Gas 1.1 ------------------------------------------------------------------- Utilities -- Water and Sewer 9.6 ------------------------------------------------------------------- Waste Disposal 1.3 ------------------------------------------------------------------- Short-Term Investments 4.6 ------------------------------------------------------------------- Other Assets & Liabilities 0.6 ------------------------------------------------------------------- TOTAL 100.0% -------------------------------------------------------------------
87 The Hartford Tax-Free Minnesota Fund (subadvised by Hartford Investment Management Company) INVESTMENT OBJECTIVE -- SEEKS TO PROVIDE CURRENT INCOME EXEMPT FROM BOTH FEDERAL INCOME TAX AND MINNESOTA STATE PERSONAL INCOME TAX. PERFORMANCE OVERVIEW(1,3) 10/31/96 - 10/31/06 Growth of a $10,000 investment in Class A which includes Sales Charge (LINE GRAPH)
LEHMAN BROTHERS MUNICIPAL BOND TAX-FREE MINNESOTA FUND INDEX ----------------------- ------------------------------ 10/31/96 9550 10000 9684 10183 9652 10140 9655 10159 9734 10253 9606 10116 9685 10201 9813 10354 9912 10464 10145 10754 10034 10653 10144 10780 10/97 10206 10849 10259 10913 10401 11072 10492 11186 10475 11190 10478 11200 10422 11149 10584 11326 10618 11370 10641 11399 10846 11575 10981 11719 10/98 10933 11719 10977 11760 11000 11790 11106 11930 11054 11878 11045 11894 11077 11924 10991 11855 10851 11684 10882 11727 10806 11633 10794 11638 10/99 10673 11511 10771 11634 10717 11547 10662 11497 10795 11630 10974 11885 10909 11814 10844 11753 11083 12064 11222 12232 11384 12421 11319 12356 10/00 11448 12491 11532 12585 11846 12896 11919 13024 11969 13066 12052 13183 11889 13040 12031 13180 12099 13268 12277 13465 12458 13687 12403 13641 10/01 12569 13803 12411 13687 12284 13558 12459 13793 12523 13959 12311 13685 12539 13953 12599 14038 12744 14186 12890 14368 13025 14541 13297 14860 10/02 13028 14613 12936 14553 13240 14860 13178 14822 13379 15029 13368 15038 13422 15138 13780 15492 13705 15426 13156 14886 13238 14997 13681 15438 10/03 13580 15361 13740 15521 13874 15649 13931 15739 14146 15976 14124 15920 13781 15543 13745 15487 13776 15543 13956 15747 14244 16063 14331 16148 10/04 14444 16287 14308 16153 14492 16350 14607 16503 14552 16448 14456 16345 14667 16602 14769 16720 14833 16823 14755 16747 14918 16916 14795 16802 10/05 14684 16700 14755 16780 14861 16925 14896 16971 14989 17085 14892 16967 14882 16961 14960 17036 14907 16972 15063 17174 15278 17429 15388 17550 10/06 15471 17660
--- TAX-FREE MINNESOTA FUND --- LEHMAN BROTHERS MUNICIPAL BOND INDEX $9,550 starting value $10,000 starting value $15,471 ending value $17,660 ending value
LEHMAN BROTHERS MUNICIPAL BOND INDEX is an unmanaged index of municipal bonds with maturities greater than two years. You cannot invest directly in an index. 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 the investment adviser, without which performance would have been lower. For information on current expense waivers/reimbursements, please see the prospectus. PORTFOLIO MANAGER CHARLES GRANDE Senior Vice President AVERAGE ANNUAL TOTAL RETURNS(1,2) (as of 10/31/06)
INCEPTION 1 5 10 SINCE DATE YEAR YEAR YEAR INCEPTION ------------------------------------------------------------------- Minnesota A# 6/2/1986 5.35% 4.24% 4.94% 5.88% ------------------------------------------------------------------- Minnesota A## 6/2/1986 0.61% 3.28% 4.46% 5.64% ------------------------------------------------------------------- Minnesota B# 11/14/1994 4.65% 3.58% NA* NA* ------------------------------------------------------------------- Minnesota B## 11/14/1994 -0.35% 3.23% NA* NA* ------------------------------------------------------------------- Minnesota C# 11/14/1994 4.65% 3.57% 4.09% 4.84% ------------------------------------------------------------------- Minnesota C## 11/14/1994 3.65% 3.57% 4.09% 4.84% ------------------------------------------------------------------- Minnesota E# 6/2/1986 5.32% 4.53% 5.08% 5.95% ------------------------------------------------------------------- Minnesota E## 6/2/1986 0.58% 3.57% 4.60% 5.71% ------------------------------------------------------------------- Minnesota H# 11/14/1994 4.63% 3.64% NA* NA* ------------------------------------------------------------------- Minnesota H## 11/14/1994 0.63% 3.29% NA* NA* ------------------------------------------------------------------- Minnesota L# 11/14/1994 5.38% 4.38% 4.88% 5.62% ------------------------------------------------------------------- Minnesota L## 11/14/1994 0.64% 3.42% 4.40% 5.22% ------------------------------------------------------------------- Minnesota M# 11/14/1994 4.63% 3.66% NA* NA* ------------------------------------------------------------------- Minnesota M## 11/14/1994 0.63% 3.31% NA* NA* ------------------------------------------------------------------- Minnesota N# 11/14/1994 4.63% 3.62% 4.12% 4.86% ------------------------------------------------------------------- Minnesota N## 11/14/1994 3.63% 3.62% 4.12% 4.86% ------------------------------------------------------------------- Minnesota Y# 2/19/2002 5.44% NA NA 4.90% -------------------------------------------------------------------
# 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. (1) Classes A, B and C were offered beginning on February 19, 2002. Performance prior to that date is that of the fund's Classes E, M and N shares, respectively, which have lower operating expenses. Performance prior to February 19, 2002 would have been lower if Classes A, B and C shares expenses were applied during that period. (2) The initial investment in Classes A, E and L shares reflects the maximum sales charge and Classes B, C, H, M and N reflect CDSC. (3) Growth of a $10,000 investment in Classes B, C, E, H, L, M, N and Y shares will vary from results seen above due to differences in the expenses charged to these share classes. -------------------------------------------------------------------------------- HOW DID THE FUND PERFORM? The Hartford Tax-Free Minnesota Fund (Class A) gained 5.35%, before sales charges, for the year ended October 31, 2006, underperformed its benchmark, the Lehman Brothers Municipal Bond Index, which returned 5.75%. The Fund outperformed the 4.96% average return of the Lipper Minnesota Municipal Debt Funds peer group, a group of funds with investment strategies similar to those of the Fund. WHY DID THE FUND PERFORM THIS WAY? In general, it was a good year (fiscal year ending 10/31/06) for the bond market despite the early bias towards higher rates (lower prices) due to continued economic growth and the Federal Reserve Bank's (the Fed) tightening campaign (i.e. raising interest rates). Early in the year many commodities reached historical highs and the price of oil approached record levels. To keep inflation in check, the Fed continued its cycle of monetary tightening that began in the summer of 2004. By June of 2006, the Fed had raised its Federal Funds Target Rate 17 consecutive times, leaving the rate at 5.25%. In response to the increases in the Federal Funds Target Rate, short- and intermediate-term bond yields rose through the first half of 2006. Thus, as interest rates rose, the value of bonds declined. Due to technical factors (limited supply versus greater demand), long-term bond yields did not rise as significantly as shorter maturity debt. The market now finds itself with an inverted yield curve (short interest rates are higher than long interest rates). The tax-exempt yield curve performed similarly to the taxable curve, but for one significant factor -- the municipal yield curve remains steep and has not inverted. The net result is a tax-exempt yield curve that flattened during most of the fiscal year. By August of 2006, the Fed believing it now had inflation under control, turned its focus on concerns that economic growth was slowing. This new focus was supported by a belief that strong housing market growth was now retreating. The Fed found itself in a conundrum as to whether it should continue raising interest rates to restrain inflation, or pause the tightening cycle to assess prospects for the economy. Since changes in the rate of inflation often lag changes in economic conditions, the Fed has held rates steady at its two most recent meetings. Sensing that the Fed was now on hold for increasing rates, and in fact may have to lower rates to spur the economy along, the bond markets rallied in 88 -------------------------------------------------------------------------------- the final months of the fiscal year and investors sent yields lower (prices higher). The Fund demonstrated good performance both relative to its benchmark and within its peer group. Away from actions taken by the Fed, one of the primary drivers of market performance was the technical imbalance (demand greater than supply). The demand for municipal securities remained strong throughout the year versus a decline in municipal issuance. By fiscal year end, municipal issuance was down 12% compared to the prior year. The lack of issuance was even more acute in the State of Minnesota where we estimate a decline of 33% for the year. Robust demand has been exhibited by traditional buyers (insurance companies, mutual funds) awash in cash from strong earnings and positive mutual fund cash flows. Non-traditional investors (arbitrage/hedge funds) continued to demonstrate good demand as these buyers took advantage of "carry trades" in the municipal market. (A carry trade is when an investor makes a spread (or profit) based on the steepness of the curve by borrowing at the short-term rate (lower cost of funds) and purchasing longer maturity bonds and receiving the higher rate. The difference between the long and short end rates is the "carry." Of course, investor will only execute this trade when there is positive carry (i.e. steep curve). Although municipal bonds historically have lagged the performance of the taxable fixed income bonds when interest rates have fallen, this was not the case in 2006. The municipal bond market tracked the positive performance of the taxable market for most of the year. The primary drivers of the Fund's performance have been duration extension and curve positioning through increased exposure to the longer maturity bonds (25+ years), exposure to higher yielding bonds (triple-B and double-B rated) and the tightening of credit spreads, and the active reduction of the Fund's exposure to shorter maturity bonds. As interest rates fell, we actively sold the Fund's exposure to short maturity bonds in favor of buying longer maturity bonds. However, we would have preferred extending out further on the interest rate curve, but the lack of supply in the State has made this strategy difficult and thus hindered performance. This will remain a challenge for us as we continue to execute this strategy. Nonetheless, the Fund's duration still increased from 6.45 years in 2005 to 6.53 years in 2006. Extending duration as interest rates fell late in the fiscal year contributed positively to performance. Because this strategy increases the Fund's sensitivity to movements in interest rates, it could hurt future performance should interest rates reverse and begin to increase. Curve positioning also contributed to the Fund's performance although being out longer on the curve would have enhanced performance. One of our basic themes has been to take advantage of a lack of substantial issuance of long maturity debt. The Fund's exposure to the long maturity municipal debt benefited incremental yield and total return performance. Demand for maximum yield long maturity debt has been especially strong throughout the year. At times, the Fund's exposure to variable rate daily and weekly resetting coupon securities has been a drag on performance. A more rapid reduction in exposure to these securities would have reduced the negative effect of holding these securities. The Fund's exposure to triple-B and double-B rated securities also contributed positively to performance. During the year, the Fund increased its exposure to double-B rated securities to 9% from 4%. Holding more double-B rated bonds would have further enhanced performance. Throughout the year, as interest rates declined, there has been increased demand for higher yielding debt. Since the beginning of the fiscal year, high yield issuance has been limited and the performance of this particular sector has been especially strong. However, in contrast holding insured bonds in the Fund has been a drag on performance. While we prefer holding uninsured, non-investment grade bonds for the incremental yield, this strategy may be a drag on future performance should a "flight to quality" ensue. Current positive economic conditions at both the state and local levels have allowed credit fundamentals for lower quality credits to improve. Significant exposures to the "Education" and "Health Care" sectors particularly benefited the Fund's performance. Strong demand for education and health care related services and products coupled with positive demographic trends have resulted in good credit performance and positive total return. Specifically, we increased the Fund's exposure to Health Care Bonds to 19% (from 7%) by selectively purchasing bonds that not only provide incremental yield, but also stand to benefit from an aging population and the long-term demographic profiles in certain markets of the State. In 2006, we decided to sell our position in Puerto Rico "Tobacco" bonds for concerns regarding the Commonwealth's ability to meet certain provisions of its settlement agreement with the tobacco industry. No exposure to tobacco bonds hurt performance, since this sector continues to be a positive performer. The State has not securitized its tobacco settlement payments and we remain negative on Puerto Rico tobacco bonds. We remain cautious on high yield credits due to a slowing economy and tighter credit spreads. Although the tighter credit spreads helped performance to existing exposure, we believe we are not fairly compensated for the risk of purchasing new exposure. We favor trading up in credit quality for more reasonably priced bonds. WHAT IS THE OUTLOOK? At year end, technical conditions have changed slightly with a temporary surge in the supply of municipal bonds. For the foreseeable future, we expect demand to remain robust and to outweigh supply. Specifically, the demand from non-traditional buyers should remain strong given the opportunities the municipal market offers these buyers with a municipal curve that remains steeper than most other taxable curves. Non-traditional buyers play an important role in our assessment of the future performance by the municipal market. Until non-traditional buyers find a better alternative, their presence and demand for municipal bonds will assist municipal market out performance. We still prefer going out longer on the municipal curve for incremental yield. The conclusion of the recent election cycle and resulting Congress leave expectations for limited reductions in future taxes. If anything, we expect future federal tax increases, which will contribute to the 89 -------------------------------------------------------------------------------- municipal markets' out performance because of the attractiveness of the federal, state and local tax exemption provided by municipal investments. Additional federal policy shifts in health care funding could hold negative consequences for the entire health care sector. Minnesota government appears to be in a stable period due to the re-election of many of the same governmental officials. Current credit conditions appear stable as we believe we have not reached the end of this favorable credit cycle despite concerns of a slowing economy. The State's financial position remains sound and local governments have built sizeable rainy day funds to offset any downturn in tax revenue. Our outlook for high yield credit remains more cautious. The slowing of the housing market could negatively impact a number of credits in the municipal high yield arena. We are especially cautious on lower quality credits with any link to housing construction, such as Special Tax bonds (3% exposure). Going forward, we will remain very selective in our purchases of lower quality debt, especially given that the currently tight credit spreads do not compensate investors for the additional risk. When possible, we will trade up in credit quality to protect against credit-related underperformance when spreads eventually widen again. DISTRIBUTION BY CREDIT QUALITY as of October 31, 2006
PERCENTAGE OF RATING LONG-TERM HOLDINGS ------------------------------------------------------------------- AAA 27.9% ------------------------------------------------------------------- AA 15.7 ------------------------------------------------------------------- A 23.6 ------------------------------------------------------------------- BBB 20.3 ------------------------------------------------------------------- BB 2.1 ------------------------------------------------------------------- NR 10.4 ------------------------------------------------------------------- TOTAL 100.0% -------------------------------------------------------------------
DIVERSIFICATION BY INDUSTRY as of October 31, 2006
PERCENTAGE OF INDUSTRY NET ASSETS ------------------------------------------------------------------- Airport Revenues 4.5% ------------------------------------------------------------------- General Obligations 15.7 ------------------------------------------------------------------- Health Care/Services 20.1 ------------------------------------------------------------------- Higher Education (Univ., Dorms, etc.) 9.8 ------------------------------------------------------------------- Housing (HFA's, etc.) 10.7 ------------------------------------------------------------------- Miscellaneous 15.0 ------------------------------------------------------------------- Pollution Control 1.5 ------------------------------------------------------------------- Public Facilities 3.5 ------------------------------------------------------------------- Transportation 5.3 ------------------------------------------------------------------- Utilities -- Combined 0.9 ------------------------------------------------------------------- Utilities -- Electric 4.5 ------------------------------------------------------------------- Utilities -- Water and Sewer 4.8 ------------------------------------------------------------------- Short-Term Investments 2.3 ------------------------------------------------------------------- Other Assets & Liabilities 1.4 ------------------------------------------------------------------- TOTAL 100.0% -------------------------------------------------------------------
90 The Hartford Tax-Free National Fund (subadvised by Hartford Investment Management Company) INVESTMENT OBJECTIVE -- SEEKS TO PROVIDE CURRENT INCOME EXEMPT FROM FEDERAL INCOME TAX. PERFORMANCE OVERVIEW(1,3) 10/31/96 - 10/31/06 Growth of a $10,000 investment in Class A which includes Sales Charge (LINE GRAPH)
LEHMAN BROTHERS MUNICIPAL BOND TAX-FREE NATIONAL FUND INDEX ---------------------- ------------------------------ 10/31/96 9550 10000 9723 10183 9666 10140 9663 10159 9739 10253 9601 10116 9679 10201 9820 10354 9925 10464 10249 10754 10089 10653 10222 10780 10/97 10282 10849 10333 10913 10510 11072 10617 11186 10592 11190 10577 11200 10485 11149 10686 11326 10706 11370 10717 11399 10900 11575 11037 11719 10/98 10999 11719 11029 11760 11059 11790 11169 11930 11101 11878 11082 11894 11123 11924 11023 11855 10832 11684 10864 11727 10763 11633 10754 11638 10/99 10601 11511 10726 11634 10654 11547 10593 11497 10741 11630 10952 11885 10882 11814 10811 11753 11080 12064 11223 12232 11398 12421 11327 12356 10/00 11450 12491 11530 12585 11892 12896 11973 13024 11999 13066 12099 13183 11881 13040 12014 13180 12100 13268 12291 13465 12553 13687 12480 13641 10/01 12649 13803 12483 13687 12308 13558 12532 13793 12651 13959 12374 13685 12641 13953 12749 14038 12889 14186 13064 14368 13228 14541 13545 14860 10/02 13265 14613 13147 14553 13502 14860 13409 14822 13641 15029 13622 15038 13739 15138 14124 15492 14019 15426 13373 14886 13505 14997 13910 15438 10/03 13819 15361 13985 15521 14133 15649 14231 15739 14457 15976 14427 15920 14064 15543 14009 15487 14057 15543 14261 15747 14572 16063 14660 16148 10/04 14800 16287 14676 16153 14872 16350 15028 16503 14968 16448 14857 16345 15120 16602 15252 16720 15353 16823 15292 16747 15463 16916 15347 16802 10/05 15259 16700 15358 16780 15492 16925 15531 16971 15640 17085 15553 16967 15549 16961 15629 17036 15597 16972 15779 17174 16033 17429 16172 17550 10/06 16298 17660
--- TAX-FREE NATIONAL FUND --- LEHMAN BROTHERS MUNICIPAL BOND INDEX $9,550 starting value $10,000 starting value $16,298 ending value $17,660 ending value
LEHMAN BROTHERS MUNICIPAL BOND INDEX is an unmanaged index of municipal bonds with maturities greater than two years. You cannot invest directly in an index. 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 the investment adviser, without which performance would have been lower. For information on current expense waivers/reimbursements, please see the prospectus. PORTFOLIO MANAGER CHARLES GRANDE Senior Vice President AVERAGE ANNUAL TOTAL RETURNS(1,2) (as of 10/31/06)
INCEPTION 1 5 10 SINCE DATE YEAR YEAR YEAR INCEPTION ------------------------------------------------------------------ National A# 6/2/1986 6.82% 5.20% 5.49% 6.45% ------------------------------------------------------------------ National A## 6/2/1986 2.01% 4.24% 5.00% 6.21% ------------------------------------------------------------------ National B# 11/14/1994 5.97% 4.36% NA* NA* ------------------------------------------------------------------ National B## 11/14/1994 0.97% 4.02% NA* NA* ------------------------------------------------------------------ National C# 11/14/1994 5.95% 4.44% 4.57% 5.43% ------------------------------------------------------------------ National C## 11/14/1994 4.95% 4.44% 4.57% 5.43% ------------------------------------------------------------------ National E# 6/2/1986 6.94% 5.37% 5.57% 6.49% ------------------------------------------------------------------ National E## 6/2/1986 2.12% 4.40% 5.09% 6.25% ------------------------------------------------------------------ National H# 11/14/1994 6.03% 4.43% NA* NA* ------------------------------------------------------------------ National H## 11/14/1994 2.03% 4.09% NA* NA* ------------------------------------------------------------------ National L# 11/14/1994 6.77% 5.17% 5.35% 6.22% ------------------------------------------------------------------ National L## 11/14/1994 1.97% 4.20% 4.86% 5.81% ------------------------------------------------------------------ National M# 11/14/1994 6.04% 4.43% NA* NA* ------------------------------------------------------------------ National M## 11/14/1994 2.04% 4.09% NA* NA* ------------------------------------------------------------------ National N# 11/14/1994 5.95% 4.42% 4.56% 5.42% ------------------------------------------------------------------ National N## 11/14/1994 4.95% 4.42% 4.56% 5.42% ------------------------------------------------------------------ National Y# 2/19/2002 6.91% NA NA 5.86% ------------------------------------------------------------------
# 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. (1) Classes A, B and C were offered beginning on February 19, 2002. Performance prior to that date is that of the fund's Classes E, M and N shares, respectively, which have lower operating expenses. Performance prior to February 19, 2002 would have been lower if Classes A, B and C shares expenses were applied during that period. (2) The initial investment in Classes A, E and L shares reflects the maximum sales charge and Classes B, C, H, M and N reflect CDSC. (3) Growth of a $10,000 investment in Classes B, C, E, H, L, M, N and Y shares will vary from results seen above due to differences in the expenses charged to these share classes. -------------------------------------------------------------------------------- HOW DID THE FUND PERFORM? The Hartford Tax-Free National Fund (Class A) gained 6.82%, before sales charges, for the year period ended October 31, 2006, outpacing its benchmark, the Lehman Municipal Bond (National) Index, which returned 5.75%. The Fund also outperformed the 5.41% average return of the Lipper General Municipal Debt Funds peer group, a group of funds with investment strategies similar to those of the Fund. WHY DID THE FUND PERFORM THIS WAY? In general, it was a good year (fiscal year ending 10/31/06) for the bond market, despite the early bias towards higher rates (lower prices) due to continued economic growth and the Federal Reserve Bank's tightening campaign. Early in the year many commodities reached historical highs and the price of oil approached record levels. To keep inflation in check, the Federal Reserve Bank (the Fed) continued its cycle of monetary tightening that began in the summer of 2004. By June of 2006, the Fed had raised its Federal Funds Target Rate 17 consecutive times, leaving the rate at 5.25%. In response to the increases in the Federal Funds Target Rate, short- and intermediate-term bond yields rose through the first half of 2006. Thus, as interest rates rose, the value of bonds declined. Due to technical factors (limited supply versus greater demand), long-term bond yields did not rise as significantly as shorter maturity debt. The market now finds itself with an inverted yield curve (short interest rates are higher than long interest rates). The tax-exempt yield curve performed similarly to the taxable curve, but for one significant factor -- the municipal yield curve remains steep and has not inverted. The net result is a tax-exempt yield curve that flattened during most of the fiscal year. By August of 2006, the Fed believing it now had inflation under control, turned its focus on concerns that economic growth was slowing. This new focus was supported by a belief that strong housing market growth was now retreating. The Fed found itself in a conundrum, whether it should continue raising interest rates to restrain inflation, or pause the tightening cycle to assess prospects for the economy. Since changes in the rate of inflation often lag changes in economic conditions, the Fed has held rates 91 -------------------------------------------------------------------------------- steady at its two most recent meetings. Sensing that the Fed was now on hold for increasing rates, and in fact may have to lower rates to spur the economy along, the bond markets rallied in the final months of the fiscal year and investors sent yields lower (prices higher). The Fund demonstrated good performance both relative to its benchmark and within its peer group. Away from actions taken by the Federal Reserve Bank, one of the primary drivers of market performance was the technical imbalance (demand greater than supply). The demand for municipal securities remained strong throughout the year versus a decline in municipal issuance. By fiscal year end, municipal issuance was down 12% compared to the prior year. Robust demand has been exhibited by traditional buyers (insurance companies, mutual funds) awash in cash from strong earnings and positive mutual fund cash flows. Non- traditional investors (arbitrage/hedge funds) continued to demonstrate good demand as these buyers took advantage of "carry trades" in the municipal market. (A carry trade is when an investor makes a spread (or profit) based on the steepness of the curve by borrowing at the short-term rate (lower cost of funds) and purchasing longer maturity bonds and receiving the higher rate. The difference between the long and short end rates is the "carry." Of course, investor will only execute this trade when there is positive carry (i.e. steep curve). Although municipal bonds historically have lagged the performance of the taxable fixed income bonds when interest rates have fallen, this was not the case in 2006. The municipal bond market tracked the positive performance of the taxable market for most of the year. The primary drivers of the Fund's performance have been duration extension and curve positioning through increased exposure to the longer maturity bonds (25+ years), exposure to higher yielding bonds (triple-B and double-B rated) and the tightening of credit spreads, and the active reduction of the Fund's exposure to shorter maturity bonds. As interest rates fell, we actively sold the Fund's exposure to short maturity securities in favor of buying longer maturity bonds. The Fund's duration increased from 6.84 years in 2005 to 7.22 years in 2006. Extending duration as interest rates fell late in the fiscal year contributed positively to performance. Because this strategy increases the Fund's sensitivity to movements in interest rates, it could hurt future performance should interest rates reverse and begin to increase. Curve positioning also contributed positively to the Fund's performance. One of our basic themes has been to take advantage of a lack of substantial issuance of long maturity debt. The Fund's exposure to the long maturity municipal debt benefited incremental yield and total return performance. Mutual fund demand for maximum yield long maturity debt has been especially strong throughout the year. At times, the Fund's exposure to variable rate daily and weekly resetting coupon securities has been a drag on performance. A more rapid reduction in exposure to these securities would have reduced the negative effect of holding these securities. The Fund's exposure to triple-B and double-B rated securities also contributed positively to performance. During the year, the Fund increased its combined exposure to these lower rated securities to 53% from 46%. Throughout the year, as interest rates declined, there has been increased demand for higher yielding debt. Since the beginning of the fiscal year, high yield issuance has been limited and the performance of this particular sector has been especially strong. However in contrast, the Fund's position in insured bonds has been a drag on performance. While we prefer holding uninsured, non-investment grade bonds for the incremental yield, this strategy may be a drag on future performance should a "flight to quality" ensue. Current positive economic conditions at both the state and local levels have allowed credit fundamentals for lower quality credits to improve. Significant exposures to the "Education," "Health Care," and "Special Tax" sectors particularly benefited the Fund's performance. Strong demand for the services and products these sectors represent and positive demographic trends have resulted in good credit performance and positive total return. We recognize the risk of a weakening housing market and have increased our credit selectivity when making new purchases to bonds with exposure to housing construction (Special Tax Bonds). (A special tax bond is a bond secured by special assessment taxes levied on certain real estate). In 2006, we also increased our exposure to "Tobacco Bonds" from 6% to 8%. Tobacco bonds continue to be strong performers. We favor these bonds due to the reduced headline risk caused by legal challenges to the tobacco industry as well as for the incremental yield provided by these bonds. Earlier in the year, the Fund's exposure to the Commonwealth of Puerto Rico had been a drag on the Fund's performance as credit spreads widened due to a deteriorating fiscal position and a limited closure of some of the Commonwealth's governmental services. We opted to reduce the Fund's exposure to this credit, until a long-term solution to the Commonwealth's financial crisis is crafted. We remain cautious on high yield credits due to a slowing economy and tighter credit spreads. Although the tighter credit spreads helped performance to existing exposure, we believe we are not fairly compensated for the risk of purchasing new exposure. We favor trading up in credit quality for more reasonably priced bonds. WHAT IS THE OUTLOOK? At year end, technical conditions have changed slightly with a temporary surge in the supply of municipal bonds. For the foreseeable future, we expect demand to remain robust and to outweigh supply. Specifically, the demand from non-traditional buyers should remain strong given the opportunities the municipal market offers these buyers with a municipal curve that remains steeper than most other taxable curves. Non-traditional buyers play an important role in our assessment of the future performance by the municipal market. Until non-traditional buyers find a better alternative, their presence and demand for municipal bonds will assist municipal market out performance. We still prefer going out longer on the municipal curve for incremental yield. The conclusion of the recent election cycle and resulting Congress leave expectations for limited reductions in future taxes. If anything, we expect future federal tax increases, which will contribute to the municipal markets' out performance because of the attractiveness of the federal, state and local tax exemption provided by municipal investments. Additional federal policy shifts in health care funding 92 -------------------------------------------------------------------------------- could hold negative consequences for the entire health care sector. Current credit conditions appear stable as we believe we have not reached the end of this favorable credit cycle despite concerns of a slowing economy. Most state and local governments have built sizeable rainy day funds to offset any downturn in tax revenue. Our outlook for high yield credit remains more cautious. The slowing of the housing market could negatively impact a number of credits in the municipal high yield arena. We are especially cautious on lower quality credits with any link to housing construction, such as Special Tax Bonds. Going forward, we will remain very selective in our purchases of lower quality bonds, especially given that the currently tight credit spreads do not compensate investors for the additional risk. When possible, we will trade up in credit quality to protect against credit-related underperformance when spreads eventually widen again. DISTRIBUTION BY CREDIT QUALITY as of October 31, 2006
PERCENTAGE OF RATING LONG-TERM HOLDINGS ------------------------------------------------------------------- AAA 7.9% ------------------------------------------------------------------- AA 6.9 ------------------------------------------------------------------- A 16.9 ------------------------------------------------------------------- BBB 39.1 ------------------------------------------------------------------- BB 2.1 ------------------------------------------------------------------- NR 27.1 ------------------------------------------------------------------- TOTAL 100.0% -------------------------------------------------------------------
DIVERSIFICATION BY INDUSTRY as of October 31, 2006
PERCENTAGE OF INDUSTRY NET ASSETS ------------------------------------------------------------------- Airport Revenues 0.8% ------------------------------------------------------------------- General Obligations 16.1 ------------------------------------------------------------------- Health Care/Services 15.3 ------------------------------------------------------------------- Higher Education (Univ., Dorms, etc.) 15.2 ------------------------------------------------------------------- Housing (HFA's, etc.) 8.1 ------------------------------------------------------------------- Industrial 2.0 ------------------------------------------------------------------- Land Development 3.5 ------------------------------------------------------------------- Miscellaneous 15.6 ------------------------------------------------------------------- Pollution Control 2.6 ------------------------------------------------------------------- Public Facilities 7.8 ------------------------------------------------------------------- Transportation 3.1 ------------------------------------------------------------------- Utilities -- Electric 3.0 ------------------------------------------------------------------- Utilities -- Water and Sewer 3.8 ------------------------------------------------------------------- Short-Term Investments 3.3 ------------------------------------------------------------------- Other Assets & Liabilities -0.2 ------------------------------------------------------------------- TOTAL 100.0% -------------------------------------------------------------------
DISTRIBUTION BY STATE as of October 31, 2006
PERCENTAGE OF STATE NET ASSETS ------------------------------------------------------------------- Alabama 1.7% ------------------------------------------------------------------- Alaska 0.8 ------------------------------------------------------------------- Arizona 4.4 ------------------------------------------------------------------- California 14.4 ------------------------------------------------------------------- Colorado 3.9 ------------------------------------------------------------------- Connecticut 0.8 ------------------------------------------------------------------- Florida 5.0 ------------------------------------------------------------------- Georgia 4.0 ------------------------------------------------------------------- Idaho 0.8 ------------------------------------------------------------------- Illinois 5.6 ------------------------------------------------------------------- Iowa 0.8 ------------------------------------------------------------------- Kansas 2.6 ------------------------------------------------------------------- Kentucky 0.1 ------------------------------------------------------------------- Louisiana 0.4 ------------------------------------------------------------------- Maryland 0.9 ------------------------------------------------------------------- Massachusetts 0.8 ------------------------------------------------------------------- Michigan 3.9 ------------------------------------------------------------------- Minnesota 5.1 ------------------------------------------------------------------- Mississippi 1.2 ------------------------------------------------------------------- Missouri 0.4 ------------------------------------------------------------------- Nevada 1.7 ------------------------------------------------------------------- New Hampshire 1.4 ------------------------------------------------------------------- New Jersey 5.4 ------------------------------------------------------------------- New Mexico 0.5 ------------------------------------------------------------------- New York 6.1 ------------------------------------------------------------------- North Carolina 0.8 ------------------------------------------------------------------- North Dakota 0.4 ------------------------------------------------------------------- Ohio 1.4 ------------------------------------------------------------------- Other U.S. Territories 1.5 ------------------------------------------------------------------- Pennsylvania 2.7 ------------------------------------------------------------------- Rhode Island 5.9 ------------------------------------------------------------------- South Carolina 1.4 ------------------------------------------------------------------- Tennessee 2.0 ------------------------------------------------------------------- Texas 2.8 ------------------------------------------------------------------- Vermont 0.4 ------------------------------------------------------------------- Virginia 3.2 ------------------------------------------------------------------- Washington 0.5 ------------------------------------------------------------------- Wisconsin 1.2 ------------------------------------------------------------------- Short-Term Investments 3.3 ------------------------------------------------------------------- Other Assets & Liabilities -0.2 ------------------------------------------------------------------- TOTAL 100.0% -------------------------------------------------------------------
93 The Hartford Tax-Free New York Fund (subadvised by Hartford Investment Management Company) INVESTMENT OBJECTIVE -- SEEKS TO PROVIDE CURRENT INCOME EXEMPT FROM FEDERAL, NEW YORK STATE AND NEW YORK CITY INCOME TAX. PERFORMANCE OVERVIEW(2) 10/31/02 - 10/31/06 Growth of a $10,000 investment in Class A which includes Sales Charge (LINE GRAPH)
LEHMAN BROTHERS NEW YORK MUNICIPAL TAX-FREE NEW YORK FUND BOND INDEX ---------------------- ---------------------------------- 10/31/02 9550 10000 9473 9945 9733 10161 9661 10138 9832 10275 9850 10285 9937 10350 10257 10584 10169 10542 9644 10185 9753 10267 10098 10563 10/03 10031 10515 10171 10622 10320 10698 10385 10758 10577 10915 10538 10874 10225 10627 10165 10588 10197 10621 10351 10761 10589 10970 10672 11029 10/04 10785 11121 10667 11028 10822 11155 10937 11252 10893 11220 10819 11147 10987 11314 11074 11392 11170 11460 11128 11406 11235 11518 11149 11441 10/05 11073 11377 11117 11424 11216 11525 11240 11554 11340 11637 11258 11559 11250 11554 11297 11605 11256 11560 11393 11696 11574 11861 11677 11942 10/06 11760 12014
--- TAX-FREE NEW YORK FUND --- LEHMAN BROTHERS NEW YORK MUNICIPAL $9,550 starting value BOND INDEX $11,760 ending value $10,000 starting value $12,014 ending value
LEHMAN BROTHERS NEW YORK MUNICIPAL BOND INDEX is an unmanaged index of municipal bonds issued by the State of New York with maturities greater than two years. You cannot invest directly in an index. 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 the investment adviser, without which performance would have been lower. For information on current expense waivers/reimbursements, please see the prospectus. AVERAGE ANNUAL TOTAL RETURNS(1) (as of 10/31/06)
INCEPTION SINCE DATE 1 YEAR INCEPTION -------------------------------------------------- New York A# 10/31/2002 6.21% 5.34% -------------------------------------------------- New York A## 10/31/2002 1.43% 4.13% -------------------------------------------------- New York B# 10/31/2002 5.41% 4.57% -------------------------------------------------- New York B## 10/31/2002 0.41% 3.91% -------------------------------------------------- New York C# 10/31/2002 5.41% 4.57% -------------------------------------------------- New York C## 10/31/2002 4.41% 4.57% --------------------------------------------------
# Without sales charge ## With sales charge PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS. (1) The initial investment in Class A shares reflects the maximum sales charge and Classes B and C reflect CDSC. (2) Growth of a $10,000 investment in Classes B and C shares will vary from results seen above due to differences in the expenses charged to these share classes. PORTFOLIO MANAGER CHARLES GRANDE Senior Vice President -------------------------------------------------------------------------------- HOW DID THE FUND PERFORM? The Hartford Tax-Free New York Fund (Class A) gained 6.21%, before sales charges, for the year ended October 31, 2006, outpacing its benchmark, the Lehman New York Exempt Bond Index, which returned 5.60%. The Fund also outperformed the 5.51% average return of the Lipper New York Municipal Debt Funds peer group, a group of funds with investment strategies similar to those of the Fund. WHY DID THE FUND PERFORM THIS WAY? In general, it was a good year (fiscal year ending 10/31/06) for the bond market, despite the early bias towards higher rates (lower prices) due to continued economic growth and the Federal Reserve Bank's tightening campaign. Early in the year many commodities reached historical highs and the price of oil approached record levels. To keep inflation in check, the Federal Reserve Bank continued its cycle of monetary tightening that began in the summer of 2004. By June of 2006, the Federal Reserve Bank had raised its Federal Funds Target Rate 17 consecutive times, leaving the rate at 5.25%. In response to the increases in the Federal Funds Target Rate, short- and intermediate-term bond yields rose through the first half of 2006. Thus, as interest rates rose, the value of bonds declined. Due to technical factors (limited supply versus greater demand), long-term bond yields did not rise as significantly as shorter maturity debt. The market now finds itself with an inverted yield curve (short interest rates are higher than long interest rates). The tax-exempt yield curve performed similarly to the taxable curve, but for one significant factor -- the municipal yield curve remains steep and has not inverted. The net result is a tax-exempt yield curve that flattened during most of the fiscal year. By August of 2006, the Federal Reserve Bank believing it now had inflation under control, turned its focus on concerns that economic growth was slowing. This new focus was supported by a belief that strong housing market growth was now retreating. The Federal Reserve Bank found itself in a conundrum as to whether it should continue raising interest rates to restrain inflation, or pause the tightening cycle to assess prospects for the economy. Since changes in the rate of inflation often lag changes in economic conditions, the Federal Reserve Bank has held rates steady at its two most recent meetings. Sensing that the Federal Reserve Bank was now on hold for increasing rates, and in fact may have to lower rates to spur the economy along, the bond markets rallied in the final months of the fiscal year and investors sent yields lower (prices higher). The Fund demonstrated good performance both relative to its benchmark and within its peer group. Away from actions taken by the Federal Reserve Bank, one of the primary drivers of market 94 -------------------------------------------------------------------------------- performance was the technical imbalance (demand greater than supply). The demand for municipal securities remained strong throughout the year versus a decline in municipal issuance. By fiscal year end, municipal issuance was down 12% compared to the prior year. The lack of issuance was even more acute in the State of New York where we estimate a decline of 33% for the year. Robust demand has been exhibited by traditional buyers (insurance companies, mutual funds) awash in cash from strong earnings and positive mutual fund cash flows. Non-traditional investors (arbitrage/hedge funds) continued to demonstrate good demand as these buyers took advantage of "carry trades" in the municipal market. (A carry trade is when an investor makes a spread (or profit) based on the steepness of the curve by borrowing at the short-term rate (lower cost of funds) and purchasing longer maturity bonds and receiving the higher rate. The difference between the long and short end rates is the "carry." Of course, investor will only execute this trade when there is positive carry (i.e. steep curve). Although municipal bonds historically have lagged the performance of the taxable fixed income bonds when interest rates have fallen, this was not the case in 2006. The municipal bond market tracked the positive performance of the taxable market for most of the year. The primary drivers of the Fund's performance have been duration extension and curve positioning through increased exposure to the longer maturity bonds (25+ years), exposure to higher yielding bonds (triple-B rated) and the tightening of credit spreads, and the active reduction of the Fund's exposure to shorter maturity bonds. As interest rates fell, we actively sold the Fund's exposure to short maturity bonds in favor of buying longer maturity bonds. The Fund's duration increased from 6.60 years in 2005 to 7.63 years in 2006. Extending duration as interest rates fell late in the fiscal year contributed positively to performance. Because this strategy increases the Fund's sensitivity to movements in interest rates, it could hurt future performance should interest rates reverse and begin to increase. Curve positioning also contributed positively to the Fund's performance. One of our basic themes has been to take advantage of a lack of substantial issuance of long maturity debt. The Fund's exposure to the long maturity municipal debt benefited incremental yield and total return performance. Demand for maximum yield long maturity debt has been especially strong throughout the year. At times, the Fund's exposure to variable rate daily and weekly resetting coupon securities has been a drag on performance. A more rapid reduction in exposure to these securities would have reduced the negative effect of holding these securities. The Fund's exposure to triple-B rated securities also contributed positively to performance. During the year, the Fund increased its exposure to these lower rated securities to 33% from 26%. Throughout the year, as interest rates declined, there has been increased demand for higher yielding debt. Since the beginning of the fiscal year, high yield issuance has been limited and the performance of this particular sector has been especially strong. However in contrast, holding insured bonds in the Fund (21%) has been a drag on performance. Throughout the year, we have found it especially difficult to source non-investment grade paper in New York. The Fund's exposure to the double-B credits was limited to 5%. The lack of greater exposure to this rating category was a drag on performance as credit spreads tightened. However, the Fund will be properly positioned should a "flight to quality" ensue. Current positive economic conditions at both the state and local levels have allowed credit fundamentals for lower quality credits to improve. Significant exposures to the "Education" and "Health Care" sectors particularly benefited Fund performance. Our exposure to Health Care Bonds increased to 11% from 6%. Strong demand for health care related services and products coupled with positive demographic trends have resulted in good credit performance and positive total return. In 2006, we also increased our exposure to "Tobacco Bonds" to 13% from 10%. Tobacco bonds continue to be one of the Fund's best performers. We favor these bonds due to the reduced headline risk caused by legal challenges to the tobacco industry as well as for the incremental yield provided by these bonds. Earlier in the year, the Fund's exposure to the Commonwealth of Puerto Rico had been a drag on performance as credit spreads widened due to a deteriorating fiscal position and a limited closure of some of the Commonwealth's governmental services. We opted to reduce Fund exposure to this credit, until a long-term solution to the Commonwealth's financial crisis is crafted. We remain cautious on high yield credits due to a slowing economy and tighter credit spreads. Although the tighter credit spreads helped performance to existing exposure, we believe we are not fairly compensated for the risk of purchasing new exposure. We favor trading up in credit quality for more reasonably priced bonds. WHAT IS THE OUTLOOK? At year end, technical conditions have changed slightly with a temporary surge in the supply of municipal bonds. For the foreseeable future, we expect demand to remain robust and to outweigh supply. Specifically, the demand from non-traditional buyers should remain strong given the opportunities the municipal market offers these buyers with a municipal curve that remains steeper than most other taxable curves. Non-traditional buyers play an important role in our assessment of the future performance by the municipal market. Until non-traditional buyers find a better alternative, their presence and demand for municipal bonds will assist municipal market out performance. We still prefer going out longer on the municipal curve for incremental yield. The conclusion of the recent election cycle and resulting Congress leave expectations for limited reductions in future taxes. If anything, we expect future federal tax increases, which will contribute to the municipal markets' out performance because of the attractiveness of the federal, state and local tax exemption provided by municipal investments. Additional federal policy shifts in health care funding could hold negative consequences for the entire health care sector. This would hold especially true for an over-bedded health care market such as New York. Also, we will watch closely the recent changes in New York government and its likely impact on state and local credits. Current credit conditions appear stable as we believe we have not reached the end of this favorable credit cycle despite concerns of a 95 -------------------------------------------------------------------------------- slowing economy. The State's current financial position remains positive with further increases in tax receipts and a projected surplus for the year that should help reduce future budget gaps. Our outlook for high yield credit remains more cautious. The slowing of the housing market could negatively impact a number of credits in the municipal high yield arena. We are especially cautious on lower quality credits with any link to housing construction, such as Special Tax bonds (4% exposure). Going forward, we will remain very selective in our purchases of lower quality bonds, especially given that the currently tight credit spreads do not compensate investors for the additional risk. When possible, we will trade up in credit quality to protect against credit-related underperformance when spreads eventually widen again. DISTRIBUTION BY CREDIT QUALITY as of October 31, 2006
PERCENTAGE OF RATING LONG-TERM HOLDINGS ------------------------------------------------------------------- AAA 19.4% ------------------------------------------------------------------- AA 18.4 ------------------------------------------------------------------- A 28.3 ------------------------------------------------------------------- BBB 28.1 ------------------------------------------------------------------- BB 2.7 ------------------------------------------------------------------- NR 3.1 ------------------------------------------------------------------- TOTAL 100.0% -------------------------------------------------------------------
DIVERSIFICATION BY INDUSTRY as of October 31, 2006
PERCENTAGE OF INDUSTRY NET ASSETS ------------------------------------------------------------------- Airport Revenues 2.4% ------------------------------------------------------------------- General Obligations 7.9 ------------------------------------------------------------------- Health Care/Services 9.0 ------------------------------------------------------------------- Higher Education (Univ., Dorms, etc.) 27.5 ------------------------------------------------------------------- Housing (HFA's, etc.) 3.5 ------------------------------------------------------------------- Industrial 4.8 ------------------------------------------------------------------- Miscellaneous 17.6 ------------------------------------------------------------------- Pollution Control 4.0 ------------------------------------------------------------------- Public Facilities 7.5 ------------------------------------------------------------------- Transportation 6.4 ------------------------------------------------------------------- Utilities -- Electric 1.7 ------------------------------------------------------------------- Utilities -- Water and Sewer 3.0 ------------------------------------------------------------------- Short-Term Investments 0.9 ------------------------------------------------------------------- Other Assets & Liabilities 3.8 ------------------------------------------------------------------- TOTAL 100.0% -------------------------------------------------------------------
96 The Hartford Total Return Bond Fund (subadvised by Hartford Investment Management Company) INVESTMENT OBJECTIVE -- SEEKS A COMPETITIVE TOTAL RETURN, WITH INCOME AS A SECONDARY OBJECTIVE. PERFORMANCE OVERVIEW(3) 10/31/96 - 10/31/06 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 ---------------------- ----------------------------------- 10/31/96 9550 10000 9750 10171 9683 10076 9736 10108 9769 10133 9642 10020 9787 10171 9892 10267 10035 10390 10368 10670 10256 10579 10420 10736 10/97 10511 10892 10582 10942 10728 11052 10874 11194 10867 11185 10913 11223 10951 11281 11060 11388 11141 11485 11141 11509 11213 11697 11515 11971 10/98 11383 11907 11503 11975 11533 12011 11623 12096 11331 11884 11389 11950 11448 11988 11284 11883 11216 11845 11176 11795 11153 11789 11256 11926 19/99 11281 11970 11286 11969 11220 11911 11192 11872 11326 12015 11476 12174 11458 12139 11451 12133 11711 12385 11788 12498 11923 12679 11991 12759 10/00 12024 12843 12210 13054 12483 13297 12756 13513 12831 13631 12848 13699 12830 13641 12900 13723 12880 13775 13177 14084 13324 14246 13358 14411 10/01 13582 14712 13508 14509 13447 14417 13499 14533 13551 14674 13340 14431 13597 14711 13740 14836 13718 14963 13748 15144 14011 15400 14142 15650 10/02 14193 15578 14345 15573 14695 15895 14817 15910 15042 16129 15063 16117 15254 16250 15579 16553 15566 16520 15096 15964 15201 16070 15609 16496 10/03 15494 16342 15550 16381 15745 16548 15868 16681 15989 16862 16079 16988 15689 16546 15632 16480 15695 16573 15805 16737 16079 17056 16155 17103 10/04 16284 17246 16228 17108 16364 17266 16441 17374 16379 17272 16269 17183 16461 17416 16597 17604 16715 17700 16591 17539 16769 17764 16577 17581 10/05 16446 17442 16512 17519 16646 17685 16655 17686 16690 17745 16532 17571 16516 17539 16472 17520 16484 17557 16671 17795 16919 18067 17040 18226 10/06 17161 18347
--- TOTAL RETURN BOND FUND --- LEHMAN BROTHERS U.S. AGGREGATE BOND INDEX $9,550 starting value $10,000 starting value $17,161 ending value $18,347 ending value
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. You cannot invest directly in an index. 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 the investment adviser, without which performance would have been lower. For information on current expense waivers/reimbursements, please see the prospectus. AVERAGE ANNUAL TOTAL RETURNS(1,2) (as of 10/31/06)
INCEPTION 1 5 10 SINCE DATE YEAR YEAR YEAR INCEPTION --------------------------------------------------------------------- Total Return A# 7/22/1996 4.35% 4.79% 6.03% 6.30% --------------------------------------------------------------------- Total Return A## 7/22/1996 -0.35% 3.83% 5.55% 5.82% --------------------------------------------------------------------- Total Return B# 7/22/1996 3.56% 4.04% NA* NA* --------------------------------------------------------------------- Total Return B## 7/22/1996 -1.42% 3.71% NA* NA* --------------------------------------------------------------------- Total Return C# 7/22/1996 3.63% 4.13% 5.32% 5.58% --------------------------------------------------------------------- Total Return C## 7/22/1996 2.63% 4.13% 5.32% 5.58% --------------------------------------------------------------------- Total Return I# 7/22/1996 4.50% 4.82% 6.05% 6.31% --------------------------------------------------------------------- Total Return Y# 7/22/1996 4.89% 5.30% 6.52% 6.79% ---------------------------------------------------------------------
# Without sales charge ## With sales charge NA Not Applicable * Inception returns are not applicable for Class B because after 8 years Class B converts to Class A. PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS. (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. Class I shares commenced operations on 8/31/06. Performance prior to 8/31/06 reflects Class A performance. (2) The initial investment in Class A shares reflects the maximum sales charge and Classes B and C reflect CDSC. (3) Growth of a $10,000 investment in Classes B, C, I and Y shares will vary from results seen above due to differences in the expenses charged to these share classes. PORTFOLIO MANAGER NASRI TOUTOUNGI Managing Director -------------------------------------------------------------------------------- HOW DID THE FUND PERFORM? The Hartford Total Return Bond Fund (Class A) gained 4.35%, before sales charges, for the 12 month period ended October, 2006, trailing its benchmark, the Lehman Aggregate Bond Index, which returned 5.19%. The Fund also lagged the 4.62% return of the Lipper Intermediate Investment Grade Debt Funds peer group, a group of funds with investment strategies similar to those of the Fund. WHY DID THE FUND PERFORM THIS WAY? The Fund's fiscal year, which ended October 31, 2006, began with continued flattening of the U.S. Treasury yield curve. Historically high energy and commodity prices, a boom in the housing market, and a strengthening economy led to concerns about rising inflation. To keep inflation in check, the Federal Reserve (the Fed) continued its cycle of monetary tightening that began in the summer of 2004. By June of 2006, the Fed had raised its Federal Funds Target Rate (Fed Funds Rate) 17 consecutive times, leaving the Fed Funds rate at 5.25%. In response to the Fed's tightening, short- and intermediate-term bond yields rose through the first half of 2006. In contrast, long-term bond yields remained relatively stable due, in large part, to overseas demand and expectations that the Fed could keep inflation low over the long run. By the August 8th meeting of the Federal Open Market Committee (FOMC), the economic outlook at the Fed suggested a slowing in economic growth and a subsequent moderation in inflation pressures. The Fed Funds rate was left at 5.25%, unchanged for the first time since May 2004. Rates across the yield curve fell in the wake of the FOMC pause as the market began to price in an environment of slow economic growth and a series of Fed Funds rate cuts that would likely follow. While stocks, and in particular foreign and small cap stocks, performed strongly for the year, fixed income securities provided more modest gains. Fortunately, the bond rally over the last few months offset the negative impact of rising interest rates earlier in the year, allowing the major bond sectors to finish with positive returns for the period. During much of the year, fixed income investors were unable to achieve higher levels of yield by going out longer on the yield curve. Thus, many investors added lower quality and foreign issues as they sought greater yield. During the period, the traditionally "riskier" high yield and emerging markets bonds were among the strongest performers for the year. 97 -------------------------------------------------------------------------------- A key driver of performance relative to the benchmark has been the Fund's defensive position against rising interest rates through most of the 12 month period. Although rising rates detracted from the Fund's return on an absolute basis, the Fund's shorter-than-benchmark duration added to performance on a relative basis. While the Fund was appropriately positioned for a flattening yield curve through most of the period, the timing of the curve positioning detracted slightly from performance. The Fund benefited from its exposure to the out-of-index U.S. High Yield Bond and U.S. Dollar Emerging Markets Debt sectors. These traditionally risky sectors were the strongest performing bond groups of the twelve month period. Since the Fund shifted away from Treasuries to invest in other sectors, the Fund's underweight to Treasuries was another contributor to relative performance. The Fund's allocation to the Non-Dollar sector and hedging positions were modest detractors from relative return. Security selection was particularly strong within the Investment Grade Corporate sectors, but was offset by underperformance in Mortgage-Backed Securities and U.S. Treasuries. WHAT IS THE OUTLOOK? The recent rally in bonds has priced in an environment of economic weakness that is not consistent with our view. Declines in interest rates and gasoline prices, coupled with a decent employment picture and gains in the stock market, should be supportive of continued spending. While housing remains a wild card for the U.S. economy, our view is that the Federal Reserve is still concerned with inflation and that policy decisions will favor price stability as long as economic growth does not decline dramatically. We continue to position the portfolio with a slight bias towards higher interest rates. With the Federal Reserve's rate hike campaign on hold and slower, but positive, growth ahead, the environment for spread sectors (those that offer yield premiums over Treasuries) is favorable. Strong earnings, a benign inflation and interest rate environment, and attractive yields all suggest the High Yield sector continues to offer value. We also believe that opportunities continue to exist in the Non-Dollar and Emerging Markets sectors. In the coming months we will be closely watching the economy to determine the impact of a slower housing market on the U.S. consumer and what implications that has for the economy going forward. DISTRIBUTION BY CREDIT QUALITY as of October 31, 2006
PERCENTAGE OF LONG-TERM RATING HOLDINGS ------------------------------------------------------------------- AAA 54.6% ------------------------------------------------------------------- AA 2.1 ------------------------------------------------------------------- A 14.9 ------------------------------------------------------------------- BBB 13.3 ------------------------------------------------------------------- BB 9.2 ------------------------------------------------------------------- B 5.4 ------------------------------------------------------------------- CCC 0.3 ------------------------------------------------------------------- NR 0.2 ------------------------------------------------------------------- TOTAL 100.0% -------------------------------------------------------------------
DIVERSIFICATION BY INDUSTRY as of October 31, 2006
PERCENTAGE OF INDUSTRY NET ASSETS ------------------------------------------------------------------- Basic Materials 2.5% ------------------------------------------------------------------- Capital Goods 0.8 ------------------------------------------------------------------- Consumer Cyclical 1.9 ------------------------------------------------------------------- Consumer Staples 1.0 ------------------------------------------------------------------- Energy 2.1 ------------------------------------------------------------------- Finance 27.3 ------------------------------------------------------------------- Foreign Governments 0.4 ------------------------------------------------------------------- General Obligations 0.1 ------------------------------------------------------------------- Health Care 1.6 ------------------------------------------------------------------- Services 3.8 ------------------------------------------------------------------- Technology 5.2 ------------------------------------------------------------------- Transportation 0.7 ------------------------------------------------------------------- U.S. Government Agencies 26.8 ------------------------------------------------------------------- U.S. Government Securities 11.3 ------------------------------------------------------------------- Utilities 2.9 ------------------------------------------------------------------- Short-Term Investments 30.2 ------------------------------------------------------------------- Other Assets & Liabilities -18.6 ------------------------------------------------------------------- TOTAL 100.0% -------------------------------------------------------------------
98 The Hartford U.S. Government Securities Fund (subadvised by Hartford Investment Management Company) INVESTMENT OBJECTIVE -- SEEKS TO PROVIDE CURRENT INCOME WHILE MAINTAINING PRESERVATION OF CAPITAL CONSISTENT WITH PRUDENT INVESTMENT RISK. PERFORMANCE OVERVIEW(1,3) 10/31/96 - 10/31/06 Growth of a $10,000 investment in Class A which includes Sales Charge (LINE GRAPH)
U.S. GOVERNMENT SECURITIES FUND LEHMAN BROTHERS U.S. GOV'T INDEX ------------------------------- -------------------------------- 10/31/96 9550 10000 9706 10174 9619 10070 9649 10081 9668 10095 9558 9988 9697 10132 9782 10220 9889 10335 10140 10628 10057 10523 10208 10681 10/97 10347 10866 10375 10922 10471 11036 10613 11201 10593 11170 10629 11202 10666 11252 10772 11368 10879 11497 10893 11515 11118 11815 11391 12133 10/98 11287 12092 11337 12096 11363 12123 11411 12193 11182 11903 11243 11950 11267 11977 11159 11872 11111 11848 11063 11831 11039 11831 11177 11927 10/99 11192 11946 11196 11929 11137 11852 11091 11869 11212 12038 11346 12249 11327 12215 11307 12223 11508 12441 11606 12561 11770 12747 11870 12783 10/00 11958 12906 12167 13159 12417 13422 12561 13557 12692 13711 12756 13759 12681 13619 12730 13664 12747 13726 13034 14056 13171 14231 13403 14478 10/01 13629 14852 13432 14519 13347 14392 13418 14486 13581 14619 13398 14301 13646 14642 13751 14730 13870 14936 14113 15264 14297 15566 14541 15931 10/02 14492 15803 14411 15667 14792 16047 14709 16007 14937 16265 14899 16218 14988 16294 15285 16716 15145 16629 14487 15942 14539 16031 14955 16497 10/03 14791 16262 14827 16281 14922 16425 15018 16561 15178 16759 15293 16907 14941 16398 14824 16337 14910 16404 15059 16556 15288 16879 15279 16913 10/04 15395 17048 15270 16845 15403 16996 15468 17103 15376 16982 15351 16925 15553 17197 15678 17396 15739 17494 15583 17283 15785 17538 15640 17330 10/05 15516 17208 15547 17286 15677 17447 15671 17417 15712 17444 15564 17287 15517 17239 15491 17243 15517 17291 15701 17497 15903 17744 16036 17902 10/06 16101 17996
--- U.S. GOVERNMENT SECURITIES FUND --- LEHMAN BROTHERS U.S. GOV'T INDEX $9,550 starting value $10,000 starting value $16,101 ending value $17,996 ending value
LEHMAN BROTHERS U.S. GOVERNMENT INDEX is an unmanaged index of government bonds with maturities of one year or more. You cannot invest directly in an index. 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 the investment adviser, without which performance would have been lower. For information on current expense waivers/reimbursements, please see the prospectus. AVERAGE ANNUAL TOTAL RETURNS(1,2) (as of 10/31/06)
INCEPTION 1 5 10 SINCE DATE YEAR YEAR YEAR INCEPTION -------------------------------------------------------------------- U.S. Gov A# 2/28/1973 3.77% 3.39% 5.36% 7.46% -------------------------------------------------------------------- U.S. Gov A## 2/28/1973 -0.90% 2.44% 4.88% 7.31% -------------------------------------------------------------------- U.S. Gov B# 11/14/1994 3.01% 2.60% NA* NA* -------------------------------------------------------------------- U.S. Gov B## 11/14/1994 -1.99% 2.26% NA* NA* -------------------------------------------------------------------- U.S. Gov C# 11/14/1994 3.01% 2.60% 4.46% 5.11% -------------------------------------------------------------------- U.S. Gov C## 11/14/1994 2.01% 2.60% 4.46% 5.11% -------------------------------------------------------------------- U.S. Gov E# 2/28/1973 4.12% 3.72% 5.53% 7.51% -------------------------------------------------------------------- U.S. Gov E## 2/28/1973 -0.57% 2.77% 5.04% 7.36% -------------------------------------------------------------------- U.S. Gov H# 11/14/1994 3.08% 2.68% NA* NA* -------------------------------------------------------------------- U.S. Gov H## 11/14/1994 -0.88% 2.33% NA* NA* -------------------------------------------------------------------- U.S. Gov L# 11/14/1994 3.86% 3.47% 5.27% 5.93% -------------------------------------------------------------------- U.S. Gov L## 11/14/1994 -0.82% 2.53% 4.78% 5.52% -------------------------------------------------------------------- U.S. Gov M# 11/14/1994 3.08% 2.70% NA* NA* -------------------------------------------------------------------- U.S. Gov M## 11/14/1994 -0.88% 2.35% NA* NA* -------------------------------------------------------------------- U.S. Gov N# 11/14/1994 3.09% 2.68% 4.49% 5.14% -------------------------------------------------------------------- U.S. Gov N## 11/14/1994 2.10% 2.68% 4.49% 5.14% -------------------------------------------------------------------- U.S. Gov Y# 2/19/2002 3.75% NA NA 4.06% --------------------------------------------------------------------
# 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. (1) New Classes A, B and C were offered beginning on February 19, 2002. Performance prior to that date is that of the fund's Classes E, M and N shares, respectively, which have lower operating expenses. Performance prior to February 19, 2002 would have been lower if Classes A, B and C shares expenses were applied during that period. (2) The initial investment in Classes A, E and L shares reflects the maximum sales charge and Classes B, C, H, M and N reflect CDSC. (3) Growth of a $10,000 investment in Classes B, C, E, H, L, M, N and Y shares will vary from results seen above due to differences in the expenses charged to these share classes. PORTFOLIO MANAGER CHRISTOPHER HANLON, CFA Senior Vice President RUSSELL REGENAUER Vice President -------------------------------------------------------------------------------- HOW DID THE FUND PERFORM? In this environment, The Hartford Total U.S. Government Securities Fund (Class A) gained 3.77%, before sales charges, for the year ended October 31, 2006, trailing its benchmark, the Lehman Brothers U.S. Government Index, which returned 4.58%. However, the Fund outperformed the 3.76% return of the Lipper General US Government Funds peer group, a group of funds with investment strategies similar to those of the Fund. WHY DID THE FUND PERFORM THIS WAY? The Fund's fiscal year, which ended October 31, 2006, began in a period of rising interest rates. Historically high energy and commodity prices, a boom in the housing market, and a strengthening economy led to concerns about rising inflation. To keep inflation in check, the Federal Reserve (the Fed) continued its cycle of monetary tightening (i.e. raising interest rates) that began in the summer of 2004. By June of 2006, the Fed had raised its Federal Funds Target Rate (Fed Funds Rate) 17 consecutive times, leaving the Fed Funds Rate at 5.25%. In response to the Fed's tightening, short- and intermediate-term bond yields rose through the first half of 2006. Thus, as interest rates rose, the principal value of these bonds declined in response. In contrast, long-term bond yields did not rise as substantially due to overseas demand and expectations that the Fed could keep inflation low over the long run. The result was a yield curve that remained flat or even inverted (i.e. bonds with longer term maturities having a lower interest rate than bonds with shorter maturities) through most of the fiscal year. However, by August of 2006, the Fed became 99 -------------------------------------------------------------------------------- concerned that economic growth was slowing, in part due to the retreating housing market. As such, the Fed found itself in a conundrum as to whether it should continue raising interest rates to restrain inflation, or to pause in the tightening cycle to assess prospects for further economic growth. Since changes in the rate of inflation often lag changes in economic conditions, the Fed left rates unchanged at its two most recent meetings while it waited for more data before taking action. Sensing that the Fed would continue easing monetary policy, the bond markets rallied in the last months of the fiscal year. While stocks, and in particular foreign and small cap stocks, performed strongly for the year, fixed income securities provided more modest gains. Fortunately, the bond rally over the last few months offset the negative impact of rising interest rates earlier in the year, allowing the major bond sectors to finish with positive returns for the period. During much of the year, fixed income investors were unable to achieve higher levels of yield by going out longer on the yield curve. Thus, many investors sought higher yields in the spread sectors, (i.e. sectors that offer a risk premium over U.S. Treasuries of similar maturities). Accordingly, the Mortgage-Backed Securities (MBS), Commercial Mortgage-Backed Securities (CMBS), Asset-Backed Securities (ABS) and Agencies investment grade spread sectors outperformed U.S. Treasuries. One of the largest impacts upon the Fund's performance stemmed from its sensitivity to changes in interest rates. Generally, fixed rate bonds decline in value as interest rates rise, because the lower yielding bonds become less attractive when compared to bonds that pay higher rates. Purchasers would rather purchase the new higher yielding bonds, so sellers of the existing lower yielding bonds must discount them to compensate for their lower interest rates. Although the rising rates detracted from the Fund's return on an absolute basis, the Fund was appropriately positioned with duration lower than the benchmark through most of the twelve month period. However, due to the challenges and complexities of calculating attribution of fixed income portfolios, our mathematical model shows duration to be the key detractor from performance for the period. However, the Fund's sector allocations offset the negative impact of the duration and curve effects by a very large margin. In particular, the Fund's exposure to the MBS sector was the greatest contributor to performance. Since the Fund allocated away from U.S. Treasuries to gain access to higher yields in the spread sectors, the resulting underweight to Treasuries was also a positive factor. The Fund's small defensive exposure to TIPS and hedging actions were modest detractors from relative performance. While the portfolio outperformed the Index on a gross (before expenses) basis, it did not outperform by a great enough margin to offset the costs associated with operating the Fund. WHAT IS THE OUTLOOK? The recent rally in fixed-rate bonds has resulted in bond prices that reflect an environment of economic weakness that is not consistent with our view of the economy. Declines in interest rates and gasoline prices, coupled with a decent employment picture and gains in the stock market, should be supportive of continued spending. While housing remains a wild card for the U.S. economy, our view is that the Federal Reserve is still concerned with inflation and that policy decisions will favor price stability as long as economic growth does not decline dramatically. We continued to position the portfolio with a slight bias towards higher interest rates. As such, the portfolio has slightly less sensitivity to the negative impact of rising rates than its benchmark. With the Federal Reserve's rate hike campaign on hold and slower, yet positive growth ahead, the environment for spread sectors (those that have premiums over like U.S. Treasuries) is favorable. In the coming months we will be closely watching the economy to determine the impact of a slower housing market on the average U.S. consumer and what implications for the economy result. DISTRIBUTION BY CREDIT QUALITY as of October 31, 2006
PERCENTAGE OF RATING LONG-TERM HOLDINGS ------------------------------------------------------------------- AAA 100.0% ------------------------------------------------------------------- TOTAL 100.0% -------------------------------------------------------------------
DISTRIBUTION BY CATEGORY as of October 31, 2006
PERCENTAGE OF CATEGORY NAME NET ASSETS ------------------------------------------------------------------- Asset and Commercial Mortgage Backed Securities 5.1% ------------------------------------------------------------------- Federal Home Loan Mortgage Corporation 30.0 ------------------------------------------------------------------- Federal National Mortgage Association 40.6 ------------------------------------------------------------------- Government National Mortgage Association 2.6 ------------------------------------------------------------------- Other Direct Federal Obligations 3.9 ------------------------------------------------------------------- Small Business Administration Participation Certificate 9.7 ------------------------------------------------------------------- U.S. Treasury Securities 6.5 ------------------------------------------------------------------- Short-Term Investments 5.1 ------------------------------------------------------------------- Other Assets & Liabilities -3.5 ------------------------------------------------------------------- TOTAL 100.0% -------------------------------------------------------------------
100 The Hartford Value Fund (subadvised by Wellington Management Company, LLP) INVESTMENT OBJECTIVE -- SEEKS LONG-TERM TOTAL RETURN. PERFORMANCE OVERVIEW(2) 4/30/01 - 10/31/06 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 8552 8903 10/01 8524 8826 9062 9339 9319 9559 9157 9486 9119 9501 9319 9950 8891 9609 8920 9657 8388 9103 7694 8256 7552 8319 6716 7394 10/02 7210 7942 7609 8442 7160 8076 6912 7881 6806 7670 6854 7683 7419 8359 7907 8899 7974 9010 8041 9144 8204 9286 8079 9196 10/03 8539 9759 8673 9891 9155 10501 9222 10685 9338 10914 9242 10819 9087 10554 9222 10662 9396 10914 9049 10760 9107 10913 9213 11082 10/04 9367 11267 9724 11836 10057 12233 9883 12016 10280 12414 10057 12243 9951 12024 10125 12314 10202 12448 10561 12809 10541 12753 10706 12932 10/05 10444 12603 10774 13018 10813 13096 11222 13604 11359 13687 11485 13873 11768 14225 11524 13866 11612 13954 11895 14294 12129 14533 12343 14823 10/06 12586 15308
--- VALUE FUND --- RUSSELL 1000 VALUE INDEX $9,450 starting value $10,000 starting value $12,586 ending value $15,308 ending value
RUSSELL 1000 VALUE INDEX measures the performance of those Russell 1000 Index companies with lower price-to-book ratios and lower forecasted growth values. You cannot invest directly in an index. 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 the investment adviser, without which performance would have been lower. For information on current expense waivers/reimbursements, please see the prospectus. AVERAGE ANNUAL TOTAL RETURNS(1) (as of 10/31/06)
INCEPTION SINCE DATE 1 YEAR 5 YEAR INCEPTION ------------------------------------------------------- Value A# 4/30/2001 20.52% 8.10% 5.34% ------------------------------------------------------- Value A## 4/30/2001 13.89% 6.89% 4.27% ------------------------------------------------------- Value B# 4/30/2001 19.68% 7.32% 4.58% ------------------------------------------------------- Value B## 4/30/2001 14.68% 7.01% 4.43% ------------------------------------------------------- Value C# 4/30/2001 19.68% 7.32% 4.58% ------------------------------------------------------- Value C## 4/30/2001 18.68% 7.32% 4.58% ------------------------------------------------------- Value Y# 4/30/2001 21.07% 8.46% 5.70% -------------------------------------------------------
# Without sales charge ## With sales charge PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS. (1) The initial investment in Class A shares reflects the maximum sales charge and Classes B and C reflect CDSC. (2) Growth of a $10,000 investment in Classes B, C and Y shares will vary from results seen above due to differences in the expenses charged to these share classes. PORTFOLIO MANAGER JOHN R. RYAN, CFA Senior Vice President, Managing Partner -------------------------------------------------------------------------------- HOW DID THE FUND PERFORM? The Class A shares of The Hartford Value Fund returned 20.52%, before sales charges, for the twelve-month period ended October 31, 2006, underperforming its benchmark, the Russell 1000 Value Index, which returned 21.46% for the same period. The Fund outperformed the 17.73% return of the average fund in the Lipper Large Cap Value Fund peer group, a group of funds with investment strategies similar to those of the Fund. WHY DID THE FUND PERFORM THIS WAY? Improved investor sentiment regarding the likelihood of a global economic slowdown and moderating inflation concerns helped global equity returns during the period. Value outperformed Growth and the broader market, as the Russell 1000 Value index return of 21.46% beat the Russell 1000 Growth return of 10.84% and the S&P 500 index return of 16.33%. All ten sectors of the Russell 1000 Value Index posted strong double digit returns. Telecommunication Services and Materials were the top performers while Utilities and Information Technology were relative laggards. Unfavorable stock selection within Health Care, Materials, and Utilities led to some disappointments during the period. At the margin, the Fund's overweight positions in Utilities and Consumer Staples and its underweight positions in Consumer Discretionary and Energy also detracted from relative performance. The three largest benchmark relative detractors owned in the fund were Dow Chemical (Materials), ConocoPhillips (Energy), and WellPoint (Healthcare). Additionally, not owning Merck (Health Care) within the portfolio also significantly detracted from performance. Dow Chemical posted good profit results during the period; however, they were unable to offset the headwinds of high energy and raw materials costs. ConocoPhillips shares struggled due to the recent decline in North American natural gas prices and lower refining margins. Merck's shares benefited from higher than expected sales of Singulair, its treatment for asthma and seasonal allergies, and FDA product approvals for several drugs within its pipeline. We owned Dow Chemical and WellPoint at the end of the period. Partially offsetting these disappointments was a combination of positive stock selection and sector allocation within Telecommunications Services, Industrials and Financials. The top three benchmark relative contributors were BellSouth (Telecommunication Services), Caterpillar (Industrials), and Cameco (Energy). BellSouth's shares benefited from the company's much anticipated merger with AT&T. Caterpillar's shares benefited from growth in their underlying businesses. The stock pulled back sharply in mid-October due to the market's expectation for stronger than delivered earnings results. Cameco's shares continue to benefit from the long-term pricing power for uranium. We took profits in 101 -------------------------------------------------------------------------------- Caterpillar and eliminated the stock but held BellSouth and ConocoPhillips at the end of the period. WHAT IS THE OUTLOOK? Global economic growth appears to have rolled past its peak, although it is still running at a solid clip. While other investors are expressing skepticism about the sustainability of the economic expansion, we expect global growth to remain above 3%, with the US slowing to the 2-3% range. We have no expectation for a recession, and are impressed so far by the consumer's ability to absorb the twin hits of higher short-term interest rates and energy costs. In anticipation of a slowing, yet healthy global economy, we have reduced further the cyclicality of our portfolios, which has been ongoing for several consecutive quarters. We methodically decreased our exposure to the consumer, energy, and mortgage-related financial institutions and increased our exposure to less cyclical areas, including telecommunications, consumer non-durables, and non-credit sensitive financial institutions. At the end of the period, relative to the Russell 1000 Value Index, the Fund was overweight Industrials, Consumer Staples, Information Technology, Telecommunication Services, and Health Care and underweight Financials, Consumer Discretionary, Energy, Utilities and Materials. DIVERSIFICATION BY INDUSTRY as of October 31, 2006
PERCENTAGE OF INDUSTRY NET ASSETS ------------------------------------------------------------------- Basic Materials 5.1% ------------------------------------------------------------------- Capital Goods 6.9 ------------------------------------------------------------------- Consumer Cyclical 6.6 ------------------------------------------------------------------- Consumer Staples 4.3 ------------------------------------------------------------------- Energy 8.2 ------------------------------------------------------------------- Finance 29.6 ------------------------------------------------------------------- Health Care 9.1 ------------------------------------------------------------------- Services 3.0 ------------------------------------------------------------------- Technology 17.3 ------------------------------------------------------------------- Transportation 3.5 ------------------------------------------------------------------- Utilities 4.4 ------------------------------------------------------------------- Short-Term Investments 2.5 ------------------------------------------------------------------- Other Assets & Liabilities -0.5 ------------------------------------------------------------------- TOTAL 100.0% -------------------------------------------------------------------
102 The Hartford Value Opportunities Fund (subadvised by Wellington Management Company, LLP) INVESTMENT OBJECTIVE -- SEEKS SHORT- AND LONG-TERM CAPITAL APPRECIATION. PERFORMANCE OVERVIEW(1,3) 10/31/96 - 10/31/06 Growth of a $10,000 investment in Class A which includes Sales Charge (LINE GRAPH)
VALUE OPPORTUNITIES FUND RUSSELL 3000 VALUE INDEX RUSSELL 1000 VALUE INDEX ------------------------ ------------------------ ------------------------ 10/31/96 9450 10000 10000 10001 10706 10725 10008 10618 10588 10350 11096 11102 10478 11254 11265 10093 10859 10860 10461 11285 11316 11068 11942 11948 11341 12464 12461 11965 13361 13398 11546 12951 12921 12093 13741 13702 10/97 11751 13358 13319 12264 13904 13908 12491 14317 14314 12567 14108 14111 13298 15049 15061 13830 15939 15982 13868 16043 16089 13554 15774 15851 13716 15948 16054 13222 15581 15770 11256 13252 13424 11693 14011 14194 10/98 12415 15041 15293 13127 15718 16006 13537 16249 16551 13727 16340 16683 13359 16042 16447 13706 16340 16788 14652 17864 18356 14316 17719 18154 14884 18243 18681 14421 17716 18134 13969 17060 17461 13390 16482 16851 10/99 13979 17338 17821 13990 17218 17682 14734 17330 17767 14145 16772 17187 13343 15679 15910 15378 17453 17852 15492 17271 17644 15695 17422 17830 14723 16714 17015 15028 16946 17228 16170 17877 18187 15752 18023 18353 10/00 16973 18433 18804 16378 17768 18106 17510 18723 19013 18343 18825 19086 17796 18335 18556 16876 17711 17900 18144 18576 18778 18156 18998 19200 17995 18659 18774 17485 18593 18734 16540 17895 17983 14687 16585 16718 10/01 14911 16481 16574 16012 17455 17537 16811 17912 17950 16318 17801 17812 16199 17836 17841 16731 18716 18685 15640 18173 18044 15267 18208 18134 13856 17213 17093 12658 15542 15504 12858 15647 15621 11314 13950 13884 10/02 12325 14924 14913 13310 15882 15852 12512 15192 15164 12206 14821 14797 11833 14418 14402 11820 14451 14426 13204 15730 15696 14229 16786 16709 14388 17002 16918 14575 17298 17170 15200 17596 17438 15200 17422 17268 10/03 16172 18515 18324 16704 18802 18573 17623 19923 19718 18195 20299 20064 18541 20731 20495 18235 20586 20315 17783 20038 19819 17942 20245 20021 18448 20767 20494 17809 20418 20205 17862 20701 20492 18208 21062 20810 10/04 18714 21411 21156 19739 22562 22226 20777 23299 22970 20165 22843 22562 20857 23574 23310 20538 23237 22990 19806 22755 22578 20644 23371 23122 21070 23693 23375 21682 24436 24051 21616 24289 23947 21376 24596 24283 10/05 20711 23972 23666 21884 24776 24444 22337 24895 24590 23202 25957 25545 23257 26101 25701 23505 26536 26049 24177 27154 26711 23408 26429 26037 23229 26612 26203 23023 27164 26840 23517 27650 27289 24053 28176 27833 10/06 25083 29145 28744
--- VALUE OPPORTUNITIES --- RUSSELL 3000 VALUE -- RUSSELL 1000 VALUE INDEX FUND INDEX $10,000 starting value $9,450 starting value $10,000 starting value $28,744 ending value $25,083 ending value $29,145 ending value
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. RUSSELL 1000 VALUE INDEX is a market cap weighted measure of the performance of the 1,000 largest value-oriented companies in the Russell 3000 Index, which represents approximately 92% of the total market capitalization of the Russell 3000 Index. Value is defined as companies with lower price-to-book ratios and lower forecasted growth values. You cannot invest directly in an index. 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 the investment adviser, without which performance would have been lower. For information on current expense waivers/reimbursements, please see the prospectus. PORTFOLIO MANAGERS JAMES H. AVERILL Senior Vice President, Partner DAVID R. FASSNACHT, CFA Senior Vice President, Partner JAMES N. MORDY Senior Vice President, Partner DAVID W. PALMER, CFA Vice President AVERAGE ANNUAL TOTAL RETURNS(1,2) (as of 10/31/06)
INCEPTION 1 5 10 SINCE DATE YEAR YEAR YEAR INCEPTION -------------------------------------------------------------------- Value Opp A# 1/2/1996 21.12% 10.96% 10.25% 10.69% -------------------------------------------------------------------- Value Opp A## 1/2/1996 14.46% 9.71% 9.63% 10.11% -------------------------------------------------------------------- Value Opp B# 1/2/1996 20.21% 10.17% NA* NA* -------------------------------------------------------------------- Value Opp B## 1/2/1996 15.21% 9.90% NA* NA* -------------------------------------------------------------------- Value Opp C# 1/2/1996 20.20% 10.17% 9.45% 9.88% -------------------------------------------------------------------- Value Opp C## 1/2/1996 19.20% 10.17% 9.45% 9.88% -------------------------------------------------------------------- Value Opp H# 1/2/1996 20.39% 10.21% NA* NA* -------------------------------------------------------------------- Value Opp H## 1/2/1996 16.39% 9.94% NA* NA* -------------------------------------------------------------------- Value Opp I# 2/19/2002 21.18% NA NA 10.63% -------------------------------------------------------------------- Value Opp L# 1/2/1996 21.31% 11.02% 10.28% 10.72% -------------------------------------------------------------------- Value Opp L## 1/2/1996 15.55% 9.95% 9.75% 10.22% -------------------------------------------------------------------- Value Opp M# 1/2/1996 20.33% 10.21% NA* NA* -------------------------------------------------------------------- Value Opp M## 1/2/1996 16.33% 9.93% NA* NA* -------------------------------------------------------------------- Value Opp N# 1/2/1996 20.39% 10.23% 9.48% 9.91% -------------------------------------------------------------------- Value Opp N## 1/2/1996 19.39% 10.23% 9.48% 9.91% -------------------------------------------------------------------- Value Opp Y# 2/19/2002 21.55% NA NA 10.53% --------------------------------------------------------------------
# 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. (1) New Classes A, B and C were offered beginning on February 19, 2002. Performance prior to that date is that of the fund's Classes L, M and N shares, respectively, which have lower operating expenses. Performance prior to February 19, 2002 would have been lower if Classes A, B and C shares expenses were applied during that period. Class I shares commenced operations on 8/31/06. Performance prior to 8/31/06 reflects Class A performance. (2) The initial investment in Classes A and L shares reflects the maximum sales charge and Classes B, C, H, M and N reflect CDSC. (3) Growth of a $10,000 investment in Classes B, C, H, I, L, M, N and Y shares will vary from results seen above due to differences in the expenses charged to these share classes. -------------------------------------------------------------------------------- HOW DID THE FUND PERFORM? The Class A shares of The Hartford Value Opportunities Fund returned 21.12%, before sales charges, for the twelve-month period ended October 31, 2006, underperforming its benchmark, the Russell 3000 Value Index, which returned 21.58% for the same period. The Fund outperformed the 17.77% return of the average fund in the Lipper Multi Cap Value Fund peer group, a group of funds with investment strategies similar to those of the Fund. WHY DID THE FUND PERFORM THIS WAY? Improved investor sentiment regarding the global economy and moderating inflation concerns helped global equity returns during the last year. In this environment, the Russell 3000 Index returned 16.37% during the period, with value stocks, as measured by the Russell 3000 Value Index, outperforming growth stocks, as measured by the Russell 3000 Growth Index, by a margin of 10.62%. Large caps outperformed mid cap stocks, as indicated by the 16.33% return of the S&P 500 versus the 13.43% return of the S&P Midcap 400 Index, but underperformed small cap stocks, as measured by the 19.98% return of the Russell 2000 Index. All ten broad sectors of the Russell 3000 Value Index posted positive returns, with Telecommunication Services, Materials and Industrials leading the way. Reflecting an increasing investor appetite for risk, "safe" stocks such as Utilities posted relatively weaker, but still double-digit absolute returns. Stock selection continued to be the primary driver of the Fund's relative performance, and was particularly strong in the Information Technology, Energy, and Industrials sectors. Our top 103 -------------------------------------------------------------------------------- contributors to benchmark relative performance were US Airways (Industrials), whose shares continued to benefit from the company's improving cost structure, Cisco Systems (Information Technology), whose shares benefited from the global transformation of networks into unified IP-based broadband platforms capable of handling voice, data and video content, and Comcast (Consumer Discretionary), whose shares benefited from strong acceleration in growth across all divisions, specifically due to increasing penetration within household digital cable subscriptions. We held onto our positions in these stocks during the period. The Fund suffered a few stock disappointments during the period which led to its slight underperformance relative to the benchmark. In particular, stock selection was weak within Health Care, Telecommunication Services and Materials. At the margin, the Fund's underweight position in Telecommunication Services, the top performing sector within the Russell 3000 Value index, also detracted from performance. The two largest detractors to relative performance were YRC Worldwide, a trucking company suffering merger-related indigestion, and Boston Scientific, a medical device maker whose shares tumbled on news of weakness in medical device sales, and headline issues with its competitors, and again, merger-related indigestion. Additionally, not owning BellSouth, a Telecommunication Services company whose shares benefited from the strongly anticipated merger with AT&T, also significantly detracted from the Fund's benchmark-relative performance. We initiated a position in Boston Scientific during the period and reduced our position in YRC Worldwide. WHAT IS THE OUTLOOK? We expect global growth to remain above 3%, with the US slowing to the 2-3% range. We have no expectation for a recession, and are impressed so far by the consumer's ability to absorb the twin hits of higher short-term interest rates and the housing-price slowdown. As a result of this outlook and our bottom-up stock picking, our most significant overweight positions relative to the Russell 3000 Value index are: Information Technology, Consumer Discretionary, Industrials, Health Care and Materials. Despite the likelihood of a softening economy next year, we think our stocks are undervalued and have solid catalysts for appreciation. By far our largest benchmark relative underweight remains Financials due to expectations for continued earnings pressure from the flat yield curve, probable worsening of credit conditions, and valuations that are not compensatory. Consumer Staples, Utilities and Energy are also notably underweight, as investor desires for "safety" have led to overvaluation from an earnings growth perspective. DIVERSIFICATION BY INDUSTRY as of October 31, 2006
PERCENTAGE OF INDUSTRY NET ASSETS ------------------------------------------------------------------- Basic Materials 9.3% ------------------------------------------------------------------- Capital Goods 5.3 ------------------------------------------------------------------- Consumer Cyclical 7.2 ------------------------------------------------------------------- Consumer Staples 1.3 ------------------------------------------------------------------- Energy 9.3 ------------------------------------------------------------------- Finance 28.3 ------------------------------------------------------------------- Health Care 7.7 ------------------------------------------------------------------- Services 7.4 ------------------------------------------------------------------- Technology 18.3 ------------------------------------------------------------------- Transportation 4.4 ------------------------------------------------------------------- Short-Term Investments 3.7 ------------------------------------------------------------------- Other Assets & Liabilities -2.2 ------------------------------------------------------------------- TOTAL 100.0% -------------------------------------------------------------------
104 THE HARTFORD ADVISERS FUND SCHEDULE OF INVESTMENTS OCTOBER 31, 2006 (000'S OMITTED) --------------------------------------------------------------------------------
MARKET SHARES VALUE (W) --------- ---------- COMMON STOCK -- 67.9% BASIC MATERIALS -- 4.0% 563 Alcoa, Inc. ...................................... $ 16,265 166 Cameco Corp. ..................................... 5,839 467 Companhia Vale do Rio Doce ADR (G)................ 11,873 290 Dow Chemical Co. ................................. 11,829 182 E.I. DuPont de Nemours & Co. ..................... 8,326 297 Mittal Steel Co. (G).............................. 12,705 ---------- 66,837 ---------- CAPITAL GOODS -- 2.8% 265 American Standard Cos., Inc. ..................... 11,724 194 Boeing Co. ....................................... 15,453 161 Deere & Co. ...................................... 13,723 132 Goodrich Corp. ................................... 5,802 ---------- 46,702 ---------- CONSUMER CYCLICAL -- 5.5% 278 Altria Group, Inc. ............................... 22,577 461 D.R. Horton, Inc. ................................ 10,790 299 eBay, Inc. (D).................................... 9,604 113 Federated Department Stores, Inc. ................ 4,949 486 Gap, Inc. ........................................ 10,209 297 Home Depot, Inc. ................................. 11,068 115 Toyota Motor Corp. (A)............................ 6,767 341 Wal-Mart Stores, Inc. ............................ 16,785 ---------- 92,749 ---------- CONSUMER STAPLES -- 3.7% 127 Clorox Co. ....................................... 8,212 1 Japan Tobacco, Inc. (A)........................... 4,444 278 PepsiCo, Inc. .................................... 17,643 325 Procter & Gamble Co. ............................. 20,627 493 Unilever N.V. NY Shares........................... 11,933 ---------- 62,859 ---------- ENERGY -- 3.4% 265 EnCana Corp. ..................................... 12,571 231 Exxon Mobil Corp. ................................ 16,505 497 Halliburton Co. .................................. 16,065 275 Williams Cos., Inc. .............................. 6,726 123 XTO Energy, Inc. ................................. 5,744 ---------- 57,611 ---------- FINANCE -- 14.4% 312 Aegon N.V. (A).................................... 5,742 395 American International Group, Inc. ............... 26,558 573 Bank of America Corp. ............................ 30,846 145 Capital One Financial Corp. ...................... 11,479 670 Citigroup, Inc. .................................. 33,603 359 Countrywide Financial Corp. ...................... 13,700 485 E*Trade Financial Corp. (D)....................... 11,295 136 Federal Home Loan Mortgage Corp. ................. 9,362 36 Goldman Sachs Group, Inc. ........................ 6,908 118 ING Groep N.V.-Sponsored ADR...................... 5,235 -- Mitsubishi UFJ Financial Group, Inc. (A).......... 5,949 105 Muenchener Rueckversicherungs-Gesellschaft AG (A)............................................. 17,156
MARKET SHARES VALUE (W) --------- ---------- FINANCE -- (CONTINUED) 146 State Street Corp. ............................... $ 9,390 392 UBS AG............................................ 23,466 511 UnitedHealth Group, Inc. ......................... 24,936 312 Western Union Co. ................................ 6,873 ---------- 242,498 ---------- HEALTH CARE -- 8.2% 352 Abbott Laboratories............................... 16,714 204 Amgen, Inc. (D)................................... 15,470 1,137 Boston Scientific Corp. (D)....................... 18,083 759 Bristol-Myers Squibb Co. ......................... 18,788 105 Cardinal Health, Inc. ............................ 6,866 785 Elan Corp. plc ADR (D)(G)......................... 11,370 315 Eli Lilly & Co. .................................. 17,666 361 Sanofi-Aventis S.A. ADR........................... 15,411 505 Schering-Plough Corp. ............................ 11,187 370 Shionogi & Co., Ltd. (A).......................... 7,413 ---------- 138,968 ---------- SERVICES -- 6.7% 340 Accenture Ltd. Class A............................ 11,176 172 Autodesk, Inc. (D)................................ 6,336 100 Fluor Corp. ...................................... 7,835 162 Monster Worldwide, Inc. (D)....................... 6,559 1,278 Sun Microsystems, Inc. (D)........................ 6,938 592 Time Warner, Inc. ................................ 11,838 403 United Parcel Service, Inc. Class B (G)........... 30,351 345 Viacom, Inc. Class B (D).......................... 13,437 274 Walt Disney Co. .................................. 8,633 940 XM Satellite Radio Holdings, Inc. Class A (D)(G).......................................... 10,958 ---------- 114,061 ---------- TECHNOLOGY -- 18.9% 304 Adobe Systems, Inc. (D)........................... 11,643 127 American Tower Corp. Class A (D).................. 4,557 846 AT&T, Inc. ....................................... 28,959 541 Broadcom Corp. Class A (D)........................ 16,361 1,081 Cisco Systems, Inc. (D)........................... 26,082 1,896 EMC Corp. (D)..................................... 23,230 325 First Data Corp. ................................. 7,874 986 Flextronics International Ltd. (D)................ 11,434 1,509 General Electric Co. ............................. 52,995 39 Google, Inc. (D).................................. 18,674 496 Marvell Technology Group Ltd. (D)................. 9,065 454 Maxim Integrated Products, Inc. .................. 13,616 527 Medtronic, Inc. .................................. 25,669 881 Microsoft Corp. .................................. 25,294 516 Oracle Corp. (D).................................. 9,534 2 Samsung Electronics Co., Ltd. (A)................. 1,139 229 Sharp Corp. (A)................................... 4,076 873 Sprint Nextel Corp. (G)........................... 16,316 484 Yahoo!, Inc. (D).................................. 12,741 ---------- 319,259 ----------
The accompanying notes are an integral part of these financial statements. 105 THE HARTFORD ADVISERS FUND SCHEDULE OF INVESTMENTS -- (CONTINUED) OCTOBER 31, 2006 (000'S OMITTED) --------------------------------------------------------------------------------
MARKET SHARES VALUE (W) --------- ---------- COMMON STOCK -- (CONTINUED) UTILITIES -- 0.3% 47 E.On AG (A)....................................... $ 5,649 ---------- Total common stock (cost $1,079,480)............................... $1,147,193 ---------- PRINCIPAL AMOUNT --------- MUNICIPAL BONDS -- 0.2% GENERAL OBLIGATIONS -- 0.2% $ 2,000 Oregon School Boards Association, Taxable Pension, 4.76%, 06/30/2028............................... $ 1,843 2,050 State of Illinois, Taxable Pension, 5.10%, 06/01/2033............................... 1,980 ---------- Total municipal bonds (cost $4,028)................................... $ 3,823 ---------- ASSET & COMMERCIAL MORTGAGE BACKED SECURITIES -- 5.2% FINANCE -- 5.2% $ 1,380 Banc of America Commercial Mortgage, Inc., 5.35%, 09/10/2047 (L)........................... $ 1,375 905 Bear Stearns Alt-A Trust, 5.99%, 03/25/2036 (L)........................... 914 1,755 Bear Stearns Commercial Mortgage Securities, Inc., 5.30%, 10/12/2042 (L)........................... 1,748 730 Bear Stearns Commercial Mortgage Securities, Inc., 5.47%, 04/12/2038............................... 746 655 Centex Home Equity, 4.72%, 10/25/2031............................... 648 2,750 Citigroup/Deutsche Bank Commercial Mortgage Trust, 5.40%, 07/15/2044 (L)........................... 2,752 2,750 Commercial Mortgage Pass Through Certificates, 5.12%, 06/10/2044............................... 2,719 10,000 Connecticut RRB Special Purpose Trust CL&P, 6.21%, 12/30/2011............................... 10,350 1,505 Credit Suisse Mortgage Capital Certificates, 5.47%, 09/15/2039............................... 1,521 2,730 Credit Suisse Mortgage Capital Certificates, 5.56%, 02/15/2039............................... 2,783 3,000 Goldman Sachs Mortgage Securities Corp. II, 4.75%, 07/10/2039............................... 2,898 2,750 Greenwich Capital Commercial Funding Corp., 5.22%, 04/10/2037............................... 2,739 1,850 Household Automotive Trust, 5.28%, 09/19/2011............................... 1,850 839 Indymac Index Mortgage Loan Trust, 5.88%, 06/25/2036 (L)........................... 846 1,895 JP Morgan Chase Commercial Mortgage Security Corp., 5.34%, 12/15/2044 (L)........................... 1,894 3,050 JP Morgan Chase Commercial Mortgage Security Corp., 5.48%, 12/12/2044............................... 3,089
PRINCIPAL MARKET AMOUNT VALUE (W) --------- ---------- FINANCE -- (CONTINUED) $ 620 Marriott Vacation Club Owner Trust, 5.37%, 12/25/2030 (I)(Q)........................ $ 620 10,000 MBNA Credit Card Master Note Trust, 4.95%, 06/15/2009............................... 9,995 2,750 Merrill Lynch Mortgage Trust, 5.05%, 07/12/2038............................... 2,705 2,875 Morgan Stanley Capital I, 5.23%, 09/15/2042............................... 2,861 10,000 Peco Energy Transition Trust, 6.13%, 03/01/2009............................... 10,106 10,000 PSE&G Transition Funding LLC, 6.61%, 06/15/2015............................... 10,745 2,275 Residential Accredit Loans, Inc., 5.26%, 02/25/2035............................... 2,261 2,575 Susquehanna Auto Lease Trust, 5.21%, 03/16/2009 (I)........................... 2,574 3,000 Wachovia Bank Commercial Mortgage Trust, 5.12%, 07/15/2042 (G)........................... 2,960 2,033 Wells Fargo Mortgage Backed Securities Trust, 4.55%, 03/25/2035 (L)........................... 2,004 2,870 Wells Fargo Mortgage Backed Securities Trust, 5.54%, 04/25/2036 (L)........................... 2,881 ---------- Total asset & commercial mortgage backed securities (cost $88,658).................................. $ 88,584 ---------- CORPORATE BONDS: INVESTMENT GRADE -- 11.3% BASIC MATERIALS -- 0.2% $ 4,000 Alcan, Inc., 6.45%, 03/15/2011............................... $ 4,161 ---------- CAPITAL GOODS -- 0.1% 2,000 Rockwell Automation, Inc., 6.70%, 01/15/2028............................... 2,226 ---------- CONSUMER CYCLICAL -- 0.6% 1,900 DaimlerChrysler N.A. Holdings Corp., 5.88%, 03/15/2011............................... 1,914 1,975 DaimlerChrysler N.A. Holdings Corp., 6.50%, 11/15/2013............................... 2,041 3,000 Target Corp., 5.88%, 11/01/2008............................... 3,046 3,000 Wal-Mart Stores, Inc., 6.88%, 08/10/2009............................... 3,139 ---------- 10,140 ---------- CONSUMER STAPLES -- 1.6% 2,000 Archer Daniels Midland Co., 8.13%, 06/01/2012............................... 2,274 4,000 Coca-Cola Enterprises, Inc., 5.75%, 11/01/2008............................... 4,048 2,000 Colgate-Palmolive Co., 5.58%, 11/06/2008............................... 2,023 2,906 ConAgra Foods, Inc., 6.70%, 08/01/2027............................... 3,120 2,025 Diageo Capital plc, 4.38%, 05/03/2010............................... 1,971 500 Pepsi Bottling Group, Inc., 7.00%, 03/01/2029............................... 580 3,000 PepsiAmericas, Inc., 6.38%, 05/01/2009............................... 3,064
The accompanying notes are an integral part of these financial statements. 106 --------------------------------------------------------------------------------
PRINCIPAL MARKET AMOUNT VALUE (W) --------- ---------- CORPORATE BONDS: INVESTMENT GRADE -- (CONTINUED) CONSUMER STAPLES -- (CONTINUED) $ 6,892 Procter & Gamble Co., 9.36%, 01/01/2021............................... $ 8,656 800 Weyerhaeuser Co., 7.38%, 03/15/2032............................... 841 ---------- 26,577 ---------- ENERGY -- 0.2% 4,000 National Fuel Gas Co., 6.00%, 03/01/2009............................... 4,057 ---------- FINANCE -- 5.6% 3,675 Ace INA Holdings, Inc., 5.88%, 06/15/2014............................... 3,756 2,100 AMBAC Financial Group, Inc., 5.95%, 12/05/2035............................... 2,123 250 American General Finance Corp., 6.63%, 02/15/2029............................... 274 4,000 AXA Financial, Inc., 7.00%, 04/01/2028............................... 4,531 1,475 Bank of America Corp., 5.88%, 02/15/2009............................... 1,500 3,000 Bank of America Corp., 7.40%, 01/15/2011............................... 3,248 1,010 BB&T Corp., 4.90%, 06/30/2017............................... 960 3,700 Berkshire Hathaway Finance Corp., 4.85%, 01/15/2015............................... 3,594 1,875 Brandywine Operating Partnership, 6.00%, 04/01/2016............................... 1,904 750 Capital One Bank, 6.50%, 06/13/2013............................... 790 870 Capital One Financial Corp., 5.70%, 09/15/2011............................... 882 750 Citigroup, Inc., 3.63%, 02/09/2009............................... 727 1,600 Citigroup, Inc., 6.00%, 10/31/2033............................... 1,630 500 Citigroup, Inc., 6.50%, 01/18/2011............................... 526 1,980 Credit Suisse First Boston USA, Inc., 4.88%, 01/15/2015............................... 1,914 1,500 Developers Diversified Realty Corp., 5.38%, 10/15/2012............................... 1,492 3,350 EOP Operating L.P., 4.75%, 03/15/2014............................... 3,189 2,725 ERAC USA Finance Co., 7.35%, 06/15/2008 (I)........................... 2,807 885 Everest Reinsurance Holdings, Inc., 5.40%, 10/15/2014............................... 871 2,600 HSBC Bank USA, 3.88%, 09/15/2009............................... 2,520 2,200 International Lease Finance Corp., 5.00%, 09/15/2012............................... 2,166 2,000 Jackson National Life Insurance Co., 8.15%, 03/15/2027 (I)........................... 2,461 1,655 John Deere Capital Corp., 4.88%, 10/15/2010............................... 1,636 2,795 JP Morgan Chase & Co., 5.13%, 09/15/2014............................... 2,745 250 KeyCorp Capital II, 6.88%, 03/17/2029............................... 266
PRINCIPAL MARKET AMOUNT VALUE (W) --------- ---------- FINANCE -- (CONTINUED) $ 1,550 Kimco Realty Corp., 5.78%, 03/15/2016............................... $ 1,569 2,335 Liberty Mutual Group, Inc., 5.75%, 03/15/2014 (I)........................... 2,357 1,000 MBIA, Inc., 7.00%, 12/15/2025............................... 1,093 3,650 Metlife, Inc., 6.38%, 06/15/2034............................... 3,927 250 National City Corp., 6.88%, 05/15/2019............................... 277 3,100 New England Mutual Life Insurance Co., 7.88%, 02/15/2024 (I)........................... 3,792 2,000 Prudential Funding LLC, 6.75%, 09/15/2023 (I)........................... 2,182 250 Republic New York Capital I, 7.75%, 11/15/2026............................... 259 500 Santander Central Hispano Issuances Ltd., 7.63%, 11/03/2009............................... 533 3,100 Simon Property Group L.P., 6.10%, 05/01/2016............................... 3,230 1,500 Sovereign Capital Trust IV, 7.91%, 06/13/2036............................... 1,686 200 State Street Corp., 7.65%, 06/15/2010............................... 215 3,000 Torchmark Corp., 8.25%, 08/15/2009............................... 3,223 1,000 Toyota Motor Credit Corp., 5.50%, 12/15/2008............................... 1,006 3,100 U.S. Bank N.A., 4.95%, 10/30/2014............................... 3,028 2,750 UnitedHealth Group, Inc., 5.00%, 08/15/2014............................... 2,680 1,005 Wachovia Capital Trust III, 5.80%, 08/29/2049............................... 1,014 3,000 Wachovia Corp., 5.63%, 12/15/2008............................... 3,025 1,740 WellPoint, Inc., 5.00%, 01/15/2011............................... 1,722 4,000 Wells Fargo Bank NA, 6.45%, 02/01/2011............................... 4,197 580 Willis North America, Inc., 5.63%, 07/15/2015............................... 554 4,165 XL Capital Europe plc, 6.50%, 01/15/2012............................... 4,357 ---------- 94,438 ---------- HEALTH CARE -- 0.6% 3,000 Becton, Dickinson & Co., 6.70%, 08/01/2028............................... 3,323 1,600 Pharmacia Corp., 6.60%, 12/01/2028............................... 1,826 4,000 Wyeth, 6.95%, 03/15/2011............................... 4,262 ---------- 9,411 ---------- SERVICES -- 0.8% 3,000 COX Communications, Inc., 5.45%, 12/15/2014............................... 2,931 4,000 FedEx Corp., 3.50%, 04/01/2009............................... 3,844 1,570 Harrah's Operating Co., Inc., 6.50%, 06/01/2016............................... 1,382
The accompanying notes are an integral part of these financial statements. 107 THE HARTFORD ADVISERS FUND SCHEDULE OF INVESTMENTS -- (CONTINUED) OCTOBER 31, 2006 (000'S OMITTED) --------------------------------------------------------------------------------
PRINCIPAL MARKET AMOUNT VALUE (W) --------- ---------- CORPORATE BONDS: INVESTMENT GRADE -- (CONTINUED) SERVICES -- (CONTINUED) $ 2,100 News America, Inc., 6.40%, 12/15/2035............................... $ 2,106 3,040 Viacom, Inc., 6.88%, 04/30/2036 (I)........................... 3,061 ---------- 13,324 ---------- TECHNOLOGY -- 1.3% 4,000 Comcast Cable Communications, Inc., 6.88%, 06/15/2009............................... 4,158 500 Comcast Cable Communications, Inc., 8.50%, 05/01/2027............................... 618 1,800 Deutsche Telekom International Finance B.V., 8.25%, 06/15/2030............................... 2,236 675 Embarq Corp., 7.08%, 06/01/2016............................... 691 4,725 General Electric Co., 5.00%, 02/01/2013............................... 4,683 2,900 Siemens Finance, 5.75%, 10/17/2016 (I)........................... 2,960 3,100 Telecom Italia Capital, 5.25%, 10/01/2015............................... 2,899 2,600 Verizon Communications, Inc., 5.55%, 02/15/2016............................... 2,589 250 Verizon Global Funding Corp., 7.25%, 12/01/2010............................... 268 250 Verizon Global Funding Corp., 7.75%, 12/01/2030............................... 292 ---------- 21,394 ---------- UTILITIES -- 0.3% 500 Alabama Power Co., 7.13%, 10/01/2007............................... 508 1,500 Midamerican Energy Holdings Co., 6.13%, 04/01/2036............................... 1,543 1,150 Northern Border Pipeline Co., 7.75%, 09/01/2009............................... 1,222 695 Taqa Abu Dhabi National, 5.88%, 10/27/2016 (I)........................... 708 250 TransCanada Pipelines Ltd., 6.49%, 01/21/2009............................... 256 ---------- 4,237 ---------- Total corporate bonds: investment grade (cost $185,428)................................. $ 189,965 ---------- U.S. GOVERNMENT SECURITIES -- 9.9% OTHER DIRECT FEDERAL OBLIGATIONS -- 1.0% $ 10,000 Financing Corp. 9.80%, 2018..................................... $ 14,111 3,676 Financing Corp. Zero Coupon Strip, 4.40%, 2013 (M)................................. 2,606 ---------- 16,717 ---------- U.S. TREASURY SECURITIES -- 8.9% 13,050 2.00% 2016 (O)(G)................................. 13,024 13,425 2.375% 2025 (O)(G)................................ 14,659 14,300 2.625% 2009 (G)................................... 13,663 24,725 3.50% 2010 (G).................................... 23,905 28,975 3.875% 2010 (G)................................... 28,298
PRINCIPAL MARKET AMOUNT VALUE (W) --------- ---------- U.S. TREASURY SECURITIES -- (CONTINUED) $ 19,650 4.375% 2010 (G)................................... $ 19,503 20,125 4.875% 2011 (G)................................... 20,365 8,800 5.375% 2031 (G)................................... 9,554 6,775 6.25% 2023 (G).................................... 7,884 ---------- 150,855 ---------- Total U.S. government securities (cost $164,655)................................. $ 167,572 ---------- U.S. GOVERNMENT AGENCIES -- 3.0% FEDERAL HOME LOAN MORTGAGE CORPORATION -- 0.9% $ 2,890 2.50% 2013........................................ $ 2,813 12,286 6.50% 2036 (Q).................................... 12,524 ---------- 15,337 ---------- FEDERAL NATIONAL MORTGAGE ASSOCIATION -- 1.2% 125 5.00% 2036........................................ 121 20,000 5.11% 2006 (M).................................... 19,960 465 6.50% 2036........................................ 474 ---------- 20,555 ---------- GOVERNMENT NATIONAL MORTGAGE ASSOCIATION -- 0.9% 5,401 5.50% 2036........................................ 5,379 3,542 6.00% 2023 -- 2034................................ 3,592 2,542 6.50% 2026 -- 2035................................ 2,621 2,753 7.00% 2031 -- 2033................................ 2,847 541 8.00% 2029 -- 2031................................ 572 44 9.00% 2023........................................ 47 ---------- 15,058 ---------- Total U.S. government agencies (cost $50,644).................................. $ 50,950 ---------- Total long-term investments (cost $1,572,893)............................... $1,648,087 ---------- SHORT-TERM INVESTMENTS -- 15.9% REPURCHASE AGREEMENTS -- 1.2% $ 4,009 Bank of America Securities TriParty Joint Repurchase Agreement, 5.31%, 11/01/2006............................... $ 4,009 2,358 Credit Suisse Securities TriParty Joint Repurchase Agreement, 5.32%, 11/01/2006............................... 2,358 94 Deutsche Bank Securities Joint Repurchase Agreement, 5.25%, 11/01/2006............................... 94 1,887 Deutsche Bank Securities TriParty Joint Repurchase Agreement, 5.30%, 11/01/2006............................... 1,887 3,962 Deutsche Bank Securities TriParty Joint Repurchase Agreement, 5.32%, 11/01/2006............................... 3,962 2,169 Morgan Stanley & Co., Inc. TriParty Joint Repurchase Agreement, 5.29%, 11/01/2006............................... 2,169 5,329 UBS Securities TriParty Joint Repurchase Agreement, 5.31%, 11/01/2006............................... 5,329 ---------- 19,808 ----------
The accompanying notes are an integral part of these financial statements. 108 --------------------------------------------------------------------------------
PRINCIPAL MARKET AMOUNT VALUE (W) --------- ---------- SHORT-TERM INVESTMENTS -- (CONTINUED) FINANCE -- 2.0% $ 9,700 FHLB Discount Note, 5.12%, 11/17/2006 (M)........................... $ 9,680 25,000 FHLB Discount Note, 5.12%, 11/21/2006 (M)........................... 24,929 ---------- 34,609 ---------- SHARES --------- SECURITIES PURCHASED WITH PROCEEDS FROM SECURITY LENDING -- 12.7% 213,868 BNY Institutional Cash Reserve Fund............... $ 213,868 ---------- Total short-term investments (cost $268,285)................................. $ 268,285 ---------- Total investments in securities (cost $1,841,178) (C)........................... $1,916,372 ==========
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 11.15% of total net assets at October 31, 2006. (A)The aggregate value of securities valued in good faith at fair value by, or under the direction of, the Funds' Board of Directors at October 31, 2006, was $58,335, which represents 3.45% of total net assets. (C)At October 31, 2006, the cost of securities for federal income tax purposes was $1,851,510 and the aggregate gross unrealized appreciation and depreciation based on that cost were: Unrealized appreciation........................ $102,527 Unrealized depreciation........................ (37,665) -------- Net unrealized appreciation.................... $ 64,862 ========
(D)Currently non-income producing. (G)Security is partially on loan at October 31, 2006. (I)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 qualified institutional buyers. 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, 2006, was $23,522, which represents 1.39% of total net assets. (L)Variable rate securities; the rate reported is the coupon rate in effect at October 31, 2006. (M)The interest rate disclosed for these securities represents the effective yield on the date of acquisition. (O)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. (Q)The cost of securities purchased on a when-issued or delayed delivery basis at October 31, 2006 was $13,106. (W)See Note 2b of accompanying Notes to Financial Statements regarding valuation of securities. FORWARD FOREIGN CURRENCY CONTRACTS OUTSTANDING AT OCTOBER 31, 2006
UNREALIZED MARKET CONTRACT DELIVERY APPRECIATION DESCRIPTION TRANSACTION VALUE AMOUNT DATE (DEPRECIATION) ----------- ----------- ------ -------- ---------- -------------- Japanese Yen Buy $ 402 $ 397 11/01/2006 $ 5 Japanese Yen Buy 3,112 3,103 11/02/2006 9 Japanese Yen Buy 1,704 1,691 11/06/2006 13 --- $27 ===
The accompanying notes are an integral part of these financial statements. 109 THE HARTFORD AGGRESSIVE GROWTH ALLOCATION FUND SCHEDULE OF INVESTMENTS OCTOBER 31, 2006 (000'S OMITTED) --------------------------------------------------------------------------------
MARKET SHARES VALUE (W) --------- --------- AFFILIATED INVESTMENT COMPANIES -- 100.0% EQUITY FUNDS -- 100.0% 625 Hartford Capital Appreciation Fund, Class Y....... $ 26,389 2,245 Hartford Disciplined Equity Fund, Class Y......... 30,494 169 Hartford Dividend and Growth Fund, Class Y........ 3,668 56 Hartford Equity Income Fund, Class Y.............. 790 577 Hartford Global Leaders Fund, Class Y............. 11,628 705 Hartford Growth Fund, Class Y (D)................. 13,318 244 Hartford Growth Opportunities Fund, Class Y....... 7,331 552 Hartford International Capital Appreciation Fund, Class Y......................................... 8,376 252 Hartford International Opportunities Fund, Class Y............................................... 4,207 903 Hartford International Small Company Fund, Class Y............................................... 14,775 233 Hartford MidCap Value Fund, Class Y............... 3,488 291 Hartford Select MidCap Growth Fund, Class Y....... 3,307 205 Hartford Select MidCap Value Fund, Class Y........ 2,537 73 Hartford Select SmallCap Growth Fund, Class Y (D)............................................. 776 123 Hartford Select SmallCap Value Fund, Class Y...... 1,344 674 Hartford Small Company Fund, Class Y (D).......... 15,331 608 Hartford SmallCap Growth Fund, Class Y (D)........ 19,431 1,535 Hartford Value Fund, Class Y...................... 19,814 779 Hartford Value Opportunities Fund, Class Y........ 14,402 -------- Total investments in affiliated investment companies (cost $179,346) (C)............................. $201,406 ========
Note: Percentage of investments as shown is the ratio of the total market value to total net assets. (C)At October 31, 2006, the cost of securities for federal income tax purposes was $179,348 and the aggregate gross unrealized appreciation and depreciation based on that cost were: Unrealized appreciation......................... $22,058 Unrealized depreciation......................... -- ------- Net unrealized appreciation..................... $22,058 =======
(D)Currently non-income producing. (W)See Note 2b of accompanying Notes to Financial Statements regarding valuation of securities. The accompanying notes are an integral part of these financial statements. 110 THE HARTFORD BALANCED ALLOCATION FUND SCHEDULE OF INVESTMENTS OCTOBER 31, 2006 (000'S OMITTED) --------------------------------------------------------------------------------
MARKET SHARES VALUE (W) --------- --------- AFFILIATED INVESTMENT COMPANIES -- 99.8% EQUITY FUNDS -- 59.8% 1,891 Hartford Capital Appreciation Fund, Class Y....... $ 79,773 3,136 Hartford Disciplined Equity Fund, Class Y......... 42,589 907 Hartford Dividend and Growth Fund, Class Y........ 19,706 158 Hartford Equity Income Fund, Class Y.............. 2,216 1,858 Hartford Global Leaders Fund, Class Y............. 37,421 631 Hartford Growth Fund, Class Y (D)................. 11,914 809 Hartford Growth Opportunities Fund, Class Y....... 24,302 2,031 Hartford International Capital Appreciation Fund, Class Y......................................... 30,815 752 Hartford International Opportunities Fund, Class Y............................................... 12,537 774 Hartford International Small Company Fund, Class Y............................................... 12,672 836 Hartford MidCap Value Fund, Class Y............... 12,537 1,050 Hartford Select MidCap Growth Fund, Class Y....... 11,931 688 Hartford Select MidCap Value Fund, Class Y........ 8,535 182 Hartford Select SmallCap Growth Fund, Class Y (D)............................................. 1,932 1,702 Hartford Small Company Fund, Class Y (D).......... 38,696 665 Hartford SmallCap Growth Fund, Class Y (D)........ 21,231 580 Hartford Stock Fund, Class Y...................... 12,736 1,574 Hartford Value Fund, Class Y...................... 20,314 2,012 Hartford Value Opportunities Fund, Class Y........ 37,182 -------- Total equity funds (cost $385,371)................................. $439,039 --------
MARKET SHARES VALUE (W) --------- --------- FIXED INCOME FUNDS -- 38.6% 3,757 Hartford Floating Rate Fund, Class Y.............. $ 37,983 1,624 Hartford High Yield Fund, Class Y................. 12,860 4,514 Hartford Income Fund, Class Y..................... 46,587 6,477 Hartford Inflation Plus Fund, Class Y............. 67,681 4,425 Hartford Short Duration Fund, Class Y............. 43,721 6,987 Hartford Total Return Bond Fund, Class Y.......... 74,829 -------- Total fixed income funds (cost $286,309)................................. $283,661 -------- MONEY MARKET FUND -- 1.4% 10,232 Hartford Money Market Fund, Class Y............... $ 10,232 -------- Total money market fund (cost $10,232).................................. $ 10,232 -------- Total investments in affiliated investment companies (cost $681,912) (C)............................. $732,932 ========
Note: Percentage of investments as shown is the ratio of the total market value to total net assets. (C)At October 31, 2006, the cost of securities for federal income tax purposes was $681,959 and the aggregate gross unrealized appreciation and depreciation based on that cost were: Unrealized appreciation......................... $53,801 Unrealized depreciation......................... (2,828) ------- Net unrealized appreciation..................... $50,973 =======
(D)Currently non-income producing. (W)See Note 2b of accompanying Notes to Financial Statements regarding valuation of securities. The accompanying notes are an integral part of these financial statements. 111 THE HARTFORD BALANCED INCOME FUND SCHEDULE OF INVESTMENTS OCTOBER 31, 2006 (000'S OMITTED) --------------------------------------------------------------------------------
MARKET SHARES VALUE (W) --------- --------- COMMON STOCK -- 45.4% BASIC MATERIALS -- 4.4% 1 Air Products and Chemicals, Inc. ................. $ 49 3 Dow Chemical Co. ................................. 126 3 E.I. DuPont de Nemours & Co. ..................... 115 1 International Paper Co. .......................... 23 2 Kimberly-Clark Corp. ............................. 126 2 Packaging Corp. of America........................ 53 1 PPG Industries, Inc. ............................. 48 ------- 540 ------- CAPITAL GOODS -- 1.1% 1 Deere & Co. ...................................... 43 2 Pitney Bowes, Inc. ............................... 98 ------- 141 ------- CONSUMER CYCLICAL -- 1.6% 3 Altria Group, Inc. ............................... 203 ------- CONSUMER STAPLES -- 2.5% 1 Campbell Soup Co. ................................ 52 1 General Mills, Inc. .............................. 74 3 Kellogg Co. ...................................... 131 1 Weyerhaeuser Co. ................................. 51 ------- 308 ------- ENERGY -- 4.8% 3 Chevron Corp. .................................... 215 1 ConocoPhillips.................................... 60 4 Exxon Mobil Corp. ................................ 271 1 Royal Dutch Shell plc............................. 49 ------- 595 ------- FINANCE -- 11.6% 1 Allstate Corp. ................................... 80 5 Bank of America Corp. ............................ 264 1 Bank of New York Co., Inc. ....................... 21 1 Chubb Corp. ...................................... 69 5 Citigroup, Inc. .................................. 225 4 Host Hotels & Resorts, Inc. ...................... 83 2 JP Morgan Chase & Co. ............................ 109 2 PNC Financial Services Group, Inc. ............... 161 1 SunTrust Banks, Inc. ............................. 71 3 UBS AG............................................ 150 2 US Bancorp........................................ 74 1 Wachovia Corp. ................................... 56 2 Wells Fargo & Co. ................................ 80 ------- 1,443 ------- HEALTH CARE -- 3.3% 2 Abbott Laboratories............................... 76 1 AstraZeneca plc ADR............................... 29 1 Baxter International, Inc. ....................... 23 3 Bristol-Myers Squibb Co. ......................... 74 2 Pfizer, Inc. ..................................... 53 3 Wyeth............................................. 138 ------- 393 -------
MARKET SHARES VALUE (W) --------- --------- SERVICES -- 0.9% 2 R.R. Donnelley & Sons Co. ........................ $ 61 2 Waste Management, Inc. ........................... 56 ------- 117 ------- TECHNOLOGY -- 8.6% 8 AT&T, Inc. ....................................... 281 4 BellSouth Corp. .................................. 180 2 Chunghwa Telecom Co., Ltd. ADR.................... 37 8 General Electric Co. ............................. 280 5 Taiwan Semiconductor Manufacturing Co., Ltd. ADR............................................. 49 4 Verizon Communications, Inc. ..................... 163 2 Vodafone Group plc ADR............................ 62 ------- 1,052 ------- UTILITIES -- 6.6% 1 American Electric Power Co., Inc. ................ 58 1 Consolidated Edison, Inc. ........................ 68 1 Dominion Resources, Inc. ......................... 105 -- Entergy Corp. .................................... 26 2 Exelon Corp. ..................................... 93 5 FPL Group, Inc. .................................. 270 2 PPL Corp. ........................................ 66 1 SCANA Corp. ...................................... 44 2 Southern Co. ..................................... 66 ------- 796 ------- Total common stock (cost $5,286)................................... $ 5,588 ------- PRINCIPAL AMOUNT --------- ASSET & COMMERCIAL MORTGAGE BACKED SECURITIES -- 4.7% FINANCE -- 4.7% $ 75 BMW Vehicle Owner Trust, 3.32%, 02/25/2009............................... $ 74 100 Carmax Auto Owner Trust, 4.34%, 09/15/2010............................... 98 97 Chase Commercial Mortgage Securities Corp., 6.39%, 11/18/2030............................... 99 100 Commercial Mortgage Pass-Through Certificates, 5.96%, 06/10/2046 (L)........................... 104 100 Morgan Stanley Capital I, 5.23%, 09/15/2042............................... 100 100 Providian Gateway Master Trust, 3.65%, 11/15/2011 (I)........................... 98 ------- Total asset & commercial mortgage backed securities (cost $565)..................................... $ 573 -------
The accompanying notes are an integral part of these financial statements. 112 --------------------------------------------------------------------------------
PRINCIPAL MARKET AMOUNT VALUE (W) --------- --------- CORPORATE BONDS: INVESTMENT GRADE -- 36.3% BASIC MATERIALS -- 1.0% $ 30 Agrium, Inc., 7.13%, 05/23/2036............................... $ 32 25 Inco Ltd., 7.75%, 05/15/2012............................... 27 20 Methanex Corp., 8.75%, 08/15/2012............................... 22 20 Temple-Inland, Inc., 6.38%, 01/15/2016............................... 21 25 Yara International ASA, 5.25%, 12/15/2014 (I)........................... 24 ------- 126 ------- CAPITAL GOODS -- 0.3% 15 Goodrich Co., 6.29%, 07/01/2016............................... 16 25 Tyco International Group S.A., 6.75%, 02/15/2011............................... 26 ------- 42 ------- CONSUMER CYCLICAL -- 1.5% 30 Altria Group, Inc., 7.00%, 11/04/2013............................... 33 20 Avnet, Inc., 6.63%, 09/15/2016............................... 21 20 D.R. Horton, Inc., 8.00%, 02/01/2009............................... 21 5 DaimlerChrysler N.A. Holdings Corp., 5.75%, 05/18/2009............................... 5 50 DaimlerChrysler N.A. Holdings Corp., 6.50%, 11/15/2013............................... 52 20 DaimlerChrysler N.A. Holdings Corp., 8.50%, 01/18/2031............................... 24 5 General Motors Corp., 8.38%, 07/15/2033............................... 4 20 Pulte Homes, Inc., 7.88%, 08/01/2011............................... 23 ------- 183 ------- CONSUMER STAPLES -- 2.0% 25 Cia Brasileira de Bebidas, 8.75%, 09/15/2013............................... 29 25 Coca-Cola Enterprises, Inc., 6.70%, 10/15/2036............................... 28 25 ConAgra Foods, Inc., 7.00%, 10/01/2028............................... 27 45 Kraft Foods, Inc., 4.13%, 11/12/2009............................... 44 35 PepsiAmericas, Inc., 4.88%, 01/15/2015............................... 34 30 SABMiller plc, 6.20%, 07/01/2011 (I)........................... 31 20 Tyson Foods, Inc., 6.85%, 04/01/2016............................... 21
PRINCIPAL MARKET AMOUNT VALUE (W) --------- --------- CONSUMER STAPLES -- (CONTINUED) $ 30 Weyerhaeuser Co., 6.75%, 03/15/2012............................... $ 32 ------- 246 ------- ENERGY -- 1.7% 25 Amerada Hess Corp., 7.88%, 10/01/2029............................... 30 15 Anadarko Petroleum Corp., 6.45%, 09/15/2036............................... 16 15 Energy Transfer Partners, 6.63%, 10/15/2036............................... 15 20 Pemex Project Funding Master Trust, 5.75%, 12/15/2015............................... 20 10 Pemex Project Funding Master Trust, 7.17%, 10/15/2009 (K)(L)........................ 10 30 Phillips Petroleum Co., 8.75%, 05/25/2010............................... 33 30 Valero Energy Corp., 7.50%, 04/15/2032............................... 35 25 Weatherford International Ltd., 6.50%, 08/01/2036............................... 26 25 XTO Energy, Inc., 7.50%, 04/15/2012............................... 28 ------- 213 ------- FINANCE -- 15.2% 30 Ace Capital Trust II, 9.70%, 04/01/2030............................... 41 20 Allied World Assurance, 7.50%, 08/01/2016............................... 21 30 Allstate Finance Global Fund II, 4.25%, 02/26/2010............................... 29 30 American General Finance Corp., 4.63%, 05/15/2009............................... 30 25 Ameriprise Financial, Inc., 5.35%, 11/15/2010............................... 25 25 Archstone-Smith Operating Trust, 5.25%, 05/01/2015............................... 25 25 Avalonbay Communities, Inc., 7.50%, 08/01/2009............................... 26 25 Axa S.A., 8.60%, 12/15/2030............................... 33 10 Banco Mercantil Del Nort, 6.14%, 10/13/2016 (I)........................... 10 50 Bank of America Corp., 5.25%, 12/01/2015............................... 49 60 Bank of America Corp., 7.40%, 01/15/2011............................... 65 25 Brandywine Operating Partnership, 5.75%, 04/01/2012............................... 25 25 Camden Property Trust, 4.38%, 01/15/2010............................... 24 25 CIT Group, Inc., 6.00%, 04/01/2036............................... 25 45 Citigroup, Inc., 5.00%, 09/15/2014............................... 44
The accompanying notes are an integral part of these financial statements. 113 THE HARTFORD BALANCED INCOME FUND SCHEDULE OF INVESTMENTS -- (CONTINUED) OCTOBER 31, 2006 (000'S OMITTED) --------------------------------------------------------------------------------
PRINCIPAL MARKET AMOUNT VALUE (W) --------- --------- CORPORATE BONDS: INVESTMENT GRADE -- (CONTINUED) FINANCE -- (CONTINUED) $ 20 Citigroup, Inc., 5.63%, 08/27/2012............................... $ 20 75 Citigroup, Inc., 6.00%, 10/31/2033............................... 76 25 Colonial Realty L.P., 6.05%, 09/01/2016............................... 25 80 Credit Suisse First Boston USA, Inc., 5.13%, 08/15/2015............................... 79 30 Developers Diversified Realty Corp., 5.00%, 05/03/2010............................... 30 45 EOP Operating L.P., 6.80%, 01/15/2009............................... 46 20 ERP Operating L.P., 6.95%, 03/02/2011............................... 21 20 Everest Reinsurance Holdings, Inc., 8.75%, 03/15/2010............................... 22 70 Goldman Sachs Group, Inc., 6.45%, 05/01/2036............................... 74 50 Goldman Sachs Group, Inc., 6.65%, 05/15/2009............................... 52 30 HBOS plc, 6.00%, 11/01/2033 (I)........................... 31 20 Health Care Property Investors, Inc., 6.30%, 09/15/2016............................... 20 100 HSBC Finance Corp., 6.75%, 05/15/2011............................... 106 20 International Lease Finance Corp., 5.63%, 09/20/2013............................... 20 30 International Lease Finance Corp., 6.38%, 03/15/2009............................... 31 25 Jefferies Group, Inc., 6.25%, 01/15/2036............................... 24 30 John Deere Capital Corp., 5.40%, 04/07/2010............................... 30 55 JP Morgan Chase & Co., 5.13%, 09/15/2014............................... 54 70 JP Morgan Chase & Co., 6.75%, 02/01/2011............................... 74 30 Kimco Realty Corp., 5.78%, 03/15/2016............................... 30 25 Liberty Mutual Group, Inc., 5.75%, 03/15/2014 (I)........................... 25 25 Liberty Property L.P., 7.75%, 04/15/2009............................... 26 15 Lincoln National Corp., 6.15%, 04/07/2036............................... 16 70 Merrill Lynch & Co., Inc., 6.00%, 02/17/2009............................... 71 25 Metlife, Inc., 6.13%, 12/01/2011............................... 26 10 Ministry Finance Russia, 3.00%, 05/14/2008............................... 10 45 Morgan Stanley, 4.75%, 04/01/2014............................... 43
PRINCIPAL MARKET AMOUNT VALUE (W) --------- --------- FINANCE -- (CONTINUED) $ 10 Prudential Financial, Inc., 5.90%, 03/17/2036............................... $ 10 30 Regency Centers L.P., 5.25%, 08/01/2015............................... 29 30 Simon Property Group L.P., 5.10%, 06/15/2015............................... 29 25 Simon Property Group L.P., 5.38%, 06/01/2011............................... 25 10 St. Paul Travelers Cos., Inc., 5.75%, 03/15/2007............................... 10 20 Symetra Financial Corp., 6.13%, 04/01/2016 (I)........................... 20 10 Travelers Property Casualty Corp., 6.38%, 03/15/2033............................... 11 20 United Dominion Realty Trust, Inc., 6.05%, 06/01/2013............................... 20 25 UnitedHealth Group, Inc., 5.38%, 03/15/2016............................... 25 35 Wachovia Corp., 4.88%, 02/15/2014............................... 34 20 Western Union Co., 5.93%, 10/01/2016 (I)........................... 20 30 Westfield Group, 5.40%, 10/01/2012 (I)........................... 30 25 WR Berkley Corp., 5.88%, 02/15/2013............................... 26 25 XL Capital Europe plc, 6.50%, 01/15/2012............................... 27 ------- 1,870 ------- FOREIGN GOVERNMENTS -- 1.2% 90 Russian Federation Government, 5.00%, 03/31/2030 (K)........................... 101 10 South Africa (Republic of), 7.38%, 04/25/2012............................... 11 35 United Mexican States, 8.13%, 12/30/2019............................... 43 ------- 155 ------- HEALTH CARE -- 0.4% 30 AmerisourceBergenCorp., 5.88%, 09/15/2015............................... 29 20 Schering-Plough Corp., 6.75%, 12/01/2033............................... 22 ------- 51 ------- SERVICES -- 3.4% 45 CBS Corp., 7.70%, 07/30/2010............................... 48 30 Clear Channel Communication, Inc., 7.65%, 09/15/2010............................... 31 35 Comcast Corp., 7.05%, 03/15/2033............................... 38 50 COX Communications, Inc., 7.13%, 10/01/2012............................... 53 20 Electronic Data Systems Corp., 7.45%, 10/15/2029............................... 22
The accompanying notes are an integral part of these financial statements. 114 --------------------------------------------------------------------------------
PRINCIPAL MARKET AMOUNT VALUE (W) --------- --------- CORPORATE BONDS: INVESTMENT GRADE -- (CONTINUED) SERVICES -- (CONTINUED) $ 10 Harrah's Operating Co., Inc., 5.50%, 07/01/2010............................... $ 10 25 Harrah's Operating Co., Inc., 5.63%, 06/01/2015............................... 21 25 Marriott International, Inc., 4.63%, 06/15/2012............................... 24 30 News America, Inc., 6.20%, 12/15/2034............................... 29 10 News America, Inc., 6.40%, 12/15/2035............................... 10 10 News America, Inc., 7.28%, 06/30/2028............................... 11 25 Omnicom Group, Inc., 5.90%, 04/15/2016............................... 25 30 Time Warner Entertainment Co. L.P., 8.38%, 03/15/2023............................... 35 25 Time Warner, Inc., 6.15%, 05/01/2007............................... 25 10 Time Warner, Inc., 6.75%, 04/15/2011............................... 10 25 Viacom, Inc., 6.25%, 04/30/2016............................... 26 ------- 418 ------- TECHNOLOGY -- 6.1% 10 AT&T, Inc., 5.10%, 09/15/2014............................... 10 85 AT&T, Inc., 5.30%, 11/15/2010............................... 85 10 Baltimore Gas and Electric, 6.35%, 10/01/2036 (I)........................... 10 30 Bellsouth Corp., 5.20%, 09/15/2014............................... 29 35 British Telecommunications plc, 8.38%, 12/15/2010............................... 39 10 British Telecommunications plc, 8.88%, 12/15/2030............................... 14 40 Cingular Wireless Services, Inc., 8.75%, 03/01/2031............................... 52 45 Comcast Cable Communications Holdings, Inc., 8.38%, 03/15/2013............................... 51 15 Comcast Cable Communications, Inc., 6.75%, 01/30/2011............................... 16 25 Deutsche Telekom International Finance B.V., 8.00%, 06/15/2010 (L)........................... 27 35 Deutsche Telekom International Finance B.V., 8.25%, 06/15/2030............................... 43 20 Embarq Corp., 7.08%, 06/01/2016............................... 20 35 France Telecom S.A., 8.50%, 03/01/2031............................... 47 30 Sprint Capital Corp., 6.13%, 11/15/2008............................... 30 10 Sprint Capital Corp., 8.38%, 03/15/2012............................... 11
PRINCIPAL MARKET AMOUNT VALUE (W) --------- --------- TECHNOLOGY -- (CONTINUED) $ 30 Sprint Capital Corp., 8.75%, 03/15/2032............................... $ 37 10 Telecom Italia Capital, 5.25%, 10/01/2015............................... 9 55 Telecom Italia Capital, 6.20%, 07/18/2011............................... 56 55 Telefonica Europe B.V., 8.25%, 09/15/2030............................... 67 45 Verizon Global Funding Corp., 7.25%, 12/01/2010............................... 48 45 Verizon Global Funding Corp., 7.75%, 12/01/2030............................... 53 ------- 754 ------- TRANSPORTATION -- 0.3% 37 American Airlines, Inc., 3.86%, 07/09/2010............................... 35 ------- UTILITIES -- 3.2% 30 American Electric Power Co., Inc., 5.38%, 03/15/2010............................... 30 15 Commonwealth Edison Co., 5.95%, 08/15/2016............................... 15 45 Dominion Resources, Inc., 6.25%, 06/30/2012............................... 47 10 Duke Capital, LLC, 6.25%, 02/15/2013............................... 10 35 Duke Capital, LLC, 7.50%, 10/01/2009............................... 37 10 Exelon Generation Co. LLC, 6.95%, 06/15/2011............................... 11 30 Kinder Morgan Energy Partners L.P., 6.75%, 03/15/2011............................... 31 10 Kinder Morgan Energy Partners L.P., 7.30%, 08/15/2033............................... 11 45 Midamerican Energy Holdings Co., 6.13%, 04/01/2036............................... 46 30 Nisource Finance Corp., 7.88%, 11/15/2010............................... 32 40 Progress Energy Inc., 6.85%, 04/15/2012............................... 43 35 PSEG Power LLC, 3.75%, 04/01/2009............................... 34 10 PSEG Power LLC, 8.63%, 04/15/2031............................... 13 10 Southwestern Public Service, 6.00%, 10/01/2036............................... 10 20 TXU Energy Co., 7.00%, 03/15/2013............................... 21 ------- 391 ------- Total corporate bonds: investment grade (cost $4,384)................................... $ 4,484 -------
The accompanying notes are an integral part of these financial statements. 115 THE HARTFORD BALANCED INCOME FUND SCHEDULE OF INVESTMENTS -- (CONTINUED) OCTOBER 31, 2006 (000'S OMITTED) --------------------------------------------------------------------------------
PRINCIPAL MARKET AMOUNT VALUE (W) --------- --------- CORPORATE BONDS: NON-INVESTMENT GRADE -- 9.7% BASIC MATERIALS -- 0.7% $ 25 FastenTech, Inc., 11.50%, 05/01/2011.............................. $ 26 20 Huntsman LLC, 11.63%, 10/15/2010.............................. 22 20 Novelis, Inc., 8.25%, 02/15/2015 (I)........................... 19 20 Texas Industries, Inc., 7.25%, 07/15/2013............................... 20 ------- 87 ------- CONSUMER CYCLICAL -- 0.5% 20 IKON Office Solutions, Inc., 7.75%, 09/15/2015............................... 21 15 Insurance Auto Auctions, Inc., 11.00%, 04/01/2013.............................. 15 20 TRW Automotive, Inc., 11.00%, 02/15/2013.............................. 22 ------- 58 ------- CONSUMER STAPLES -- 0.1% 15 Reynolds American, Inc., 7.25%, 06/01/2013 (I)........................... 16 ------- ENERGY -- 0.6% 25 Chesapeake Energy Corp., 6.50%, 08/15/2017............................... 24 10 Delta Petroleum Corp., 7.00%, 04/01/2015............................... 9 10 Petrohawk Energy Corp., 9.13%, 07/15/2013 (I)........................... 10 25 Williams Cos., Inc., 8.13%, 03/15/2012............................... 27 ------- 70 ------- FINANCE -- 0.9% 10 Ford Motor Credit Co., 8.63%, 11/01/2010............................... 10 15 Ford Motor Credit Co., 9.82%, 04/15/2012 (L)........................... 16 25 General Motors Acceptance Corp., 6.88%, 08/28/2012............................... 25 10 General Motors Acceptance Corp., 7.25%, 03/02/2011............................... 10 15 Host Marriott L.P., 6.38%, 03/15/2015............................... 15 20 Neff Rental LLC, 11.25%, 06/15/2012 (I).......................... 22 10 United Rentals North America, Inc., 7.00%, 02/15/2014............................... 10 ------- 108 ------- FOREIGN GOVERNMENTS -- 3.8% 10 Argentina (Republic of), 1.20%, 12/31/2038 (L)........................... 6 38 Argentina (Republic of), 5.59%, 08/03/2012 (L)........................... 35
PRINCIPAL MARKET AMOUNT VALUE (W) --------- --------- FOREIGN GOVERNMENTS -- (CONTINUED) $ 11 Argentina (Republic of), 8.28%, 12/31/2033............................... $ 11 25 Argentina (Republic of), 11.96%, 02/20/2008 (L).......................... 8 60 Brazil (Republic of), 7.88%, 03/07/2015............................... 66 15 Brazil (Republic of), 8.25%, 01/20/2034............................... 18 55 Brazil (Republic of), 8.88%, 10/14/2019............................... 66 30 Colombia (Republic of), 8.25%, 12/22/2014............................... 34 5 Costa Rica (Republic of), 10.00%, 08/01/2020 (K).......................... 6 5 Costa Rica (Republic of), 8.05%, 01/31/2013 (K)........................... 5 10 Ecuador (Republic of), 10.00%, 08/15/2030 (K).......................... 10 5 Panama (Republic of), 7.25%, 03/15/2015............................... 5 10 Panama (Republic of), 9.38%, 07/23/2012............................... 12 15 Peru (Republic of), 8.75%, 11/21/2033............................... 19 45 Philippines (Republic of), 9.38%, 01/18/2017............................... 54 5 Turkey (Republic of), 6.88%, 03/17/2036............................... 5 60 Turkey (Republic of), 7.25%, 03/15/2015............................... 62 5 Turkey (Republic of), 8.00%, 02/14/2034............................... 5 81 Uruguay Government International Bond, 5.00%, 09/14/2018............................... 4 45 Venezuela (Republic of), 5.75%, 02/26/2016............................... 41 ------- 472 ------- HEALTH CARE -- 0.4% 30 CDRV Investors, Inc., 11.53%, 01/01/2015 (M).......................... 23 20 Elan Financial plc, 9.41%, 11/15/2011 (L)........................... 20 10 Tenet Healthcare Corp., 9.88%, 07/01/2014............................... 10 ------- 53 ------- SERVICES -- 1.0% 20 AMC Entertainment, Inc., 8.00%, 03/01/2014............................... 19 10 Liberty Media Corp., 7.88%, 07/15/2009............................... 10 20 R.H. Donnelley Corp., 8.88%, 01/15/2016............................... 21 5 Service Corp. International, 7.38%, 10/01/2014 (I)........................... 5
The accompanying notes are an integral part of these financial statements. 116 --------------------------------------------------------------------------------
PRINCIPAL MARKET AMOUNT VALUE (W) --------- --------- CORPORATE BONDS: NON-INVESTMENT GRADE -- (CONTINUED) SERVICES -- (CONTINUED) $ 10 Service Corp. International, 8.00%, 06/15/2017 (I)........................... $ 10 24 SunGard Data Systems, Inc., 9.13%, 08/15/2013............................... 25 20 Virgin River Casino Corp., 9.00%, 01/15/2012............................... 20 10 West Corp., 11.00%, 10/15/2016 (I).......................... 10 ------- 120 ------- TECHNOLOGY -- 1.2% 20 Charter Communications Operating LLC, 8.00%, 04/30/2012 (I)........................... 20 20 Dobson Cellular Systems, 8.38%, 11/01/2011............................... 21 20 Intelsat Subsidiary Holding Co. Ltd., 8.25%, 01/15/2013............................... 20 20 Mediacom Broadband LLC, 8.50%, 10/15/2015............................... 20 20 Qwest Corp., 7.63%, 06/15/2015............................... 21 20 UGS Corp., 10.00%, 06/01/2012.............................. 22 25 Windstream Corp., 8.13%, 08/01/2013 (I)........................... 27 ------- 151 ------- TRANSPORTATION -- 0.2% 29 Continental Airlines, Inc., 9.80%, 04/01/2021............................... 30 ------- UTILITIES -- 0.3% 10 Aquila, Inc., 14.88%, 07/01/2012.............................. 13 20 TXU Corp., 6.50%, 11/15/2024............................... 19 ------- 32 ------- Total corporate bonds: non-investment grade (cost $1,171)................................... $ 1,197 ------- U.S. GOVERNMENT SECURITIES -- 0.0% U.S. TREASURY SECURITIES -- 0.0% $ 5 6.00% 2026 (S).................................... $ 6 ------- Total U.S. government securities (cost $6)....................................... $ 6 ------- Total long-term investments (cost $11,412).................................. $11,848 ------- SHORT-TERM INVESTMENTS -- 5.7% REPURCHASE AGREEMENTS -- 5.7% $141 Bank of America Securities TriParty Joint Repurchase Agreement, 5.31%, 11/01/2006............................... $ 141
PRINCIPAL MARKET AMOUNT VALUE (W) --------- --------- REPURCHASE AGREEMENTS -- (CONTINUED) $ 83 Credit Suisse Securities TriParty Joint Repurchase Agreement, 5.32%, 11/01/2006............................... $ 83 3 Deutsche Bank Securities Joint Repurchase Agreement, 5.25%, 11/01/2006............................... 3 66 Deutsche Bank Securities TriParty Joint Repurchase Agreement, 5.30%, 11/01/2006............................... 66 140 Deutsche Bank Securities TriParty Joint Repurchase Agreement, 5.32%, 11/01/2006............................... 140 77 Morgan Stanley & Co., Inc. TriParty Joint Repurchase Agreement, 5.29%, 11/01/2006............................... 77 188 UBS Securities TriParty Joint Repurchase Agreement, 5.31%, 11/01/2006............................... 188 ------- Total short-term investments (cost $698)..................................... $ 698 ------- Total investments in securities (cost $12,110) (C).............................. $12,546 =======
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 13.04% of total net assets at October 31, 2006. (C)At October 31, 2006, the cost of securities for federal income tax purposes was $12,112 and the aggregate gross unrealized appreciation and depreciation based on that cost were: Unrealized appreciation............................ $451 Unrealized depreciation............................ (17) ---- Net unrealized appreciation........................ $434 ====
(I)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 qualified institutional buyers. 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, 2006, was $438, which represents 3.55% of total net assets. (K)Securities contain some restrictions as to public resale. These securities comply with Regulation S, rules governing offers and sales made outside the United States without registration under the Securities Act of 1933, and are determined to be liquid. At October 31, 2006, the market value of these securities amounted to $132 or 1.07% of net assets. (L)Variable rate securities; the rate reported is the coupon rate in effect at October 31, 2006. (M)The interest rate disclosed for these securities represents the effective yield on the date of acquisition. (W)See Note 2b of accompanying Notes to Financial Statements regarding valuation of securities. The accompanying notes are an integral part of these financial statements. 117 THE HARTFORD BALANCED INCOME FUND SCHEDULE OF INVESTMENTS -- (CONTINUED) OCTOBER 31, 2006 (000'S OMITTED) -------------------------------------------------------------------------------- (S)Security pledged as initial margin deposit for open futures contracts at October 31, 2006. FUTURES CONTRACTS OUTSTANDING AT OCTOBER 31, 2006
UNREALIZED NUMBER OF APPRECIATION DESCRIPTION CONTRACTS POSITION EXPIRATION (DEPRECIATION) ----------- --------- -------- ---------- -------------- CBT 5 Year U.S. Treasury Note futures contracts 3 Long December 2006 $ 1 CBT 10 Year U.S. Treasury Note futures contract 1 Short December 2006 (1) --- $-- ===
These contracts had a market value of $425 as of October 31, 2006. FORWARD FOREIGN CURRENCY CONTRACTS OUTSTANDING AT OCTOBER 31, 2006
UNREALIZED MARKET CONTRACT DELIVERY APPRECIATION DESCRIPTION TRANSACTION VALUE AMOUNT DATE (DEPRECIATION) ----------- ----------- ------ -------- ---------- -------------- Brazilian Real Buy $ 7 $ 7 12/20/2006 $ -- Euro Sell 5 5 12/20/2006 -- Peruvian New Sol Buy 14 14 12/20/2006 -- ----- $ -- =====
The accompanying notes are an integral part of these financial statements. 118 THE HARTFORD CAPITAL APPRECIATION FUND SCHEDULE OF INVESTMENTS OCTOBER 31, 2006 (000'S OMITTED) --------------------------------------------------------------------------------
MARKET SHARES VALUE (W) ---------- ----------- COMMON STOCK -- 92.9% BASIC MATERIALS -- 10.9% 1,809 Aracruz Celulose S.A. ADR (G)..................... $ 99,543 1,502 Arch Coal, Inc. (G)............................... 52,014 2,551 BHP Billiton Ltd. ADR (G)......................... 108,596 4,202 Cameco Corp. (G).................................. 147,602 6,070 Companhia Vale do Rio Doce ADR (G)................ 154,429 5,216 Dow Chemical Co. ................................. 212,745 2,150 Peabody Energy Corp. ............................. 90,240 780 Phelps Dodge Corp. ............................... 78,337 583 Potash Corp. of Saskatchewan...................... 72,779 2,629 Rio Tinto plc (A)................................. 145,446 1,695 Teck Cominco Ltd. Class B (D)..................... 124,734 4,677 Vedanta Resources plc (A)......................... 129,643 4,160 Xstrata plc (A)................................... 177,113 ----------- 1,593,221 ----------- CAPITAL GOODS -- 7.5% 2,205 3M Co. ........................................... 173,811 10,662 ABB Ltd. ADR...................................... 159,069 1,800 Boeing Co. ....................................... 143,748 1,500 Caterpillar, Inc. ................................ 91,065 857 Deere & Co. (G)................................... 72,931 2,704 Ingersoll-Rand Co. Class A (G).................... 99,275 1,681 ITT Corp. ........................................ 91,402 1,561 Joy Global, Inc. ................................. 61,031 852 National Oilwell Varco, Inc. (D).................. 51,437 8,483 Xerox Corp. (D)................................... 144,209 ----------- 1,087,978 ----------- CONSUMER CYCLICAL -- 6.6% 2,261 eBay, Inc. (D).................................... 72,646 5,441 Federated Department Stores, Inc. ................ 238,931 7,340 Gap, Inc. ........................................ 154,287 2,304 Lotte Shopping Co. GDR (D)........................ 43,202 5,458 Toyota Motor Corp. (A)............................ 322,282 2,811 Wal-Mart Stores, Inc. ............................ 138,521 ----------- 969,869 ----------- CONSUMER STAPLES -- 3.1% 3,050 Bunge Ltd. (G).................................... 195,535 3,217 Constellation Brands, Inc. Class A (D)............ 88,444 1,270 Cosan S.A. Industria E Comercio (D)............... 21,644 2,250 Procter & Gamble Co. ............................. 142,634 ----------- 448,257 ----------- ENERGY -- 5.7% 7,143 Halliburton Co. (G)............................... 231,070 1,800 Occidental Petroleum Corp. ....................... 84,492 3,284 Sasol Ltd. ADR.................................... 112,335 900 Valero Energy Corp. .............................. 47,097 4,556 Weatherford International Ltd. (D)................ 187,169 3,500 XTO Energy, Inc. ................................. 163,310 ----------- 825,473 ----------- FINANCE -- 14.6% 4,785 ACE Ltd. ......................................... 273,940 943 Aflac, Inc. ...................................... 42,351
MARKET SHARES VALUE (W) ---------- ----------- FINANCE -- (CONTINUED) 17,756 Akbank T.A.S. (A)................................. $ 100,049 1,300 American International Group, Inc. ............... 87,321 1,844 Assurant, Inc. (G)................................ 97,121 201 Augsburg Re AG (A)(H)............................. 33 1,559 Capital One Financial Corp. (G)................... 123,691 3,130 Citigroup, Inc. (G)............................... 157,011 750 Countrywide Financial Corp. ...................... 28,590 2,496 European Capital Ltd. (A)(D)(H)(Y)PFIC............ 30,540 792 Federal Home Loan Mortgage Corp. ................. 54,605 9,014 ICICI Bank Ltd. (D) (I)........................... 155,133 75,000 Industrial and Commercial Bank of China........... 33,560 1,000 Muenchener Rueckversicherungs-Gesellschaft AG (A)............................................. 162,630 269 ORIX Corp. (A)PFIC................................ 75,596 6,426 Reliance Zero (A)(D)(I)........................... 175,304 1,121 UBS AG (G)........................................ 67,093 3,234 Uniao de Bancos Brasileiros S.A. GDR (G).......... 254,693 2,677 WellPoint, Inc. (D)............................... 204,293 ----------- 2,123,554 ----------- HEALTH CARE -- 5.1% 1,878 AstraZeneca plc ADR............................... 110,233 2,500 Boston Scientific Corp. (D)(G).................... 39,775 3,307 Eli Lilly & Co. .................................. 185,236 848 Sanofi-Aventis S.A. (A)........................... 72,174 4,643 Teva Pharmaceutical Industries Ltd. ADR (G)....... 153,080 3,466 Wyeth (G)......................................... 176,844 ----------- 737,342 ----------- SERVICES -- 6.2% 736 Fluor Corp. ...................................... 57,685 25 Harvey Weinstein Master L.P. (A)(D)(H)............ 30,541 7,085 News Corp. Class A................................ 147,718 2,127 Starwood Hotels & Resorts......................... 127,091 13,000 Sun Microsystems, Inc. (D)........................ 70,590 891 United Parcel Service, Inc. Class B (G)........... 67,152 2,859 Viacom, Inc. Class B (D).......................... 111,276 9,345 Walt Disney Co. .................................. 294,007 ----------- 906,060 ----------- TECHNOLOGY -- 29.3% 4,038 Adobe Systems, Inc. (D)(G)........................ 154,465 2,031 Amdocs Ltd. (D)................................... 78,725 1,800 America Movil S.A. de C.V. ADR.................... 77,166 6,044 AT&T, Inc. (G).................................... 206,993 4,703 Broadcom Corp. Class A (D)........................ 142,354 14,949 China Mobile Ltd. (A)............................. 121,441 10,184 Cisco Systems, Inc. (D)........................... 245,745 11,735 Citigroup Global Certificate -- Bharti Televentures (A)(D)(I).......................... 138,117 1,661 Cognex Corp. (G).................................. 38,246 4,527 Corning, Inc. (D)................................. 92,478 22,332 EMC Corp. (D)..................................... 273,571 9,942 General Electric Co. ............................. 349,050 524 Google, Inc. (D)(G)............................... 249,676 4,699 Hewlett-Packard Co. .............................. 182,020
The accompanying notes are an integral part of these financial statements. 119 THE HARTFORD CAPITAL APPRECIATION FUND SCHEDULE OF INVESTMENTS -- (CONTINUED) OCTOBER 31, 2006 (000'S OMITTED) --------------------------------------------------------------------------------
MARKET SHARES VALUE (W) ---------- ----------- COMMON STOCK -- (CONTINUED) TECHNOLOGY -- (CONTINUED) 11,608 Hon Hai Precision Industry Co., Ltd. (A).......... $ 75,081 1,040 International Business Machines Corp. ............ 95,986 1,217 L-3 Communications Holdings, Inc. ................ 97,969 3,331 Lockheed Martin Corp. ............................ 289,573 7,546 Medtronic, Inc. (G)............................... 367,359 900 Mobile Telesystems OJSC ADR (G)................... 39,672 10,462 Motorola, Inc. ................................... 241,256 8,813 Oracle Corp. (D)(G)............................... 162,769 900 Qualcomm, Inc. (G)................................ 32,751 106 Rakuten, Inc. (A)................................. 47,111 2,135 Raytheon Co. ..................................... 106,618 456 Samsung Electronics Co., Ltd. (A)................. 295,084 4,392 Turkcell Iletisim Hizmet ADR...................... 63,422 ----------- 4,264,698 ----------- TRANSPORTATION -- 1.9% 1,400 ACE Aviation Holdings, Inc. (D)................... 48,611 67,533 Air China Ltd. (A)................................ 33,831 2,800 Royal Caribbean Cruises Ltd. (G).................. 113,400 3,215 Ryanair Holdings plc (A)(D)(I).................... 36,311 990 US Airways Group, Inc. (D)(J)..................... 49,340 ----------- 281,493 ----------- UTILITIES -- 2.0% 2,865 American Electric Power Co., Inc. ................ 118,693 700 Exelon Corp. ..................................... 43,386 2,155 TXU Corp. ........................................ 136,033 ----------- 298,112 ----------- Total common stock (cost $11,456,905).............................. $13,536,057 ----------- PREFERRED STOCKS -- 0.0% TECHNOLOGY -- 0.0% 8 SensAble Technologies, Inc. (A)(H)................ $ -- ----------- Total preferred stocks (cost $4,000)................................... $ -- ----------- PRINCIPAL AMOUNT ---------- CORPORATE BONDS: INVESTMENT GRADE -- 0.2% FINANCE -- 0.2% $ 397 Augsburg Re AG, 0.00%, 12/31/2049 (A)(H)(X)..................... $ 379 23,500 UBS Luxembourg S.A., 6.23%, 02/11/2015............................... 23,748 ----------- Total corporate bonds: investment grade (cost $24,699).................................. $ 24,127 ----------- Total long-term investments (cost $11,485,604).............................. $13,560,184 -----------
PRINCIPAL MARKET AMOUNT VALUE (W) ---------- ----------- SHORT-TERM INVESTMENTS -- 15.9% FINANCE -- 6.3% $ 186,233 Bank of America Securities TriParty Joint Repurchase Agreement, 5.31%, 11/01/2006............................... $ 186,233 109,549 Credit Suisse Securities TriParty Joint Repurchase Agreement, 5.32%, 11/01/2006............................... 109,549 4,369 Deutsche Bank Securities Joint Repurchase Agreement, 5.25%, 11/01/2006............................... 4,369 87,639 Deutsche Bank Securities TriParty Joint Repurchase Agreement, 5.30%, 11/01/2006............................... 87,639 184,042 Deutsche Bank Securities TriParty Joint Repurchase Agreement, 5.32%, 11/01/2006............................... 184,042 100,785 Morgan Stanley & Co., Inc. TriParty Joint Repurchase Agreement, 5.29%, 11/01/2006............................... 100,785 247,580 UBS Securities TriParty Joint Repurchase Agreement, 5.31%, 11/01/2006............................... 247,580 ----------- 920,197 ----------- SHARES ---------- SECURITIES PURCHASED WITH PROCEEDS FROM SECURITY LENDING -- 9.6% 1,360,330 BNY Institutional Cash Reserve Fund............... 1,360,330 103 Evergreen Institutional Money Market Fund......... 103 37,661 Lehman Brothers Repurchase Agreement, 5.24%, 11/01/2006............................... 37,661 ----------- 1,398,094 ----------- Total short-term investments (cost $2,318,291)............................... $ 2,318,291 ----------- Total investments in securities (cost $13,803,895) (C).......................... $15,878,475 ===========
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 29.66% of total net assets at October 31, 2006. (A)The aggregate value of securities valued in good faith at fair value by, or under the direction of, the Funds' Board of Directors at October 31, 2006, was $2,168,706, which represents 14.89% of total net assets. (C)At October 31, 2006, the cost of securities for federal income tax purposes was $13,820,622 and the aggregate gross unrealized appreciation and depreciation based on that cost were: Unrealized appreciation....................... $2,225,011 Unrealized depreciation....................... (167,158) ---------- Net unrealized appreciation................... $2,057,853 ==========
The accompanying notes are an integral part of these financial statements. 120 -------------------------------------------------------------------------------- (D) Currently non-income producing. (G) Security is partially on loan at October 31, 2006. (H) The following securities are considered illiquid. Illiquid securities are often purchased in private placement transactions, are not registered under the Securities Act of 1933 and may have contractual restrictions on resale. A security may also be considered illiquid if the security lacks a readily available market or if its valuation has not changed for a certain period of time.
PERIOD ACQUIRED SHARES/PAR SECURITY COST BASIS --------------- ---------- -------- ---------- June, 2006 201 Augsburg Re AG - 144A $ 64 June, 2006 397 Augsburg Re AG - 144A, 739 0.00%, 12/31/2049 October, 2005 - 2,496 European Capital Ltd. - 30,778 September, 2006 Reg D October, 2005 25 Harvey Weinstein Master 23,636 L.P. - Reg D April, 2000 8 SensAble Technologies, 4,000 Inc. - Reg D
The aggregate value of these securities at October 31, 2006 was $61,493 which represents 0.42% of total net assets. (I) 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 qualified institutional buyers. 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, 2006, was $504,865, which represents 3.47% of total net assets. (J) Securities exempt from registration under Regulation D of the Securities Act of 1933. These securities are determined to be liquid. At October 31, 2006, the market value of these securities was $49,340, which represents 0.34% of total net assets. (L) Variable rate securities; the rate reported is the coupon rate in effect at October 31, 2006. + Convertible debt security. (Y) As of October 31, 2006, the Fund has future commitments to purchase an additional 1,104 shares in the amount of 11,039 EURO. (W) See Note 2b of accompanying Notes to Financial Statements regarding valuation of securities. FORWARD FOREIGN CURRENCY CONTRACTS OUTSTANDING AT OCTOBER 31, 2006
UNREALIZED MARKET CONTRACT DELIVERY APPRECIATION DESCRIPTION TRANSACTION VALUE AMOUNT DATE (DEPRECIATION) ----------- ----------- ------ -------- -------- -------------- Hong Kong Dollars Sell $3,251 $3,250 11/02/2006 $(1) ===
DIVERSIFICATION BY COUNTRY October 31, 2006
PERCENTAGE OF COUNTRY NET ASSETS --------------------------------------------------------------- Australia 0.7% --------------------------------------------------------------- Brazil 3.6 --------------------------------------------------------------- Canada 2.7 --------------------------------------------------------------- China 0.5 --------------------------------------------------------------- France 0.5 --------------------------------------------------------------- Germany 1.3 --------------------------------------------------------------- Hong Kong 0.8 --------------------------------------------------------------- India 2.3 --------------------------------------------------------------- Ireland 0.2 --------------------------------------------------------------- Israel 1.1 --------------------------------------------------------------- Japan 3.1 --------------------------------------------------------------- Liberia 0.8 --------------------------------------------------------------- Luxembourg 1.1 ---------------------------------------------------------------
---------------------------------------------------------------
PERCENTAGE OF COUNTRY NET ASSETS Mexico 0.5 --------------------------------------------------------------- Russia 0.3 --------------------------------------------------------------- South Africa 0.8 --------------------------------------------------------------- South Korea 2.3 --------------------------------------------------------------- Switzerland 1.6 --------------------------------------------------------------- Taiwan 0.5 --------------------------------------------------------------- Turkey 1.1 --------------------------------------------------------------- United Kingdom 3.9 --------------------------------------------------------------- United States 63.4 --------------------------------------------------------------- Short-Term Investments 15.9 --------------------------------------------------------------- Other Assets & Liabilities (9.0) --------------------------------------------------------------- TOTAL 100.0% ---------------------------------------------------------------
PFIC -- Passive Foreign Investment Company The accompanying notes are an integral part of these financial statements. 121 THE HARTFORD CAPITAL APPRECIATION II FUND SCHEDULE OF INVESTMENTS OCTOBER 31, 2006 (000'S OMITTED) --------------------------------------------------------------------------------
MARKET SHARES VALUE (W) --------- --------- COMMON STOCK -- 93.5% BASIC MATERIALS -- 11.0% 112 Alcoa, Inc. ...................................... $ 3,247 7 Allegheny Technologies, Inc. ..................... 559 10 Aracruz Celulose S.A. ADR......................... 568 39 Arch Coal, Inc. .................................. 1,367 16 BHP Billiton Ltd. ADR............................. 685 119 Cameco Corp. ..................................... 4,177 14 Celanese Corp. ................................... 282 15 Century Aluminum Co. (D).......................... 592 75 Chemtura Corp. ................................... 642 14 Cleveland-Cliffs, Inc. ........................... 593 142 Companhia Vale do Rio Doce ADR.................... 3,608 16 Cytec Industries, Inc. ........................... 870 35 Dow Chemical Co. ................................. 1,435 14 E.I. DuPont de Nemours & Co. ..................... 641 36 Energy Resources Of Australia Limited (A)......... 499 4 FMC Corp. (D)..................................... 281 26 Goldcorp, Inc. ................................... 691 43 Ivanhoe Mines Ltd. (D)............................ 443 83 Jarden Corp. (D).................................. 2,995 12 Martin Marietta Materials, Inc. .................. 1,056 11 Michelin (C.G.D.E.) Class B (A)................... 935 15 Owens-Illinois, Inc. (D).......................... 254 146 Oxiana Ltd. (A)................................... 379 14 Peabody Energy Corp. ............................. 577 6 Phelps Dodge Corp. ............................... 647 4 Potash Corp. of Saskatchewan...................... 437 13 Rio Tinto plc (A)................................. 724 19 Silver Standard Resources, Inc. (D)............... 472 53 Smurfit-Stone Container Corp. (D)................. 565 12 Teck Cominco Ltd. Class B (D)..................... 854 18 Temple-Inland, Inc. .............................. 710 14 Titanium Metals Corp. (D)......................... 398 34 Tmk Oao GDR (I)................................... 864 6 United States Steel Corp. ........................ 433 302 Urasia Energy Ltd. (D)............................ 820 34 Vedanta Resources plc (A)......................... 943 71 Xstrata plc (A)................................... 3,007 209 Zinifex Ltd. (A).................................. 2,478 -------- 40,728 -------- CAPITAL GOODS -- 5.2% 8 3M Co. ........................................... 654 33 Alliant Techsystems, Inc. (D)..................... 2,571 50 Boeing Co. ....................................... 4,017 7 Bucyrus International, Inc. ...................... 296 4 Caterpillar, Inc. ................................ 252 21 CNH Global N.V. .................................. 560 19 Deere & Co. ...................................... 1,614 63 Goodrich Corp. ................................... 2,786 30 Honeywell International, Inc. .................... 1,263 9 ITT Corp. ........................................ 473 13 Joy Global, Inc. ................................. 492 11 Kennametal, Inc. ................................. 679 20 Lam Research Corp. (D)............................ 999 66 Mitsubishi Heavy Industries Ltd. (A).............. 294
MARKET SHARES VALUE (W) --------- --------- CAPITAL GOODS -- (CONTINUED) 6 National Oilwell Varco, Inc. (D).................. $ 389 15 Varian Semiconductor Equipment Associates, Inc. (D)............................................. 555 92 Xerox Corp. (D)................................... 1,556 -------- 19,450 -------- CONSUMER CYCLICAL -- 8.2% 17 Altria Group, Inc. ............................... 1,346 56 American Axle & Manufacturing Holdings, Inc. ..... 1,057 98 eBay, Inc. (D).................................... 3,162 93 Empresas ICA S.A. (D)............................. 317 128 Esprit Holdings Ltd. (A).......................... 1,238 33 Federated Department Stores, Inc. ................ 1,452 113 Foot Locker, Inc. ................................ 2,616 11 Foster Wheeler Ltd. (D)........................... 503 32 Gap, Inc. ........................................ 675 51 Kohl's Corp. (D).................................. 3,622 27 Lear Corp. ....................................... 825 13 Lotte Shopping Co. GDR (D)........................ 243 11 LVMH Moet Hennessy Louis Vuitton S.A. (A)......... 1,125 72 Ruby Tuesday, Inc. ............................... 2,006 54 Safeway, Inc. .................................... 1,580 30 Seven & I Holdings Co., Ltd. (A).................. 950 187 Tesco plc (A)..................................... 1,404 59 Tiffany & Co. .................................... 2,111 22 Tod's S.p.A. (A).................................. 1,944 15 Toyota Motor Corp. (A)............................ 874 35 TRW Automotive Holdings Corp. (D)................. 903 10 Walter Industries................................. 456 -------- 30,409 -------- CONSUMER STAPLES -- 2.4% 2 Alberto-Culver Co. ............................... 94 12 Avon Products, Inc. .............................. 371 2 Coca-Cola Co. .................................... 94 39 Imperial Tobacco Group plc (A).................... 1,373 8 Nestle S.A. (A)................................... 2,585 91 Origin Agritech Ltd. (D).......................... 996 1 PepsiCo, Inc. .................................... 93 31 Royal Numico N.V. (A)............................. 1,402 74 Unilever N.V. NY Shares........................... 1,798 -------- 8,806 -------- ENERGY -- 5.1% 4 EnCana Corp. #.................................... 181 18 EnCana Corp. #.................................... 841 27 Exxon Mobil Corp. ................................ 1,907 13 GlobalSantaFe Corp. .............................. 655 78 Halliburton Co. .................................. 2,520 11 Lukoil ADR........................................ 885 8 Marathon Oil Corp. ............................... 708 16 Noble Corp. ...................................... 1,092 22 Noble Energy, Inc. ............................... 1,089 13 Occidental Petroleum Corp. ....................... 622 44 Sasol Ltd. ADR.................................... 1,514 82 Talisman Energy, Inc. #........................... 1,346
The accompanying notes are an integral part of these financial statements. 122 --------------------------------------------------------------------------------
MARKET SHARES VALUE (W) --------- --------- COMMON STOCK -- (CONTINUED) ENERGY -- (CONTINUED) 38 Talisman Energy, Inc. #........................... $ 626 37 Total S.A. ADR.................................... 2,497 44 UGI Corp. ........................................ 1,166 5 Valero Energy Corp. .............................. 286 13 Weatherford International Ltd. (D)................ 522 8 XTO Energy, Inc. ................................. 396 -------- 18,853 -------- FINANCE -- 17.7% 80 ACE Ltd. ......................................... 4,563 26 Aetna, Inc. ...................................... 1,072 15 Affiliated Managers Group, Inc. (D)............... 1,492 19 Allstate Corp. ................................... 1,178 12 AMBAC Financial Group, Inc. ...................... 960 20 American International Group, Inc. ............... 1,323 117 Apollo Investment Corp. .......................... 2,518 1 Axis Capital Holdings Ltd. ....................... 43 172 Banca Intesa S.p.A. (A)........................... 1,173 68 Banco Bilbao Vizcaya Argentaria S.A. (A).......... 1,652 99 Bank of America Corp. ............................ 5,327 51 Capital One Financial Corp. ...................... 4,030 19 Chardan North China Acquisition Corp. (D)......... 163 13 CIT Group, Inc. .................................. 661 87 Citigroup, Inc. .................................. 4,349 83 Dah Sing Financial................................ 728 7 Deutsche Boerse AG (A)............................ 1,083 171 E* Trade Financial Corp. (D)...................... 3,972 9 Erste Bank Der Oesterreichischen Sparkassen AG (A)............................................. 593 16 Everest Re Group Ltd. ............................ 1,579 3 Goldman Sachs Group, Inc. ........................ 600 11 Julius Baer Holding Ltd. (A)...................... 1,125 306 Kerry Properties Ltd. (A)......................... 1,127 49 KKR Financial Corp. .............................. 1,307 117 Nasdaq Stock Market, Inc. (D)..................... 4,194 75 Nuveen Investments, Inc. Class A.................. 3,712 3 ORIX Corp. (A) PFIC............................... 872 34 Platinum Underwriters Holdings Ltd. .............. 1,009 76 Royal Bank of Scotland Group plc (A).............. 2,708 68 Services Acquisition Corp. International (D)...... 705 111 Shizuoka Bank Ltd. (A)............................ 1,185 37 State Street Corp. ............................... 2,396 24 UBS AG #.......................................... 1,460 17 UBS AG (A)#....................................... 1,018 10 Uniao de Bancos Brasileiros S.A. GDR.............. 811 193 UniCredito Italiano S.p.A. (A).................... 1,601 49 UnumProvident Corp. .............................. 961 7 WellPoint, Inc. (D)............................... 504 -------- 65,754 -------- HEALTH CARE -- 8.8% 61 Alliance Boots plc (A)............................ 943 17 Amgen, Inc. (D)................................... 1,290 20 Amylin Pharmaceuticals, Inc. (D).................. 884 33 Astellas Pharma, Inc. (A)......................... 1,486
MARKET SHARES VALUE (W) --------- --------- HEALTH CARE -- (CONTINUED) 46 Boston Scientific Corp. (D)....................... $ 737 24 Bristol-Myers Squibb Co. ......................... 586 14 Cie Generale d'Optique Essilor International S.A. (D)(A).......................................... 1,458 25 Cooper Companies, Inc. ........................... 1,423 19 Eisai Co., Ltd. (A)............................... 946 35 Eli Lilly & Co. .................................. 1,983 53 HealthSouth Corp. (D)............................. 1,295 56 Impax Laboratories, Inc. (D)...................... 392 12 Invitrogen Corp. (D).............................. 679 14 Kos Pharmaceuticals, Inc. (D)..................... 677 11 McKesson Corp. ................................... 561 23 Sanofi-Aventis S.A. (A)........................... 1,948 66 Sanofi-Aventis S.A. ADR........................... 2,805 306 Schering-Plough Corp. ............................ 6,784 97 Shionogi & Co., Ltd. (A).......................... 1,935 19 Teva Pharmaceutical Industries Ltd. ADR........... 617 16 Vertex Pharmaceuticals, Inc. (D).................. 666 53 Wyeth............................................. 2,705 -------- 32,800 -------- SERVICES -- 6.6% 16 Avid Technology, Inc. (D)......................... 560 91 Comcast Corp. Class A (D)......................... 3,698 62 Comcast Corp. Special Class A (D)................. 2,497 32 Entercom Communications Corp. .................... 894 63 Equifax, Inc. .................................... 2,377 5 Fluor Corp. ...................................... 382 40 Focus Media Holding Ltd. ADR (D).................. 2,100 103 Genius Products, Inc. (D)......................... 243 12 Liberty Global, Inc. (D).......................... 315 20 Liberty Global, Inc. Class C (D).................. 501 94 Live Nation, Inc. (D)............................. 2,000 15 New York Times Co. Class A........................ 358 28 News Corp. Class A................................ 573 21 R.H. Donnelley Corp. ............................. 1,252 375 Thorium Power Ltd. ............................... 113 188 Thorium Power PIPE (A)(H)......................... 10 129 Unisys Corp. (D).................................. 845 35 Viacom, Inc. Class B (D).......................... 1,362 148 Walt Disney Co. .................................. 4,653 -------- 24,733 -------- TECHNOLOGY -- 22.8% 207 Activision, Inc. (D).............................. 3,193 117 Adobe Systems, Inc. (D)........................... 4,491 9 America Movil S.A. de C.V. ADR.................... 385 53 American Tower Corp. Class A (D).................. 1,905 8 Apple Computer, Inc. (D).......................... 616 41 Arrow Electronics, Inc. (D)....................... 1,218 19 AT&T, Inc. ....................................... 642 326 Charter Communications, Inc. Class A (D).......... 750 150 China Mobile Ltd. (A)............................. 1,220 118 Cinram International Income Fund.................. 2,321 155 Cisco Systems, Inc. (D)........................... 3,740 153 Corning, Inc. (D)................................. 3,122
The accompanying notes are an integral part of these financial statements. 123 THE HARTFORD CAPITAL APPRECIATION II FUND SCHEDULE OF INVESTMENTS -- (CONTINUED) OCTOBER 31, 2006 (000'S OMITTED) --------------------------------------------------------------------------------
MARKET SHARES VALUE (W) --------- --------- COMMON STOCK -- (CONTINUED) TECHNOLOGY -- (CONTINUED) 50 Deutsche Telekom AG (A)........................... $ 867 18 Electronic Arts, Inc. (D)......................... 973 4 Embarq Corp. ..................................... 200 157 EMC Corp. (D)..................................... 1,922 25 Fairchild Semiconductor International, Inc. (D)... 409 96 Flextronics International Ltd. (D)................ 1,118 109 Fossil, Inc. (D).................................. 2,387 118 General Electric Co. ............................. 4,143 3 Google, Inc. (D).................................. 1,620 87 Hewlett-Packard Co. .............................. 3,374 40 Koninklijke Philips Electronics N.V. (A).......... 1,376 16 Lockheed Martin Corp. ............................ 1,417 30 Maxim Integrated Products, Inc. .................. 894 126 Medtronic, Inc. .................................. 6,109 164 Microsoft Corp. .................................. 4,717 196 Motorola, Inc. ................................... 4,511 28 NCR Corp. (D)..................................... 1,179 124 Network Appliance, Inc. (D)....................... 4,530 161 Oracle Corp. (D).................................. 2,970 101 Powerwave Technologies, Inc. (D).................. 656 23 QLogic Corp. (D).................................. 474 33 Qualcomm, Inc. ................................... 1,208 3 Samsung Electronics Co., Ltd. (A)................. 2,145 25 Sony Corp. (A).................................... 1,030 65 Sprint Nextel Corp. .............................. 1,209 55 Symantec Corp. (D)................................ 1,095 23 Tektronix, Inc. .................................. 683 45 Telefonaktiebolaget LM Ericsson ADR............... 1,703 77 Turkcell Iletisim Hizmet ADR...................... 1,117 27 Tyco International Ltd. .......................... 798 114 VeriFone Holdings, Inc. (D)....................... 3,315 27 Verizon Communications, Inc. ..................... 1,003 -------- 84,755 -------- TRANSPORTATION -- 3.7% 6 ACE Aviation Holdings, Inc. (D)................... 212 347 All America Latina Logistica S.A. ................ 3,028 8 American Commercial Lines, Inc. (D)............... 532 13 Copa Holdings S.A. Class A........................ 504 76 GOL Linhas Aereas Inteligentes S.A. ADR........... 2,364 4 Grupo Aeroportuario del Pacifico S.A. de CV....... 140 13 Kirby Corp. (D)................................... 452 51 Knight Transportation, Inc. ...................... 932 8 Ryanair Holdings plc ADR (D)...................... 511 12 Trinity Industries, Inc. ......................... 429 92 UAL Corp. (D)..................................... 3,313 23 US Airways Group, Inc. (D)........................ 1,147 9 YRC Worldwide, Inc. (D)........................... 342 -------- 13,906 -------- UTILITIES -- 2.0% 22 Electricite de France (D)(A)...................... 1,316 12 PPL Corp. ........................................ 418
MARKET SHARES VALUE (W) --------- --------- UTILITIES -- (CONTINUED) 96 Suntech Power Holdings Co. Ltd. ADR (D)........... $ 2,499 49 TXU Corp. ........................................ 3,121 -------- 7,354 -------- Total common stock (cost $323,212)................................. $347,548 -------- PRINCIPAL AMOUNT --------- SHORT-TERM INVESTMENTS -- 4.9% REPURCHASE AGREEMENTS -- 4.9% $3,686 Bank of America Securities TriParty Joint Repurchase Agreement, 5.31%, 11/01/2006............................... $ 3,686 2,168 Credit Suisse Securities TriParty Joint Repurchase Agreement, 5.32%, 11/01/2006............................... 2,168 86 Deutsche Bank Securities Joint Repurchase Agreement, 5.25%, 11/01/2006............................... 86 1,734 Deutsche Bank Securities TriParty Joint Repurchase Agreement, 5.30%, 11/01/2006............................... 1,734 3,642 Deutsche Bank Securities TriParty Joint Repurchase Agreement, 5.32%, 11/01/2006............................... 3,642 1,995 Morgan Stanley & Co., Inc. TriParty Joint Repurchase Agreement, 5.29%, 11/01/2006............................... 1,995 4,900 UBS Securities TriParty Joint Repurchase Agreement, 5.31%, 11/01/2006............................... 4,900 -------- Total short-term investments (cost $18,211).................................. $ 18,211 -------- Total investments in securities (cost $341,423) (C)............................. $365,759 ========
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 26.65% of total net assets at October 31, 2006. (A)The aggregate value of securities valued in good faith at fair value by, or under the direction of, the Funds' Board of Directors at October 31, 2006, was $52,971, which represents 14.26% of total net assets. (C)At October 31, 2006, the cost of securities for federal income tax purposes was $343,260 and the aggregate gross unrealized appreciation and depreciation based on that cost were: Unrealized appreciation......................... $26,671 Unrealized depreciation......................... (4,172) ------- Net unrealized appreciation..................... $22,499 =======
(D)Currently non-income producing. The accompanying notes are an integral part of these financial statements. 124 -------------------------------------------------------------------------------- (H)The following securities are considered illiquid. Illiquid securities are often purchased in private placement transactions, are not registered under the Securities Act of 1933 and may have contractual restrictions on resale. A security may also be considered illiquid if the security lacks a readily available market or if its valuation has not changed for a certain period of time.
PERIOD COST ACQUIRED SHARES/PAR SECURITY BASIS -------- ---------- -------- ----- April, 2006 188 Thorium Power $16 Ltd. - (PIPE)
The aggregate value of these securities at October 31, 2006 was $10, the percentage of net assets rounds to zero. (I)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 qualified institutional buyers. 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, 2006, was $864, which represents 0.23% of total net assets. # Securities listed on more than one exchange. (W)See Note 2b of accompanying Notes to Financial Statements regarding valuation of securities. FORWARD FOREIGN CURRENCY CONTRACTS OUTSTANDING AT OCTOBER 31, 2006
UNREALIZED MARKET CONTRACT DELIVERY APPRECIATION DESCRIPTION TRANSACTION VALUE AMOUNT DATE (DEPRECIATION) ----------- ----------- ------ -------- -------- -------------- British Pound Buy $ 11 $ 11 11/01/2006 $-- Canadian Dollar Buy 10 10 11/01/2006 -- Canadian Dollar Buy 12 12 11/02/2006 -- Canadian Dollar Buy 16 16 11/03/2006 -- Euro Sell 180 180 11/01/2006 -- Euro Buy 24 24 11/02/2006 -- Hong Kong Dollars Buy 134 134 11/02/2006 -- Hong Kong Dollars Sell 297 297 11/02/2006 -- Japanese Yen Buy 5 5 11/01/2006 -- Japanese Yen Buy 126 124 11/01/2006 2 Japanese Yen Sell 225 224 11/02/2006 (1) Japanese Yen Buy 5 5 11/06/2006 -- Japanese Yen Sell 139 138 11/06/2006 (1) Swiss Francs Sell 181 180 11/02/2006 (1) Swiss Francs Sell 288 287 11/02/2006 (1) --- $(2) ===
DIVERSIFICATION BY COUNTRY October 31, 2006
PERCENTAGE OF COUNTRY NET ASSETS --------------------------------------------------------------- Australia 1.1% --------------------------------------------------------------- Austria 0.2 --------------------------------------------------------------- Brazil 2.8 --------------------------------------------------------------- Canada 3.6 --------------------------------------------------------------- China 1.2 --------------------------------------------------------------- France 3.3 --------------------------------------------------------------- Germany 0.5 --------------------------------------------------------------- Hong Kong 0.9 --------------------------------------------------------------- Ireland 0.1 --------------------------------------------------------------- Israel 0.2 --------------------------------------------------------------- Italy 1.3 --------------------------------------------------------------- Japan 2.6 --------------------------------------------------------------- Mexico 0.2 ---------------------------------------------------------------
---------------------------------------------------------------
PERCENTAGE OF COUNTRY NET ASSETS Netherlands 1.2 --------------------------------------------------------------- Panama 0.1 --------------------------------------------------------------- Russia 0.5 --------------------------------------------------------------- South Africa 0.4 --------------------------------------------------------------- South Korea 0.6 --------------------------------------------------------------- Spain 0.4 --------------------------------------------------------------- Sweden 0.5 --------------------------------------------------------------- Switzerland 1.7 --------------------------------------------------------------- Turkey 0.3 --------------------------------------------------------------- United Kingdom 3.0 --------------------------------------------------------------- United States 66.8 --------------------------------------------------------------- Short-Term Investments 4.9 --------------------------------------------------------------- Other Assets & Liabilities 1.6 --------------------------------------------------------------- TOTAL 100.0% ---------------------------------------------------------------
PFIC -- Passive Foreign Investment Company The accompanying notes are an integral part of these financial statements. 125 THE HARTFORD CONSERVATIVE ALLOCATION FUND SCHEDULE OF INVESTMENTS OCTOBER 31, 2006 (000'S OMITTED) --------------------------------------------------------------------------------
MARKET SHARES VALUE (W) --------- --------- AFFILIATED INVESTMENT COMPANIES -- 99.9% EQUITY FUNDS -- 39.9% 293 Hartford Capital Appreciation Fund, Class Y....... $ 12,342 634 Hartford Disciplined Equity Fund, Class Y......... 8,606 124 Hartford Equity Income Fund, Class Y.............. 1,751 250 Hartford Global Leaders Fund, Class Y............. 5,027 39 Hartford Growth Opportunities Fund, Class Y....... 1,171 182 Hartford International Capital Appreciation Fund, Class Y......................................... 2,755 167 Hartford International Opportunities Fund, Class Y............................................... 2,787 245 Hartford International Small Company Fund, Class Y............................................... 4,012 188 Hartford MidCap Value Fund, Class Y............... 2,817 236 Hartford Select MidCap Growth Fund, Class Y....... 2,681 25 Hartford Select MidCap Value Fund, Class Y........ 315 63 Hartford Select SmallCap Growth Fund, Class Y (D)............................................. 671 67 Hartford Small Company Fund, Class Y (D).......... 1,520 52 Hartford SmallCap Growth Fund, Class Y (D)........ 1,656 241 Hartford Stock Fund, Class Y...................... 5,300 359 Hartford Value Opportunities Fund, Class Y........ 6,635 -------- Total equity funds (cost $52,972).................................. $ 60,046 -------- FIXED INCOME FUNDS -- 60.0% 946 Hartford Floating Rate Fund, Class Y.............. 9,562 776 Hartford High Yield Fund, Class Y................. 6,146 1,006 Hartford Income Fund, Class Y..................... 10,383 1,709 Hartford Inflation Plus Fund, Class Y............. 17,863 2,072 Hartford Short Duration Fund, Class Y............. 20,470 2,414 Hartford Total Return Bond Fund, Class Y.......... 25,850 -------- Total fixed income funds (cost $91,169).................................. $ 90,274 --------
MARKET SHARES VALUE (W) --------- --------- MONEY MARKET FUND -- 0.0% 1 Hartford Money Market Fund, Class Y............... $ 1 -------- Total money market fund (cost $1)....................................... $ 1 -------- Total investments in affiliated investment companies (cost $144,142) (C)............................. $150,321 ========
Note: Percentage of investments as shown is the ratio of the total market value to total net assets. (C)At October 31, 2006, the cost of securities for federal income tax purposes was $144,449 and the aggregate gross unrealized appreciation and depreciation based on that cost were: Unrealized appreciation.......................... $6,798 Unrealized depreciation.......................... (926) ------ Net unrealized appreciation...................... $5,872 ======
(D)Currently non-income producing. (W)See Note 2b of accompanying Notes to Financial Statements regarding valuation of securities. The accompanying notes are an integral part of these financial statements. 126 THE HARTFORD DISCIPLINED EQUITY FUND SCHEDULE OF INVESTMENTS OCTOBER 31, 2006 (000'S OMITTED) --------------------------------------------------------------------------------
MARKET SHARES VALUE (W) --------- --------- COMMON STOCK -- 99.7% BASIC MATERIALS -- 4.6% 218 Alcoa, Inc. ...................................... $ 6,288 41 Freeport-McMoRan Copper & Gold, Inc. Class B...... 2,486 69 Goodyear Tire & Rubber Co. (D)(U)................. 1,064 147 Kimberly-Clark Corp. ............................. 9,792 -------- 19,630 -------- CAPITAL GOODS -- 6.5% 49 3M Co. ........................................... 3,887 29 Black & Decker Co. (U)............................ 2,399 46 Caterpillar, Inc. ................................ 2,781 199 Lam Research Corp. (D)............................ 9,831 72 Parker-Hannifin Corp. (U)......................... 6,030 55 Pitney Bowes, Inc. ............................... 2,583 -------- 27,511 -------- CONSUMER CYCLICAL -- 6.8% 177 Altria Group, Inc. ............................... 14,404 54 Dillard's, Inc. .................................. 1,635 107 Gap, Inc. ........................................ 2,251 70 Kohl's Corp. (D).................................. 4,942 122 Office Depot, Inc. (D)............................ 5,119 6 Polo Ralph Lauren Corp. .......................... 454 -------- 28,805 -------- CONSUMER STAPLES -- 1.9% 52 General Mills, Inc. .............................. 2,977 9 Kraft Foods, Inc. ................................ 316 61 Reynolds American, Inc. .......................... 3,840 18 Weyerhaeuser Co. ................................. 1,126 -------- 8,259 -------- ENERGY -- 9.9% 162 Chevron Corp. .................................... 10,893 197 ConocoPhillips.................................... 11,873 90 Exxon Mobil Corp. ................................ 6,406 51 Hess Corp. ....................................... 2,158 9 Marathon Oil Corp. ............................... 734 214 Occidental Petroleum Corp. ....................... 10,059 -------- 42,123 -------- FINANCE -- 23.1% 125 ACE Ltd. ......................................... 7,139 160 Assurant, Inc. ................................... 8,415 44 Axis Capital Holdings Ltd. ....................... 1,449 314 Bank of America Corp. ............................ 16,904 344 Citigroup, Inc. .................................. 17,253 125 Countrywide Financial Corp. ...................... 4,769 54 Goldman Sachs Group, Inc. ........................ 10,325 111 Lehman Brothers Holdings, Inc. (U)................ 8,601 24 MBIA, Inc. ....................................... 1,488 5 PNC Financial Services Group, Inc. ............... 336 113 St. Paul Travelers Cos., Inc. .................... 5,778 113 TD Ameritrade Holding Corp. ...................... 1,866
MARKET SHARES VALUE (W) --------- --------- FINANCE -- (CONTINUED) 68 UnitedHealth Group, Inc. ......................... $ 3,302 113 Wachovia Corp. ................................... 6,294 157 Western Union Co. (D)............................. 3,451 -------- 97,370 -------- HEALTH CARE -- 12.7% 219 Abbott Laboratories............................... 10,409 84 Amgen, Inc. (D)................................... 6,369 86 Amylin Pharmaceuticals, Inc. (D).................. 3,781 346 Bristol-Myers Squibb Co. ......................... 8,564 36 Cardinal Health, Inc. ............................ 2,337 53 Cephalon, Inc. (D)................................ 3,727 102 Forest Laboratories, Inc. (D)..................... 5,007 23 Gilead Sciences, Inc. (D)......................... 1,571 173 McKesson Corp. ................................... 8,671 69 Wyeth............................................. 3,496 -------- 53,932 -------- SERVICES -- 7.5% 133 Accenture Ltd. Class A............................ 4,367 56 Comcast Corp. Class A (D)......................... 2,295 17 IMS Health, Inc. ................................. 473 28 Omnicom Group, Inc. .............................. 2,881 114 United Parcel Service, Inc. Class B............... 8,605 102 Viacom, Inc. Class B (D).......................... 3,950 181 Walt Disney Co. .................................. 5,685 91 Waste Management, Inc. ........................... 3,414 -------- 31,670 -------- TECHNOLOGY -- 24.6% 298 AT&T, Inc. ....................................... 10,210 97 BellSouth Corp. .................................. 4,352 40 CenturyTel, Inc. ................................. 1,594 68 Cisco Systems, Inc. (D)(U)........................ 1,652 192 Corning, Inc. (D)................................. 3,929 139 Dover Corp. ...................................... 6,579 154 First Data Corp. ................................. 3,735 29 Garmin Ltd. (U)................................... 1,560 120 General Electric Co. ............................. 4,213 122 Hewlett-Packard Co. .............................. 4,730 79 International Business Machines Corp. ............ 7,285 113 Lockheed Martin Corp. ............................ 9,840 101 MEMC Electronic Materials, Inc. (D)............... 3,600 621 Microsoft Corp. .................................. 17,838 449 Motorola, Inc. ................................... 10,356 78 Oracle Corp. (D).................................. 1,435 187 Qwest Communications International, Inc. (D)...... 1,612 70 Seagate Technology................................ 1,569 97 Sprint Nextel Corp. .............................. 1,804 72 Whirlpool Corp. .................................. 6,223 -------- 104,116 -------- TRANSPORTATION -- 0.2% 14 General Dynamics Corp. ........................... 967 --------
The accompanying notes are an integral part of these financial statements. 127 THE HARTFORD DISCIPLINED EQUITY FUND SCHEDULE OF INVESTMENTS -- (CONTINUED) OCTOBER 31, 2006 (000'S OMITTED) --------------------------------------------------------------------------------
MARKET SHARES VALUE (W) --------- --------- COMMON STOCK -- (CONTINUED) UTILITIES -- 1.9% 40 FirstEnergy Corp. ................................ $ 2,366 89 TXU Corp. ........................................ 5,604 -------- 7,970 -------- Total common stock (cost $367,439)................................. $422,353 -------- PRINCIPAL AMOUNT --------- SHORT-TERM INVESTMENTS -- 0.6% REPURCHASE AGREEMENTS -- 0.6% $483 Bank of America Securities TriParty Joint Repurchase Agreement, 5.31%, 11/01/2006............................... $ 483 284 Credit Suisse Securities TriParty Joint Repurchase Agreement, 5.32%, 11/01/2006............................... 284 11 Deutsche Bank Securities Joint Repurchase Agreement, 5.25%, 11/01/2006............................... 11 227 Deutsche Bank Securities TriParty Joint Repurchase Agreement, 5.30%, 11/01/2006............................... 227 477 Deutsche Bank Securities TriParty Joint Repurchase Agreement, 5.32%, 11/01/2006............................... 477 262 Morgan Stanley & Co., Inc. TriParty Joint Repurchase Agreement, 5.29%, 11/01/2006............................... 262 642 UBS Securities TriParty Joint Repurchase Agreement, 5.31%, 11/01/2006............................... 642 -------- 2,386 -------- Total short-term investments (cost $2,386)................................... $ 2,386 -------- Total investments in securities (cost $369,825) (C)............................. $424,739 ========
Note: Percentage of investments as shown is the ratio of the total market value to total net assets. (C)At October 31, 2006, the cost of securities for federal income tax purposes was $370,335 and the aggregate gross unrealized appreciation and depreciation based on that cost were: Unrealized appreciation......................... $58,150 Unrealized depreciation......................... (3,746) ------- Net unrealized appreciation..................... $54,404 =======
(D)Currently non-income producing. (U)At October 31, 2006, securities valued at $21,306 were designated to cover open call options written as follows (see Note 2 to accompanying Notes to Financial Statements):
EXERCISE MARKET PREMIUMS ISSUER CONTRACTS PRICE EXPIRATION DATE VALUE (W) RECEIVED ------ --------- -------- --------------- --------- -------- Black & Decker Co. 63 $85 November 2006 $ 8 $ 6 Cisco Systems, Inc 161 25 November 2006 6 6 Garmin Ltd. 67 55 November 2006 13 6 Goodyear Tire & Rubber Co. 145 15 November 2006 12 9 Lehman Brothers Holdings, Inc. 139 80 November 2006 11 17 Parker-Hannifin Corp. 102 90 December 2006 6 9 --- --- Total Value $56 $53 === ===
(W)See Note 2b of accompanying Notes to Financial Statements regarding valuation of securities. The accompanying notes are an integral part of these financial statements. 128 THE HARTFORD DIVIDEND & GROWTH FUND SCHEDULE OF INVESTMENTS OCTOBER 31, 2006 (000'S OMITTED) --------------------------------------------------------------------------------
MARKET SHARES VALUE (W) --------- ---------- COMMON STOCK -- 97.2% BASIC MATERIALS -- 7.2% 1,678 Alcoa, Inc. ...................................... $ 48,514 213 Bowater, Inc. (G)................................. 4,443 867 Companhia Vale do Rio Doce ADR.................... 22,053 1,265 E.I. DuPont de Nemours & Co. ..................... 57,931 826 International Paper Co. .......................... 27,557 610 Kimberly-Clark Corp. ............................. 40,544 329 Newmont Mining Corp. ............................. 14,871 80 Rio Tinto plc ADR................................. 17,711 281 Rohm & Haas Co. .................................. 14,567 ---------- 248,191 ---------- CAPITAL GOODS -- 5.1% 557 American Standard Cos., Inc. ..................... 24,647 561 Deere & Co. ...................................... 47,741 374 KLA-Tencor Corp. ................................. 18,385 281 Parker-Hannifin Corp. ............................ 23,458 624 Pitney Bowes, Inc. ............................... 29,166 1,905 Xerox Corp. (D)................................... 32,378 ---------- 175,775 ---------- CONSUMER CYCLICAL -- 8.0% 746 Altria Group, Inc. ............................... 60,697 422 Avery Dennison Corp. ............................. 26,626 134 Genuine Parts Co. ................................ 6,077 483 Ltd. Brands, Inc. ................................ 14,240 1,033 McDonald's Corp. ................................. 43,287 189 NIKE, Inc. Class B (G)............................ 17,347 889 Sysco Corp. ...................................... 31,090 1,575 Wal-Mart Stores, Inc. ............................ 77,621 ---------- 276,985 ---------- CONSUMER STAPLES -- 5.4% 390 Bunge Ltd. ....................................... 25,009 780 Coca-Cola Co. .................................... 36,446 377 Nestle S.A. ADR................................... 32,238 379 Procter & Gamble Co. ............................. 24,039 1,201 Tyson Foods, Inc. Class A......................... 17,359 422 Unilever N.V. NY Shares........................... 10,215 663 Weyerhaeuser Co. ................................. 42,167 ---------- 187,473 ---------- ENERGY -- 15.4% 335 BP plc ADR........................................ 22,452 1,643 Chevron Corp. .................................... 110,410 807 ConocoPhillips.................................... 48,620 900 EnCana Corp. ..................................... 42,751 1,756 Exxon Mobil Corp. ................................ 125,415 546 Royal Dutch Shell plc............................. 38,013 451 Schlumberger Ltd. ................................ 28,418 1,206 Total S.A. ADR (G)................................ 82,204 699 XTO Energy, Inc. ................................. 32,615 ---------- 530,898 ---------- FINANCE -- 17.8% 520 ACE Ltd. ......................................... 29,793 563 Allstate Corp. ................................... 34,515
MARKET SHARES VALUE (W) --------- ---------- FINANCE -- (CONTINUED) 651 American International Group, Inc. ............... $ 43,734 2,095 Bank of America Corp. ............................ 112,865 1,839 Citigroup, Inc. .................................. 92,224 489 Federal Home Loan Mortgage Corp. ................. 33,709 359 JP Morgan Chase & Co. ............................ 17,023 463 MBIA, Inc. ....................................... 28,700 515 Merrill Lynch & Co., Inc. ........................ 45,048 370 Metlife, Inc. .................................... 21,121 187 PNC Financial Services Group, Inc. ............... 13,061 209 Prudential Financial, Inc. ....................... 16,040 622 State Street Corp. ............................... 39,938 700 Synovus Financial Corp. .......................... 20,563 849 UBS AG............................................ 50,780 551 Western Union Co. ................................ 12,158 ---------- 611,272 ---------- HEALTH CARE -- 9.2% 1,402 Abbott Laboratories............................... 66,595 483 AstraZeneca plc ADR............................... 28,370 1,776 Bristol-Myers Squibb Co. ......................... 43,958 1,217 Eli Lilly & Co. .................................. 68,136 450 Sanofi-Aventis S.A. ADR........................... 19,211 2,494 Schering-Plough Corp. ............................ 55,213 361 Teva Pharmaceutical Industries Ltd. ADR........... 11,909 426 Wyeth............................................. 21,744 ---------- 315,136 ---------- SERVICES -- 7.1% 784 Accenture Ltd. Class A............................ 25,792 257 Automatic Data Processing, Inc. .................. 12,681 776 CBS Corp. Class B................................. 22,470 735 Comcast Corp. Class A (D)......................... 29,911 444 Comcast Corp. Special Class A (D)................. 17,989 584 New York Times Co. Class A (G).................... 14,120 2,178 Sun Microsystems, Inc. (D)........................ 11,824 970 Time Warner, Inc. ................................ 19,404 369 United Parcel Service, Inc. Class B............... 27,782 546 Viacom, Inc. Class B (D).......................... 21,256 330 Warner Music Group Corp. ......................... 8,544 837 Waste Management, Inc. ........................... 31,386 ---------- 243,159 ---------- TECHNOLOGY -- 16.7% 3,097 AT&T, Inc. (G).................................... 106,065 441 BellSouth Corp. .................................. 19,889 1,688 EMC Corp. (D)..................................... 20,679 551 First Data Corp. ................................. 13,371 2,778 General Electric Co. ............................. 97,543 733 International Business Machines Corp. ............ 67,650 369 Lockheed Martin Corp. ............................ 32,077 478 Maxim Integrated Products, Inc. .................. 14,357 845 Medtronic, Inc. .................................. 41,130 1,791 Microsoft Corp. .................................. 51,428 1,784 Motorola, Inc. ................................... 41,134 1,340 Sprint Nextel Corp. .............................. 25,046
The accompanying notes are an integral part of these financial statements. 129 THE HARTFORD DIVIDEND & GROWTH FUND SCHEDULE OF INVESTMENTS -- (CONTINUED) OCTOBER 31, 2006 (000'S OMITTED) --------------------------------------------------------------------------------
MARKET SHARES VALUE (W) --------- ---------- COMMON STOCK -- (CONTINUED) TECHNOLOGY -- (CONTINUED) 907 Verizon Communications, Inc. ..................... $ 33,575 146 Whirlpool Corp. .................................. 12,692 ---------- 576,636 ---------- TRANSPORTATION -- 0.5% 1,068 Southwest Airlines Co. ........................... 16,054 ---------- UTILITIES -- 4.8% 556 Dominion Resources, Inc. ......................... 45,055 1,066 Exelon Corp. ..................................... 66,063 812 FPL Group, Inc. (G)............................... 41,432 298 Progress Energy, Inc. ............................ 13,714 ---------- 166,264 ---------- Total common stock (cost $2,725,705)............................... $3,347,843 ---------- PRINCIPAL AMOUNT --------- SHORT-TERM INVESTMENTS -- 4.2% REPURCHASE AGREEMENTS -- 2.8% $19,234 Bank of America Securities TriParty Joint Repurchase Agreement, 5.31%, 11/01/2006............................... $ 19,234 11,314 Credit Suisse Securities TriParty Joint Repurchase Agreement, 5.32%, 11/01/2006............................... 11,314 451 Deutsche Bank Securities Joint Repurchase Agreement, 5.25%, 11/01/2006............................... 451 9,051 Deutsche Bank Securities TriParty Joint Repurchase Agreement, 5.30%, 11/01/2006............................... 9,051 19,008 Deutsche Bank Securities TriParty Joint Repurchase Agreement, 5.32%, 11/01/2006............................... 19,008
PRINCIPAL MARKET AMOUNT VALUE (W) --------- ---------- REPURCHASE AGREEMENTS -- (CONTINUED) $10,409 Morgan Stanley & Co., Inc. TriParty Joint Repurchase Agreement, 5.29%, 11/01/2006............................... $ 10,409 25,571 UBS Securities TriParty Joint Repurchase Agreement, 5.31%, 11/01/2006............................... 25,571 ---------- 95,038 ---------- SHARES --------- SECURITIES PURCHASED WITH PROCEEDS FROM SECURITY LENDING -- 1.4% $49,371 BNY Institutional Cash Reserve Fund............... $ 49,371 ---------- Total short-term investments (cost $144,409)................................. $ 144,409 ---------- Total investments in securities (cost $2,870,114) (C)........................... $3,492,252 ==========
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 10.98% of total net assets at October 31, 2006. (C)At October 31, 2006, the cost of securities for federal income tax purposes was $2,873,301 and the aggregate gross unrealized appreciation and depreciation based on that cost were: Unrealized appreciation........................ $643,253 Unrealized depreciation........................ (24,302) -------- Net unrealized appreciation.................... $618,951 ========
(D) Currently non-income producing. (G) Security is partially on loan at October 31, 2006. (W) See Note 2b of accompanying Notes to Financial Statements regarding valuation of securities. The accompanying notes are an integral part of these financial statements. 130 THE HARTFORD EQUITY INCOME FUND SCHEDULE OF INVESTMENTS OCTOBER 31, 2006 (000'S OMITTED) --------------------------------------------------------------------------------
MARKET SHARES VALUE (W) --------- --------- COMMON STOCK -- 98.5% BASIC MATERIALS -- 8.8% 119 Air Products and Chemicals, Inc. ................. $ 8,312 329 Alcoa, Inc. ...................................... 9,505 332 Dow Chemical Co. ................................. 13,523 164 E.I. DuPont de Nemours & Co. ..................... 7,529 81 International Paper Co. .......................... 2,688 126 Kimberly-Clark Corp. ............................. 8,357 101 PPG Industries, Inc. ............................. 6,876 -------- 56,790 -------- CAPITAL GOODS -- 5.6% 79 3M Co. ........................................... 6,252 149 American Standard Cos., Inc. ..................... 6,617 88 Deere & Co. ...................................... 7,466 135 Goodrich Corp. ................................... 5,957 201 Pitney Bowes, Inc. ............................... 9,403 -------- 35,695 -------- CONSUMER CYCLICAL -- 3.2% 256 Altria Group, Inc. ............................... 20,796 -------- CONSUMER STAPLES -- 7.2% 142 Campbell Soup Co. ................................ 5,308 98 Colgate-Palmolive Co. ............................ 6,269 69 Diageo plc ADR.................................... 5,168 158 General Mills, Inc. .............................. 8,968 184 Kellogg Co. ...................................... 9,260 115 PepsiCo, Inc. .................................... 7,315 66 Weyerhaeuser Co. ................................. 4,210 -------- 46,498 -------- ENERGY -- 9.3% 185 Chevron Corp. .................................... 12,425 105 ConocoPhillips.................................... 6,329 410 Exxon Mobil Corp. ................................ 29,255 199 Halliburton Co. .................................. 6,438 77 Royal Dutch Shell plc ADR......................... 5,509 -------- 59,956 -------- FINANCE -- 29.5% 146 ACE Ltd. ......................................... 8,376 143 Allstate Corp. ................................... 8,768 573 Bank of America Corp. ............................ 30,869 181 Bank of New York Co., Inc. ....................... 6,214 220 Chubb Corp. ...................................... 11,696 474 Citigroup, Inc. .................................. 23,751 377 Host Hotels & Resorts, Inc. ...................... 8,701 295 JP Morgan Chase & Co. ............................ 13,990 126 Merrill Lynch & Co., Inc. ........................ 11,003 191 PNC Financial Services Group, Inc. ............... 13,406 99 SunTrust Banks, Inc. ............................. 7,811 298 UBS AG............................................ 17,814 234 US Bancorp........................................ 7,924 102 Wachovia Corp. ................................... 5,670 371 Wells Fargo & Co. ................................ 13,448 -------- 189,441 --------
MARKET SHARES VALUE (W) --------- --------- HEALTH CARE -- 8.5% 179 Abbott Laboratories............................... $ 8,485 114 AstraZeneca plc ADR............................... 6,668 210 Baxter International, Inc. ....................... 9,638 236 Bristol-Myers Squibb Co. ......................... 5,843 270 Pfizer, Inc. ..................................... 7,193 325 Wyeth............................................. 16,593 -------- 54,420 -------- SERVICES -- 2.2% 70 Gannett Co., Inc. ................................ 4,135 87 R.R. Donnelley & Sons Co. ........................ 2,942 181 Waste Management, Inc. ........................... 6,765 -------- 13,842 -------- TECHNOLOGY -- 13.6% 778 AT&T, Inc. ....................................... 26,638 262 BellSouth Corp. .................................. 11,837 154 Chunghwa Telecom Co., Ltd. ADR.................... 2,813 656 General Electric Co. ............................. 23,032 197 Sprint Nextel Corp. .............................. 3,682 556 Taiwan Semiconductor Manufacturing Co., Ltd. ADR............................................. 5,388 297 Verizon Communications, Inc. ..................... 10,999 110 Vodafone Group plc ADR............................ 2,848 -------- 87,237 -------- UTILITIES -- 10.6% 164 American Electric Power Co., Inc. ................ 6,778 141 Consolidated Edison, Inc. ........................ 6,813 177 Dominion Resources, Inc. ......................... 14,303 34 Entergy Corp. .................................... 2,927 144 Exelon Corp. ..................................... 8,925 319 FPL Group, Inc. .................................. 16,276 33 PPL Corp. ........................................ 1,125 125 SCANA Corp. ...................................... 5,011 149 Southern Co. ..................................... 5,411 -------- 67,569 -------- Total common stock (cost $547,801)................................. $632,244 -------- PRINCIPAL AMOUNT --------- SHORT-TERM INVESTMENTS -- 1.8% REPURCHASE AGREEMENTS -- 1.8% $2,316 Banc of America Securities TriParty Joint Repurchase Agreement, 5.31%, 11/01/2006............................... $ 2,316 1,362 Credit Suisse Securities TriParty Joint Repurchase Agreement, 5.32%, 11/01/2006............................... 1,362 54 Deutsche Bank Securities Joint Repurchase Agreement, 5.25%, 11/01/2006............................... 54 1,090 Deutsche Bank Securities TriParty Joint Repurchase Agreement, 5.30%, 11/01/2006............................... 1,090
The accompanying notes are an integral part of these financial statements. 131 THE HARTFORD EQUITY INCOME FUND SCHEDULE OF INVESTMENTS -- (CONTINUED) OCTOBER 31, 2006 (000'S OMITTED) --------------------------------------------------------------------------------
PRINCIPAL MARKET AMOUNT VALUE (W) --------- --------- SHORT-TERM INVESTMENTS -- (CONTINUED) REPURCHASE AGREEMENTS -- (CONTINUED) $2,288 Deutsche Bank Securities TriParty Joint Repurchase Agreement, 5.32%, 11/01/2006............................... $ 2,288 1,253 Morgan Stanley & Co., Inc. TriParty Joint Repurchase Agreement, 5.29%, 11/01/2006............................... 1,253 3,079 UBS Securities TriParty Joint Repurchase Agreement, 5.31%, 11/01/2006............................... 3,079 -------- Total short-term investments (cost $11,442).................................. $ 11,442 -------- Total investments in securities (cost $559,243) (C)............................. $643,686 ========
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 7.20% of total net assets at October 31, 2006. (C)At October 31, 2006, the cost of securities for federal income tax purposes was $559,355 and the aggregate gross unrealized appreciation and depreciation based on that cost were: Unrealized appreciation......................... $89,372 Unrealized depreciation......................... (5,041) ------- Net unrealized appreciation..................... $84,331 =======
(W)See Note 2b of accompanying Notes to Financial Statements regarding valuation of securities. The accompanying notes are an integral part of these financial statements. 132 THE HARTFORD FLOATING RATE FUND SCHEDULE OF INVESTMENTS OCTOBER 31, 2006 (000'S OMITTED) --------------------------------------------------------------------------------
PRINCIPAL MARKET AMOUNT VALUE (W) ----------- ---------- ASSET & COMMERCIAL MORTGAGE BACKED SECURITIES -- 0.2% FINANCE -- 0.2% $ 2,000 CS First Boston Mortgage Securities Corp., 7.02%, 11/15/2019 (I)(L)........................ $ 1,964 1,800 CS First Boston Mortgage Securities Corp., 7.27%, 11/15/2019 (I)(L)........................ 1,761 1,500 Lehman Brothers Commercial Mortgage Trust, 6.98%, 07/15/2018 (I)(L)........................ 1,503 ---------- Total asset & commercial mortgage backed securities (cost $5,279)................................... $ 5,228 ---------- CORPORATE BONDS: INVESTMENT GRADE -- 0.4% SERVICES -- 0.4% $ 2,500 Service Corp. International -- Series A, 7.36%, 11/14/2011 (L)(Q)(H)..................... $ 2,500 8,000 Service Corp. International -- Series B, 7.36%, 11/14/2011 (L)(Q)(H)..................... 8,000 ---------- Total corporate bonds: investment grade (cost $10,500).................................. $ 10,500 ---------- CORPORATE BONDS: NON-INVESTMENT GRADE -- 7.9% BASIC MATERIALS -- 2.5% $ 11,000 Abitibi-Consolidated, Inc., 8.89%, 06/15/2011 (L)........................... $ 10,615 2,000 Ainsworth Lumber Co. Ltd., 9.12%, 10/01/2010 (L)........................... 1,590 3,000 Ainsworth Lumber Co. Ltd., 9.37%, 04/01/2013 (L)........................... 2,280 12,000 Bowater, Inc., 8.39%, 03/15/2010 (L)........................... 12,120 1,000 Equistar Chemicals L.P., 8.75%, 02/15/2009............................... 1,040 1,000 Equistar Chemicals L.P., 10.63%, 05/01/2011.............................. 1,070 9,055 Lyondell Chemical Co., 11.13%, 07/15/2012.............................. 9,802 1,500 MacDermid, Inc., 9.13%, 07/15/2011............................... 1,568 9,195 Nova Chemicals Corp., 8.40%, 11/15/2013 (L)........................... 9,356 2,500 OM Group, Inc., 9.25%, 12/15/2011............................... 2,606 5,220 Playtex Products, Inc., 9.38%, 06/01/2011............................... 5,429 4,000 United States Steel Corp., 9.75%, 05/15/2010............................... 4,255 ---------- 61,731 ---------- CONSUMER CYCLICAL -- 1.2% 7,000 Amerigas Partners L.P., 7.25%, 05/20/2015............................... 6,983 5,115 Autonation, Inc., 7.37%, 04/15/2013 (L)........................... 5,153
PRINCIPAL MARKET AMOUNT VALUE (W) ----------- ---------- CONSUMER CYCLICAL -- (CONTINUED) $ 2,550 Builders FirstSource, Inc., 9.65%, 02/15/2012 (L)........................... $ 2,505 2,000 GSC Holdings Corp., 9.25%, 10/01/2011 (L)........................... 2,080 8,500 Levi Strauss & Co., 10.12%, 04/01/2012 (L).......................... 8,766 5,000 Stater Brothers Holdings, Inc., 8.89%, 06/15/2010 (L)........................... 5,025 ---------- 30,512 ---------- CONSUMER STAPLES -- 0.6% 4,001 Land O'Lakes, Inc., 8.75%, 11/15/2011............................... 4,156 3,745 Nutro Products, Inc., 9.40%, 10/15/2013 (I)(L)........................ 3,848 5,900 Pilgrim's Pride Corp., 9.63%, 09/15/2011............................... 6,180 ---------- 14,184 ---------- FINANCE -- 0.4% 4,000 Crescent Real Estate Equities L.P., 9.25%, 04/15/2009............................... 4,120 2,000 Ford Motor Credit Co., 8.47%, 11/02/2007 (L)........................... 2,028 2,590 Ford Motor Credit Co., 9.82%, 04/15/2012 (L)........................... 2,701 ---------- 8,849 ---------- SERVICES -- 0.9% 3,000 Aztar Corp., 9.00%, 08/15/2011............................... 3,131 10,500 Cablevision Systems Corp., 9.87%, 04/01/2009 (L)........................... 10,999 1,500 Primedia, Inc., 10.78%, 05/15/2010 (L).......................... 1,553 3,000 Time Warner Telecom Holdings, Inc., 9.41%, 02/15/2011 (L)........................... 3,060 4,700 Unisys Corp., 7.88%, 04/01/2008............................... 4,700 ---------- 23,443 ---------- TECHNOLOGY -- 2.2% 8,000 American Cellular Corp., 10.00%, 08/01/2011.............................. 8,400 7,000 Centennial Communications Corp., 11.12%, 01/01/2013 (L).......................... 7,280 2,000 Dobson Cellular Systems, 8.38%, 11/01/2011............................... 2,078 7,000 Dobson Communications Corp., 9.62%, 10/15/2012 (L)........................... 7,105 13,040 NXP B.V., 8.12%, 10/15/2013 (I)(L)........................ 13,154 2,900 Qwest Communications International, Inc., 8.90%, 02/15/2009 (L)........................... 2,947 2,390 Qwest Corp., 8.64%, 06/15/2013 (L)........................... 2,575
The accompanying notes are an integral part of these financial statements. 133 THE HARTFORD FLOATING RATE FUND SCHEDULE OF INVESTMENTS -- (CONTINUED) OCTOBER 31, 2006 (000'S OMITTED) --------------------------------------------------------------------------------
PRINCIPAL MARKET AMOUNT VALUE (W) ----------- ---------- CORPORATE BONDS: NON-INVESTMENT GRADE -- (CONTINUED) TECHNOLOGY -- (CONTINUED) $ 4,000 Rogers Wireless, Inc., 8.52%, 12/15/2010 (L)........................... $ 4,085 6,500 Rural Cellular Corp., 11.24%, 11/01/2012 (L).......................... 6,744 ---------- 54,368 ---------- UTILITIES -- 0.1% 3,000 Calpine Generating Co. LLC, 9.07%, 04/01/2009 (L)(F)(H)..................... 3,083 ---------- Total corporate bonds: non-investment grade (cost $196,778)................................. $ 196,170 ---------- SENIOR FLOATING RATE INTERESTS NON-INVESTMENT GRADE (V) -- 90.6% BASIC MATERIALS -- 12.0% $ 125 Basell Finance Co., Term Loan B4, 7.60%, 09/15/2013 (N)........................... $ 126 625 Basell Finance Co., Term Loan C2, 7.60%, 09/15/2013 (N)........................... 631 125 Basell Finance Co., Term Loan B2, 8.35%, 09/15/2013 (N)........................... 126 625 Basell Finance Co., Term Loan C4, 8.35%, 09/15/2013 (N)........................... 631 4,000 Berry Plastics Corp., 7.12%, 09/05/2013 (N)........................... 4,000 4,963 Blount, Inc., 7.03%, 06/09/2010 (N)........................... 4,967 1,000 Brenntag AG, 12.08%, 12/22/2012 (N).......................... 1,024 196 Brenntag Group, Second Lien Term Loan, 7.97%, 01/12/2014 (N)........................... 197 804 Brenntag Group, Term Loan B2, 7.97%, 01/12/2014 (N)........................... 811 1,667 Calumet Lubricants Co. L.P., 8.68%, 12/01/2012 (N)........................... 1,667 1,654 Calumet Lubricants Co. L.P., 8.81%, 12/01/2012 (N)........................... 1,654 3,718 Celanese Holdings LLC, 7.33%, 04/06/2011 (N)........................... 3,738 988 Coffeyville Resources, 7.63%, 07/05/2012 (N)........................... 992 3,997 Coffeyville Resources, 11.77%, 07/08/2013 (N).......................... 4,110 4,000 Columbian Chemicals Co., 7.08%, 03/15/2013 (N)........................... 3,995 7,514 Compass Minerals Group, Inc., 6.87%, 12/22/2012 (N)........................... 7,508 6,484 Covalence Specialty Materials Corp., 7.38%, 05/18/2013 (N)........................... 6,484 6,000 Covalence Specialty Materials Corp., 8.54%, 02/10/2013 (N)........................... 6,068 10,094 Eastman Kodak Co., 7.60%, 10/19/2012 (N)(Q)........................ 10,102
PRINCIPAL Market AMOUNT (B) Value (W) ----------- ---------- BASIC MATERIALS -- (CONTINUED) $ 5,995 Eastman Kodak Co., 7.64%, 10/19/2012 (N)(Q)........................ $ 6,000 8,500 Georgia Gulf Corp., 7.32%, 09/01/2013 (N)........................... 8,540 22,867 Georgia-Pacific Corp., 7.36%, 02/14/2013 (N)........................... 22,977 7,500 Georgia-Pacific Corp., 8.33%, 02/14/2014 (N)........................... 7,587 1,000 Goodyear Tire & Rubber, 6.97%, 04/30/2010 (N)........................... 1,001 7,000 Goodyear Tire & Rubber, 8.08%, 04/30/2010 (N)........................... 7,049 2,500 Goodyear Tire & Rubber, 8.86%, 04/30/2010 (N)........................... 2,528 995 Graham Packaging Co. L.P., 7.60%, 10/07/2011 (N)........................... 1,001 5,957 Graham Packaging Co. L.P., 7.67%, 10/07/2011 (N)........................... 5,984 2,500 Graham Packaging Co. L.P., 9.51%, 04/07/2012 (N)........................... 2,511 1,915 Graphic Packaging, 7.78%, 08/08/2010 (N)........................... 1,935 16,736 Hexion Specialty Chemicals, Term Loan C1, 7.40%, 05/15/2013 (N)(Q)........................ 16,677 3,636 Hexion Specialty Chemicals, Term Loan C2, 7.40%, 05/15/2013 (N)(Q)........................ 3,631 30,426 Huntsman International, Inc., 7.06%, 08/16/2012 (N)........................... 30,399 EUR 500 Ineos Group Holdings plc, 5.48%, 02/01/2013 (N)........................... 648 5,250 Ineos Group, 7.58%, 02/01/2013 (N)........................... 5,303 5,250 Ineos Group, 8.07%, 02/01/2013 (N)........................... 5,306 881 Innophos, Inc., 7.51%, 08/01/2010 (N)........................... 883 1,920 Intertape Polymer Group, Inc., 7.64%, 07/28/2011 (AA)(Q)....................... 1,933 20,781 ISP Chemco, Inc., 7.43%, 02/16/2013 (N)........................... 20,833 16,141 Jarden Corp., 7.10%, 01/24/2012 (N)........................... 16,108 2,316 Jarden Corp., 7.14%, 01/24/2012 (N)........................... 2,311 8,370 Jarden Corp., 7.35%, 01/24/2012 (N)........................... 8,378 2,000 Kranson Industries, 8.17%, 07/31/2013 (N)........................... 2,008 8,500 Lyondell Chemical Co., 7.11%, 08/16/2013 (N)........................... 8,537 988 Mega Bloks, Inc., 7.19%, 07/26/2012 (N)........................... 989 1,512 Mueller Group, Inc., 7.31%, 10/31/2012 (N)........................... 1,517 10,706 Nalco Co., 7.15%, 11/04/2010 (N)........................... 10,725
The accompanying notes are an integral part of these financial statements. 134 --------------------------------------------------------------------------------
PRINCIPAL MARKET AMOUNT VALUE (W) ----------- ---------- SENIOR FLOATING RATE INTERESTS NON-INVESTMENT GRADE (V) -- (continued) BASIC MATERIALS -- (CONTINUED) $ 2,425 NCI Building Systems, Inc., 6.82%, 06/18/2010 (N)........................... $ 2,422 990 PQ Corp., 7.38%, 02/11/2012 (N)........................... 992 206 Resources Services Holdings USA, Inc., Canadian Term Loan, 8.57%, 10/18/2012 (N)........................... 206 2,073 Resources Services Holdings USA, Inc., US Term Loan, 8.57%, 10/18/2012 (N)........................... 2,080 222 Resources Services Holdings USA, Inc., 8.63%, 10/18/2012 (N)........................... 222 438 Smurfit-Stone Container Enterprises, Inc., 7.42%, 11/01/2010 (N)........................... 440 2,405 Smurfit-Stone Container Enterprises, Inc., 7.52%, 11/01/2010 (N)........................... 2,418 1,063 Smurfit-Stone Container Enterprises, Inc., Term Loan C, 7.58%, 11/01/2011 (N)........................... 1,069 2,377 Smurfit-Stone Container Enterprises, Inc., Term Loan C1, 7.58%, 11/01/2011 (N)........................... 2,390 10,694 Solo Cup Co., 8.54%, 02/27/2011 (N)........................... 10,740 2,500 Solo Cup Co., 11.19%, 03/31/2012 (N).......................... 2,563 9,842 Tupperware Corp., 6.89%, 11/07/2012 (N)........................... 9,778 ---------- 297,450 ---------- CAPITAL GOODS -- 2.5% 5,239 ACCO Brands Corp., 7.06%, 08/15/2012 (N)........................... 5,251 2,000 Babcock & Wilcox Co., Delayed Draw Term Loan, 8.12%, 02/14/2012 (AA)(Q)....................... 2,000 1,000 Babcock & Wilcox Co., Synthetic Letter of Credit, 8.12%, 02/14/2012 (N)........................... 1,005 3,000 BE Aerospace, Inc., 7.76%, 08/22/2012 (N)........................... 3,015 6,439 Bluegrass Container Corp., 10.29%, 06/29/2013 (N).......................... 6,504 2,061 Bluegrass Container Corp., 10.32%, 06/29/2013 (N).......................... 2,081 2,297 Bluegrass Container Corp., First Lien Term Loan, 7.60%, 06/29/2013 (N)........................... 2,315 7,678 Bluegrass Container Corp., Second Lien, 7.60%, 06/29/2013 (N)........................... 7,743 1,500 Carl Zeiss Vision, 8.61%, 04/13/2014 (N)........................... 1,500 2,000 Carl Zeiss Vision, 10.67%, 06/15/2014 (N).......................... 2,028
PRINCIPAL MARKET AMOUNT VALUE (W) ----------- ---------- CAPITAL GOODS -- (CONTINUED) $ 694 Invensys International Holdings, 7.33%, 01/15/2011 (N)........................... $ 697 556 Invensys International Holdings, 7.45%, 12/15/2010 (N)........................... 558 3,477 K & F Industries, Inc., 7.31%, 11/18/2012 (N)........................... 3,490 1,481 Mid-Western Aircraft Systems, Inc., 7.57%, 12/31/2011 (N)........................... 1,492 5,985 Nacco Material Handling Group, 7.35%, 03/22/2013 (N)........................... 5,963 3,292 Primus International, Inc., 7.39%, 06/07/2012 (N)........................... 3,300 1,971 Targus Group International, 8.30%, 11/22/2012 (N)........................... 1,922 4,000 TransDigm, Inc., 7.36%, 06/23/2013 (N)........................... 4,033 3,687 Unifrax Corp., 7.61%, 05/02/2013 (N)........................... 3,684 1,734 Visant Holding Corp., 7.02%, 10/04/2011 (N)........................... 1,740 1,995 Vought Aircraft Industries, Inc., 7.83%, 12/22/2011 (N)........................... 2,004 2,000 Wesco Aircraft Hardware Corp., 7.58%, 09/29/2013 (N)........................... 2,012 ---------- 64,337 ---------- CONSUMER CYCLICAL -- 11.3% 3,000 Accuride Corp., 7.43%, 01/31/2012 (N)(Q)........................ 3,004 597 American General LLC, 8.31%, 09/01/2013 (N)........................... 601 17,903 American General LLC, 8.34%, 09/01/2013 (N)........................... 17,993 4,000 Armstrong World Industries, Inc., 7.12%, 10/13/2013 (N)........................... 4,000 3,909 Atrium Cos., Inc., 8.13%, 06/12/2012 (N)........................... 3,822 3,479 Axletech International, 7.59%, 10/20/2012 (N)........................... 3,496 2,000 Axletech International, 11.84%, 04/20/2013 (N).......................... 2,015 1,990 Brand Services, Inc., 7.61%, 01/15/2012 (N)........................... 1,990 2,500 Brand Services, Inc., 7.62%, 01/15/2012 (AA)(Q)....................... 2,500 3,980 Burlington Coat Factory Warehouse Corp., 7.53%, 05/28/2013 (N)........................... 3,918 1,897 Collins & Aikman, 8.43%, 05/17/2007 (F)(N)........................ 1,868 3,966 Contech Construction Products, 7.35%, 01/31/2013 (N)........................... 3,980 1,890 Custom Building Products, 7.56%, 10/20/2011 (N)........................... 1,893 18,000 Dana Corp., 7.64%, 03/03/2008 (F)(N)........................ 17,970
The accompanying notes are an integral part of these financial statements. 135 THE HARTFORD FLOATING RATE FUND SCHEDULE OF INVESTMENTS -- (CONTINUED) OCTOBER 31, 2006 (000'S OMITTED) --------------------------------------------------------------------------------
PRINCIPAL MARKET AMOUNT VALUE (W) ----------- ---------- SENIOR FLOATING RATE INTERESTS NON-INVESTMENT GRADE (V) -- (continued) CONSUMER CYCLICAL -- (CONTINUED) $ 3,000 Delphi Corp., 8.07%, 10/08/2007 (F)(N)........................ $ 3,056 5,970 Dollarama Group, L.P., 7.38%, 11/18/2011 (N)........................... 5,977 6,458 Easton-Bell Sports, Inc., 7.12%, 03/16/2012 (N)........................... 6,463 2,750 Federal-Mogul Corp., 7.38%, 12/09/2006 (F)(N)........................ 2,748 4,500 Foster Wheeler LLC, 7.37%, 09/12/2011 (N)........................... 4,511 5,500 Hanesbrands, Inc., 7.68%, 09/05/2013 (N)........................... 5,543 1,000 Hanesbrands, Inc., 9.71%, 09/05/2007 (N)........................... 999 3,474 Invista B.V., 6.88%, 04/30/2010 (N)........................... 3,454 2,050 Invista B.V., 6.91%, 04/30/2010 (AA)(Q)....................... 2,038 14,763 Jean Coutu Group, 7.87%, 07/30/2011 (N)........................... 14,798 10,000 Lear Corp., 7.87%, 04/25/2012 (N)........................... 9,927 2,000 Mark IV Industries, Inc., 11.28%, 12/31/2011 (N).......................... 2,038 5,453 Masonite International Corp., Canadian Term Loan, 7.43%, 04/30/2010 (N)........................... 5,332 5,462 Masonite International Corp., US Term Loan, 7.43%, 04/30/2010 (N)........................... 5,335 4,000 Masonite International Corp., 11.17%, 10/11/2011 (N).......................... 3,717 6,000 Michaels Stores, Inc., 8.38%, 10/30/2012 (AA).......................... 6,075 7,272 Neiman Marcus Group, 7.59%, 04/06/2013 (N)........................... 7,326 5,927 Nortek, Inc., 7.27%, 08/27/2011 (N)........................... 5,935 6,000 Petco Animal Supplies, Inc, 8.07%, 10/25/2013 (N)(Q)........................ 6,030 2,993 Pro-Build Holdings, Inc., 7.12%, 06/21/2013 (N)........................... 2,983 6,500 RJ Tower Corp., 9.16%, 02/02/2007 (F)(N)(Q)..................... 6,297 4,000 Radio Systems Corp., 8.09%, 10/31/2013 (AA)(Q)....................... 4,025 5,459 Roundy's Supermarkets, Inc., 8.41%, 11/03/2011 (N)........................... 5,490 5,760 Sonic Corp., 7.32%, 09/06/2013 (N)........................... 5,772 5,990 Sports Authority, Inc., 7.63%, 04/25/2013 (N)(Q)........................ 5,955 4,500 Standard Pacific Corp., 6.92%, 04/25/2013 (N)........................... 4,404
PRINCIPAL MARKET AMOUNT VALUE (W) ----------- ---------- CONSUMER CYCLICAL -- (CONTINUED) $ 333 Standard Steel LLC, 7.87%, 07/10/2012 (AA)(Q)....................... $ 336 1,663 Standard Steel LLC, 8.09%, 07/10/2012 (N)........................... 1,675 1,413 Supervalu, Inc., 6.95%, 06/01/2011 (N)........................... 1,405 26,882 Supervalu, Inc., 7.19%, 05/30/2013 (N)........................... 26,952 3,475 Tensar Corp., 8.13%, 10/28/2012 (N)........................... 3,492 21,500 Toys R Us, Inc., 8.34%, 11/30/2008 (N)(Q)........................ 21,527 3,474 TRW Automotive, 6.81%, 06/30/2012 (N)........................... 3,465 3,979 United Subcontractors, Inc., 8.36%, 12/27/2012 (N)........................... 3,859 13,898 William Carter Co., 6.86%, 07/14/2012 (N)........................... 13,874 ---------- 281,863 ---------- CONSUMER STAPLES -- 4.0% 2,544 Agricore United, Term Loan, 7.19%, 08/04/2013 (N)........................... 2,544 1,449 Agricore United, Term Loan, 7.19%, 08/04/2013 (N)........................... 1,449 14,592 American Seafoods Group, 7.11%, 09/30/2012 (N)(Q)........................ 14,574 1,330 American Seafoods Group, 7.12%, 09/30/2011 (N)........................... 1,329 1,319 Birds Eye Foods, Inc., 8.01%, 08/18/2008 (N)........................... 1,322 15,422 Chiquita Brands International, 7.57%, 06/28/2012 (N)........................... 15,390 195 Chiquita Brands International, 7.58%, 06/28/2012 (N)........................... 194 6,081 Commonwealth Brands, Inc., 7.64%, 12/22/2012 (N)........................... 6,116 2,500 Constellation Brands, Inc., 6.93%, 06/05/2013 (N)........................... 2,511 3,982 Del Monte Corp., 6.95%, 02/08/2012 (N)........................... 3,989 1,583 Dole Food Co., 7.26%, 04/12/2013 (N)........................... 1,570 11,811 Dole Food Co., 7.49%, 04/12/2013 (N)........................... 11,715 3,543 Dole Food Co., 7.57%, 04/12/2013 (N)........................... 3,504 381 Johnson Diversey, Inc., 7.83%, 12/16/2010 (N)........................... 382 2,314 Johnson Diversey, Inc., 7.90%, 12/16/2011 (N)........................... 2,332 6,994 Michael Foods, Inc., 7.53%, 11/21/2010 (N)........................... 7,029 3,096 New Page Corp., 8.29%, 05/02/2011 (N)........................... 3,112
The accompanying notes are an integral part of these financial statements. 136 --------------------------------------------------------------------------------
PRINCIPAL MARKET AMOUNT VALUE (W) ----------- ---------- SENIOR FLOATING RATE INTERESTS NON-INVESTMENT GRADE (V) -- (continued) CONSUMER STAPLES -- (CONTINUED) $ 5,567 Nutro Products, Inc., 7.34%, 04/21/2013 (N)........................... $ 5,567 473 Otis Spunkmeyer, Inc., 10.00%, 08/26/2012 (N).......................... 473 1,154 Pierre Foods, Inc., 7.47%, 06/30/2010 (N)........................... 1,156 9,975 Reynolds American, Inc., 7.28%, 05/31/2012 (N)........................... 10,025 2,993 United Agri Products, Inc., 7.37%, 06/01/2012 (N)........................... 2,993 ---------- 99,276 ---------- ENERGY -- 1.7% 2,763 Citgo Petroleum Corp., 6.68%, 11/14/2012 (N)........................... 2,757 7,980 Helix Energy Solutions Group, Inc., 7.44%, 05/31/2013 (N)........................... 7,984 1,291 Magellan Midstream Holdings L.P., 7.33%, 07/31/2012 (N)........................... 1,295 1,750 MEG Energy Corp., Delayed Draw Term Loan, 7.38%, 04/03/2013 (N)(Q)........................ 1,736 1,741 MEG Energy Corp., Term Loan B, 7.38%, 04/03/2013 (N)........................... 1,744 793 NE Energy, Inc., Letter of Credit, 7.87%, 10/19/2013 (AA)(Q)....................... 799 6,707 NE Energy, Inc., Term Loan B, 7.87%, 10/19/2013 (AA)(Q)....................... 6,760 3,317 Niska Gas Storage LLC, 7.08%, 05/03/2013 (N)........................... 3,313 424 Niska Gas Storage LLC, 7.12%, 05/03/2013 (AA)(Q)....................... 423 606 Niska Gas Storage LLC, Asset Sale, 7.14%, 05/03/2013 (N)........................... 605 633 Niska Gas Storage LLC, US Term Loan, 7.14%, 05/03/2013 (N)........................... 632 1,164 Targa Resources, Inc., 7.47%, 10/31/2012 (N)........................... 1,169 4,801 Targa Resources, Inc., 7.61%, 10/31/2012 (N)........................... 4,823 2,000 Texas Petrochemicals LP, 7.89%, 06/27/2013 (N)........................... 2,013 5,985 Texas Petrochemicals LP, 7.90%, 06/27/2013 (N)........................... 6,022 ---------- 42,075 ---------- FINANCE -- 6.5% 1,900 Ameritrade Holding Corp., 6.55%, 12/31/2011 (N)........................... 1,900 5,330 Ameritrade Holding Corp., 6.82%, 12/31/2011 (N)........................... 5,326 8,000 Ashtead Group plc, 7.14%, 08/21/2011 (N)........................... 7,993
PRINCIPAL MARKET AMOUNT VALUE (W) ----------- ---------- FINANCE -- (CONTINUED) $ 9,634 Avis Budget Car Rental LLC, 6.64%, 04/19/2012 (N)........................... $ 9,587 4,000 BNY Convergex Group LLC & EZE Castle Software, 8.38%, 08/30/2013 (N)........................... 4,001 1,000 BNY Convergex Group LLC & EZE Castle Software, 12.13%, 08/30/2013 (N).......................... 1,003 3,980 Buckeye Check Cashing, Inc., 8.11%, 05/01/2012 (N)........................... 3,975 7,814 Capital Automotive L.P., 7.07%, 12/20/2010 (N)........................... 7,838 5,500 Conseco, Inc., 7.32%, 10/04/2013 (N)........................... 5,505 3,500 Dollar Financial Corp., 8.12%, 10/30/2012 (AA).......................... 3,509 3,500 FSB Holdings, Inc., 7.84%, 09/29/2013 (N)........................... 3,518 500 FSB Holdings, Inc., 11.13%, 03/29/2014 (N).......................... 503 21,500 General Growth Properties, 6.59%, 02/24/2010 (N)(Q)........................ 21,337 683 Ginn Club and Resorts, 8.37%, 06/07/2013 (N)........................... 608 314 Ginn-LA CS Borrower LLC & Ginn-LA Conduit Lender, 8.37%, 06/07/2013 (N)........................... 267 4,975 Golden Gate National, 8.08%, 03/14/2011 (N)........................... 5,012 556 Hertz Corp., 7.60%, 12/21/2012 (N)........................... 560 4,414 Hertz Corp., 7.61%, 12/21/2012 (N)........................... 4,445 723 Lion Gables Realty L.P., 7.07%, 03/30/2007 (N)........................... 723 15,000 LNR Properties Corp., 8.17%, 06/29/2011 (N)........................... 15,030 6,000 LNR Properties Corp., 8.20%, 06/29/2009 (N)........................... 6,000 2,494 Mattamy Funding Partnership, 7.69%, 04/11/2013 (N)........................... 2,481 2,162 Nasdaq Stock Market, Inc., 7.06%, 05/22/2012 (N)........................... 2,164 3,730 Nasdaq Stock Market, Inc., 7.07%, 05/22/2012 (N)........................... 3,731 4,078 Newkirk Master L.P., NMLP, 7.04%, 08/10/2012 (N)........................... 4,072 3,184 Newkirk Master L.P., T-Two, 7.04%, 08/10/2012 (N)........................... 3,180 1,990 November Land Investors LLC, 8.12%, 05/01/2011 (N)........................... 1,910 2,500 November Land Investors LLC, 12.23%, 05/09/2012 (N).......................... 2,400 5,000 Rent-A-Center, Inc., 7.12%, 10/26/2012 (AA)(Q)....................... 5,011
The accompanying notes are an integral part of these financial statements. 137 THE HARTFORD FLOATING RATE FUND SCHEDULE OF INVESTMENTS -- (CONTINUED) OCTOBER 31, 2006 (000'S OMITTED) --------------------------------------------------------------------------------
PRINCIPAL MARKET AMOUNT VALUE (W) ----------- ---------- SENIOR FLOATING RATE INTERESTS NON-INVESTMENT GRADE (V) -- (continued) FINANCE -- (CONTINUED) $ 7,940 Sedgwick CMS Holdings, Inc., 7.61%, 01/31/2013 (N)........................... $ 7,940 5,000 TE/TOUSA Senior, LLC, 8.21%, 08/01/2012 (N)........................... 3,825 1,347 United Rentals, Inc., 7.27%, 02/14/2011 (N)........................... 1,349 2,978 United Rentals, Inc., 7.28%, 02/14/2011 (N)........................... 2,988 11,220 Vanguard Car Rental USA Holdings, Inc., 8.35%, 06/08/2013 (N)........................... 11,293 ---------- 160,984 ---------- HEALTH CARE -- 9.7% 5,408 AGA Medical Corp., 7.72%, 04/26/2013 (N)........................... 5,405 975 Alliance Imaging, Inc., 7.94%, 12/29/2011 (N)........................... 976 8,467 Ameripath, Inc., 7.37%, 10/31/2013 (N)........................... 8,470 986 Center for Diagnostic Imaging, 9.30%, 12/31/2010 (N)........................... 942 5,980 Community Health Systems, 7.14%, 08/19/2011 (N)........................... 5,975 2,443 Concerntra, 7.59%, 09/30/2011 (N)........................... 2,453 7,631 DJ Orthopedics LLC, 6.87%, 04/07/2013 (N)........................... 7,608 3,000 Encore Medical Finance LLC, 7.87%, 10/30/2013 (AA)(Q)....................... 3,004 31,362 Fresenius Medical Care AG, 6.76%, 03/23/2012 (N)........................... 31,116 6,481 Hanger Orthopedic Group, 7.84%, 05/25/2013 (N)(Q)........................ 6,503 8,000 HCA, Inc., 9.37%, 09/15/2007 (AA)(Q)....................... 7,920 5,714 Healthcare Partners LLC, 7.37%, 10/20/2013 (AA).......................... 5,732 20,948 Healthsouth Corp., 8.59%, 03/07/2013 (N)........................... 21,021 16,740 Lifepoint Hospitals, Inc., 6.94%, 04/15/2012 (N)(Q)........................ 16,666 8,629 Multiplan Corp., 7.59%, 04/13/2013 (N)........................... 8,615 3,000 Multiplan Corp., 7.85%, 04/12/2013 (N)........................... 2,993 115 National Mentor, 7.84%, 06/27/2013 (N)........................... 115 1,880 National Mentor, 7.87%, 06/27/2013 (N)........................... 1,883 9,975 National Renal Institutes, Inc., 7.55%, 03/31/2013 (N)........................... 9,969 10,500 Orthofix Holdings, Inc., 7.12%, 09/22/2013 (N)........................... 10,507
PRINCIPAL MARKET AMOUNT VALUE (W) ----------- ---------- HEALTH CARE -- (CONTINUED) $ 8,970 Quintiles Transnational Corp., 7.37%, 03/31/2013 (N)(Q)........................ $ 8,966 3,961 Renal Advantage, Inc., 7.84%, 10/05/2012 (N)........................... 3,986 11,913 Select Medical Corp., 7.25%, 02/24/2012 (N)(Q)........................ 11,685 1,481 Skilled Healthcare Group, Inc., 8.07%, 06/15/2012 (N)........................... 1,489 15,900 Spanish Broadcasting System, Inc., 7.12%, 06/10/2012 (N)........................... 15,880 2,000 Triumph Healthcare, 8.48%, 07/28/2013 (N)........................... 2,006 16,389 Vanguard Health Holdings Co. II LLC, 7.83%, 09/23/2011 (N)........................... 16,420 6,352 Ventiv Health, Inc., 6.84%, 10/05/2011 (N)........................... 6,312 1,266 Warner Chilcott Corp., 7.81%, 01/18/2012 (N)........................... 1,269 2,902 Warner Chilcott Corp., 7.83%, 01/18/2012 (N)........................... 2,902 6,598 Warner Chilcott Corp., 7.89%, 01/18/2012 (N)........................... 6,613 161 Warner Chilcott Corp-Dovobe, 7.80%, 07/18/2012 (N)........................... 161 3,000 Waterpik Technologies, Inc., 11.89%, 10/12/2013 (N).......................... 3,030 2,494 Youth & Family Centered Services, Inc., 8.30%, 07/10/2013 (N)........................... 2,494 ---------- 241,086 ---------- SERVICES -- 23.7% 2,990 24 Hour Fitness Worldwide, Inc., 7.82%, 06/08/2012 (N)........................... 3,011 4,500 Acosta, Inc., 8.08%, 12/06/2012 (N)........................... 4,539 7,500 Acxiom Corp., 7.18%, 09/13/2012 (N)........................... 7,533 10,911 Advantage Sales & Marketing, Inc., 7.45%, 03/31/2013 (N)........................... 10,861 3,970 Affiliated Computer Services, Inc., 7.39%, 03/20/2013 (N)........................... 3,976 8,978 Affiliated Computer Services, Inc., 7.40%, 03/20/2013 (N)........................... 8,989 16,013 Affinion Group, 8.15%, 10/07/2012 (N)(Q)........................ 16,066 3,000 Alixpartners LLP, 7.88%, 10/11/2013 (N)........................... 3,015 1,990 Alliance, 6.88%, 12/20/2011 (N)........................... 1,987 9,384 Allied Waste, 7.05%, 01/15/2012 (N)........................... 9,382 22,111 Allied Waste, 7.14%, 01/15/2012 (N)........................... 22,100 5,960 AMC Entertainment, Inc., 7.39%, 01/26/2013 (N)........................... 6,003
The accompanying notes are an integral part of these financial statements. 138 --------------------------------------------------------------------------------
PRINCIPAL MARKET AMOUNT VALUE (W) ----------- ---------- SENIOR FLOATING RATE INTERESTS NON-INVESTMENT GRADE (V) -- (continued) SERVICES -- (CONTINUED) $ 4,964 American Gaming Systems, 10.12%, 06/21/2013 (H)(N)....................... $ 4,964 1,244 Black Press, Ltd., 7.50%, 08/02/2013 (N)........................... 1,252 756 Black Press, Ltd., 7.71%, 08/02/2013 (N)........................... 760 19,000 Bresnan Communications LLC, 7.16%, 09/29/2013 (N)........................... 18,962 7,733 Carmike Cinemas, Inc., 8.60%, 05/19/2012 (N)........................... 7,788 2,181 Carmike Cinemas, Inc., 8.62%, 09/29/2011 (N)........................... 2,203 2,000 Casella Waste Systems, Inc., 7.46%, 04/28/2010 (N)........................... 2,003 3,466 CCM Merger, Inc., 7.34%, 08/01/2012 (N)........................... 3,462 12,500 Cebridge Communications LLC, 7.63%, 11/05/2013 (N)........................... 12,478 7,000 Cebridge Communications LLC, 10.19%, 05/05/2014 (N)(Q)....................... 6,958 19,950 Cedar Fair L.P., 7.86%, 07/21/2013 (N)........................... 20,156 6,988 Cedar Fair L.P., 9.71%, 07/21/2013 (N)........................... 7,009 3,500 Cinemark, Inc., 7.32%, 10/04/2013 (N)........................... 3,522 15,164 CMP Susquehanna Corp., 7.40%, 03/24/2013 (N)........................... 15,193 5,482 Coinmach Corp., 7.85%, 12/16/2010 (N)........................... 5,521 2,000 CSC Holdings, Inc., 6.64%, 02/24/2012 (N)........................... 1,992 22,932 CSC Holdings, Inc., 7.16%, 03/24/2013 (N)(Q)........................ 22,910 16,958 Cumulus Media, Inc., 7.45%, 06/07/2013 (N)........................... 17,028 1,869 Dex Media West LLC, 6.88%, 03/09/2010 (N)........................... 1,860 408 Dex Media West LLC, 6.91%, 03/09/2010 (N)........................... 406 497 Dyncorp International LLC, 8.00%, 02/11/2011 (N)........................... 499 4,000 Emmis Operating Company, 7.36%, 10/30/2013 (AA)(Q)....................... 4,009 63 Energy Solutions, LLC, 7.57%, 06/07/2013 (N)........................... 63 1,321 Energy Solutions, LLC, Term Loan B, 7.76%, 06/07/2013 (N)........................... 1,331 599 Energy Solutions, LLC, Term Loan B2, 7.76%, 06/07/2013 (N)........................... 604 3,148 F & W Publications, Inc., 8.44%, 08/05/2012 (N)........................... 3,156 3,250 Fender Musical Instrument Group, 11.25%, 09/30/2012 (N).......................... 3,274
PRINCIPAL MARKET AMOUNT VALUE (W) ----------- ---------- SERVICES -- (CONTINUED) $ 1,798 Fidelity National Information Solutions, Inc., 6.56%, 03/09/2013 (N)........................... $ 1,790 6,424 Fidelity National Information Services, Inc., 7.06%, 03/09/2013 (N)........................... 6,436 2,000 Frontiervision Operating Partners, L.P., 9.77%, 12/19/2006 (F)(N)........................ 1,982 19,468 Gatehouse Media Operating, Inc., 7.57%, 12/05/2013 (N)........................... 19,468 3,479 Gray Television, Inc., 6.87%, 11/22/2012 (N)........................... 3,472 496 Gray Television, Inc., 6.88%, 05/22/2013 (N)........................... 496 4,000 Greektown Holdings LLC, 7.86%, 12/01/2012 (N)........................... 4,025 5,500 Hallmark Entertainment LLC, 8.32%, 12/31/2011 (N)........................... 5,493 1,704 Hilton Hotels Corp., 6.72%, 02/14/2013 (N)........................... 1,703 990 Hit Entertainment, Inc., 7.62%, 08/26/2012 (N)........................... 994 3,755 Isle of Capri Black Hawk LLC, 7.36%, 10/24/2011 (N)........................... 3,755 7,357 Lake at Las Vegas Joint Venture LLC, 8.23%, 02/01/2010 (N)........................... 7,092 7,219 LBI Media, Inc., 6.77%, 05/01/2012 (N)........................... 7,110 3,000 Mediassets, Inc., 7.82%, 10/05/2013 (N)........................... 3,004 3,990 Medianews Groups, Inc., 7.07%, 08/02/2013 (N)........................... 3,990 8,666 MGM Holdings II, Inc., 8.59%, 04/08/2012 (N)........................... 8,561 1,463 MGM Holdings II, Inc., 8.69%, 04/08/2011 (N)........................... 1,445 2,481 Montecito Broadcast Group LLC, 7.82%, 01/25/2013 (N)........................... 2,492 3,000 New Publications, Inc., 12.58%, 02/05/2013 (N).......................... 3,023 3,000 Newspaper Holdings, Inc., 6.64%, 08/24/2012 (N)........................... 2,978 4,468 Opbiz LLC, 8.34%, 08/31/2010 (N)........................... 4,357 8 Opbiz LLC, 9.30%, 08/31/2010 (N)(Q)........................ 8 1,980 PBI Media, Inc., 7.57%, 09/30/2012 (N)........................... 1,974 3,000 PBI Media, Inc., 11.31%, 09/30/2013 (N).......................... 3,004 1,980 Penn National Gaming, Inc., 7.13%, 07/05/2012 (N)........................... 1,988 2,213 Per-Se Technologies, Inc., 7.57%, 01/05/2013 (N)........................... 2,222 1,915 Persona Communications Corp., 6.07%, 10/11/2013 (N)(Q)........................ 1,925
The accompanying notes are an integral part of these financial statements. 139 THE HARTFORD FLOATING RATE FUND SCHEDULE OF INVESTMENTS -- (CONTINUED) OCTOBER 31, 2006 (000'S OMITTED) --------------------------------------------------------------------------------
PRINCIPAL MARKET AMOUNT VALUE (W) ----------- ---------- SENIOR FLOATING RATE INTERESTS NON-INVESTMENT GRADE (V) -- (continued) SERVICES -- (CONTINUED) $ 3,085 Persona Communications Corp., 8.12%, 10/11/2013 (N)........................... $ 3,100 3,500 Persona Communications Corp., 11.37%, 04/11/2014 (N).......................... 3,500 18,643 Pinnacle Foods, 7.36%, 11/25/2010 (N)........................... 18,661 2,978 Quebecor Media, Inc., 7.37%, 01/17/2013 (N)........................... 2,991 7,863 Raycom TV Broadcasting, Inc., 6.88%, 07/27/2013 (N)(Q)........................ 7,804 20,937 Regal Cinemas, Inc., 7.11%, 11/10/2010 (N)........................... 20,890 16,469 Sensata Technologies, 7.14%, 04/21/2013 (N)........................... 16,358 1,241 SFX Entertainment, Inc., 7.62%, 06/21/2013 (N)........................... 1,238 1,000 Southern Graphic Systems, 7.87%, 12/30/2011 (AA)(Q)....................... 1,004 1,985 Southern Graphic Systems, 8.06%, 12/30/2011 (N)........................... 1,992 3,000 Southwest Sports Group LLC, 7.82%, 12/22/2010 (N)........................... 2,991 9,902 SunGard Data Systems, Inc., 7.94%, 08/08/2012 (N)........................... 9,982 6,485 Time Warner Telecom Holdings, Inc., 7.57%, 07/01/2013 (AA)(Q)....................... 6,515 7,951 U.S. Investigations Services, 7.84%, 10/14/2012 (N)........................... 7,981 989 U.S. Investigations Services, Term Loan C, 7.89%, 10/14/2012 (N)........................... 992 1,000 U.S. Investigations Services, Term Loan D, 7.89%, 10/14/2012 (N)........................... 1,003 3,000 United Site Services, Inc., 9.71%, 06/29/2013 (N)........................... 2,970 11,000 UPC Financing Partnership, 7.64%, 03/31/2013 (N)........................... 10,999 11,000 UPC Financing Partnership, 7.64%, 12/31/2013 (N)........................... 10,993 2,000 Valley Crest Cos., 7.82%, 10/04/2013 (N)........................... 2,018 8,291 Venetian Casino Resort LLC, Term B Funded, 7.13%, 06/15/2011 (N)........................... 8,302 1,709 Venetian Casino Resort LLC, Term Loan B, 7.13%, 06/15/2011 (N)........................... 1,708 2,333 Venetian Macau, Ltd., 8.12%, 04/06/2012 (AA)(Q)....................... 2,328 4,667 Venetian Macau, Ltd., 8.12%, 04/06/2013 (N)........................... 4,693 3,000 Verso Paper Holdings LLC, 7.25%, 07/28/2013 (N)........................... 3,000 10,000 VTR Global Communications S.A., 8.37%, 09/20/2014 (H)(N)........................ 9,875
PRINCIPAL MARKET AMOUNT VALUE (W) ----------- ---------- SERVICES -- (CONTINUED) $ 2,500 Washington Country Casino Resort LLC, 9.38%, 11/07/2011 (H)(N)........................ $ 2,500 2,000 Wembley, Inc., 7.91%, 07/18/2011 (N)........................... 2,019 4,500 Wembley, Inc., 9.67%, 08/15/2012 N (N)......................... 4,562 4,000 Wenner Media LLC, 7.07%, 09/29/2013 (N)........................... 4,020 13,500 West Corp., 8.12%, 10/23/2013 (AA)(Q)....................... 13,500 12,125 WideOpenWest Finance LLC, 7.66%, 05/01/2013 (N)........................... 12,118 3,000 WideOpenWest Finance LLC, 10.23%, 05/01/2014 (N).......................... 3,022 5,000 Yell Group plc, 7.32%, 02/10/2013 (N)........................... 5,021 2,815 Yonkers Racing Corp., 8.80%, 08/12/2011 (N)........................... 2,845 1,685 Yonkers Racing Corp., 8.82%, 08/12/2011 (N)........................... 1,703 ---------- 586,810 ---------- TECHNOLOGY -- 13.0% 10,500 Advanced Micro Devices, Inc., 7.57%, 10/24/2013 (N)........................... 10,542 1,500 Alaska Communication Systems Holdings, Inc., 7.08%, 02/01/2012 (N)........................... 1,500 17,320 Alaska Communication Systems Holdings, Inc., 7.11%, 02/01/2012 (N)........................... 17,316 1,500 American Cellular Corp., Delayed Draw Term Loan, 7.63%, 08/08/2012 (AA)(Q)....................... 1,496 1,500 American Cellular Corp., Term Loan, 7.63%, 08/08/2012 (N)........................... 1,504 6,126 American Reprographics Co. LLC, 7.14%, 12/20/2012 (N)........................... 6,141 6,000 Aspect Software, Inc., 8.41%, 09/22/2012 (N)........................... 6,017 6,814 Caribe Information Investment, Inc., 7.60%, 03/29/2013 (N)........................... 6,818 3,000 CCC Information Services Group, Inc., 7.87%, 02/10/2013 (N)........................... 3,011 2,866 Cellnet Data Systems, Inc., 8.29%, 04/26/2012 (N)........................... 2,880 24,146 Charter Communications Operating LLC, 7.97%, 04/28/2013 (N)........................... 24,315 5,000 Choice One, 9.38%, 06/27/2012 (N)........................... 5,041 11,161 Cincinnati Bell, Inc., 6.92%, 08/31/2012 (N)........................... 11,138 11,970 Cinram International, 7.22%, 05/05/2010 (N)........................... 11,883 5,985 Cricket Communications, 8.12%, 06/15/2013 (N)........................... 6,021
The accompanying notes are an integral part of these financial statements. 140 --------------------------------------------------------------------------------
PRINCIPAL MARKET AMOUNT VALUE (W) ----------- ---------- SENIOR FLOATING RATE INTERESTS NON-INVESTMENT GRADE (V) -- (continued) TECHNOLOGY -- (CONTINUED) $ 13,965 Crown Castle Operating Co., 7.65%, 06/01/2014 (N)........................... $ 14,012 2,455 Davita, Inc., 7.33%, 10/05/2011 (N)........................... 2,453 4,786 Davita, Inc., 7.40%, 07/07/2012 (N)........................... 4,808 1,995 Electrical Components International Holdings Co., 7.87%, 05/31/2013 (N)........................... 2,000 11,000 FairPoint Communications, Inc., 7.12%, 02/08/2012 (N)(Q)........................ 10,979 1,029 Infor Global Solutions, Term Loan, 9.12%, 07/28/2012 (N)........................... 1,036 1,971 Infor Global Solutions, Term Loan, 9.12%, 07/28/2012 (N)........................... 1,985 3,500 Intesat Ltd., 7.62%, 07/03/2012 (N)........................... 3,519 3,000 IPC Acquisition Corp., 7.84%, 09/22/2013 (N)(Q)........................ 3,017 13,000 Level 3 Communications, Inc., 8.37%, 12/01/2011 (N)........................... 13,130 990 Madison River Capital LLC, 7.62%, 07/29/2012 (N)........................... 994 8,496 Mediacom Broadband, 7.07%, 01/31/2015 (N)........................... 8,475 2,500 Mediacom Broadband, 7.38%, 01/31/2015 (N)........................... 2,477 2,000 Mediacom LLC, 6.71%, 09/30/2012 (N)........................... 1,959 9,000 Mediacom LLC, 7.23%, 01/31/2015 (N)........................... 8,990 6,000 National Dover LLC, 7.32%, 09/03/2012 (N)........................... 6,019 22,934 Ntelos, Inc., 7.56%, 08/24/2011 (N)(Q)........................ 23,005 2,000 Olympus Cable Holding LLC, 10.37%, 09/30/2010 (F)(N)....................... 1,948 12,360 Panamsat Corp., 7.85%, 01/03/2014 (N)........................... 12,459 3,980 Quality Home Brands Holdings LLC, 8.14%, 12/14/2012 (N)........................... 3,973 14,421 R.H. Donnelley, Inc., 6.81%, 06/30/2011 (N)(Q)........................ 14,367 12,214 R.H. Donnelley, Inc., 6.91%, 06/30/2011 (N)(Q)........................ 12,169 10,485 RCN Corp., 7.28%, 05/30/2013 (N)........................... 10,472 5,000 Reynolds & Reynolds Co., 7.82%, 10/24/2012 (AA).......................... 5,031 11,500 Sanmina-Sci Corp., 7.86%, 01/31/2008 (N)(Q)........................ 11,522 7,931 Spectrum Brands, Inc., 8.35%, 02/06/2012 (N)........................... 7,949
PRINCIPAL MARKET AMOUNT VALUE (W) ----------- ---------- TECHNOLOGY -- (CONTINUED) $ 3,500 VeriFone Holdings, Inc., 7.12%, 10/30/2013 (AA)(Q)....................... $ 3,498 16,000 Windstream Corp., 7.12%, 07/17/2013 (N)........................... 16,077 ---------- 323,946 ---------- TRANSPORTATION -- 2.3% 7,500 Delta Air Lines, Inc., 9.90%, 03/16/2008 (F)(N)........................ 7,637 8,017 Kansas City Southern Railway Co., 7.11%, 04/28/2013 (N)........................... 8,035 2,781 Kenan Advantage Group, 8.34%, 12/16/2011 (N)........................... 2,801 2,993 Laidlaw International, Inc., 7.07%, 07/31/2013 (N)........................... 3,015 998 Laidlaw International, Inc., 7.12%, 07/31/2013 (N)........................... 1,005 14,500 Northwest Airlines, 7.89%, 08/21/2011 (F)(N)........................ 14,527 800 Railamerica, 7.44%, 09/29/2011 (N)........................... 808 3,752 Sirva Worldwide, Inc., 11.68%, 12/01/2010 (N).......................... 3,494 10,000 U.S. Airways Group, Inc., 8.84%, 03/31/2011 (N)........................... 10,071 684 United Air Lines, Inc., 9.13%, 02/01/2012 (N)........................... 695 4,788 United Air Lines, Inc., 9.25%, 02/01/2012 (N)........................... 4,864 ---------- 56,952 ---------- UTILITIES -- 3.9% 296 Astoria Generating Co. Acquisitions LLC, 7.32%, 02/23/2012 (N)........................... 298 1,503 Astoria Generating Co. Acquisitions LLC, 7.39%, 02/23/2012 (N)........................... 1,510 7,500 Astoria Generating Co. Acquisitions LLC, 9.05%, 08/23/2013 (N)........................... 7,596 1,987 Calpine Corp., 7.55%, 12/22/2007 (F)(N)........................ 1,995 2,649 Calpine Corp., 9.37%, 12/22/2007 (F)(N)........................ 2,688 131 Ceh La Paloma Merger Co. LLC, 7.07%, 08/16/2012 (N)........................... 130 60 Ceh La Paloma Merger Co. LLC, Term Loan, 7.12%, 08/16/2012 (N)........................... 60 753 Ceh La Paloma Merger Co. LLC, Term Loan B, 7.12%, 08/16/2012 (N)........................... 749 1,000 Ceh La Paloma Merger Co. LLC, 8.73%, 08/16/2013 (N)........................... 1,009 4,000 Dynegy Holdings, Inc., 7.07%, 01/31/2012 (N)........................... 4,000 5,000 Dynegy Holdings, Inc., 7.15%, 01/31/2012 (N)........................... 4,994
The accompanying notes are an integral part of these financial statements. 141 THE HARTFORD FLOATING RATE FUND SCHEDULE OF INVESTMENTS -- (CONTINUED) OCTOBER 31, 2006 (000'S OMITTED) --------------------------------------------------------------------------------
PRINCIPAL MARKET AMOUNT VALUE (W) ----------- ---------- SENIOR FLOATING RATE INTERESTS NON-INVESTMENT GRADE (V) -- (continued) UTILITIES -- (CONTINUED) $ 5,000 El Paso Corp., 7.22%, 11/23/2009 (N)........................... $ 5,026 1,485 Epco Holdings, Inc., 7.37%, 08/15/2010 (N)........................... 1,494 119 LSP General Finance Co. LLC, Term Loan, 7.12%, 04/13/2013 (N)........................... 119 2,804 LSP General Finance Co. LLC, First Lien Term Loan, 7.12%, 04/13/2013 (N)........................... 2,799 23,852 Mirant North America LLC, 7.05%, 01/03/2013 (N)........................... 23,799 12,892 NRG Energy, Inc., 7.32%, 01/27/2013 (N)........................... 12,944 10,977 NRG Energy, Inc., 7.35%, 01/27/2013 (N)(Q)........................ 11,034 2,871 Pike Electric, Inc., 6.86%, 07/01/2012 (N)........................... 2,867 1,891 Pike Electric, Inc., 6.86%, 12/10/2012 (N)........................... 1,889 1,992 Reliant Energy, Inc., 7.63%, 04/30/2010 (N)........................... 1,992 6,519 Reliant Energy, Inc., 7.69%, 04/30/2010 (N)........................... 6,512 1,445 Semcrude L.P., 7.50%, 03/01/2011 (N)........................... 1,449 ---------- 96,953 ---------- Total senior floating rate interests non- investment grade (cost $2,255,280)............................... $2,251,732 ---------- SENIOR FLOATING RATE INTERESTS INVESTMENT GRADE (V) -- 0.8% FINANCE -- 0.8% $ 20,500 Residential Capital Corp., 6.59%, 07/28/2008 (N)........................... $ 20,372 ---------- Total senior floating rate interests investment grade (cost $20,435).................................. $ 20,372 ---------- Total long-term investments (cost $2,488,272)..... $2,484,002 ---------- SHORT-TERM INVESTMENTS -- 3.4% FINANCE -- 3.4% $ 20,000 Bank of America Corp., 5.24%, 11/07/2006............................... $ 19,980 20,000 Barton Capital Corp., 5.26%, 11/03/2006............................... 19,991 20,000 Bear Stearns Co., 5.25%, 11/15/2006............................... 19,956
PRINCIPAL MARKET AMOUNT VALUE (W) ----------- ---------- FINANCE -- (CONTINUED) $ 20,000 Deutsche Bank, 5.25%, 11/13/2006............................... $ 19,962 4,232 State Street Bank Money Market Fund............... 4,232 ---------- Total short-term investments (cost $84,121).................................. $ 84,121 ---------- Total investments in securities (cost $2,572,393) (C)........................... $2,568,123 ==========
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 1.68% of total net assets at October 31, 2006. (B)All principal amounts are in U.S. dollars unless otherwise indicated. EUR -- EURO
(C)At October 31, 2006, the cost of securities for federal income tax purposes was $2,572,409 and the aggregate gross unrealized appreciation and depreciation based on that cost were: Unrealized appreciation......................... $ 4,785 Unrealized depreciation......................... (9,071) ------- Net unrealized depreciation..................... $(4,286) =======
(F)The company is in bankruptcy. The bank loan or bond held by the fund is not in default. (H)The following securities are considered illiquid. Illiquid securities are often purchased in private placement transactions, are not registered under the Securities Act of 1933 and may have contractual restrictions on resale. A security may also be considered illiquid if the security lacks a readily available market or if its valuation has not changed for a certain period of time.
PERIOD PRINCIPAL COST ACQUIRED AMOUNT SECURITY BASIS -------- --------- -------- ------- 06/2006 4,964 American Gaming Systems $ 4,964 11/2005 - 07/2006 3,000 Calpine Generating Co. LLC 3,031 9/2006 2,500 Service Corp. International Series A- RegD 2,500 9/2006 8,000 Service Corp. International Series B- RegD 8,000 10/2005 2,500 Washington Country Casino Resort LLC 2,500 09/2006 10,000 VTR Global Communications, S.A. 10,000
The aggregate value of these securities at October 31, 2006 was $30,922, which represents 1.20% of total net assets. The accompanying notes are an integral part of these financial statements. 142 -------------------------------------------------------------------------------- (I) 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 qualified institutional buyers. 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, 2006, was $22,230, which represents 0.89% of total net assets. (L) Variable rate securities; the rate reported is the coupon rate in effect at October 31, 2006. (N) The interest rate disclosed for these securities represents the effective yield as of October 31, 2006. (AA) The interest rate disclosed for these securities represents an estimated yield as of October 31, 2006. (Q) The cost of securities purchased on a when-issued or delayed delivery basis at October 31, 2006 was $157,178. (V) Senior loans in which the Fund invests generally pay interest at rates which are periodically adjusted by reference to a base short-term, floating lending rate plus a premium. These base lending rates are generally (i) the lending rate offered by one or more major European banks, such as the London Inter-Bank Offered Rate (LIBOR), (ii) the prime rate offered by one or more major United States Banks, or (iii) the bank's certificate of deposit rate. Senior floating rate interests often require prepayments from excess cash flows or permit the borrower to repay at its election. The rate at which the borrower repays cannot be predicted with accuracy. As a result, the actual remaining maturity may be substantially less than the stated maturities shown. The interest rate indicated is the rate in effect at October 31, 2006. (W) See Note 2b of accompanying Notes to Financial Statements regarding valuation of securities. The accompanying notes are an integral part of these financial statements. 143 THE HARTFORD FOCUS FUND SCHEDULE OF INVESTMENTS OCTOBER 31, 2006 (000'S OMITTED) --------------------------------------------------------------------------------
MARKET SHARES VALUE (W) --------- --------- COMMON STOCK -- 99.7% BASIC MATERIALS -- 4.6% 62 Companhia Vale do Rio Doce ADR.................... $ 1,570 36 Dow Chemical Co. ................................. 1,481 ------- 3,051 ------- CAPITAL GOODS -- 4.1% 17 Boeing Co. ....................................... 1,366 17 Deere & Co. ...................................... 1,405 ------- 2,771 ------- CONSUMER CYCLICAL -- 4.9% 56 D.R. Horton, Inc. ................................ 1,321 17 Home Depot, Inc. ................................. 642 27 Wal-Mart Stores, Inc. ............................ 1,340 ------- 3,303 ------- CONSUMER STAPLES -- 4.2% 23 Clorox Co. ....................................... 1,485 56 Unilever N.V. NY Shares........................... 1,358 ------- 2,843 ------- ENERGY -- 4.3% 21 EnCana Corp. ..................................... 1,007 40 Halliburton Co. .................................. 1,294 24 Williams Cos., Inc. .............................. 574 ------- 2,875 ------- FINANCE -- 20.2% 67 Citigroup, Inc. .................................. 3,334 47 Countrywide Financial Corp. ...................... 1,773 60 E*Trade Financial Corp. (D)....................... 1,385 14 Muenchener Rueckversicherungs-Gesellschaft AG (A)............................................. 2,241 48 UBS AG............................................ 2,878 38 UnitedHealth Group, Inc. ......................... 1,863 ------- 13,474 ------- HEALTH CARE -- 14.5% 17 Amgen, Inc. (D)................................... 1,298 95 Boston Scientific Corp. (D)....................... 1,518 49 Bristol-Myers Squibb Co. ......................... 1,203 96 Elan Corp. plc ADR (D)............................ 1,390 42 Eli Lilly & Co. .................................. 2,347 45 Sanofi-Aventis S.A. ADR........................... 1,925 ------- 9,681 ------- SERVICES -- 9.5% 26 Accenture Ltd. Class A............................ 862 37 United Parcel Service, Inc. Class B............... 2,773 35 Viacom, Inc. Class B (D).......................... 1,360 118 XM Satellite Radio Holdings, Inc. Class A (D)..... 1,377 ------- 6,372 ------- TECHNOLOGY -- 33.4% 31 Adobe Systems, Inc. (D)........................... 1,201 54 AT&T, Inc. ....................................... 1,853
MARKET SHARES VALUE (W) --------- --------- TECHNOLOGY -- (CONTINUED) 34 Broadcom Corp. Class A (D)........................ $ 1,023 80 Cisco Systems, Inc. (D)........................... 1,938 183 EMC Corp. (D)..................................... 2,236 94 General Electric Co. ............................. 3,304 37 Marvell Technology Group Ltd. (D)................. 669 56 Maxim Integrated Products, Inc. .................. 1,690 67 Medtronic, Inc. .................................. 3,276 65 Microsoft Corp. .................................. 1,872 96 Sprint Nextel Corp. .............................. 1,794 58 Yahoo!, Inc. (D).................................. 1,517 ------- 22,373 ------- Total common stock (cost $65,793).................................. $66,743 ------- PRINCIPAL AMOUNT --------- SHORT-TERM INVESTMENTS -- 0.7% REPURCHASE AGREEMENTS -- 0.7% $ 88 Bank of America Securities TriParty Joint Repurchase Agreement, 5.31%, 11/01/2006............................... $ 88 52 Credit Suisse Securities TriParty Joint Repurchase Agreement, 5.32%, 11/01/2006............................... 52 2 Deutsche Bank Securities Joint Repurchase Agreement, 5.25%, 11/01/2006............................... 2 42 Deutsche Bank Securities TriParty Joint Repurchase Agreement, 5.30%, 11/01/2006............................... 42 88 Deutsche Bank Securities TriParty Joint Repurchase Agreement, 5.32%, 11/01/2006............................... 88 48 Morgan Stanley & Co., Inc. TriParty Joint Repurchase Agreement, 5.29%, 11/01/2006............................... 48 118 UBS Securities TriParty Joint Repurchase Agreement, 5.31%, 11/01/2006............................... 118 ------- Total short-term investments (cost $438)..................................... $ 438 ------- Total investments in securities (cost $66,231) (C).............................. $67,181 =======
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 18.48% of total net assets at October 31, 2006. (A)The aggregate value of securities valued in good faith at fair value by, or under the direction of, the Funds' Board of Directors at October 31, 2006, was $2,241, which represents 3.35% of total net assets. The accompanying notes are an integral part of these financial statements. 144 -------------------------------------------------------------------------------- (C)At October 31, 2006, the cost of securities for federal income tax purposes was $66,697 and the aggregate gross unrealized appreciation and depreciation based on that cost were: Unrealized appreciation......................... $ 3,490 Unrealized depreciation......................... (3,006) ------- Net unrealized appreciation..................... $ 484 =======
(D)Currently non-income producing. (W)See Note 2b of accompanying Notes to Financial Statements regarding valuation of securities. The accompanying notes are an integral part of these financial statements. 145 THE HARTFORD GLOBAL COMMUNICATIONS FUND SCHEDULE OF INVESTMENTS OCTOBER 31, 2006 (000'S OMITTED) --------------------------------------------------------------------------------
MARKET SHARES VALUE (W) --------- --------- COMMON STOCK -- 93.3% BRAZIL -- 5.0% 56 Brasil Telecom S.A. ADR (G)....................... $ 682 48 Tele Norte Leste Participacoes S.A. ADR (G)....... 689 ------- 1,371 ------- CHINA -- 1.8% 1,330 China Telecom Corp. Ltd. (A)...................... 501 ------- EGYPT -- 1.0% 10 Mobinil-Egyptian Mobile Service................... 272 ------- FRANCE -- 6.1% 65 France Telecom S.A. (A)........................... 1,683 ------- GERMANY -- 1.7% 26 Deutsche Telekom AG (A)(G)........................ 459 ------- ITALY -- 0.3% 35 Telecom Italia S.p.A. (A)......................... 90 ------- LUXEMBOURG -- 3.5% 49 Citigroup Global Certificate -- Bharti Televentures (D) ............................... 572 8 Millicom International Cellular S.A. (D).......... 389 ------- 961 ------- MOROCCO -- 0.1% 1 Maroc Telecom (A)(G).............................. 12 ------- NORWAY -- 4.1% 72 Telenor ASA (A)................................... 1,134 ------- PHILIPPINES -- 5.9% 34 Philippine Long Distance Telephone Co. (A)........ 1,616 ------- RUSSIA -- 15.6% 39 AFK Sistema GDR................................... 1,020 49 Mobile Telesystems OJSC ADR....................... 2,173 17 Vimpel-Communications ADR (D)..................... 1,115 ------- 4,308 ------- SOUTH AFRICA -- 6.9% 113 MTN Group Ltd. (A)................................ 1,028 12 Telkom South Africa Ltd. ADR...................... 877 ------- 1,905 ------- SOUTH KOREA -- 0.5% -- Samsung Electronics Co., Ltd. (A)................. 131 ------- SPAIN -- 4.0% 19 Telefonica S.A. ADR............................... 1,096 ------- TURKEY -- 6.0% 115 Turkcell Iletisim Hizmet ADR...................... 1,665 ------- UNITED STATES -- 30.8% 27 AT&T, Inc. ....................................... 911 26 Atlantic Tele-Network, Inc. ...................... 507 74 Dobson Communications Corp. (D)................... 572
MARKET SHARES VALUE (W) --------- --------- UNITED STATES -- (CONTINUED) 131 KongZhong Corp. ADR (D)(G)........................ $ 1,069 22 Leap Wireless International, Inc. (D)............. 1,209 79 Neustar, Inc. (D)................................. 2,294 50 Sprint Nextel Corp. .............................. 931 46 Syniverse Holdings, Inc. (D)...................... 671 46 Vonage Holdings Corp. (D)(G)...................... 318 ------- 8,482 ------- Total common stock (cost $23,752).................................. $25,686 ------- PREFERRED STOCKS -- 3.6% BRAZIL -- 3.6% 15 Telecomunicacoes de Sao Paulo S.A. (G)............ $ 362 29 Telemar Norte Leste S.A. ......................... 638 ------- Total preferred stocks (cost $1,006)................................... $ 1,000 ------- PRINCIPAL AMOUNT --------- SHORT-TERM INVESTMENTS -- 12.0% REPURCHASE AGREEMENTS -- 2.6% $ 142 Bank of America Securities TriParty Joint Repurchase Agreement, 5.31%, 11/01/2006............................... $ 142 84 Credit Suisse Securities TriParty Joint Repurchase Agreement, 5.32%, 11/01/2006............................... 84 3 Deutsche Bank Securities Joint Repurchase Agreement, 5.25%, 11/01/2006............................... 3 67 Deutsche Bank Securities TriParty Joint Repurchase Agreement, 5.30%, 11/01/2006............................... 67 140 Deutsche Bank Securities TriParty Joint Repurchase Agreement, 5.32%, 11/01/2006............................... 140 77 Morgan Stanley & Co., Inc. TriParty Joint Repurchase Agreement, 5.29%, 11/01/2006............................... 77 189 UBS Securities TriParty Joint Repurchase Agreement, 5.31%, 11/01/2006............................... 189 ------- 702 ------- SECURITIES PURCHASED WITH PROCEEDS FROM SECURITY LENDING -- 9.4% 2,591 BNY Institutional Cash Reserve Fund............... 2,591 ------- Total short-term investments (cost $3,293)................................... $ 3,293 ------- Total investments in securities (cost $28,051) (C).............................. $29,979 =======
The accompanying notes are an integral part of these financial statements. 146 -------------------------------------------------------------------------------- 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 66.13% of total net assets at October 31, 2006. (A)The aggregate value of securities valued in good faith at fair value by, or under the direction of, the Funds' Board of Directors at October 31, 2006, was $6,654, which represents 24.17% of total net assets. (C)At October 31, 2006, the cost of securities for federal income tax purposes was $28,240 and the aggregate gross unrealized appreciation and depreciation based on that cost were: Unrealized appreciation......................... $ 3,423 Unrealized depreciation......................... (1,684) ------- Net unrealized appreciation..................... $ 1,739 =======
(D)Currently non-income producing. (G)Security is partially on loan at October 31, 2006. (W)See Note 2b of accompanying Notes to Financial Statements regarding valuation of securities. DIVERSIFICATION BY INDUSTRY As of October 31, 2006
PERCENTAGE OF INDUSTRY NET ASSETS --------------------------------------------------------------- Communications Equipment Manufacturing 3.9% --------------------------------------------------------------- Other Telecommunications 27.7 --------------------------------------------------------------- Semiconductor, Electronic Component Manufacturing 0.5 --------------------------------------------------------------- Software Publishers 3.9 --------------------------------------------------------------- Telecommunication Resellers 0.0 --------------------------------------------------------------- Wired Telecommunications Carriers 23.2 --------------------------------------------------------------- Wireless Communications Services 5.1 --------------------------------------------------------------- Wireless Telecommunications Carriers 32.6 --------------------------------------------------------------- Short-Term Investments 12.0 --------------------------------------------------------------- Other Assets & Liabilities (8.9) --------------------------------------------------------------- TOTAL 100.0% ---------------------------------------------------------------
The accompanying notes are an integral part of these financial statements. 147 THE HARTFORD GLOBAL FINANCIAL SERVICES FUND SCHEDULE OF INVESTMENTS OCTOBER 31, 2006 (000'S OMITTED) --------------------------------------------------------------------------------
MARKET SHARES VALUE (W) --------- --------- COMMON STOCK -- 98.0% COMMERCIAL BANKING -- 4.5% 6 Canadian Imperial Bank of Commerce (G)............ $ 445 14 State Street Corp. ............................... 899 ------- 1,344 ------- DEPOSITORY CREDIT BANKING -- 22.3% 14 Banche Popolari Unite Scpa (A).................... 389 26 Bank of America Corp. ............................ 1,422 10 Canadian Western Bank............................. 363 25 Citigroup, Inc. .................................. 1,274 26 HSBC Holdings plc (A)............................. 486 10 PNC Financial Services Group, Inc. ............... 721 23 Shizuoka Bank Ltd. (A)(G)......................... 246 10 Signature Bank (D)................................ 303 22 Wachovia Corp. ................................... 1,198 7 Webster Financial Corp. .......................... 329 ------- 6,731 ------- INSURANCE CARRIERS -- 22.8% 23 ACE Ltd. ......................................... 1,294 1 Alleghany Corp. (D)............................... 336 16 Allied World Assurance Holdings Ltd. (D).......... 656 19 MBIA, Inc. ....................................... 1,203 8 Muenchener Rueckversicherungs-Gesellschaft AG (A)............................................. 1,276 50 Old Mutual plc (A)................................ 162 23 Reinsurance Group of America, Inc. ............... 1,292 34 UnumProvident Corp. .............................. 678 ------- 6,897 ------- INTERNATIONAL TRADE FINANCING (FOREIGN BANKS) -- 24.1% 74 Banca Intesa S.p.A. (A)(G)........................ 503 47 Banco Bilbao Vizcaya Argentaria S.A. (A).......... 1,143 85 Barclays plc (A).................................. 1,139 11 Commerzbank AG (A)................................ 374 10 Credit Suisse Group (A)........................... 621 18 ING Groep N.V. (A)................................ 801 70 Shinsei Bank Ltd. (A)............................. 404 107 UniCredito Italiano S.p.A. (A).................... 890 75 Westpac Banking Corp. (A)......................... 1,397 ------- 7,272 ------- MONETARY AUTHORITIES -- CENTRAL BANK -- 4.1% 24 HBOS plc (A)...................................... 488 -- Sumitomo Mitsui Financial Group, Inc. (A)(G)...... 754 ------- 1,242 ------- NONDEPOSITORY CREDIT BANKING -- 3.6% 14 Capital One Financial Corp. ...................... 1,080 ------- OTHER FINANCIAL INVESTMENT ACTIVITIES -- 4.5% 4 Deutsche Boerse AG (A)............................ 612 6 Nuveen Investments, Inc. Class A.................. 291 2 Swiss Life Holding (A)............................ 472 ------- 1,375 -------
MARKET SHARES VALUE (W) --------- --------- REAL ESTATE CREDIT (MORTGAGE BANKING) -- 3.3% 13 Countrywide Financial Corp. ...................... $ 492 7 Federal Home Loan Mortgage Corp. ................. 497 ------- 989 ------- SECURITIES AND COMMODITY EXCHANGES -- 2.1% 82 Hong Kong Exchanges & Clearing Ltd. (A)........... 648 ------- SECURITIES, COMMODITIES AND BROKERAGE -- 6.7% 24 E*Trade Financial Corp. (D)....................... 556 3 Gluskin Sheff + Associates, Inc. (D) (I).......... 44 24 UBS AG (A)........................................ 1,425 ------- 2,025 ------- Total common stock (cost $24,277).................................. $29,603 ------- PRINCIPAL AMOUNT --------- SHORT-TERM INVESTMENTS -- 11.0% REPURCHASE AGREEMENTS -- 5.2% $ 315 Bank of America Securities TriParty Joint Repurchase Agreement, 5.31%, 11/01/2006............................... $ 315 185 Credit Suisse Securities TriParty Joint Repurchase Agreement, 5.32%, 11/01/2006............................... 185 7 Deutsche Bank Securities Joint Repurchase Agreement, 5.25%, 11/01/2006............................... 7 148 Deutsche Bank Securities TriParty Joint Repurchase Agreement, 5.30%, 11/01/2006............................... 148 312 Deutsche Bank Securities TriParty Joint Repurchase Agreement, 5.32%, 11/01/2006............................... 312 171 Morgan Stanley & Co., Inc. TriParty Joint Repurchase Agreement, 5.29%, 11/01/2006............................... 171 419 UBS Securities TriParty Joint Repurchase Agreement, 5.31%, 11/01/2006............................... 419 ------- 1,557 ------- SECURITIES PURCHASED WITH PROCEEDS FROM SECURITY LENDING -- 5.8% 1,765 Navigator Prime Portfolio......................... 1,765 ------- Total short-term investments (cost $3,322)................................... $ 3,322 ------- Total investments in securities (cost $27,599) (C).............................. $32,925 =======
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 49.91% of total net assets at October 31, 2006. (A)The aggregate value of securities valued in good faith at fair value by, or under the direction of, the Funds' Board of Directors at The accompanying notes are an integral part of these financial statements. 148 -------------------------------------------------------------------------------- October 31, 2006, was $14,230, which represents 47.09% of total net assets. (C)At October 31, 2006, the cost of securities for federal income tax purposes was $27,665 and the aggregate gross unrealized appreciation and depreciation based on that cost were: Unrealized appreciation.......................... $5,321 Unrealized depreciation.......................... (61) ------ Net unrealized appreciation...................... $5,260 ======
(D)Currently non-income producing. (G)Security is partially on loan at October 31, 2006. (I)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 qualified institutional buyers. 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, 2006, was $44, which represents 0.15% of total net assets. (W)See Note 2b of accompanying Notes to Financial Statements regarding valuation of securities. FORWARD FOREIGN CURRENCY CONTRACTS OUTSTANDING AT OCTOBER 31, 2006
UNREALIZED MARKET CONTRACT DELIVERY APPRECIATION DESCRIPTION TRANSACTION VALUE AMOUNT DATE (DEPRECIATION) ----------- ----------- ------ -------- ---------- -------------- Australian Dollar Buy $ 47 $ 47 11/02/2006 $-- British Pound Buy 748 744 11/01/2006 4 British Pound Buy 5 5 11/02/2006 -- Canadian Dollar Buy 27 27 11/01/2006 -- Euro Sell 342 341 11/01/2006 (1) Euro Sell 264 263 11/02/2006 (1) Euro Buy 60 59 11/02/2006 1 Euro Buy 42 42 11/01/2006 -- Euro Buy 13 13 11/01/2006 -- Euro Buy 20 20 11/01/2006 -- Euro Buy 27 27 11/02/2006 -- Hong Kong Dollars Buy 23 23 11/02/2006 -- Japanese Yen Buy 45 45 11/02/2006 -- Swiss Francs Buy 16 15 11/02/2006 1 Swiss Francs Buy 21 21 11/02/2006 -- --- $ 4 ===
DIVERSIFICATION BY COUNTRY As of October 31, 2006
PERCENTAGE OF COUNTRY NET ASSETS --------------------------------------------------------------- Australia 4.6% --------------------------------------------------------------- Canada 2.8 --------------------------------------------------------------- Germany 7.6 --------------------------------------------------------------- Hong Kong 2.1 --------------------------------------------------------------- Italy 5.9 --------------------------------------------------------------- Japan 4.6 --------------------------------------------------------------- Netherlands 2.7 --------------------------------------------------------------- Spain 3.8 --------------------------------------------------------------- Switzerland 8.3 --------------------------------------------------------------- United Kingdom 7.5 --------------------------------------------------------------- United States 48.1 --------------------------------------------------------------- Short-Term Investments 11.0 --------------------------------------------------------------- Other Assets & Liabilities (9.0) --------------------------------------------------------------- TOTAL 100.0% ---------------------------------------------------------------
The accompanying notes are an integral part of these financial statements. 149 THE HARTFORD GLOBAL HEALTH FUND SCHEDULE OF INVESTMENTS OCTOBER 31, 2006 (000'S OMITTED) --------------------------------------------------------------------------------
MARKET SHARES VALUE (W) --------- --------- COMMON STOCK -- 97.5% AGENCIES, BROKERAGES, OTHER INSURANCE ACTIVITIES -- 1.1% 150 Medco Health Solutions, Inc. (D).................. $ 8,014 -------- BASIC CHEMICAL MANUFACTURING -- 0.7% 100 Bayer AG (A)...................................... 5,036 -------- DRUGS & DRUGGISTS SUNDRIES WHOLESALERS -- 6.5% 299 Cardinal Health, Inc. ............................ 19,583 569 McKesson Corp. ................................... 28,476 -------- 48,059 -------- ELECTRICAL EQUIPMENT MANUFACTURING -- 0.9% 203 Olympus Corp. (A)(G).............................. 6,446 -------- GENERAL MEDICAL AND SURGICAL HOSPITALS -- 1.9% 225 Triad Hospitals, Inc. (D)(G)...................... 8,335 114 Universal Health Services, Inc. Class B........... 6,047 -------- 14,382 -------- HEALTH AND PERSONAL CARE STORES -- 1.4% 319 CVS Corp. ........................................ 10,023 -------- INSURANCE CARRIERS -- 5.0% 50 Ehealth, Inc. .................................... 1,095 597 UnitedHealth Group, Inc. ......................... 29,115 89 WellPoint, Inc. (D)............................... 6,808 -------- 37,018 -------- MEDICAL EQUIPMENT & SUPPLIES MANUFACTURING -- 5.4% 366 Baxter International, Inc. ....................... 16,825 267 Biomet, Inc. ..................................... 10,084 829 Boston Scientific Corp. (D)....................... 13,196 -------- 40,105 -------- NAVIGATE, MEASURE, CONTROL INSTRUMENT MANUFACTURING -- 6.1% 124 Beckman Coulter, Inc. ............................ 7,127 778 Medtronic, Inc. .................................. 37,854 -------- 44,981 -------- PHARMACEUTICAL & MEDICINE MANUFACTURING -- 57.7% 836 Abbott Laboratories............................... 39,718 216 Amgen, Inc. (D)................................... 16,389 299 Amylin Pharmaceuticals, Inc. (D)(G)............... 13,144 76 Array BioPharma, Inc. (D)(G)...................... 748 492 Astellas Pharma, Inc. (A)......................... 22,159 398 AstraZeneca plc ADR............................... 23,351 150 AtheroGenics, Inc. (D)(G)......................... 1,951 75 Barr Pharmaceuticals, Inc. (D).................... 3,917 800 Bristol-Myers Squibb Co. ......................... 19,795 231 Cephalon, Inc. (D)(G)............................. 16,201 738 Cytokinetics, Inc. (D)(G)......................... 5,383 845 Daiichi Sankyo Co., Ltd. (A)...................... 25,098 494 Eisai Co., Ltd. (A)(G)............................ 25,289 719 Elan Corp. plc ADR (D)............................ 10,413 289 Eli Lilly & Co. .................................. 16,159 294 Forest Laboratories, Inc. (D)(G).................. 14,364 337 Gilead Sciences, Inc. (D)......................... 23,226
MARKET SHARES VALUE (W) --------- --------- PHARMACEUTICAL & MEDICINE MANUFACTURING -- (CONTINUED) 150 H. Lundbeck A/S (A)(G)............................ $ 3,523 105 Ipsen (A)......................................... 4,310 613 MGI Pharma, Inc. (D)(G)........................... 11,663 124 NPS Pharmaceuticals, Inc. (D)(G).................. 584 599 Sanofi-Aventis S.A. ADR........................... 25,554 1,651 Schering-Plough Corp. ............................ 36,549 64 Schwarz Pharma AG (A)(G).......................... 7,495 1,191 Shionogi & Co., Ltd. (A)(G)....................... 23,863 103 Takeda Pharmaceutical Co., Ltd. (A)............... 6,632 161 Teva Pharmaceutical Industries Ltd. ADR........... 5,308 226 UCB S.A. (A)(G)................................... 13,991 323 Vertex Pharmaceuticals, Inc. (D)(G)............... 13,122 -------- 429,899 -------- PROFESSIONAL SERVICES -- COMPUTER SYSTEM DESIGN & RELATED -- 1.0% 272 IMS Health, Inc. ................................. 7,572 -------- SCIENTIFIC RESEARCH & DEVELOPMENT SERVICES -- 9.8% 494 Applera Corp. -- Celera Genomics Group (D)........ 7,670 667 Ciphergen Biosystems, Inc. (D)(G)................. 714 330 CV Therapeutics, Inc. (D)(G)...................... 4,267 245 Exelixis, Inc. (D)(G)............................. 2,378 98 Genmab A/S (D)(A)................................. 4,377 567 Human Genome Sciences, Inc. (D)(G)................ 7,569 154 ICOS Corp. (D)(G)................................. 4,879 378 Incyte Corp. (D)(G)............................... 1,801 340 Medicines Co. (D)(G).............................. 8,832 1,304 Millennium Pharmaceuticals, Inc. (D)(G)........... 15,256 347 Regeneron Pharmaceuticals, Inc. (D)............... 6,955 491 Zymogenetics, Inc. (D)(G)......................... 7,880 -------- 72,578 -------- Total common stock (cost $623,259)................................. $724,113 -------- PRINCIPAL AMOUNT --------- SHORT-TERM INVESTMENTS -- 16.5% REPURCHASE AGREEMENTS -- 2.3% $ 3,431 Bank of America Securities TriParty Joint Repurchase Agreement, 5.31%, 11/01/2006............................... $ 3,431 2,018 Credit Suisse Securities TriParty Joint Repurchase Agreement, 5.32%, 11/01/2006............................... 2,018 81 Deutsche Bank Securities Joint Repurchase Agreement, 5.25%, 11/01/2006............................... 81 1,615 Deutsche Bank Securities TriParty Joint Repurchase Agreement, 5.30%, 11/01/2006............................... 1,615 3,391 Deutsche Bank Securities TriParty Joint Repurchase Agreement, 5.32%, 11/01/2006............................... 3,391
The accompanying notes are an integral part of these financial statements. 150 --------------------------------------------------------------------------------
PRINCIPAL MARKET AMOUNT VALUE (W) --------- --------- SHORT-TERM INVESTMENTS -- (CONTINUED) REPURCHASE AGREEMENTS -- (CONTINUED) v$ 1,857 Morgan Stanley & Co., Inc. TriParty Joint Repurchase Agreement, 5.29%, 11/01/2006............................... $ 1,857 4,561 UBS Securities TriParty Joint Repurchase Agreement, 5.31%, 11/01/2006............................... 4,561 -------- 16,954 -------- SHARES -------- OEV SECURITIES PURCHASED WITH PROCEEDS FROM SECURITY LENDING -- 14.2% 105,310 Navigator Prime Portfolio......................... $105,310 -------- Total short-term investments (cost $122,266)................................. $122,264 -------- Total investments in securities (cost $745,523) (C)............................. $846,377 ========
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 28.67% of total net assets at October 31, 2006. (A) The aggregate value of securities valued in good faith at fair value by, or under the direction of, the Funds' Board of Directors at October 31, 2006, was $148,219, which represents 19.96% of total net assets. (C) At October 31, 2006, the cost of securities for federal income tax purposes was $746,960 and the aggregate gross unrealized appreciation and depreciation based on that cost were: Unrealized appreciation........................ $117,212 Unrealized depreciation........................ (17,795) -------- Net unrealized appreciation.................... $ 99,417 ========
(D) Currently non-income producing. (G) Security is partially on loan at October 31, 2006. (W) See Note 2b of accompanying Notes to Financial Statements regarding valuation of securities. FORWARD FOREIGN CURRENCY CONTRACTS OUTSTANDING AT OCTOBER 31, 2006
UNREALIZED MARKET CONTRACT DELIVERY APPRECIATION DESCRIPTION TRANSACTION VALUE AMOUNT DATE (DEPRECIATION) ----------- ----------- ------ -------- ---------- -------------- Euro Buy $249 $248 11/01/2006 $ 1 Euro Buy 350 349 11/02/2006 1 Euro Buy 531 531 11/03/2006 -- ----- $ 2 =====
DIVERSIFICATION BY COUNTRY October 31, 2006
PERCENTAGE OF COUNTRY NET ASSETS --------------------------------------------------------------- Belgium 1.9% --------------------------------------------------------------- Denmark 1.1 --------------------------------------------------------------- France 4.0 --------------------------------------------------------------- Germany 1.7 --------------------------------------------------------------- Ireland 1.4 --------------------------------------------------------------- Israel 0.7 --------------------------------------------------------------- Japan 14.7 --------------------------------------------------------------- United Kingdom 3.1 --------------------------------------------------------------- United States 68.9 --------------------------------------------------------------- Short-Term Investments 16.5 --------------------------------------------------------------- Other Assets & Liabilities (14.0) --------------------------------------------------------------- TOTAL 100.0% ---------------------------------------------------------------
The accompanying notes are an integral part of these financial statements. 151 THE HARTFORD GLOBAL LEADERS FUND SCHEDULE OF INVESTMENTS OCTOBER 31, 2006 (000'S OMITTED) --------------------------------------------------------------------------------
MARKET SHARES VALUE (W) --------- --------- COMMON STOCK -- 97.4% BASIC MATERIALS -- 2.5% 207 Cameco Corp. ..................................... $ 7,261 44 Vallourec (A)(G).................................. 10,856 -------- 18,117 -------- CAPITAL GOODS -- 1.6% 150 Boeing Co. ....................................... 11,987 -------- CONSUMER CYCLICAL -- 10.6% 176 Best Buy Co., Inc. ............................... 9,707 3,141 Carphone Warehouse Group plc (A)(G)............... 16,948 291 eBay, Inc. (D).................................... 9,359 62 Nintendo Co. Ltd. (A)............................. 12,569 77 Pinault-Printemps-Redoute S.A. (A)(G)............. 11,445 2,258 Tesco plc (A)..................................... 16,943 -------- 76,971 -------- CONSUMER STAPLES -- 5.9% 61 Fomento Economico Mexicano S.A. de C.V. ADR....... 5,850 70 Groupe Danone (A)(G).............................. 10,256 2 Japan Tobacco, Inc. (A)........................... 10,111 16 Nestle S.A. (A)................................... 5,598 259 Reckitt Benckiser plc (A)......................... 11,281 -------- 43,096 -------- ENERGY -- 2.3% 59 Noble Corp. ...................................... 4,164 205 Schlumberger Ltd. ................................ 12,906 -------- 17,070 -------- FINANCE -- 18.7% 83 BNP Paribas (A)(G)................................ 9,101 75 Deutsche Boerse AG (A)............................ 12,008 426 E*Trade Financial Corp. (D)....................... 9,906 126 Erste Bank Der Oesterreichischen Sparkassen AG (A)(G).......................................... 8,541 36 Euronext (A)(G)................................... 3,629 74 Goldman Sachs Group, Inc. ........................ 14,025 53 KBC Groep N.V. (A)................................ 5,749 1,265 Man Group plc (A)................................. 11,757 37 ORIX Corp. (A) PFIC............................... 10,406 1,317 Shinsei Bank Ltd. (A)............................. 7,594 123 SLM Corp. ........................................ 5,968 404 Standard Chartered plc (A)........................ 11,375 388 Sumitomo Realty & Development Co., Ltd. (A)(G).... 12,855 221 UBS AG (A)........................................ 13,218 -------- 136,132 -------- HEALTH CARE -- 11.6% 129 Amgen, Inc. (D)................................... 9,808 99 AstraZeneca plc (A)............................... 5,818 83 Celgene Corp. (D)(G).............................. 4,425 244 Eisai Co., Ltd. (A)............................... 12,481 498 Elan Corp. plc ADR (D)............................ 7,214 244 Monsanto Co. ..................................... 10,781 31 Roche Holding AG (A).............................. 5,430
MARKET SHARES VALUE (W) --------- --------- HEALTH CARE -- (CONTINUED) 26 Sanofi-Aventis S.A. (A)(G)........................ $ 2,235 688 Schering-Plough Corp. ............................ 15,221 223 Wyeth............................................. 11,395 -------- 84,808 -------- SERVICES -- 10.2% 403 Comcast Corp. Class A (D)......................... 16,390 3,179 EMI Group plc (A)................................. 16,344 97 Harrah's Entertainment, Inc. ..................... 7,195 319 Las Vegas Sands Corp. (D)......................... 24,270 377 Warner Music Group Corp. ......................... 9,776 -------- 73,975 -------- TECHNOLOGY -- 33.2% 385 Adobe Systems, Inc. (D)........................... 14,726 332 America Movil S.A. de C.V. ADR.................... 14,216 471 American Tower Corp. Class A (D).................. 16,962 263 ASML Holding N.V. (D)(A).......................... 6,003 61 Broadcom Corp. Class A (D)........................ 1,834 538 Cisco Systems, Inc. (D)........................... 12,970 437 Corning, Inc. (D)................................. 8,924 134 Danaher Corp. .................................... 9,581 49 Google, Inc. (D).................................. 23,391 330 Hewlett-Packard Co. .............................. 12,773 173 High Tech Computer Corp. (A)...................... 4,283 1,494 Hon Hai Precision Industry Co., Ltd. (A).......... 9,663 430 Intel Corp. ...................................... 9,172 694 Motorola, Inc. ................................... 16,004 370 Network Appliance, Inc. (D)(G).................... 13,487 602 Oracle Corp. (D).................................. 11,123 8 Rakuten, Inc. (A)(G).............................. 3,601 94 Research In Motion Ltd. (D)....................... 11,043 20 Samsung Electronics Co., Ltd. (A)................. 12,815 220 SanDisk Corp. (D)................................. 10,581 611 Sharp Corp. (A)................................... 10,875 94 Tokyo Electron Ltd. (A)(G)........................ 6,980 -------- 241,007 -------- TRANSPORTATION -- 0.8% 87 Ryanair Holdings plc ADR (D)(G)................... 5,793 -------- Total common stock (cost $600,365)................................. $708,956 -------- PRINCIPAL AMOUNT --------- SHORT-TERM INVESTMENTS -- 13.5% REPURCHASE AGREEMENTS -- 1.8% $ 2,644 Banc of America Securities TriParty Joint Repurchase Agreement, 5.31%, 11/01/2006............................... $ 2,644 1,555 Credit Suisse Securities TriParty Joint Repurchase Agreement, 5.32%, 11/01/2006............................... 1,555 62 Deutsche Bank Securities Joint Repurchase Agreement, 5.25%, 11/01/2006............................... 62
The accompanying notes are an integral part of these financial statements. 152 --------------------------------------------------------------------------------
PRINCIPAL MARKET AMOUNT VALUE (W) --------- --------- SHORT-TERM INVESTMENTS -- (CONTINUED) REPURCHASE AGREEMENTS -- (CONTINUED) $ 1,244 Deutsche Bank Securities TriParty Joint Repurchase Agreement, 5.30%, 11/01/2006............................... $ 1,244 2,613 Deutsche Bank Securities TriParty Joint Repurchase Agreement, 5.32%, 11/01/2006............................... 2,613 1,431 Morgan Stanley & Co., Inc. TriParty Joint Repurchase Agreement, 5.29%, 11/01/2006............................... 1,431 3,515 UBS Securities TriParty Joint Repurchase Agreement, 5.31%, 11/01/2006............................... 3,515 -------- 13,064 -------- SHARES --------- SECURITIES PURCHASED WITH PROCEEDS FROM SECURITY LENDING -- 11.7% 85,242 Navigator Prime Portfolio......................... $ 85,242 -------- Total short-term investments (cost $98,306).................................. $ 98,306 -------- Total investments in securities (cost $698,671) (C)............................. $807,262 ========
DIVERSIFICATION BY COUNTRY October 31, 2006
PERCENTAGE OF COUNTRY NET ASSETS --------------------------------------------------------------- Austria 1.2% --------------------------------------------------------------- Belgium 0.8 --------------------------------------------------------------- Canada 2.5 --------------------------------------------------------------- France 6.0 --------------------------------------------------------------- Germany 1.6 --------------------------------------------------------------- Ireland 1.8 --------------------------------------------------------------- Japan 12.0 --------------------------------------------------------------- Mexico 2.8 --------------------------------------------------------------- Netherlands 1.3 --------------------------------------------------------------- South Korea 1.8 --------------------------------------------------------------- Switzerland 3.3 --------------------------------------------------------------- Taiwan 1.9 --------------------------------------------------------------- United Kingdom 12.4 --------------------------------------------------------------- United States 48.0 --------------------------------------------------------------- Short-Term Investments 13.5 --------------------------------------------------------------- Other Assets & Liabilities (10.9) --------------------------------------------------------------- TOTAL 100.0% ---------------------------------------------------------------
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 49.47% of total net assets at October 31, 2006. (A) The aggregate value of securities valued in good faith at fair value by, or under the direction of, the Funds' Board of Directors at October 31, 2006, was $308,768, which represents 42.41% of total net assets. (C) At October 31, 2006, the cost of securities for federal income tax purposes was $706,443 and the aggregate gross unrealized appreciation and depreciation based on that cost were: Unrealized appreciation........................ $106,318 Unrealized depreciation........................ (5,499) -------- Net unrealized appreciation.................... $100,819 ========
(D) Currently non-income producing. (G) Security is partially on loan at October 31, 2006. (W) See Note 2b of accompanying Notes to Financial Statements regarding valuation of securities. FORWARD FOREIGN CURRENCY CONTRACTS OUTSTANDING AT OCTOBER 31, 2006
UNREALIZED MARKET CONTRACT DELIVERY APPRECIATION DESCRIPTION TRANSACTION VALUE AMOUNT DATE (DEPRECIATION) ----------- ----------- ------ -------- ---------- -------------- British Pound Sell $3,261 $3,242 11/01/2006 $(19) Euro Sell 6,489 6,474 11/01/2006 (15) Euro Sell 629 627 11/02/2006 (2) Euro Sell 251 251 11/03/2006 -- Japanese Yen Buy 225 222 11/01/2006 3 Japanese Yen Buy 1,463 1,459 11/02/2006 4 Japanese Yen Buy 682 676 11/06/2006 6 Swiss Franc Sell 2,785 2,786 11/03/2006 1 ---- $(22) ==== PFIC -- Passive Foreign Investment Company
The accompanying notes are an integral part of these financial statements. 153 THE HARTFORD GLOBAL TECHNOLOGY FUND SCHEDULE OF INVESTMENTS OCTOBER 31, 2006 (000'S OMITTED) --------------------------------------------------------------------------------
MARKET SHARES VALUE (W) --------- --------- COMMON STOCK -- 96.8% ACTIVITIES RELATED TO CREDIT BANKING -- 1.7% 44 Western Union Co. ................................ $ 977 ------- AUDIO AND VIDEO EQUIPMENT MANUFACTURING -- 1.2% 17 Sony Corp. (A).................................... 703 ------- BUSINESS SUPPORT SERVICES -- 1.2% 17 Iron Mountain, Inc. (D)........................... 716 ------- COMMUNICATIONS EQUIPMENT MANUFACTURING -- 6.9% 88 Motorola, Inc. ................................... 2,020 8 Research In Motion Ltd. (D)....................... 963 290 Telefonaktiebolaget LM Ericsson (A)............... 1,096 ------- 4,079 ------- COMPUTER AND PERIPHERAL MANUFACTURING -- 19.3% 130 EMC Corp. (D)..................................... 1,591 139 Hewlett-Packard Co. .............................. 5,369 375 Hon Hai Precision Industry Co., Ltd. (A).......... 2,425 37 Integrated Device Technology, Inc. (D)............ 586 14 Network Appliance, Inc. (D)....................... 522 18 SanDisk Corp. (D)................................. 875 ------- 11,368 ------- DATA PROCESSING SERVICES -- 1.8% 44 First Data Corp. ................................. 1,074 ------- ELECTRICAL EQUIPMENT MANUFACTURING -- COMPONENT OTHER -- 3.3% 95 Corning, Inc. (D)................................. 1,933 ------- EMPLOYMENT SERVICES -- 2.4% 17 Manpower, Inc. ................................... 1,145 8 Robert Half International, Inc. .................. 292 ------- 1,437 ------- INTERNET PROVIDERS & WEB SEARCH PORTALS -- 0.8% 29 Redback Networks, Inc. (D)........................ 456 ------- MACHINERY MANUFACTURING -- INDUSTRIAL MACHINERY -- 6.6% 23 KLA-Tencor Corp. ................................. 1,111 56 Lam Research Corp. (D)............................ 2,749 ------- 3,860 ------- MANAGEMENT, SCIENTIFIC, AND TECH CONSULTING SERVICES -- 3.7% 39 Accenture Ltd. Class A............................ 1,280 22 Monster Worldwide, Inc. (D)....................... 891 ------- 2,171 ------- NAVIGATE, MEASURE, CONTROL INSTRUMENT MANUFACTURING -- 1.5% 16 Garmin Ltd. (G)................................... 860 ------- ON-LINE INFORMATION SERVICES -- 5.3% 7 Google, Inc. (D).................................. 3,097 -------
MARKET SHARES VALUE (W) --------- --------- PROFESSIONAL SERVICES -- COMPUTER SYSTEM DESIGN & RELATED -- 5.5% 27 Automatic Data Processing, Inc. .................. $ 1,355 47 BISYS Group, Inc. (D)............................. 517 22 DST Systems, Inc. (D)............................. 1,341 ------- 3,213 ------- RETAIL -- ELECTRONIC SHOPPING AND MAIL-ORDER HOUSES -- 2.5% 46 eBay, Inc. (D).................................... 1,488 ------- SEMICONDUCTOR, ELECTRONIC COMPONENT MANUFACTURING -- 17.9% 36 Broadcom Corp. Class A (D)........................ 1,090 136 Intel Corp. ...................................... 2,908 14 International Rectifier Corp. (D)................. 500 68 Maxim Integrated Products, Inc. .................. 2,047 26 QLogic Corp. (D).................................. 541 34 S.O.I. Tec, S.A. (D)(A)(G)........................ 1,004 3 Samsung Electronics Co., Ltd. (A)................. 1,746 2 SiRF Technology Holdings, Inc. (D)................ 59 31 Trident Microsystems, Inc. (D).................... 655 ------- 10,550 ------- SOFTWARE PUBLISHERS -- 13.1% 58 Activision, Inc. (D).............................. 897 35 Adobe Systems, Inc. (D)........................... 1,354 18 Cognos, Inc. (D).................................. 653 32 Electronic Arts, Inc. (D)......................... 1,708 60 Microsoft Corp. .................................. 1,734 35 Oracle Corp. (D).................................. 652 44 Red Hat, Inc. (D)................................. 724 ------- 7,722 ------- WHOLESALERS -- ELECTRICAL GOODS -- 1.1% 49 Arris Group, Inc. (D)............................. 658 ------- WIRELESS COMMUNICATIONS SERVICES -- 1.0% 107 Sonus Networks, Inc. (D)(G)....................... 560 ------- Total common stock (cost $49,906).................................. $56,922 ------- INVESTMENT COMPANIES -- 0.4% INVESTMENT POOLS AND FUNDS -- 0.4% 5 Ishares Goldman Sachs Tech I Index Fund........... $ 244 ------- Total investment companies (cost $246)..................................... $ 244 ------- WARRANTS -- 0.8% OTHER PERSONAL SERVICES -- 0.8% 10 Tata Consultancy Services Ltd. Warrants (D) (I)... $ 482 ------- Total warrants (cost $299)..................................... $ 482 ------- Total long-term investments (cost $50,451).................................. $57,648 -------
The accompanying notes are an integral part of these financial statements. 154 -------------------------------------------------------------------------------- PRINCIPAL MARKET AMOUNT VALUE (W) ----------- ----------- SHORT-TERM INVESTMENTS -- 4.0% REPURCHASE AGREEMENTS -- 1.3% $ 155 Bank of America Securities TriParty Joint Repurchase Agreement, 5.31%, 11/01/2006............................... $ 155 91 Credit Suisse Securities TriParty Joint Repurchase Agreement, 5.32%, 11/01/2006............................... 91 4 Deutsche Bank Securities Joint Repurchase Agreement, 5.25%, 11/01/2006............................... 4 73 Deutsche Bank Securities TriParty Joint Repurchase Agreement, 5.30%, 11/01/2006............................... 73 154 Deutsche Bank Securities TriParty Joint Repurchase Agreement, 5.32%, 11/01/2006............................... 154 84 Morgan Stanley & Co., Inc. TriParty Joint Repurchase Agreement, 5.29%, 11/01/2006............................... 84 207 UBS Securities TriParty Joint Repurchase Agreement, 5.31%, 11/01/2006............................... 207 --------- 768 --------- SECURITIES PURCHASED WITH PROCEEDS FROM SECURITY LENDING -- 2.7% 1,610 BNY Institutional Cash Reserve Fund............... 1,610 --------- Total short-term investments (cost $2,378)................................... $ 2,378 --------- Total investments in securities (cost $52,829) (C).............................. $ 60,026 =========
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 15.43% of total net assets at October 31, 2006. (A) The aggregate value of securities valued in good faith at fair value by, or under the direction of, the Funds' Board of Directors at October 31, 2006, was $6,974, which represents 11.86% of total net assets. (C) At October 31, 2006, the cost of securities for federal income tax purposes was $53,270 and the aggregate gross unrealized appreciation and depreciation based on that cost were: Unrealized appreciation.......................... $7,691 Unrealized depreciation.......................... (935) ------ Net unrealized appreciation...................... $6,756 ======
(D) Currently non-income producing. (G) Security is partially on loan at October 31, 2006. (I) 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 qualified institutional buyers. 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, 2006, was $482, which represents 0.82% of total net assets. (W) See Note 2b of accompanying Notes to Financial Statements regarding valuation of securities. DIVERSIFICATION BY COUNTRY October 31, 2006
PERCENTAGE OF COUNTRY NET ASSETS --------------------------------------------------------------- Canada 2.7% --------------------------------------------------------------- France 1.7 --------------------------------------------------------------- Japan 1.2 --------------------------------------------------------------- Luxembourg 0.8 --------------------------------------------------------------- South Korea 3.0 --------------------------------------------------------------- Sweden 1.9 --------------------------------------------------------------- Taiwan 4.1 --------------------------------------------------------------- United States 82.6 --------------------------------------------------------------- Short Term Investments 4.0 --------------------------------------------------------------- Other Assets & Liabilities (2.0) --------------------------------------------------------------- TOTAL 100.0% ---------------------------------------------------------------
The accompanying notes are an integral part of these financial statements. 155 THE HARTFORD GROWTH ALLOCATION FUND SCHEDULE OF INVESTMENTS OCTOBER 31, 2006 (000'S OMITTED) --------------------------------------------------------------------------------
MARKET SHARES VALUE (W) --------- --------- AFFILIATED INVESTMENT COMPANIES -- 99.9% EQUITY FUNDS -- 79.8% 2,057 Hartford Capital Appreciation Fund, Class Y....... $ 86,783 6,355 Hartford Disciplined Equity Fund, Class Y......... 86,306 82 Hartford Equity Income Fund, Class Y.............. 1,147 2,239 Hartford Global Leaders Fund, Class Y............. 45,094 857 Hartford Growth Fund, Class Y (D)................. 16,185 836 Hartford Growth Opportunities Fund, Class Y....... 25,115 1,449 Hartford International Capital Appreciation Fund, Class Y......................................... 21,983 1,000 Hartford International Opportunities Fund, Class Y............................................... 16,677 1,551 Hartford International Small Company Fund, Class Y............................................... 25,396 749 Hartford MidCap Value Fund, Class Y............... 11,240 939 Hartford Select MidCap Growth Fund, Class Y....... 10,668 638 Hartford Select Midcap Value Fund, Class Y........ 7,906 105 Hartford Select Smallcap Growth Fund, Class Y (D)............................................. 1,113 1,818 Hartford Small Company Fund, Class Y (D).......... 41,321 1,674 Hartford SmallCap Growth Fund, Class Y (D)........ 53,488 2,408 Hartford Value Fund, Class Y...................... 31,086 2,399 Hartford Value Opportunities Fund, Class Y........ 44,332 -------- Total equity funds (cost $465,258)................................. $525,840 --------
MARKET SHARES VALUE (W) --------- --------- FIXED INCOME FUNDS -- 20.1% 4,519 Hartford Inflation Plus Fund, Class Y............. $ 47,223 2,829 Hartford Short Duration Fund, Class Y............. 27,954 5,373 Hartford Total Return Bond Fund, Class Y.......... 57,542 -------- Total fixed income funds (cost $134,314)................................. $132,719 -------- Total investments in affiliated investment companies (cost $599,572) (C)............................. $658,559 ========
Note: Percentage of investments as shown is the ratio of the total market value to total net assets. (C) At October 31, 2006, the cost of securities for federal income tax purposes was $599,583 and the aggregate gross unrealized appreciation and depreciation based on that cost were: Unrealized appreciation......................... $60,570 Unrealized depreciation......................... (1,594) ------- Net unrealized appreciation..................... $58,976 =======
(D) Currently non-income producing. (W) See Note 2b of accompanying Notes to Financial Statements regarding valuation of securities. The accompanying notes are an integral part of these financial statements. 156 THE HARTFORD GROWTH FUND SCHEDULE OF INVESTMENTS OCTOBER 31, 2006 (000'S OMITTED) --------------------------------------------------------------------------------
MARKET SHARES VALUE (W) --------- ---------- COMMON STOCK -- 99.1% BASIC MATERIALS -- 2.4% 698 Cameco Corp. ..................................... $ 24,508 272 Companhia Vale do Rio Doce ADR.................... 6,919 ---------- 31,427 ---------- CAPITAL GOODS -- 4.0% 581 Boeing Co. ....................................... 46,382 124 International Game Technology..................... 5,287 ---------- 51,669 ---------- CONSUMER CYCLICAL -- 3.3% 483 eBay, Inc. (D).................................... 15,524 251 Wal-Mart Stores, Inc. ............................ 12,370 226 Whole Foods Market, Inc. ......................... 14,422 ---------- 42,316 ---------- CONSUMER STAPLES -- 0.7% 139 PepsiCo, Inc. .................................... 8,814 ---------- ENERGY -- 1.5% 577 Halliburton Co. (G)............................... 18,655 ---------- FINANCE -- 19.5% 224 AMVESCAP plc ADR.................................. 5,150 38 Chicago Mercantile Exchange Holdings, Inc. ....... 19,148 751 Commerce Bancorp, Inc. (G)........................ 26,214 418 Franklin Resources, Inc. ......................... 47,621 36 Goldman Sachs Group, Inc. ........................ 6,827 687 Nasdaq Stock Market, Inc. (D)..................... 24,540 217 State Street Corp. ............................... 13,938 749 UBS AG............................................ 44,791 1,003 UnitedHealth Group, Inc. ......................... 48,910 539 Western Union Co. ................................ 11,878 ---------- 249,017 ---------- HEALTH CARE -- 13.1% 20 Abbott Laboratories............................... 950 194 Amgen, Inc. (D)................................... 14,736 702 AstraZeneca plc ADR............................... 41,213 505 Elan Corp. plc ADR (D)(G)......................... 7,319 129 Genzyme Corp. (D)................................. 8,682 148 Gilead Sciences, Inc. (D)......................... 10,217 180 Monsanto Co. ..................................... 7,964 715 Sanofi-Aventis S.A. ADR........................... 30,502 1,745 Schering-Plough Corp. ............................ 38,631 186 Vertex Pharmaceuticals, Inc. (D)(G)............... 7,567 ---------- 167,781 ---------- SERVICES -- 16.1% 173 Accenture Ltd. Class A............................ 5,700 855 Autodesk, Inc. (D)................................ 31,415 92 Corporate Executive Board Co. .................... 8,266 371 Equifax, Inc. .................................... 14,108 365 Fluor Corp. ...................................... 28,600 137 Manpower, Inc. ................................... 9,264 424 Monster Worldwide, Inc. (D)....................... 17,195 284 Moody's Corp. .................................... 18,823 126 Starwood Hotels & Resorts......................... 7,526
MARKET SHARES VALUE (W) --------- ---------- SERVICES -- (CONTINUED) 397 United Parcel Service, Inc. Class B............... $ 29,886 175 Viacom, Inc. Class B (D).......................... 6,825 749 Walt Disney Co. .................................. 23,566 369 XM Satellite Radio Holdings, Inc. Class A (D)..... 4,308 ---------- 205,482 ---------- TECHNOLOGY -- 33.4% 1,021 Adobe Systems, Inc. (D)........................... 39,041 296 America Movil S.A. de C.V. ADR.................... 12,684 348 American Tower Corp. Class A (D).................. 12,539 191 AT&T, Inc. ....................................... 6,530 1,758 Cisco Systems, Inc. (D)........................... 42,431 386 Danaher Corp. .................................... 27,733 716 General Electric Co. ............................. 25,129 83 Google, Inc. (D).................................. 39,545 369 Hewlett-Packard Co. .............................. 14,299 576 Linear Technology Corp. .......................... 17,933 394 Marvell Technology Group Ltd. (D)................. 7,201 1,142 Medtronic, Inc. .................................. 55,572 1,100 Motorola, Inc. ................................... 25,364 1,517 Network Appliance, Inc. (D)....................... 55,381 1,092 Oracle Corp. (D).................................. 20,162 91 Qualcomm, Inc. ................................... 3,323 309 SanDisk Corp. (D)................................. 14,863 365 Symantec Corp. (D)................................ 7,232 ---------- 426,962 ---------- TRANSPORTATION -- 3.1% 455 General Dynamics Corp. ........................... 32,351 113 Harley-Davidson, Inc. ............................ 7,772 ---------- 40,123 ---------- UTILITIES -- 2.0% 404 TXU Corp. ........................................ 25,474 ---------- Total common stock (cost $1,180,403)............................... $1,267,720 ---------- PRINCIPAL AMOUNT --------- SHORT-TERM INVESTMENTS -- 3.8% REPURCHASE AGREEMENTS -- 1.0% $ 2,530 Bank of America Securities TriParty Joint Repurchase Agreement, 5.31%, 11/01/2006............................... $ 2,530 1,489 Credit Suisse Securities TriParty Joint Repurchase Agreement, 5.32%, 11/01/2006............................... 1,489 59 Deutsche Bank Securities Joint Repurchase Agreement, 5.25%, 11/01/2006............................... 59 1,191 Deutsche Bank Securities TriParty Joint Repurchase Agreement, 5.30%, 11/01/2006............................... 1,191 2,501 Deutsche Bank Securities TriParty Joint Repurchase Agreement, 5.32%, 11/01/2006............................... 2,501
The accompanying notes are an integral part of these financial statements. 157 THE HARTFORD GROWTH FUND SCHEDULE OF INVESTMENTS -- (CONTINUED) OCTOBER 31, 2006 (000'S OMITTED) --------------------------------------------------------------------------------
PRINCIPAL MARKET AMOUNT VALUE (W) --------- ---------- SHORT-TERM INVESTMENTS -- (CONTINUED) REPURCHASE AGREEMENTS -- (CONTINUED) $ 1,369 Morgan Stanley & Co., Inc. TriParty Joint Repurchase Agreement, 5.29%, 11/01/2006............................... $ 1,369 3,364 UBS Securities TriParty Joint Repurchase Agreement, 5.31%, 11/01/2006............................... 3,364 ---------- 12,503 ---------- SHARES --------- SHARES SECURITIES PURCHASED WITH PROCEEDS FROM SECURITY LENDING -- 2.8% 35,675 BNY Institutional Cash Reserve Fund............... $ 35,675 ---------- Total short-term investments (cost $48,178).................................. $ 48,178 ---------- Total investments in securities (cost $1,228,581) (C)........................... $1,315,898 ==========
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 13.53% of total net assets at October 31, 2006. (C)At October 31, 2006, the cost of securities for federal income tax purposes was $1,230,929 and the aggregate gross unrealized appreciation and depreciation based on that cost were: Unrealized appreciation........................ $123,279 Unrealized depreciation........................ (38,310) -------- Net unrealized appreciation.................... $ 84,969 ========
(D) Currently non-income producing. (G) Security is partially on loan at October 31, 2006. (W) See Note 2b of accompanying Notes to Financial Statements regarding valuation of securities. The accompanying notes are an integral part of these financial statements. 158 THE HARTFORD GROWTH OPPORTUNITIES FUND SCHEDULE OF INVESTMENTS OCTOBER 31, 2006 (000'S OMITTED) --------------------------------------------------------------------------------
MARKET SHARES VALUE (W) --------- ---------- COMMON STOCK -- 98.1% BASIC MATERIALS -- 6.8% 379 Cameco Corp. ..................................... $ 13,325 631 Companhia Vale do Rio Doce ADR (G)................ 16,053 401 Jarden Corp. (D)(G)............................... 14,427 129 Potash Corp. of Saskatchewan...................... 16,099 54 Rio Tinto plc ADR................................. 12,044 104 Wacker Chemie AG (D)(A)........................... 12,384 ---------- 84,332 ---------- CAPITAL GOODS -- 3.0% 143 Alliant Techsystems, Inc. (D)..................... 11,033 231 Boeing Co. ....................................... 18,432 184 Joy Global, Inc. ................................. 7,208 ---------- 36,673 ---------- CONSUMER CYCLICAL -- 10.1% 133 Altria Group, Inc. ............................... 10,793 384 California Pizza Kitchen, Inc. (D)................ 12,376 173 Children's Place Retail Stores, Inc. (D).......... 12,157 543 eBay, Inc. (D).................................... 17,437 312 Foster Wheeler Ltd. (D)........................... 14,033 538 Hot Topic, Inc. (D)............................... 5,434 357 Kohl's Corp. (D).................................. 25,232 60 Nintendo Co. Ltd. (A)............................. 12,221 430 Tiffany & Co. .................................... 15,363 ---------- 125,046 ---------- CONSUMER STAPLES -- 0.9% 229 Alberto-Culver Co. ............................... 11,610 ---------- ENERGY -- 2.1% 401 Chesapeake Energy Corp. .......................... 12,992 421 Halliburton Co. .................................. 13,613 ---------- 26,605 ---------- FINANCE -- 9.8% 345 Citigroup, Inc. .................................. 17,285 279 Dade Behring Holdings, Inc. ...................... 10,146 705 E*Trade Financial Corp. (D)....................... 16,405 510 Nasdaq Stock Market, Inc. (D)..................... 18,212 328 Nuveen Investments, Inc. Class A.................. 16,170 245 State Street Corp. ............................... 15,711 197 UBS AG............................................ 11,783 729 Western Union Co. ................................ 16,063 ---------- 121,775 ---------- HEALTH CARE -- 16.4% 271 Alkermes, Inc. (D)................................ 4,549 249 Amylin Pharmaceuticals, Inc. (D).................. 10,950 237 Astellas Pharma, Inc. (A)......................... 10,679 266 AtheroGenics, Inc. (D)(G)......................... 3,463 443 Auxilium Pharmaceuticals, Inc. (D)(G)............. 5,586 238 Cephalon, Inc. (D)(G)............................. 16,724 131 Covance, Inc. (D)................................. 7,646 280 Digene Corp. (D).................................. 13,010 220 Eisai Co., Ltd. (A)............................... 11,274 576 Elan Corp. plc ADR (D)(G)......................... 8,336
MARKET SHARES VALUE (W) --------- ---------- HEALTH CARE -- (CONTINUED) 243 Eli Lilly & Co. .................................. $ 13,605 139 Encysive Pharmaceuticals, Inc. (D)(G)............. 663 296 Forest Laboratories, Inc. (D)..................... 14,467 155 ICOS Corp. (D)(G)................................. 4,907 390 Kyphon, Inc. (D).................................. 15,389 187 Medicines Co. (D)................................. 4,852 306 Pharmaceutical Product Development, Inc. ......... 9,688 1,144 Schering-Plough Corp. ............................ 25,319 730 Shionogi & Co., Ltd. (A)(G)....................... 14,630 183 Vertex Pharmaceuticals, Inc. (D).................. 7,442 ---------- 203,179 ---------- SERVICES -- 11.8% 303 Accenture Ltd. Class A............................ 9,985 456 Comcast Corp. Class A (D)......................... 18,533 547 DreamWorks Animation SKG, Inc. (D)................ 14,455 349 Equifax, Inc. .................................... 13,254 181 Fluor Corp. ...................................... 14,219 262 Focus Media Holding Ltd. ADR (D).................. 13,862 179 Manpower, Inc. ................................... 12,131 307 MoneyGram International, Inc. .................... 10,485 176 Stericycle, Inc. (D).............................. 12,417 500 Tetra Technologies, Inc. (D)...................... 9,094 569 Walt Disney Co. .................................. 17,910 ---------- 146,345 ---------- TECHNOLOGY -- 32.4% 1,328 Activision, Inc. (D).............................. 20,475 548 Adobe Systems, Inc. (D)........................... 20,942 297 Amdocs Ltd. (D)................................... 11,500 405 American Tower Corp. Class A (D).................. 14,574 68 Baidu.com ADR (G)................................. 5,961 319 Broadcom Corp. Class A (D)........................ 9,668 254 Cognos, Inc. (D).................................. 9,262 947 Corning, Inc. (D)................................. 19,355 826 Evergreen Solar, Inc. (G)......................... 7,185 255 Garmin Ltd. (G)................................... 13,641 580 General Electric Co. ............................. 20,378 33 Google, Inc. (D).................................. 15,911 520 Hewlett-Packard Co. .............................. 20,149 287 Leap Wireless International, Inc. (D)............. 15,889 440 Medtronic, Inc. .................................. 21,410 692 Microsoft Corp. .................................. 19,853 794 Motorola, Inc. ................................... 18,319 1,782 Move, Inc. (D).................................... 8,518 940 Network Appliance, Inc. (D)....................... 34,321 1,321 O2Micro International Ltd. ADR (D)................ 8,532 923 Oracle Corp. (D).................................. 17,052 504 Red Hat, Inc. (D)(G).............................. 8,259 654 Redback Networks, Inc. (D)........................ 10,350 20 Samsung Electronics Co., Ltd. (A)................. 13,145 2,845 Tencent Holdings Ltd. (A)......................... 6,786 725 VeriFone Holdings, Inc. (D)(G).................... 21,166 280 Verint Systems, Inc. (D).......................... 9,167 ---------- 401,768 ----------
The accompanying notes are an integral part of these financial statements. 159 THE HARTFORD GROWTH OPPORTUNITIES FUND SCHEDULE OF INVESTMENTS -- (CONTINUED) OCTOBER 31, 2006 (000'S OMITTED) --------------------------------------------------------------------------------
MARKET SHARES VALUE (W) --------- ---------- COMMON STOCK -- (CONTINUED) TRANSPORTATION -- 1.1% 451 GOL Linhas Aereas Inteligentes S.A. ADR (G)....... $ 14,052 ---------- UTILITIES -- 3.7% 637 Suntech Power Holdings Co. Ltd. ADR (D)........... 16,554 267 TXU Corp. ........................................ 16,862 212 Veolia Environnment S.A. (A)(G)................... 12,960 ---------- 46,376 ---------- Total common stock (cost $1,072,405)............................... $1,217,761 ---------- PRINCIPAL AMOUNT --------- SHORT-TERM INVESTMENTS -- 10.3% REPURCHASE AGREEMENTS -- 2.7% $ 6,943 Banc of America Securities TriParty Joint Repurchase Agreement, 5.31%, 11/01/2006............................... $ 6,943 4,084 Credit Suisse Securities TriParty Joint Repurchase Agreement, 5.32%, 11/01/2006............................... 4,084 163 Deutsche Bank Securities Joint Repurchase Agreement, 5.25%, 11/01/2006............................... 163 3,267 Deutsche Bank Securities TriParty Joint Repurchase Agreement, 5.30%, 11/01/2006............................... 3,267 6,862 Deutsche Bank Securities TriParty Joint Repurchase Agreement, 5.32%, 11/01/2006............................... 6,862 3,758 Morgan Stanley & Co., Inc. TriParty Joint Repurchase Agreement, 5.29%, 11/01/2006............................... 3,758 9,231 UBS Securities TriParty Joint Repurchase Agreement, 5.31%, 11/01/2006............................... 9,231 ---------- 34,308 ---------- SHARES --------- SECURITIES PURCHASED WITH PROCEEDS FROM SECURITY LENDING -- 7.6% 93,925 BNY Institutional Cash Reserve Fund............... 93,925 ---------- Total short-term investments (cost $128,233)................................. $ 128,233 ---------- Total investments in securities (cost $1,200,638) (C)........................... $1,345,994 ==========
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 17.61% of total net assets at October 31, 2006. (A) The aggregate value of securities valued in good faith at fair value by, or under the direction of, the Funds' Board of Directors at October 31, 2006, was $94,079, which represents 7.58% of total net assets. (C) At October 31, 2006, the cost of securities for federal income tax purposes was $1,202,965 and the aggregate gross unrealized appreciation and depreciation based on that cost were: Unrealized appreciation........................ $164,101 Unrealized depreciation........................ (21,072) -------- Net unrealized appreciation.................... $143,029 ========
(D) Currently non-income producing. (G) Security is partially on loan at October 31, 2006. (W) See Note 2b of accompanying Notes to Financial Statements regarding valuation of securities. The accompanying notes are an integral part of these financial statements. 160 THE HARTFORD HIGH YIELD FUND SCHEDULE OF INVESTMENTS OCTOBER 31, 2006 (000'S OMITTED) --------------------------------------------------------------------------------
PRINCIPAL MARKET AMOUNT VALUE (W) --------- --------- ASSET & COMMERCIAL MORTGAGE BACKED SECURITIES -- 2.3% TRANSPORTATION -- 2.3% $ 725 American Airlines, Inc., 7.38%, 05/23/2019............................... $ 696 589 Continental Airlines, Inc., 6.80%, 08/02/2018............................... 574 1,342 Continental Airlines, Inc., 7.37%, 12/15/2015............................... 1,328 1,625 Continental Airlines, Inc., 7.57%, 12/01/2006............................... 1,625 1,102 Continental Airlines, Inc., 8.39%, 11/01/2020............................... 1,143 1,281 Delta Air Lines, Inc., 7.38%, 05/18/2010 (F)........................... 1,281 -------- Total asset & commercial mortgage backed securities (cost $6,471)................................... $ 6,647 -------- CORPORATE BONDS: INVESTMENT GRADE -- 1.7% FINANCE -- 0.8% $ 715 Kazkommerts International B.V., 8.00%, 11/03/2015 (I)(G)........................ 736 1,485 TuranAlem Finance B.V., 8.00%, 03/24/2014............................... 1,492 -------- 2,228 -------- TECHNOLOGY -- 0.3% 840 Valor Telecommunications Enterprises LLC, 7.75%, 02/15/2015............................... 896 -------- TRANSPORTATION -- 0.2% 650 Royal Caribbean Cruises Ltd., 7.00%, 06/15/2013............................... 660 -------- UTILITIES -- 0.4% 1,110 NGC Corp., 7.125%, 05/15/2018.............................. 1,032 -------- Total corporate bonds: investment grade (cost $5,067)................................... $ 4,816 -------- CORPORATE BONDS: NON-INVESTMENT GRADE -- 94.4% BASIC MATERIALS -- 13.2% $ 600 Ainsworth Lumber Co. Ltd., 7.25%, 10/01/2012 (G)........................... $ 446 1,250 AK Steel Corp., 7.75%, 06/15/2012............................... 1,249 305 Arco Chemical Co., 10.25%, 11/01/2010.............................. 339 965 Boise Cascade LLC, 7.13%, 10/15/2014............................... 910 1,340 Bowater, Inc., 8.39%, 03/15/2010 (L)(G)........................ 1,353 1,940 Bowater, Inc., 9.50%, 10/15/2012............................... 1,959
PRINCIPAL MARKET AMOUNT (B) VALUE (W) ---------- --------- BASIC MATERIALS -- (CONTINUED) $ 1,000 Chaparral Steel Co., 10.00%, 07/15/2013.............................. $ 1,120 755 Cooper-Standard Automotive, Inc., 8.38%, 12/15/2014 (G)........................... 557 1,370 Crown Americas, Inc., 7.75%, 11/15/2015............................... 1,406 660 Crown Cork & Seal Co., Inc., 8.00%, 04/15/2023............................... 634 1,475 Equistar Chemicals L.P., 8.75%, 02/15/2009 (G)........................... 1,534 985 Georgia Gulf Corp., 10.75%, 10/15/2016 (I).......................... 963 2,940 Goodyear Tire & Rubber Co., 11.25%, 03/01/2011.............................. 3,234 1,180 Graham Packaging Co., Inc., 9.88%, 10/15/2014 (G)........................... 1,183 550 Huntsman International LLC, 7.88%, 11/13/2014 (I)(Q)........................ 550 EUR 90 Huntsman International LLC, 10.13%, 07/01/2009.............................. 118 1,364 Koppers, Inc., 9.88%, 10/15/2013............................... 1,473 1,200 Lyondell Chemical Co., 8.25%, 09/15/2016............................... 1,236 985 Mobile Services Group, Inc., 9.75%, 08/01/2014 (I)........................... 1,021 EUR 1,750 Nalco Co., 7.75%, 11/15/2011............................... 2,356 1,490 Norampac, Inc., 6.75%, 06/01/2013 (G)........................... 1,434 1,130 Nova Chemicals Corp., 8.40%, 11/15/2013 (L)(G)........................ 1,150 1,250 Owens-Brockway Glass Container, Inc., 8.88%, 02/15/2009............................... 1,281 660 Owens-Illinois, Inc., 7.80%, 05/15/2018 (G)........................... 640 1,500 Peabody Energy Corp., 6.88%, 03/15/2013 (G)........................... 1,523 1,470 PolyOne Corp., 8.88%, 05/01/2012 (G)........................... 1,492 650 Potlatch Corp., 13.00%, 12/01/2009 (L).......................... 757 1,330 Rockwood Specialties Group, Inc., 7.50%, 11/15/2014 (G)........................... 1,323 434 Rockwood Specialties Group, Inc., 10.63%, 05/15/2011.............................. 465 1,520 Smurfit Kappa Funding PLC, 9.63%, 10/01/2012............................... 1,609 1,650 Smurfit-Stone Container Enterprises, Inc., 8.38%, 07/01/2012............................... 1,609 1,665 Verso Paper Holdings LLC, 11.38%, 08/01/2016 (I)(G)....................... 1,690 -------- 38,614 --------
The accompanying notes are an integral part of these financial statements. 161 THE HARTFORD HIGH YIELD FUND SCHEDULE OF INVESTMENTS -- (CONTINUED) OCTOBER 31, 2006 (000'S OMITTED) --------------------------------------------------------------------------------
PRINCIPAL MARKET AMOUNT VALUE (W) --------- --------- CORPORATE BONDS: NON-INVESTMENT GRADE -- (CONTINUED) CAPITAL GOODS -- 1.6% 1,285 Bombardier, Inc., 6.30%, 05/01/2014 (I)........................... 1,179 1,100 Case Corp., 7.25%, 01/15/2016............................... 1,107 891 K2, Inc., 7.38%, 07/01/2014 (G)........................... 882 176 L-3 Communications Corp., 3.00%, 08/01/2035 +............................. 182 810 Xerox Capital Trust I, 8.00%, 02/01/2027 (G)........................... 827 570 Xerox Corp., 9.75%, 01/15/2009............................... 616 -------- 4,793 -------- CONSUMER CYCLICAL -- 13.8% 2,400 Albertson's, Inc., 7.25%, 05/01/2013............................... 2,417 1,080 Amerigas Partners L.P., 7.25%, 05/20/2015 (G)........................... 1,077 2,505 ArvinMeritor, Inc., 8.75%, 03/01/2012 (G)........................... 2,461 1,600 Asbury Automotive Group, Inc., 9.00%, 06/15/2012 (G)........................... 1,656 1,160 Beazer Homes USA, Inc., 8.63%, 05/15/2011 (G)........................... 1,183 1,300 Brown Shoe Co., Inc., 8.75%, 05/01/2012............................... 1,352 865 Builders FirstSource, Inc., 9.65%, 02/15/2012 (L)........................... 850 1,700 Ford Capital B.V., 9.50%, 06/01/2010............................... 1,658 1,360 Ford Motor Co., 7.45%, 07/16/2031 (G)........................... 1,066 2,865 General Motors Corp., 6.38%, 05/01/2008 (G)........................... 2,808 1,960 General Motors Corp., 7.13%, 07/15/2013............................... 1,754 1,100 GSC Holdings Corp., 8.00%, 10/01/2012 (G)........................... 1,141 640 Ingles Markets, Inc., 8.88%, 12/01/2011 (G)........................... 667 505 Interline Brands, Inc., 8.13%, 06/15/2014 (G)........................... 516 365 K. Hovnanian Enterprises, Inc., 6.00%, 01/15/2010............................... 347 875 K. Hovnanian Enterprises, Inc., 6.25%, 01/15/2015............................... 805 315 K. Hovnanian Enterprises, Inc., 8.63%, 01/15/2017 (G)........................... 325 1,200 KB Home & Broad Home Corp., 6.38%, 08/15/2011 (G)........................... 1,181 950 Levi Strauss & Co., 9.75%, 01/15/2015 (G)........................... 1,007
PRINCIPAL MARKET AMOUNT VALUE (W) --------- --------- CONSUMER CYCLICAL -- (CONTINUED) $ 1,390 Michaels Stores, Inc., 11.38%, 11/01/2016 (I)(G)....................... $ 1,390 1,710 Neiman Marcus Group, Inc., 10.38%, 10/15/2015 (G).......................... 1,870 1,355 NPC International, Inc., 9.50%, 05/01/2014 (I)........................... 1,372 1,020 Perry Ellis International, Inc., 8.88%, 09/15/2013............................... 1,023 1,595 Phillips Van-Heusen Corp., 7.75%, 11/15/2023............................... 1,627 880 Ply Gem Industries, Inc., 9.00%, 02/15/2012 (G)........................... 735 1,625 SGS International, Inc., 12.00%, 12/15/2013.............................. 1,674 1,090 Stater Brothers Holdings, Inc., 8.13%, 06/15/2012............................... 1,098 1,315 Technical Olympic USA, Inc., 9.00%, 07/01/2010 (G)........................... 1,279 800 Technical Olympic USA, Inc., 10.38%, 07/01/2012 (G).......................... 718 1,850 Tenneco, Inc., 8.63%, 11/15/2014 (G)........................... 1,864 1,240 United Auto Group, Inc., 9.63%, 03/15/2012............................... 1,307 -------- 40,228 -------- CONSUMER STAPLES -- 2.5% 725 Constellation Brands, Inc., 7.25%, 09/01/2016............................... 737 715 Dean Foods Co., 7.00%, 06/01/2016............................... 723 840 Del Laboratories, Inc., 10.49%, 11/01/2011 (L).......................... 867 1,735 Dole Food Co., Inc., 8.63%, 05/01/2009............................... 1,698 1,440 Nutro Products, Inc., 10.75%, 04/15/2014 (I).......................... 1,548 950 Pierre Foods, Inc., 9.88%, 07/15/2012 (G)........................... 969 785 Pinnacle Foods Group, Inc., 8.25%, 12/01/2013 (G)........................... 787 -------- 7,329 -------- ENERGY -- 3.5% 410 Amerigas Partners L.P., 7.13%, 05/20/2016............................... 405 596 Chesapeake Energy Corp., 2.75%, 11/15/2035 +............................. 645 750 Chesapeake Energy Corp., 6.63%, 01/15/2016............................... 734 1,000 Comstock Resources, Inc., 6.88%, 03/01/2012 (G)........................... 946 1,545 Encore Acquisition Co., 7.25%, 12/01/2017 (G)........................... 1,487 875 Ferrell Gas Partners L.P., 8.75%, 06/15/2012............................... 903
The accompanying notes are an integral part of these financial statements. 162 --------------------------------------------------------------------------------
PRINCIPAL MARKET AMOUNT (B) VALUE (W) ---------- --------- CORPORATE BONDS: NON-INVESTMENT GRADE -- (CONTINUED) ENERGY -- (CONTINUED) $ 1,190 Inergy L.P., 8.25%, 03/01/2016............................... $ 1,235 1,014 Magnum Hunter Resources, Inc., 9.60%, 03/15/2012............................... 1,070 200 Naftogaz Ukrainy, 8.13%, 09/30/2009............................... 193 1,000 Petrohawk Energy Corp., 9.13%, 07/15/2013 (I)(G)........................ 1,020 1,500 Pogo Producing Co., 7.88%, 05/01/2013 (I)........................... 1,526 -------- 10,164 -------- FINANCE -- 13.4% 2,850 American Real Estate Partners L.P., 7.13%, 02/15/2013............................... 2,843 1,420 Atlantic Broadband Finance LLC, 9.38%, 01/15/2014............................... 1,413 1,150 Avis Budget Car Rental, 7.91%, 05/15/2014 (I)(L)........................ 1,124 1,868 BCP Crystal Holdings Corp., 9.63%, 06/15/2014............................... 2,050 1,375 El Paso Performance-Linked Trust, 7.75%, 07/15/2011 (I)........................... 1,423 675 Felcor Lodging L.P., 8.50%, 06/01/2011............................... 721 1,430 Ford Motor Credit Co., 6.75%, 08/15/2008............................... 1,386 4,115 Ford Motor Credit Co., 6.94%, 01/15/2010 (L)........................... 3,914 1,900 Ford Motor Credit Co., 7.38%, 02/01/2011............................... 1,815 1,810 Ford Motor Credit Co., 9.82%, 04/15/2012 (L)........................... 1,888 5,205 General Motors Acceptance Corp., 6.88%, 09/15/2011............................... 5,241 1,650 General Motors Acceptance Corp., 6.88%, 08/28/2012............................... 1,654 1,300 General Motors Acceptance Corp., 8.00%, 11/01/2031 (G)........................... 1,393 1,365 Hertz Corp., 10.50%, 01/01/2016 (I)(G)....................... 1,498 1,190 Host Marriott L.P., 6.75%, 06/01/2016............................... 1,159 865 LPL Holdings, Inc., 10.75%, 12/15/2015 (I).......................... 913 1,320 Multiplan Corp., 10.38%, 04/15/2016 (I).......................... 1,320 EUR 600 Nell Af Sarl, 8.38%, 08/15/2015 (I)........................... 805 600 Nell Af Sarl, 8.38%, 08/15/2015 (I)(G)........................ 609 1,250 Rainbow National Services LLC, 10.38%, 09/01/2014 (I).......................... 1,391
PRINCIPAL MARKET AMOUNT VALUE (W) --------- --------- FINANCE -- (CONTINUED) $ 1,425 United Rentals NA, Inc., 6.50%, 02/15/2012............................... $ 1,389 1,640 Universal City Florida, 10.24%, 05/01/2010 (L).......................... 1,687 1,295 Universal Hospital Services, 10.13%, 11/01/2011.............................. 1,369 -------- 39,005 -------- HEALTH CARE -- 4.1% 1,150 Accellent, Inc., 10.50%, 12/01/2013.............................. 1,202 1,430 Biovail Corp., 7.88%, 04/01/2010............................... 1,434 1,040 CRC Health Corp., 10.75%, 02/01/2016.............................. 1,087 1,200 Encore Medical Finance, 11.75%, 11/15/2014 (I).......................... 1,200 1,950 HCA, Inc., 7.88%, 02/01/2011 (G)........................... 1,872 1,400 Healthsouth Corp., 11.32%, 06/15/2014 (I)(L)....................... 1,432 1,300 IASIS Healthcare Capital Corp., 8.75%, 06/15/2014............................... 1,255 1,080 National Mentor Holdings, Inc., 11.25%, 07/01/2014 (I).......................... 1,134 1,450 Tenet Healthcare Corp., 6.50%, 06/01/2012............................... 1,256 -------- 11,872 -------- SERVICES -- 15.2% 1,125 Allbritton Communications Co., 7.75%, 12/15/2012............................... 1,131 505 Allied Waste North America, Inc., 5.75%, 02/15/2011............................... 486 400 Allied Waste North America, Inc., 7.88%, 04/15/2013............................... 411 280 Allied Waste North America, Inc., 9.25%, 09/01/2012............................... 298 1,000 AMC Entertainment, Inc., 11.00%, 02/01/2016.............................. 1,106 1,260 Ameripath, Inc., 10.50%, 04/01/2013.............................. 1,355 795 Cablevision Systems Corp., 9.87%, 04/01/2009 (L)(G)........................ 833 1,190 Charter Communications Operating LLC, 8.38%, 04/30/2014 (I)........................... 1,223 1,570 Clarke American Corp., 11.75%, 12/15/2013.............................. 1,641 1,295 Compucom Systems, Inc., 12.00%, 11/01/2014 (I).......................... 1,303 1,945 Dex Media West LLC, 8.00%, 11/15/2013............................... 1,967 1,920 Dex Media West LLC, 9.88%, 08/15/2013............................... 2,084 2,000 Dow Jones CDX HY, 8.38%, 12/29/2011 (I)(G)........................ 2,030
The accompanying notes are an integral part of these financial statements. 163 THE HARTFORD HIGH YIELD FUND SCHEDULE OF INVESTMENTS -- (CONTINUED) OCTOBER 31, 2006 (000'S OMITTED) --------------------------------------------------------------------------------
PRINCIPAL MARKET AMOUNT VALUE (W) --------- --------- CORPORATE BONDS: NON-INVESTMENT GRADE -- (CONTINUED) SERVICES -- (CONTINUED) $ 1,190 EchoStar Communications Corp., 5.75%, 05/15/2008 (G)+.......................... $ 1,200 600 EchoStar DBS Corp., 6.38%, 10/01/2011............................... 594 750 Education Management LLC, 8.75%, 06/01/2014 (I)........................... 769 750 Education Management LLC, 10.25%, 06/01/2016 (I).......................... 778 690 Herbst Gaming, Inc., 7.00%, 11/15/2014 (G)........................... 667 1,535 Knowledge Learning Center, Inc., 7.75%, 02/01/2015 (I)........................... 1,454 1,215 Liberty Media Corp., 8.25%, 02/01/2030............................... 1,194 1,415 Lodgenet Entertainment Corp., 9.50%, 06/15/2013............................... 1,514 1,480 MGM Mirage, Inc., 6.75%, 09/01/2012............................... 1,436 760 MGM Mirage, Inc., 6.75%, 04/01/2013............................... 737 750 MTR Gaming Group, Inc., 9.00%, 06/01/2012 (I)........................... 760 1,200 Nielsen Finance LLC, 10.00%, 08/01/2014 (I).......................... 1,251 1,795 Penn National Gaming, Inc., 6.75%, 03/01/2015 (G)........................... 1,750 700 Pokagon Gaming Authority, 10.38%, 06/15/2014 (I).......................... 751 1,365 Quebecor World Capital Corp., 8.75%, 03/15/2016 (I)(G)........................ 1,307 1,480 Sheridan Group, Inc., 10.25%, 08/15/2011.............................. 1,510 1,500 Sirius Satellite Radio, Inc., 9.63%, 08/01/2013 (G)........................... 1,463 945 Stewart Enterprises, Inc., 6.25%, 02/15/2013............................... 891 2,345 SunGard Data Systems, Inc., 10.25%, 08/15/2015 (G).......................... 2,456 290 Time Warner Telecom Holdings, Inc., 9.41%, 02/15/2011 (L)(G)........................ 296 899 Town Sports International, Inc., 9.63%, 04/15/2011............................... 948 1,420 Unisys Corp., 7.88%, 04/01/2008............................... 1,420 1,300 West Corp., 9.50%, 10/15/2014 (I)........................... 1,297 1,430 Wynn Las Vegas LLC, 6.63%, 12/01/2014............................... 1,401 645 XM Satellite Radio, Inc., 9.75%, 05/01/2014 (G)........................... 613 -------- 44,325 --------
PRINCIPAL MARKET AMOUNT (B) VALUE (W) ---------- --------- TECHNOLOGY -- 20.1% 1,287 Advanced Micro Devices, Inc., 7.75%, 11/01/2012............................... 1,310 716 Amkor Technologies, Inc., 10.50%, 05/01/2009.............................. 698 875 Broadview Networks Holdings, Inc., 11.38%, 09/01/2012 (I).......................... 908 1,460 Centennial Communications Corp., 11.12%, 01/01/2013 (L).......................... 1,518 3,695 Charter Communications Holdings LLC, 9.92%, 04/01/2011 (G)........................... 3,233 1,575 Charter Communications Operating LLC, 8.00%, 04/30/2012 (I)(G)........................ 1,607 1,200 Cincinnati Bell, Inc., 7.25%, 07/15/2013 (G)........................... 1,236 2,130 Citizens Communications Co., 9.00%, 08/15/2031............................... 2,314 1,125 Digicel Ltd., 9.25%, 09/01/2012 (I)........................... 1,167 575 Dobson Cellular Systems, 8.38%, 11/01/2011 (I)........................... 597 1,100 Dobson Communications Corp., 9.62%, 10/15/2012 (L)(G)........................ 1,117 1,300 Flextronics International Ltd., 6.50%, 05/15/2013............................... 1,292 1,490 Hawaiian Telcom Communications, Inc., 10.79%, 05/01/2013 (L).......................... 1,527 1,300 Inmarsat Finance plc, 7.63%, 06/30/2012............................... 1,341 1,590 Insight Midwest L.P., 10.50%, 11/01/2010 (G).......................... 1,646 850 Intelsat Bermuda Ltd., 11.25%, 06/15/2016 (I).......................... 925 2,150 Intelsat Bermuda Ltd., 11.58%, 06/15/2013 (I)(L)....................... 2,279 1,465 Intelsat Subsidiary Holding Co. Ltd., 8.25%, 01/15/2013............................... 1,492 1,600 Itron, Inc., 7.75%, 05/15/2012............................... 1,636 1,000 L-3 Communications Corp., 6.13%, 07/15/2013............................... 985 925 Leap Wireless International, Inc., 9.38%, 11/01/2014 (I)(G)........................ 944 495 Level 3 Financing, Inc., 9.25%, 11/01/2014 (I)........................... 498 875 Level 3 Financing, Inc., 12.25%, 03/15/2013 (G).......................... 987 1,104 Lucent Technologies, Inc., 6.45%, 03/15/2029............................... 988 1,500 MagnaChip Semiconductor, 6.88%, 12/15/2011 (G)........................... 1,260 1,425 Mediacom LLC, 9.50%, 01/15/2013............................... 1,462 1,470 Metro PCS Wireless, Inc., 9.25%, 11/01/2014 (I)........................... 1,483 EUR 750 Nordic Telecommunications Co., 8.25%, 05/01/2016 (I)........................... 1,043
The accompanying notes are an integral part of these financial statements. 164 --------------------------------------------------------------------------------
PRINCIPAL MARKET AMOUNT (B) VALUE (W) ---------- --------- CORPORATE BONDS: NON-INVESTMENT GRADE -- (CONTINUED) TECHNOLOGY -- (CONTINUED) $ 2,500 Nortel Networks Ltd., 10.75%, 07/15/2016 (I)(G)....................... $ 2,675 1,300 NTL Cable plc, 9.13%, 08/15/2016............................... 1,367 1,360 NXP B.V., 8.12%, 10/15/2013 (I)(L)(G)..................... 1,372 2,430 Qwest Communications International, Inc., 7.50%, 02/15/2014............................... 2,479 1,130 Qwest Corp., 7.50%, 06/15/2023 (G)........................... 1,141 1,000 Qwest Corp., 7.88%, 09/01/2011............................... 1,059 1,000 Rural Cellular Corp., 8.25%, 03/15/2012............................... 1,029 233 SanDisk Corp., 1.00%, 05/15/2013 (G)+.......................... 211 1,120 Sanmina-SCI Corp., 8.13%, 03/01/2016 (G)........................... 1,102 1,210 Seagate Technology Holdings, 6.80%, 10/01/2016............................... 1,195 EUR 700 Sensata Technologies B.V., 9.00%, 05/01/2016 (I)........................... 902 1,320 Solectron Global Finance Ltd., 8.00%, 03/15/2016 (G)........................... 1,328 1,210 STATS ChipPAC Ltd., 7.50%, 07/19/2010 (G)........................... 1,216 1,480 UGS Corp., 10.00%, 06/01/2012.............................. 1,598 EUR 680 Wind Acquisition, 9.75%, 12/01/2015 (I)........................... 980 1,825 Windstream Corp., 8.63%, 08/01/2016 (I)........................... 1,969 -------- 59,116 -------- TRANSPORTATION -- 0.2% 690 PHI, Inc., 7.13%, 04/15/2013 (I)........................... 652 -------- UTILITIES -- 6.8% 1,825 AES China Generating Co., 8.25%, 06/26/2010............................... 1,808 1,395 Atlas Pipeline Partners L.P., 8.13%, 12/15/2015............................... 1,423 2,000 Chivor S.S. E.S.P., 9.75%, 12/30/2014............................... 2,220 1,600 Colorado Interstate Gas Co., 6.80%, 11/15/2015............................... 1,626 1,080 Copano Energy LLC, 8.13%, 03/01/2016............................... 1,099
PRINCIPAL MARKET AMOUNT VALUE (W) --------- --------- UTILITIES -- (CONTINUED) $ 1,465 Edison Mission Energy, 7.50%, 06/15/2013 (I)........................... $ 1,505 698 Elwood Energy LLC, 8.16%, 07/05/2026............................... 739 1,350 Markwest Energy Partners L.P., 8.50%, 07/15/2016 (I)........................... 1,360 1,000 Mirant Americas Generation LLC, 8.30%, 05/01/2011............................... 1,013 880 NRG Energy, Inc., 7.25%, 02/01/2014............................... 890 1,485 NRG Energy, Inc., 7.38%, 02/01/2016............................... 1,502 700 PSEG Energy Holdings LLC, 8.50%, 06/15/2011............................... 747 1,475 Reliant Energy, Inc., 6.75%, 12/15/2014............................... 1,407 545 Semgroup L.P., 8.75%, 11/15/2015, 8.75%, 11/15/2015 (I)........................... 549 1,260 Tenaska Alabama Partners L.P., 7.00%, 06/30/2021 (I)........................... 1,247 850 Transcontinental Gas Pipe Line Corp., 6.40%, 04/15/2016............................... 846 -------- 19,981 -------- Total corporate bonds: non-investment grade (cost $272,207)................................. $276,079 -------- SENIOR FLOATING RATE LOAN INTERESTS (V) -- 0.8% HEALTH CARE -- 0.8% $ 2,300 HCA, Inc., 9.37, 09/15/2007 (AA)(Q)............... $ 2,277 -------- Total senior floating rate loan interests (cost $2,300)................................... $ 2,277 -------- SHARES --------- COMMON STOCK -- 0.0% CONSUMER CYCLICAL -- 0.0% 1 Hosiery Corp. of America, Inc. Class A (D)(H)(A).. $ -- -------- TECHNOLOGY -- 0.0% -- XO Holdings, Inc. (D)(H)(G)....................... -- -------- Total common stock (cost $21)...................................... $ -- -------- WARRANTS -- 0.0% TECHNOLOGY -- 0.0% -- XO Holdings, Inc. ................................ $ -- -------- Total warrants (cost $--)...................................... $ -- --------
The accompanying notes are an integral part of these financial statements. 165 THE HARTFORD HIGH YIELD FUND SCHEDULE OF INVESTMENTS -- (CONTINUED) OCTOBER 31, 2006 (000'S OMITTED) --------------------------------------------------------------------------------
MARKET SHARES VALUE (W) --------- --------- PREFERRED STOCK -- 0.0% TECHNOLOGY -- 0.0% 20 Adelphia Communications Corp. (D)+................ $ 2 -------- Total preferred stock (cost $488)..................................... $ 2 -------- Total long term investments (cost $286,554)................................. $289,821 -------- SHORT-TERM INVESTMENTS -- 20.8% SECURITIES PURCHASED WITH PROCEEDS FROM SECURITY LENDING -- 20.8% $ 60,694 Navigator Prime Portfolio......................... 60,694 -------- Total short-term investments (cost $60,694).................................. $ 60,694 -------- Total investments in securities (cost $347,248) (C)............................. $350,515 ========
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 10.95% of total net assets at October 31, 2006. (A) The aggregate value of securities valued in good faith at fair value by, or under the direction of, the Funds' Board of Directors at October 31, 2006 rounds to zero. (B) All principal amounts are in U.S. dollars unless otherwise indicated. EUR -- EURO
(C) At October 31, 2006, the cost of securities for federal income tax purposes was $347,632 and the aggregate gross unrealized appreciation and depreciation based on that cost were: Unrealized appreciation......................... $ 5,380 Unrealized depreciation......................... (2,497) ------- Net unrealized appreciation..................... $ 2,883 =======
(D) Currently non-income producing. (F) The company is in bankruptcy. The bank loan or bond held by the fund is not in default. (G) Security is partially on loan at October 31, 2006. (H) The following securities are considered illiquid. Illiquid securities are often purchased in private placement transactions, are not registered under the Securities Act of 1933 and may have contractual restrictions on resale. A security may also be considered illiquid if the security lacks a readily available market or if its valuation has not changed for a certain period of time.
PERIOD COST ACQUIRED SHARES/PAR SECURITY BASIS -------- ---------- -------- ----- October, 1994 1 Hosiery Corp. of America, $21 Inc. Class A - 144A May, 2006 -- XO Holdings, Inc. --
The aggregate value of these securities at October 31, 2006 rounds to zero. (I) 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 qualified institutional buyers. 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, 2006, was $63,429, which represents 21.72% of total net assets. (L) Variable rate securities; the rate reported is the coupon rate in effect at October 31, 2006. (AA) The interest rate disclosed for these securities represents an estimated yield as of October 31, 2006. (Q) The cost of securities purchased on a when-issued or delayed delivery basis at October 31, 2006 was $2,850. (V) Senior loans in which the Fund invests generally pay interest at rates which are periodically adjusted by reference to a base short-term, floating lending rate plus a premium. These base lending rates are generally (i) the lending rate offered by one or more major European banks, such as the London Inter-Bank Offered Rate (LIBOR), (ii) the prime rate offered by one or more major United States Banks, or (iii) the bank's certificate of deposit rate. Senior floating rate interests often require prepayments from excess cash flows or permit the borrower to repay at its election. The rate at which the borrower repays cannot be predicted with accuracy. As a result, the actual remaining maturity may be substantially less than the stated maturities shown. The interest rate indicated is the rate in effect at October 31, 2006. + Convertible debt security. (W) See Note 2b of accompanying Notes to Financial Statements regarding valuation of securities. FORWARD FOREIGN CURRENCY CONTRACTS OUTSTANDING AT OCTOBER 31, 2006
UNREALIZED MARKET CONTRACT DELIVERY APPRECIATION DESCRIPTION TRANSACTION VALUE AMOUNT DATE (DEPRECIATION) ----------- ----------- ------ -------- ---------- -------------- Euro Buy $2,955 $2,900 12/01/2006 $ 55 Euro Sell 6,029 6,055 12/01/2006 26 Euro Sell 2,955 2,920 12/01/2006 (35) ---- $ 46 ====
The accompanying notes are an integral part of these financial statements. 166 THE HARTFORD INCOME ALLOCATION FUND SCHEDULE OF INVESTMENTS OCTOBER 31, 2006 (000'S OMITTED) --------------------------------------------------------------------------------
MARKET SHARES VALUE (W) --------- --------- AFFILIATED INVESTMENT COMPANIES -- 99.9% FIXED INCOME FUNDS -- 92.8% 301 Hartford Floating Rate Fund, Class Y.............. $ 3,048 587 Hartford High Yield Fund, Class Y................. 4,653 320 Hartford Income Fund, Class Y..................... 3,301 606 Hartford Inflation Plus Fund, Class Y............. 6,337 923 Hartford Short Duration Fund, Class Y............. 9,123 902 Hartford Total Return Bond Fund, Class Y.......... 9,658 3 Hartford U.S. Government Securities Fund, Class Y............................................... 32 ------- Total fixed income funds (cost $36,335).................................. $36,152 ------- MONEY MARKET FUND -- 7.1% 2,765 Hartford Money Market Fund, Class Y............... $ 2,765 ------- Total money market fund (cost $2,765)................................... $ 2,765 ------- Total investments in affiliated investment companies (cost $39,100) (C).............................. $38,917 =======
Note: Percentage of investments as shown is the ratio of the total market value to total net assets. (C) At October 31, 2006, the cost of securities for federal income tax purposes was $39,507 and the aggregate gross unrealized appreciation and depreciation based on that cost were: Unrealized appreciation........................... $ 12 Unrealized depreciation........................... (602) ----- Net unrealized depreciation....................... $(590) =====
(W) See Note 2b of accompanying Notes to Financial Statements regarding valuation of securities. The accompanying notes are an integral part of these financial statements. 167 THE HARTFORD INCOME FUND SCHEDULE OF INVESTMENTS OCTOBER 31, 2006 (000'S OMITTED) --------------------------------------------------------------------------------
PRINCIPAL MARKET AMOUNT VALUE (W) --------- --------- MUNICIPAL BONDS -- 0.1% GENERAL OBLIGATIONS -- 0.1% $ 150 State of Illinois, Taxable Pension, 5.10%, 06/01/2033............................... $ 145 -------- Total municipal bonds (cost $150)..................................... $ 145 -------- ASSET & COMMERCIAL MORTGAGE BACKED SECURITIES -- 13.0% FINANCE -- 12.7% $ 137 AmeriCredit Automobile Receivables Trust, 5.20%, 03/06/2011............................... $ 137 3,968 Banc of America Commercial Mortgage, Inc., 4.08%, 12/10/2042 (P)........................... 75 3,106 Banc of America Commercial Mortgage, Inc., 5.50%, 11/10/2039 (I)(P)........................ 80 25,174 Banc of America Commercial Mortgage, Inc., 5.50%, 07/10/2043 (I)(P)........................ 261 8,075 Banc of America Commercial Mortgage, Inc., 5.75%, 06/10/2039 (P)........................... 75 120 Banc of America Securities Auto Trust, 4.49%, 02/18/2013............................... 118 54 Bank One Issuance Trust, 6.46%, 12/15/2010 (L)........................... 55 200 Bayview Commercial Asset Trust, 5.69%, 04/25/2036 (I)(L)........................ 200 250 Bayview Financial Acquisition Trust, 5.82%, 02/28/2040 (I)(L)........................ 251 200 Bear Stearns Commercial Mortgage Securities, Inc., 5.29%, 06/11/2041............................... 201 3,202 Bear Stearns Commercial Mortgage Securities, Inc., 5.50%, 02/11/2041 (I)(P)........................ 54 50 Capital Auto Receivables Asset Trust, 4.73%, 09/15/2010............................... 49 50 Capital Auto Receivables Asset Trust, 5.77%, 05/20/2010 (I)........................... 50 75 Capital Auto Receivables Asset Trust, 6.15%, 04/20/2011 (I)........................... 75 230 Capital One Auto Finance Trust, 4.32%, 05/15/2010............................... 227 230 Capital Trust RE CDO Ltd., 6.57%, 10/20/2043 (I)(L)........................ 230 1,372 CBA Commercial Small Balance Commercial Mortgage, 7.00%, 07/25/2035 (I)(P)........................ 67 1,021 CBA Commercial Small Balance Commercial Mortgage, 7.00%, 06/25/2038 (I)(P)........................ 67 20 Chase Manhattan Auto Owner Trust, 2.57%, 02/16/2010............................... 20 150 Chuo Mitsui Trust & Banking Ltd., 5.51%, 12/29/2049 (I)........................... 144 200 Citibank Credit Card Issuance Trust, 5.70%, 05/15/2013............................... 202
PRINCIPAL MARKET AMOUNT VALUE (W) --------- --------- FINANCE -- (CONTINUED) $ 2,328 Citigroup Commercial Mortgage Trust, 4.10%, 10/15/2041 (I)(P)........................ $ 83 300 Citigroup Commercial Mortgage Trust, 5.06%, 05/15/2043............................... 292 500 Citigroup Commercial Mortgage Trust, 5.91%, 03/15/2049 (L)........................... 517 6,262 Commercial Mortgage Pass-Through Certificates, 5.50%, 03/10/2039 (I)(P)........................ 138 200 Commercial Mortgage Pass-Through Certificates, 5.76%, 02/05/2019 (L)........................... 201 49 Countrywide Asset-Backed Certificates, 5.46%, 07/25/2035............................... 49 2,818 CS First Boston Mortgage Securities Corp., 4.15%, 11/15/2037 (I)(P)........................ 82 200 CS First Boston Mortgage Securities Corp., 7.27%, 11/15/2019 (I)(L)........................ 196 200 Daimler Chrysler Auto Trust, 5.14%, 09/08/2012............................... 200 100 Equity One ABS, Inc., 5.46%, 12/25/2033............................... 99 50 Equity One ABS, Inc., 7.82%, 07/25/2034 (L)........................... 51 164 First Union-Lehman Brothers-Bank of America, 6.56%, 11/18/2035............................... 166 200 Ford Credit Auto Owner Trust, 4.19%, 07/15/2009............................... 198 13,280 GE Business Loan Trust, 6.14%, 05/15/2034 (I)(P)........................ 166 178 GE Business Loan Trust, 6.32%, 05/15/2034 (I)(L)........................ 178 200 GE Capital Commercial Mortgage Corp., 5.00%, 12/10/2037............................... 199 1,000 GE Capital Commercial Mortgage Corp., 5.52%, 03/10/2044 (L)........................... 1,004 55,375 GE Capital Commercial Mortgage Corp., 6.35%, 11/10/2045 (I)(P)........................ 124 140 GMAC Commercial Mortgage Securities, Inc., 3.34%, 05/10/2036............................... 133 200 GMAC Commercial Mortgage Securities, Inc., 4.65%, 04/10/2040............................... 196 200 GMAC Commercial Mortgage Securities, Inc., 5.30%, 08/10/2038............................... 200 270 GMAC Mortgage Corp. Loan Trust, 5.75%, 10/25/2036............................... 271 88 Goldman Sachs Auto Loan Trust, 4.98%, 11/15/2013............................... 88 48 Green Tree Financial Corp., 6.48%, 12/01/2030............................... 48 17 Green Tree Financial Corp., 7.30%, 01/15/2026............................... 17 15 Green Tree Financial Corp., 7.35%, 05/15/2027............................... 16 200 Greenwich Capital Commercial Funding Corp., 4.02%, 01/05/2036............................... 195
The accompanying notes are an integral part of these financial statements. 168 --------------------------------------------------------------------------------
PRINCIPAL MARKET AMOUNT VALUE (W) --------- --------- ASSET & COMMERCIAL MORTGAGE BACKED SECURITIES -- (CONTINUED) FINANCE -- (CONTINUED) $ 108 Hasco NIM Trust, 6.25%, 12/26/2035 (I)........................... $ 107 94 Home Equity Asset Trust, 4.75%, 06/27/2035 (I)........................... 93 200 Hyundai Auto Receivables Trust, 5.52%, 11/15/2012............................... 200 4,640 JP Morgan Chase Commercial Mortgage Securities Corp., 4.07%, 01/15/2042 (P)........................... 68 200 JP Morgan Chase Commercial Mortgage Securities Corp., 4.13%, 01/12/2038............................... 195 161 JP Morgan Chase Commercial Mortgage Securities Corp., 4.37%, 10/12/2037............................... 158 188 JP Morgan Chase Commercial Mortgage Securities Corp., 4.95%, 01/12/2037............................... 183 220 JP Morgan Chase Commercial Mortgage Securities Corp., 5.47%, 04/15/2043 (L)........................... 223 2,349 JP Morgan Chase Commercial Mortgage Securities Corp., 5.50%, 01/15/2038 (I)(P)........................ 66 250 JP Morgan Chase Commercial Mortgage Securities Corp., 5.54%, 12/12/2044............................... 252 17,610 JP Morgan Chase Commercial Mortgage Securities Corp., 6.00%, 09/12/2037 (I)(P)........................ 197 350 JP Morgan Chase Commercial Mortgage Securities Corp., 6.07%, 02/15/2020 (I)(L)........................ 350 190 JP Morgan Chase Commercial Mortgage Securities Corp., 6.16%, 05/12/2034............................... 198 450 LB-UBS Commercial Mortgage Trust, 5.22%, 02/15/2031 (L)........................... 447 25,969 LB-UBS Commercial Mortgage Trust, 5.26%, 06/15/2036 (I)(P)........................ 162 200 Lehman Brothers Commercial Mortgage Trust, 6.13%, 07/15/2018 (I)(L)........................ 199 120 Lehman Brothers Small Balance Commercial, 5.62%, 09/25/2036 (I)........................... 120 250 LNR CDO Ltd., 6.17%, 05/28/2043 (I)(L)........................ 250 103 Long Beach Asset Holdings Corp., 5.78%, 04/25/2046 (I)........................... 103 350 Marlin Leasing Receivables LLC, 4.63%, 11/17/2008 (I)........................... 347 81 Marlin Leasing Receivables LLC, 5.09%, 08/15/2012 (I)........................... 81 240 Marlin Leasing Receivables LLC, 5.33%, 09/16/2013............................... 241
PRINCIPAL MARKET AMOUNT VALUE (W) --------- --------- FINANCE -- (CONTINUED) $ 200 Merrill Lynch Mortgage Trust, 4.92%, 10/12/2041............................... $ 194 200 Morgan Stanley Capital I, 4.17%, 12/15/2041............................... 195 16,357 Morgan Stanley Capital I, 6.00%, 06/12/2047 (I)(P)........................ 202 103 Morgan Stanley Dean Witter Capital I, 5.38%, 01/15/2039............................... 103 33 Navistar Financial Corp. Owner Trust, 3.08%, 11/15/2009............................... 33 150 Providian Master Note Trust, 5.87%, 03/15/2015 (L)........................... 150 70 PSE&G Transition Funding LLC, 6.61%, 06/15/2015............................... 75 80 Renaissance Home Equity Loan Trust, 5.75%, 05/25/2036 (L)........................... 81 200 Renaissance Home Equity Loan Trust, 6.16%, 05/25/2036............................... 201 10 Soundview Home Equity Loan Trust, 8.64%, 05/25/2030............................... 10 250 Wachovia Auto Loan Owner Trust, 5.15%, 07/20/2012 (I)........................... 250 260 Wachovia Auto Loan Owner Trust, 5.29%, 06/20/2012 (I)........................... 261 200 Wachovia Bank Commercial Mortgage Trust, 4.39%, 02/15/2041............................... 193 100 Wachovia Bank Commercial Mortgage Trust, 4.87%, 02/15/2035............................... 98 6,987 Wachovia Bank Commercial Mortgage Trust, 5.50%, 02/15/2041 (I)(P)........................ 165 18 WFS Financial Owner Trust, 3.05%, 12/20/2010............................... 18 26 WFS Financial Owner Trust, 3.13%, 05/17/2012............................... 25 157 WFS Financial Owner Trust, 3.25%, 05/20/2011............................... 156 -------- 14,395 -------- TRANSPORTATION -- 0.3% 88 Continental Airlines, Inc., 6.80%, 08/02/2018............................... 88 100 Continental Airlines, Inc., 7.49%, 10/02/2010............................... 105 130 Continental Airlines, Inc., 7.57%, 12/01/2006............................... 130 -------- 323 -------- Total asset & commercial mortgage backed securities (cost $14,806).................................. $ 14,718 -------- CORPORATE BONDS: INVESTMENT GRADE -- 20.9% BASIC MATERIALS -- 0.6% $ 125 Falconbridge Ltd., 6.00%, 10/15/2015............................... $ 126 125 ICI Wilmington, Inc., 5.63%, 12/01/2013............................... 124
The accompanying notes are an integral part of these financial statements. 169 THE HARTFORD INCOME FUND SCHEDULE OF INVESTMENTS -- (CONTINUED) OCTOBER 31, 2006 (000'S OMITTED) --------------------------------------------------------------------------------
PRINCIPAL MARKET AMOUNT VALUE (W) --------- --------- CORPORATE BONDS: INVESTMENT GRADE -- (CONTINUED) BASIC MATERIALS -- (CONTINUED) $ 100 International Paper Co., 5.25%, 04/01/2016............................... $ 96 65 Lubrizol Corp., 5.50%, 10/01/2014............................... 64 230 Vale Overseas Ltd., 8.25%, 01/17/2034............................... 266 -------- 676 -------- CAPITAL GOODS -- 0.2% 200 Hutchison Whampoa International Ltd., 6.25%, 01/24/2014 (I)........................... 208 -------- CONSUMER CYCLICAL -- 1.0% 150 Centex Corp., 5.70%, 05/15/2014............................... 148 75 CRH America, Inc., 5.30%, 10/15/2013............................... 73 100 D.R. Horton, Inc., 5.63%, 09/15/2014............................... 96 200 DaimlerChrysler N.A. Holdings Corp., 6.50%, 11/15/2013............................... 207 125 JC Penney Corp., Inc., 7.95%, 04/01/2017............................... 143 210 K. Hovnanian Enterprises, 6.00%, 01/15/2010............................... 200 100 Lennar Corp., 5.95%, 03/01/2013............................... 99 125 Pulte Homes, Inc., 5.20%, 02/15/2015............................... 118 -------- 1,084 -------- CONSUMER STAPLES -- 0.4% 420 Anheuser-Busch Cos., Inc., 5.75%, 01/15/2011............................... 418 -------- ENERGY -- 1.3% 165 Amerada Hess Corp., 7.13%, 03/15/2033............................... 184 250 Anadarko Petroleum Corp., 5.95%, 09/15/2016............................... 254 215 Anadarko Petroleum Corp., 6.45%, 09/15/2036............................... 223 75 Consumers Energy Co., 5.38%, 04/15/2013............................... 74 50 Consumers Energy Co., 6.00%, 02/15/2014............................... 51 160 Energy Transfer Partners L.P., 6.13%, 02/15/2017............................... 163 175 Nexen, Inc., 7.88%, 03/15/2032............................... 209 255 TNK-BP Finance S.A., 7.50%, 07/18/2016 (I)........................... 267 -------- 1,425 --------
PRINCIPAL MARKET AMOUNT VALUE (W) --------- --------- FINANCE -- 10.3% $ 125 Ace INA Holdings, Inc., 5.88%, 06/15/2014............................... $ 128 100 AES El Salvador Trust, 6.75%, 02/01/2016 (I)........................... 99 245 Aetna, Inc., 5.75%, 06/15/2011............................... 249 310 Aetna, Inc., 6.63%, 06/15/2036............................... 334 100 AMB Property L.P., 7.50%, 06/30/2018............................... 106 672 American Express Credit Corp., 6.80%, 09/01/2066............................... 715 750 Ameriprise Financial, Inc., 7.52%, 06/01/2066............................... 816 150 Archstone-Smith Operating Trust, 5.25%, 05/01/2015............................... 147 150 Arden Realty L.P., 5.20%, 09/01/2011............................... 150 100 Camden Property Trust, 5.00%, 06/15/2015............................... 96 125 Capital One Bank, 5.13%, 02/15/2014............................... 123 75 Capital One Bank, 6.50%, 06/13/2013............................... 79 150 CIT Group, Inc., 5.13%, 09/30/2014............................... 146 90 Deutsche Bank Capital Funding Trust, 5.63%, 01/19/2016 (I)........................... 88 450 ERAC USA Finance Co., 5.90%, 11/15/2015 (I)........................... 455 100 Farmers Exchange Capital, 7.20%, 07/15/2048 (I)........................... 103 125 Goldman Sachs Group, Inc., 5.15%, 01/15/2014............................... 123 75 Goldman Sachs Group, Inc., 5.25%, 04/01/2013............................... 75 500 Goldman Sachs Group, Inc., 6.45%, 05/01/2036............................... 526 225 HSBC Capital Funding L.P., 4.61%, 12/29/2049 (I)(L)........................ 210 165 iStar Financial, Inc., 5.70%, 03/01/2014............................... 164 280 iStar Financial, Inc., 5.95%, 10/15/2013 (I)........................... 282 50 JP Morgan Chase & Co., 5.13%, 09/15/2014............................... 49 200 Kazkommerts International B.V., 8.00%, 11/03/2015 (I)........................... 206 200 Kuzneski (Bank of Moscow), 7.50%, 11/25/2015 (L)........................... 204 157 Lehman Brothers Holdings, Inc., 5.50%, 04/04/2016............................... 157 235 Liberty Mutual Group, 7.50%, 08/15/2036............................... 261 700 Lincoln National Corp., 7.00%, 05/17/2066 (L)........................... 737
The accompanying notes are an integral part of these financial statements. 170 --------------------------------------------------------------------------------
PRINCIPAL MARKET AMOUNT VALUE (W) --------- --------- CORPORATE BONDS: INVESTMENT GRADE -- (CONTINUED) FINANCE -- (CONTINUED) $ 175 MBNA Corp., 6.13%, 03/01/2013............................... $ 183 200 Mizuho Financial Group, Inc., 5.79%, 04/15/2014 (I)........................... 202 175 Morgan Stanley, 6.25%, 08/09/2026............................... 183 100 Natexis AMBS Co. LLC, 8.44%, 12/29/2049 (I)........................... 105 150 Northern Rock plc, 5.60%, 04/30/2049 (I)........................... 146 200 Rabobank Capital Funding II, 5.26%, 12/31/2049 (I)........................... 196 300 RBD Capital, 6.50%, 08/11/2008............................... 302 158 Residential Capital Corp., 6.00%, 02/22/2011............................... 158 110 Residential Capital Corp., 6.38%, 06/30/2010............................... 112 100 Resona Bank Ltd., 5.85%, 12/31/2049 (I)........................... 98 100 RSHB Capital, 7.18%, 05/16/2013 (I)........................... 105 100 Sagicor Financial Ltd., 7.50%, 05/12/2016 (I)........................... 101 100 Santander Central Hispano Issuances Ltd., 7.63%, 09/14/2010............................... 109 75 Shurgard Storage Centers, Inc., 5.88%, 03/15/2013............................... 77 100 Sumitomo Mitsui Banking, 5.63%, 12/29/2049 (I)........................... 98 100 Suntrust Preferred Capital, 5.85%, 12/29/2049 (L)........................... 101 100 Swedbank Foreningssparbanken, 9.00%, 12/29/2049 (I)........................... 111 150 Toll Brothers Finance Corp., 5.15%, 05/15/2015............................... 136 125 TuranAlem Finance B.V., 8.00%, 03/24/2014............................... 126 100 UFJ Finance Aruba AEC, 6.75%, 07/15/2013............................... 107 685 USB Capital IX, 6.19%, 03/29/2049 (L)........................... 699 200 Ventas Realty L.P., 7.13%, 06/01/2015............................... 206 170 VTB Capital, 7.50%, 10/12/2011 (K)........................... 181 400 Washington Mutual Preferred Funding, 6.53%, 12/29/2049 (I)........................... 398 100 Washington Mutual, Inc., 4.63%, 04/01/2014............................... 94 190 Western Union Co., 5.93%, 10/01/2016 (I)........................... 193 150 Westfield Capital Corp. Ltd., 5.13%, 11/15/2014 (I)........................... 146
PRINCIPAL MARKET AMOUNT VALUE (W) --------- --------- FINANCE -- (CONTINUED) $ 50 Westpac Capital Trust III, 5.82%, 12/29/2049 (I)........................... $ 50 100 Westpac Capital Trust IV, 5.26%, 12/29/2049 (I)........................... 94 -------- 11,645 -------- FOREIGN GOVERNMENTS -- 0.1% 80 Argentina (Republic of), 7.00%, 09/12/2013............................... 75 30 El Salvador (Republic of), 7.65%, 06/15/2035............................... 33 25 El Salvador (Republic of), 8.25%, 04/10/2032 (I)........................... 29 -------- 137 -------- HEALTH CARE -- 0.3% 290 Teva Pharmaceuticals Finance LLC, 6.15%, 02/01/2036............................... 284 100 Universal Health Services, Inc., 6.75%, 11/15/2011............................... 103 -------- 387 -------- SERVICES -- 2.2% 175 Belo Corp., 7.25%, 09/15/2027............................... 171 200 COX Communications, Inc., 4.63%, 06/01/2013............................... 187 190 COX Communications, Inc., 5.45%, 12/15/2014............................... 186 30 Electronic Data Systems Corp., 3.88%, 07/15/2023 +............................. 31 150 Hyatt Equities LLC, 6.88%, 06/15/2007 (I)........................... 151 150 Marriott International, Inc., 5.81%, 11/10/2015............................... 148 150 Mashantucket Western Pequot Revenue Bond, 5.91%, 09/01/2021 (I)........................... 145 150 News America Holdings, Inc., 7.75%, 01/20/2024............................... 168 50 News America Holdings, Inc., 9.25%, 02/01/2013............................... 59 100 Sheraton Holding Corp., 7.38%, 11/15/2015............................... 101 50 Time Warner Entertainment Co. L.P., 8.38%, 03/15/2023............................... 59 410 Time Warner Entertainment Co. L.P., 8.38%, 07/15/2033............................... 500 160 Turner Broadcasting System, Inc., 8.38%, 07/01/2013............................... 181 430 Viacom, Inc., 6.88%, 04/30/2036............................... 433 -------- 2,520 --------
The accompanying notes are an integral part of these financial statements. 171 THE HARTFORD INCOME FUND SCHEDULE OF INVESTMENTS -- (CONTINUED) OCTOBER 31, 2006 (000'S OMITTED) --------------------------------------------------------------------------------
PRINCIPAL MARKET AMOUNT VALUE (W) --------- --------- CORPORATE BONDS: INVESTMENT GRADE -- (CONTINUED) TECHNOLOGY -- 2.3% $ 140 America Movil S.A. de C.V., 6.38%, 03/01/2035............................... $ 137 210 Cingular Wireless Services, Inc., 8.13%, 05/01/2012............................... 237 100 Comcast Cable Communications, Inc., 6.75%, 01/30/2011............................... 105 100 Comcast Cable Communications, Inc., 8.88%, 05/01/2017............................... 121 150 Deutsche Telekom International Finance B.V., 5.25%, 07/22/2013............................... 147 150 France Telecom S.A., 7.75%, 03/01/2011 (L)........................... 165 150 Motorola, Inc., 8.00%, 11/01/2011............................... 167 392 Siemens Finance, 6.13%, 08/17/2026 (I)........................... 408 100 Sprint Capital Corp., 6.90%, 05/01/2019............................... 105 175 Sprint Capital Corp., 8.75%, 03/15/2032............................... 216 230 Telecom Italia Capital, 7.20%, 07/18/2036............................... 242 150 Tele-Communications, Inc., 7.88%, 08/01/2013............................... 168 275 Telefonica Emisiones SAU, 6.42%, 06/20/2016............................... 285 75 Valor Telecommunications Enterprises LLC, 7.75%, 02/15/2015............................... 80 -------- 2,583 -------- TRANSPORTATION -- 0.3% 125 American Airlines, Inc., 7.86%, 10/01/2011............................... 135 110 Carnival Corp., 6.65%, 01/15/2028............................... 117 100 Continental Airlines, Inc., 6.56%, 02/15/2012............................... 104 -------- 356 -------- UTILITIES -- 1.9% 100 Appalachian Power Co., 5.00%, 06/01/2017............................... 94 75 Detroit Edison Securitizaton, 6.19%, 03/01/2013............................... 78 420 Dominion Resources, Inc., 7.20%, 09/15/2014............................... 459 360 Kinder Morgan Finance Co., 5.70%, 01/05/2016............................... 334 125 Kinder Morgan, Inc., 5.15%, 03/01/2015............................... 113 165 NGC Corp., 7.13%, 05/15/2018............................... 153 152 Oneok Partners L.P., 6.15%, 10/01/2016............................... 154
PRINCIPAL MARKET AMOUNT VALUE (W) --------- --------- UTILITIES -- (CONTINUED) $ 280 Oneok Partners L.P., 6.65%, 10/01/2036............................... $ 288 100 Texas-New Mexico Power Co., 6.13%, 06/01/2008............................... 101 400 TransAlta Corp., 5.75%, 12/15/2013............................... 400 -------- 2,174 -------- Total corporate bonds: investment grade (cost $23,400).................................. $ 23,613 -------- CORPORATE BONDS: NON-INVESTMENT GRADE -- 30.4% BASIC MATERIALS -- 3.2% $ 100 Asia Aluminum Holdings Ltd., 8.00%, 12/23/2011 (I)........................... $ 98 200 Boise Cascade LLC, 7.13%, 10/15/2014............................... 189 225 Bowater, Inc., 8.39%, 03/15/2010 (L)........................... 227 120 Bowater, Inc., 9.50%, 10/15/2012............................... 121 100 California Steel Industries, Inc., 6.13%, 03/15/2014............................... 93 150 Chaparral Steel Co., 10.00%, 07/15/2013.............................. 168 120 Chemtura Corp., 6.88%, 06/01/2016............................... 117 100 Citigroup (Jsc Severstal), 9.25%, 04/19/2014............................... 108 110 Crown Americas, Inc., 7.75%, 11/15/2015............................... 113 225 Equistar Chemicals L.P., 8.75%, 02/15/2009............................... 234 100 Evraz Group S.A., 8.25%, 11/10/2015 (I)........................... 103 165 Georgia Gulf Corp., 10.75%, 10/15/2016 (I).......................... 161 225 Goodyear Tire & Rubber Co., 11.25%, 03/01/2011.............................. 248 100 Graham Packaging Co., Inc., 9.88%, 10/15/2014............................... 100 125 Huntsman International LLC, 7.88%, 11/13/2014 (Q)(I)........................ 125 102 Koppers, Inc., 9.88%, 10/15/2013............................... 110 200 Norampac, Inc., 6.75%, 06/01/2013............................... 193 250 Owens-Illinois, Inc., 7.80%, 05/15/2018............................... 243 250 Peabody Energy Corp., 6.88%, 03/15/2013............................... 254 150 PolyOne Corp., 8.88%, 05/01/2012............................... 152 150 Smurfit Kappa Funding PLC, 9.63%, 10/01/2012............................... 159 100 Smurfit-Stone Container Enterprises, Inc., 8.38%, 07/01/2012............................... 98
The accompanying notes are an integral part of these financial statements. 172 --------------------------------------------------------------------------------
PRINCIPAL MARKET AMOUNT VALUE (W) --------- --------- CORPORATE BONDS: NON-INVESTMENT GRADE -- (CONTINUED) BASIC MATERIALS -- (CONTINUED) $ 50 Vedanta Resource plc, 6.63%, 02/22/2010............................... $ 49 150 Verso Paper Holdings LLC, 11.38%, 08/01/2016 (I).......................... 152 -------- 3,615 -------- CAPITAL GOODS -- 0.8% 450 Bombardier, Inc., 6.30%, 05/01/2014 (I)........................... 413 100 Bombardier, Inc., 6.75%, 05/01/2012 (I)........................... 97 372 Xerox Corp., 6.75%, 02/01/2017............................... 379 -------- 889 -------- CONSUMER CYCLICAL -- 3.4% 100 Albertson's, Inc., 7.25%, 05/01/2013............................... 101 350 ArvinMeritor, Inc., 8.75%, 03/01/2012............................... 344 85 Asbury Automotive Group, Inc., 9.00%, 06/15/2012............................... 88 150 Autonation, Inc., 7.37%, 04/15/2013 (L)........................... 151 200 Beazer Homes USA, Inc., 8.63%, 05/15/2011............................... 204 130 Delhaize America, Inc., 9.00%, 04/15/2031............................... 153 245 Ford Capital B.V., 9.50%, 06/01/2010............................... 239 310 General Motors Corp., 6.38%, 05/01/2008............................... 304 100 Grupo Gigante SA, 8.75%, 04/13/2016............................... 101 70 Interline Brands, Inc., 8.13%, 06/15/2014............................... 72 180 K Hovnanian Enterprises, 8.63%, 01/15/2017............................... 186 200 KB Home & Broad Home Corp., 6.38%, 08/15/2011............................... 197 280 Michaels Stores, Inc., 11.38%, 11/01/2016 (I).......................... 280 150 Neiman Marcus Group, Inc., 10.38%, 10/15/2015.............................. 164 100 Perry Ellis International, Inc., 8.88%, 09/15/2013............................... 100 150 SGS International, Inc., 12.00%, 12/15/2013.............................. 155 105 Stater Brothers Holdings, Inc., 8.13%, 06/15/2012............................... 106 190 Supervalu, Inc., 7.50%, 11/15/2014............................... 193 100 Technical Olympic USA, Inc., 9.00%, 07/01/2010............................... 97
PRINCIPAL MARKET AMOUNT VALUE (W) --------- --------- CONSUMER CYCLICAL -- (CONTINUED) $ 375 Tenneco, Inc., 8.63%, 11/15/2014............................... $ 378 180 Urbi Desarrollos Urbanos, 8.50%, 04/19/2016 (K)........................... 191 -------- 3,804 -------- CONSUMER STAPLES -- 1.0% 90 Chaoda Modern Agriculture, 7.75%, 02/08/2010............................... 89 240 Constellation Brands, Inc., 7.25%, 09/01/2016............................... 244 230 Dean Foods Co., 7.00%, 06/01/2016............................... 233 250 Del Laboratories, Inc., 10.49%, 11/01/2011 (L).......................... 258 150 Dole Food Co., Inc., 8.63%, 05/01/2009............................... 147 150 Nutro Products, Inc., 10.75%, 04/15/2014 (I).......................... 161 -------- 1,132 -------- ENERGY -- 1.5% 125 Amerigas Partners L.P., 7.13%, 05/20/2016............................... 123 100 Braskem S.A., 8.00%, 01/26/2017 (I)........................... 103 100 Braskem S.A., 9.38%, 06/01/2015............................... 111 43 Chesapeake Energy Corp., 2.75%, 11/15/2035 +............................. 47 100 Chesapeake Energy Corp., 7.63%, 07/15/2013............................... 104 150 Cie Gen Geophysique, 7.50%, 05/15/2015............................... 148 150 Encore Acquisition Co., 7.25%, 12/01/2017............................... 144 150 Inergy L.P., 8.25%, 03/01/2016............................... 156 80 MEI Euro Finance Ltd., 8.75%, 05/22/2010............................... 79 100 Naftogaz Ukrainy, 8.13%, 09/30/2009............................... 97 100 Panva Gas Holdings Ltd., 8.25%, 09/23/2011............................... 100 270 Petrohawk Energy Corp., 9.13%, 07/15/2013 (I)........................... 275 100 Petrozuata Finance, Inc., 8.22%, 04/01/2017 (I)........................... 98 150 Pogo Producing Co., 7.88%, 05/01/2013 (I)........................... 153 -------- 1,738 -------- FINANCE -- 3.9% 250 American Real Estate Partners L.P., 7.13%, 02/15/2013............................... 249 200 Atlantic Broadband Finance LLC, 9.38%, 01/15/2014............................... 199
The accompanying notes are an integral part of these financial statements. 173 THE HARTFORD INCOME FUND SCHEDULE OF INVESTMENTS -- (CONTINUED) OCTOBER 31, 2006 (000'S OMITTED) --------------------------------------------------------------------------------
PRINCIPAL MARKET AMOUNT (B) VALUE (W) ---------- --------- CORPORATE BONDS: NON-INVESTMENT GRADE -- (CONTINUED) FINANCE -- (CONTINUED) $ 300 Avis Budget Car Rental, 7.91%, 05/15/2014 (I)(L)........................ $ 293 110 CCSA Finance Ltd., 7.88%, 05/17/2016 (I)........................... 112 100 Dredner (Exim Ukraine), 7.75%, 09/23/2009............................... 101 150 El Paso Performance-Linked Trust, 7.75%, 07/15/2011 (I)........................... 155 760 Ford Motor Credit Co., 5.80%, 01/12/2009............................... 726 305 Ford Motor Credit Co., 7.38%, 02/01/2011............................... 291 290 Ford Motor Credit Co., 9.82%, 04/15/2012 (L)........................... 302 675 General Motors Acceptance Corp., 6.88%, 09/15/2011............................... 680 465 General Motors Acceptance Corp., 8.00%, 11/01/2031............................... 498 150 Hertz Corp., 10.50%, 01/01/2016 (I).......................... 165 100 Host Marriott L.P., 6.38%, 03/15/2015............................... 97 100 Itabo Finance S.A., 10.88%, 10/05/2013 (I).......................... 105 125 Nell Af Sarl, 8.38%, 08/15/2015 (I)........................... 127 100 Sibacademfinance plc, 9.00%, 05/12/2009............................... 100 240 United Rentals N.A., Inc., 6.50%, 02/15/2012............................... 234 -------- 4,434 -------- FOREIGN GOVERNMENTS -- 1.0% BRL 398 Brazil (Republic of), 12.50%, 01/05/2022.............................. 183 70 Colombia (Republic of), 8.25%, 12/22/2014............................... 79 100 Colombia (Republic of), 7.22%, 11/16/2015 (L)........................... 103 70 Government of Jamaica, 9.00%, 06/02/2015............................... 75 250 Iraq (Republic of), 5.80%, 01/15/2028............................... 168 90 Panama (Republic of), 8.13%, 04/28/2034 (H)........................... 105 140 Peru (Republic of), 3.00%, 03/07/2027............................... 107 EUR 50 Philippines (Republic of), 6.25%, 03/15/2016............................... 67 100 Turkey (Republic of), 7.00%, 09/26/2016............................... 101
PRINCIPAL MARKET AMOUNT VALUE (W) --------- --------- FOREIGN GOVERNMENTS -- (CONTINUED) $ 70 Turkey (Republic of), 7.25%, 03/15/2015............................... $ 72 60 Turkey (Republic of), 9.00%, 06/30/2011............................... 66 -------- 1,126 -------- HEALTH CARE -- 1.5% 270 Accellent, Inc., 10.50%, 12/01/2013.............................. 282 250 Biovail Corp., 7.88%, 04/01/2010............................... 251 150 CRC Health Corp., 10.75%, 02/01/2016.............................. 157 250 Encore Medical Finance, 11.75%, 11/15/2014 (I).......................... 250 270 HCA, Inc., 7.88%, 02/01/2011............................... 259 230 Healthsouth Corp., 11.32%, 06/15/2014 (I)(L)....................... 235 150 IASIS Healthcare Capital Corp., 8.75%, 06/15/2014............................... 145 150 National Mentor Holdings, Inc., 11.25%, 07/01/2014 (I).......................... 158 -------- 1,737 -------- SERVICES -- 6.9% 110 Allied Waste North America, Inc., 5.75%, 02/15/2011............................... 106 250 AMC Entertainment, Inc., 11.00%, 02/01/2016.............................. 260 125 Cap Cana Sa, 9.63%, 11/03/2013 (I)........................... 125 125 Clarke American Corp., 11.75%, 12/15/2013.............................. 131 250 Compucom Systems, Inc., 12.00%, 11/01/2014 (I).......................... 252 130 Dex Media West LLC, 8.00%, 11/15/2013............................... 131 195 Dex Media West LLC, 9.88%, 08/15/2013............................... 212 4,000 Dow Jones CDX HY, 8.38%, 12/29/2011 (I)........................... 4,060 150 Echostar DBS Corp., 6.38%, 10/01/2011............................... 149 140 Education Management LLC, 8.75%, 06/01/2014 (I)........................... 144 110 Education Management LLC, 10.25%, 06/01/2016 (I).......................... 114 100 Hilton Hotels Corp., 7.50%, 12/15/2017............................... 106 85 Knowledge Learning Center, Inc., 7.75%, 02/01/2015 (I)........................... 81 150 Lodgenet Entertainment Corp., 9.50%, 06/15/2013............................... 161 100 MTR Gaming Group, Inc., 9.00%, 06/01/2012 (I)........................... 101
The accompanying notes are an integral part of these financial statements. 174 --------------------------------------------------------------------------------
PRINCIPAL MARKET AMOUNT VALUE (W) --------- --------- CORPORATE BONDS: NON-INVESTMENT GRADE -- (CONTINUED) SERVICES -- (CONTINUED) $ 230 Nielsen Finance LLC, 10.00%, 08/01/2014 (I).......................... $ 240 100 Pokagon Gaming Authority, 10.38%, 06/15/2014 (I).......................... 107 110 Reader's Digest Association, Inc., 6.50%, 03/01/2011............................... 106 150 Scholastic Corp., 5.00%, 04/15/2013............................... 134 150 Sheridan Group, Inc., 10.25%, 08/15/2011.............................. 153 100 Sirius Satellite Radio, Inc., 9.63%, 08/01/2013............................... 98 200 SunGard Data Systems, Inc., 10.25%, 08/15/2015.............................. 210 80 Town Sports International, Inc., 9.63%, 04/15/2011............................... 84 250 Unisys Corp., 7.88%, 04/01/2008............................... 250 250 West Corp., 9.50%, 10/15/2014 (I)........................... 249 -------- 7,764 -------- TECHNOLOGY -- 5.4% 155 Advanced Micro Devices, Inc., 7.75%, 11/01/2012............................... 158 280 Charter Communications Operating LLC, 8.00%, 04/30/2012 (I)........................... 286 240 Citizens Communications Co., 9.00%, 08/15/2031............................... 261 125 CSC Holdings, Inc., 8.13%, 07/15/2009............................... 129 100 Digicel Ltd., 9.25%, 09/01/2012 (I)........................... 104 300 Dobson Cellular Systems, 8.38%, 11/01/2011 (I)........................... 312 180 Flextronics International Ltd., 6.50%, 05/15/2013............................... 179 150 Inmarsat Finance plc, 7.63%, 06/30/2012............................... 155 135 Insight Midwest L.P., 10.50%, 11/01/2010.............................. 140 235 Intelsat Bermuda Ltd., 9.25%, 06/15/2016 (I)........................... 251 100 Itron, Inc., 7.75%, 05/15/2012............................... 102 160 Leap Wireless International, Inc., 9.38%, 11/01/2014 (I)........................... 163 275 Level 3 Financing, Inc., 9.25%, 11/01/2014 (I)........................... 277 125 Level 3 Financing, Inc., 12.25%, 03/15/2013.............................. 141 100 MagnaChip Semiconductor, 6.88%, 12/15/2011............................... 84
PRINCIPAL MARKET AMOUNT VALUE (W) --------- --------- TECHNOLOGY -- (CONTINUED) $ 230 Mediacom LLC, 9.50%, 01/15/2013............................... $ 236 250 MetroPCS, Inc., 9.25%, 11/01/2014 (I)........................... 252 100 Mobile Telesystems Finance S.A., 8.00%, 01/28/2012............................... 104 450 Nortel Networks Ltd., 10.75%, 07/15/2016 (I).......................... 482 150 NTL Cable plc, 9.13%, 08/15/2016............................... 158 130 NXP B.V., 8.12%, 10/15/2013 (I)(L)........................ 131 200 Panamsat Corp., 9.00%, 06/15/2016 (I)........................... 209 440 Qwest Communications International, Inc., 7.50%, 02/15/2014............................... 449 150 Rogers Wireless, Inc., 6.38%, 03/01/2014............................... 150 25 SanDisk Corp., 1.00%, 05/15/2013 +............................. 23 130 Sanmina-SCI Corp., 8.13%, 03/01/2016............................... 128 225 Seagate Technology Holdings, 6.80%, 10/01/2016............................... 222 150 Solectron Global Finance Ltd., 8.00%, 03/15/2016............................... 151 250 STATS ChipPAC Ltd., 7.50%, 07/19/2010............................... 251 150 UGS Corp., 10.00%, 06/01/2012.............................. 162 100 Vimpel Communications, 8.25%, 05/23/2016 (I)........................... 104 105 Windstream Corp., 8.63%, 08/01/2016 (I)........................... 113 -------- 6,067 -------- TRANSPORTATION -- 0.1% 135 PHI, Inc., 7.13%, 04/15/2013 (I)........................... 128 -------- UTILITIES -- 1.7% 100 AES China Generating Co., 8.25%, 06/26/2010............................... 99 130 Atlas Pipeline Partners L.P., 8.13%, 12/15/2015............................... 133 100 Chivor S.A. E.S.P., 9.75%, 12/30/2014............................... 111 50 Colorado Interstate Gas Co., 6.80%, 11/15/2015............................... 51 105 Copano Energy LLC, 8.13%, 03/01/2016............................... 107 250 Edison Mission Energy, 7.50%, 06/15/2013 (I)........................... 257 82 Elwood Energy LLC, 8.16%, 07/05/2026............................... 87 125 Markwest Energy Partners L.P., 8.50%, 07/15/2016 (I)........................... 126
The accompanying notes are an integral part of these financial statements. 175 THE HARTFORD INCOME FUND SCHEDULE OF INVESTMENTS -- (CONTINUED) OCTOBER 31, 2006 (000'S OMITTED) --------------------------------------------------------------------------------
PRINCIPAL MARKET AMOUNT VALUE (W) --------- --------- CORPORATE BONDS: NON-INVESTMENT GRADE -- (CONTINUED) UTILITIES -- (CONTINUED) $ 240 Mirant Americas Generation LLC, 8.30%, 05/01/2011............................... $ 243 100 Mirant JPSCO Finance Ltd., 11.00%, 07/06/2016 (I).......................... 101 240 NRG Energy, Inc., 7.38%, 02/01/2016............................... 243 97 Tenaska Alabama Partners L.P., 7.00%, 06/30/2021 (I)........................... 96 100 Tennessee Gas Pipeline Co., 8.38%, 06/15/2032............................... 116 150 Transcontinental Gas Pipe Line Corp., 6.40%, 04/15/2016............................... 149 -------- 1,919 -------- Total corporate bonds: non-investment grade (cost $34,000).................................. $ 34,353 -------- SENIOR FLOATING RATE LOAN INTERESTS: NON-INVESTMENT GRADE (V) -- 5.0% BASIC MATERIALS -- 0.8% $ 484 Compass Minerals Group, Inc., 6.88%, 12/22/2012 (N)........................... $ 483 400 Huntsman International, Inc., 7.07%, 08/16/2012 (N)........................... 400 -------- 883 -------- CONSUMER CYCLICAL -- 0.4% 499 William Carter Co., 6.87%, 07/14/2012 (N)........................... 498 -------- FINANCE -- 0.8% 363 Ameritrade Holding Corp., 6.82%, 12/31/2011 (N)........................... 363 500 General Growth Properties, 6.60%, 02/24/2010 (N)........................... 496 -------- 859 -------- HEALTH CARE -- 0.8% 499 Fresenius Medical Care AG, 6.79%, 03/23/2012 (N)........................... 495 400 Lifepoint Hospitals, Inc., 6.98%, 04/15/2012 (AA).......................... 397 -------- 892 -------- SERVICES -- 1.8% 500 Gray Television, Inc., 6.86%, 11/22/2012 (AA)(Q)....................... 499 500 MGM Mirage, Inc., 6.59%, 10/03/2011 (N)........................... 494 500 Regal Cinemas, Inc., 7.10%, 11/10/2010 (AA)(Q)....................... 499
PRINCIPAL MARKET AMOUNT VALUE (W) --------- --------- SERVICES -- (CONTINUED) $ 250 UPC Financing Partnership, 7.62%, 03/31/2013 (AA)(Q)....................... $ 250 250 UPC Financing Partnership, 7.62%, 12/31/2013 (AA)(Q)....................... 250 -------- 1,992 -------- TECHNOLOGY -- 0.4% 499 Cincinnati Bell, Inc., 6.93%, 08/31/2012 (N)........................... 498 -------- Total senior floating rate loan interests non- investment grade (cost $5,633)................................... $ 5,622 -------- U.S. GOVERNMENT AGENCIES -- 26.3% FEDERAL HOME LOAN MORTGAGE CORPORATION -- 4.0% $ 200 4.10% 2014........................................ $ 195 1,220 5.50% 2016........................................ 1,270 504 5.50% 2032........................................ 501 2,100 6.00% 2032........................................ 2,140 390 6.25% 2032........................................ 452 -------- 4,558 -------- FEDERAL NATIONAL MORTGAGE ASSOCIATION -- 17.2% 1,104 5.00% 2017 -- 2035................................ 1,079 272 5.225% 2035....................................... 269 3,315 5.50% 2032 -- 2034................................ 3,283 9,315 6.00% 2036........................................ 9,374 5,388 6.50% 2036........................................ 5,492 -------- 19,497 -------- SMALL BUSINESS ADMINISTRATION PARTICIPATION CERTIFICATES -- 5.1% 914 4.92% 2023........................................ 903 959 5.35% 2026........................................ 965 192 5.54% 2026........................................ 195 984 5.57% 2026........................................ 1,001 969 5.64% 2026........................................ 991 365 5.82% 2026........................................ 376 1,000 5.87% 2026........................................ 1,032 325 6.07% 2026........................................ 339 -------- 5,802 -------- Total U.S. government agencies (cost $29,695).................................. $ 29,857 -------- U.S. GOVERNMENT SECURITIES -- 2.8% U.S. TREASURY SECURITIES -- 2.8% $ 145 4.63% 2011........................................ $ 145 2,977 4.88% 2009 -- 2016................................ 3,030 -------- Total U.S. government securities (cost $3,157)................................... $ 3,175 -------- Total long-term investments (cost $110,841)................................. $111,483 --------
The accompanying notes are an integral part of these financial statements. 176 --------------------------------------------------------------------------------
PRINCIPAL MARKET AMOUNT VALUE (W) --------- --------- SHORT-TERM INVESTMENTS -- 2.9% FINANCE -- 0.5% $ 573 State Street Bank Money Market Fund............... $ 573 -------- REPURCHASE AGREEMENTS -- 2.3% 858 BNP Paribas Joint Repurchase Agreement, 5.24%, 11/01/2006............................... 858 880 RBS Greenwich Joint Repurchase Agreement, 5.24%, 11/01/2006............................... 880 858 UBS Securities LLC Repurchase Agreement, 5.24%, 11/01/2006............................... 858 -------- 2,596 -------- U.S. TREASURY BILL -- 0.1% 125 U.S. Treasury Bill, 4.82%, 12/14/2006 (M)(S)........................ 124 -------- Total short-term investments (cost $3,293)................................... $ 3,293 -------- Total investments in securities (cost $114,134) (C)............................. $114,776 ========
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 10.07% of total net assets at October 31, 2006. (B) All principal amounts are in U.S. dollars unless otherwise indicated. BRL -- Brazilian Real EUR -- EURO
(C) At October 31, 2006, the cost of securities for federal income tax purposes was $114,159 and the aggregate gross unrealized appreciation and depreciation based on that cost were: Unrealized appreciation.......................... $1,320 Unrealized depreciation.......................... (703) ------ Net unrealized appreciation...................... $ 617 ======
(H) The following securities are considered illiquid. Illiquid securities are often purchased in private placement transactions, are not registered under the Securities Act of 1933 and may have contractual restrictions on resale. A security may also be considered illiquid if the security lacks a readily available market or if its valuation has not changed for a certain period of time.
PERIOD ACQUIRED SHARES/PAR SECURITY COST BASIS -------- ---------- -------- ---------- September/2006 90 Panama (Republic of), $105 8.13%, 04/28/2034
The aggregate value of these securities at October 31, 2006 was $105, which represents 0.09% of total net assets. (I) 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 qualified institutional buyers. 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, 2006, was $22,777, which represents 20.12% of total net assets. (K) Securities contain some restrictions as to public resale. These securities comply with Regulation S, rules governing offers and sales made outside the United States without registration under the Securities Act of 1933, and are determined to be liquid. At October 31, 2006, the market value of these securities amounted to $372 or 0.33% of net assets. (L) Variable rate securities; the rate reported is the coupon rate in effect at October 31, 2006. (M) The interest rate disclosed for these securities represents the effective yield on the date of acquisition. (N) The interest rate disclosed for these securities represents the effective yield as of October 31, 2006. (P) The interest rates disclosed for interest only strips represent effective yields based upon estimated future cash flows at October 31, 2006. (AA) The interest rate disclosed for these securities represents an estimated yield as of October 31, 2006. (Q) The cost of securities purchased on a when-issued or delayed delivery basis at October 31, 2006 was $1,628. (S) Security pledged as initial margin deposit for open futures contracts at October 31, 2006. FUTURES CONTRACTS OUTSTANDING AT OCTOBER 31, 2006
UNREALIZED NUMBER OF APPRECIATION DESCRIPTION CONTRACTS POSITION EXPIRATION (DEPRECIATION) ----------- --------- -------- ---------- -------------- CBT 2 Year U.S. Treasury Note futures contracts 35 Long December 2006 $ 16 CBT 5 Year U.S. Treasury Note futures contracts 35 Long December 2006 6 CBT 10 Year U.S. Treasury Note futures contracts 18 Long December 2006 8 U.S. Long Bond futures contracts 14 Short December 2006 (27) ---- $ 3 ====
These contracts had a market value of $14,374 as of October 31, 2006. The accompanying notes are an integral part of these financial statements. 177 THE HARTFORD INCOME FUND SCHEDULE OF INVESTMENTS -- (CONTINUED) OCTOBER 31, 2006 (000'S OMITTED) -------------------------------------------------------------------------------- (V) Senior loans in which the Fund invests generally pay interest at rates which are periodically adjusted by reference to a base short-term, floating lending rate plus a premium. These base lending rates are generally (i) the lending rate offered by one or more major European banks, such as the London Inter-Bank Offered Rate (LIBOR), (ii) the prime rate offered by one or more major United States Banks, or (iii) the bank's certificate of deposit rate. Senior floating rate interests often require prepayments from excess cash flows or permit the borrower to repay at its election. The rate at which the borrower repays cannot be predicted with accuracy. As a result, the actual remaining maturity may be substantially less than the stated maturities shown. The interest rate indicated is the rate in effect at October 31, 2006. + Convertible debt security. (W) See Note 2b of accompanying Notes to Financial Statements regarding valuation of securities. FORWARD FOREIGN CURRENCY CONTRACTS OUTSTANDING AT OCTOBER 31, 2006
UNREALIZED MARKET CONTRACT DELIVERY APPRECIATION DESCRIPTION TRANSACTION VALUE AMOUNT DATE (DEPRECIATION) ----------- ----------- ------ -------- --------- -------------- Euro Buy $1,023 $1,004 12/1/2006 $ 19 Euro Buy 69 68 12/5/2006 1 Euro Sell 1,023 1,011 12/1/2006 (12) Japanese Yen Buy 542 540 11/7/2006 (2) Japanese Yen Buy 2,006 1,974 12/7/2006 (32) Japanese Yen Sell 542 542 11/7/2006 -- Japanese Yen Sell 2,807 2,825 12/7/2006 (18) ---- $(44) ====
The accompanying notes are an integral part of these financial statements. 178 THE HARTFORD INFLATION PLUS FUND SCHEDULE OF INVESTMENTS OCTOBER 31, 2006 (000'S OMITTED) --------------------------------------------------------------------------------
PRINCIPAL MARKET AMOUNT VALUE (W) --------- --------- ASSET & COMMERCIAL MORTGAGE BACKED SECURITIES -- 2.7% FINANCE -- 2.7% $ 799 American Express Credit Account Master Trust, 5.82%, 02/15/2012 (I)(L)........................ $ 801 2,362 Commercial Mortgage Pass Through Certificates, 5.57%, 11/15/2017 (I)(L)........................ 2,363 2,546 Countrywide Asset Backed Certificates, 5.52%, 07/25/2035 (L)........................... 2,547 3,000 Credit Suisse Mortgage Capital Certificates, 5.48%, 04/15/2021 (I)(L)........................ 3,001 2,901 Lehman Brothers Commercial Mortgage Trust, 5.41%, 09/15/2021 (I)(L)........................ 2,901 3,000 Morgan Stanley Capital I, 5.57%, 08/15/2019 (I)(L)........................ 3,001 7,059 Prudential Commercial Mortgage Trust, 5.81%, 02/11/2036 (I)(P)........................ 324 3,000 TW Hotel Funding LLC, 5.58%, 01/15/2021 (I)(L)........................ 3,001 3,000 Wachovia Bank Commercial Mortgage Trust, 5.41%, 08/11/2018 (I)(L)........................ 3,000 -------- Total asset & commercial mortgage backed securities (cost $20,938).................................. $ 20,939 -------- CORPORATE BONDS: INVESTMENT GRADE -- 0.3% FINANCE -- 0.3% $ 2,600 SLM Corp., 5.44%, 04/01/2009 (L)........................... $ 2,500 -------- Total corporate bonds: investment grade (cost $2,603)................................... $ 2,500 -------- U.S. GOVERNMENT SECURITIES -- 88.9% OTHER DIRECT FEDERAL OBLIGATIONS -- 0.5% $ 3,000 Tennessee Valley Authority 3.375% 2007 (O)................................. $ 3,846 -------- U.S. TREASURY SECURITIES -- 88.4% 29,170 0.875% 2010 (O)................................... 29,585 72,137 1.625% 2015 (O)................................... 72,840 40,235 1.875% 2013 (O)................................... 43,255 196,362 2.00% 2014-2016 (O)............................... 203,468 33,000 2.00% 2026 (O).................................... 32,401 19,120 2.375% 2011 (O)................................... 19,536 75,990 2.375% 2025 (O)................................... 83,208 41,430 3.00% 2012 (O).................................... 48,431 1,715 3.375% 2012 (O)................................... 2,059 20,550 3.375% 2032 (O)................................... 29,224 20,455 3.50% 2011 (O).................................... 24,927 36,010 3.625% 2028 (O)................................... 56,058
PRINCIPAL MARKET AMOUNT VALUE (W) --------- --------- U.S. TREASURY SECURITIES -- (CONTINUED) $ 7,140 3.875% 2029 (O)................................... $ 11,403 13,835 4.25% 2010 (O).................................... 17,603 -------- 673,998 -------- Total U.S. government securities (cost $688,024)....................................... $677,844 -------- SENIOR FLOATING RATE LOAN INTERESTS NON-INVESTMENT GRADE (V) -- 7.7% BASIC MATERIALS -- 0.8% $ 3,934 Compass Minerals Group, Inc., 6.88%, 12/22/2012............................... $ 3,931 2,000 Huntsman International, Inc., 7.07%, 08/16/2012 (AA).......................... 1,998 -------- 5,929 -------- CONSUMER CYCLICAL -- 1.2% 500 Invista B.V., 6.88%, 04/30/2010 (AA).......................... 501 500 Invista B.V., 6.88%, 04/30/2010 (AA).......................... 502 3,990 Supervalu Inc., 7.17%, 05/30/2013 (N)........................... 4,000 3,995 William Carter Co., 6.87%, 07/14/2012 (N)........................... 3,988 -------- 8,991 -------- FINANCE -- 0.8% 3,629 Ameritrade Holding Corp., 6.82%, 12/31/2011 (N)........................... 3,626 3,000 General Growth Properties, 6.63%, 02/24/2010 (N)........................... 2,977 -------- 6,603 -------- HEALTH CARE -- 1.6% 3,990 Community Health Systems, 7.14%, 08/19/2011 (N)........................... 3,987 3,990 Fresenius Medical Care AG, 6.79%, 03/23/2012 (N)........................... 3,959 4,000 Lifepoint Hospitals, Inc., 6.94%, 04/15/2012 (AA).......................... 3,982 -------- 11,928 -------- SERVICES -- 0.9% 3,000 MGM Mirage, Inc., 6.59%, 10/03/2011 (N)........................... 2,966 3,990 Regal Cinemas, Inc., 7.13%, 11/10/2010 (N)........................... 3,981 -------- 6,947 -------- TECHNOLOGY -- 1.2% 2,009 Cincinnati Bell, Inc., 6.93%, 08/31/2012 (N)........................... 2,005 2,000 Mediacom Broadband, 7.42%, 01/31/2015 (AA).......................... 1,982
The accompanying notes are an integral part of these financial statements. 179 THE HARTFORD INFLATION PLUS FUND SCHEDULE OF INVESTMENTS -- (CONTINUED) OCTOBER 31, 2006 (000'S OMITTED) --------------------------------------------------------------------------------
PRINCIPAL MARKET AMOUNT VALUE (W) --------- --------- SENIOR FLOATING RATE LOAN INTERESTS NON-INVESTMENT GRADE (V) -- (CONTINUED) TECHNOLOGY -- (CONTINUED) $ 1,000 Mediacom LLC, 7.23%, 01/31/2015 (N)........................... $ 999 3,980 R.H. Donnelly, Inc., 6.93%, 06/30/2011 (N)........................... 3,965 -------- 8,951 -------- UTILITIES -- 1.2% 3,491 Mirant North America LLC, 7.08%, 01/03/2013 (N)........................... 3,483 4,000 NRG Energy, Inc., 7.32%, 01/27/2013 (AA).......................... 4,016 1,805 Pike Electric, Inc., 6.88%, 12/10/2012 (N)........................... 1,803 -------- 9,302 -------- Total senior floating rate loan interests non- investment grade (cost $58,699).................................. $ 58,651 -------- SENIOR FLOATING RATE INTERESTS INVESTMENT GRADE (V) -- 0.5% FINANCE -- 0.5% $ 3,500 Residential Capital Corp., 6.60%, 07/28/2008............................... $ 3,478 -------- Total senior floating rate interests investment grade (cost $3,484)................................... $ 3,478 -------- Total long-term investments (cost $773,748)................................. $763,412 -------- SHORT-TERM INVESTMENTS -- 1.2% CONSUMER STAPLES -- 0.3% $ 2,042 Cargill, Inc., 5.31%, 11/01/2006............................... $ 2,042 -------- FINANCE -- 0.0% 23 State Street Bank Money Market Fund............... 23 -------- REPURCHASE AGREEMENTS -- 0.9% 2,183 BNP Paribas Joint Repurchase Agreement, 5.24%, 11/01/2006............................... 2,183 2,238 RBS Greenwich Joint Repurchase Agreement, 5.24%, 11/01/2006............................... 2,238 2,183 UBS Securities LLC Repurchase Agreement, 5.24%, 11/01/2006............................... 2,183 -------- 6,604 -------- U.S. TREASURY SECURITIES -- 0.0% 250 U.S. Treasury Bill, 4.83%, 12/14/2006 (M)(S)........................ 248 -------- Total short-term investments (cost $8,917)................................... $ 8,917 -------- Total investments in securities (cost $782,665) (C)............................. $772,329 ========
Note: Percentage of investments as shown is the ratio of the total market value to total net assets. (C) At October 31, 2006, the cost of securities for federal income tax purposes was $792,618 and the aggregate gross unrealized appreciation and depreciation based on that cost were: Unrealized appreciation........................ $ -- Unrealized depreciation........................ (20,289) -------- Net unrealized depreciation.................... $(20,289) ========
(I) 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 qualified institutional buyers. 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, 2006, was $18,392, which represents 2.41% of total net assets. (L) Variable rate securities; the rate reported is the coupon rate in effect at October 31, 2006. (M) The interest rate disclosed for these securities represents the effective yield on the date of acquisition. (N) The interest rate disclosed for these securities represents the effective yield as of October 31, 2006. (O) 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. (P) The interest rates disclosed for interest only strips represent effective yields based upon estimated future cash flows at October 31, 2006. (AA) The interest rate disclosed for these securities represents an estimated yield as of October 31, 2006. (V) Senior loans in which the Fund invests generally pay interest at rates which are periodically adjusted by reference to a base short-term, floating lending rate plus a premium. These base lending rates are generally (i) the lending rate offered by one or more major European banks, such as the London Inter-Bank Offered Rate (LIBOR), (ii) the prime rate offered by one or more major United States Banks, or (iii) the bank's certificate of deposit rate. Senior floating rate interests often require prepayments from excess cash flows or permit the borrower to repay at its election. The rate at which the borrower repays cannot be predicted with accuracy. As a result, the actual remaining maturity may be substantially less than the stated maturities shown. The interest rate indicated is the rate in effect at October 31, 2006. (W) See Note 2b of accompanying Notes to Financial Statements regarding valuation of securities. (S) Security pledged as initial margin deposit for open futures contracts at October 31, 2006. The accompanying notes are an integral part of these financial statements. 180 -------------------------------------------------------------------------------- FUTURES CONTRACTS OUTSTANDING AT OCTOBER 31, 2006
UNREALIZED NUMBER OF APPRECIATION DESCRIPTION CONTRACTS POSITION EXPIRATION (DEPRECIATION) ----------- --------- -------- --------------- -------------- CBT 10 Year U.S. Treasury Note futures contracts 50 Short December 2006 $(67) ====
These contracts had a market value of $5,411 as of October 31, 2006. FORWARD FOREIGN CURRENCY CONTRACTS OUTSTANDING AT OCTOBER 31, 2006
UNREALIZED MARKET CONTRACT DELIVERY APPRECIATION DESCRIPTION TRANSACTION VALUE AMOUNT DATE (DEPRECIATION) ----------- ----------- ------ -------- ---------- -------------- Japanese Yen Buy $15,217 $15,000 11/07/2006 $ 217 Japanese Yen Buy 3,552 3,500 11/09/2006 52 Japanese Yen Buy 15,135 15,000 11/13/2006 135 Japanese Yen Sell 15,217 14,920 11/07/2006 (297) Japanese Yen Sell 3,552 3,532 11/09/2006 (20) Japanese Yen Sell 15,135 14,945 11/13/2006 (190) ----- $(103) =====
The accompanying notes are an integral part of these financial statements. 181 THE HARTFORD INTERNATIONAL CAPITAL APPRECIATION FUND SCHEDULE OF INVESTMENTS OCTOBER 31, 2006 (000'S OMITTED) --------------------------------------------------------------------------------
MARKET SHARES VALUE (W) --------- --------- COMMON STOCK -- 95.5% AUSTRALIA -- 0.5% 161 Aristocrat Leisure Ltd. (A)(G).................... $ 1,737 -------- AUSTRIA -- 1.3% 68 Erste Bank Der Oesterreichischen Sparkassen AG (A)............................................. 4,598 -------- BELGIUM -- 0.9% 16 KBC Groep N.V. (A)................................ 1,749 26 UCB S.A. (A)...................................... 1,630 -------- 3,379 -------- BRAZIL -- 0.4% 56 Companhia Vale do Rio Doce ADR.................... 1,422 -------- CANADA -- 6.7% 95 Cameco Corp. ..................................... 3,330 17 Potash Corp. of Saskatchewan...................... 2,098 88 Research In Motion Ltd. (D)(G).................... 10,373 84 Rogers Communications, Inc. Class B (G)........... 5,032 118 SNC-Lavalin Group, Inc. .......................... 3,213 -------- 24,046 -------- FRANCE -- 14.7% 139 Alcatel S.A. (A).................................. 1,761 49 BNP Paribas (A)................................... 5,370 34 Cie Generale d'Optique Essilor International S.A. (D)(A)(G)....................................... 3,543 66 Groupe Danone (A)(G).............................. 9,707 27 Iliad S.A. (A).................................... 2,282 47 Pinault-Printemps-Redoute S.A. (A)(G)............. 7,048 6 Sanofi-Aventis S.A. (A)........................... 549 20 Unibail (A)(G).................................... 4,403 37 Vallourec (A)(G).................................. 9,081 149 Veolia Environnment S.A. (A)(G)................... 9,095 -------- 52,839 -------- GERMANY -- 5.3% 31 Allianz SE (A).................................... 5,776 40 Deutsche Boerse AG (A)............................ 6,510 44 KarstadtQuelle AG (D)(A)(G)....................... 1,038 18 Linde AG (A)...................................... 1,811 36 Salzgitter AG (A)................................. 3,855 -------- 18,990 -------- HONG KONG -- 2.9% 2,223 BOC Hong Kong Holdings Ltd. (A)................... 4,967 239 China Mobile Ltd. (A)............................. 1,942 2,806 Shun Tak Holdings Ltd. (A)(G)..................... 3,702 -------- 10,611 -------- IRELAND -- 2.4% 253 Elan Corp. plc ADR (D)............................ 3,661 74 Ryanair Holdings plc ADR (D)(G)................... 4,958 -------- 8,619 --------
MARKET SHARES VALUE (W) --------- --------- JAPAN -- 16.8% 65 Canon, Inc. (A)................................... $ 3,482 158 Daiichi Sankyo Co., Ltd. (A)...................... 4,683 109 Eisai Co., Ltd. (A)(G)............................ 5,586 98 Elpida Memory, Inc. (D)(A)(G)..................... 4,555 2 Japan Tobacco, Inc. (A)........................... 8,287 39 Nintendo Co. Ltd. (A)............................. 8,052 18 ORIX Corp. (A) PFIC............................... 4,978 4 Rakuten, Inc. (A)(G).............................. 1,774 101 Sharp Corp. (A)(G)................................ 1,798 215 Shinsei Bank Ltd. (A)............................. 1,240 188 Sumitomo Realty & Development Co., Ltd. (A)(G).... 6,229 191 Suzuki Motor Corp. (A)(G)......................... 5,414 9 Tokyo Electron Ltd. (A)........................... 701 66 Toyota Motor Corp. (A)............................ 3,885 -------- 60,664 -------- MEXICO -- 2.7% 163 America Movil S.A. de C.V. ADR.................... 6,966 28 Fomento Economico Mexicano S.A. de C.V. ADR....... 2,698 -------- 9,664 -------- NETHERLANDS -- 3.9% 172 ASML Holding N.V. (D)(A).......................... 3,919 17 Euronext (A)(G)................................... 1,722 241 Koninklijke Philips Electronics N.V. (A).......... 8,401 -------- 14,042 -------- SOUTH KOREA -- 1.8% 10 Samsung Electronics Co., Ltd. (A)................. 6,554 -------- SPAIN -- 1.0% 151 Banco Bilbao Vizcaya Argentaria S.A. (A).......... 3,633 -------- SWEDEN -- 1.4% 312 Swedish Match AB (A).............................. 4,989 -------- SWITZERLAND -- 8.2% 325 Logitech International S.A. (D)(A)................ 8,538 12 Nestle S.A. (A)................................... 3,978 11 Nobel Biocare Holding AG (A)...................... 3,034 17 Roche Holding AG (A).............................. 3,049 98 Swatch Group AG (A)............................... 3,918 121 UBS AG (A)........................................ 7,213 -------- 29,730 -------- TAIWAN -- 2.2% 59 High Tech Computer Corp. (A)...................... 1,461 1,008 Hon Hai Precision Industry Co., Ltd. (A).......... 6,522 -------- 7,983 -------- UNITED KINGDOM -- 22.4% 60 Admiral Group plc (A)............................. 1,063 432 Alliance Boots plc (A)............................ 6,671 2,224 Arm Holdings plc (A)(G)........................... 4,988 24 AstraZeneca plc (A)............................... 1,422 415 British Airways plc (D)(A)........................ 3,632 202 British Land Co. plc (A).......................... 5,763
The accompanying notes are an integral part of these financial statements. 182 --------------------------------------------------------------------------------
MARKET SHARES VALUE (W) --------- --------- COMMON STOCK -- (CONTINUED) UNITED KINGDOM -- (CONTINUED) 1,539 Carphone Warehouse Group plc (A)(G)............... $ 8,300 946 Debenhams plc (D)(A).............................. 3,387 1,284 EMI Group plc (A)................................. 6,603 756 Kesa Electricals plc (A).......................... 5,038 579 Man Group plc (A)................................. 5,382 135 Reckitt Benckiser plc (A)......................... 5,881 424 Reed Elsevier plc (A)............................. 4,823 190 Standard Chartered plc (A)........................ 5,352 1,423 Tesco plc (A)..................................... 10,672 41 Xstrata plc (A)................................... 1,767 -------- 80,744 -------- Total common stock (cost $295,721)................................. $344,244 -------- PRINCIPAL AMOUNT --------- SHORT-TERM INVESTMENTS -- 28.8% REPURCHASE AGREEMENTS -- 3.2% $ 2,362 Banc of America Securities TriParty Joint Repurchase Agreement, 5.31%, 11/01/2006............................... $ 2,362 1,390 Credit Suisse Securities TriParty Joint Repurchase Agreement, 5.32%, 11/01/2006............................... 1,390 56 Deutsche Bank Securities Joint Repurchase Agreement, 5.25%, 11/01/2006............................... 56 1,112 Deutsche Bank Securities TriParty Joint Repurchase Agreement, 5.30%, 11/01/2006............................... 1,112 2,334 Deutsche Bank Securities TriParty Joint Repurchase Agreement, 5.32%, 11/01/2006............................... 2,334 1,278 Morgan Stanley & Co., Inc. TriParty Joint Repurchase Agreement, 5.29%, 11/01/2006............................... 1,278 3,140 UBS Securities TriParty Joint Repurchase Agreement, 5.31%, 11/01/2006............................... 3,140 -------- 11,672 --------
MARKET SHARES VALUE (W) --------- --------- SECURITIES PURCHASED WITH PROCEEDS FROM SECURITY LENDING -- 25.6% 92,173 Navigator Prime Portfolio......................... $ 92,173 -------- Total short-term investments (cost $103,845)................................. $103,845 -------- Total investments in securities (cost $399,566) (C)............................. $448,089 ========
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 95.47% of total net assets at October 31, 2006. (A) The aggregate value of securities valued in good faith at fair value by, or under the direction of, the Funds' Board of Directors at October 31, 2006, was $300,493, which represents 83.34% of total net assets. (C) At October 31, 2006, the cost of securities for federal income tax purposes was $401,982 and the aggregate gross unrealized appreciation and depreciation based on that cost were: Unrealized appreciation......................... $47,361 Unrealized depreciation......................... (1,254) ------- Net unrealized appreciation..................... $46,107 =======
(D) Currently non-income producing. (G) Security is partially on loan at October 31, 2006. (W) See Note 2b of accompanying Notes to Financial Statements regarding valuation of securities. The accompanying notes are an integral part of these financial statements. 183 THE HARTFORD INTERNATIONAL CAPITAL APPRECIATION FUND SCHEDULE OF INVESTMENTS -- (CONTINUED) OCTOBER 31, 2006 (000'S OMITTED) -------------------------------------------------------------------------------- FORWARD FOREIGN CURRENCY CONTRACTS OUTSTANDING AT OCTOBER 31, 2006
UNREALIZED MARKET CONTRACT DELIVERY APPRECIATION DESCRIPTION TRANSACTION VALUE AMOUNT DATE (DEPRECIATION) ----------- ----------- ------ -------- ---------- -------------- British Pound Buy $ 365 $ 363 11/01/2006 $ 2 Euro Buy 29 29 11/02/2006 -- Euro Sell 1,082 1,080 11/01/2006 (2) Euro Sell 514 514 11/03/2006 -- Japanese Yen Buy 95 94 11/01/2006 1 Japanese Yen Sell 1,691 1,686 11/02/2006 (5) Japanese Yen Sell 2,438 2,420 11/06/2006 (18) Swedish Krona Buy 306 305 11/01/2006 1 Swedish Krona Buy 68 68 11/02/2006 -- Swiss Francs Buy 586 584 11/01/2006 2 Swiss Francs Buy 373 372 11/02/2006 1 Swiss Francs Sell 2,099 2,100 11/03/2006 1 ---- $(17) ====
PFIC -- Passive Foreign Investment Company DIVERSIFICATION BY INDUSTRY As of October 31, 2006
PERCENTAGE OF INDUSTRY NET ASSETS --------------------------------------------------------------- Basic Materials 6.0% --------------------------------------------------------------- Consumer Cyclical 15.7 --------------------------------------------------------------- Consumer Staples 9.9 --------------------------------------------------------------- Energy 0.5 --------------------------------------------------------------- Finance 22.1 --------------------------------------------------------------- Health Care 9.4 --------------------------------------------------------------- Services 4.5 --------------------------------------------------------------- Technology 22.5 --------------------------------------------------------------- Transportation 2.4 --------------------------------------------------------------- Utilities 2.5 --------------------------------------------------------------- Short-Term Investments 28.8 --------------------------------------------------------------- Other Assets & Liabilities (24.3) --------------------------------------------------------------- TOTAL 100.0% ---------------------------------------------------------------
The accompanying notes are an integral part of these financial statements. 184 THE HARTFORD INTERNATIONAL OPPORTUNITIES FUND SCHEDULE OF INVESTMENTS OCTOBER 31, 2006 (000'S OMITTED) --------------------------------------------------------------------------------
MARKET SHARES VALUE (W) --------- --------- COMMON STOCK -- 96.0% AUSTRALIA -- 1.6% 218 Westpac Banking Corp. (A)(G)...................... $ 4,040 -------- BELGIUM -- 0.5% 20 UCB S.A. (A)(G)................................... 1,223 -------- BRAZIL -- 4.1% 331 All America Latina Logistica S.A. ................ 2,892 294 Companhia Vale do Rio Doce ADR.................... 7,472 -------- 10,364 -------- CANADA -- 6.4% 77 Alcan, Inc. (G)................................... 3,593 76 Cameco Corp. ..................................... 2,677 57 EnCana Corp. (G).................................. 2,716 107 OPTI Canada, Inc. (D)............................. 1,714 169 Talisman Energy, Inc. (G)......................... 2,777 36 Teck Cominco Ltd. Class B (D)..................... 2,672 -------- 16,149 -------- CHINA -- 0.3% 1,431 Industrial and Commercial Bank of China (G)....... 640 -------- FRANCE -- 15.3% 44 Accor S.A. (A)(G)................................. 3,044 119 Axa S.A. (A)(G)................................... 4,530 33 BNP Paribas (A)(G)................................ 3,580 36 Cie Generale d'Optique Essilor International S.A. (D)(A)(G)....................................... 3,739 25 CNP Assurances (A)(G)............................. 2,624 59 Electricite de France (D)(A)(G)................... 3,549 35 Lafarge S.A. (A)(G)............................... 4,709 23 LVMH Moet Hennessy Louis Vuitton S.A. (A)(G)...... 2,384 51 Peugeot S.A. (A)(G)............................... 2,904 63 Sanofi-Aventis S.A. (A)(G)........................ 5,369 35 Total S.A. (A)(G)................................. 2,370 -------- 38,802 -------- GERMANY -- 9.4% 16 Deutsche Boerse AG (A)............................ 2,559 186 Deutsche Telekom AG (A)........................... 3,217 36 Henkel KGaA Vorzug (G)............................ 4,782 39 Muenchener Rueckversicherungs-Gesellschaft AG (A)............................................. 6,378 44 RWE Ag (A)........................................ 4,393 13 SAP AG ADR (A).................................... 2,511 -------- 23,840 -------- HONG KONG -- 0.9% 280 Hong Kong Exchanges & Clearing Ltd. (A)(G)........ 2,212 -------- INDIA -- 1.4% 49 Infosys Technologies Ltd. (A)..................... 2,290 133 Satyam Computer Services Ltd. (A)................. 1,296 -------- 3,586 --------
MARKET SHARES VALUE (W) --------- --------- IRELAND -- 1.5% 72 Ryanair Holdings plc (D)(A)....................... $ 807 44 Ryanair Holdings plc ADR (D)(G)................... 2,907 -------- 3,714 -------- ITALY -- 6.5% 803 Banca Intesa S.p.A. (A)(G)........................ 5,485 134 Bulgari S.p.A. (A)(G)............................. 1,870 34 Tod's S.p.A. (A).................................. 2,939 739 UniCredito Italiano S.p.A. (A).................... 6,124 -------- 16,418 -------- JAPAN -- 14.0% 80 Astellas Pharma, Inc. (A)......................... 3,590 48 Canon, Inc. (A)................................... 2,585 95 Daiichi Sankyo Co., Ltd. (A)...................... 2,814 66 Denso Corp. (A)................................... 2,501 67 Eisai Co., Ltd. (A)............................... 3,442 -- Japan Tobacco, Inc. (A)........................... 709 128 Matsui Securities Co., Ltd. (A)(G)................ 1,128 298 Mitsubishi Heavy Industries Ltd. (A).............. 1,328 -- Mitsubishi UFJ Financial Group, Inc. (A)(G)....... 3,793 4 Rakuten, Inc. (A)(G).............................. 1,606 79 Sega Sammy Holdings, Inc. (A)(G).................. 1,972 104 Seven & I Holdings Co., Ltd. (A)(G)............... 3,343 438 Shinsei Bank Ltd. (A)............................. 2,525 65 Sony Corp. (A)(G)................................. 2,661 38 Terumo Corp. (A)(G)............................... 1,519 -------- 35,516 -------- LUXEMBOURG -- 0.6% 59 Ternium S.A. ADR (D).............................. 1,447 -------- MEXICO -- 1.2% 338 Empresas ICA S.A. (D)(G).......................... 1,158 18 Grupo Aeroportuario del Pacifico S.A. de CV....... 675 360 Wal-Mart de Mexico................................ 1,253 -------- 3,086 -------- NETHERLANDS -- 1.5% 108 Koninklijke Philips Electronics N.V. (A).......... 3,753 -------- NORWAY -- 3.6% 355 Statoil ASA (A)................................... 9,018 -------- PANAMA -- 0.3% 19 Copa Holdings S.A. Class A........................ 735 -------- RUSSIA -- 1.1% 27 Lukoil ADR........................................ 2,175 24 TMK OAO GDR (I)................................... 600 -------- 2,775 -------- SOUTH KOREA -- 1.0% 4 Samsung Electronics Co., Ltd. (A)................. 2,552 -------- SPAIN -- 2.6% 275 Banco Bilbao Vizcaya Argentaria S.A. (A).......... 6,637 --------
The accompanying notes are an integral part of these financial statements. 185 THE HARTFORD INTERNATIONAL OPPORTUNITIES FUND SCHEDULE OF INVESTMENTS -- (CONTINUED) OCTOBER 31, 2006 (000'S OMITTED) --------------------------------------------------------------------------------
MARKET SHARES VALUE (W) --------- --------- COMMON STOCK -- (CONTINUED) SWEDEN -- 2.1% 150 Assa Abloy AB (A)(G).............................. $ 2,886 631 Telefonaktiebolaget LM Ericsson (A)............... 2,385 -------- 5,271 -------- SWITZERLAND -- 8.3% 61 Credit Suisse Group (A)........................... 3,664 29 Nestle S.A. (A)................................... 9,880 80 UBS AG (A)........................................ 4,751 11 Zurich Financial Services AG (A).................. 2,824 -------- 21,119 -------- TAIWAN -- 1.6% 629 Chunghwa Telecom Co., Ltd. (A).................... 1,077 165 Chunghwa Telecom Co., Ltd. ADR.................... 3,024 -------- 4,101 -------- UNITED KINGDOM -- 10.2% 140 Alliance Boots plc (A)............................ 2,163 62 AstraZeneca plc (A)............................... 3,672 232 Debenhams plc (D)(A).............................. 832 349 EMI Group plc (A)................................. 1,793 1,331 Old Mutual plc (A)(G)............................. 4,308 69 Reckitt Benckiser plc (A)......................... 3,015 691 Tesco plc (A)..................................... 5,187 115 Xstrata plc (A)................................... 4,888 -------- 25,858 -------- Total common stock (cost $214,529)................................. $242,856 -------- PRINCIPAL AMOUNT --------- SHORT-TERM INVESTMENTS -- 23.3% REPURCHASE AGREEMENTS -- 3.5% $ 1,786 Banc of America Securities TriParty Joint Repurchase Agreement, 5.31%, 11/01/2006............................... $ 1,786 1,050 Credit Suisse Securities TriParty Joint Repurchase Agreement, 5.32%, 11/01/2006............................... 1,050 42 Deutsche Bank Securities Joint Repurchase Agreement, 5.25%, 11/01/2006............................... 42 840 Deutsche Bank Securities TriParty Joint Repurchase Agreement, 5.30%, 11/01/2006............................... 840 1,765 Deutsche Bank Securities TriParty Joint Repurchase Agreement, 5.32%, 11/01/2006............................... 1,765
PRINCIPAL MARKET AMOUNT VALUE (W) --------- --------- REPURCHASE AGREEMENTS -- (CONTINUED) $ 966 Morgan Stanley & Co., Inc. TriParty Joint Repurchase Agreement, 5.29%, 11/01/2006............................... $ 966 2,374 UBS Securities TriParty Joint Repurchase Agreement, 5.31%, 11/01/2006............................... 2,374 -------- 8,823 -------- SHARES --------- SECURITIES PURCHASED WITH PROCEEDS FROM SECURITY LENDING -- 19.8% 50,091 Navigator Prime Portfolio......................... 50,091 -------- Total short-term investments (cost $58,914).................................. $ 58,914 -------- Total investments in securities (cost $273,443) (C)............................. $301,770 ========
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 96.00% of total net assets at October 31, 2006. (A) The aggregate value of securities valued in good faith at fair value by, or under the direction of, the Funds' Board of Directors at October 31, 2006, was $196,947, which represents 77.85% of total net assets. (C) At October 31, 2006, the cost of securities for federal income tax purposes was $273,509 and the aggregate gross unrealized appreciation and depreciation based on that cost were: Unrealized appreciation......................... $32,668 Unrealized depreciation......................... (4,407) ------- Net unrealized appreciation..................... $28,261 =======
(D) Currently non-income producing. (G) Security is partially on loan at October 31, 2006. (I) 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 qualified institutional buyers. 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, 2006, was $600, which represents 0.24% of total net assets. (W) See Note 2b of accompanying Notes to Financial Statements regarding valuation of securities. The accompanying notes are an integral part of these financial statements. 186 -------------------------------------------------------------------------------- FORWARD FOREIGN CURRENCY CONTRACTS OUTSTANDING AT OCTOBER 31, 2006
UNREALIZED MARKET CONTRACT DELIVERY APPRECIATION DESCRIPTION TRANSACTION VALUE AMOUNT DATE (DEPRECIATION) ----------- ----------- ------ -------- ---------- -------------- British Pound Sell $1,313 $1,287 01/25/2007 $(26) Canadian Dollar Sell 933 933 11/03/2006 -- Euro Sell 1,723 1,719 11/01/2006 (4) Japanese Yen Buy 689 681 11/01/2006 8 Japanese Yen Sell 456 455 11/02/2006 (1) Japanese Yen Sell 606 601 11/06/2006 (5) Mexican Peso Sell 409 408 11/01/2006 (1) Swiss Franc Sell 1,281 1,263 01/25/2007 (18) ---- $(47) ====
DIVERSIFICATION BY INDUSTRY As of October 31, 2006
PERCENTAGE OF INDUSTRY NET ASSETS --------------------------------------------------------------- Basic Materials 14.1% --------------------------------------------------------------- Capital Goods 0.5 --------------------------------------------------------------- Consumer Cyclical 10.4 --------------------------------------------------------------- Consumer Staples 5.4 --------------------------------------------------------------- Energy 9.9 --------------------------------------------------------------- Finance 26.8 --------------------------------------------------------------- Health Care 10.9 --------------------------------------------------------------- Services 2.9 --------------------------------------------------------------- Technology 10.5 --------------------------------------------------------------- Transportation 3.2 --------------------------------------------------------------- Utilities 1.4 --------------------------------------------------------------- Short-Term Investments 23.3 --------------------------------------------------------------- Other Assets & Liabilities (19.3) --------------------------------------------------------------- TOTAL 100.0% ---------------------------------------------------------------
The accompanying notes are an integral part of these financial statements. 187 THE HARTFORD INTERNATIONAL SMALL COMPANY FUND SCHEDULE OF INVESTMENTS OCTOBER 31, 2006 (000'S OMITTED) --------------------------------------------------------------------------------
MARKET SHARES VALUE (W) --------- --------- COMMON STOCK -- 98.7% AUSTRALIA -- 3.4% 565 Centennial Coal Co., Ltd. (A)(G).................. $ 1,701 559 Dyno Nobel Ltd. (D) (I)(A)........................ 1,013 51 Leighton Holdings Ltd. (A)(G)..................... 841 150 Seek Ltd. (A)..................................... 618 304 Transurban Group (A)(G)........................... 1,703 48 Zinifex Ltd. (A).................................. 570 -------- 6,446 -------- BELGIUM -- 1.7% 4 D'ieteren S.A. (A)(G)............................. 1,467 11 Umicore (A)....................................... 1,709 -------- 3,176 -------- CHINA -- 1.0% 1,457 Beijing Capital International Airport Co., Ltd. (A)............................................. 933 1,633 China Oilfield Services Ltd. (A).................. 915 -------- 1,848 -------- DENMARK -- 3.7% 29 Carlsberg A/S Class B (A)......................... 2,472 20 Danisco A/S (A)(G)................................ 1,619 30 Genmab A/S (D)(A)................................. 1,341 23 Trygvesta A/S (A)(G).............................. 1,455 -------- 6,887 -------- FINLAND -- 1.2% 65 Nokian Rendaat Oyj (A)(G)......................... 1,246 37 Tietoenator Oyj (A)(G)............................ 1,014 -------- 2,260 -------- FRANCE -- 8.0% 39 Arkema (D)(A)(G).................................. 1,910 24 BioMerieux S.A. (A)............................... 1,481 12 Cegedim S.A. (A).................................. 999 38 Dassault Systemes S.A. (A)(G)..................... 2,045 38 Ipsen (I)(A)...................................... 1,575 94 S.O.I. Tec S.A. (D)(A)............................ 2,783 7 SEB S.A. (A)(G)................................... 960 4 Unibail (A)(G).................................... 804 38 Zodiac S.A. (A)(G)................................ 2,404 -------- 14,961 -------- GERMANY -- 12.1% 29 AWD Holding AG (A)(G)............................. 1,053 13 Deutsche Euroshop AG (A).......................... 880 135 GEA Group AG (A).................................. 2,424 40 GFK AG (A)........................................ 1,715 18 Hochtief AG (A)................................... 1,159 79 KarstadtQuelle AG (D)(A)(G)....................... 1,870 106 Kontron AG (A)(G)................................. 1,542 93 MTU Aero Engines Holdings AG (A).................. 3,807 40 Praktiker Bau-Und Heimwerkermaerkte Holding AG (A)............................................. 1,265 18 Salzgitter AG (A)................................. 1,967
MARKET SHARES VALUE (W) --------- --------- GERMANY -- (CONTINUED) 98 SGL Carbon AG (D)(A).............................. $ 2,157 49 Thielert AG (D)(A)................................ 1,172 13 Wacker Chemie AG (D)(A)........................... 1,586 -------- 22,597 -------- GREECE -- 1.9% 356 Hellenic Technodomiki Tev S.A. (A)................ 3,597 -------- HONG KONG -- 3.3% 1,196 Chinese Estates Holdings Ltd. (A) PFIC............ 1,434 2,016 Far East Pharmaceutical Technology Co., Ltd. (D)(H)(G)....................................... -- 1,089 Shangri-La Asia Ltd. (A).......................... 2,361 934 Shun Tak Holdings Ltd. (A)(G)..................... 1,232 849 Techtronic Industries Co., Ltd. (A)............... 1,201 -------- 6,228 -------- ITALY -- 5.2% 112 Banca Popolare di Milano S.c.r.l. (A)............. 1,651 86 Brembo S.p.A. (A)................................. 1,000 333 Immobiliare Grande Distribuzione (A).............. 1,272 23 Pirelli & C. Real Estate S.p.A. (A)............... 1,479 260 Safilo Group S.p.A. (D)(A)........................ 1,405 729 Sorin S.p.A. (D)(A)(G)............................ 1,326 18 Tod's S.p.A. (A).................................. 1,573 -------- 9,706 -------- JAPAN -- 22.4% 239 77 Bank Ltd. (A)(G)............................... 1,569 1 Bic Camera, Inc. (G).............................. 910 34 Disco Corp. (A)................................... 2,011 44 FamilyMart Co., Ltd. (A).......................... 1,194 483 Fuji Fire & Marine Insurance Co., Ltd. (A)(G)..... 1,933 18 Hakuhodo DY Holdings, Inc. (A)(G)................. 1,079 21 Honeys Co., Ltd. (A)(G)........................... 976 18 Japan Petroleum Exploration Co., Ltd. (A)(G) PFIC............................................ 1,065 3 Jupiter Telecommunications Co., Ltd. (D)(A)....... 2,214 36 Kobayashi Pharmaceutical Co., Ltd. (A)............ 1,364 63 MEC Co., Ltd. (A)(G).............................. 833 33 Milbon Co., Ltd. (A).............................. 1,084 54 NEOMAX Co., Ltd. (A)(G)........................... 991 68 Nidec Copal Corp. (A)(G).......................... 837 -- Nomura Real Estate Office Fund, Inc. (A)(G)....... 1,144 25 OBIC Business Consultants Ltd. (A)(G)............. 1,913 11 OBIC Co., Ltd. (A)(G)............................. 2,301 22 Point, Inc. (A)(G)................................ 1,089 13 Ryohin Keikaku Co., Ltd. (A)...................... 918 134 Shionogi & Co., Ltd. (A)(G)....................... 2,687 877 Sumitomo Osaka Cement Co., Ltd. (A)(G)............ 2,574 44 Taiyo Ink Manufacturing Co., Ltd. (A)............. 2,335 34 Takamatsu Corp. (A)............................... 647 101 Tanabe Seiyaku Co., Ltd (A)(G).................... 1,245 24 Tocalo Co., Ltd. (A).............................. 849 21 Uni-Charm Corp. (A)(G)............................ 1,165 42 Union Tool Co. (A)(G)............................. 1,890 78 Uny Co., Ltd. (A)................................. 984
The accompanying notes are an integral part of these financial statements. 188 --------------------------------------------------------------------------------
MARKET SHARES VALUE (W) --------- --------- COMMON STOCK -- (CONTINUED) JAPAN -- (CONTINUED) 18 USS Co., Ltd. (A)................................. $ 1,136 83 Yamaguchi Financial Group, Inc. .................. 1,039 -------- 41,976 -------- LIECHTENSTEIN -- 1.3% 10 Verwalt & Privat-Bank AG (A)...................... 2,395 -------- LUXEMBOURG -- 0.7% 44 Stolt-Nielsen S.A. (A)(G)......................... 1,256 -------- MALAYSIA -- 0.8% 447 Resorts World Berhad (A).......................... 1,457 -------- MEXICO -- 0.6% 336 Empresas ICA S.A. (D)............................. 1,152 -------- NETHERLANDS -- 3.3% 69 Ordina N.V. (A)................................... 1,315 41 SBM Offshore N.V. (A)............................. 1,212 62 Spazio Investment N.V. (I)........................ 1,059 98 Wolters Kluwer N.V. (A)........................... 2,689 -------- 6,275 -------- PORTUGAL -- 0.8% 235 Mota -- Engil S.A. (A)............................ 1,457 -------- SOUTH KOREA -- 1.6% 26 GS Engineering & Construction Corp. (A)........... 2,017 14 Mirae Asset Securities Co., Ltd. (A).............. 890 -------- 2,907 -------- SPAIN -- 1.8% 475 Iberia Lineas Aer De Espana (A)(G)................ 1,489 62 Prosegur Compania de Seguridad S.A. (A)........... 1,856 -------- 3,345 -------- SWEDEN -- 3.3% 44 Alfa Laval AB (A)(G).............................. 1,626 24 Munters AB (A)(G)................................. 924 153 Swedish Match AB (A)(G)........................... 2,444 56 Trelleborg AB (A)(G).............................. 1,180 -------- 6,174 -------- SWITZERLAND -- 6.8% 15 Bachem Holding AG Class B......................... 1,037 16 Charles Voegele Holding AG (A).................... 1,298 25 Dufry Group (D)(A)................................ 2,044 65 EFG International (D)............................. 2,123 9 Ems-Chemie Holding AG (A)(G)...................... 1,019 1 Geberit AG (A).................................... 992 82 Logitech International S.A. (D)(A)................ 2,152 2 Sulzer AG (A)..................................... 2,089 -------- 12,754 -------- UNITED KINGDOM -- 9.7% 191 Cattles plc (A)................................... 1,371 89 Close Brothers Group plc (A)...................... 1,651
MARKET SHARES VALUE (W) --------- --------- UNITED KINGDOM -- (CONTINUED) 174 EMI Group plc (A)................................. $ 893 155 FirstGroup plc (A)................................ 1,587 532 FKI plc (A)....................................... 971 516 GCAP Media plc (A)................................ 2,110 95 ICAP plc (A)...................................... 924 92 Speedy Hire plc (A)............................... 1,806 159 SSL International plc (A)......................... 1,020 269 Star Energy Group plc (D)(A)...................... 1,414 68 Ultra Electronics Holdings plc (A)................ 1,440 50 Vedanta Resources plc (A)......................... 1,373 287 Wolfson Microelectronics plc (D)(A)............... 1,575 -------- 18,135 -------- UNITED STATES -- 4.1% 320 Benfield Group plc (A)............................ 2,120 859 Goodpack Ltd. (D)(A).............................. 906 171 Lancashire Holdings Ltd. (D)...................... 1,186 19 Mapeley Ltd. (A).................................. 1,291 1,964 Midland Holdings, Ltd. (A)........................ 972 194 Petrofac Ltd. (A)................................. 1,245 -------- 7,720 -------- Total common stock (cost $168,607)................................. $184,709 -------- PRINCIPAL AMOUNT --------- SHORT-TERM INVESTMENTS -- 23.9% REPURCHASE AGREEMENTS -- 1.5% $ 550 Banc of America Securities TriParty Joint Repurchase Agreement, 5.31%, 11/01/2006............................... $ 550 323 Credit Suisse Securities TriParty Joint Repurchase Agreement, 5.32%, 11/01/2006............................... 323 13 Deutsche Bank Securities Joint Repurchase Agreement, 5.25%, 11/01/2006............................... 13 259 Deutsche Bank Securities TriParty Joint Repurchase Agreement, 5.30%, 11/01/2006............................... 259 544 Deutsche Bank Securities TriParty Joint Repurchase Agreement, 5.32%, 11/01/2006............................... 544 298 Morgan Stanley & Co., Inc. TriParty Joint Repurchase Agreement, 5.29%, 11/01/2006............................... 298 731 UBS Securities TriParty Joint Repurchase Agreement, 5.31%, 11/01/2006............................... 731 -------- 2,718 --------
The accompanying notes are an integral part of these financial statements. 189 THE HARTFORD INTERNATIONAL SMALL COMPANY FUND SCHEDULE OF INVESTMENTS -- (CONTINUED) OCTOBER 31, 2006 (000'S OMITTED) --------------------------------------------------------------------------------
MARKET SHARES VALUE (W) --------- --------- SECURITIES PURCHASED WITH PROCEEDS FROM SECURITY LENDING -- 22.4% 41,963 Navigator Prime Portfolio......................... $ 41,963 -------- Total short-term investments (cost $44,681).................................. $ 44,681 -------- Total investments in securities (cost $213,288) (C)............................. $229,390 ========
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 94.6% of total net assets at October 31, 2006. (A) The aggregate value of securities valued in good faith at fair value by, or under the direction of, the Funds' Board of Directors at October 31, 2006, was $176,203, which represents 94.15% of total net assets. (C) At October 31, 2006, the cost of securities for federal income tax purposes was $213,996 and the aggregate gross unrealized appreciation and depreciation based on that cost were: Unrealized appreciation......................... $20,979 Unrealized depreciation......................... (5,585) ------- Net unrealized appreciation..................... $15,394 =======
(D) Currently non-income producing. (G) Security is partially on loan at October 31, 2006. (H) The following securities are considered illiquid. Illiquid securities are often purchased in private placement transactions, are not registered under the Securities Act of 1933 and may have contractual restrictions on resale. A security may also be considered illiquid if the security lacks a readily available market or if its valuation has not changed for a certain period of time.
PERIOD ACQUIRED SHARES SECURITY COST BASIS -------- ------ -------- ---------- March-May 2004 2,016 Far East Pharmaceutical $293 Technology Co., Ltd.
The aggregate value of these securities at October 31, 2006 rounds to zero. (I) 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 qualified institutional buyers. 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, 2006, was $3,647, which represents 1.95% of total net assets. (W) See Note 2b of accompanying Notes to Financial Statements regarding valuation of securities. FORWARD FOREIGN CURRENCY CONTRACTS OUTSTANDING AT OCTOBER 31, 2006
UNREALIZED MARKET CONTRACT DELIVERY APPRECIATION DESCRIPTION TRANSACTION VALUE AMOUNT DATE (DEPRECIATION) ----------- ----------- ------ -------- ---------- -------------- Australian Dollar Buy $369 $365 11/01/2006 $ 4 British Pound Sell 39 39 11/01/2006 -- Danish Krone Buy 122 122 11/03/2006 -- Euro Buy 241 240 11/02/2006 1 Euro Buy 165 164 11/01/2006 1 Euro Buy 55 55 11/03/2006 -- Euro Sell 326 325 11/01/2006 (1) Hong Kong Dollars Buy 17 17 11/01/2006 -- Hong Kong Dollars Buy 15 15 11/02/2006 -- Swiss Francs Buy 69 69 11/01/2006 -- Swiss Francs Buy 79 79 11/02/2006 -- --- $ 5 ===
PFIC -- Passive Foreign Investment Company DIVERSIFICATION BY INDUSTRY As of October 31, 2006
PERCENTAGE OF INDUSTRY NET ASSETS --------------------------------------------------------------- Basic Materials 12.6% --------------------------------------------------------------- Capital Goods 9.3 --------------------------------------------------------------- Consumer Cyclical 16.4 --------------------------------------------------------------- Consumer Staples 3.5 --------------------------------------------------------------- Energy 3.4 --------------------------------------------------------------- Finance 20.6 --------------------------------------------------------------- Health Care 8.4 ---------------------------------------------------------------
---------------------------------------------------------------
PERCENTAGE OF INDUSTRY NET ASSETS Services 7.7 --------------------------------------------------------------- Technology 11.5 --------------------------------------------------------------- Transportation 4.7 --------------------------------------------------------------- Utilities 0.6 --------------------------------------------------------------- Short-Term Investments 23.9 --------------------------------------------------------------- Other Assets & Liabilities (22.6) --------------------------------------------------------------- TOTAL 100.0% ---------------------------------------------------------------
The accompanying notes are an integral part of these financial statements. 190 THE HARTFORD MIDCAP FUND SCHEDULE OF INVESTMENTS OCTOBER 31, 2006 (000'S OMITTED) --------------------------------------------------------------------------------
MARKET SHARES VALUE (W) --------- ---------- COMMON STOCK -- 95.5% BASIC MATERIALS -- 6.0% 1,240 Cameco Corp. ..................................... $ 43,568 703 Peabody Energy Corp. ............................. 29,488 152 Phelps Dodge Corp. ............................... 15,288 19 Potash Corp. of Saskatchewan...................... 2,411 446 Precision Castparts Corp. ........................ 30,321 270 Rohm & Haas Co. .................................. 14,014 587 Teck Cominco Ltd. Class B......................... 43,249 ---------- 178,339 ---------- CAPITAL GOODS -- 3.4% 302 Alliant Techsystems, Inc. (D)(G).................. 23,302 1,103 American Standard Cos., Inc. ..................... 48,865 605 Lam Research Corp. (D)............................ 29,897 ---------- 102,064 ---------- CONSUMER CYCLICAL -- 16.6% 580 Abercrombie & Fitch Co. Class A................... 44,449 216 American Eagle Outfitters, Inc. .................. 9,879 322 BorgWarner, Inc. ................................. 18,498 654 CarMax, Inc. (D).................................. 28,977 731 Chico's FAS, Inc. (D)............................. 17,486 245 Fastenal Co. ..................................... 9,871 764 Foster Wheeler Ltd. (D)........................... 34,351 469 Gildan Activewear, Inc. (D)(G).................... 23,913 540 Michaels Stores, Inc. ............................ 23,772 1,073 Newell Rubbermaid, Inc. .......................... 30,881 397 O'Reilly Automotive, Inc. (D)..................... 12,806 329 Oshkosh Truck Corp. .............................. 14,851 700 OSI Restaurant Partners, Inc. .................... 23,289 584 PACCAR, Inc. ..................................... 34,564 1,374 PetSmart, Inc. ................................... 39,552 963 Saks, Inc. ....................................... 18,628 1,574 Supervalu, Inc. .................................. 52,582 1,028 Tiffany & Co. .................................... 36,731 550 Williams-Sonoma, Inc. (G)......................... 18,702 ---------- 493,782 ---------- CONSUMER STAPLES -- 2.3% 519 Alberto-Culver Co. ............................... 26,391 540 Clorox Co. ....................................... 34,849 457 Tyson Foods, Inc. Class A......................... 6,604 ---------- 67,844 ---------- ENERGY -- 6.0% 652 Chesapeake Energy Corp. .......................... 21,138 865 GlobalSantaFe Corp. .............................. 44,894 540 Noble Corp. ...................................... 37,868 463 Noble Energy, Inc. ............................... 22,535 539 Southwestern Energy Co. (D)....................... 19,174 1,286 Western Oil Sands, Inc. Class A (D)............... 33,164 ---------- 178,773 ---------- FINANCE -- 12.7% 4,551 Aberdeen Asset Management plc (A)................. 15,286 477 AMBAC Financial Group, Inc. ...................... 39,783 619 AmeriCredit Corp. (D)(G).......................... 15,830
MARKET SHARES VALUE (W) --------- ---------- FINANCE -- (CONTINUED) 606 Assurant, Inc. ................................... $ 31,928 119 Blackrock, Inc. .................................. 17,965 1,467 E*Trade Financial Corp. (D)....................... 34,147 206 Everest Re Group Ltd. ............................ 20,431 731 Hong Kong Exchanges & Clearing Ltd. (A)........... 5,770 1,087 Host Hotels & Resorts, Inc. ...................... 25,065 632 State Street Corp. ............................... 40,593 941 T. Rowe Price Group, Inc. ........................ 44,514 1,386 UCBH Holdings, Inc. .............................. 23,754 1,352 UnumProvident Corp. .............................. 26,739 247 Ventas, Inc. ..................................... 9,628 516 Webster Financial Corp. .......................... 24,928 ---------- 376,361 ---------- HEALTH CARE -- 8.6% 319 Amylin Pharmaceuticals, Inc. (D)(G)............... 14,028 683 Barr Pharmaceuticals, Inc. (D).................... 35,748 386 Cephalon, Inc. (D)(G)............................. 27,098 363 Coventry Health Care, Inc. (D).................... 17,038 263 Edwards Lifesciences Corp. (D)(G)................. 11,303 472 Eisai Co., Ltd. (A)............................... 24,148 495 Manor Care, Inc. ................................. 23,736 1,446 Millennium Pharmaceuticals, Inc. (D)(G)........... 16,918 941 Mylan Laboratories, Inc. ......................... 19,288 74 Psychiatric Solutions, Inc. (D)................... 2,447 1,606 Shionogi & Co., Ltd. (A)(G)....................... 32,178 187 Universal Health Services, Inc. Class B........... 9,896 524 Vertex Pharmaceuticals, Inc. (D)(G)............... 21,258 ---------- 255,084 ---------- SERVICES -- 20.4% 534 Alliance Data Systems Corp. (D)(G)................ 32,431 313 Allied Waste Industries, Inc. (D)................. 3,801 925 Autodesk, Inc. (D)................................ 34,001 1,575 BISYS Group, Inc. (D)............................. 17,389 554 C.H. Robinson Worldwide, Inc. .................... 23,111 1,301 Cablevision Systems Corp. ........................ 36,155 2,818 Cadence Design Systems, Inc. (D).................. 50,322 572 Cognizant Technology Solutions Corp. (D).......... 43,083 163 Corporate Executive Board Co. .................... 14,659 524 EchoStar Communications Corp. Class A (D)......... 18,609 1,420 Equifax, Inc. .................................... 53,999 450 Fluor Corp. ...................................... 35,309 206 Focus Media Holding Ltd. ADR (D).................. 10,911 206 Harrah's Entertainment, Inc. ..................... 15,334 709 Manpower, Inc. ................................... 48,015 603 MoneyGram International, Inc. .................... 20,629 963 Monster Worldwide, Inc. (D)....................... 39,007 1,082 Republic Services, Inc. .......................... 44,352 475 Robert Half International, Inc. .................. 17,361 794 Univision Communications, Inc. Class A (D)(G)..... 27,848 368 Weight Watchers International, Inc. .............. 16,032 ---------- 602,358 ---------- TECHNOLOGY -- 14.8% 1,709 Activision, Inc. (D).............................. 26,345 822 ADTRAN, Inc. ..................................... 19,028
The accompanying notes are an integral part of these financial statements. 191 THE HARTFORD MIDCAP FUND SCHEDULE OF INVESTMENTS -- (CONTINUED) OCTOBER 31, 2006 (000'S OMITTED) --------------------------------------------------------------------------------
MARKET SHARES VALUE (W) --------- ---------- COMMON STOCK -- (CONTINUED) TECHNOLOGY -- (CONTINUED) 2,331 Altera Corp. (D).................................. $ 42,987 301 American Reprographics Co. (D).................... 10,686 1,190 American Tower Corp. Class A (D).................. 42,847 177 Beckman Coulter, Inc. ............................ 10,196 509 DaVita, Inc. (D).................................. 28,288 1,759 Fairchild Semiconductor International, Inc. (D)... 28,333 932 Jabil Circuit, Inc. .............................. 26,769 1,079 Linear Technology Corp. .......................... 33,591 668 MEMC Electronic Materials, Inc. (D)............... 23,710 544 Mercury Interactive Corp. (D)..................... 28,251 1,284 Network Appliance, Inc. (D)....................... 46,862 761 Rockwell Collins, Inc. ........................... 44,181 580 Roper Industries, Inc. ........................... 27,739 ---------- 439,813 ---------- TRANSPORTATION -- 1.3% 279 Expeditors International of Washington, Inc. ..... 13,237 282 Landstar System, Inc. ............................ 13,105 524 UTI Worldwide, Inc. .............................. 13,538 ---------- 39,880 ---------- UTILITIES -- 3.4% 1,543 Northeast Utilities............................... 38,585 678 NRG Energy, Inc. (D)(G)........................... 32,622 610 PNM Resources, Inc. .............................. 17,169 513 Suntech Power Holdings Co. Ltd. ADR (D)........... 13,331 ---------- 101,707 ---------- Total common stock (cost $2,472,475)............................... $2,836,005 ---------- PRINCIPAL AMOUNT --------- SHORT-TERM INVESTMENTS -- 7.1% REPURCHASE AGREEMENTS -- 4.7% $27,853 Bank of America Securities TriParty Joint Repurchase Agreement, 5.31%, 11/01/2006............................... $ 27,853 16,384 Credit Suisse Securities TriParty Joint Repurchase Agreement, 5.32%, 11/01/2006............................... 16,384 654 Deutsche Bank Securities Joint Repurchase Agreement, 5.25%, 11/01/2006............................... 654
PRINCIPAL MARKET AMOUNT VALUE (W) --------- ---------- REPURCHASE AGREEMENTS -- (CONTINUED) $13,107 Deutsche Bank Securities TriParty Joint Repurchase Agreement, 5.30%, 11/01/2006............................... $ 13,107 27,526 Deutsche Bank Securities TriParty Joint Repurchase Agreement, 5.32%, 11/01/2006............................... 27,526 15,074 Morgan Stanley & Co., Inc. TriParty Joint Repurchase Agreement, 5.29%, 11/01/2006............................... 15,074 37,028 UBS Securities TriParty Joint Repurchase Agreement, 5.31%, 11/01/2006............................... 37,028 ---------- 137,626 ---------- SHARES --------- SECURITIES PURCHASED WITH PROCEEDS FROM SECURITY LENDING -- 2.4% 72,566 Navigator Prime Portfolio......................... 72,566 ---------- Total short-term investments (cost $210,192)................................. $ 210,192 ---------- Total investments in securities (cost $2,682,667) (C)........................... $3,046,197 ==========
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 8.80% of total net assets at October 31, 2006. (A) The aggregate value of securities valued in good faith at fair value by, or under the direction of, the Funds' Board of Directors at October 31, 2006, was $77,382, which represents 2.61% of total net assets. (C) At October 31, 2006, the cost of securities for federal income tax purposes was $2,684,457 and the aggregate gross unrealized appreciation and depreciation based on that cost were: Unrealized appreciation........................ $418,625 Unrealized depreciation........................ (56,885) -------- Net unrealized appreciation.................... $361,740 ========
(D) Currently non-income producing. (G) Security is partially on loan at October 31, 2006. (W) See Note 2b of accompanying Notes to Financial Statements regarding valuation of securities. FORWARD FOREIGN CURRENCY CONTRACTS OUTSTANDING AT OCTOBER 31, 2006
UNREALIZED MARKET CONTRACT DELIVERY APPRECIATION DESCRIPTION TRANSACTION VALUE AMOUNT DATE (DEPRECIATION) ----------- ----------- ------ -------- ---------- -------------- British Pound Buy $ 339 $ 337 11/01/2006 $ 2 British Pound Buy 283 282 11/02/2006 1 British Pound Buy 668 668 11/03/2006 -- Hong Kong Dollars Buy 2,925 2,924 11/01/2006 1 ----- $ 4 =====
The accompanying notes are an integral part of these financial statements. 192 THE HARTFORD MIDCAP GROWTH FUND SCHEDULE OF INVESTMENTS OCTOBER 31, 2006 (000'S OMITTED) --------------------------------------------------------------------------------
MARKET SHARES VALUE (W) --------- --------- COMMON STOCK -- 97.8% BASIC MATERIALS -- 6.4% 2 Airgas, Inc. ..................................... $ 64 3 Cameco Corp. ..................................... 105 3 Consol Energy, Inc. .............................. 120 1 Phelps Dodge Corp. ............................... 110 2 Posco ADR......................................... 113 3 Teck Cominco Ltd. ................................ 206 ------- 718 ------- CAPITAL GOODS -- 3.5% 1 Alliant Techsystems, Inc. (D)..................... 108 2 Cameron International Corp. (D)................... 105 2 National Oilwell Varco, Inc. (D).................. 109 1 Rockwell Automation, Inc. ........................ 68 ------- 390 ------- CONSUMER CYCLICAL -- 7.9% 2 Abercrombie & Fitch Co. Class A................... 146 4 Advance Auto Parts, Inc. ......................... 123 10 Chico's FAS, Inc. (D)............................. 237 3 Gildan Activewear, Inc. (D)....................... 133 5 Newell Rubbermaid, Inc. .......................... 130 6 Urban Outfitters, Inc. (D)........................ 109 ------- 878 ------- CONSUMER STAPLES -- 4.5% 2 Bunge Ltd. ....................................... 115 5 Constellation Brands, Inc. Class A (D)............ 124 4 Corn Products International, Inc. ................ 148 3 Dean Foods Co. (D)................................ 109 ------- 496 ------- ENERGY -- 4.1% 1 Diamond Offshore Drilling, Inc. .................. 97 2 GlobalSantaFe Corp. .............................. 119 3 Newfield Exploration Co. (D)...................... 110 2 Noble Corp. ...................................... 126 ------- 452 ------- FINANCE -- 14.6% 1 Affiliated Managers Group, Inc. (D)............... 90 1 AMBAC Financial Group, Inc. ...................... 109 14 Covanta Holding Corp. (D)......................... 276 4 Eaton Vance Corp. ................................ 115 4 Genworth Financial, Inc. ......................... 120 6 Host Hotels & Resorts, Inc. ...................... 148 1 M&T Bank Corp. ................................... 100 2 Medco Health Solutions, Inc. (D).................. 86 7 Nasdaq Stock Market, Inc. (D)..................... 239 2 Reckson Associates Realty Corp. .................. 97 2 State Street Corp. ............................... 135 2 Wellcare Health Plans, Inc. (D)................... 106 ------- 1,621 -------
MARKET SHARES VALUE (W) --------- --------- HEALTH CARE -- 13.6% 2 Forest Laboratories, Inc. (D)..................... $ 108 3 Herbalife Ltd. (D)................................ 102 12 Human Genome Sciences, Inc. (D)................... 162 8 Inverness Medical Innovation...................... 313 3 Pharmaceutical Product Development, Inc. ......... 98 3 Quest Diagnostics, Inc. .......................... 149 3 Shire plc......................................... 186 5 Sunrise Senior Living, Inc. (D)................... 153 3 Ventana Medical Systems, Inc. (D)................. 129 8 Warner Chilcott Ltd. ............................. 110 ------- 1,510 ------- SERVICES -- 13.8% 3 Atheros Communications, Inc. (D).................. 54 4 Business Objects S.A. ADR (D)..................... 156 3 Corrections Corp. of America (D).................. 158 2 Express Scripts, Inc. (D)......................... 102 1 Fluor Corp. ...................................... 102 65 iGate Corp. ...................................... 367 6 Orient Express Hotels, Ltd. Class A............... 229 3 Penn National Gaming, Inc. (D).................... 113 6 Saic, Inc. (D).................................... 120 2 Washington Group International, Inc. ............. 130 ------- 1,531 ------- TECHNOLOGY -- 24.1% 1 Akamai Technologies, Inc. (D)..................... 61 4 Amdocs Ltd. (D)................................... 151 4 American Tower Corp. Class A (D).................. 130 8 Citizens Communications Co. ...................... 114 5 Citrix Systems, Inc. (D).......................... 133 2 Equinix, Inc. (D)................................. 116 10 Exlservice Holdings, Inc. (D)..................... 208 3 F5 Networks, Inc. (D)............................. 179 12 Flextronics International Ltd. (D)................ 144 3 Harris Corp. ..................................... 115 11 Juniper Networks, Inc. (D)........................ 186 3 MEMC Electronic Materials, Inc. (D)............... 99 3 Microchip Technology, Inc. ....................... 99 3 Neustar, Inc. (D)................................. 94 4 Rackable Systems, Inc. (D)........................ 112 3 Rockwell Collins, Inc. ........................... 197 3 Roper Industries, Inc. ........................... 139 5 Thermo Electron Corp. (D)......................... 193 2 Trimble Navigation Ltd. .......................... 102 2 Waters Corp. (D).................................. 100 ------- 2,672 ------- TRANSPORTATION -- 1.1% 4 Wabtec Corp....................................... 119 -------
The accompanying notes are an integral part of these financial statements. 193 THE HARTFORD MIDCAP GROWTH FUND SCHEDULE OF INVESTMENTS -- (CONTINUED) OCTOBER 31, 2006 (000'S OMITTED) --------------------------------------------------------------------------------
MARKET SHARES VALUE (W) --------- --------- COMMON STOCK -- (CONTINUED) UTILITIES -- 4.2% 2 Entergy Corp. .................................... $ 165 5 Northeast Utilities............................... 135 4 Wisconsin Energy Corp. ........................... 164 ------- 464 ------- Total common stock (cost $10,278).................................. $10,851 ------- PRINCIPAL AMOUNT --------- SHORT-TERM INVESTMENTS -- 2.8% REPURCHASE AGREEMENTS -- 2.8% $103 BNP Paribas Joint Repurchase Agreement, 5.24%, 11/01/2006............................... $ 103 106 RBS Greenwich Joint Repurchase Agreement, 5.24%, 11/01/2006............................... 106 104 UBS Securities LLC Repurchase Agreement, 5.24%, 11/01/2006............................... 104 ------- Total short-term investments (cost $313)..................................... $ 313 ------- Total investments in securities (cost $10,591) (C).............................. $11,164 =======
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 8.10% of total net assets at October 31, 2006. (C) At October 31, 2006, the cost of securities for federal income tax purposes was $10,624 and the aggregate gross unrealized appreciation and depreciation based on that cost were: Unrealized appreciation........................... $ 765 Unrealized depreciation........................... (225) ----- Net unrealized appreciation....................... $ 540 =====
(D) Currently non-income producing. (W) See Note 2b of accompanying Notes to Financial Statements regarding valuation of securities. The accompanying notes are an integral part of these financial statements. 194 THE HARTFORD MIDCAP VALUE FUND SCHEDULE OF INVESTMENTS OCTOBER 31, 2006 (000'S OMITTED) --------------------------------------------------------------------------------
MARKET SHARES VALUE (W) --------- --------- COMMON STOCK -- 99.1% BASIC MATERIALS -- 13.2% 12 Albemarle Corp. .................................. $ 780 90 Arch Coal, Inc. .................................. 3,120 37 Ashland, Inc. .................................... 2,181 51 Carlisle Cos., Inc. .............................. 4,268 167 Celanese Corp. ................................... 3,440 94 Century Aluminum Co. (D).......................... 3,674 518 Chemtura Corp. ................................... 4,442 101 Cleveland-Cliffs, Inc. (G)........................ 4,250 147 Cytec Industries, Inc. ........................... 8,142 70 FMC Corp. (D)..................................... 4,819 45 Martin Marietta Materials, Inc. .................. 3,978 20 Michelin (C.G.D.E.) Class B (A)................... 1,597 142 Owens-Illinois, Inc. (D).......................... 2,359 98 Pactiv Corp. (D).................................. 3,007 146 Shaw Group, Inc. (D).............................. 3,886 114 Temple-Inland, Inc. .............................. 4,492 110 UAP Holding Corp. ................................ 2,746 -------- 61,181 -------- CAPITAL GOODS -- 13.1% 112 AGCO Corp. (D).................................... 3,001 78 Alliant Techsystems, Inc. (D)..................... 6,022 119 American Standard Cos., Inc. ..................... 5,257 33 Black & Decker Corp. ............................. 2,776 257 Goodrich Corp. ................................... 11,322 108 Kennametal, Inc. ................................. 6,671 32 Lam Research Corp. (D)............................ 1,602 90 Parker-Hannifin Corp. ............................ 7,535 79 Terex Corp. (D)................................... 4,110 100 Toro Co. ......................................... 4,333 216 Varian Semiconductor Equipment Associates, Inc. (D)(G).......................................... 7,891 -------- 60,520 -------- CONSUMER CYCLICAL -- 9.3% 208 American Axle & Manufacturing Holdings, Inc. ..... 3,904 221 Arris Group, Inc. (D)............................. 2,955 87 BorgWarner, Inc. ................................. 4,980 370 Foot Locker, Inc. ................................ 8,590 79 Newell Rubbermaid, Inc. .......................... 2,274 28 Office Depot, Inc. (D)............................ 1,163 175 Ruby Tuesday, Inc. ............................... 4,856 79 TRW Automotive Holdings Corp. (D)................. 2,019 114 United Stationers, Inc. (D)....................... 5,453 29 V.F. Corp. ....................................... 2,166 103 Walter Industries (G)............................. 4,798 -------- 43,158 -------- CONSUMER STAPLES -- 3.7% 130 Bunge Ltd. (G).................................... 8,321 59 Ralcorp Holdings, Inc. (D)........................ 2,908 138 Smithfield Foods, Inc. (D)........................ 3,712 150 Tyson Foods, Inc. Class A......................... 2,162 -------- 17,103 --------
MARKET SHARES VALUE (W) --------- --------- ENERGY -- 3.8% 140 Newfield Exploration Co. (D)...................... $ 5,727 140 Noble Energy, Inc. ............................... 6,803 192 UGI Corp. ........................................ 5,096 -------- 17,626 -------- FINANCE -- 17.7% 55 Affiliated Managers Group, Inc. (D)(G)............ 5,548 116 AMBAC Financial Group, Inc. ...................... 9,651 370 Apollo Investment Corp. .......................... 7,969 161 CIT Group, Inc. .................................. 8,359 28 City National Corp. .............................. 1,857 16 Douglas Emmett, Inc. (D).......................... 382 215 E*Trade Financial Corp. (D)....................... 5,010 64 Everest Re Group Ltd. ............................ 6,338 344 Grupo Imsa S.A. de C.V. .......................... 1,482 228 Huntington Bancshares, Inc. ...................... 5,575 249 KKR Financial Corp. .............................. 6,670 150 Platinum Underwriters Holdings Ltd. .............. 4,482 121 Reinsurance Group of America, Inc. ............... 6,828 38 UnionBanCal Corp. ................................ 2,182 185 UnumProvident Corp. .............................. 3,649 114 Webster Financial Corp. .......................... 5,523 -------- 81,505 -------- HEALTH CARE -- 7.3% 168 Barr Pharmaceuticals, Inc. (D).................... 8,782 126 Cooper Companies, Inc. ........................... 7,256 252 Endo Pharmaceuticals Holdings, Inc. (D)........... 7,189 462 Impax Laboratories, Inc. (D)...................... 3,231 234 Theravance, Inc. (D).............................. 7,352 -------- 33,810 -------- SERVICES -- 9.8% 101 Avid Technology, Inc. (D)(G)...................... 3,659 340 BearingPoint, Inc. (D)............................ 2,829 206 Entercom Communications Corp. .................... 5,692 219 IMS Health, Inc. ................................. 6,091 215 R.H. Donnelley Corp. (G).......................... 12,935 181 R.R. Donnelley & Sons Co. ........................ 6,129 532 Unisys Corp. (D).................................. 3,481 115 URS Corp. (D)..................................... 4,627 -------- 45,443 -------- TECHNOLOGY -- 13.5% 101 Acuity Brands, Inc. .............................. 4,979 336 Arrow Electronics, Inc. (D)....................... 10,042 509 Cinram International Income Fund.................. 10,042 75 Embarq Corp. ..................................... 3,621 335 Fairchild Semiconductor International, Inc. (D)... 5,397 513 Flextronics International Ltd. (D)................ 5,945 140 NCR Corp. (D)..................................... 5,804 418 Powerwave Technologies, Inc. (D)(G)............... 2,721 201 QLogic Corp. (D).................................. 4,126 90 Syniverse Holdings, Inc. (D)...................... 1,320
The accompanying notes are an integral part of these financial statements. 195 THE HARTFORD MIDCAP VALUE FUND SCHEDULE OF INVESTMENTS -- (CONTINUED) OCTOBER 31, 2006 (000'S OMITTED) --------------------------------------------------------------------------------
MARKET SHARES VALUE (W) --------- --------- COMMON STOCK -- (CONTINUED) TECHNOLOGY -- (CONTINUED) 194 Tektronix, Inc. .................................. $ 5,892 164 Vishay Intertechnology, Inc. (D).................. 2,217 -------- 62,106 -------- TRANSPORTATION -- 2.3% 116 Trinity Industries, Inc. (G)...................... 4,181 177 UAL Corp. (D)..................................... 6,376 -------- 10,557 -------- UTILITIES -- 5.4% 208 Northeast Utilities............................... 5,212 338 PPL Corp. ........................................ 11,657 54 SBM Offshore N.V. (A)............................. 1,603 140 Wisconsin Energy Corp. ........................... 6,409 -------- 24,881 -------- Total common stock (cost $386,350)................................. $457,890 -------- PRINCIPAL AMOUNT --------- SHORT-TERM INVESTMENTS -- 8.9% REPURCHASE AGREEMENTS -- 1.3% $ 1,192 Bank of America Securities TriParty Joint Repurchase Agreement, 5.31%, 11/01/2006............................... $ 1,192 701 Credit Suisse Securities TriParty Joint Repurchase Agreement, 5.32%, 11/01/2006............................... 701 28 Deutsche Bank Securities Joint Repurchase Agreement, 5.25%, 11/01/2006............................... 28 561 Deutsche Bank Securities TriParty Joint Repurchase Agreement, 5.30%, 11/01/2006............................... 561 1,178 Deutsche Bank Securities TriParty Joint Repurchase Agreement, 5.32%, 11/01/2006............................... 1,178
PRINCIPAL MARKET AMOUNT VALUE (W) --------- --------- REPURCHASE AGREEMENTS -- (CONTINUED) $ 645 Morgan Stanley & Co., Inc. TriParty Joint Repurchase Agreement, 5.29%, 11/01/2006............................... $ 645 1,585 UBS Securities TriParty Joint Repurchase Agreement, 5.31%, 11/01/2006............................... 1,585 -------- 5,890 -------- MARKET SHARES VALUE (W) --------- --------- SECURITIES PURCHASED WITH PROCEEDS FROM SECURITY LENDING -- 7.6% 35,132 BNY Institutional Cash Reserve Fund............... 35,132 -------- Total short-term investments (cost $41,022).................................. $ 41,022 -------- Total investments in securities (cost $427,372) (C)............................. $498,912 ========
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 3.19% of total net assets at October 31, 2006. (A) The aggregate value of securities valued in good faith at fair value by, or under the direction of, the Funds' Board of Directors at October 31, 2006, was $3,200, which represents 0.69% of total net assets. (C) At October 31, 2006, the cost of securities for federal income tax purposes was $427,621 and the aggregate gross unrealized appreciation and depreciation based on that cost were: Unrealized appreciation........................ $ 81,469 Unrealized depreciation........................ (10,178) -------- Net unrealized appreciation.................... $ 71,291 ========
(D) Currently non-income producing. (G) Security is partially on loan at October 31, 2006. (W) See Note 2b of accompanying Notes to Financial Statements regarding valuation of securities. FORWARD FOREIGN CURRENCY CONTRACTS OUTSTANDING AT OCTOBER 31, 2006
UNREALIZED MARKET CONTRACT DELIVERY APPRECIATION DESCRIPTION TRANSACTION VALUE AMOUNT DATE (DEPRECIATION) ----------- ----------- ------ -------- ---------- -------------- Euro Sell $232 $232 11/03/2006 $-- ===
The accompanying notes are an integral part of these financial statements. 196 THE HARTFORD MONEY MARKET FUND SCHEDULE OF INVESTMENTS OCTOBER 31, 2006 (000'S OMITTED) --------------------------------------------------------------------------------
PRINCIPAL MATURITY MARKET AMOUNT YIELD DATE VALUE (W) --------- ----- ---------- --------- CONSUMER CYCLICAL -- 1.3% $3,410 Wal-Mart Stores, Inc. (L)......................... 5.26% 03/28/2007 $ 3,409 -------- CONSUMER STAPLES -- 3.0% 3,000 Alcoa, Inc. ...................................... 5.30% 11/15/2006 2,994 2,900 Alcoa, Inc. ...................................... 5.30% 11/16/2006 2,894 2,088 KFW International Finance, Inc. .................. 5.29% 11/01/2006 2,088 -------- $ 7,976 -------- FINANCE -- 96.7% 3,300 Ab Spintab........................................ 5.31% 01/29/2007 3,257 3,300 Ab Spintab........................................ 5.32% 01/30/2007 3,257 3,300 Alliance & Leicester plc.......................... 5.33% 03/02/2007 3,243 3,300 American Express Credit Corp. .................... 5.26% 12/14/2006 3,279 3,500 American Express Credit Corp. (L)................. 5.41% 12/15/2006 3,501 3,500 American General Finance Corp. ................... 5.24% 11/07/2006 3,497 2,800 American General Finance Corp. (L)................ 5.43% 03/23/2007 2,801 3,500 American Honda Finance Corp. ..................... 5.24% 11/16/2006 3,492 3,500 American Honda Finance Corp. (I)(L)............... 5.47% 08/08/2007 3,500 3,500 Amsterdam Funding Group........................... 5.26% 11/01/2006 3,500 3,300 Amsterdam Funding Group........................... 5.27% 11/17/2006 3,292 2,680 Bank of America Corp. ............................ 5.25% 11/06/2006 2,678 3,300 Bank of America NA (L)............................ 5.30% 11/20/2006 3,300 3,300 Bank of America NA (L)............................ 5.32% 05/15/2007 3,338 3,500 Barton Capital Corp. ............................. 5.26% 11/08/2006 3,496 3,500 Barton Capital Corp. ............................. 5.26% 11/09/2006 3,496 3,000 Bear Stearns & Co., Inc. (L)...................... 5.31% 10/12/2007 3,000 2,900 Bear Stearns & Co., Inc. (L)...................... 5.38% 06/29/2007 2,913 3,000 Bradford & Bingley plc............................ 5.29% 12/04/2006 2,986 3,030 Bradford & Bingley plc............................ 5.30% 12/18/2006 3,010 3,300 Britannia Building Society........................ 5.28% 11/29/2006 3,286 3,000 Britannia Building Society........................ 5.29% 11/13/2006 2,995 3,300 Cafco LLC......................................... 5.27% 11/08/2006 3,297 3,300 Cafco LLC......................................... 5.28% 12/06/2006 3,283 2,500 Cafco LLC......................................... 5.29% 12/14/2006 2,484 6,000 Caterpillar Financial Services Corp. (L).......... 5.39% 07/27/2007 6,001 5,000 Citigroup Funding, Inc. .......................... 5.23% 11/06/2006 4,996 2,751 Countrywide Financial Corp. ...................... 5.29% 11/01/2006 2,751 3,100 Countrywide Financial Corp. ...................... 5.29% 11/10/2006 3,096 4,700 Federal National Mortgage Association............. 5.61% 09/05/2007 4,700 3,300 General Electric Capital Corp. ................... 5.26% 11/27/2006 3,288 2,600 General Electric Capital Corp. (L)................ 5.28% 10/24/2007 2,600 4,505 General Electric Capital Corp. (L)................ 5.45% 01/05/2007 4,506 6,670 Goldman Sachs Group, Inc. (L)..................... 5.47% 03/30/2007 6,674
PRINCIPAL MATURITY MARKET AMOUNT YIELD DATE VALUE (W) --------- ----- ---------- --------- FINANCE -- (CONTINUED) $2,300 HBOS Treasury Services plc........................ 5.28% 12/07/2006 $ 2,288 1,000 HBOS Treasury Services plc........................ 5.28% 12/08/2006 995 3,560 HBOS Treasury Services plc (I)(L)................. 5.29% 10/09/2007 3,559 3,300 HSBC Finance Corp. ............................... 5.26% 12/01/2006 3,286 3,500 HSBC Finance Corp. (L)............................ 5.31% 10/05/2007 3,500 3,800 JP Morgan Chase & Co. (L)......................... 5.29% 10/02/2007 3,800 3,000 Merrill Lynch & Co., Inc. (L)..................... 5.30% 10/24/2007 3,000 3,100 Merrill Lynch & Co., Inc. (L)..................... 5.36% 05/29/2007 3,100 3,500 Morgan Stanley (L)................................ 5.30% 11/28/2006 3,501 3,300 Morgan Stanley (L)................................ 5.43% 06/26/2007 3,301 3,500 Morgan Stanley (L)................................ 5.48% 01/19/2007 3,501 3,300 Nationwide Building Society....................... 5.32% 01/25/2007 3,259 3,300 Nationwide Building Society (I)................... 5.32% 01/29/2007 3,257 2,850 Nordea North America.............................. 5.26% 11/01/2006 2,850 3,300 Nordea North America (I)(L)....................... 5.30% 10/09/2007 3,300 3,500 Northern Rock plc................................. 5.26% 11/01/2006 3,500 3,300 Northern Rock plc................................. 5.32% 01/30/2007 3,257 3,300 Old Line Funding (I).............................. 5.26% 11/02/2006 3,300 3,000 Old Line Funding.................................. 5.26% 11/03/2006 2,999 2,972 Old Line Funding.................................. 5.35% 11/06/2006 2,970 3,500 Preferred Funding (I)............................. 5.27% 11/14/2006 3,493 3,300 Preferred Funding (I)............................. 5.27% 11/20/2006 3,291 2,018 Preferred Funding (I)............................. 5.28% 11/22/2006 2,012 3,300 Sheffield Receivables............................. 5.27% 11/15/2006 3,293 4,250 Sheffield Receivables............................. 5.29% 12/14/2006 4,223 2,970 Skandinaviska Enskilda Bank (I)(L)................ 5.28% 07/19/2007 2,970 3,400 Skandinaviska Enskilda Bank NY (I)(L)............. 5.31% 10/09/2007 3,400 3,300 SLM Corp. (I)(L).................................. 5.32% 10/12/2007 3,300 2,760 SLM Corp. (L)..................................... 5.50% 01/25/2007 2,761 3,300 Svenska Handelsbanken Ab.......................... 5.28% 11/27/2006 3,303 7,000 Toyota Motor Credit Corp. (L)..................... 5.35% 09/24/2007 7,000 2,800 Triple A-1 Funding................................ 5.27% 11/16/2006 2,794 2,930 Triple A-1 Funding................................ 5.27% 11/17/2006 2,923 3,300 UBS Finance LLC................................... 5.26% 11/03/2006 3,299 3,300 UBS Finance LLC................................... 5.27% 12/04/2006 3,284 3,320 Washington Mutual Bank (L)........................ 5.35% 08/27/2007 3,320 3,215 Washington Mutual Bank (L)........................ 5.44% 02/28/2007 3,216 3,000 Wells Fargo & Co. (L)............................. 5.45% 03/23/2007 3,001 3,300 Westpac Banking Corp. ............................ 5.28% 12/12/2006 3,280 3,400 Westpac Banking Corp. (I)(L)...................... 5.29% 07/16/2007 3,400 3,500 Yorktown Capital.................................. 5.27% 11/08/2006 3,495 3,300 Yorktown Capital.................................. 5.28% 11/29/2006 3,285 1,837 Yorktown Capital.................................. 5.29% 12/05/2006 1,826 -------- 257,485 -------- Total investments in securities (cost $268,870) (C)............................. $268,870 ========
The accompanying notes are an integral part of these financial statements. 197 THE HARTFORD MONEY MARKET FUND SCHEDULE OF INVESTMENTS -- (CONTINUED) OCTOBER 31, 2006 (000'S OMITTED) -------------------------------------------------------------------------------- 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 6.25% of total net assets at October 31, 2006. (C) Also represents cost for federal tax purposes. (I) 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 qualified institutional buyers. 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, 2006, was $38,782, which represents 14.57% of total net assets. (L) Variable rate securities; the yield reported is the rate in effect at October 31, 2006. (W) See Note 2b of accompanying Notes to Financial Statements regarding valuation of securities. The accompanying notes are an integral part of these financial statements. 198 THE HARTFORD RETIREMENT INCOME FUND SCHEDULE OF INVESTMENTS OCTOBER 31, 2006 (000'S OMITTED) --------------------------------------------------------------------------------
MARKET SHARES VALUE (W) --------- --------- AFFILIATED INVESTMENT COMPANIES -- 97.0% EQUITY FUNDS -- 27.4% 2 Hartford Capital Appreciation Fund, Class Y....... $ 64 4 Hartford Disciplined Equity Fund, Class Y......... 50 1 Hartford Equity Income Fund, Class Y.............. 20 1 Hartford Global Leaders Fund, Class Y............. 19 -- Hartford International Capital Appreciation Fund, Class Y......................................... 5 1 Hartford International Opportunities Fund, Class Y............................................... 15 -- Hartford International Small Company Fund, Class Y............................................... 7 1 Hartford MidCap Value Fund, Class Y............... 8 -- Hartford Select MidCap Growth Fund, Class Y....... 3 2 Hartford Select Midcap Value Fund, Class Y........ 24 1 Hartford Small Company Fund, Class Y (D).......... 12 1 Hartford Value Fund, Class Y...................... 11 ---- Total equity funds (cost $224)..................................... $238 ---- FIXED INCOME FUNDS -- 68.2% 5 Hartford Floating Rate Fund, Class Y.............. 55 4 Hartford High Yield Fund, Class Y................. 35 -- Hartford Income Fund, Class Y..................... 3 11 Hartford Inflation Plus Fund, Class Y............. 119 22 Hartford Short Duration Fund, Class Y............. 216 15 Hartford Total Return Bond Fund, Class Y.......... 164 ---- Total fixed income funds (cost $591)..................................... $592 ----
MARKET SHARES VALUE (W) --------- --------- MONEY MARKET FUND -- 1.4% 12 Hartford Money Market Fund, Class Y............... $ 12 ---- Total money market fund (cost $12)...................................... $ 12 ---- Total investments in affiliated investment companies (cost $827) (C)................................. $842 ====
Note: Percentage of investments as shown is the ratio of the total market value to total net assets. (C) At October 31, 2006, the cost of securities for federal income tax purposes was $828 and the aggregate gross unrealized appreciation and depreciation based on that cost were: Unrealized appreciation............................. $14 Unrealized depreciation............................. -- --- Net unrealized appreciation......................... $14 ===
(D) Currently non-income producing. (W) See Note 2b of accompanying Notes to Financial Statements regarding valuation of securities. The accompanying notes are an integral part of these financial statements. 199 THE HARTFORD SELECT MIDCAP GROWTH FUND SCHEDULE OF INVESTMENTS OCTOBER 31, 2006 (000'S OMITTED) --------------------------------------------------------------------------------
MARKET SHARES VALUE (W) --------- --------- COMMON STOCK -- 92.8% BASIC MATERIALS -- 4.4% 5 Airgas, Inc. ..................................... $ 200 2 Carpenter Technology Corp. ....................... 241 5 Church & Dwight Co., Inc. ........................ 203 7 Florida Rock Industries, Inc. .................... 320 8 Fortune Brands, Inc. ............................. 623 11 Precision Castparts Corp. ........................ 776 6 USG Corp. (D)..................................... 287 ------- 2,650 ------- CAPITAL GOODS -- 8.5% 5 Alliant Techsystems, Inc. (D)..................... 366 8 American Standard Cos., Inc. ..................... 370 4 Black & Decker Corp. ............................. 308 10 Cameron International Corp. (D)................... 513 13 Dresser-Rand Group, Inc. (D)...................... 275 11 Grant Prideco, Inc. (D)........................... 434 4 International Game Technology..................... 167 4 Lam Research Corp. (D)............................ 192 2 National Oilwell Varco, Inc. (D).................. 113 12 Rockwell Automation, Inc. ........................ 727 9 Scientific Games Corp. Class A (D)................ 262 11 Smith International, Inc. ........................ 441 6 Terex Corp. (D)................................... 335 10 Tessera Technologies, Inc. (D).................... 363 7 Varian Semiconductor Equipment Associates, Inc. (D)............................................. 244 ------- 5,110 ------- CONSUMER CYCLICAL -- 9.9% 4 Abercrombie & Fitch Co. Class A................... 293 9 Advance Auto Parts, Inc. ......................... 327 20 Avnet, Inc. (D)................................... 481 11 Burger King Holdings, Inc. (D).................... 180 8 Carter's, Inc. (D)................................ 226 16 Chico's FAS, Inc. (D)............................. 388 11 Coach, Inc. (D)................................... 448 3 Coldwater Creek, Inc. (D)......................... 99 5 Fastenal Co. ..................................... 219 4 MSC Industrial Direct Co., Inc. .................. 175 11 Newell Rubbermaid, Inc. .......................... 302 5 Oshkosh Truck Corp. .............................. 235 5 PetSmart, Inc. ................................... 158 4 Polo Ralph Lauren Corp. .......................... 274 3 Tiffany & Co. .................................... 91 6 Tim Hortons, Inc. (D)............................. 174 9 TJX Cos., Inc. ................................... 255 6 Tractor Supply Co. (D)............................ 282 19 Urban Outfitters, Inc. (D)........................ 337 7 W.W. Grainger, Inc. .............................. 486 14 Williams-Sonoma, Inc. ............................ 487 ------- 5,917 ------- CONSUMER STAPLES -- 1.2% 4 Bare Escentuals, Inc. ............................ 115 11 Hershey Co. ...................................... 588 ------- 703 ------- ENERGY -- 5.0% 9 BJ Services Co. .................................. 280 10 Complete Production Services, Inc. (D)............ 190 4 ENSCO International, Inc. ........................ 199 5 Forest Oil Corp. (D).............................. 174
MARKET SHARES VALUE (W) --------- --------- ENERGY -- (CONTINUED) 12 Newfield Exploration Co. (D)...................... $ 474 13 Patterson-UTI Energy, Inc. ....................... 310 5 Quicksilver Resources, Inc. (D)................... 162 14 Range Resources Corp. ............................ 393 8 Superior Energy Services, Inc. (D)................ 241 10 Weatherford International Ltd. (D)................ 399 4 XTO Energy, Inc. ................................. 194 ------- 3,016 ------- FINANCE -- 10.0% 7 Affiliated Managers Group, Inc. (D)............... 692 4 Arch Capital Group Ltd. (D)....................... 254 12 Aspen Insurance Holdings Ltd. .................... 302 6 CapitalSource, Inc. (D)........................... 161 8 CB Richard Ellis Group, Inc. Class A (D).......... 252 3 Commerce Bancorp, Inc. ........................... 118 8 Comverse Technology, Inc. (D)..................... 169 4 Douglas Emmett, Inc. (D).......................... 91 30 E*Trade Financial Corp. (D)....................... 690 19 Global Cash Access, Inc. (D)...................... 305 11 Host Hotels & Resorts, Inc. ...................... 248 2 IntercontinentalExchange, Inc. (D)................ 179 4 Legg Mason, Inc. ................................. 319 1 MasterCard, Inc. ................................. 94 17 Montpelier Re Holdings Ltd. ...................... 305 2 Morningstar, Inc. ................................ 92 6 Nasdaq Stock Market, Inc. (D)..................... 220 5 Northern Trust Corp. ............................. 311 6 TCF Financial Corp. .............................. 153 11 W.R. Berkley Corp. ............................... 405 17 Willis Group Holdings Ltd. ....................... 634 ------- 5,994 ------- HEALTH CARE -- 12.1% 3 Allergan, Inc. ................................... 304 6 Barr Pharmaceuticals, Inc. (D).................... 333 3 Brookdale Senior Living, Inc. .................... 143 5 C.R. Bard, Inc. .................................. 390 10 Celgene Corp. (D)................................. 555 6 Cephalon, Inc. (D)................................ 398 10 Charles River Laboratories International, Inc. (D)............................................. 447 6 Cooper Companies, Inc. ........................... 334 8 Covance, Inc. (D)................................. 465 8 Endo Pharmaceuticals Holdings, Inc. (D)........... 230 6 Gen-Probe, Inc. (D)............................... 304 8 Henry Schein, Inc. (D)............................ 395 6 Kinetic Concepts, Inc. (D)........................ 215 5 Kos Pharmaceuticals, Inc. (D)..................... 265 30 MedImmune, Inc. (D)............................... 949 3 OSI Pharmaceuticals, Inc. (D)..................... 100 9 Respironics, Inc. (D)............................. 313 23 St. Jude Medical, Inc. (D)........................ 785 4 Zimmer Holdings, Inc. (D)......................... 316 ------- 7,241 ------- SERVICES -- 14.7% 7 Alliance Data Systems Corp. (D)................... 446 13 Allied Waste Industries, Inc. (D)................. 152 4 aQuantive, Inc. (D)............................... 119 15 Autodesk, Inc. (D)................................ 546 7 Brookfield Asset Management, Inc. ................ 316 6 Cablevision Systems Corp. ........................ 153 4 Cerner Corp. (D).................................. 210
The accompanying notes are an integral part of these financial statements. 200 --------------------------------------------------------------------------------
MARKET SHARES VALUE (W) --------- --------- COMMON STOCK -- (CONTINUED) SERVICES -- (CONTINUED) 11 CheckFree Corp. (D)............................... $ 439 5 Cintas Corp. ..................................... 212 12 Cogent, Inc. (D).................................. 143 9 Cognizant Technology Solutions Corp. (D).......... 659 4 Corporate Executive Board Co. .................... 370 31 Entravision Communications Corp. Class A (D)...... 227 5 Express Scripts, Inc. (D)......................... 299 7 Factset Research Systems, Inc. ................... 354 7 Gaylord Entertainment Co. (D)..................... 342 5 Getty Images, Inc. (D)............................ 218 1 Harrah's Entertainment, Inc. ..................... 91 4 Harsco Corp. ..................................... 286 16 Hilton Hotels Corp. .............................. 451 12 IMS Health, Inc. ................................. 346 6 Iron Mountain, Inc. (D)........................... 250 8 Lamar Advertising Co. (D)......................... 456 8 Liberty Global, Inc. (D).......................... 210 14 Paychex, Inc. .................................... 543 5 Penn National Gaming, Inc. (D).................... 180 4 Robert Half International, Inc. .................. 160 4 VCA Antech, Inc. (D).............................. 130 7 Weight Watchers International, Inc. .............. 298 18 XM Satellite Radio Holdings, Inc. Class A (D)..... 205 ------- 8,811 ------- TECHNOLOGY -- 23.4% 29 Activision, Inc. (D).............................. 446 4 Advanced Micro Devices, Inc. (D).................. 95 10 Akamai Technologies, Inc. (D)..................... 462 14 American Tower Corp. Class A (D).................. 509 6 AMETEK, Inc. ..................................... 292 13 Amphenol Corp. Class A............................ 882 14 Analog Devices, Inc. ............................. 437 30 Andrew Corp. (D).................................. 282 3 Broadcom Corp. Class A (D)........................ 98 15 Ceridian Corp. (D)................................ 361 6 Citrix Systems, Inc. (D).......................... 184 27 CNET Networks, Inc. (D)........................... 245 11 Crown Castle International Corp. (D).............. 354 10 DaVita, Inc. (D).................................. 582 3 Dun & Bradstreet Corp. (D)........................ 209 1 Electronic Arts, Inc. (D)......................... 76 8 Fidelity National Information Services, Inc. ..... 333 6 Fiserv, Inc. (D).................................. 314 3 Fisher Scientific International, Inc. (D)......... 229 15 FormFactor, Inc. (D).............................. 568 2 Garmin Ltd. ...................................... 108 8 Harman International Industries, Inc. ............ 815 13 IAC/Interactive Corp. (D)......................... 389 27 Jabil Circuit, Inc. .............................. 771 4 L-3 Communications Holdings, Inc. ................ 302 14 Linear Technology Corp. .......................... 434 9 Marvell Technology Group Ltd. (D)................. 168 4 MEMC Electronic Materials, Inc. (D)............... 150 9 Microchip Technology, Inc. ....................... 306 7 National Semiconductor Corp. ..................... 164
MARKET SHARES VALUE (W) --------- --------- TECHNOLOGY -- (CONTINUED) 25 NAVTEQ Corp. (D).................................. $ 823 5 Network Appliance, Inc. (D)....................... 197 20 Neustar, Inc. (D)................................. 579 5 NII Holdings, Inc. Class B (D).................... 341 19 Palm, Inc. (D).................................... 286 3 Research In Motion Ltd. (D)....................... 378 6 Roper Industries, Inc. ........................... 289 3 SanDisk Corp. (D)................................. 166 10 Satyam Computer Services Ltd. (D)................. 214 14 Western Digital Corp. (D)......................... 258 ------- 14,096 ------- TRANSPORTATION -- 2.8% 5 American Commercial Lines, Inc. (D)............... 297 21 Gentex Corp. ..................................... 332 8 McDermott International, Inc. (D)................. 378 8 Royal Caribbean Cruises Ltd. ..................... 330 9 Southwest Airlines Co. ........................... 130 7 UTI Worldwide, Inc. .............................. 186 ------- 1,653 ------- UTILITIES -- 0.8% 9 Kinder Morgan Management LLC...................... 393 4 Suntech Power Holdings Co. Ltd. ADR (D)........... 98 ------- 491 ------- Total common stock (cost $54,340).................................. $55,682 ------- PRINCIPAL AMOUNT --------- SHORT-TERM INVESTMENTS -- 3.2% FINANCE -- 3.2% $1,943 State Street Bank Money Market Fund............... $ 1,943 ------- Total short-term investments (cost $1,943)................................... $ 1,943 ------- Total investments in securities (cost $56,283) (C).............................. $57,625 =======
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 3.07% of total net assets at October 31, 2006. (C) At October 31, 2006, the cost of securities for federal income tax purposes was $56,470 and the aggregate gross unrealized appreciation and depreciation based on that cost were: Unrealized appreciation......................... $ 3,797 Unrealized depreciation......................... (2,642) ------- Net unrealized appreciation..................... $ 1,155 =======
(D) Currently non-income producing. (W) See Note 2b of accompanying Notes to Financial Statements regarding valuation of securities. The accompanying notes are an integral part of these financial statements. 201 THE HARTFORD SELECT MIDCAP VALUE FUND SCHEDULE OF INVESTMENTS OCTOBER 31, 2006 (000'S OMITTED) --------------------------------------------------------------------------------
MARKET SHARES VALUE (W) --------- --------- COMMON STOCK -- 94.5% BASIC MATERIALS -- 6.0% 1 Albemarle Corp. .................................. $ 72 16 Ball Corp. ....................................... 649 6 Carlisle Cos., Inc. .............................. 469 10 Crane Co. ........................................ 403 5 Fortune Brands, Inc. ............................. 369 14 Lubrizol Corp. ................................... 617 6 Precision Castparts Corp. ........................ 388 8 Rohm & Haas Co. .................................. 394 14 Syngenta AG ADR................................... 464 8 USG Corp. (D)..................................... 396 20 Valspar Corp. .................................... 531 ------- 4,752 ------- CAPITAL GOODS -- 4.0% 13 American Standard Cos., Inc. ..................... 562 18 Goodrich Corp. ................................... 789 10 Hasbro, Inc. ..................................... 264 10 Ingersoll-Rand Co. Class A........................ 360 23 Marvel Entertainment, Inc. (D).................... 581 7 Textron, Inc. .................................... 655 ------- 3,211 ------- CONSUMER CYCLICAL -- 13.2% 5 AutoZone, Inc. (D)................................ 560 59 Avnet, Inc. (D)................................... 1,404 9 Chico's FAS, Inc. (D)............................. 206 23 Claire's Stores, Inc. ............................ 655 22 Dollar Tree Stores, Inc. (D)...................... 687 22 Foot Locker, Inc. ................................ 510 12 Furniture Brands International, Inc. ............. 218 15 Genuine Parts Co. ................................ 660 33 Ingram Micro, Inc. (D)............................ 674 16 Kohl's Corp. (D).................................. 1,130 58 Leggett & Platt, Inc. ............................ 1,346 15 Liz Claiborne, Inc. .............................. 616 7 Mohawk Industries, Inc. (D)....................... 480 -- Oshkosh Truck Corp. .............................. 5 9 Sysco Corp. ...................................... 297 8 Yum! Brands, Inc. ................................ 446 20 Zale Corp. (D).................................... 580 ------- 10,474 ------- CONSUMER STAPLES -- 1.4% 5 McCormick & Co., Inc. ............................ 180 21 Pilgrim's Pride Corp. ............................ 527 28 Tyson Foods, Inc. Class A......................... 410 ------- 1,117 ------- ENERGY -- 7.4% 5 AGL Resources, Inc. .............................. 180 8 Apache Corp. ..................................... 509 14 Cimarex Energy Co. ............................... 515 9 ENSCO International, Inc. ........................ 455 25 Forest Oil Corp. (D).............................. 816 14 Mariner Energy, Inc. (D).......................... 279
MARKET SHARES VALUE (W) --------- --------- ENERGY -- (CONTINUED) 12 Nabors Industries Ltd. (D)........................ $ 383 12 Noble Energy, Inc. ............................... 598 9 ONEOK, Inc. ...................................... 391 17 Pioneer Natural Resources Co. .................... 709 9 Pogo Producing Co. ............................... 385 19 Williams Cos., Inc. .............................. 462 5 XTO Energy, Inc. ................................. 229 ------- 5,911 ------- FINANCE -- 24.6% 3 Alleghany Corp. (D)............................... 896 7 Allied World Assurance Holdings Ltd. (D).......... 284 8 Ameriprise Financial, Inc. ....................... 412 23 AMVESCAP plc ADR.................................. 535 59 Annaly Capital Management, Inc. .................. 775 28 AON Corp. ........................................ 960 2 Arch Capital Group Ltd. (D)....................... 154 16 Arthur J. Gallagher & Co. ........................ 434 23 Comverse Technology, Inc. (D)..................... 509 18 E*Trade Financial Corp. (D)....................... 421 20 Endurance Specialty Holdings Ltd. ................ 720 30 Fidelity National Financial, Inc. ................ 673 48 Fidelity National Title Group, Inc. .............. 1,062 11 Hudson City Bancorp, Inc. ........................ 154 14 Keycorp........................................... 507 20 Leucadia National Corp. .......................... 535 13 Marshall & Ilsley Corp. .......................... 604 23 MBIA, Inc. ....................................... 1,454 13 Mellon Financial Corp. ........................... 485 18 Mercury General Corp. ............................ 945 7 Nuveen Investments, Inc. Class A.................. 365 3 People's Bank..................................... 130 7 PNC Financial Services Group, Inc. ............... 504 18 Popular, Inc. .................................... 327 8 Protective Life Corp. ............................ 350 8 Rent-A-Center, Inc. (D)........................... 242 9 Ryder System, Inc. ............................... 490 21 StanCorp Financial Group, Inc. ................... 941 6 State Street Corp. ............................... 385 5 The Student Loan Corp. ........................... 1,103 36 Waddell and Reed Financial, Inc. Class A.......... 921 25 Washington Federal, Inc. ......................... 571 1 White Mountains Insurance Group Ltd. ............. 687 ------- 19,535 ------- HEALTH CARE -- 5.1% 8 Boston Scientific Corp. (D)....................... 130 7 C.R. Bard, Inc. .................................. 607 22 King Pharmaceuticals, Inc. (D).................... 365 5 Novo Nordisk A/S ADR.............................. 384 7 Omnicare, Inc. ................................... 254 13 Par Pharmaceutical Cos., Inc. (D)................. 254 8 Quest Diagnostics, Inc. .......................... 383 23 Serono S.A. ADR................................... 495 14 STERIS Corp. ..................................... 346
The accompanying notes are an integral part of these financial statements. 202 --------------------------------------------------------------------------------
MARKET SHARES VALUE (W) --------- --------- COMMON STOCK -- (CONTINUED) HEALTH CARE -- (CONTINUED) 12 Watson Pharmaceuticals, Inc. (D).................. $ 330 7 Zimmer Holdings, Inc. (D)......................... 522 ------- 4,070 ------- SERVICES -- 13.3% 6 Apollo Group, Inc. Class A (D).................... 233 103 BISYS Group, Inc. (D)............................. 1,138 9 Brookfield Asset Management, Inc. ................ 401 24 Clear Channel Communications, Inc. ............... 829 19 Computer Sciences Corp. (D)....................... 996 10 Convergys Corp. (D)............................... 216 48 Discovery Holding Co. (D)......................... 711 10 Gannett Co., Inc. ................................ 588 12 H & R Block, Inc. ................................ 260 23 Hewitt Associates, Inc. (D)....................... 571 15 Hilton Hotels Corp. .............................. 419 11 International Speedway Corp. Class A.............. 579 75 Interpublic Group of Cos., Inc. (D)............... 815 14 Manpower, Inc. ................................... 956 9 MoneyGram International, Inc. .................... 301 14 R.H. Donnelley Corp. ............................. 846 24 Synopsys, Inc. (D)................................ 540 8 Universal Technical Institute, Inc. (D)........... 150 ------- 10,549 ------- TECHNOLOGY -- 12.7% 15 Activision, Inc. (D).............................. 224 4 Affiliated Computer Services, Inc. Class A (D).... 230 5 Amphenol Corp. Class A............................ 367 13 Analog Devices, Inc. ............................. 417 2 Beckman Coulter, Inc. ............................ 132 24 BMC Software, Inc. (D)............................ 732 52 CA, Inc. ......................................... 1,275 20 CSG Systems International, Inc. (D)............... 544 6 Dover Corp. ...................................... 299 7 Dun & Bradstreet Corp. (D)........................ 556 51 First Data Corp. ................................. 1,237 12 Lexmark International, Inc. ADR (D)............... 792 41 LSI Logic Corp. (D)............................... 409 9 Millipore Corp. (D)............................... 581 17 NCR Corp. (D)..................................... 689 22 PerkinElmer, Inc. ................................ 468 19 Polycom, Inc. (D)................................. 516 22 Progress Software Corp. (D)....................... 620 ------- 10,088 -------
MARKET SHARES VALUE (W) --------- --------- TRANSPORTATION -- 1.9% 13 Con-way, Inc. .................................... $ 594 11 Teekay Shipping Corp. ............................ 448 12 YRC Worldwide, Inc. (D)........................... 477 ------- 1,519 ------- UTILITIES -- 4.9% 33 CMS Energy Corp. (D).............................. 497 4 Constellation Energy Group, Inc. ................. 262 9 Equitable Resources, Inc. ........................ 353 -- FirstEnergy Corp. ................................ 18 10 FPL Group, Inc. .................................. 495 5 Northeast Utilities............................... 135 12 PG&E Corp. ....................................... 505 18 PPL Corp. ........................................ 611 13 Questar Corp. .................................... 1,042 ------- 3,918 ------- Total common stock (cost $69,065).................................. $75,144 ------- SHORT-TERM INVESTMENTS -- 4.4% FINANCE -- 4.4% 3,500 State Street Bank Money Market Fund............... $ 3,500 ------- Total short-term investments (cost $3,500)................................... $ 3,500 ------- Total investments in securities (cost $72,565) (C).............................. $78,644 =======
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 2.93% of total net assets at October 31, 2006. (C) At October 31, 2006, the cost of securities for federal income tax purposes was $72,740 and the aggregate gross unrealized appreciation and depreciation based on that cost were: Unrealized appreciation.......................... $6,511 Unrealized depreciation.......................... (607) ------ Net unrealized appreciation...................... $5,904 ======
(D) Currently non-income producing. (W) See Note 2b of accompanying Notes to Financial Statements regarding valuation of securities. The accompanying notes are an integral part of these financial statements. 203 THE HARTFORD SELECT SMALLCAP GROWTH FUND SCHEDULE OF INVESTMENTS OCTOBER 31, 2006 (000'S OMITTED) --------------------------------------------------------------------------------
MARKET SHARES VALUE (W) --------- --------- COMMON STOCK -- 94.3% BASIC MATERIALS -- 5.6% 1 Airgas, Inc. ..................................... $ 30 2 Alpha Natural Resources, Inc. (D)................. 37 2 Century Aluminum Co. (D).......................... 82 3 Ceradyne, Inc. (D)................................ 124 9 Coeur d'Alene Mines Corp. (D)..................... 43 2 Dynamic Materials Corp. .......................... 58 2 Kaydon Corp. ..................................... 71 2 Ladish Co., Inc. (D).............................. 62 2 Meridian Gold, Inc. (D)........................... 56 1 Mobile Mini, Inc. (D)............................. 45 2 RBS Bearings, Inc. (D)............................ 49 1 Royal Gold, Inc. ................................. 29 3 Williams Scotsman International, Inc. (D)......... 59 ------- 745 ------- CAPITAL GOODS -- 7.4% 4 Brooks Automation, Inc. (D)....................... 51 1 Bucyrus International, Inc. ...................... 52 -- Charles & Colvard Ltd. ........................... 2 3 Daktronics, Inc. ................................. 69 2 Dril-Quip, Inc. (D)............................... 95 2 Goodman Global, Inc. (D).......................... 24 2 Graco, Inc. ...................................... 86 2 IDEX Corp. ....................................... 98 3 K & F Industries Holdings, Inc. (D)............... 66 1 Lufkin Industries, Inc. .......................... 78 1 Moog, Inc. Class A (D)............................ 45 1 SauerDanfoss, Inc. ............................... 37 2 Shuffle Master, Inc. (D).......................... 56 3 Tessera Technologies, Inc. (D).................... 87 5 TurboChef Technologies, Inc. (D).................. 64 1 Universal Compression Holdings, Inc. (D).......... 66 ------- 976 ------- CONSUMER CYCLICAL -- 11.9% 4 Central Euro Distribution Corp. (D)............... 98 2 Citi Trends, Inc. (D)............................. 75 2 Desarrolladora Homex (D).......................... 88 5 GMarket, Inc. ADR (D)............................. 86 5 GSI Commerce, Inc. (D)............................ 83 4 Iconix Brand Group, Inc. ......................... 76 6 Insight Enterprises, Inc. (D)..................... 131 3 Interline Brands, Inc. (D)........................ 72 3 Knoll, Inc. ...................................... 51 4 Performance Food Group Co. (D).................... 105 2 Pool Corp. ....................................... 98 3 PSS World Medical, Inc. (D)....................... 64 4 Quicksilver, Inc. (D)............................. 49 2 RARE Hospitality International, Inc. (D).......... 54 1 School Specialty, Inc. (D)........................ 35 5 Sierra Wireless, Inc. (D)......................... 61 2 Sigma Designs, Inc. (D)........................... 38 1 Steven Madden Ltd. ............................... 45 1 Texas Roadhouse, Inc. (D)......................... 12 2 United Natural Foods, Inc. (D).................... 77
MARKET SHARES VALUE (W) --------- --------- CONSUMER CYCLICAL -- (CONTINUED) 1 Urban Outfitters, Inc. (D)........................ $ 21 2 Volcom, Inc. (D).................................. 75 2 Zumiez, Inc. (D).................................. 79 ------- 1,573 ------- ENERGY -- 6.9% 1 AGL Resources, Inc. .............................. 49 2 ATP Oil & Gas Corp. (D)........................... 103 4 Bronco Drilling Co., Inc. (D)..................... 68 6 Carrizo Oil & Gas, Inc. (D)....................... 157 4 Denbury Resources, Inc. (D)....................... 101 2 Hercules Offshore, Inc. (D)....................... 78 1 Holly Corp. ...................................... 43 2 Parallel Petroleum Corp. ......................... 48 7 Petrohawk Energy Corp. (D)........................ 76 4 Pioneer Drilling Co. (D).......................... 53 2 Pride International, Inc. (D)..................... 66 2 Superior Well Services, Inc. (D).................. 41 2 Willbros Group, Inc. (D).......................... 32 ------- 915 ------- FINANCE -- 7.9% 6 Annaly Capital Management Inc. ................... 75 2 Aspen Insurance Holdings Ltd. .................... 52 1 Bank of the Ozarks, Inc. ......................... 41 1 Boston Private Financial Holdings, Inc. .......... 36 3 CBRE Realty Finance, Inc. (D)..................... 41 4 Centene Corp. (D)................................. 92 6 Eaton Vance Corp. ................................ 180 2 Gladstone Capital Corp. .......................... 40 2 Gladstone Commercial Corp. ....................... 53 3 HealthExtras, Inc. (D)............................ 71 4 JER Investors Trust, Inc. ........................ 63 -- Jones Lang LaSalle, Inc. ......................... 28 2 Montpelier Re Holdings Ltd. ...................... 37 2 Republic Companies Group, Inc. ................... 34 1 StanCorp Financial Group, Inc. ................... 37 3 Sunstone Hotel Investors, Inc. ................... 77 6 UCBH Holdings, Inc. .............................. 94 ------- 1,051 ------- HEALTH CARE -- 10.3% 2 Abaxis, Inc. (D).................................. 38 3 Adams Respiratory Therapeutics, Inc. (D).......... 121 1 Affymetrix, Inc. (D).............................. 31 3 ArthroCare Corp. (D).............................. 101 3 Aspreva Pharmaceuticals Corp. (D)................. 60 2 Bright Horizons Family Solutions, Inc. (D)........ 77 2 Foxhollow Technologies, Inc. (D).................. 53 1 Healthways, Inc. (D).............................. 55 3 I-Flow Corp. (D).................................. 42 1 Integra LifeSciences Holdings Corp. (D)........... 52 -- Kos Pharmaceuticals, Inc. (D)..................... 20 3 Kyphon, Inc. (D).................................. 115 1 Lifecell Corp. (D)................................ 28 2 Medicis Pharmaceutical Corp. Class A.............. 63 4 NightHawk Radiology Holdings, Inc. ............... 74
The accompanying notes are an integral part of these financial statements. 204 --------------------------------------------------------------------------------
MARKET SHARES VALUE (W) --------- --------- COMMON STOCK -- (CONTINUED) HEALTH CARE -- (CONTINUED) 2 Noven Pharmaceuticals, Inc. (D)................... $ 38 2 NuVasive, Inc. (D)................................ 52 3 PharmaNet Development Group, Inc. (D)............. 52 5 Salix Pharmaceuticals Ltd. (D).................... 64 3 Sciele Pharma, Inc. (D)........................... 70 2 Sierra Health Services, Inc. (D).................. 65 4 Symmetry Medical, Inc. (D)........................ 58 1 Vital Signs, Inc. ................................ 38 ------- 1,367 ------- SERVICES -- 18.6% 3 Acme Packet, Inc. ................................ 57 1 Alliance Data Systems Corp. (D)................... 36 2 Allis-Chalmers Energy, Inc. (D)................... 35 4 Allscripts Healthcare Solutions, Inc. (D)......... 91 2 American Ecology Corp. ........................... 31 6 aQuantive, Inc. (D)............................... 166 3 Atheros Communications, Inc. (D).................. 74 1 Avid Technology, Inc. (D)......................... 29 2 Broadwing Corp. (D)............................... 33 2 Carmike Cinemas, Inc. ............................ 34 1 Cerner Corp. (D).................................. 34 1 CRA International, Inc. (D)....................... 71 2 DeVry, Inc. (D)................................... 37 1 Digital River, Inc. (D)........................... 75 5 Digitas, Inc. (D)................................. 51 1 Entercom Communications Corp. .................... 14 5 Entravision Communications Corp. Class A (D)...... 40 5 Epicor Software Corp. (D)......................... 72 4 Essex Corp. (D)................................... 75 3 Focus Media Holding Ltd. ADR (D).................. 175 2 FTI Consulting, Inc. (D).......................... 65 2 Gevity HR, Inc. .................................. 34 7 Healthspring, Inc. (D)............................ 149 3 inVentiv Health Inc. (D).......................... 83 3 Ixia (D).......................................... 31 6 LECG Corp. (D).................................... 112 3 Mentor Graphics Corp. (D)......................... 42 1 Open Solutions, Inc. (D).......................... 37 2 Optimal Group, Inc. (D)........................... 21 2 Providence Service Corp. (D)...................... 60 4 Quest Software, Inc. (D).......................... 60 4 Regal Entertainment Group......................... 88 2 Resources Connection, Inc. (D).................... 67 1 Stericycle, Inc. (D).............................. 78 3 Sunopta, Inc. (D)................................. 28 3 Time Warner Telecom, Inc. Class A (D)............. 52 2 Veritas DGC, Inc. (D)............................. 151 2 Wright Express Corp. (D).......................... 55 ------- 2,443 ------- TECHNOLOGY -- 22.1% 1 Actuant Corp. Class A............................. 41 3 ADTRAN, Inc. ..................................... 69 6 Applied Micro Circuits Corp. (D).................. 19
MARKET SHARES VALUE (W) --------- --------- TECHNOLOGY -- (CONTINUED) -- Aspect Medical Systems, Inc. (D).................. $ 5 1 ATMI, Inc. (D).................................... 35 2 Avocent Corp. (D)................................. 77 1 Benchmark Electronics, Inc. (D)................... 38 2 Blackbaud, Inc. .................................. 38 2 Commvault Systems, Inc. .......................... 36 5 Concur Technologies, Inc. (D)..................... 77 3 Consolidated Communications Holdings, Inc. ....... 48 1 Ctrip.Com International Ltd. ..................... 44 4 DealerTrack Holdings, Inc. (D).................... 92 2 DivX, Inc. ....................................... 48 13 Dobson Communications Corp. (D)................... 99 1 Equinix, Inc. (D)................................. 96 2 Exlservice Holdings, Inc. (D)..................... 44 3 FairPoint Communications, Inc. ................... 54 4 FalconStor Software, Inc. (D)..................... 35 2 Gatehouse Media, Inc. ............................ 49 -- Global Payments, Inc. ............................ 13 2 Home Diagnostics, Inc. ........................... 22 1 Hyperion Solutions Corp. (D)...................... 45 4 Integrated Device Technology, Inc. (D)............ 59 1 Interactive Intelligence, Inc. (D)................ 25 1 Intersil Corp. ................................... 30 3 Iowa Telecommunications Services, Inc. ........... 60 2 Jupitermedia Corp. (D)............................ 16 2 Kenexa Corp. (D).................................. 74 4 Lionbridge Technologies (D)....................... 29 3 Natus Medical, Inc. (D)........................... 55 5 Online Resources Corp. (D)........................ 51 5 Oplink Communications, Inc. (D)................... 89 1 Optium Corp. (D).................................. 18 1 Palomar Medical Technologies, Inc. (D)............ 28 3 PC-Tel, Inc. (D).................................. 34 1 PLX Technology, Inc. (D).......................... 15 1 Polycom, Inc. (D)................................. 27 2 Rackable Systems, Inc. (D)........................ 68 7 Redback Networks, Inc. (D)........................ 103 3 RightNow Technologies, Inc. (D)................... 55 2 SAVVIS, Inc. (D).................................. 47 4 SBA Communications Corp. (D)...................... 115 3 Spectranetics Corp. (D)........................... 40 2 Supertex, Inc. (D)................................ 80 2 Syneron Medical Ltd. (D).......................... 64 4 TradeStation Group, Inc. (D)...................... 69 2 Travelzoo, Inc. .................................. 52 7 Trident Microsystems, Inc. (D).................... 148 5 Valueclick, Inc. (D).............................. 98 1 Varian, Inc. (D).................................. 47 7 Vasco Data Security International (D)............. 81 2 Vital Images, Inc. (D)............................ 50 3 Zoltek Companies, Inc. ........................... 73 ------- 2,924 ------- TRANSPORTATION -- 2.3% 1 American Commercial Lines, Inc. (D)............... 51 9 Heartland Express, Inc. .......................... 151
The accompanying notes are an integral part of these financial statements. 205 THE HARTFORD SELECT SMALLCAP GROWTH FUND SCHEDULE OF INVESTMENTS -- (CONTINUED) OCTOBER 31, 2006 (000'S OMITTED) --------------------------------------------------------------------------------
MARKET SHARES VALUE (W) --------- --------- COMMON STOCK -- (CONTINUED) TRANSPORTATION -- (CONTINUED) 3 Horizon Lines, Inc. Class A....................... $ 63 1 Hornbeck Offshore Services, Inc. ................. 43 ------- 308 ------- UTILITIES -- 1.3% 1 California Water Service Group.................... 51 1 Cleco Corp. ...................................... 23 1 PNM Resources, Inc. .............................. 39 2 UniSource Energy Corp. ........................... 60 ------- 173 ------- Total common stock (cost $11,504).................................. $12,475 ------- SHORT-TERM INVESTMENTS -- 4.7% FINANCE -- 4.7% 628 State Street Bank Money Market Fund............... $ 628 ------- Total short-term investments (cost $628)..................................... $ 628 ------- Total investments in securities (cost $12,132) (C).............................. $13,103 =======
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 4.62% of total net assets at October 31, 2006. (C)At October 31, 2006, the cost of securities for federal income tax purposes was $12,175 and the aggregate gross unrealized appreciation and depreciation based on that cost were: Unrealized appreciation.......................... $1,238 Unrealized depreciation.......................... (310) ------ Net unrealized appreciation...................... $ 928 ======
(D)Currently non-income producing. (W)See Note 2b of accompanying Notes to Financial Statements regarding valuation of securities. The accompanying notes are an integral part of these financial statements. 206 THE HARTFORD SELECT SMALLCAP VALUE FUND SCHEDULE OF INVESTMENTS OCTOBER 31, 2006 (000'S OMITTED) --------------------------------------------------------------------------------
MARKET SHARES VALUE (W) --------- --------- COMMON STOCK -- 93.3% BASIC MATERIALS -- 8.1% 8 Balchem Corp. .................................... $ 174 -- Banta George...................................... 9 -- CIRCOR International, Inc. ....................... 4 -- Ferro Corp. ...................................... 1 1 Gibralter Industries, Inc. ....................... 11 -- Greif, Inc. ...................................... 27 1 H.B. Fuller Co. .................................. 33 2 Hercules, Inc. (D)................................ 34 1 Innospec, Inc. ................................... 31 6 Landec Corp. (D).................................. 53 7 Matthews International Corp. Class A.............. 261 3 Neenah Paper, Inc. ............................... 103 -- NN, Inc. ......................................... 1 1 OM Group, Inc. (D)................................ 38 -- Palm Harbor Holmes, Inc. (D)...................... 1 1 Playtex Products, Inc. (D)........................ 10 1 Rock Tenn Co. Class A............................. 29 -- Rockwood Holdings, Inc. (D)....................... 6 4 RPM International, Inc. .......................... 82 1 Sensient Technologies Corp. ...................... 33 1 Silgan Holdings, Inc. ............................ 26 -- Spartech Corp. ................................... 13 -- Superior Essex, Inc. (D).......................... 9 14 Tempur-Pedic International, Inc. (D).............. 282 4 Tredegar Corp. ................................... 72 2 USEC, Inc. ....................................... 19 -- Valmont Industries, Inc. ......................... 12 2 Watts Water Technologies, Inc. ................... 78 ------- 1,452 ------- CAPITAL GOODS -- 6.3% 2 Asyst Technologies, Inc. (D)...................... 12 2 Axcelis Technologies, Inc. (D).................... 13 -- Blyth, Inc. ...................................... 1 -- Cascade Corp. .................................... 4 8 Clarcor, Inc. .................................... 261 6 Hexcel Corp. (D).................................. 91 -- Imation Corp. .................................... 2 -- Jakks Pacific, Inc. (D)........................... 5 6 K2, Inc. (D)...................................... 82 1 Kadant, Inc. (D).................................. 22 -- Leapfrog Enterprises, Inc. (D).................... 3 4 Lincoln Electric Holdings, Inc. .................. 271 1 MKS Instruments, Inc. (D)......................... 29 1 Modine Manufacturing Co. ......................... 14 1 Moog, Inc. Class A (D)............................ 24 -- Nacco Industries, Inc. Class A.................... 1 -- Nordson Corp. .................................... 21 -- Orbital Sciences Corp. (D)........................ 7 2 RC2 Corp. (D)..................................... 90 1 Steinway Musical Instruments (D).................. 17 -- Tennant Co. ...................................... 1 2 Terex Corp. (D)................................... 104 1 Universal Compression Holdings, Inc. (D).......... 35
MARKET SHARES VALUE (W) --------- --------- CAPITAL GOODS -- (CONTINUED) -- Woodward Governor Co. ............................ $ 15 -- Zygo Corp. (D).................................... -- ------- 1,125 ------- CONSUMER CYCLICAL -- 11.6% 1 99 Cents Only Stores (D).......................... 12 -- A.M. Castle & Co. ................................ 11 2 Adaptec, Inc. (D)................................. 7 4 Adesa, Inc. ...................................... 101 5 Aftermarket Technology Corp. (D).................. 102 1 Agilysys, Inc. ................................... 13 -- Albany International Corp. Class A................ 7 6 Alliance One International, Inc. ................. 29 -- Ariba, Inc. (D)................................... -- 1 ArvinMeritor, Inc. ............................... 12 2 Big Lots, Inc. (D)................................ 46 1 Blockbuster, Inc. Class A......................... 2 1 BlueLinx Holdings, Inc. .......................... 15 1 BorgWarner, Inc. ................................. 63 1 Brown Shoe Co., Inc. ............................. 21 -- Building Material Holding Corp. .................. 1 -- CEC Entertainment, Inc. (D)....................... 7 1 Charming Shoppes, Inc. (D)........................ 12 6 Cherokee, Inc. ................................... 232 1 Chiquita Brands International, Inc. .............. 15 -- Commercial Vehicles Group, Inc. (D)............... 2 -- CSK Auto Corp. (D)................................ 8 -- Domino's Pizza, Inc. ............................. 11 1 Dycom Industries, Inc. (D)........................ 23 1 EMCOR Group, Inc. (D)............................. 40 4 Fred's, Inc. ..................................... 47 3 Fresh Del Monte Produce, Inc. .................... 41 1 FTD Group, Inc. .................................. 24 1 Furniture Brands International, Inc. ............. 12 -- Genesco, Inc. (D)................................. 2 1 Granite Construction, Inc. ....................... 27 1 Group 1 Automotive, Inc. ......................... 31 7 Huttig Building Products, Inc. (D)................ 36 1 Insight Enterprises, Inc. (D)..................... 17 -- Jack in the Box, Inc. (D)......................... 16 1 Kellwood Co. ..................................... 15 1 Kimball International, Inc. ...................... 28 -- Lear Corp. ....................................... 12 2 Luby's, Inc. ..................................... 18 1 Maidenform Brands, Inc. (D)....................... 27 8 McGrath RentCorp.................................. 211 -- Meritage Homes Corp. (D).......................... 6 -- Navistar International Corp. (D).................. 8 1 Papa John's International, Inc. (D)............... 29 1 Payless ShoeSource, Inc. (D)...................... 35 3 Performance Food Group Co. (D).................... 76 -- Phillips-Van Heusen Corp. ........................ 22 -- Scansource, Inc. ................................. 6 3 School Specialty, Inc. (D)........................ 98 -- Skechers U.S.A., Inc. Class A (D)................. 6 -- Smart & Final, Inc. (D)........................... 7
The accompanying notes are an integral part of these financial statements. 207 THE HARTFORD SELECT SMALLCAP VALUE FUND SCHEDULE OF INVESTMENTS -- (CONTINUED) OCTOBER 31, 2006 (000'S OMITTED) --------------------------------------------------------------------------------
MARKET SHARES VALUE (W) --------- --------- COMMON STOCK -- (CONTINUED) CONSUMER CYCLICAL -- (CONTINUED) -- Stanley Furniture Co., Inc. ...................... $ 3 -- Stride Rite Corp. ................................ 2 1 Syms Corp. ....................................... 10 1 Systemax, Inc. (D)................................ 8 2 United Stationers, Inc. (D)....................... 88 2 Visteon Corp. (D)................................. 11 1 Wolverine World Wide, Inc. ....................... 25 6 World Fuel Services Corp. ........................ 277 -- Zale Corp. (D).................................... 7 ------- 2,080 ------- CONSUMER STAPLES -- 2.1% -- Boston Beer Co., Inc. Class A (D)................. 17 3 Chattem, Inc. (D)................................. 127 2 Delta and Pine Land Co. .......................... 96 -- Gold Kist, Inc. .................................. 6 -- Hain Celestial Group, Inc. (D).................... 8 3 J&J Snack Foods Corp. ............................ 90 1 M&F Worldwide Corp. (D)........................... 10 -- Seaboard Corp. ................................... 21 -- TreeHouse Foods, Inc. ............................ 7 ------- 382 ------- ENERGY -- 3.9% 1 Bill Barrett Corp. (D)............................ 18 -- Bois d'Arc Energy, Inc. .......................... 2 -- Callon Petroleum Corp. (D)........................ 5 3 Crosstex Energy, Inc. ............................ 240 -- Exco Resources, Inc. (D).......................... 3 -- Giant Industries, Inc. (D)........................ 2 1 Harvest Natural Resources, Inc. (D)............... 13 -- Houston Exploration Co. (D)....................... 1 1 Laclede Group, Inc. .............................. 18 -- McMoRan Exploration Co. .......................... 1 2 New Jersey Resources Corp. ....................... 114 1 Newpark Resources, Inc. (D)....................... 5 -- Nicor, Inc. ...................................... 6 1 Northwest Natural Gas Co. ........................ 37 -- Penn Virginia Corp. .............................. 20 -- Peoples Energy Corp. ............................. 12 3 Quicksilver Resources, Inc. (D)................... 96 1 Rosetta Resources, Inc. .......................... 16 -- South Jersey Industries, Inc. .................... 9 1 Southwest Gas Corp. .............................. 38 -- Stone Energy Corp. (D)............................ 5 -- Swift Energy Co. (D).............................. 15 -- Trico Marine Services, Inc. (D)................... 6 1 WGL Holdings, Inc. ............................... 23 ------- 705 ------- FINANCE -- 26.6% -- 21st Century Insurance Group...................... 4 -- Accredited Home Lenders (D)....................... 4 1 Affirmative Insurance Holdings.................... 22 1 Alfa Corp. ....................................... 10 -- AMCORE Financial, Inc. ........................... 2
MARKET SHARES VALUE (W) --------- --------- FINANCE -- (CONTINUED) 6 American Capital Strategies Ltd. ................. $ 259 -- American Equity Investment Life Holding Co. ...... 1 2 American Financial Realty Trust................... 21 1 American Home Mortgage Investment Corp. .......... 29 1 Amerigroup Corp. (D).............................. 22 2 Amerus Group Co. ................................. 110 2 Anthracite Capital, Inc. ......................... 32 -- Anworth Mortgage Asset Corp. ..................... 2 -- Arbor Realty Trust................................ 8 -- Argonaut Group, Inc. (D).......................... 3 -- Avatar Holdings, Inc. ............................ 26 -- Bancfirst Corp. .................................. 15 1 Bank of Granite Corp. ............................ 12 -- Banner Corp. ..................................... 21 1 Berkshire Hills Bancorp, Inc. .................... 25 3 Boston Private Financial Holdings, Inc. .......... 82 -- Camden National Corp. ............................ 2 -- Capital Lease Fund................................ 4 1 Capital Trust, Inc. .............................. 29 1 Capitol Bancorp Ltd. ............................. 29 9 Cathay General Bancorp............................ 298 -- Chemical Financial Corp. ......................... 2 -- Chittenden Corp. ................................. 13 1 Citizens Banking Corp. ........................... 30 -- City Holding Co. ................................. 1 -- Clark, Inc. ...................................... 1 1 Clifton Savings Bancorp, Inc. .................... 6 -- Columbia Banking Systems, Inc. ................... 7 -- Community Banks, Inc. ............................ 6 -- Community Trust Bancorp, Inc. .................... 3 -- CompuCredit Corp. (D)............................. 4 -- Corus Bankshares, Inc. ........................... 3 2 Diamondrock Hospitality........................... 31 -- Dime Community Bancshares......................... 5 1 Direct General Co. ............................... 11 -- Dollar Thrifty Automotive Group, Inc. (D)......... 8 1 Doral Financial Corp. ............................ 4 -- Education Realty Trust, Inc. ..................... 3 1 EMC Insurance Group, Inc. ........................ 19 5 Entertainment Properties Trust.................... 264 1 Equity Inns, Inc. ................................ 12 1 Equity One, Inc. ................................. 20 1 FBL Financial Group Class A....................... 19 1 Felcor Lodging Trust, Inc. ....................... 29 2 Fieldstone Investment Corp. ...................... 20 4 Financial Federal Corp. .......................... 116 3 First BanCorp Puerto Rico......................... 26 1 First Charter Corp. .............................. 27 -- First Commonwealth Financial Corp. ............... -- -- First Indiana Corp. .............................. 11 1 First Industrial Realty Trust, Inc. .............. 37 -- First Merchants Corp. ............................ 11 -- First Midwest Bancorp, Inc. ...................... 16 1 First Niagara Financial Group, Inc. .............. 17 1 First Place Financial............................. 24 3 First Republic Bank............................... 113
The accompanying notes are an integral part of these financial statements. 208 --------------------------------------------------------------------------------
MARKET SHARES VALUE (W) --------- --------- COMMON STOCK -- (CONTINUED) FINANCE -- (CONTINUED) -- FirstFed Financial Corp. (D)...................... $ 3 -- F.N.B. Corp. ..................................... 4 2 FNB Corp. ........................................ 27 1 Franklin Bank Corp. (D)........................... 27 -- Glenborough Realty Trust, Inc. ................... 6 1 Gramercy Capital Corp. ........................... 26 1 Great Southern Bancorp, Inc. ..................... 27 1 Hanmi Financial Corp. ............................ 13 -- Harleysville Group, Inc. ......................... 13 2 Highland Hospitality Corp. ....................... 27 1 Highwoods Properties, Inc. ....................... 21 -- Horace Mann Educators Corp. ...................... 9 -- Horizon Financial Corp. .......................... 8 3 Impac Mortgage Holdings, Inc. .................... 29 -- Independent Bank Corp. (MA)....................... 4 1 Independent Bank Corp. (MI)....................... 16 2 Infinity Property & Casualty Corp. ............... 103 1 Innkeepers USA Trust.............................. 11 1 Integra Bank Corp. ............................... 28 1 Irwin Financial Corp. ............................ 29 1 ITLA Capital Corp. ............................... 30 -- Kite Realty Group Trust........................... 8 -- Knight Capital Group, Inc. (D).................... 4 1 LaBranche & Co., Inc. (D)......................... 13 1 MAF Bancorp, Inc. ................................ 32 -- MainSource Financial Group, Inc. ................. 6 -- Marlin Business Services Corp. (D)................ 8 18 MCG Capital Corp. ................................ 329 2 Medical Properties Trust, Inc. ................... 27 -- Midland Co. ...................................... 9 -- NASB Financial, Inc. ............................. 1 7 National Financial Partners Corp. ................ 256 -- National Health Investors, Inc. .................. 10 -- National Interstate Corp. (D)..................... 3 -- Nationwide Health Properties, Inc. ............... 8 1 NetBank, Inc. .................................... 4 -- NGP Capital Resources Co. ........................ 3 -- Novastar Financial, Inc. ......................... 8 -- NYMAGIC, Inc. .................................... 14 3 Oceaneering International, Inc. (D)............... 97 -- Ocwen Financial Corp. ............................ 2 1 Odyssey Re Holdings Corp. ........................ 29 1 Ohio Casualty Corp. .............................. 25 2 Old National Bankcorp............................. 32 1 Omega Financial Corp. ............................ 17 -- Omega Healthcare Investors........................ -- -- Pacific Capital Bancorp........................... 5 1 Partners Trust Financial Group, Inc. ............. 14 1 Penn Real Estate Investment Trust................. 33 -- Pennfed Financial Services, Inc. ................. 8 -- Peoples Bancorp, Inc. ............................ 9 -- PFF Bancorp, Inc. ................................ 3 2 Phoenix Cos....................................... 37 1 Piper Jaffray Cos. (D)............................ 36 1 PMA Capital Corp. Class A (D)..................... 9
MARKET SHARES VALUE (W) --------- --------- FINANCE -- (CONTINUED) -- Presidential Life Corp. .......................... $ 3 3 Prosperity Bancshares, Inc. ...................... 97 -- Provident Bankshares Corp. ....................... 14 1 Provident Financial Services, Inc. ............... 20 -- PS Business Parks, Inc. .......................... 23 2 R&G Financial Corp. Class B....................... 12 1 Ramco-Gershenson Properties Trust................. 28 -- Renasant Corp. ................................... 13 -- Rent-A-Center, Inc. (D)........................... 3 1 Republic Bancorp, Inc. ........................... 10 2 Resource Capital Corp. ........................... 25 -- Sandy Spring Bancorp, Inc. ....................... 11 1 Santander BanCorp................................. 10 -- SCBT Financial Corp. ............................. 3 2 Selective Insurance Group......................... 116 2 Senior Housing Properties Trust................... 38 1 Simmons First National Corp. ..................... 16 2 StanCorp Financial Group, Inc. ................... 87 -- State Auto Financial Corp. ....................... 5 -- Sterling Bancshares, Inc. ........................ 8 2 Stewart Information Services Corp. ............... 70 -- Sunstone Hotel Investors, Inc. ................... -- 6 Superior Bancorp (D).............................. 63 1 Susquehanna Bancshares, Inc. ..................... 18 -- SWS Group, Inc. .................................. 8 -- TierOne Corp. .................................... 2 1 Triad Guaranty, Inc. ............................. 28 1 Trustmark Corp. .................................. 35 2 Trustreet Properties, Inc. ....................... 36 -- Union Bankshares Corp. ........................... 8 1 United Bankshares, Inc. .......................... 21 2 United Community Financial........................ 24 2 Universal American Financial Corp. ............... 30 3 UTStarcom, Inc. (D)............................... 33 -- Virginia Financial Group, Inc. ................... 1 14 W Holding Co., Inc. .............................. 80 -- Waddell and Reed Financial, Inc. Class A.......... 10 7 Washington Federal, Inc. ......................... 151 1 WesBanco, Inc. ................................... 32 -- West Coast Bancorp................................ 9 2 Winston Hotels, Inc. ............................. 23 -- WSFS Financial Corp. ............................. 4 ------- 4,779 ------- HEALTH CARE -- 4.9% 2 Advanced Medical Optics, Inc. (D)................. 94 2 Albany Molecular Research, Inc. (D)............... 19 -- Alliance Imaging, Inc. (D)........................ 4 1 Alpharma, Inc. Class A............................ 11 -- Applera Corp. -- Celera Genomics Group (D)........ 1 -- Apria Healthcare Group, Inc. (D).................. 10 2 Cooper Companies, Inc. ........................... 86 1 Cross Country Healthcare, Inc. (D)................ 24 1 Forrester Research, Inc. (D)...................... 24 2 Healthtronics, Inc. (D)........................... 11 -- Kindred Healthcare, Inc. (D)...................... 2
The accompanying notes are an integral part of these financial statements. 209 THE HARTFORD SELECT SMALLCAP VALUE FUND SCHEDULE OF INVESTMENTS -- (CONTINUED) OCTOBER 31, 2006 (000'S OMITTED) --------------------------------------------------------------------------------
MARKET SHARES VALUE (W) --------- --------- COMMON STOCK -- (CONTINUED) HEALTH CARE -- (CONTINUED) 4 Landauer, Inc. ................................... $ 197 -- Longs Drug Stores Corp. .......................... 4 -- Magellan Health Services, Inc. (D)................ 7 -- Martek Biosciences Corp. (D)...................... 2 -- MedCath Corp. (D)................................. 4 -- Nabi Biopharmaceuticals (D)....................... 1 1 NBTY, Inc. ....................................... 25 1 NPS Pharmaceuticals, Inc. (D)..................... 3 -- Nu Skin Enterprises, Inc. Class A................. 3 -- Odyssey HealthCare, Inc. (D)...................... 6 5 Option Care, Inc. ................................ 58 2 Par Pharmaceutical Cos., Inc. (D)................. 37 2 Perrigo Co. ...................................... 32 1 Prestige Brands Holdings, Inc. ................... 17 -- Savient Pharmaceuticals, Inc. (D)................. -- 2 United Surgical Partners International............ 57 -- ViroPharma, Inc. (D).............................. 4 -- Vital Signs, Inc. ................................ 16 4 Young Innovations, Inc. .......................... 128 ------- 887 ------- SERVICES -- 15.5% 13 ABM Industries, Inc. ............................. 260 1 Alderwoods Group, Inc. (D)........................ 23 1 American Greetings Corp. Class A (D).............. 32 -- Ameristar Casinos, Inc. .......................... 2 3 Avid Technology, Inc. (D)......................... 101 -- Black Box Corp. .................................. 6 1 Brady Corp. Class A............................... 26 3 Business Objects S.A. ADR (D)..................... 126 2 Carmike Cinemas, Inc. ............................ 40 -- Catalina Marketing Corp. ......................... 2 2 Central European Media Enterprises Ltd. (D)....... 137 4 Central Parking Corp. ............................ 75 1 CIBER, Inc. (D)................................... 4 2 Citadel Broadcasting Corp. ....................... 17 4 Computer Services, Inc. .......................... 113 -- Consolidated Graphics, Inc. (D)................... 17 8 Corinthian Colleges, Inc. (D)..................... 92 1 Covansys Corp. (D)................................ 16 2 Cox Radio, Inc. Class A (D)....................... 34 -- Cumulus Media, Inc. Class A (D)................... 2 1 Dendrite International, Inc. (D).................. 9 -- Dynamex, Inc. .................................... 8 -- Emmis Communications Corp. Class A (D)............ 1 1 Entercom Communications Corp. .................... 16 1 Entravision Communications Corp. Class A (D)...... 7 1 Foundry Networks, Inc. (D)........................ 9 1 FTI Consulting, Inc. (D).......................... 31 1 G & K Services, Inc. Class A...................... 32 4 Gartner, Inc. Class A (D)......................... 74 1 Global Imaging Systems, Inc. (D).................. 13 -- Gray Television, Inc. ............................ -- -- Great Wolf Resorts, Inc. (D)...................... 2 1 Harsco Corp. ..................................... 106
MARKET SHARES VALUE (W) --------- --------- SERVICES -- (CONTINUED) -- Heidrick & Struggles International, Inc. (D)...... $ 8 11 Inter-Tel, Inc. .................................. 229 1 John H. Harland Co. .............................. 21 1 Journal Register Co. ............................. 5 1 Keane, Inc. (D)................................... 7 1 Lakes Entertainment, Inc. ........................ 8 1 Lee Enterprises, Inc. ............................ 20 1 Lin TV Corp. (D).................................. 6 2 Live Nation, Inc. (D)............................. 36 -- Lodgian, Inc. (D)................................. 1 -- Macrovision Corp. (D)............................. 7 5 Manhattan Associates, Inc. (D).................... 135 1 McDATA Corp. Class A (D).......................... 4 1 MPS Group, Inc. (D)............................... 20 -- MTS Systems Corp. ................................ 1 4 Navigant Consulting, Inc. (D)..................... 73 -- NCO Group, Inc. (D)............................... 8 1 Netscout Systems, Inc. (D)........................ 10 1 Opnet Technologies, Inc. (D)...................... 13 1 Perot Systems Corp. Class A (D)................... 11 -- ProQuest Co. (D).................................. 4 4 Radio One, Inc. Class D (D)....................... 29 -- RadiSys Corp. (D)................................. 4 -- Reader's Digest Association, Inc. ................ 6 -- Regis Corp. ...................................... 4 1 SafeNet, Inc. (D)................................. 13 3 Saga Communications, Inc. Class A (D)............. 21 -- Salem Communications Class A (D).................. 4 1 Scholastic Corp. (D).............................. 27 2 Spherion Corp. (D)................................ 18 -- Standard Parking Corp. (D)........................ 4 -- Standard Register Co. ............................ 3 4 Stewart Enterprises, Inc. ........................ 28 10 Syntel, Inc. ..................................... 245 1 Tetra Technologies, Inc. (D)...................... 24 1 Ulticom, Inc. .................................... 12 3 Unifirst Corp. ................................... 102 13 Unisys Corp. (D).................................. 84 1 Vail Resorts, Inc. (D)............................ 23 -- Veritas DGC, Inc. (D)............................. 27 -- Vertrue, Inc. (D)................................. 3 1 Viad Corp. ....................................... 30 -- Volt Information Sciences, Inc. (D)............... 5 -- Watson Wyatt Worldwide, Inc. ..................... 8 1 Wright Express Corp. (D).......................... 18 ------- 2,802 ------- TECHNOLOGY -- 7.9% -- A.O. Smith Corp. ................................. 5 1 AMETEK, Inc. ..................................... 65 1 AMIS Holdings, Inc. (D)........................... 14 1 Anaren Microwave, Inc. (D)........................ 12 2 Aspen Technology, Inc. (D)........................ 15 1 Avocent Corp. (D)................................. 22 1 Belden CDT, Inc. ................................. 30 4 Benchmark Electronics, Inc. (D)................... 94
The accompanying notes are an integral part of these financial statements. 210 --------------------------------------------------------------------------------
MARKET SHARES VALUE (W) --------- --------- COMMON STOCK -- (CONTINUED) TECHNOLOGY -- (CONTINUED) -- Bio-Rad Laboratories, Inc. Class A (D)............ $ 21 1 Borland Software Corp. (D)........................ 5 2 Brocade Communications Systems, Inc. (D).......... 17 -- Checkpoint Systems, Inc. (D)...................... 5 6 Cincinnati Bell, Inc. (D)......................... 28 -- Cirrus Logic, Inc. (D)............................ -- 2 Coherent, Inc. (D)................................ 78 -- Commonwealth Telephone Enterprise, Inc. .......... 4 1 CSG Systems International, Inc. (D)............... 23 1 CT Communications, Inc. .......................... 24 1 CTS Corp. ........................................ 20 1 Cubic Corp. ...................................... 11 1 Digi International, Inc. ......................... 17 1 Eagle Test Systems, Inc. (D)...................... 14 -- Electro Scientific Industries, Inc. (D)........... 2 1 Electronics for Imaging, Inc. (D)................. 15 1 Emulex Corp. (D).................................. 15 -- EPIQ Systems, Inc. (D)............................ 1 1 Extreme Networks, Inc. (D)........................ 4 -- FairPoint Communications, Inc. ................... 2 -- General Cable Corp. (D)........................... 3 10 General Communication, Inc. Class A (D)........... 128 -- Genesis Microchip, Inc. (D)....................... 4 -- Golden Telecom, Inc. ............................. 1 -- GrafTech International Ltd. (D)................... 1 2 Harris Interactive, Inc. (D)...................... 12 2 Hyperion Solutions Corp. (D)...................... 86 -- IHS, Inc. (D)..................................... 10 1 Infospace, Inc. (D)............................... 13 -- Input/Output, Inc. (D)............................ 1 1 iPass, Inc. (D)................................... 3 2 Kopin Corp. (D)................................... 6 -- Lattice Semiconductor Corp. (D)................... 1 -- Littelfuse, Inc. (D).............................. 15 4 LoJack Corp. (D).................................. 78 2 Magma Design Automation, Inc. .................... 15 -- MasTec, Inc. (D).................................. 2 5 Msc.Software Corp. (D)............................ 73 -- Newport Corp. (D)................................. 9 1 Palm, Inc. (D).................................... 20 1 Pegasystems, Inc. (D)............................. 7 1 Pericom Semiconductor Corp. (D)................... 6 1 Polycom, Inc. (D)................................. 18 2 Quantum Corp. (D)................................. 4 -- Regal-Beloit Corp. ............................... 14 1 RF Micro Devices, Inc. (D)........................ 11 -- Rofin-Sinar Technologies, Inc. (D)................ 5 2 Roper Industries, Inc. ........................... 81 3 Schwak, Inc. ..................................... 62 2 Skyworks Solutions, Inc. (D)...................... 14 3 SonicWALL, Inc. (D)............................... 29 1 Spectrum Brands, Inc. ............................ 8
MARKET SHARES VALUE (W) --------- --------- TECHNOLOGY -- (CONTINUED) -- Standard Microsystems Corp. (D)................... $ 2 1 Sybase, Inc. (D).................................. 28 2 Sycamore Networks, Inc. (D)....................... 7 -- Syniverse Holdings, Inc. (D)...................... 1 -- Technitrol, Inc. ................................. 7 1 TriQuint Semiconductor, Inc. (D).................. 7 1 TTM Technologies, Inc. (D)........................ 10 1 USA Mobility, Inc. ............................... 24 1 Varian, Inc. (D).................................. 30 1 Zoran Corp. (D)................................... 8 ------- 1,428 ------- TRANSPORTATION -- 4.4% 4 AMR Corp. (D)..................................... 99 -- Arkansas Best Corp. .............................. 6 1 ExpressJet Holdings, Inc. (D)..................... 5 1 Gulfmark Offshore, Inc. .......................... 17 1 Heartland Express, Inc. .......................... 13 1 Horizon Lines, Inc. Class A....................... 30 8 Landstar System, Inc. ............................ 374 -- Republic Airways Holdings, Inc. (D)............... 2 1 SIRVA, Inc. (D)................................... 3 -- SkyWest, Inc. .................................... 3 1 Thor Industries, Inc. ............................ 61 2 Tsakos Energy Navigation Ltd. .................... 75 3 USA Truck, Inc. (D)............................... 47 -- Werner Enterprises, Inc. ......................... 1 2 Winnebago Industries, Inc. ....................... 53 ------- 789 ------- UTILITIES -- 2.0% -- Avista Corp. ..................................... 2 -- Black Hills Corp. ................................ 7 1 Cleco Corp. ...................................... 21 1 Duquesne Light Holdings, Inc. .................... 14 16 Dynegy, Inc. (D).................................. 96 -- El Paso Electric Co. (D).......................... 6 -- Empire District Electric Co. ..................... 3 1 IDACORP, Inc. .................................... 23 3 ITC Holdings Corp. ............................... 94 -- Pike Electric Corp. (D)........................... 8 1 PNM Resources, Inc. .............................. 39 -- SJW Corp. ........................................ 3 2 Westar Energy, Inc. .............................. 40 ------- 356 ------- Total common stock (cost $15,474).................................. $16,785 ------- SHORT-TERM INVESTMENTS -- 6.3% CONSUMER STAPLES -- 1.6% 290 Cargill Global Commercial Paper, 5.26%, 11/01/2006............................... $ 290 -------
The accompanying notes are an integral part of these financial statements. 211 THE HARTFORD SELECT SMALLCAP VALUE FUND SCHEDULE OF INVESTMENTS -- (CONTINUED) OCTOBER 31, 2006 (000'S OMITTED) --------------------------------------------------------------------------------
MARKET SHARES VALUE (W) --------- --------- SHORT-TERM INVESTMENTS -- (CONTINUED) FINANCE -- 4.7% 225 Federated Investors Prime Obligations Fund........ $ 225 329 State Street Bank Money Market Fund............... 329 290 UBS Americas Commercial Paper, 5.28%, 11/01/2006............................... 290 ------- 844 ------- Total short-term investments (cost $1,134)................................... $ 1,134 ------- Total investments in securities (cost $16,608) (C).............................. $17,919 =======
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 0.70% of total net assets at October 31, 2006. (C) At October 31, 2006, the cost of securities for federal income tax purposes was $16,608 and the aggregate gross unrealized appreciation and depreciation based on that cost were: Unrealized appreciation.......................... $1,517 Unrealized depreciation.......................... (206) ------ Net unrealized appreciation...................... $1,311 ======
(D) Currently non-income producing. (W) See Note 2b of accompanying Notes to Financial Statements regarding valuation of securities. FUTURES CONTRACTS OUTSTANDING AT OCTOBER 31, 2006
UNREALIZED NUMBER OF APPRECIATION DESCRIPTION CONTRACTS POSITION EXPIRATION (DEPRECIATION) ----------- --------- -------- ------------- -------------- Russell Mini Futures 2 Long December 2006 $5 ==
These contracts had a market value of $154 as of October 31, 2006. Cash was pledged as initial margin deposit for open futures contracts at October 31, 2006. The accompanying notes are an integral part of these financial statements. 212 THE HARTFORD SHORT DURATION FUND SCHEDULE OF INVESTMENTS OCTOBER 31, 2006 (000'S OMITTED) --------------------------------------------------------------------------------
PRINCIPAL MARKET AMOUNT VALUE (W) --------- --------- ASSET & COMMERCIAL MORTGAGE BACKED SECURITIES -- 54.4% FINANCE -- 54.4% $ 522 ACE Securities Corp., 3.28%, 08/15/2030 (I)........................... $ 517 395 American Express Credit Account Master Trust, 5.82%, 02/15/2012 (I)(L)........................ 395 702 AmeriCredit Automobile Receivables Trust, 2.87%, 02/07/2011............................... 692 725 AmeriCredit Automobile Receivables Trust, 4.22%, 07/06/2009............................... 717 600 AmeriCredit Automobile Receivables Trust, 5.04%, 05/06/2011............................... 594 1,400 AmeriCredit Automobile Receivables Trust, 5.07%, 07/06/2010............................... 1,391 1,294 Banc of America Commercial Mortgage, Inc., 3.46%, 07/10/2042............................... 1,273 31,741 Banc of America Commercial Mortgage, Inc., 4.08%, 12/10/2042 (P)........................... 599 1,500 Banc of America Securities Auto Trust, 4.49%, 02/18/2013............................... 1,478 2,000 Bank of America Credit Card Trust, 5.55%, 03/15/2012 (L)........................... 2,000 2,000 Bank One Issuance Trust, 3.59%, 05/17/2010............................... 1,971 347 Bank One Issuance Trust, 4.54%, 09/15/2010............................... 344 763 Bayview Commercial Asset Trust, 6.32%, 01/25/2035 (I)(L)........................ 766 896 Bear Stearns Asset Backed Securities, Inc., 5.16%, 09/25/2033............................... 887 24,872 Bear Stearns Commercial Mortgage Securities, Inc., 4.12%, 11/11/2041 (P)........................... 671 61,801 Bear Stearns Commercial Mortgage Securities, Inc., 4.65%, 02/11/2041 (P)........................... 710 108,601 Bear Stearns Commercial Mortgage Securities, Inc., 6.25%, 12/11/2040 (I)(P)........................ 505 1,000 BMW Vehicle Owner Trust, 3.52%, 10/25/2010............................... 985 799 Capital Auto Receivables Asset Trust, 4.73%, 09/15/2010............................... 786 800 Capital Auto Receivables Asset Trust, 5.55%, 01/18/2011............................... 801 200 Capital Auto Receivables Asset Trust, 5.77%, 05/20/2010 (I)........................... 201 225 Capital Auto Receivables Asset Trust, 6.15%, 04/20/2011 (I)........................... 226 400 Capital One Master Trust, 7.90%, 10/15/2010 (I)........................... 407 1,000 Capital One Multi-Asset Execution Trust, 4.50%, 06/15/2011............................... 989 10,828 CBA Small Balance Commercial Mortgage, 7.00%, 07/25/2035 (I)(P)........................ 531
PRINCIPAL MARKET AMOUNT VALUE (W) --------- --------- FINANCE -- (CONTINUED) $ 8,064 CBA Small Balance Commercial Mortgage, 7.00%, 06/25/2038 (I)(P)........................ $ 530 443 Chase Manhattan Auto Owner Trust, 2.78%, 06/15/2010............................... 436 1,097 Chase Manhattan Auto Owner Trust, 2.94%, 06/15/2010............................... 1,080 2,000 Citibank Credit Card Issuance Trust, 4.45%, 04/07/2010............................... 1,975 2,000 Citibank Credit Card Issuance Trust, 4.85%, 02/10/2011............................... 1,993 500 Citibank Credit Card Issuance Trust, 6.47%, 02/09/2009 (L)........................... 501 4,000 Citibank Credit Card Issuance Trust, 6.88%, 11/16/2009............................... 4,066 18,625 Citigroup Commercial Mortgage Trust, 4.10%, 10/15/2041 (I)(P)........................ 662 478 CNH Equipment Trust, 2.57%, 09/15/2009............................... 470 140 CNH Equipment Trust, 3.13%, 11/15/2010............................... 138 300 CNH Equipment Trust, 3.35%, 02/15/2011............................... 294 750 CNH Equipment Trust, 4.93%, 12/17/2012............................... 744 3,447 Commercial Mortgage Pass-Through Certificate, 3.59%, 03/10/2039 (I)(P)........................ 98 1,500 Commercial Mortgage Pass-Through Certificate, 5.77%, 12/15/2020 (L)........................... 1,500 22,543 CS First Boston Mortgage Securities Corp., 4.15%, 11/15/2037 (I)(P)........................ 657 13,458 CS First Boston Mortgage Securities Corp., 4.17%, 07/15/2036 (I)(P)........................ 298 800 Daimler Chrysler Auto Trust, 5.14%, 09/08/2012............................... 801 96 DLJ Mortgage Acceptance Corp., 6.82%, 10/15/2030 (I)........................... 96 300 Equity One ABS, Inc., 7.82%, 07/25/2034 (L)........................... 303 1,625 Ford Credit Auto Owner Trust, 4.19%, 07/15/2009............................... 1,608 750 Ford Credit Auto Owner Trust, 5.29%, 04/15/2011............................... 752 750 Ford Credit Auto Owner Trust, 5.48%, 09/15/2011............................... 753 500 Ford Credit Auto Owner Trust, 5.68%, 06/15/2012............................... 504 9,085 GE Capital Commercial Mortgage Corp., 3.76%, 03/10/2040 (I)(P)........................ 185 228 GE Commercial Equipment Financing LLC, 3.65%, 05/22/2014 (I)........................... 223 567 GMAC Commercial Mortgage Securities, Inc., 3.12%, 03/10/2038............................... 552 1,493 GMAC Mortgage Corp. Loan Trust, 4.09%, 04/25/2033............................... 1,472 494 Goldman Sachs Auto Loan Trust, 4.98%, 11/15/2013............................... 491
The accompanying notes are an integral part of these financial statements. 213 THE HARTFORD SHORT DURATION FUND SCHEDULE OF INVESTMENTS -- (CONTINUED) OCTOBER 31, 2006 (000'S OMITTED) --------------------------------------------------------------------------------
PRINCIPAL MARKET AMOUNT VALUE (W) --------- --------- ASSET & COMMERCIAL MORTGAGE BACKED SECURITIES -- (CONTINUED) FINANCE -- (CONTINUED) $ 20,949 Goldman Sachs Mortgage Securities Corp. II, 4.38%, 08/10/2038 (I)(P)........................ $ 227 500 Granite Mortgages plc, 6.95%, 01/20/2043 (L)........................... 509 24 Green Tree Financial Corp., 6.27%, 06/01/2030............................... 24 17 Green Tree Financial Corp., 7.30%, 01/15/2026............................... 17 632 Harley Davidson Motorcycle Trust, 4.50%, 01/15/2010............................... 632 1,583 Hasco NIM Trust, 6.17%, 08/25/2036 (I)........................... 1,583 259 Hasco NIM Trust, 6.25%, 12/26/2035 (I)........................... 258 1,000 Hertz Vehicle Financing LLC, 4.93%, 02/25/2010 (I)........................... 996 488 Home Equity Asset Trust, 4.75%, 06/27/2035 (I)........................... 483 750 Hyundai Auto Receivables Trust, 4.10%, 08/15/2011............................... 738 1,500 Hyundai Auto Receivables Trust, 4.45%, 02/15/2012............................... 1,468 165 JP Morgan Chase Commercial Mortgage Securities Corp., 2.92%, 01/12/2038............................... 162 5,784 JP Morgan Chase Commercial Mortgage Securities Corp., 3.68%, 01/15/2038 (I)(P)........................ 179 37,124 JP Morgan Chase Commercial Mortgage Securities Corp., 4.07%, 01/15/2042 (P)........................... 547 14,595 JP Morgan Chase Commercial Mortgage Securities Corp., 4.65%, 10/15/2037 (I)(P)........................ 306 39,323 JP Morgan Chase Commercial Mortgage Securities Corp., 4.82%, 08/12/2037 (P)........................... 162 1,500 JP Morgan Chase Commercial Mortgage Securities Corp., 6.07%, 02/15/2020 (I)........................... 1,500 36 LB-UBS Commercial Mortgage Trust, 3.17%, 12/15/2026............................... 35 1,335 LB-UBS Commercial Mortgage Trust, 3.63%, 10/15/2029............................... 1,305 2,358 LB-UBS Commercial Mortgage Trust, 4.25%, 12/15/2036 (I)(P)........................ 72 2,178 Lehman Brothers, 6.77%, 09/28/2036 (I)........................... 2,176 413 Long Beach Asset Holdings Corp., 5.78%, 04/25/2046 (I)........................... 413 750 Marlin Leasing Receivables LLC, 4.63%, 11/17/2008 (I)........................... 744 407 Marlin Leasing Receivables LLC, 5.09%, 08/15/2012 (I)........................... 403
PRINCIPAL MARKET AMOUNT VALUE (W) --------- --------- FINANCE -- (CONTINUED) $ 600 Marlin Leasing Receivables LLC, 5.33%, 09/16/2013............................... $ 602 600 Marlin Leasing Receivables LLC, 5.63%, 09/16/2013............................... 601 1,000 MBNA Credit Card Master Note Trust, 4.95%, 06/15/2009............................... 999 600 Memory Lane Advance Receivables Backed Notes, 5.03%, 10/24/2014 (I)........................... 596 860 Merrill Lynch Mortgage Trust, 3.46%, 08/12/2039............................... 841 19,113 Merrill Lynch Mortgage Trust, 3.81%, 08/12/2039 (I)(P)........................ 587 20,065 Merrill Lynch Mortgage Trust, 3.96%, 09/12/2041 (I)(P)........................ 632 29,087 Merrill Lynch Mortgage Trust, 4.67%, 09/12/2042 (P)........................... 346 164 Morgan Stanley Capital I, 2.80%, 12/15/2041............................... 161 351 Morgan Stanley Capital I, 3.96%, 06/15/2040............................... 344 1,303 Morgan Stanley Capital I, 4.03%, 06/15/2038............................... 1,277 257 Morgan Stanley Dean Witter Capital I, 5.38%, 01/15/2039............................... 258 391 Navistar Financial Corp. Owner Trust, 3.08%, 11/15/2009............................... 388 540 Providian Gateway Master Trust, 3.35%, 09/15/2011 (I)........................... 530 750 Providian Gateway Master Trust, 3.95%, 09/15/2011 (I)........................... 739 1,000 Providian Gateway Master Trust, 4.05%, 11/15/2011 (I)........................... 985 48 Soundview Home Equity Loan Trust, 8.64%, 05/25/2030............................... 48 1,500 Structured Asset Investment Loan Trust, 7.07%, 11/25/2033 (L)........................... 1,511 500 Superior Wholesale Inventory Financing Trust, 5.80%, 06/15/2010 (L)........................... 498 1,000 USAA Auto Owner Trust, 5.66%, 03/15/2013............................... 1,013 1,700 Wachovia Auto Loan Owner Trust, 5.42%, 04/21/2014 (I)........................... 1,703 1,000 Wachovia Auto Loan Owner Trust, 5.54%, 12/20/2012 (I)........................... 1,006 332 Wachovia Bank Commercial Mortgage Trust, 3.48%, 08/15/2041............................... 324 6,151 Wachovia Bank Commercial Mortgage Trust, 3.65%, 02/15/2041 (I)(P)........................ 182 9 Wachovia Bank Commercial Mortgage Trust, 4.54%, 04/15/2034............................... 9 2,832 Wells Fargo Home Equity Trust, 5.62%, 04/25/2034 (L)........................... 2,832 198 WFS Financial Owner Trust, 2.48%, 12/20/2010............................... 196
The accompanying notes are an integral part of these financial statements. 214 --------------------------------------------------------------------------------
PRINCIPAL MARKET AMOUNT VALUE (W) --------- --------- ASSET & COMMERCIAL MORTGAGE BACKED SECURITIES -- (CONTINUED) FINANCE -- (CONTINUED) $ 145 WFS Financial Owner Trust, 2.73%, 05/20/2011............................... $ 143 54 WFS Financial Owner Trust, 3.05%, 12/20/2010............................... 54 787 WFS Financial Owner Trust, 3.25%, 05/20/2011............................... 778 519 WFS Financial Owner Trust, 3.87%, 05/20/2011............................... 516 1,000 WFS Financial Owner Trust, 4.76%, 05/17/2013............................... 988 130 Whole Auto Loan Trust, 2.24%, 03/15/2010............................... 130 220 Whole Auto Loan Trust, 3.13%, 03/15/2011............................... 217 441 Whole Auto Loan Trust, 3.37%, 03/15/2011............................... 436 400 World Financial Network Credit Card Master Trust, 8.27%, 08/15/2011 (L)........................... 409 218 World Omni Auto Receivables Trust, 3.62%, 07/12/2011............................... 214 -------- Total asset & commercial mortgage backed securities (cost $82,226).................................. $ 81,650 -------- CORPORATE BONDS: INVESTMENT GRADE -- 33.7% BASIC MATERIALS -- 1.1% $ 125 ICI North America, 8.88%, 11/15/2006............................... $ 125 200 International Paper Co., 3.80%, 04/01/2008............................... 195 100 Pactiv Corp., 8.00%, 04/15/2007............................... 101 380 Placer Dome, Inc., 7.13%, 06/15/2007............................... 383 370 Potash Corp. of Saskatchewan, Inc., 7.13%, 06/15/2007............................... 374 500 Valspar Corp., 6.00%, 05/01/2007............................... 501 -------- 1,679 -------- CAPITAL GOODS -- 0.7% 750 McDonnell Douglas Corp., 6.88%, 11/01/2006............................... 750 300 Textron, Inc., 6.63%, 11/15/2007............................... 304 -------- 1,054 -------- CONSUMER CYCLICAL -- 1.6% 500 Centex Corp., 4.75%, 01/15/2008............................... 495 500 Centex Corp., 5.74%, 08/01/2007 (L)........................... 500
PRINCIPAL MARKET AMOUNT VALUE (W) --------- --------- CONSUMER CYCLICAL -- (CONTINUED) $ 700 Darden Restaurants, Inc., 5.75%, 03/15/2007............................... $ 699 750 Kroger Co., 7.65%, 04/15/2007............................... 757 -------- 2,451 -------- CONSUMER STAPLES -- 1.0% 1,500 General Mills, Inc., 5.13%, 02/15/2007............................... 1,499 -------- ENERGY -- 2.6% 1,000 Anadarko Petroleum Corp., 5.79%, 09/15/2009 (L)........................... 1,002 600 Consolidated Natural Gas Co., 5.38%, 11/01/2006............................... 600 350 Louis Dreyfus Natural Gas Corp., 6.88%, 12/01/2007............................... 355 1,000 Sempra Energy, 4.62%, 05/17/2007............................... 996 1,000 Transocean, Inc., 5.60%, 09/05/2008 (L)........................... 1,000 -------- 3,953 -------- FINANCE -- 15.5% 1,000 AMVESCAP plc, 5.90%, 01/15/2007............................... 1,001 400 Avalon Properties, Inc., 6.88%, 12/15/2007............................... 405 600 Banca Commerciale Italiana, 8.25%, 07/15/2007............................... 612 150 Banesto Finance Ltd., 7.50%, 03/25/2007............................... 151 1,500 BankBoston NA, 7.00%, 09/15/2007............................... 1,515 2,000 Bear Stearns & Co., Inc., 4.00%, 01/31/2008............................... 1,971 1,000 Capital One Financial Corp., 5.67%, 09/10/2009 (L)........................... 1,003 500 Capital One Financial Corp., 8.75%, 02/01/2007............................... 504 50 Cigna Corp., 8.25%, 01/01/2007............................... 50 220 Credit Suisse First Boston NY, 6.50%, 05/01/2008 (I)........................... 224 2,000 Duke Realty L.P., 3.50%, 11/01/2007............................... 1,959 500 ERAC USA Finance Co., 5.63%, 04/30/2009 (I)(L)........................ 501 1,000 ERAC USA Finance Co., 7.35%, 06/15/2008 (I)........................... 1,030 200 Evans Withycombe Residential, Inc. 7.63%, 04/15/2007............................... 201 1,500 Great America Leasing Receivables, 5.43%, 09/15/2008............................... 1,500 650 HSBC Finance Corp., 5.75%, 01/30/2007............................... 651
The accompanying notes are an integral part of these financial statements. 215 THE HARTFORD SHORT DURATION FUND SCHEDULE OF INVESTMENTS -- (CONTINUED) OCTOBER 31, 2006 (000'S OMITTED) --------------------------------------------------------------------------------
PRINCIPAL MARKET AMOUNT VALUE (W) --------- --------- CORPORATE BONDS: INVESTMENT GRADE -- (CONTINUED) FINANCE -- (CONTINUED) $ 450 HSBC Finance Corp., 7.65%, 05/15/2007............................... $ 455 1,500 John Deere Capital Corp., 4.50%, 08/22/2007............................... 1,489 450 JP Morgan Chase & Co., 7.25%, 06/01/2007............................... 454 250 Key Bank NA, 5.00%, 07/17/2007............................... 249 2,000 Lehman Brothers Holdings, Inc., 4.00%, 01/22/2008............................... 1,972 120 Lincoln National Corp., 5.25%, 06/15/2007............................... 120 148 MBNA America Bank NA, 6.75%, 03/15/2008............................... 151 150 Merrill Lynch & Co., Inc., 8.00%, 06/01/2007............................... 152 500 North Street Referenced Linked Notes, 6.19%, 07/30/2010 (I)(L)........................ 465 650 Simon Property Group L.P., 6.38%, 11/15/2007............................... 656 350 Simon Property Group L.P., 7.13%, 09/20/2007............................... 354 1,000 Sovereign Bank, 4.00%, 02/01/2008............................... 983 1,000 St. Paul Travelers Cos., Inc., 5.75%, 03/15/2007............................... 1,002 400 Travelers Property Casualty, 3.75%, 03/15/2008............................... 391 1,000 Zions Bancorporation, 5.49%, 09/15/2008 (L)........................... 1,000 -------- 23,171 -------- HEALTH CARE -- 1.4% 2,000 Cardinal Health, Inc, 5.64%, 10/02/2009 (I)(L)........................ 2,000 -------- SERVICES -- 3.9% 550 Belo Corp., 7.13%, 06/01/2007............................... 553 700 Comcast Corp., 5.67%, 07/14/2009 (L)........................... 701 1,000 FedEx Corp., 2.65%, 04/01/2007............................... 989 450 Harrah's Operating Co., Inc., 7.13%, 06/01/2007............................... 452 850 Hyatt Equities LLC, 6.88%, 06/15/2007 (I)........................... 855 1,000 Marriott International, Inc., 7.00%, 01/15/2008............................... 1,015 300 News America, Inc., 6.63%, 01/09/2008............................... 304 1,000 Walt Disney Co., 4.49%, 09/10/2009 (L)........................... 1,001 -------- 5,870 --------
PRINCIPAL MARKET AMOUNT VALUE (W) --------- --------- TECHNOLOGY -- 4.1% $ 450 Cingular Wireless LLC, 5.63%, 12/15/2006............................... $ 450 500 Cingular Wireless Services, Inc., 7.50%, 05/01/2007............................... 505 1,000 Deutsche Telekom International Finance B.V., 5.57%, 03/23/2009 (L)........................... 1,000 825 Hewlett-Packard Co., 5.75%, 12/15/2006............................... 825 1,000 Lenfest Communications, Inc., 7.63%, 02/15/2008............................... 1,027 1,000 Oracle Corp., 5.60%, 01/13/2009 (L)........................... 1,001 707 Raytheon Co., 6.75%, 08/15/2007............................... 714 600 Verizon Wireless Capital LLC, 5.38%, 12/15/2006............................... 600 -------- 6,122 -------- TRANSPORTATION -- 0.5% 350 TTX Co., 3.88%, 03/01/2008 (I)........................... 341 440 Union Pacific Corp., 6.70%, 12/01/2006............................... 440 -------- 781 -------- UTILITIES -- 1.3% 900 Dominion Resources, Inc., 5.66%, 09/28/2007 (L)........................... 900 250 Northeast Utilities, 3.30%, 06/01/2008............................... 242 250 Puget Sound Energy, Inc., 3.36%, 06/01/2008............................... 242 300 Southwestern Public Service Co., 5.13%, 11/01/2006............................... 300 270 Texas Eastern Transmission L.P., 5.25%, 07/15/2007............................... 269 -------- 1,953 -------- Total corporate bonds: investment grade (cost $50,691).................................. $ 50,533 -------- U.S. GOVERNMENT AGENCIES -- 5.1% FEDERAL HOME LOAN MORTGAGE CORPORATION -- 5.1% $ 7,500 6.00% 2032........................................ $ 7,642 -------- Total U.S. government agencies (cost $7,572)................................... $ 7,642 -------- Total long-term investments (cost $140,489)................................. $139,825 -------- SHORT-TERM INVESTMENTS -- 5.9% CONSUMER CYCLICAL -- 1.3% $ 2,000 Safeway Inc., 5.37%, 11/02/2006............................... $ 1,999 -------- CONSUMER STAPLES -- 1.3% 2,000 Cadbury Schweppes Finance plc, 5.35%, 11/06/2006............................... 1,998 --------
The accompanying notes are an integral part of these financial statements. 216 --------------------------------------------------------------------------------
PRINCIPAL MARKET AMOUNT VALUE (W) --------- --------- SHORT-TERM INVESTMENTS -- (CONTINUED) OEv ENERGY -- 1.7% $ 2,449 Devon Energy Corp., 5.37%, 11/01/2006............................... $ 2,449 -------- FINANCE -- 0.3% 500 Bank of New York, 5.05%, 03/03/2009............................... 497 -------- TECHNOLOGY -- 1.3% 2,000 Viacom, 5.55%, 11/02/2006............................... 1,999 -------- Total short-term investments (cost $8,942)................................... $ 8,942 -------- Total investments in securities (cost $149,431) (C)............................. $148,767 ========
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 2.18% of total net assets at October 31, 2006. (C) At October 31, 2006, the cost of securities for federal income tax purposes was $149,431 and the aggregate gross unrealized appreciation and depreciation based on that cost were: Unrealized appreciation........................... $ 288 Unrealized depreciation........................... (952) ----- Net unrealized depreciation....................... $(664) =====
(I) 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 qualified institutional buyers. 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, 2006, was $28,013, which represents 18.67% of total net assets. (L) Variable rate securities; the rate reported is the coupon rate in effect at October 31, 2006. (P) The interest rates disclosed for interest only strips represent effective yields based upon estimated future cash flows at October 31, 2006. (W) See Note 2b of accompanying Notes to Financial Statements regarding valuation of securities. The accompanying notes are an integral part of these financial statements. 217 THE HARTFORD SMALL COMPANY FUND SCHEDULE OF INVESTMENTS OCTOBER 31, 2006 (000'S OMITTED) --------------------------------------------------------------------------------
MARKET SHARES VALUE (W) --------- --------- COMMON STOCK -- 95.3% BASIC MATERIALS -- 5.9% 88 Agrium, Inc. ..................................... $ 2,457 23 Airgas, Inc. ..................................... 873 121 Arch Coal, Inc. .................................. 4,185 25 Aventine Renewable Energy Holdings, Inc. (D)...... 625 112 Brush Engineered Materials, Inc. (G).............. 3,757 77 Century Aluminum Co. (D)(G)....................... 2,991 138 Jarden Corp. (D)(G)............................... 4,969 935 Kingboard Chemical Holdings Ltd. (A)(G)........... 3,317 35 Kinross Gold Corp. (D)............................ 466 86 Urasia Energy Ltd. (D)(H)......................... 235 -------- 23,875 -------- CAPITAL GOODS -- 3.7% 45 Alliant Techsystems, Inc. (D)(G).................. 3,505 66 Bucyrus International, Inc. ...................... 2,769 29 Daktronics, Inc. ................................. 683 161 Goodman Global, Inc. (D)(G)....................... 2,593 83 Marvel Entertainment, Inc. (D)(G)................. 2,114 12 Oil States International, Inc. ................... 348 9 Scientific Games Corp. Class A (D)................ 252 104 TransDigm Group, Inc. (D)......................... 2,489 -------- 14,753 -------- CONSUMER CYCLICAL -- 6.9% 20 Advance Auto Parts, Inc. ......................... 697 30 Be Aerospace, Inc. (D)............................ 753 14 Buffalo Wild Wings, Inc. (D)...................... 734 42 Children's Place Retail Stores, Inc. (D).......... 2,934 34 Conceptus, Inc. (D)............................... 682 37 Dick's Sporting Goods, Inc. (D)(G)................ 1,840 36 DSW, Inc. (D)(G).................................. 1,244 23 Dufry Group (D)(A)................................ 1,829 6 G-III Apparel Group, Ltd. (D)..................... 97 11 Gildan Activewear, Inc. (D)....................... 572 33 GSI Commerce, Inc. (D)............................ 595 254 LKQ Corp. (D)(G).................................. 5,887 5 Newell Rubbermaid, Inc. .......................... 138 30 Quanta Services, Inc. (D)......................... 542 53 Skechers U.S.A., Inc. Class A (D)(G).............. 1,575 1 Susser Holdings Corp. ............................ 13 20 The Andersons, Inc. .............................. 701 74 Tween Brands, Inc. (G)............................ 3,101 30 Urban Outfitters, Inc. (D)........................ 532 108 VistaPrint Ltd. (D)(G)............................ 3,371 -------- 27,837 -------- CONSUMER STAPLES -- 1.6% 54 Alberto-Culver Co. ............................... 2,754 21 Bare Escentuals, Inc. (G)......................... 637 37 Hansen National Corp. (G)......................... 1,171 107 Jones Soda Co. (D)(G)............................. 1,052 91 Jones Soda Co. PIPE (D)(I)........................ 898 -------- 6,512 -------- ENERGY -- 4.6% 23 Basic Energy Services, Inc. (D)................... 560 75 Cabot Oil & Gas Corp. ............................ 3,944 44 CanWest Petroleum Corp. (D)....................... 202 213 Complete Production Services, Inc. (D)(G)......... 4,106
MARKET SHARES VALUE (W) --------- --------- ENERGY -- (CONTINUED) 132 Denbury Resources, Inc. (D)....................... $ 3,780 18 ENSCO International, Inc. ........................ 877 14 GMX Resources Inc................................. 566 18 Goodrich Petroleum Corp. ......................... 619 118 OPTI Canada, Inc. (D)............................. 1,883 84 Western Oil Sands, Inc. Class A (D)............... 2,177 -------- 18,714 -------- FINANCE -- 10.2% 1,063 Aberdeen Asset Management plc (A)................. 3,570 201 Admiral Group plc (A)............................. 3,552 26 Affiliated Managers Group, Inc. (G)(D)............ 2,620 112 Allied World Assurance Holdings Ltd. (D).......... 4,681 6 BOK Financial Corp. .............................. 319 18 CB Richard Ellis Group, Inc. Class A (D).......... 544 71 Covanta Holding Corp. (D)......................... 1,445 70 Dade Behring Holdings, Inc. ...................... 2,563 14 Delphi Financial Group Class A.................... 565 18 First Republic Bank............................... 689 35 Friedman Billings Ramsey Group, Inc. ............. 269 12 Investment Technology Group, Inc. (D)............. 579 20 Jefferies Group, Inc. ............................ 572 70 Nuveen Investments, Inc. Class A.................. 3,474 94 ProAssurance Corp. (D)(G)......................... 4,595 10 Reckson Associates Realty Corp. .................. 459 62 Services Acquisition Corp. International (D)...... 650 55 Signature Bank (D)(G)............................. 1,669 30 Sterling Bancshares, Inc. ........................ 542 27 Tower Group, Inc. ................................ 962 128 U-Store-It........................................ 2,815 123 Waddell and Reed Financial, Inc. Class A.......... 3,147 14 Wellcare Health Plans, Inc. (D)................... 846 -------- 41,127 -------- HEALTH CARE -- 11.8% 14 Abaxis, Inc. (D).................................. 289 7 Adams Respiratory Therapeutics, Inc. (D).......... 280 135 Alkermes, Inc. (D)(G)............................. 2,261 42 Amylin Pharmaceuticals, Inc. (D)(G)............... 1,857 95 Arena Pharmaceuticals, Inc. (D)(G)................ 1,450 127 AtheroGenics, Inc. (D)(G)......................... 1,654 79 Digene Corp. (D)(G)............................... 3,660 28 DJO, Inc. (D)..................................... 1,106 146 Exelixis, Inc. (D)(G)............................. 1,418 50 Genomic Health, Inc. (D).......................... 820 456 Hengan International Group Co. Ltd. (A)........... 1,097 108 Herbalife Ltd. (D)................................ 3,953 200 Human Genome Sciences, Inc. (D)(G)................ 2,663 43 Inverness Medical Innovation...................... 1,621 72 Kyphon, Inc. (D)(G)............................... 2,846 101 LifePoint Hospitals, Inc. (D)(G).................. 3,601 88 Medicines Co. (D)(G).............................. 2,288 48 Medicis Pharmaceutical Corp. Class A.............. 1,673 39 Santarus, Inc. (D)................................ 303 18 Schwarz Pharma AG (A)(G).......................... 2,058 36 Sunrise Senior Living, Inc. (D)................... 1,108 169 Symbion, Inc. (D)................................. 2,801 61 Universal Health Services, Inc. Class B........... 3,230 17 Ventana Medical Systems, Inc. (D)................. 687
The accompanying notes are an integral part of these financial statements. 218 --------------------------------------------------------------------------------
MARKET SHARES VALUE (W) --------- --------- COMMON STOCK -- (CONTINUED) HEALTH CARE -- (CONTINUED) 52 Vertex Pharmaceuticals, Inc. (D)(G)............... $ 2,131 44 Warner Chilcott Ltd. ............................. 574 -------- 47,429 -------- SERVICES -- 16.2% 46 Allscripts Healthcare Solutions, Inc. (D)......... 1,085 11 Anixter International, Inc. (D)................... 645 26 Atheros Communications, Inc. (D).................. 574 44 Central European Media Enterprises Ltd. (D)(G).... 3,275 17 Corrections Corp. of America (D).................. 779 115 DreamWorks Animation SKG, Inc. (D)(G)............. 3,049 70 Factset Research Systems, Inc. ................... 3,587 90 Focus Media Holding Ltd. ADR (D)(G)............... 4,754 68 GameTech International, Inc. (D).................. 674 1 Geo Group, Inc. (D)............................... 30 26 inVentiv Health Inc. (D).......................... 752 82 Iron Mountain, Inc. (D)(G)........................ 3,555 71 Jackson Hewitt Tax Service, Inc. ................. 2,467 51 Lamar Advertising Co. (D)(G)...................... 2,955 17 Life Time Fitness, Inc. (D)....................... 861 116 Live Nation, Inc. (D)(G).......................... 2,467 122 Mentor Graphics Corp. (D)(G)...................... 2,055 201 MoneyGram International, Inc. .................... 6,859 -- National Technical Systems, Inc................... 1 26 Orient Express Hotels, Ltd. Class A............... 1,041 220 Pinnacle Entertainment, Inc. (D).................. 6,644 77 Priceline.com, Inc. .............................. 3,112 53 Stericycle, Inc. (D)(G)........................... 3,772 91 TeleTech Holdings, Inc. (D)....................... 1,768 72 URS Corp. (D)..................................... 2,915 58 Washington Group International, Inc. ............. 3,268 58 WNS Holdings Ltd. ADR (D)......................... 1,717 49 World Wrestling Entertainment, Inc. .............. 823 -------- 65,484 -------- TECHNOLOGY -- 27.3% 47 24/7 Real Media, Inc. (D)......................... 469 147 American Reprographics Co. (D)(G)................. 5,217 93 American Tower Corp. Class A (D).................. 3,356 13 Amphenol Corp. Class A............................ 903 117 Ansys, Inc. (D)(G)................................ 5,396 126 Art Technology Group, Inc. (D).................... 316 54 Aspen Technology, Inc. (D)........................ 539 8 Baidu.com ADR (G)................................. 686 7 Barco N.V. (A).................................... 566 22 Belden CDT, Inc. ................................. 804 99 Brocade Communications Systems, Inc. (D).......... 805 77 Cirrus Logic, Inc. (D)............................ 542 10 CoStar Group, Inc. ............................... 459 46 Ctrip.Com International Ltd. ..................... 2,256 7 Diodes, Inc. (D).................................. 304 55 EMCORE Corp. (D).................................. 315 40 Energy Conversion Devices, Inc. (D)(G)............ 1,454 78 Equinix, Inc. (D)(G).............................. 5,338 8 FormFactor, Inc. (D).............................. 290 161 Fossil, Inc. (D)(G)............................... 3,515 62 Golden Telecom, Inc. ............................. 2,282 102 Hologic, Inc. (D)(G).............................. 4,903 98 IHS, Inc. (D)..................................... 3,397
MARKET SHARES VALUE (W) --------- --------- TECHNOLOGY -- (CONTINUED) 116 Integrated Device Technology, Inc. (D)............ $ 1,831 49 International Rectifier Corp. (D)(G).............. 1,757 85 Kenexa Corp. (D)(G)............................... 2,740 68 Leap Wireless International, Inc. (D)............. 3,755 15 MEMC Electronic Materials, Inc. (D)............... 522 32 Microsemi Corp. (D)............................... 633 49 Ness Technologies, Inc. .......................... 721 135 Neustar, Inc. (D)(G).............................. 3,934 94 Nuance Communications, Inc. (D)................... 1,082 231 O2Micro International Ltd. ADR (D)(G)............. 1,490 190 Opsware, Inc. (D)(G).............................. 1,729 30 Power Integrations, Inc. (D)...................... 663 127 QLogic Corp. (D).................................. 2,618 27 Rackable Systems, Inc. (D)........................ 843 174 Red Hat, Inc. (D)(G).............................. 2,850 180 Redback Networks, Inc. (D)(G)..................... 2,845 146 S.O.I. Tec, S.A. (D)(A)........................... 4,308 68 Sirona Dental Systems, Inc. ...................... 2,527 30 Smith Micro Software, Inc. (D).................... 502 38 Stereotaxis, Inc. (D)............................. 458 59 Syniverse Holdings, Inc. (D)(G)................... 874 83 Teledyne Technologies, Inc. (D)(G)................ 3,447 1,199 Tencent Holdings Ltd. (A)(G)...................... 2,860 101 THQ, Inc. (D)(G).................................. 3,032 89 Transaction Systems Architects, Inc. (D).......... 3,017 6 Trident Microsystems, Inc. (D).................... 131 222 Trizetto Group, Inc. (D)(G)....................... 3,787 90 VA Software Corp. (D)............................. 363 242 VeriFone Holdings, Inc. (D)(G).................... 7,076 107 Verint Systems, Inc. (D).......................... 3,501 22 WebSideStory, Inc. (D)............................ 281 -------- 110,289 -------- TRANSPORTATION -- 6.0% 81 American Commercial Lines, Inc. (D)(G)............ 5,184 4 American Rail Car Industries, Inc. ............... 117 118 Copa Holdings S.A. Class A........................ 4,454 74 Florida East Coast Industries, Inc. .............. 4,401 13 Genesee & Wyoming, Inc. Class A (D)............... 354 101 GOL Linhas Aereas Inteligentes S.A. ADR........... 3,148 26 Kansas City Southern (D).......................... 747 106 Landstar System, Inc. ............................ 4,924 23 Wabtec Corp. ..................................... 735 -------- 24,064 -------- UTILITIES -- 1.1% 37 NRG Energy, Inc. (D)(G)........................... 1,785 91 PNM Resources, Inc. .............................. 2,570 -------- 4,355 -------- Total common stock (cost $348,671)................................. $384,439 -------- INVESTMENT COMPANIES -- 0.9% 45 iShares Russell 2000 Growth Index Fund (cost $3,257)................................... $ 3,495 -------- Total investment companies........................ $ 3,495 -------- Total long-term investments (cost $351,928)................................. $387,934 --------
The accompanying notes are an integral part of these financial statements. 219 THE HARTFORD SMALL COMPANY FUND SCHEDULE OF INVESTMENTS -- (CONTINUED) OCTOBER 31, 2006 (000'S OMITTED) --------------------------------------------------------------------------------
PRINCIPAL MARKET AMOUNT VALUE (W) --------- --------- SHORT-TERM INVESTMENTS -- 24.2% REPURCHASE AGREEMENTS -- 2.6% $ 926 Bank of America Securities TriParty Joint Repurchase Agreement, 5.31%, 11/01/2006............................... $ 926 1,931 BNP Paribas Repurchase Agreement, 5.24%, 11/01/2006............................... 1,931 545 Credit Suisse Securities TriParty Joint Repurchase Agreement, 5.32%, 11/01/2006............................... 545 22 Deutsche Bank Securities Joint Repurchase Agreement, 5.25%, 11/01/2006............................... 22 436 Deutsche Bank Securities TriParty Joint Repurchase Agreement, 5.30%, 11/01/2006............................... 436 915 Deutsche Bank Securities TriParty Joint Repurchase Agreement, 5.32%, 11/01/2006............................... 915 501 Morgan Stanley & Co., Inc. TriParty Joint Repurchase Agreement, 5.29%, 11/01/2006............................... 501 1,980 RBS Greenwich Repurchase Agreement, 5.24%, 11/01/2006............................... 1,980 1,231 UBS Securities TriParty Joint Repurchase Agreement, 5.31%, 11/01/2006............................... 1,231 1,931 UBS Securities Repurchase Agreement, 5.24%, 11/01/2006............................... 1,931 -------- 10,418 -------- SHARES --------- SECURITIES PURCHASED WITH PROCEEDS FROM SECURITY LENDING -- 21.6% 87,081 Navigator Prime Portfolio......................... $ 87,081 -------- Total short-term investments (cost $97,499).................................. $ 97,499 -------- Total investments in securities (cost $449,427) (C)............................. $485,433 ========
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 9.24% of total net assets at October 31, 2006. (A) The aggregate value of securities valued in good faith at fair value by, or under the direction of, the Funds' Board of Directors at October 31, 2006, was $23,157, which represents 5.74% of total net assets. (C) At October 31, 2006, the cost of securities for federal income tax purposes was $451,173 and the aggregate gross unrealized appreciation and depreciation based on that cost were: Unrealized appreciation............................ $41,863 Unrealized depreciation............................ (7,603) ------- Net unrealized appreciation........................ $34,260 =======
(D) Currently non-income producing. (G) Security is partially on loan at October 31, 2006. (H) The following securities are considered illiquid. Illiquid securities are often purchased in private placement transactions, are not registered under the Securities Act of 1933 and may have contractual restrictions on resale. A security may also be considered illiquid if the security lacks a readily available market or if its valuation has not changed for a certain period of time.
PERIOD COST ACQUIRED SHARES SECURITY BASIS -------- ------ -------- ----- June-July 2006 86 Urasia Energy Ltd $209
The aggregate value of these securities at October 31, 2006 was $235, which represents 0.06% of total net assets. (I) 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 qualified institutional buyers. 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, 2006, was $898, which represents 0.22% of total net assets. (W) See Note 2b of accompanying Notes to Financial Statements regarding valuation of securities. FORWARD FOREIGN CURRENCY CONTRACTS OUTSTANDING AT OCTOBER 31, 2006
UNREALIZED MARKET CONTRACT DELIVERY APPRECIATION DESCRIPTION TRANSACTION VALUE AMOUNT DATE (DEPRECIATION) ----------- ----------- ------ -------- ---------- -------------- British Pound Buy $ 18 $ 18 11/02/2006 $-- British Pound Buy 449 449 11/03/2006 -- Euro Sell 82 82 11/02/2006 -- Euro Sell 181 181 11/02/2006 -- Euro Sell 508 506 11/01/2006 (2) Euro Sell 118 118 11/03/2006 -- --- $(2) ===
The accompanying notes are an integral part of these financial statements. 220 THE HARTFORD SMALLCAP GROWTH FUND SCHEDULE OF INVESTMENTS OCTOBER 31, 2006 (000'S OMITTED) --------------------------------------------------------------------------------
MARKET SHARES VALUE (W) --------- --------- COMMON STOCK -- 96.0% BASIC MATERIALS -- 7.4% 36 Carpenter Technology Corp. ....................... $ 3,820 34 Century Aluminum Co. (D).......................... 1,327 64 Chaparral Steel Co. (D)........................... 2,678 147 Cleveland-Cliffs, Inc. (G)........................ 6,208 76 Eagle Materials, Inc. ............................ 2,789 85 Insteel Industries, Inc. ......................... 1,525 56 Mueller Industries, Inc. ......................... 2,050 102 PW Eagle, Inc. (G)................................ 3,625 281 Select Comfort Corp. (D)(G)....................... 6,009 75 Sun Hydraulics Corp. ............................. 1,617 128 Tempur-Pedic International, Inc. (D)(G)........... 2,525 81 Timken Co. ....................................... 2,434 72 UAP Holding Corp. ................................ 1,810 52 VeraSun Energy Corp. (D)(G)....................... 954 -------- 39,371 -------- CAPITAL GOODS -- 4.7% 28 Armor Holdings, Inc. (D).......................... 1,441 29 Briggs & Stratton Corp. .......................... 732 28 Cascade Corp. .................................... 1,413 99 Graco, Inc. ...................................... 4,035 48 Lennox International, Inc. ....................... 1,286 24 Lone Star Technologies, Inc. (D).................. 1,168 76 Nordson Corp. .................................... 3,509 135 Steelcase, Inc. .................................. 2,240 98 Tennant Co. ...................................... 2,704 53 Toro Co. ......................................... 2,266 111 Varian Semiconductor Equipment Associates, Inc. (D)............................................. 4,032 -------- 24,826 -------- CONSUMER CYCLICAL -- 12.0% 53 Aeropostale, Inc. (D)............................. 1,550 50 Albany International Corp. Class A................ 1,691 100 American Woodmark Corp. (G)....................... 3,688 68 Applied Industrial Technologies, Inc. ............ 1,954 483 Arris Group, Inc. (D)............................. 6,466 62 Be Aerospace, Inc. (D)............................ 1,560 66 Bon-Ton Stores, Inc. (G).......................... 2,343 173 Christopher & Banks Corp. ........................ 4,657 49 Dress Barn, Inc. ................................. 1,064 210 DSW, Inc. (D)(G).................................. 7,249 66 First Cash Financial Services, Inc. .............. 1,431 72 Genesco, Inc. (D)................................. 2,701 40 McGrath RentCorp.................................. 1,067 75 Noble International Ltd. ......................... 1,329 68 Phillips-Van Heusen Corp. ........................ 3,093 146 PSS World Medical, Inc. (D)....................... 2,940 54 RARE Hospitality International, Inc. (D).......... 1,711 224 Skechers U.S.A., Inc. Class A (D)................. 6,682 37 Stanley Furniture Co., Inc. ...................... 820 177 Talbots, Inc. .................................... 4,974 220 True Religion Apparel, Inc. (G)................... 4,763 -------- 63,733 --------
MARKET SHARES VALUE (W) --------- --------- ENERGY -- 4.8% 108 Cabot Oil & Gas Corp. ............................ $ 5,733 96 Delek US Holdings, Inc. (D)....................... 1,785 57 Encore Acquisition Co. (D)........................ 1,432 152 Frontier Oil Corp. ............................... 4,478 309 Grey Wolf, Inc. (D)............................... 2,162 300 Meridian Resource Corp. (D)....................... 1,008 98 Pioneer Drilling Co. (D).......................... 1,292 457 Seitel, Inc. (D).................................. 1,581 50 St. Mary Land & Exploration Co. .................. 1,857 32 Swift Energy Co. (D).............................. 1,495 33 Trico Marine Services, Inc. (D)................... 1,132 54 W&T Offshore, Inc. ............................... 1,810 -------- 25,765 -------- FINANCE -- 10.6% 76 Advance America Cash Advance Centers, Inc. ....... 1,142 80 Advanta Corp. Class B............................. 3,135 73 Arch Capital Group Ltd. (D)....................... 4,706 152 Aspen Insurance Holdings Ltd. .................... 3,763 18 City Holding Co. ................................. 698 76 CompuCredit Corp. (D)(G).......................... 2,652 77 Corus Bankshares, Inc. ........................... 1,589 69 DiamondRock Hospitality, Co. ..................... 1,171 29 Ehealth, Inc. (G)................................. 646 182 Encore Capital Group, Inc. (G).................... 2,548 48 First Community Bancorp, Inc. .................... 2,588 152 Hersha Hospitality Trust.......................... 1,662 256 Highland Hospitality Corp. ....................... 3,538 379 Impac Mortgage Holdings, Inc. (G)................. 3,590 125 IndyMac Bancorp, Inc. ............................ 5,680 73 Maguire Properties, Inc. ......................... 3,126 41 Molina Healthcare, Inc. (D)....................... 1,601 145 Net 1 UEPS Technologies, Inc. (D)................. 3,569 79 Northstar Realty Finance Corp. ................... 1,191 196 Strategic Hotels & Resorts, Inc. ................. 4,158 38 Sunstone Hotel Investors, Inc. ................... 1,117 16 Taylor Capital Group, Inc. ....................... 551 38 Wellcare Health Plans, Inc. (D)................... 2,256 -------- 56,677 -------- HEALTH CARE -- 15.3% 112 Acadia Pharmaceuticals, Inc. (D).................. 1,059 346 Alkermes, Inc. (D)................................ 5,816 105 Amylin Pharmaceuticals, Inc. (D).................. 4,607 256 Applera Corp. -- Celera Genomics Group (D)........ 3,972 147 Ciphergen Biosystems, Inc. (D).................... 157 60 Connetics Corp. (D)............................... 1,017 448 CV Therapeutics, Inc. (D)(G)...................... 5,798 120 Cytokinetics, Inc. (D)............................ 876 329 Encysive Pharmaceuticals, Inc. (D)(G)............. 1,567 346 Exelixis, Inc. (D)................................ 3,358 138 Human Genome Sciences, Inc. (D)(G)................ 1,846 138 Immucor, Inc. .................................... 3,788 141 Incyte Corp. (D).................................. 671 37 Longs Drug Stores Corp. .......................... 1,588 56 Luminex Corp. (D)................................. 904
The accompanying notes are an integral part of these financial statements. 221 THE HARTFORD SMALLCAP GROWTH FUND SCHEDULE OF INVESTMENTS -- (CONTINUED) OCTOBER 31, 2006 (000'S OMITTED) --------------------------------------------------------------------------------
MARKET SHARES VALUE (W) --------- --------- COMMON STOCK -- (CONTINUED) HEALTH CARE -- (CONTINUED) 106 Magellan Health Services, Inc. (D)................ $ 4,626 68 Mannatech, Inc. (G)............................... 1,071 51 Meridian Bioscience, Inc. ........................ 1,178 693 NPS Pharmaceuticals, Inc. (D)(G).................. 3,271 114 Nu Skin Enterprises, Inc. Class A................. 2,174 199 Onyx Pharmaceuticals, Inc. (D)(G)................. 3,741 60 OSI Pharmaceuticals, Inc. (D)(G).................. 2,312 167 Perrigo Co. ...................................... 2,989 59 Pharmion Corp. (D)................................ 1,435 311 Regeneron Pharmaceuticals, Inc. (D)............... 6,228 279 Rigel Pharmaceuticals, Inc. (D)................... 3,090 70 Salix Pharmaceuticals Ltd. (D).................... 937 99 Sciele Pharma, Inc. (D)........................... 2,155 155 STERIS Corp. ..................................... 3,775 80 Wright Medical Group, Inc. (D).................... 1,977 38 Zoll Medical Corp. (D)............................ 1,478 114 Zymogenetics, Inc. (D)............................ 1,826 -------- 81,287 -------- SERVICES -- 13.6% 56 Advisory Board Co. (D)............................ 3,087 54 Allscripts Healthcare Solutions, Inc. (D)......... 1,283 298 BISYS Group, Inc. (D)............................. 3,286 80 Central European Media Enterprises Ltd. (D)....... 5,928 64 Cerner Corp. (D)(G)............................... 3,102 120 Cumulus Media, Inc. Class A (D)(G)................ 1,282 43 Factset Research Systems, Inc. ................... 2,209 153 Gevity HR, Inc. .................................. 3,447 245 Global Imaging Systems, Inc. (D).................. 5,327 74 Healthspring, Inc. (D)............................ 1,486 50 Hub Group, Inc. .................................. 1,355 111 Imergent, Inc. (D)(G)............................. 1,857 121 ITT Educational Services, Inc. (D)................ 8,357 172 Jack Henry & Associates, Inc. .................... 3,757 23 John H. Harland Co. .............................. 924 96 Live Nation, Inc. (D)............................. 2,032 78 Martha Stewart Living Omnimedia, Inc. (G)......... 1,643 187 Mediacom Communications Corp. (D)................. 1,560 51 MoneyGram International, Inc. .................... 1,738 40 MTS Systems Corp. ................................ 1,338 95 Parametric Technology Corp. (D)................... 1,851 131 Perot Systems Corp. Class A (D)................... 1,934 60 Per-Se Technologies, Inc. (D)..................... 1,464 131 Plexus Corp. (D).................................. 2,872 311 Premiere Global Services, Inc. (D)................ 2,589 65 Resources Connection, Inc. (D).................... 1,890 9 Stanley, Inc. (D)................................. 160 48 Watson Wyatt Worldwide, Inc. ..................... 2,145 95 Wright Express Corp. (D).......................... 2,606 -------- 72,509 -------- TECHNOLOGY -- 23.1% 45 A.O. Smith Corp. ................................. 1,568 38 Actuant Corp. Class A............................. 1,951
MARKET SHARES VALUE (W) --------- --------- TECHNOLOGY -- (CONTINUED) 135 Acuity Brands, Inc. .............................. $ 6,673 93 Acxiom Corp. ..................................... 2,309 274 Advanced Energy Industries, Inc. (D).............. 4,299 457 Amkor Technology, Inc. (D)........................ 3,155 50 Ansys, Inc. (D)................................... 2,314 96 Benchmark Electronics, Inc. (D)................... 2,543 110 Blackbaud, Inc. .................................. 2,745 447 Brocade Communications Systems, Inc. (D).......... 3,623 107 Candela Corp. (D)................................. 1,509 330 Cirrus Logic, Inc. (D)............................ 2,331 181 CSG Systems International, Inc. (D)(G)............ 4,875 98 Diodes, Inc. (D).................................. 4,303 185 Eagle Test Systems, Inc. (D)...................... 3,247 123 eFunds Corp. (D).................................. 3,040 18 Equinix, Inc. (D)................................. 1,238 5 Exlservice Holdings, Inc. (D)..................... 94 78 FuelCell Energy, Inc. (D)(G)...................... 514 1,175 Gemstar-TV Guide International, Inc. (D).......... 4,088 112 Golden Telecom, Inc. ............................. 4,160 47 Interdigital Communications Corp. ................ 1,681 24 International Rectifier Corp. (D)................. 849 35 Intervoice, Inc. (D).............................. 215 251 iPass, Inc. (D)(G)................................ 1,337 174 j2 Global Communications, Inc. (D)(G)............. 4,766 118 Komag, Inc. (D)(G)................................ 4,514 82 Lamson & Sessions Co. (D)(G)...................... 1,783 210 Micrel, Inc. (D).................................. 2,340 33 MicroStrategy, Inc. (D)(G)........................ 3,986 64 Multi-Fineline Electronix, Inc. (D)(G)............ 1,543 46 Neustar, Inc. (D)................................. 1,341 102 Novatel, Inc. (D)................................. 3,802 129 OmniVision Technologies, Inc. (D)(G).............. 2,125 102 Palomar Medical Technologies, Inc. (D)(G)......... 4,780 181 Portalplayer, Inc. (D)(G)......................... 2,182 62 Regal-Beloit Corp. ............................... 3,056 255 Silicon Image, Inc. (D)........................... 3,013 71 Sybase, Inc. (D).................................. 1,722 71 Syniverse Holdings, Inc. (D)...................... 1,047 21 Transaction Systems Architects, Inc. (D).......... 701 63 Travelzoo, Inc. (G)............................... 2,065 64 Trident Microsystems, Inc. (D).................... 1,347 283 Trizetto Group, Inc. (D).......................... 4,840 35 United Industrial Corp. .......................... 1,584 306 United Online, Inc. .............................. 4,140 152 Vishay Intertechnology, Inc. (D).................. 2,044 -------- 123,382 -------- TRANSPORTATION -- 4.5% 95 American Commercial Lines, Inc. (D)............... 6,062 73 Freighter America, Inc. (G)....................... 3,871 77 General Maritime Corp. (G)........................ 2,805 297 Knight Transportation, Inc. ...................... 5,420 89 Old Dominion Freight Line, Inc. (D)............... 2,462
The accompanying notes are an integral part of these financial statements. 222 --------------------------------------------------------------------------------
MARKET SHARES VALUE (W) --------- --------- COMMON STOCK -- (CONTINUED) TRANSPORTATION -- (CONTINUED) 25 Thor Industries, Inc. ............................ $ 1,087 112 Werner Enterprises, Inc. ......................... 2,062 -------- 23,769 -------- Total common stock (cost $481,201)................................. $511,319 -------- PRINCIPAL AMOUNT --------- SHORT-TERM INVESTMENTS -- 20.2% REPURCHASE AGREEMENT -- 3.7% $19,495 Deutsche Bank Repurchase Agreement, 5.25%, 11/01/2006............................... $ 19,495 -------- SHARES --------- SECURITIES PURCHASED WITH PROCEEDS FROM SECURITY LENDING -- 16.4% 87,207 BNY Institutional Cash Reserve Fund............... $ 87,207 -------- PRINCIPAL AMOUNT --------- US TREASURY BILL -- 0.1% $ 750 U.S. Treasury Bill, 4.90%, 12/07/2006 (M)(S)........................ $ 746 -------- Total short-term investments (cost $107,448)................................. $107,448 -------- Total investments in securities (cost $588,649) (C)............................. $618,767 ========
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 0.71% of total net assets at October 31, 2006. (C) At October 31, 2006, the cost of securities for federal income tax purposes was $589,714 and the aggregate gross unrealized appreciation and depreciation based on that cost were: Unrealized appreciation........................ $ 52,851 Unrealized depreciation........................ (23,798) -------- Net unrealized appreciation.................... $ 29,053 ========
(D) Currently non-income producing. (G) Security is partially on loan at October 31, 2006. (M) The interest rate disclosed for these securities represents the effective yield on the date of acquisition. (W) See Note 2b of accompanying Notes to Financial Statements regarding valuation of securities. (S) Security pledged as initial margin deposit for open futures contracts at October 31, 2006. FUTURES CONTRACTS OUTSTANDING AT OCTOBER 31, 2006
UNREALIZED NUMBER OF APPRECIATION DESCRIPTION CONTRACTS POSITION EXPIRATION (DEPRECIATION) ----------- --------- -------- ---------- -------------- Russell Mini Futures 78 Long December 2006 $335 ====
These contracts had a market value of $6,014 as of October 31, 2006. The accompanying notes are an integral part of these financial statements. 223 THE HARTFORD STOCK FUND SCHEDULE OF INVESTMENTS OCTOBER 31, 2006 (000'S OMITTED) --------------------------------------------------------------------------------
MARKET SHARES VALUE (W) --------- ---------- COMMON STOCK -- 99.5% BASIC MATERIALS -- 5.7% 598 Alcoa, Inc. ...................................... $ 17,297 173 Cameco Corp. ..................................... 6,063 470 Companhia Vale do Rio Doce ADR (G)................ 11,967 329 Dow Chemical Co. ................................. 13,436 160 E.I. DuPont de Nemours & Co. ..................... 7,328 297 Mittal Steel Co. (G).............................. 12,684 ---------- 68,775 ---------- CAPITAL GOODS -- 3.8% 285 American Standard Cos., Inc. ..................... 12,640 204 Boeing Co. ....................................... 16,307 135 Deere & Co. ...................................... 11,501 110 Goodrich Corp. ................................... 4,854 ---------- 45,302 ---------- CONSUMER CYCLICAL -- 8.1% 289 Altria Group, Inc. ............................... 23,480 479 D.R. Horton, Inc. ................................ 11,211 313 eBay, Inc. (D)(G)................................. 10,066 122 Federated Department Stores, Inc. ................ 5,353 510 Gap, Inc. ........................................ 10,727 321 Home Depot, Inc. ................................. 11,983 111 Toyota Motor Corp. (A)............................ 6,554 356 Wal-Mart Stores, Inc. ............................ 17,558 ---------- 96,932 ---------- CONSUMER STAPLES -- 5.3% 103 Clorox Co. ....................................... 6,669 1 Japan Tobacco, Inc. (A)........................... 4,622 305 PepsiCo, Inc. .................................... 19,375 319 Procter & Gamble Co. ............................. 20,190 518 Unilever N.V. NY Shares........................... 12,531 ---------- 63,387 ---------- ENERGY -- 5.3% 284 EnCana Corp. (G).................................. 13,506 285 Exxon Mobil Corp. ................................ 20,355 510 Halliburton Co. .................................. 16,492 298 Williams Cos., Inc. .............................. 7,283 127 XTO Energy, Inc. ................................. 5,930 ---------- 63,566 ---------- FINANCE -- 21.1% 325 Aegon N.V. (A).................................... 5,979 446 American International Group, Inc. ............... 29,941 631 Bank of America Corp. ............................ 33,981 150 Capital One Financial Corp. ...................... 11,907 712 Citigroup, Inc. .................................. 35,729 383 Countrywide Financial Corp. ...................... 14,604 471 E*Trade Financial Corp. (D)....................... 10,970 146 Federal Home Loan Mortgage Corp. ................. 10,100 41 Goldman Sachs Group, Inc. ........................ 7,724 126 ING Groep N.V. ADR................................ 5,568 -- Mitsubishi UFJ Financial Group, Inc. (A).......... 6,165 104 Muenchener Rueckversicherungs-Gesellschaft AG (A)............................................. 16,848
MARKET SHARES VALUE (W) --------- ---------- FINANCE -- (CONTINUED) 162 State Street Corp. ............................... $ 10,380 387 UBS AG............................................ 23,168 495 UnitedHealth Group, Inc. ......................... 24,161 324 Western Union Co. ................................ 7,151 ---------- 254,376 ---------- HEALTH CARE -- 12.1% 345 Abbott Laboratories............................... 16,372 212 Amgen, Inc. (D)................................... 16,116 1,137 Boston Scientific Corp. (D)....................... 18,086 795 Bristol-Myers Squibb Co. ......................... 19,676 119 Cardinal Health, Inc. ............................ 7,789 797 Elan Corp. plc ADR (D)(G)......................... 11,535 337 Eli Lilly & Co. .................................. 18,894 391 Sanofi-Aventis S.A. ADR........................... 16,683 580 Schering-Plough Corp. ............................ 12,839 393 Shionogi & Co., Ltd. (A).......................... 7,874 ---------- 145,864 ---------- SERVICES -- 9.8% 351 Accenture Ltd. Class A............................ 11,551 174 Autodesk, Inc. (D)................................ 6,409 104 Fluor Corp. ...................................... 8,180 169 Monster Worldwide, Inc. (D)....................... 6,830 1,511 Sun Microsystems, Inc. (D)(G)..................... 8,205 637 Time Warner, Inc. ................................ 12,740 387 United Parcel Service, Inc. Class B (G)........... 29,123 362 Viacom, Inc. Class B (D).......................... 14,091 307 Walt Disney Co. .................................. 9,668 893 XM Satellite Radio Holdings, Inc. Class A (D)(G).......................................... 10,412 ---------- 117,209 ---------- TECHNOLOGY -- 27.8% 310 Adobe Systems, Inc. (D)........................... 11,873 134 American Tower Corp. Class A (D).................. 4,819 871 AT&T, Inc. (G).................................... 29,820 565 Broadcom Corp. Class A (D)(G)..................... 17,115 1,152 Cisco Systems, Inc. (D)........................... 27,803 1,758 EMC Corp. (D)..................................... 21,533 337 First Data Corp. ................................. 8,175 993 Flextronics International Ltd. (D)................ 11,518 1,637 General Electric Co. ............................. 57,461 42 Google, Inc. (D).................................. 19,865 531 Marvell Technology Group Ltd. (D)................. 9,710 470 Maxim Integrated Products, Inc. .................. 14,096 585 Medtronic, Inc. .................................. 28,492 904 Microsoft Corp. .................................. 25,954 534 Oracle Corp. (D).................................. 9,859 2 Samsung Electronics Co., Ltd. (A)................. 1,228 238 Sharp Corp. (A)................................... 4,236 975 Sprint Nextel Corp. .............................. 18,227 506 Yahoo!, Inc. (D)(G)............................... 13,328 ---------- 335,112 ----------
The accompanying notes are an integral part of these financial statements. 224 --------------------------------------------------------------------------------
MARKET SHARES VALUE (W) --------- ---------- COMMON STOCK -- (CONTINUED) UTILITIES -- 0.5% 47 E.On AG (A)....................................... $ 5,635 ---------- Total common stock (cost $1,124,843)............................... $1,196,158 ---------- PRINCIPAL AMOUNT --------- SHORT-TERM INVESTMENTS -- 8.9% REPURCHASE AGREEMENTS -- 0.6% $ 1,533 Bank of America Securities TriParty Joint Repurchase Agreement, 5.31%, 11/01/2006............................... $ 1,533 902 Credit Suisse Securities TriParty Joint Repurchase Agreement, 5.32%, 11/01/2006............................... 902 36 Deutsche Bank Securities Joint Repurchase Agreement, 5.25%, 11/01/2006............................... 36 721 Deutsche Bank Securities TriParty Joint Repurchase Agreement, 5.30%, 11/01/2006............................... 721 1,515 Deutsche Bank Securities TriParty Joint Repurchase Agreement, 5.32%, 11/01/2006............................... 1,515 829 Morgan Stanley & Co., Inc. TriParty Joint Repurchase Agreement, 5.29%, 11/01/2006............................... 829 2,038 UBS Securities TriParty Joint Repurchase Agreement, 5.31%, 11/01/2006............................... 2,038 ---------- 7,574 ---------- MARKET SHARES VALUE (W) --------- ---------- SECURITIES PURCHASED WITH PROCEEDS FROM SECURITY LENDING -- 8.3% 99,232 BNY Institutional Cash Reserve Fund............... $ 99,232 ---------- Total short-term investments (cost $106,806)................................. $ 106,806 ---------- Total investments in securities (cost $1,231,649) (C)........................... $1,302,964 ==========
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 14.38% of total net assets at October 31, 2006. (A) The aggregate value of securities valued in good faith at fair value by, or under the direction of, the Funds' Board of Directors at October 31, 2006, was $59,141, which represents 4.92% of total net assets. (C) At October 31, 2006, the cost of securities for federal income tax purposes was $1,248,951 and the aggregate gross unrealized appreciation and depreciation based on that cost were: Unrealized appreciation........................ $ 90,974 Unrealized depreciation........................ (36,961) -------- Net unrealized appreciation.................... $ 54,013 ========
(D) Currently non-income producing. (G) Security is partially on loan at October 31, 2006. (W) See Note 2b of accompanying Notes to Financial Statements regarding valuation of securities. FORWARD FOREIGN CURRENCY CONTRACTS OUTSTANDING AT OCTOBER 31, 2006
UNREALIZED MARKET CONTRACT DELIVERY APPRECIATION DESCRIPTION TRANSACTION VALUE AMOUNT DATE (DEPRECIATION) ----------- ----------- ------ -------- -------- -------------- Japanese Yen Buy $ 420 $ 414 11/01/2006 $ 6 Japanese Yen Buy 3,224 3,215 11/02/2006 9 Japanese Yen Buy 1,767 1,754 11/06/2006 13 --- $28 ===
The accompanying notes are an integral part of these financial statements. 225 THE HARTFORD TARGET RETIREMENT 2010 FUND SCHEDULE OF INVESTMENTS OCTOBER 31, 2006 (000'S OMITTED) --------------------------------------------------------------------------------
MARKET SHARES VALUE (W) --------- --------- AFFILIATED INVESTMENT COMPANIES -- 98.5% EQUITY FUNDS -- 53.8% 6 Hartford Capital Appreciation Fund, Class Y....... $ 266 14 Hartford Disciplined Equity Fund, Class Y......... 192 2 Hartford Equity Income Fund, Class Y.............. 21 3 Hartford Global Leaders Fund, Class Y............. 53 2 Hartford Growth Fund, Class Y (D)................. 29 1 Hartford Growth Opportunities Fund, Class Y....... 30 2 Hartford International Capital Appreciation Fund, Class Y......................................... 28 4 Hartford International Opportunities Fund, Class Y............................................... 63 4 Hartford International Small Company Fund, Class Y............................................... 71 2 Hartford MidCap Value Fund, Class Y............... 26 2 Hartford Select MidCap Growth Fund, Class Y....... 27 2 Hartford Select MidCap Value Fund, Class Y........ 26 6 Hartford Select SmallCap Value Fund, Class Y (D)............................................. 67 2 Hartford Small Company Fund, Class Y (D).......... 51 2 Hartford SmallCap Growth Fund, Class Y (D)........ 57 17 Hartford Value Fund, Class Y...................... 216 5 Hartford Value Opportunities Fund, Class Y........ 97 ------ Total equity funds (cost $1,284)................................... $1,320 ------ FIXED INCOME FUNDS -- 44.7% 13 Hartford Floating Rate Fund, Class Y.............. 134 11 Hartford High Yield Fund, Class Y................. 89 11 Hartford Income Fund, Class Y..................... 112 21 Hartford Inflation Plus Fund, Class Y............. 220 26 Hartford Short Duration Fund, Class Y............. 256 21 Hartford Total Return Bond Fund, Class Y.......... 226 6 Hartford U.S. Government Securities Fund, Class Y............................................... 61 ------ Total fixed income funds (cost $1,089)................................... $1,098 ------ Total investments in affiliated investment companies (cost $2,373) (C)............................... $2,418 ======
Note: Percentage of investments as shown is the ratio of the total market value to total net assets. (C) At October 31, 2006, the cost of securities for federal income tax purposes was $2,373 and the aggregate gross unrealized appreciation and depreciation based on that cost were: Unrealized appreciation............................. $49 Unrealized depreciation............................. (4) --- Net unrealized appreciation......................... $45 ===
(D) Currently non-income producing. (W) See Note 2b of accompanying Notes to Financial Statements regarding valuation of securities. The accompanying notes are an integral part of these financial statements. 226 THE HARTFORD TARGET RETIREMENT 2020 FUND SCHEDULE OF INVESTMENTS OCTOBER 31, 2006 (000'S OMITTED) --------------------------------------------------------------------------------
MARKET SHARES VALUE (W) --------- --------- AFFILIATED INVESTMENT COMPANIES -- 98.7% EQUITY FUNDS -- 63.3% 10 Hartford Capital Appreciation Fund, Class Y....... $ 402 15 Hartford Disciplined Equity Fund, Class Y......... 206 4 Hartford Equity Income Fund, Class Y.............. 50 7 Hartford Global Leaders Fund, Class Y............. 134 2 Hartford Growth Fund, Class Y (D)................. 42 1 Hartford Growth Opportunities Fund, Class Y....... 43 1 Hartford International Capital Appreciation Fund, Class Y......................................... 12 2 Hartford International Opportunities Fund, Class Y............................................... 41 6 Hartford International Small Company Fund, Class Y............................................... 106 1 Hartford MidCap Value Fund, Class Y............... 8 1 Hartford Select MidCap Growth Fund, Class Y....... 12 2 Hartford Select Midcap Value Fund, Class Y........ 28 -- Hartford Select Smallcap Growth Fund, Class Y (D)............................................. 2 1 Hartford Select Smallcap Value Fund, Class Y (D)............................................. 16 4 Hartford Small Company Fund, Class Y (D).......... 81 3 Hartford SmallCap Growth Fund, Class Y (D)........ 80 29 Hartford Value Fund, Class Y...................... 377 6 Hartford Value Opportunities Fund, Class Y........ 110 ------ Total equity funds (cost $1,672)................................... $1,750 ------
MARKET SHARES VALUE (W) --------- --------- FIXED INCOME FUNDS -- 35.4% 13 Hartford Floating Rate Fund, Class Y.............. $ 132 3 Hartford High Yield Fund, Class Y................. 27 25 Hartford Income Fund, Class Y..................... 254 11 Hartford Inflation Plus Fund, Class Y............. 116 28 Hartford Short Duration Fund, Class Y............. 275 16 Hartford Total Return Bond Fund, Class Y.......... 175 ------ Total fixed income funds (cost $974)..................................... $ 979 ------ Total investments in affiliated investment companies (cost $2,646) (C)............................... $2,729 ======
Note: Percentage of investments as shown is the ratio of the total market value to total net assets. (C) At October 31, 2006, the cost of securities for federal income tax purposes was $2,647 and the aggregate gross unrealized appreciation and depreciation based on that cost were: Unrealized appreciation............................. $82 Unrealized depreciation............................. -- --- Net unrealized appreciation......................... $82 ===
(D) Currently non-income producing. (W) See Note 2b of accompanying Notes to Financial Statements regarding valuation of securities. The accompanying notes are an integral part of these financial statements. 227 THE HARTFORD TARGET RETIREMENT 2030 FUND SCHEDULE OF INVESTMENTS OCTOBER 31, 2006 (000'S OMITTED) --------------------------------------------------------------------------------
MARKET SHARES VALUE (W) --------- --------- AFFILIATED INVESTMENT COMPANIES -- 98.0% EQUITY FUNDS -- 76.6% 9 Hartford Capital Appreciation Fund, Class Y....... $ 361 20 Hartford Disciplined Equity Fund, Class Y......... 266 4 Hartford Equity Income Fund, Class Y.............. 56 10 Hartford Global Leaders Fund, Class Y............. 193 1 Hartford Growth Fund, Class Y (D)................. 12 2 Hartford Growth Opportunities Fund, Class Y....... 73 1 Hartford International Capital Appreciation Fund, Class Y......................................... 8 -- Hartford International Opportunities Fund, Class Y............................................... 5 5 Hartford International Small Company Fund, Class Y............................................... 80 -- Hartford MidCap Value Fund, Class Y............... 6 1 Hartford Select MidCap Growth Fund, Class Y....... 12 1 Hartford Select MidCap Value Fund, Class Y........ 16 5 Hartford Select SmallCap Growth Fund, Class Y (D)............................................. 49 -- Hartford Select SmallCap Value Fund, Class Y...... 1 8 Hartford Small Company Fund, Class Y (D).......... 181 3 Hartford SmallCap Growth Fund, Class Y (D)........ 81 17 Hartford Value Fund, Class Y...................... 223 7 Hartford Value Opportunities Fund, Class Y........ 121 ------ Total equity funds (cost $1,665)................................... $1,744 ------
MARKET SHARES VALUE (W) --------- --------- FIXED INCOME FUNDS -- 21.4% 3 Hartford Income Fund, Class Y..................... $ 28 11 Hartford Inflation Plus Fund, Class Y............. 112 16 Hartford Short Duration Fund, Class Y............. 157 18 Hartford Total Return Bond Fund, Class Y.......... 189 ------ Total fixed income funds (cost $483)..................................... $ 486 ------ Total investments in affiliated investment companies (cost $2,148) (C)............................... $2,230 ======
Note: Percentage of investments as shown is the ratio of the total market value to total net assets. (C) At October 31, 2006, the cost of securities for federal income tax purposes was $2,148 and the aggregate gross unrealized appreciation and depreciation based on that cost were: Unrealized appreciation............................. $82 Unrealized depreciation............................. -- --- Net unrealized appreciation......................... $82 ===
(D) Currently non-income producing. (W) See Note 2b of accompanying Notes to Financial Statements regarding valuation of securities. The accompanying notes are an integral part of these financial statements. 228 THE HARTFORD TAX-FREE CALIFORNIA FUND SCHEDULE OF INVESTMENTS OCTOBER 31, 2006 (000'S OMITTED) --------------------------------------------------------------------------------
PRINCIPAL MARKET AMOUNT VALUE (W) --------- --------- MUNICIPAL BONDS -- 94.8% GENERAL OBLIGATIONS -- 10.2% $ 870 California GO, 4.75%, 09/01/2028............................... $ 893 900 California Kindergarten University GO, 3.45%, 05/01/2034 (L)........................... 900 600 Covina Valley, CA, USD GO, 4.38%, 08/01/2027............................... 603 400 Grant, CA, USD GO, 4.38%, 08/01/2031............................... 396 250 Puerto Rico Commonwealth Ref GO, 5.00%, 07/01/2030............................... 264 ------- 3,056 ------- HEALTH CARE/SERVICES -- 5.2% 200 California ABAG FA for Non-Profit Corp., San Diego Hospital Assoc, 5.38%, 03/01/2021............................... 211 250 California Health Fac FA, Catholic Healthcare West, 5.25%, 07/01/2023............................... 266 300 California Public Works Board, Dept of Health Services Richmond Lab, 5.00%, 11/01/2030............................... 316 200 California Public Works Board, Dept of Mental Health Patton, 5.38%, 04/01/2028............................... 213 250 California State Community DA, Health Services Rev, 6.00%, 10/01/2023............................... 277 250 California Statewide Community DA, Daughters of Charity Health, 5.25%, 07/01/2030............................... 264 ------- 1,547 ------- HIGHER EDUCATION (UNIV., DORMS, ETC.) -- 17.6% 200 California Educational Fac Auth Rev, 5.00%, 01/01/2025............................... 207 630 California Educational Fac Auth Rev, 5.00%, 04/01/2030............................... 655 455 California Educational Fac Auth Rev, 5.00%, 10/01/2025............................... 472 300 California Educational Fac Auth Rev, 5.00%, 12/01/2025............................... 312 180 California Educational Fac Auth, La Verne University, 5.00%, 06/01/2031............................... 185 750 California Educational Fac Auth, University of the Pacific, 5.00%, 11/01/2036............................... 780 175 California State Community DA, 4.88%, 10/01/2035............................... 176 250 California State Community DA, John F. Kennedy University Rev, 6.75%, 10/01/2033............................... 264 1,000 California State University Rev, 5.00%, 11/01/2028............................... 1,064
PRINCIPAL MARKET AMOUNT VALUE (W) --------- --------- HIGHER EDUCATION -- (CONTINUED) $1,895 Chabot-Las Positas, CA, Community College District, 5.05%, 08/01/2033 (M)(Q)........................ $ 513 250 Hemet, CA, USD, 5.13%, 09/01/2036 (Q)........................... 252 250 Poway, CA, USD Special Tax, 5.13%, 09/01/2026............................... 256 110 University Virgin Islands, 5.00%, 12/01/2021............................... 114 ------- 5,250 ------- HOUSING (HFA'S, ETC.) -- 2.8% 650 California Economic Recovery, 3.59%, 01/01/2012 (L)........................... 650 200 Riverside County California Public FA, 4.50%, 10/01/2037 (Q)........................... 199 ------- 849 ------- LAND DEVELOPMENT -- 6.4% 350 Burbank, CA, FA Rev, South San Fernando Redev Proj, 5.50%, 12/01/2023............................... 369 400 Fontana, CA, Redev Agency, Tax Allocation Ref Jurupa Hills Redev Proj, 5.50%, 10/01/2027............................... 412 295 Manhattan Beach, CA, Improvement BD Act, 5.00%, 09/02/2026............................... 304 250 Oakland, CA, Redev Agency, Colliseum Area Tax Allocation, 5.25%, 09/01/2033............................... 275 200 San Diego, CA, Redev Agency, Centre City Sub Pkg, 5.25%, 09/01/2026............................... 205 150 San Diego, CA, Redev Agency, Tax Allocation North Bay Redev Proj, 5.60%, 09/01/2017............................... 157 175 San Diego, CA, Redev Agency, Tax Allocation North Park Redev Proj, 5.30%, 09/01/2016............................... 182 ------- 1,904 ------- MISCELLANEOUS -- 30.8% 100 Azusa, CA, Special Tax Community Fac Dist #1 Mountain Cove, 5.75%, 09/01/2021............................... 105 50 Beaumont, CA, FA Rev, 7.25%, 09/01/2020............................... 54 500 California Infrastructure & Econ Dev, Bay Area Toll Bridges GO FSA, 5.00%, 07/01/2022............................... 566 200 California Kings River Conservation Dist, Rev Ref Partner Peaking Proj, 5.00%, 05/01/2013............................... 212 650 Chico, CA, Redevelopment Agency Tax Allocation, 5.00%, 04/01/2027............................... 691
The accompanying notes are an integral part of these financial statements. 229 THE HARTFORD TAX-FREE CALIFORNIA FUND SCHEDULE OF INVESTMENTS -- (CONTINUED) OCTOBER 31, 2006 (000'S OMITTED) --------------------------------------------------------------------------------
PRINCIPAL MARKET AMOUNT VALUE (W) --------- --------- MUNICIPAL BONDS -- (CONTINUED) MISCELLANEOUS -- (CONTINUED) $ 225 Chino, CA, Community Fac District Special Tax, 5.00%, 09/01/2036............................... $ 227 400 Contra Costa County, CA, Public FA Tax Allocation, 5.63%, 08/01/2033............................... 423 200 Elk Grove, CA, Special Tax East Franklin Community, 5.85%, 08/01/2036............................... 207 250 Escondido, California, 5.15%, 09/01/2036 (Q)........................... 252 400 Huntington Park, CA, Public FA Rev Ref, 5.25%, 09/01/2019............................... 447 300 Indio, CA, Community Fac Dist, 5.05%, 09/01/2026............................... 302 135 Indio, CA, Public FA Rev Local Agency, 5.00%, 09/02/2014............................... 138 57 Indio, CA, Public Improvement Act Special Assess #2002-3 GO, 6.35%, 09/02/2027............................... 60 225 Irvine, CA, Community Fac Dist, 5.20%, 09/01/2026............................... 232 250 Jurupa, CA, 5.20%, 09/01/2036............................... 255 1,000 Kern County, CA, California Tobacco Securitization Agency, 6.00%, 06/01/2029............................... 1,071 200 Lake Elsinore, CA, Special Tax Community Fac Dist, 5.35%, 09/01/2036............................... 204 250 Lake Elsinore, CA, Special Tax Community Fac Dist, 5.15%, 09/01/2025............................... 259 100 Lake Elsinore, CA, Special Tax Community Fac Dist #2-A, 5.85%, 09/01/2024............................... 106 310 Long Beach, CA, Harbor Rev Ref, 5.00%, 05/15/2015............................... 332 300 Oceanside, CA, Community Development, 5.70%, 09/01/2025............................... 320 100 Perris, CA, Public FA Local Agency Rev, 6.25%, 09/01/2033............................... 109 200 Roseville, CA, Special Tax CFD#1, 5.25%, 09/01/2025............................... 206 250 Sacramento, CA, North Natomas Community Fac, 5.00%, 09/01/2025............................... 254 1,000 San Francisco, CA, California Toll Bridge Rev, 5.00%, 04/01/2031............................... 1,067 425 Solano, CA, MBIA, 5.25%, 11/01/2021............................... 460
PRINCIPAL MARKET AMOUNT VALUE (W) --------- --------- MISCELLANEOUS -- (CONTINUED) $ 300 Virgin Islands Public FA Rev, 4.25%, 10/01/2029............................... $ 301 250 Virgin Islands Public FA, Revhovenska Refinery, 6.13%, 07/01/2022............................... 275 ------- 9,135 ------- POLLUTION CONTROL -- 0.8% 250 California PCR, Pacific Gas & Electric, 3.50%, 12/01/2023............................... 250 ------- PUBLIC FACILITIES -- 7.5% 250 California Public Works Board, Dept of Corrections Ref, 5.00%, 12/01/2018............................... 270 250 California Statewide Community DA, 5.00%, 11/01/2029 (Q)........................... 250 160 California Statewide Community DA, Var-Kaiser Ser C, 5.25%, 08/01/2031............................... 171 100 Capistrano, CA, USD Community Fac Dist Special Tax #90-2 Talega, 5.88%, 09/01/2022............................... 114 100 Jurupa, CA, Community Services Dist #6 Special Tax, 5.88%, 09/01/2032............................... 102 110 Moreno Valley, CA, USD Community Fac Special Tax #2002-1, 5.60%, 09/01/2017............................... 116 100 Orange County, CA, Community Fac Dist Special Tax #02-1 Ladera Ranch, 5.20%, 08/15/2019............................... 103 200 Orange County, CA, Community Fac Dist Special Tax #02-1 Ladera Ranch, 5.40%, 08/15/2022............................... 206 250 Tustin, CA, USD Community Fac Dist Special Tax #97 Jr Lien, 5.60%, 09/01/2029............................... 257 200 Val Verde, CA, USD FA Special Tax Rev Jr Lien, 6.00%, 10/01/2021............................... 210 300 William S. Hart USD, 5.25%, 09/01/2026............................... 308 125 William S. Hart USD, Special Tax Community Fac #2002-1, 5.85%, 09/01/2022............................... 134 ------- 2,241 ------- TRANSPORTATION -- 0.6% 165 Orange County, CA, Special Assess, 5.05%, 09/02/2033............................... 170 ------- UTILITIES -- COMBINED -- 0.9% 250 California State Water Dept, Res Power Supply Rev, 5.88%, 05/01/2016............................... 282 -------
The accompanying notes are an integral part of these financial statements. 230 --------------------------------------------------------------------------------
PRINCIPAL MARKET AMOUNT VALUE (W) --------- --------- MUNICIPAL BONDS -- (CONTINUED) UTILITIES -- GAS -- 1.1% $ 300 Chula Vista, CA, IDR Daily San Diego Gas, 5.30%, 07/01/2021............................... $ 323 ------- UTILITIES -- WATER AND SEWER -- 9.6% 500 Atwater, CA, Public FA Sewer & Water Project, 5.50%, 05/01/2028............................... 512 250 Big Bear Muni Water Dist, Ref Lake Imports, 5.00%, 11/01/2024............................... 255 1,000 California Metropolitan Water Dist, Southern CA Waterworks Rev, 4.38%, 07/01/2037............................... 991 250 Lathrop, CA, FA Rev Water Supply Proj, 6.00%, 06/01/2035............................... 267 150 Lee Lake, CA, Water Dist Community Fac Dist #3 Special Tax Retreat, 5.75%, 09/01/2023............................... 158 200 Santa Margarita, CA, Water Dist Special Tax Community Fac Dist #99-1, 6.00%, 09/01/2030............................... 212 200 Sun Ranch, CA, Municipal Water Dist, 5.00%, 09/01/2036............................... 202 240 Truckee-Donner, CA, Pub Utility Dist, 5.00%, 11/15/2031............................... 256 ------- 2,853 ------- WASTE DISPOSAL -- 1.3% 375 Stockton, CA, Wastewater Sys Proj MBIA, 5.20%, 09/01/2029............................... 391 ------- Total municipal bonds (cost $27,297).................................. $28,251 -------
MARKET SHARES VALUE (W) --------- --------- SHORT-TERM INVESTMENTS -- 4.6% FINANCE -- 4.6% 1,362 Dreyfus Basic California Municipal Money Market Fund,........................................... $ 1,362 ------- Total short-term investments (cost $1,362)................................... $ 1,362 ------- Total investments in securities (cost $28,659) (C).............................. $29,613 =======
Note: Percentage of investments as shown is the ratio of the total market value to total net assets. (C) At October 31, 2006, the cost of securities for federal income tax purposes was $28,659 and the aggregate gross unrealized appreciation and depreciation based on that cost were: Unrealized appreciation............................ $955 Unrealized depreciation............................ (1) ---- Net unrealized appreciation........................ $954 ====
(L) Variable rate securities; the rate reported is the coupon rate in effect at October 31, 2006. (M) The interest rate disclosed for these securities represents the effective yield on the date of acquisition. (Q) The cost of securities purchased on a when-issued or delayed delivery basis at October 31, 2006 was $1,442. (W) See Note 2b of accompanying Notes to Financial Statements regarding valuation of securities. DA -- Development Authority FA -- Finance Authority GO -- General Obligations IDR -- MBIA -- Municipal Bond Insurance Association PCR -- Pollution Control Revenue Bond USD -- United School District
The accompanying notes are an integral part of these financial statements. 231 THE HARTFORD TAX-FREE MINNESOTA FUND SCHEDULE OF INVESTMENTS OCTOBER 31, 2006 (000'S OMITTED) --------------------------------------------------------------------------------
PRINCIPAL MARKET AMOUNT VALUE (W) --------- --------- MUNICIPAL BONDS -- 96.3% AIRPORT REVENUES -- 4.5% $ 500 Minneapolis & St Paul, MN, Airport Commission, 5.00%, 01/01/2035............................... $ 526 1,000 Minneapolis & St Paul, MN, Airport Commission FGIC AMT, 5.63%, 01/01/2018............................... 1,062 ------- 1,588 ------- GENERAL OBLIGATIONS -- 15.7% 1,000 Anoka-Hennepin, MN, ISD #11 GO Credit Enhancement Program, 5.00%, 02/01/2015............................... 1,052 1,300 Becker, MN, ISD #726 GO FSA, 6.00%, 02/01/2017............................... 1,395 500 Brainerd, MN, ISD #181 GO FGIC, 5.38%, 02/01/2016............................... 546 250 Minneapolis, MN, Parking Assess GO, 5.00%, 12/01/2020............................... 267 785 Mounds View, MN, ISD #621 GO, 5.25%, 02/01/2014............................... 835 1,950 Rosemount, MN, ISD #196 GO MBIA, 5.70%, 04/01/2015 (M)........................... 1,391 ------- 5,486 ------- HEALTH CARE/SERVICES -- 20.1% 250 Bemidji, MN, Health Care Facility, 5.00%, 09/01/2021............................... 262 250 Bemidji, MN, Health Care Facility, 5.00%, 09/01/2024............................... 262 1,130 Duluth, MN, Econ DA Health Care Fac Rev, Benedictine Health Sys St Mary, 5.50%, 02/15/2023............................... 1,212 350 Marshall, MN, Avera Marshall Regional Med Center, 4.75%, 11/01/2028............................... 356 250 Minneapolis, MN, Health Care System AllinaHealth, 6.00%, 11/15/2018............................... 277 1,000 Minnesota Agriculture and Econ Development Healthcare Fac, Benedictine Health, 5.25%, 02/15/2014............................... 1,059 330 Northfield, MN, Hospital Rev, 5.38%, 11/01/2031............................... 346 335 St Paul, MN, Housing Redev Auth Hospital Rev, 6.00%, 11/15/2025............................... 370 750 Stillwater, MN, Health System Obligation Group, 5.00%, 06/01/2035............................... 782 725 Todd, Morrison, Cass, & Wadena County, MN, Hospital Lakewood Health Care Fac, 5.25%, 12/01/2026............................... 769
PRINCIPAL MARKET AMOUNT VALUE (W) --------- --------- HEALTH CARE/SERVICES -- (CONTINUED) $1,000 Waconia, MN, Health Care Fac Rev Ridgeview Med Ctr Proj, 6.10%, 01/01/2019............................... $ 1,067 250 Willmar, MN, Rice Memorial Hospital Proj FSA, 5.00%, 02/01/2025............................... 264 ------- 7,026 ------- HIGHER EDUCATION (UNIV., DORMS, ETC.) -- 9.8% 300 Minnesota Higher Education FA, 5.00%, 05/01/2026............................... 312 500 Minnesota Higher Education FA, Augsburg College, 5.00%, 05/01/2020............................... 521 500 Minnesota Higher Education FA, Augsburg College, 5.00%, 05/01/2023............................... 519 350 Minnesota Higher Education FA, College of St Benedict, 5.25%, 03/01/2024............................... 368 1,000 University of Minnesota, 5.75%, 07/01/2018............................... 1,182 270 University Virgin Islands, 5.13%, 12/01/2022............................... 280 100 University Virgin Islands, 5.25%, 12/01/2023............................... 105 125 University Virgin Islands, 5.25%, 12/01/2024............................... 130 ------- 3,417 ------- HOUSING (HFA'S, ETC.) -- 10.7% 350 Inver Grove Heights, MN, Presbyterian Homes Care, 5.50%, 10/01/2033............................... 355 80 Minneapolis, MN, Redev Mtg Rev Riverplace Proj, 7.10%, 01/01/2020............................... 80 790 Minnesota Residential Housing Fin Agency, 5.00%, 01/01/2020............................... 808 350 Prior Lake, MN, Shepards Path Senior Housing Inc., 5.75%, 08/01/2041............................... 357 360 Renville County, MN, 4.60%, 02/01/2027............................... 366 1,000 Rochester, MN, Health Care Fac Rev, 5.00%, 11/15/2036............................... 1,050 260 St Paul, MN, Housing Redev Auth, Hmong Academy Proj, 6.00%, 09/01/2036............................... 262 450 St Paul, MN, Housing Redev Auth, Hope Community Academy Proj, 6.25%, 12/01/2019............................... 476 ------- 3,754 -------
The accompanying notes are an integral part of these financial statements. 232 --------------------------------------------------------------------------------
PRINCIPAL MARKET AMOUNT VALUE (W) --------- --------- MUNICIPAL BONDS -- (CONTINUED) MISCELLANEOUS -- 15.0% $1,000 Golden Valley, MN, Breck School Proj Rev, 5.88%, 10/01/2019............................... $ 1,063 350 Minneapolis, MN, 5.35%, 02/01/2030............................... 354 1,000 Puerto Rico Commonwealth Public Fin Corp., 5.75%, 08/01/2027............................... 1,085 250 Ramsey, MN, Lease Rev Pact Charter School Proj, 6.50%, 12/01/2022............................... 265 300 St. Louis Park, MN, Roitenberg Family Assisted Proj, 5.55%, 08/15/2029............................... 307 500 St Paul, MN, PA Lease Rev, 5.00%, 12/01/2019............................... 526 300 St Paul, MN, Redev Auth Rev Ref, Achieve Language Academy, 6.75%, 12/01/2022............................... 309 750 Virgin Islands Public FA, Revhovenska Refinery, 6.13%, 07/01/2022............................... 826 500 Woodbury, MN, 5.75%, 06/01/2041............................... 514 ------- 5,249 ------- POLLUTION CONTROL -- 1.5% 500 Cohasset, MN, Pollution Control Rev Ref Coll Allete Inc. Proj, 4.95%, 07/01/2022............................... 514 ------- PUBLIC FACILITIES -- 3.5% 835 Minnesota Agricultural Society, State Fair Rev, 5.13%, 09/15/2023............................... 870 350 Minnesota Intermediate School Dist Minnlease Rev, 5.30%, 11/01/2032............................... 357 ------- 1,227 ------- TRANSPORTATION -- 5.3% 750 Duluth, MN, Seaway PA IDA Dock & Wharf Rev Ref, Cargill Inc Proj, 4.20%, 05/01/2013............................... 753 1,000 Puerto Rico Commonwealth Highway & Transportation Auth FSA, 5.50%, 07/01/2013............................... 1,114 ------- 1,867 ------- UTILITIES -- COMBINED -- 0.9% 300 Princeton, MN, Public Utility Sys Rev, 5.00%, 04/01/2024............................... 308 ------- UTILITIES -- ELECTRIC -- 4.5% 500 Chaska, MN, Electric Rev, 5.00%, 10/01/2030............................... 523 500 Minnesota Power Agency, Electric Rev, 5.25%, 10/01/2019............................... 543
PRINCIPAL MARKET AMOUNT VALUE (W) --------- --------- UTILITIES -- ELECTRIC -- (CONTINUED) $ 500 Northern MN Municipal Power Agency, Elec Sys Rev FSA, 5.30%, 01/01/2021............................... $ 518 ------- 1,584 ------- UTILITIES -- WATER AND SEWER -- 4.8% 500 Minneapolis, MN, Metro Council Water Treatment, 4.75%, 12/01/2016............................... 535 1,000 Puerto Rico Commonwealth Aqueduct & Sewer Auth Rev, 6.25%, 07/01/2013............................... 1,133 ------- 1,668 ------- Total municipal bonds (cost $32,110).................................. $33,688 ------- SHARES --------- SHORT-TERM INVESTMENTS -- 2.3% FINANCE -- 2.3% 793 State Street Bank Tax Free Money Market Fund...... $ 793 ------- Total short-term investments (cost $793)..................................... $ 793 ------- Total investments in securities (cost $32,903) (C).............................. $34,481 =======
Note: Percentage of investments as shown is the ratio of the total market value to total net assets. (C) At October 31, 2006, the cost of securities for federal income tax purposes was $32,903 and the aggregate gross unrealized appreciation and depreciation based on that cost were: Unrealized appreciation.......................... $1,582 Unrealized depreciation.......................... (4) ------ Net unrealized appreciation...................... $1,578 ======
(M) The interest rate disclosed for these securities represents the effective yield on the date of acquisition. (W) See Note 2b of accompanying Notes to Financial Statements regarding valuation of securities. AMT -- Alternative Minimum Tax FA -- Finance Authority FGIC -- Financial Guaranty Insurance Company FSA -- Financial Security Assurance GO -- General Obligations IDA -- Industrial Development Authority Bond ISD -- Independent School District MBIA -- Municipal Bond Insurance Association PA -- Port Authority
The accompanying notes are an integral part of these financial statements. 233 THE HARTFORD TAX-FREE NATIONAL FUND SCHEDULE OF INVESTMENTS OCTOBER 31, 2006 (000'S OMITTED) --------------------------------------------------------------------------------
PRINCIPAL MARKET AMOUNT VALUE (W) --------- --------- MUNICIPAL BONDS -- 96.9% ALABAMA -- 1.7% $1,855 Huntsville, AL, GO, 5.25%, 05/01/2022............................... $ 2,019 -------- ALASKA -- 0.8% 1,000 Anchorage, AK, Anchorage Convention Center, 5.00%, 09/01/2034............................... 1,056 -------- ARIZONA -- 4.4% 560 Arizona Sundance Community Fac Dist, 5.13%, 07/15/2030............................... 584 431 Arizona Sundance Community Fac Dist, Special Assess Rev #2, 7.13%, 07/01/2027 (H)........................... 464 1,800 Phoenix, AZ, GO, 6.25%, 07/01/2017............................... 2,184 1,100 Pima County, AZ, Charter Schools Proj, 5.75%, 07/01/2016 (H)........................... 1,123 1,000 Pima County, AZ, Noah Webster Basic School, 5.60%, 12/15/2019............................... 1,045 200 Vistancia, AZ, Community Fac Dist GO, 6.75%, 07/15/2022 (H)........................... 218 -------- 5,618 -------- CALIFORNIA -- 14.4% 1,800 California Educational Fac Auth Rev, 5.00%, 01/01/2025............................... 1,862 990 California Educational Fac Auth Rev, 5.00%, 12/01/2025............................... 1,031 820 California Educational Fac Auth, La Verne University, 5.00%, 06/01/2031............................... 844 1,000 California Educational Fac Auth, University of the Pacific, 5.00%, 11/01/2036............................... 1,040 500 California GO, 6.75%, 08/01/2011............................... 568 1,000 California State Public Works Board, 5.25%, 06/01/2030............................... 1,069 465 California Statewide Community DA, Var-Kaiser-C, 5.25%, 08/01/2031............................... 498 350 California Statewide Community DA, 4.88%, 10/01/2031............................... 353 325 California Statewide Community DA, 4.88%, 10/01/2035............................... 327 750 California Statewide Community DA, Daughters of Charity Health, 5.25%, 07/01/2030............................... 793 260 California Statewide Community DA, 5.00%, 11/01/2029 (Q)........................... 260 250 Capistrano, CA, USD Community Fac Dist Special Tax #90-2 Talega, 5.90%, 09/01/2020............................... 285 625 Indio, CA, Public FA Rev Local Agency, 5.63%, 09/02/2018............................... 649 38 Indio, CA, Public Improvement Act Special Assess #2002-3 GO, 6.35%, 09/02/2027............................... 40
PRINCIPAL MARKET AMOUNT VALUE (W) --------- --------- CALIFORNIA -- (CONTINUED) $ 400 Jurupa, CA, Community Services Dist #6 Special Tax, 5.88%, 09/01/2032............................... $ 409 750 Lathrop, CA, FA Rev Water Supply Proj, 6.00%, 06/01/2035............................... 801 500 Moreno Valley, CA, USD Community Fac Dist Special Tax #2002-1, 6.00%, 09/01/2022............................... 534 700 Oceanside, CA, Community Dev, 5.70%, 09/01/2025............................... 747 835 Orange County, CA, Special Assessment, 5.05%, 09/02/2033............................... 860 535 Palm Springs, CA, Community Redev Agency, 5.50%, 09/01/2023............................... 570 495 Perris, CA, Public FA Local Agency Rev, 6.25%, 09/01/2033............................... 541 1,000 Pomona, CA, Public FA Rev Sub-Merged Redev, 5.50%, 02/01/2023............................... 1,056 320 Sacramento, CA, North Natomas Community Fac, 5.00%, 09/01/2025............................... 325 500 San Diego, CA, Redev Agency Centre City Sub Pkg, 5.25%, 09/01/2026............................... 513 1,800 San Jose, CA, Santa Clara County University, 4.91%, 08/01/2027 (M)........................... 717 1,000 San Manuel, CA, Entertainment Auth Public Improvement, 4.50%, 12/01/2016 (I)........................... 1,011 800 Val Verde, CA, USD FA Special Tax Rev Jr Lien, 6.00%, 10/01/2021............................... 840 -------- 18,543 -------- COLORADO -- 3.9% 600 Black Hawk, CO, Device Tax Revenue, 5.00%, 12/01/2021............................... 608 1,000 Colorado Educational & Cultural Fac Charter School Banning Lewis, 6.13%, 12/15/2035............................... 1,038 1,200 Colorado Health Facilities Authority Adventist Health, 5.25%, 11/15/2035 (Q)........................... 1,275 1,000 Sorrel Ranch, CO, Met Dist Ltd. Tax, 5.75%, 12/01/2036............................... 1,017 1,000 Woodmen Heights Co, Metered Dist #1 Rev, 6.75%, 12/01/2020............................... 1,070 -------- 5,008 -------- CONNECTICUT -- 0.8% 1,000 Mashantucket West Pequot, 5.50%, 09/01/2036 (I)........................... 1,053 -------- FLORIDA -- 5.0% 1,000 Amelia Walk Community Development, 5.50%, 05/01/2037............................... 1,029 965 Bellalgo, FL, Education Fac Benefits Dist Capital Improvement Rev, 5.85%, 05/01/2022............................... 1,002
The accompanying notes are an integral part of these financial statements. 234 --------------------------------------------------------------------------------
PRINCIPAL MARKET AMOUNT VALUE (W) --------- --------- MUNICIPAL BONDS -- (CONTINUED) FLORIDA -- (CONTINUED) $ 485 Colonial Country Club Community Dev Dist, Capital Improvement Rev, 6.40%, 05/01/2033............................... $ 522 1,250 Florida Dept of Environmental Protection Preservation, MBIA, 5.38%, 07/01/2015............................... 1,369 230 Gateway Services, Community Dev Dist, Special Assessment Sun City Center Fort Meyers Proj, 5.50%, 05/01/2010............................... 233 1,500 Highland County, FL, Adventist Hospital, 5.25%, 11/15/2036............................... 1,600 750 Hollywood, FL, Community Redev Agency, 5.13%, 03/01/2014............................... 767 -------- 6,522 -------- GEORGIA -- 4.0% 750 Augusta, GA, Airport Rev Passenger Fac Charge, 5.15%, 01/01/2035............................... 778 1,105 Fulton County, GA, School Dist GO, 5.38%, 01/01/2018............................... 1,262 35 Fulton County, GA, Water & Sewer Rev FGIC, 6.38%, 01/01/2014............................... 39 1,765 Fulton County, GA, Water & Sewer Rev FGIC Part (Prerefunded with State and Local Gov't Securities), 6.38%, 01/01/2014............................... 1,980 15 Georgia Municipal Electric Auth, Power Rev (Prerefunded with U.S. Gov't Securities), 6.50%, 01/01/2017............................... 18 945 Georgia Municipal Electric Auth, Power Rev, 6.50%, 01/01/2017............................... 1,119 40 Georgia Municipal Electric Auth, Power Rev Ser Y, 6.50%, 01/01/2017............................... 47 -------- 5,243 -------- IDAHO -- 0.8% 1,000 Madison County, ID, Hospital Rev, 5.25%, 09/01/2030............................... 1,044 -------- ILLINOIS -- 5.6% 445 Bolingbrook, IL, Sales Tax Rev, 6.42% 01/01/2024 (M)............................ 433 960 Chicago, IL, Board of Education GO MBIA, 5.25%, 12/01/2019............................... 1,032 1,000 Chicago, IL, Tax Increment Allocation Jr Lien Pilsen Redev B, 6.75%, 06/01/2022............................... 1,065 500 Illinois FA, Augustana College Ser A, 5.70%, 10/01/2032............................... 530 1,000 Illinois FA, Illinois Institute of Technology, 5.00%, 04/01/2036............................... 1,034 500 Plano, IL, Lakewood Springs Proj Special Services Area, 6.10%, 03/01/2035............................... 513
PRINCIPAL MARKET AMOUNT VALUE (W) --------- --------- ILLINOIS -- (CONTINUED) $ 500 Round Lake, IL, Special Tax Rev, 6.70%, 03/01/2033............................... $ 541 1,000 Wauconda, IL, Special Service Area #1 Liberty Lakes Proj, 6.63%, 03/01/2033............................... 1,072 975 Yorkville, IL, United City Special Service Area Tax #2003-100 Raintree Village Proj, 6.88%, 03/01/2033 (H)........................... 1,048 -------- 7,268 -------- IOWA -- 0.8% 1,000 Iowa Higher Education, 5.10%, 10/01/2036............................... 1,025 -------- KANSAS -- 2.6% 1,500 Kansas City, KS, Wyandotte County University Special Obligation Rev, 5.00%, 12/01/2020............................... 1,566 260 La Cygne, KS, Kansas City Power & Light, 4.65%, 09/01/2035............................... 266 500 Lawrence, KS, Lawrence Memorial Hospital, 5.13%, 07/01/2036............................... 525 1,000 Salina, KS, Salina Regional Health Hospital Rev, 4.63%, 10/01/2031............................... 1,013 -------- 3,370 -------- KENTUCKY -- 0.1% 150 Boone County, KY, Pollution Control Dayton Power & Light, 4.70%, 01/01/2028............................... 155 -------- LOUISIANA -- 0.4% 500 Louisiana Public FA Rev, Ochsner Clinic Foundation Proj, 5.50%, 05/15/2027............................... 533 -------- MARYLAND -- 0.9% 1,000 Maryland Economic Dev Corp Student Housing Rev University of Maryland College Park Proj, 6.50%, 06/01/2027............................... 1,164 -------- MASSACHUSETTS -- 0.8% 60 Massachusetts, GO Consolidated Loan FSA (Prerefunded with U.S. Gov't Securities), 5.25%, 03/01/2021............................... 65 940 Massachusetts, GO Consolidated Loan, 5.25%, 03/01/2021............................... 1,014 -------- 1,079 -------- MICHIGAN -- 3.9% 500 Detroit, MI, GO MBIA, 5.50%, 04/01/2020............................... 540 1,750 Detroit, MI, Water Supply Sys Ref Rev FGIC, 6.50%, 07/01/2015............................... 2,096 1,000 Macomb County, MI, Hospital FA Rev Mt Clemens Gen Hospital, 5.75%, 11/15/2025............................... 1,049
The accompanying notes are an integral part of these financial statements. 235 THE HARTFORD TAX-FREE NATIONAL FUND SCHEDULE OF INVESTMENTS -- (CONTINUED) OCTOBER 31, 2006 (000'S OMITTED) --------------------------------------------------------------------------------
PRINCIPAL MARKET AMOUNT VALUE (W) --------- --------- MUNICIPAL BONDS -- (CONTINUED) MICHIGAN -- (CONTINUED) $ 500 Michigan Hospital FA, Rev Ref Henry Ford Health Sys, 5.63%, 03/01/2017............................... $ 555 750 Michigan Strategic Fund Ltd, Rev Ref Dow Chemical Proj AMT, 5.50%, 12/01/2028............................... 813 -------- 5,053 -------- MINNESOTA -- 5.1% 250 Duluth, MN, Seaway PA IDA Dock & Wharf Rev Ref Cargill Inc. Proj, 4.20%, 05/01/2013............................... 251 175 Inver Grove Heights, MN, Ref-Presbyterian Homes Care, 5.50%, 10/01/2033............................... 177 750 Minneapolis, MN, Health Care System AllinaHealth, 6.00%, 11/15/2018............................... 832 790 Minnesota Residential Housing Fin Agency, 5.00%, 01/01/2020............................... 808 1,150 Minnesota, Intermediate School District Minnlease Rev, 5.30%, 11/01/2032............................... 1,173 500 Ramsey County, MN, Lease Rev Pact Charter School Proj, 6.50%, 12/01/2022............................... 530 665 St Paul, MN, Housing & Redev Auth Hospital Rev, 6.00%, 11/15/2025............................... 735 500 St Paul, MN, Redev Auth Rev Ref Achieve Language Academy, 6.75%, 12/01/2022............................... 515 740 St. Paul, MN, Housing & Redev Auth, Hmong Academy Proj, 6.00%, 09/01/2036............................... 747 860 St. Paul, MN, Housing & Redev Auth, Lease Rev, 6.00%, 12/01/2018............................... 872 -------- 6,640 -------- MISSISSIPPI -- 1.2% 250 Lowndes County, MS, Solid Waste Disposal & Pollution Control Rev Ref, Weyerhaeuser Co Proj, 6.80%, 04/01/2022............................... 307 1,250 Warren County, MS, 4.80%, 08/01/2030............................... 1,260 -------- 1,567 -------- MISSOURI -- 0.4% 500 Branson, MO, State Dev Fin Board Infrastructure, 5.50%, 12/01/2032............................... 527 --------
PRINCIPAL MARKET AMOUNT VALUE (W) --------- --------- NEVADA -- 1.7% $1,000 Clark County, NV, Improvement Dist #142, 6.38%, 08/01/2023............................... $ 1,036 1,115 North Las Vegas, NV, Local Improvement, 5.10%, 12/01/2022............................... 1,149 -------- 2,185 -------- NEW HAMPSHIRE -- 1.4% 750 New Hampshire Health & Educational FA, Elliot Hospital, 5.60%, 10/01/2022............................... 812 1,000 New Hampshire Health & Education Facilities, 5.25%, 06/01/2036............................... 1,020 -------- 1,832 -------- NEW JERSEY -- 5.4% 1,250 Middlesex County, NJ, Improvement Auth Street Student Housing Proj, 5.00%, 08/15/2018............................... 1,310 275 New Jersey Educational FA, Fairleigh Dickinson University, 6.00%, 07/01/2025............................... 301 500 New Jersey Educational FA, Georgian Court College, 6.50%, 07/01/2033............................... 560 750 New Jersey Educational FA, Stevens Institute of Technology, 5.13%, 07/01/2022............................... 785 800 New Jersey, Economic DA Rev Cigarette Tax, 5.63%, 06/15/2019............................... 841 1,000 New Jersey Health Care Facilities FA, 5.00%, 07/01/2036 (Q)........................... 1,040 1,950 New Jersey Tobacco Settlement Financing Corp, 6.13%, 06/01/2024............................... 2,116 -------- 6,953 -------- NEW MEXICO -- 0.5% 665 Cabezon, NM, Public Improvement District, 5.20%, 09/01/2015............................... 677 -------- NEW YORK -- 6.1% 950 Brookhaven New York Municipal Bond, 4.25%, 11/01/2037............................... 950 575 Cattaraugus County, NY, 5.10%, 05/01/2031............................... 593 250 Dutchess County, NY, IDA Civic Fac Rev Ref Marist College, 5.00%, 07/01/2022............................... 262 550 Erie County, NY, IDA Charter School Applied Tech Proj-A, 6.75%, 06/01/2025............................... 555 1,000 Liberty, NY, Corp Dev Goldman Sachs Headquarters, 5.25%, 10/01/2035............................... 1,161 800 New York Dorm Auth, Methodist Hospital, 5.25%, 07/01/2019............................... 856 75 New York, NY, GO, 5.75%, 03/01/2019............................... 83
The accompanying notes are an integral part of these financial statements. 236 --------------------------------------------------------------------------------
PRINCIPAL MARKET AMOUNT VALUE (W) --------- --------- MUNICIPAL BONDS -- (CONTINUED) NEW YORK -- (CONTINUED) $1,000 New York, NY, IDA Terminal One Group Assoc Project, 5.50%, 01/01/2024............................... $ 1,084 300 Saratoga, NY, IDA Saratoga Hospital Proj, 5.00%, 12/01/2013............................... 315 1,000 Suffolk County, NY, Jeffersons Ferry Proj, 5.00%, 11/01/2028............................... 1,028 620 Utica, NY, IDA Civic Fac Rev Utica College, 6.88%, 12/01/2014............................... 668 400 Westchester County, NY, IDA Continuing Care Retirement Kendal on Hudson Proj, 6.38%, 01/01/2024............................... 425 -------- 7,980 -------- NORTH CAROLINA -- 0.8% 500 North Carolina Eastern Municipal Power Agency, Power Sys Rev Ref, 5.38%, 01/01/2017............................... 534 500 North Carolina Municipal Power Agency, Catawba Elec Rev, 5.50%, 01/01/2014............................... 542 -------- 1,076 -------- NORTH DAKOTA -- 0.4% 510 Williams County, ND, Sales Tax Rev, 5.00%, 11/01/2031............................... 522 -------- OHIO -- 1.4% 300 Cuyahoga County, OH, Rev Ref Class A, 5.50%, 01/01/2029............................... 323 1,270 Hamilton, OH, School Dist Improvement, 6.15%, 12/01/2016............................... 1,516 -------- 1,839 -------- OTHER U.S. TERRITORIES -- 1.5% 1,000 Puerto Rico Commonwealth, Ref GO, 5.00%, 07/01/2030............................... 1,054 110 University Virgin Islands, 5.00%, 12/01/2021............................... 114 750 Virgin Islands Public FA, Revhovenska Refinery, 6.13%, 07/01/2022............................... 826 -------- 1,994 -------- PENNSYLVANIA -- 2.7% 545 Carbon County, PA, IDA Res Recovery Panther Creek Partners Proj AMT, 6.65%, 05/01/2010............................... 569 1,000 Lehigh County, PA, Saint Lukes Bethlehem Hospital, 5.38%, 08/15/2033............................... 1,055 800 Montgomery County, PA, IDA Whitemarsh Continuing Care Proj, 6.13%, 02/01/2028............................... 851 1,000 Pennsylvania Higher Education FA, Widener University, 5.25%, 07/15/2024............................... 1,054 -------- 3,529 --------
PRINCIPAL MARKET AMOUNT VALUE (W) --------- --------- RHODE ISLAND -- 5.9% $1,000 Central Falls, RI, Detention FA Fac Rev, 6.75%, 01/15/2013............................... $ 1,053 250 Rhode Island, Health & Education Bldg Corp, 6.50%, 08/15/2032............................... 287 1,000 Rhode Island, Higher Education Fac Rev, Roger Williams University 5.00%, 11/15/2036............................... 1,049 5,000 Rhode Island Tobacco Settlement Funding Corp, 6.00%, 06/01/2023............................... 5,319 -------- 7,708 -------- SOUTH CAROLINA -- 1.4% 1,000 Dorchester County, SC, School Dist #2 Installment Purchase Rev, Growth Remedy Opportunity Hike, 5.25%, 12/01/2024............................... 1,066 750 Lancaster County, SC, Sun City Carolina Lakes Improvement, 5.45%, 12/01/2037............................... 766 -------- 1,832 -------- TENNESSEE -- 2.0% 2,000 Johnson City, TN, Health & Educational Fac Board Hospital Rev, 5.50%, 07/01/2036............................... 2,150 500 McMinn County, TN, IDA PCR Calhoun Newsprint Co Proj, 7.63%, 03/01/2016............................... 503 -------- 2,653 -------- TEXAS -- 2.8% 1,000 Brazos River Authority, Pollution Control Rev, 5.00%, 03/01/2041............................... 1,005 1,000 Matagorda County, TX, Navigation Dist #1 Rev Ref Centerpoint Energy Proj, 5.60%, 03/01/2027............................... 1,062 500 Sam Rayburn Municipal Power Agency, Rev Ref, 5.50%, 10/01/2010............................... 525 1,000 Willacy County, TX, GO, 6.00%, 03/01/2009............................... 1,019 -------- 3,611 -------- VERMONT -- 0.4% 500 Vermont Economic DA, GO, 5.38%, 05/01/2036............................... 512 -------- VIRGINIA -- 3.2% 500 Norfolk, VA, Redev & Housing Auth, First Mort Retirement Community, 6.00%, 01/01/2025............................... 519 1,000 Peninsula, VA, Port Auth Fac, CSX Transport Proj Rev Ref, 6.00%, 12/15/2012............................... 1,092
The accompanying notes are an integral part of these financial statements. 237 THE HARTFORD TAX-FREE NATIONAL FUND SCHEDULE OF INVESTMENTS -- (CONTINUED) OCTOBER 31, 2006 (000'S OMITTED) --------------------------------------------------------------------------------
PRINCIPAL MARKET AMOUNT VALUE (W) --------- --------- MUNICIPAL BONDS -- (CONTINUED) VIRGINIA -- (CONTINUED) $1,000 Virginia College Bldg Auth, Education Fac Rev Regent University Proj, 5.00%, 06/01/2036............................... $ 1,035 1,455 Virginia Tobacco Settlement Funding Corp, 5.50%, 06/01/2026............................... 1,550 -------- 4,196 -------- WASHINGTON -- 0.5% 670 King County, WA, ISD #210 GO, 5.00%, 06/01/2019............................... 707 -------- WISCONSIN -- 1.2% 1,000 Upland Hills, WI, State Health & Educational Fac Auth Rev, 5.13%, 05/15/2029............................... 1,044 470 Wisconsin Housing & Economic Dev Auth, GO Home Ownership Rev, 4.85%, 09/01/2017............................... 488 -------- 1,532 -------- Total municipal bonds (cost $119,512)................................. $125,825 -------- SHARES --------- SHORT-TERM INVESTMENTS -- 3.3% FINANCE -- 3.3% 4,230 State Street Bank Tax Free Money Market Fund...... $ 4,230 -------- Total short-term investments (cost $4,230)................................... $ 4,230 -------- Total investments in securities (cost $123,742) (C)............................. $130,055 ========
Note: Percentage of investments as shown is the ratio of the total market value to total net assets. (C) At October 31, 2006, the cost of securities for federal income tax purposes was $123,742 and the aggregate gross unrealized appreciation and depreciation based on that cost were: Unrealized appreciation.......................... $6,313 Unrealized depreciation.......................... -- ------ Net unrealized appreciation...................... $6,313 ======
(H) The following securities are considered illiquid. Illiquid securities are often purchased in private placement transactions, are not registered under the Securities Act of 1933 and may have contractual restrictions on resale. A security may also be considered illiquid if the security lacks a readily available market or if its valuation has not changed for a certain period of time.
PERIOD ACQUIRED PAR SECURITY COST BASIS -------- --- -------- ---------- October, 2006 $ 560 Arizona Comm Fac Dist, $562 Special Assess Rev #2 7.13%, 07/01/2027 - 144A April, 2004 1,100 Pima County, AZ GO, 990 5.75%, 07/01/2016 December, 2002 200 Vistancia, AZ 200 Comm Fac Dist GO, 6.75%, 07/15/2022 August, 2003 975 Yorkville, IL, United City 975 Special Service Area Tax #2003 - 100 Raintree Village Project 6.88%, 03/01/2033
The aggregate value of these securities at October 31, 2006 was $2,853, which represents 2.20% of total net assets. (I) 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 qualified institutional buyers. 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, 2006, was $2,064, which represents 1.59% of total net assets. (M) The interest rate disclosed for these securities represents the effective yield on the date of acquisition. (Q) The cost of securities purchased on a when-issued or delayed delivery basis at October 31, 2006 was $2,541. (W) See Note 2b of accompanying Notes to Financial Statements regarding valuation of securities. AMT -- Alternative Minimum Tax DA -- Development Authority FA -- Finance Authority FGIC -- Financial Guaranty Insurance Company FSA -- Financial Security Assurance GO -- General Obligations IDA -- Industrial Development Authority Bond ISD -- Independent School District MBIA -- Municipal Bond Insurance Association PA -- Port Authority PCR -- Pollution Control Revenue Bond USD -- United School District
The accompanying notes are an integral part of these financial statements. 238 THE HARTFORD TAX-FREE NEW YORK FUND SCHEDULE OF INVESTMENTS OCTOBER 31, 2006 (000'S OMITTED) --------------------------------------------------------------------------------
PRINCIPAL MARKET AMOUNT VALUE (W) --------- --------- MUNICIPAL BONDS -- 95.3% AIRPORT REVENUES -- 2.4% $ 200 Monroe County, NY, Airport Auth Rev Ref, Greater Rochester International, 5.25%, 01/01/2014............................... $ 214 150 New York, NY, IDA Terminal One Group Assoc Proj, 5.50%, 01/01/2024............................... 163 ------- 377 ------- GENERAL OBLIGATIONS -- 7.9% 390 New York, NY, GO (Prerefunded with U.S. Gov't Securities), 5.75%, 03/01/2019............................... 437 450 New York, NY, GO, 5.00%, 03/01/2030............................... 473 35 New York, NY, GO, 5.75%, 03/01/2019............................... 39 250 Puerto Rico Commonwealth, Ref GO, 5.00%, 07/01/2030............................... 264 ------- 1,213 ------- HEALTH CARE/SERVICES -- 9.0% 125 Chemung County, NY, IDA Civic Fac Rev Arnot Ogden Medical Center, 5.00%, 11/01/2034............................... 129 150 Long Island Jewish-Nursing Home, 5.00%, 11/01/2034............................... 157 5 New York Dorm Auth, Mental Health Services Fac, 5.00%, 02/15/2018............................... 5 200 New York Dorm Auth, Methodist Hospital, 5.25%, 07/01/2019............................... 214 400 New York Dorm Auth, Rochester General Hospital, 5.00%, 12/01/2025............................... 424 150 New York Dorm Auth, NYU Hospitals Center, 5.00%, 07/01/2026............................... 153 200 Saratoga, NY, IDA Saratoga Hospital Proj, 5.00%, 12/01/2014............................... 211 100 Westchester County, NY, IDA Continuing Care Retirement Mtg-Kendal on Hudson Project, 6.38%, 01/01/2024............................... 106 ------- 1,399 ------- HIGHER EDUCATION (UNIV., DORMS, ETC.) -- 27.5% 250 Dutchess County, NY, IDA Civic Fac Rev Ref Marist College, 5.00%, 07/01/2022............................... 262 250 Erie County, NY, IDA Charter School Applied Tech Proj-A, 6.75%, 06/01/2025............................... 252 250 New York Dorm Auth, Brooklyn Law School, 5.50%, 07/01/2019............................... 272 425 New York Dorm Auth, Court Fac, 5.50%, 05/15/2020............................... 472
PRINCIPAL MARKET AMOUNT VALUE (W) --------- --------- HIGHER EDUCATION -- (CONTINUED) $ 80 New York Dorm Auth, Fordham University FGIC, 5.00%, 07/01/2020............................... $ 85 400 New York Dorm Auth, Mount St Mary College, 5.00%, 07/01/2027............................... 420 135 New York Dorm Auth, Rochester University, 5.25%, 07/01/2022............................... 146 450 New York Dorm Auth, St Barnabas FHA, 5.13%, 02/01/2022............................... 478 450 New York Dorm Auth, State University Dorm Fac, 5.00%, 07/01/2032............................... 483 250 New York Dorm Auth, Upstate Community College, 5.25%, 07/01/2021............................... 271 200 New York Dorm Auth, Winthrop South Nassau University, 5.50%, 07/01/2023............................... 211 200 Otsego County, NY, IDA Civic Fac Rev Hartwick College Proj, 6.00%, 07/01/2011............................... 211 450 St. Lawrence, NY, IDA Civic Fac Rev Clarkson University Proj, 5.00%, 07/01/2023............................... 468 110 University Virgin Islands, 5.00%, 12/01/2021............................... 114 100 Utica, NY, IDA Civic Fac Rev Utica College, 6.88%, 12/01/2014............................... 108 ------- 4,253 ------- HOUSING (HFA'S, ETC.) -- 3.5% 150 Brookhaven, NY, 4.25%, 11/01/2037............................... 150 175 Cattaraugus County, NY, 5.10%, 05/01/2031............................... 180 200 Grand Central, NY, Dist Management Assoc Inc Ref Capital Business Improvement, 5.00%, 01/01/2022............................... 211 ------- 541 ------- INDUSTRIAL -- 4.8% 45 Albany, NY, IDA New Covenant Charter School, 5.00%, 05/01/2007............................... 45 200 Liberty, NY, Corp Dev Goldman Sachs Headquarters, 5.25%, 10/01/2035............................... 232 250 New York, NY, IDA Civic Fac Rev YMCA of Greater NY Proj, 5.25%, 08/01/2021............................... 260 200 Rensselaer County, NY, Industrial Improvement, 5.00%, 01/01/2036............................... 211 ------- 748 -------
The accompanying notes are an integral part of these financial statements. 239 THE HARTFORD TAX-FREE NEW YORK FUND SCHEDULE OF INVESTMENTS -- (CONTINUED) OCTOBER 31, 2006 (000'S OMITTED) --------------------------------------------------------------------------------
PRINCIPAL MARKET AMOUNT VALUE (W) --------- --------- MUNICIPAL BONDS -- (CONTINUED) MISCELLANEOUS -- 17.6% $1,000 Nassau County, NY, Tobacco Settlement Corp, 5.00%, 06/01/2035............................... $ 1,019 450 New York, NY, Transitional FA Future Tax Secured, 5.00%, 08/01/2023............................... 474 400 Tobacco Settlement FA of NY, 5.50%, 06/01/2022............................... 437 500 TSACS, Inc., 5.13%, 06/01/2042............................... 513 250 Virgin Islands Public FA, Revhovenska Refinery, 6.13%, 07/01/2022............................... 275 ------- 2,718 ------- POLLUTION CONTROL -- 4.0% 450 New York Environmental Fac Corp., 5.00%, 07/15/2026............................... 474 150 Onondaga County, NY, Indl Dev Agy Pollution Ctl Rev, 4.88%, 07/01/2041............................... 153 ------- 627 ------- PUBLIC FACILITIES -- 7.5% 500 Niagara Falls, NY, School District Certificate Participation, 5.00%, 06/15/2028............................... 530 600 Rensselaer, NY, City School Dist, 5.00%, 06/01/2036............................... 636 ------- 1,166 ------- TRANSPORTATION -- 6.4% 450 New York Metropolitan Transportation Auth, 5.13%, 11/15/2031............................... 475 500 Suffolk County, NY, Jeffersons Ferry Proj, 5.00%, 11/01/2028............................... 514 ------- 989 ------- UTILITIES -- ELECTRIC -- 1.7% 250 New York Energy Research & DA, Elec Fac Rev Adj Long Island Lighting Co Proj, 5.30%, 08/01/2025............................... 260 -------
PRINCIPAL MARKET AMOUNT VALUE (W) --------- --------- UTILITIES -- WATER AND SEWER -- 3.0% $ 450 Jefferson County, NY, IDA Waste Disposal, 5.20%, 12/01/2020............................... $ 463 ------- Total municipal bonds (cost $14,158).................................. $14,754 ------- SHARES SHORT-TERM INVESTMENTS -- 0.9% FINANCE -- 0.9% 141 Dreyfus Basic New York Municipal Money Market Fund............................................ $ 141 ------- Total short-term investments (cost $141)..................................... $ 141 ------- Total investments in securities (cost $14,299) (C).............................. $14,895 =======
Note: Percentage of investments as shown is the ratio of the total market value to total net assets. (C) At October 31, 2006, the cost of securities for federal income tax purposes was $14,299 and the aggregate gross unrealized appreciation and depreciation based on that cost were: Unrealized appreciation............................ $599 Unrealized depreciation............................ (3) ---- Net unrealized appreciation........................ $596 ====
(W) See Note 2b of accompanying Notes to Financial Statements regarding valuation of securities. DA -- Development Authority FA -- Finance Authority FGIC -- Financial Guaranty Insurance Company GO -- General Obligations IDA -- Industrial Development Authority Bond
The accompanying notes are an integral part of these financial statements. 240 THE HARTFORD TOTAL RETURN BOND FUND SCHEDULE OF INVESTMENTS OCTOBER 31, 2006 (000'S OMITTED) --------------------------------------------------------------------------------
PRINCIPAL MARKET AMOUNT VALUE (W) ----------- ---------- MUNICIPAL BONDS -- 0.1% GENERAL OBLIGATIONS -- 0.1% $ 1,250 Oregon School Boards Association, Taxable Pension, 4.76%, 06/30/2028............................... $ 1,152 ---------- Total municipal bonds (cost $1,250)................................... $ 1,152 ---------- ASSET & COMMERCIAL MORTGAGE BACKED SECURITIES -- 15.6% FINANCE -- 15.3% $ 2,050 ACT Depositor Corp., 5.48%, 09/22/2041 (I)(L)........................ $ 1,980 1,672 AmeriCredit Automobile Receivables Trust, 5.20%, 03/06/2011............................... 1,672 47,215 Banc of America Commercial Mortgage, Inc., 4.08%, 12/10/2042 (P)........................... 890 20,280 Banc of America Commercial Mortgage, Inc., 4.52%, 09/11/2036 (I)(P)........................ 730 2,840 Banc of America Commercial Mortgage, Inc., 5.32%, 10/10/2011............................... 2,857 2,700 Banc of America Commercial Mortgage, Inc., 5.52%, 07/10/2046 (L)........................... 2,739 3,990 Banc of America Commercial Mortgage, Inc., 5.82%, 07/10/2044............................... 4,164 1,230 Banc of America Securities Auto Trust, 4.49%, 02/18/2013............................... 1,212 800 Bank One Issuance Trust, 4.77%, 02/16/2016............................... 771 12,843 Bear Stearns Commercial Mortgage Securities, Inc., 4.07%, 07/11/2042 (P)........................... 441 11,016 Bear Stearns Commercial Mortgage Securities, Inc., 4.12%, 11/11/2041 (P)........................... 297 23,907 Bear Stearns Commercial Mortgage Securities, Inc., 5.50%, 02/11/2041 (I)(P)........................ 403 3,360 Bear Stearns Commercial Mortgage Securities, Inc., 5.58%, 09/11/2041............................... 3,421 625 Capital Auto Receivables Asset Trust, 5.77%, 05/20/2010 (I)........................... 628 800 Capital Auto Receivables Asset Trust, 6.15%, 04/20/2011 (I)........................... 803 1,150 Capital One Auto Finance Trust, 4.32%, 05/15/2010............................... 1,136 13,785 CBA Commercial Small Balance Commercial Mortgage, 7.00%, 07/25/2035 (I)(P)........................ 676
PRINCIPAL MARKET AMOUNT VALUE (W) ----------- ---------- FINANCE -- (CONTINUED) $ 10,261 CBA Commercial Small Balance Commercial Mortgage, 7.00%, 06/25/2038 (I)(P)........................ $ 674 2,290 Citibank Credit Card Issuance Trust, 5.70%, 05/15/2013............................... 2,311 620 Citibank Credit Card Issuance Trust, 6.95%, 02/18/2014............................... 663 3,130 Citigroup Commercial Mortgage Trust, 5.25%, 04/15/2040............................... 3,139 4,000 Citigroup Commercial Mortgage Trust, 5.91%, 03/15/2049 (L)........................... 4,139 1,300 CNH Equipment Trust, 4.02%, 04/15/2009............................... 1,289 570 Connecticut RRB Special Purpose Trust CL&P, 6.21%, 12/30/2011............................... 590 178 Conseco Finance Securitizations Corp., 5.79%, 05/01/2033............................... 178 299 Countrywide Asset-Backed Certificates, 5.46%, 07/25/2035............................... 296 3,420 Credit Suisse Mortgage Capital Certificates -- Class A3, 6.02%, 06/15/2038 (L)........................... 3,569 1,663 Credit Suisse Mortgage Capital Certificates -- Class AM, 6.02%, 06/15/2038 (L)........................... 1,734 341 CS First Boston Mortgage Securities Corp., 2.08%, 05/15/2038............................... 332 40,963 CS First Boston Mortgage Securities Corp., 4.39%, 07/15/2037 (I)(P)........................ 1,117 418 CS First Boston Mortgage Securities Corp., 4.51%, 07/15/2037............................... 410 2,700 CS First Boston Mortgage Securities Corp., 4.69%, 04/15/2037............................... 2,640 2,600 DB Master Finance LLC, 5.78%, 06/20/2031 (I)........................... 2,644 70,663 GE Business Loan Trust, 6.14%, 05/15/2034 (I)(P)........................ 883 2,053 GE Business Loan Trust, 6.32%, 05/15/2034 (I)(L)........................ 2,053 12,285 GMAC Commercial Mortgage Securities, Inc., 4.10%, 12/10/2041 (P)........................... 274 2,535 GMAC Commercial Mortgage Securities, Inc., 5.24%, 11/10/2045 (L)........................... 2,525 2,660 GMAC Mortgage Corp. Loan Trust, 5.75%, 10/25/2036............................... 2,666 29,253 Goldman Sachs Mortgage Securities Corp. II, 4.38%, 08/10/2038 (I)(P)........................ 316
The accompanying notes are an integral part of these financial statements. 241 THE HARTFORD TOTAL RETURN BOND FUND SCHEDULE OF INVESTMENTS -- (CONTINUED) OCTOBER 31, 2006 (000'S OMITTED) --------------------------------------------------------------------------------
PRINCIPAL MARKET AMOUNT VALUE (W) ----------- ---------- ASSET & COMMERCIAL MORTGAGE BACKED SECURITIES -- (CONTINUED) FINANCE -- (CONTINUED) $ 11 Green Tree Financial Corp., 6.27%, 06/01/2030............................... $ 11 314 Green Tree Financial Corp., 7.24%, 06/15/2028............................... 329 3,250 Greenwich Capital Commercial Funding Corp., 5.12%, 04/10/2037 (L)........................... 3,249 1,975 Greenwich Capital Commercial Funding Corp., 5.91%, 07/10/2038............................... 2,074 551 Home Equity Asset Trust, 4.75%, 06/27/2035 (I)........................... 544 2,462 Hyundai Auto Receivables Trust, 5.19%, 05/15/2013............................... 2,462 620 Hyundai Auto Receivables Trust, 5.29%, 11/15/2012............................... 621 23,211 JP Morgan Chase Commercial Mortgage Securities Corp., 3.68%, 01/15/2038 (I)(P)........................ 718 55,221 JP Morgan Chase Commercial Mortgage Securities Corp., 4.07%, 01/15/2042 (P)........................... 814 100,449 JP Morgan Chase Commercial Mortgage Securities Corp., 4.82%, 08/12/2037 (P)........................... 414 1,900 JP Morgan Chase Commercial Mortgage Securities Corp., 4.87%, 03/15/2046............................... 1,868 94,635 JP Morgan Chase Commercial Mortgage Securities Corp., 5.42%, 05/12/2045 (P)........................... 2,481 800 JP Morgan Chase Commercial Mortgage Securities Corp., 5.44%, 12/12/2044............................... 808 2,950 JP Morgan Chase Commercial Mortgage Securities Corp., 5.44%, 05/15/2045 (L)........................... 2,970 49,686 LB-UBS Commercial Mortgage Trust, 1.32%, 03/15/2036 (I)(P)........................ 1,610 1,070 LB-UBS Commercial Mortgage Trust, 2.72%, 03/15/2027............................... 1,044 3,950 LB-UBS Commercial Mortgage Trust, 5.22%, 02/15/2031 (L)........................... 3,921 25,441 LB-UBS Commercial Mortgage Trust, 5.26%, 10/15/2039 (P)........................... 888 2,950 LB-UBS Commercial Mortgage Trust, 5.41%, 10/15/2039 (L)........................... 2,966 1,144 Lehman Brothers Small Balance Commercial, 5.52%, 09/25/2030............................... 1,143 1,100 Lehman Brothers Small Balance Commercial, 5.62%, 09/25/2036 (I)........................... 1,100
PRINCIPAL MARKET AMOUNT VALUE (W) ----------- ---------- FINANCE -- (CONTINUED) $ 2,130 Marlin Leasing Receivables LLC, 5.33%, 09/16/2013............................... $ 2,136 1,460 MBNA Credit Card Master Note Trust, 4.10%, 10/15/2012............................... 1,420 1,025 MBNA Credit Card Master Note Trust, 4.30%, 02/15/2011............................... 1,013 2,400 MBNA Credit Card Master Note Trust, 4.50%, 01/15/2013............................... 2,364 950 MBNA Credit Card Master Note Trust, 6.70%, 03/16/2015............................... 1,020 417 Merrill Lynch Mortgage Trust, 4.56%, 06/12/2043............................... 409 43,133 Merrill Lynch Mortgage Trust, 4.57%, 06/12/2043 (P)........................... 1,152 22,977 Merrill Lynch/Countrywide Commercial Mortgage Trust, 5.27%, 07/12/2046 (P)........................... 886 2,950 Merrill Lynch/Countrywide Commercial Mortgage Trust, 5.46%, 07/12/2046 (L)........................... 2,970 2,040 Merrill Lynch/Countrywide Commercial Mortgage Trust, 5.91%, 06/12/2046............................... 2,140 461 Morgan Stanley Auto Loan Trust, 5.00%, 03/15/2012 (I)........................... 458 686 Morgan Stanley Capital I, 7.64%, 04/30/2039 (I)(L)........................ 685 12,535 Morgan Stanley Dean Witter Capital I, 0.46%, 08/25/2032 (H)(P)........................ -- 5,557 Morgan Stanley Dean Witter Capital I, 8.05%, 08/25/2032 (H)(P)........................ 68 1,225 Navistar Financial Corp. Owner Trust, 3.53%, 10/15/2012............................... 1,189 650 Popular ABS Mortgage Pass-Through Trust, 4.75%, 12/25/2034............................... 627 540 Popular ABS Mortgage Pass-Through Trust, 5.42%, 04/25/2035............................... 532 1,125 Providian Gateway Master Trust, 3.35%, 09/15/2011 (I)........................... 1,105 1,430 Providian Master Note Trust, 5.87%, 03/15/2015 (L)........................... 1,430 1,750 PSE&G Transition Funding LLC, 6.45%, 03/15/2013............................... 1,838 800 Renaissance Home Equity Loan Trust, 5.36%, 05/25/2035............................... 788 1,260 Renaissance Home Equity Loan Trust, 5.75%, 05/25/2036 (L)........................... 1,275 550 Residential Asset Mortgage Products, Inc., 4.98%, 08/25/2034............................... 543 102 Soundview Home Equity Loan Trust, 8.64%, 05/25/2030............................... 102 2,075 Wachovia Auto Loan Owner Trust, 5.15%, 07/20/2012 (I)........................... 2,078
The accompanying notes are an integral part of these financial statements. 242 --------------------------------------------------------------------------------
PRINCIPAL MARKET AMOUNT VALUE (W) ----------- ---------- ASSET & COMMERCIAL MORTGAGE BACKED SECURITIES -- (CONTINUED) FINANCE -- (CONTINUED) $ 2,150 Wachovia Auto Loan Owner Trust, 5.29%, 06/20/2012 (I)........................... $ 2,162 9,666 Wachovia Bank Commercial Mortgage Trust, 3.65%, 02/15/2041 (I)(P)........................ 286 42,959 Wachovia Bank Commercial Mortgage Trust, 4.48%, 05/15/2044 (I)(P)........................ 1,117 417 Wachovia Bank Commercial Mortgage Trust, 4.52%, 05/15/2044............................... 409 1,375 Wachovia Bank Commercial Mortgage Trust, 4.72%, 01/15/2041............................... 1,353 2,650 Wachovia Bank Commercial Mortgage Trust, 5.42%, 01/15/2045............................... 2,674 2,500 Wachovia Bank Commercial Mortgage Trust, 5.42%, 01/15/2045 (L)........................... 2,518 2,950 Wachovia Bank Commercial Mortgage Trust, 5.96%, 05/15/2043 (L)........................... 3,060 ---------- 133,104 ---------- TRANSPORTATION -- 0.2% 1,075 Continental Airlines, Inc., 6.70%, 06/15/2021............................... 1,091 826 Continental Airlines, Inc., 8.05%, 11/01/2020............................... 903 ---------- 1,994 ---------- UTILITIES -- 0.1% 760 Pacific Gas & Electric Energy Recovery Funding LLC, 3.87%, 06/25/2011............................... 748 ---------- Total asset & commercial mortgage backed securities (cost $135,705)................................. $ 135,846 ---------- CORPORATE BONDS: INVESTMENT GRADE -- 20.8% BASIC MATERIALS -- 0.7% $ 491 Fortune Brands, Inc., 5.13%, 01/15/2011 (G)........................... $ 482 1,550 Teck Cominco Ltd., 5.38%, 10/01/2015 (G)........................... 1,514 1,250 Teck Cominco Ltd., 6.13%, 10/01/2035............................... 1,219 2,055 Vale Overseas Ltd., 6.25%, 01/11/2016............................... 2,068 1,000 Westvaco Corp., 7.95%, 02/15/2031 (G)........................... 1,101 ---------- 6,384 ----------
PRINCIPAL MARKET AMOUNT VALUE (W) ----------- ---------- CONSUMER CYCLICAL -- 0.2% $ 710 Foster's Finance Corp., 4.88%, 10/01/2014 (I)........................... $ 669 1,095 K. Hovnanian Enterprises, 6.00%, 01/15/2010............................... 1,040 ---------- 1,709 ---------- CONSUMER STAPLES -- 0.9% 3,582 Diageo Capital plc, 5.88%, 09/30/2036............................... 3,505 2,237 Diageo Finance B.V., 5.50%, 04/01/2013............................... 2,247 1,865 SABMiller plc, 6.20%, 07/01/2011 (I)........................... 1,916 550 Weyerhaeuser Co., 8.50%, 01/15/2025............................... 619 ---------- 8,287 ---------- ENERGY -- 2.0% 1,870 Amerada Hess Corp., 7.13%, 03/15/2033............................... 2,083 2,240 Anadarko Petroleum Corp., 5.95%, 09/15/2016............................... 2,275 400 Consumers Energy Co., 5.15%, 02/15/2017............................... 383 1,095 Consumers Energy Co., 5.38%, 04/15/2013 (G)........................... 1,086 1,270 Energy Transfer Partners L.P., 6.13%, 02/15/2017............................... 1,290 1,215 Enterprise Products Operating L.P., 4.63%, 10/15/2009............................... 1,190 1,150 Nexen, Inc., 7.88%, 03/15/2032............................... 1,374 1,610 Petro-Canada, 5.95%, 05/15/2035............................... 1,552 467 Ras Laffan Liquefied Natural Gas Co., Ltd., 3.44%, 09/15/2009 (I)........................... 454 3,690 Ras Laffan Liquefied Natural Gas Co., Ltd., 5.30%, 09/30/2020 (I)........................... 3,561 710 Sempra Energy, 6.00%, 02/01/2013............................... 728 1,490 TNK-BP Finance S.A., 7.50%, 07/18/2016 (I)........................... 1,559 ---------- 17,535 ---------- FINANCE -- 9.5% 1,385 Aegon Funding Corp., 5.75%, 12/15/2020............................... 1,407 1,400 AES El Salvador Trust, 6.75%, 02/01/2016 (I)........................... 1,390 2,708 Aetna, Inc., 5.75%, 06/15/2011............................... 2,756 3,450 Aetna, Inc., 6.63%, 06/15/2036............................... 3,717 6,058 American Express Credit Corp., 6.80%, 09/01/2066 (G)........................... 6,442
The accompanying notes are an integral part of these financial statements. 243 THE HARTFORD TOTAL RETURN BOND FUND SCHEDULE OF INVESTMENTS -- (CONTINUED) OCTOBER 31, 2006 (000'S OMITTED) --------------------------------------------------------------------------------
PRINCIPAL MARKET AMOUNT (B) VALUE (W) ----------- ---------- CORPORATE BONDS: INVESTMENT GRADE -- (CONTINUED) FINANCE -- (CONTINUED) $ 3,110 AMVESCAP plc, 4.50%, 12/15/2009............................... $ 3,036 1,206 AMVESCAP plc, 5.38%, 02/27/2013............................... 1,191 915 Army Hawaii Family Housing Trust Certificates, 5.52%, 06/15/2050 (I)........................... 905 1,950 BAC Capital Trust XI, 6.63%, 05/23/2036............................... 2,101 1,735 BAE Systems Holdings, Inc., 5.20%, 08/15/2015 (I)........................... 1,663 80 Capital One Bank, 4.88%, 05/15/2008............................... 80 1,490 Credit Suisse First Boston USA, Inc., 6.50%, 01/15/2012............................... 1,573 1,355 ERAC USA Finance Co., 5.60%, 05/01/2015 (I)........................... 1,344 1,740 ERP Operating L.P., 6.58%, 04/13/2015............................... 1,859 1,355 Federal Home Loan Bank, 4.88%, 11/18/2011............................... 1,355 1,980 HSBC Holding plc, 6.50%, 05/02/2036............................... 2,145 2,525 iStar Financial, Inc., 5.95%, 10/15/2013 (I)........................... 2,542 3,445 JP Morgan Chase Capital XX, 6.55%, 09/29/2036............................... 3,567 820 Kazkommerts International B.V., 8.00%, 11/03/2015 (I)........................... 844 JPY 920,000 Landwirtsch Rentenbank, 0.65%, 09/30/2008............................... 7,860 1,685 Lehman Brothers Holdings, Inc., 5.50%, 04/04/2016............................... 1,687 1,970 Liberty Mutual Group, 7.50%, 08/15/2036............................... 2,191 2,570 Merrill Lynch & Co., Inc., 6.05%, 05/16/2016............................... 2,669 1,345 Merrill Lynch & Co., Inc., 6.22%, 09/15/2026............................... 1,389 220 Metlife, Inc., 5.38%, 12/15/2012............................... 222 2,205 Metlife, Inc., 5.70%, 06/15/2035............................... 2,176 2,385 Morgan Stanley, 6.25%, 08/09/2026............................... 2,498 2,032 MUFG Capital Finance I Ltd., 6.35%, 07/25/2049............................... 2,052 75 National Rural Utilities Cooperative Finance Corp., 5.75%, 08/28/2009............................... 76 1,511 Principal Financial Group, 6.05%, 10/15/2036............................... 1,560 2,110 Prudential Financial, Inc., 5.90%, 03/17/2036............................... 2,136
PRINCIPAL MARKET AMOUNT VALUE (W) ----------- ---------- FINANCE -- (CONTINUED) $ 1,670 RBD Capital, 6.50%, 08/11/2008............................... $ 1,682 1,813 Residential Capital Corp., 6.00%, 02/22/2011............................... 1,818 2,270 Residential Capital Corp., 6.38%, 06/30/2010............................... 2,304 200 Simon Property Group, Inc., 6.35%, 08/28/2012 (G)........................... 209 1,820 Simon Property Group, Inc., 7.88%, 03/15/2016 (I)........................... 2,116 1,500 St. Paul Travelers Cos., Inc., 8.13%, 04/15/2010............................... 1,634 810 Suntrust Preferred Capital, 5.85%, 12/29/2049 (L)........................... 817 496 Travelers Property Casualty Corp., 5.00%, 03/15/2013............................... 486 1,370 TuranAlem Finance B.V., 8.00%, 03/24/2014............................... 1,377 1,006 WellPoint, Inc., 5.85%, 01/15/2036............................... 989 1,000 WellPoint, Inc., 6.80%, 08/01/2012............................... 1,068 1,620 Western Union Co., 5.93%, 10/01/2016 (I)........................... 1,644 ---------- 82,577 ---------- FOREIGN GOVERNMENTS -- 0.2% 640 El Salvador (Republic of), 8.25%, 04/10/2032 (I)(G)........................ 749 682 United Mexican States, 5.63%, 01/15/2017............................... 682 ---------- 1,431 ---------- HEALTH CARE -- 0.6% 856 Baxter International, Inc., 5.90%, 09/01/2016............................... 883 1,880 Cardinal Health, Inc., 5.85%, 12/15/2017............................... 1,884 2,630 Teva Pharmaceuticals Finance LLC, 6.15%, 02/01/2036............................... 2,574 ---------- 5,341 ---------- SERVICES -- 1.5% 2,110 COX Communications, Inc., 5.45%, 12/15/2014............................... 2,061 435 Electronic Data Systems Corp., 3.88%, 07/15/2023 +............................. 445 775 FedEx Corp., 3.50%, 04/01/2009............................... 745 1,975 Marriott International, Inc., 6.20%, 06/15/2016............................... 1,995 813 Mashantucket Western Pequot Revenue Bond, 5.91%, 09/01/2021 (I)........................... 783 1,800 Time Warner Entertainment Co. L.P., 8.38%, 07/15/2033............................... 2,193
The accompanying notes are an integral part of these financial statements. 244 --------------------------------------------------------------------------------
PRINCIPAL MARKET AMOUNT VALUE (W) ----------- ---------- CORPORATE BONDS: INVESTMENT GRADE -- (CONTINUED) SERVICES -- (CONTINUED) $ 1,164 Viacom, Inc., 5.75%, 04/30/2011............................... $ 1,165 3,250 Viacom, Inc., 6.88%, 04/30/2036............................... 3,273 ---------- 12,660 ---------- TECHNOLOGY -- 2.3% 895 America Movil S.A. de C.V., 6.38%, 03/01/2035............................... 876 1,352 AT&T Corp., 8.00%, 11/15/2031............................... 1,694 685 Bellsouth Capital Funding Corp., 7.88%, 02/15/2030 (G)........................... 805 2,850 Cingular Wireless Services, Inc., 8.75%, 03/01/2031............................... 3,734 1,241 Cisco Systems, Inc., 5.50%, 02/22/2016............................... 1,255 3,391 Siemens Finance, 6.13%, 08/17/2026 (I)........................... 3,528 1,675 Sprint Capital Corp., 8.75%, 03/15/2032............................... 2,069 685 TCI Communications, Inc., 8.75%, 08/01/2015............................... 811 2,075 Tele-Communications, Inc., 7.88%, 08/01/2013............................... 2,321 3,070 Telefonica Emisiones SAU, 6.42%, 06/20/2016............................... 3,182 ---------- 20,275 ---------- TRANSPORTATION -- 0.5% 1,035 American Airlines, Inc., 7.86%, 10/01/2011............................... 1,118 2,225 CSX Corp., 6.75%, 03/15/2011............................... 2,349 745 Royal Caribbean Cruises Ltd., 7.50%, 10/15/2027 (G)........................... 727 ---------- 4,194 ---------- UTILITIES -- 2.4% 1,314 Carolina Power & Light Co., 5.25%, 12/15/2015............................... 1,299 1,625 Centerpoint Energy, Inc., 6.85%, 06/01/2015............................... 1,732 1,550 Commonwealth Edison Co., 5.90%, 03/15/2036............................... 1,524 565 Detroit Edison Co., 6.13%, 10/01/2010............................... 582 1,395 Duke Energy Corp., 3.75%, 03/05/2008............................... 1,368 3,270 FPL Group Capital, Inc., 6.35%, 10/01/2066............................... 3,340 1,960 Kinder Morgan Finance Co., 5.70%, 01/05/2016............................... 1,816 1,170 Northern States Power Co., 6.25%, 06/01/2036............................... 1,272
PRINCIPAL MARKET AMOUNT VALUE (W) ----------- ---------- UTILITIES -- (CONTINUED) $ 2,320 Ohio Edison Co., 6.88%, 07/15/2036............................... $ 2,579 2,345 Oneok Partners L.P., 6.65%, 10/01/2036............................... 2,413 1,310 PECO Energy Corp., 5.95%, 10/01/2036............................... 1,347 630 Puget Sound Energy, Inc., 7.96%, 02/22/2010............................... 679 850 Texas-New Mexico Power Co., 6.13%, 06/01/2008............................... 855 250 Westar Energy, Inc., 5.15%, 01/01/2017............................... 239 75 Westar Energy, Inc., 6.00%, 07/01/2014 (G)........................... 77 ---------- 21,122 ---------- Total corporate bonds: investment grade (cost $178,642)................................. $ 181,515 ---------- CORPORATE BONDS: NON-INVESTMENT GRADE -- 9.0% BASIC MATERIALS -- 1.1% $ 1,810 Boise Cascade LLC, 7.13%, 10/15/2014............................... $ 1,706 2,000 Equistar Chemicals L.P., 8.75%, 02/15/2009............................... 2,080 1,700 Goodyear Tire & Rubber Co., 11.25%, 03/01/2011.............................. 1,870 1,900 Potlatch Corp., 13.00%, 12/01/2009 (L).......................... 2,213 835 Vedanta Resources plc, 6.63%, 02/22/2010 (I)........................... 824 1,195 Verso Paper Holdings LLC, 11.38%, 08/01/2016 (I).......................... 1,213 ---------- 9,906 ---------- CAPITAL GOODS -- 0.8% 1,830 Bombardier, Inc., 6.30%, 05/01/2014 (I)........................... 1,679 1,670 Case Corp., 7.25%, 01/15/2016............................... 1,680 1,219 L-3 Communications Corp., 3.00%, 08/01/2035 +............................. 1,263 2,051 Xerox Corp., 6.75%, 02/01/2017............................... 2,087 ---------- 6,709 ---------- CONSUMER CYCLICAL -- 1.4% 1,975 ArvinMeritor, Inc., 8.75%, 03/01/2012 (G)........................... 1,940 2,020 General Motors Corp., 6.38%, 05/01/2008............................... 1,980 940 K Hovnanian Enterprises, 8.63%, 01/15/2017 (G)........................... 969 1,030 Neiman Marcus Group, Inc., 10.38%, 10/15/2015 (G).......................... 1,127 1,510 Supervalu, Inc., 7.50%, 11/15/2014............................... 1,536
The accompanying notes are an integral part of these financial statements. 245 THE HARTFORD TOTAL RETURN BOND FUND SCHEDULE OF INVESTMENTS -- (CONTINUED) OCTOBER 31, 2006 (000'S OMITTED) --------------------------------------------------------------------------------
PRINCIPAL MARKET AMOUNT (B) VALUE (W) ----------- ---------- CORPORATE BONDS: NON-INVESTMENT GRADE -- (CONTINUED) CONSUMER CYCLICAL -- (CONTINUED) $ 2,330 Technical Olympic USA, Inc., 8.25%, 04/01/2011 (I)(G)........................ $ 2,202 2,035 Tenneco, Inc., 8.63%, 11/15/2014 (G)........................... 2,050 ---------- 11,804 ---------- CONSUMER STAPLES -- 0.1% 925 Dole Food Co., Inc., 8.63%, 05/01/2009............................... 905 ---------- ENERGY -- 0.1% 816 Chesapeake Energy Corp., 2.75%, 11/15/2035 +............................. 883 200 Naftogaz Ukrainy, 8.13%, 09/30/2009............................... 193 ---------- 1,076 ---------- FINANCE -- 1.5% 915 American Real Estate Partners L.P., 7.13%, 02/15/2013............................... 913 1,710 Avis Budget Car Rental, 7.91%, 05/15/2014 (I)(L)........................ 1,672 2,640 Ford Motor Credit Co., 7.38%, 02/01/2011............................... 2,522 2,660 Ford Motor Credit Co., 9.82%, 04/15/2012 (L)........................... 2,774 5,010 General Motors Acceptance Corp., 6.88%, 09/15/2011............................... 5,044 ---------- 12,925 ---------- FOREIGN GOVERNMENTS -- 0.2% BRL 1,875 Brazil (Republic of), 12.50%, 01/05/2022.............................. 860 860 Turkey (Republic of), 7.00%, 09/26/2016 (Q)........................... 864 ---------- 1,724 ---------- HEALTH CARE -- 0.2% 2,200 HCA, Inc., 7.88%, 02/01/2011............................... 2,112 ---------- SERVICES -- 0.9% 3,850 Dex Media West LLC, 9.88%, 08/15/2013............................... 4,182 1,680 EchoStar DBS Corp., 6.38%, 10/01/2011............................... 1,663 1,720 SunGard Data Systems, Inc., 9.13%, 08/15/2013............................... 1,785 ---------- 7,630 ---------- TECHNOLOGY -- 2.5% 1,175 Advanced Micro Devices, Inc., 7.75%, 11/01/2012............................... 1,196 1,870 Citizens Communications Co., 9.00%, 08/15/2031............................... 2,033
PRINCIPAL MARKET AMOUNT VALUE (W) ----------- ---------- TECHNOLOGY -- (CONTINUED) $ 640 CSC Holdings, Inc., 8.13%, 07/15/2009............................... $ 660 1,085 Dobson Cellular Systems, 8.38%, 11/01/2011 (I)........................... 1,127 2,000 Intelsat Bermuda Ltd., 9.25%, 06/15/2016 (I)........................... 2,135 2,175 Level 3 Financing, Inc., 9.25%, 11/01/2014 (I)........................... 2,189 2,035 Nortel Networks Ltd., 9.62%, 07/15/2011 (I)(L)........................ 2,101 1,105 NXP B.V., 8.12%, 10/15/2013 (I)(L)(G)..................... 1,115 1,980 Panamsat Corp., 9.00%, 06/15/2016 (I)........................... 2,069 1,750 Qwest Communications International, Inc., 7.50%, 02/15/2014............................... 1,785 625 Qwest Corp., 7.88%, 09/01/2011............................... 664 203 SanDisk Corp., 1.00%, 05/15/2013 (G)+.......................... 184 1,575 Seagate Technology Holdings, 6.80%, 10/01/2016............................... 1,553 810 Vimpel Communications, 8.25%, 05/23/2016 (I)........................... 839 1,940 Windstream Corp., 8.63%, 08/01/2016 (I)........................... 2,093 ---------- 21,743 ---------- UTILITIES -- 0.2% 1,975 NRG Energy, Inc., 7.38%, 02/01/2016............................... 1,996 ---------- Total corporate bonds: non-investment grade (cost $77,281).................................. $ 78,530 ---------- SENIOR FLOATING RATE INTERESTS: NON-INVESTMENT GRADE (V) -- 4.8% BASIC MATERIALS -- 0.7% $ 1,385 Compass Minerals Group, Inc., 6.88%, 12/22/2012 (N)(Q)........................ $ 1,384 2,693 Georgia-Pacific Corp., 7.36%, 02/14/2013 (N)........................... 2,706 1,863 Huntsman International, Inc., 7.07%, 08/16/2012 (N)(Q)........................ 1,861 ---------- 5,951 ---------- CONSUMER CYCLICAL -- 0.3% 354 Invista B.V., Term Loan Tranche B-1, 6.88%, 04/30/2010 (AA)(Q)....................... 355 355 Invista B.V., Term Loan Tranche B-2, 6.88%, 04/30/2010 (AA)(Q)....................... 356
The accompanying notes are an integral part of these financial statements. 246 --------------------------------------------------------------------------------
PRINCIPAL MARKET AMOUNT VALUE (W) ----------- ---------- SENIOR FLOATING RATE INTERESTS: NON-INVESTMENT GRADE -- (CONTINUED) CONSUMER CYCLICAL -- (CONTINUED) $ 1,049 Supervalu, Inc., 7.17%, 05/30/2013 (N)........................... $ 1,052 532 William Carter Co., 6.86%, 07/14/2012 (AA)(Q)....................... 531 ---------- 2,294 ---------- FINANCE -- 1.0% 2,545 Ameritrade Holding Corp., 6.82%, 12/31/2011 (N)........................... 2,543 2,629 General Growth Properties, 6.62%, 02/24/2010 (N)........................... 2,610 960 Nasdaq Stock Market, Inc., Term Loan C, 7.06%, 05/22/2012 (N)........................... 960 1,987 Nasdaq Stock Market, Inc., Term Loan B, 7.06%, 05/22/2012 (N)........................... 1,987 ---------- 8,100 ---------- HEALTH CARE -- 0.8% 1,602 Community Health Systems, 7.14%, 08/19/2011 (N)........................... 1,601 2,538 Fresenius Medical Care AG, 6.79%, 03/23/2012 (N)........................... 2,518 1,400 HCA, Inc., 9.37%, 09/15/2007 (AA)(Q)....................... 1,386 1,858 Lifepoint Hospitals, Inc., 6.98%, 04/15/2012 (AA).......................... 1,850 ---------- 7,355 ---------- SERVICES -- 1.4% 970 Allied Waste, 7.07%, 01/15/2012 (N)........................... 970 2,445 Allied Waste, 7.17%, 01/15/2012 (N)........................... 2,444 1,224 Gray Television, Inc., 6.86%, 11/22/2012 (N)(Q)........................ 1,222 2,927 MGM Mirage, Inc., 6.59%, 10/03/2011 (N)........................... 2,894 2,720 Regal Cinemas, Inc., 7.12%, 11/10/2010 (N)(Q)........................ 2,714 931 UPC Financing Partnership, 7.62%, 03/31/2013 (N)(Q)........................ 931 931 UPC Financing Partnership, 7.62%, 12/31/2013 (N)(Q)........................ 930 ---------- 12,105 ---------- TECHNOLOGY -- 0.4% 710 Cincinnati Bell, Inc., 6.92%, 08/31/2012 (N)........................... 709 754 Mediacom Broadband, 7.08%, 01/31/2015 (AA)(Q)....................... 752
PRINCIPAL MARKET AMOUNT VALUE (W) ----------- ---------- TECHNOLOGY -- (CONTINUED) $ 1,763 Mediacom Broadband, 7.41%, 01/31/2015 (N)(Q)........................ $ 1,747 443 Mediacom LLC, 7.23%, 01/31/2015 (N)........................... 443 ---------- 3,651 ---------- UTILITIES -- 0.2% 963 Mirant North America LLC, 7.07%, 01/03/2013 (N)........................... 961 710 NRG Energy, Inc., 7.32%, 01/27/2013 (AA)(Q)....................... 714 355 Pike Electric, Inc., 6.88%, 07/01/2012 (AA)(Q)....................... 354 ---------- 2,029 ---------- Total senior floating rate interests: non-investment grade (cost $41,538).................................. $ 41,485 ---------- U.S. GOVERNMENT AGENCIES -- 26.8% FEDERAL HOME LOAN MORTGAGE CORPORATION -- 7.0% $ 3,800 4.10% 2014........................................ $ 3,708 12,153 4.50% 2018........................................ 11,768 3,020 5.04% 2035........................................ 2,984 3,554 5.33% 2036........................................ 3,531 1,036 5.45% 2036........................................ 1,032 3,170 5.46% 2036........................................ 3,157 13,210 5.48% 2036........................................ 13,164 3,355 5.50% 2033 -- 2034................................ 3,327 3,259 5.58% 2036........................................ 3,270 15,372 6.00% 2032 -- 2035................................ 15,499 ---------- 61,440 ---------- FEDERAL NATIONAL MORTGAGE ASSOCIATION -- 14.7% 9,247 4.50% 2035........................................ 8,679 746 4.69% 2034........................................ 731 1,863 4.71% 2035........................................ 1,823 895 4.72% 2035........................................ 879 2,319 4.79% 2035........................................ 2,273 1,109 4.88% 2035........................................ 1,096 802 4.91% 2035........................................ 790 1,967 4.94% 2035........................................ 1,939 37,826 5.00% 2018 -- 2036 (Q)............................ 37,054 1,297 5.09% 2035........................................ 1,277 32,774 5.50% 2017 -- 2033 (Q)............................ 32,688 35,844 6.00% 2013 -- 2036 (Q)............................ 36,085 1,446 6.50% 2031 -- 2036 (Q)............................ 1,475 421 7.50% 2029 -- 2031................................ 439 ---------- 127,228 ---------- GOVERNMENT NATIONAL MORTGAGE ASSOCIATION -- 3.1% 5,392 5.50% 2033 -- 2035................................ 5,376 17,650 6.00% 2032 -- 2036................................ 17,852 3,973 6.50% 2028 -- 2032................................ 4,095 ---------- 27,323 ----------
The accompanying notes are an integral part of these financial statements. 247 THE HARTFORD TOTAL RETURN BOND FUND SCHEDULE OF INVESTMENTS -- (CONTINUED) OCTOBER 31, 2006 (000'S OMITTED) --------------------------------------------------------------------------------
PRINCIPAL MARKET AMOUNT VALUE (W) ----------- ---------- U.S. GOVERNMENT AGENCIES -- (CONTINUED) OTHER GOVERNMENT AGENCIES -- 2.0% $ 2,063 5.37% 2026........................................ $ 2,075 2,284 5.54% 2026........................................ 2,319 1,899 5.57% 2026........................................ 1,932 1,869 5.64% 2026........................................ 1,912 2,208 5.70% 2026........................................ 2,261 1,779 5.82% 2026........................................ 1,832 1,792 5.87% 2026........................................ 1,850 1,585 6.07% 2026........................................ 1,653 1,809 6.14% 2022........................................ 1,869 ---------- 17,703 ---------- Total U.S. government agencies (cost $235,000)................................. $ 233,694 ---------- U.S. GOVERNMENT SECURITIES -- 11.3% OTHER DIRECT FEDERAL OBLIGATIONS -- 0.3% $ 8,800 Tennessee Valley Authority, 4.75%, 11/01/2025 (M)........................... $ 2,233 250 Federal Home Loan Bank, 6.05%, 02/20/2007 (L)........................... 248 ---------- 2,481 ---------- U.S. TREASURY SECURITIES -- 11.0% 3,492 3.38% 2007 (O)(G)................................. 4,441 5,909 4.50% 2011 (G).................................... 5,888 7,045 4.50% 2036 (G).................................... 6,801 2,430 4.63% 2011........................................ 2,436 40,121 4.88% 2009 -- 2016 (G)............................ 40,936 7,315 5.00% 2008 (G).................................... 7,346 27,270 5.125% 2011 (G)................................... 27,887 ---------- 95,735 ---------- Total U.S. government securities (cost $97,861).................................. $ 98,216 ---------- Total long-term securities (cost $767,277)................................. $ 770,438 ---------- SHORT-TERM INVESTMENTS -- 30.2% CONSUMER STAPLES -- 0.9% $ 8,000 Cargill, Inc., 5.24%, 11/10/2006............................... $ 7,989 ---------- FINANCE -- 5.1% 8,000 American General Finance, 5.24%, 11/17/2006............................... 7,981 6,000 Bank of America Corp., 5.24%, 11/03/2006............................... 5,997 8,000 Bear Stearns Co., 5.24%, 11/13/2006............................... 7,985 8,000 Deutsche Bank, 5.25%, 11/13/2006............................... 7,985 8,000 General Electric Capital Corp., 5.23%, 11/13/2006............................... 7,985
PRINCIPAL MARKET AMOUNT VALUE (W) ----------- ---------- FINANCE -- (CONTINUED) $ 6,000 Morgan Stanley, 5.25%, 11/14/2006............................... $ 5,988 802 State Street Bank Money Market Fund............... 802 ---------- 44,723 ---------- REPURCHASE AGREEMENTS -- 13.0% 37,426 BNP Paribas Joint Repurchase Agreement, 5.24%, 11/01/2006............................... 37,426 38,375 RBS Greenwich Joint Repurchase Agreement, 5.24%, 11/01/2006............................... 38,375 37,426 UBS Securities LLC Repurchase Agreement, 5.24%, 11/01/2006............................... 37,426 ---------- 113,227 ---------- SHARES ----------- SECURITIES PURCHASED WITH PROCEEDS FROM SECURITY LENDING -- 11.1% 96,732 Navigator Prime Portfolio, 5.26% (L)....................................... $ 96,732 ---------- PRINCIPAL AMOUNT ----------- U.S. TREASURY BILL -- 0.1% $ 650 U.S. Treasury Bill, 4.83%, 12/14/2006 (M)(S)........................ 646 ---------- Total short-term investments (cost $263,317)................................. $ 263,317 ---------- Total investments in securities (cost $1,030,594) (C)........................... $1,033,755 ==========
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 7.04% of total net assets at October 31, 2006. (B) All principal amounts are in U.S. dollars unless otherwise indicated. BRL -- Brazilian Real JPY -- Japanese Yen
(C) At October 31, 2006, the cost of securities for federal income tax purposes was $1,030,872 and the aggregate gross unrealized appreciation and depreciation based on that cost were: Unrealized appreciation......................... $ 7,868 Unrealized depreciation......................... (4,985) ------- Net unrealized appreciation..................... $ 2,883 =======
(G) Security is partially on loan at October 31, 2006. (H) The following securities are considered illiquid. Illiquid securities are often purchased in private placement transactions, are not registered under the Securities Act of 1933 and may have contractual restrictions on resale. A security may also be considered illiquid if the security The accompanying notes are an integral part of these financial statements. 248 -------------------------------------------------------------------------------- lacks a readily available market or if its valuation has not changed for a certain period of time.
PERIOD COST ACQUIRED PAR SECURITY BASIS -------- --- -------- ----- 4/2005 $12,535 Morgan Stanley $-- Dean Witter Capital I, 0.46%, 08/25/2023 - 144A 4/2005 - 8/2006 5,557 Morgan Stanley 86 Dean Witter Capital I, 8.05%, 08/25/2032 - Reg D
The aggregate value of these securities at October 31, 2006 was $68, which represents 0.01% of total net assets. (I) 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 qualified institutional buyers. 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, 2006, was $71,695, which represents 8.22% of total net assets. (L) Variable rate securities; the rate reported is the coupon rate in effect at October 31, 2006. (M) The interest rate disclosed for these securities represents the effective yield on the date of acquisition. (N) The interest rate disclosed for these securities represents the effective yield as of October 31, 2006. (O) 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. (S) Security pledged as initial margin deposit for open futures contracts at October 31, 2006. (P) The interest rates disclosed for interest only strips represent effective yields based upon estimated future cash flows at October 31, 2006. (AA) The interest rate disclosed for these securities represents an estimated yield as of October 31, 2006. (Q) The cost of securities purchased on a when-issued or delayed delivery basis at October 31, 2006 was $80,000. (V) Senior loans in which the Fund invests generally pay interest at rates which are periodically adjusted by reference to a base short-term, floating lending rate plus a premium. These base lending rates are generally (i) the lending rate offered by one or more major European banks, such as the London Inter-Bank Offered Rate (LIBOR), (ii) the prime rate offered by one or more major United States Banks, or (iii) the bank's certificate of deposit rate. Senior floating rate interests often require prepayments from excess cash flows or permit the borrower to repay at its election. The rate at which the borrower repays cannot be predicted with accuracy. As a result, the actual remaining maturity may be substantially less than the stated maturities shown. The interest rate indicated is the rate in effect at October 31, 2006. (W) See Note 2b of accompanying Notes to Financial Statements regarding valuation of securities. + Convertible debt security. FUTURES CONTRACTS OUTSTANDING AT OCTOBER 31, 2006
UNREALIZED NUMBER OF APPRECIATION DESCRIPTION CONTRACTS POSITION EXPIRATION (DEPRECIATION) ----------- --------- -------- ------------- -------------- U.S. 2 Year Treasury Note futures contracts 196 Long December 2006 $ 279 U.S. 5 Year Treasury Note futures contracts 306 Long December 2006 91 U.S. Long Bond futures contracts 189 Short December 2006 (370) ----- $ -- =====
These contracts had a market value of $93,658 as of October 31, 2006. FORWARD FOREIGN CURRENCY CONTRACTS OUTSTANDING AT OCTOBER 31, 2006
UNREALIZED MARKET CONTRACT DELIVERY APPRECIATION DESCRIPTION TRANSACTION VALUE AMOUNT DATE (DEPRECIATION) ----------- ----------- ------ -------- ---------- -------------- Japanese Yen Buy $4,295 $4,296 11/07/2006 $ (1) Japanese Yen Sell 8,637 8,556 11/07/2006 (81) ---- $(82) ====
The accompanying notes are an integral part of these financial statements. 249 THE HARTFORD U.S. GOVERNMENT SECURITIES FUND SCHEDULE OF INVESTMENTS OCTOBER 31, 2006 (000'S OMITTED) --------------------------------------------------------------------------------
PRINCIPAL MARKET AMOUNT VALUE (W) --------- --------- ASSET & COMMERCIAL MORTGAGE BACKED SECURITIES -- 5.1% FINANCE -- 5.1% $ 2,000 Countrywide Asset-Backed Certificates, 5.76%, 09/01/2036............................... $ 2,010 2,000 Countrywide Asset-Backed Certificates, 5.80%, 07/25/2034............................... 1,996 4,000 Merrill Lynch/Countrywide Commercial Mortgage Trust, 5.46%, 07/12/2046 (L)........................... 4,027 1,979 Spirit Master Funding LLC, 5.76%, 03/20/2024 (I)........................... 1,986 -------- Total asset & commercial mortgage backed securities (cost $10,001).................................. $ 10,019 -------- U.S. GOVERNMENT SECURITIES -- 10.4% OTHER DIRECT FEDERAL OBLIGATIONS -- 3.9% FEDERAL HOME LOAN BANK: $ 1,000 4.88%, 11/18/2011................................. $ 1,000 6,650 5.125% 2013....................................... 6,716 -------- 7,716 -------- U.S. TREASURY SECURITIES -- 6.5% U.S. TREASURY NOTES: 3,000 4.75% 2011........................................ 3,020 9,690 4.875% 2009 -- 2016 (G)........................... 9,813 -------- 12,833 -------- Total U.S. government securities (cost $20,377).................................. $ 20,549 -------- U.S. GOVERNMENT AGENCIES -- 82.9% FEDERAL HOME LOAN MORTGAGE CORPORATION -- 30.0% MORTGAGE BACKED SECURITIES: $ 1,298 6.00% 2032........................................ $ 1,311 71 7.00% 2029 -- 2031................................ 74 105 9.00% 2022........................................ 113 61 11.50% 2015 -- 2019............................... 65 46 11.75% 2010 -- 2011............................... 50 15 12.50% 2019....................................... 16 -------- 1,629 -------- NOTES: 7,860 5.00% 2010........................................ 7,880 3,000 5.125% 2011....................................... 3,030 9,292 6.00% 2017........................................ 9,469 -------- 20,379 -------- REMIC -- PAC'S: 36,644 6.00% 2031 -- 2032................................ 37,263 -------- 59,271 -------- FEDERAL NATIONAL MORTGAGE ASSOCIATION -- 40.6% MORTGAGE BACKED SECURITIES: $11,535 5.48% 2036........................................ 11,499
PRINCIPAL MARKET AMOUNT VALUE (W) --------- --------- FEDERAL NATIONAL MORTGAGE ASSOCIATION -- (CONTINUED) 12,688 5.50% 2015 -- 2036................................ $ 12,550 2,164 5.85% 2009........................................ 2,175 22,290 6.00% 2016 -- 2036................................ 22,445 1,300 6.01% 2009........................................ 1,313 1,027 6.36% 2008........................................ 1,032 837 6.50% 2013 -- 2015................................ 855 5,412 6.52% 2008........................................ 5,430 85 7.50% 2030........................................ 89 22 8.00% 2025........................................ 23 50 8.50% 2022........................................ 53 40 9.00% 2020........................................ 44 13 9.75% 2020........................................ 14 113 10.00% 2020....................................... 124 37 10.50% 2012 -- 2018............................... 41 8 10.75% 2013....................................... 9 176 11.00% 2015 -- 2020............................... 192 34 11.25% 2013....................................... 35 8 11.50% 2015....................................... 8 20 12.00% 2014....................................... 22 64 12.50% 2015....................................... 71 -------- 58,024 -------- NOTES: 9,000 5.05% 2009........................................ 8,985 10,500 6.25% 2029........................................ 12,038 -------- 21,023 -------- REMIC-PAC'S: 1,233 6.50% 2012........................................ 1,253 -------- 80,300 -------- GOVERNMENT NATIONAL MORTGAGE ASSOCIATION -- 2.6% MORTGAGE BACKED SECURITIES: 450 6.00% 2034........................................ 455 3,850 6.50% 2031 -- 2032................................ 3,964 50 7.00% 2030........................................ 51 115 8.00% 2022........................................ 121 412 9.50% 2016 -- 2019................................ 448 28 11.00% 2015 -- 2018............................... 30 -------- 5,069 -------- OTHER GOVERNMENT AGENCIES -- 9.7% SMALL BUSINESS ADMINISTRATION PARTICIPATION CERTIFICATES: 1,448 5.37% 2026........................................ 1,457 1,507 5.54% 2026........................................ 1,530 2,941 5.66% 2022........................................ 2,995 1,920 5.70% 2026........................................ 1,966 2,737 5.82% 2026........................................ 2,820 2,812 5.98% 2022........................................ 2,884
The accompanying notes are an integral part of these financial statements. 250 --------------------------------------------------------------------------------
PRINCIPAL MARKET AMOUNT VALUE (W) --------- --------- U.S. GOVERNMENT AGENCIES -- (CONTINUED) OTHER GOVERNMENT AGENCIES -- (CONTINUED) $ 2,439 6.07% 2026........................................ $ 2,544 2,836 6.14% 2022........................................ 2,929 -------- 19,125 -------- Total U.S. government agencies (cost $162,142)................................. $163,765 -------- Total long-term investments (cost $192,520)................................. $194,333 -------- SHORT-TERM INVESTMENTS -- 5.1% REPURCHASE AGREEMENTS -- 1.2% $ 811 BNP Paribas Repurchase Agreement, 5.24%, 11/01/2006............................... $ 811 831 RBS Greenwich Repurchase Agreement, 5.24%, 11/01/2006............................... 831 811 UBS Securities LLC Repurchase Agreement, 5.24%, 11/01/2006............................... 811 -------- 2,453 -------- U.S. TREASURY BILL -- 0.2% 350 U.S. Treasury Bill, 4.77%, 12/14/2006 (M)(S)........................ 348 --------
SHARES --------- SECURITIES PURCHASED WITH PROCEEDS FROM SECURITY LENDING -- 3.7% 7,287 BNY Institutional Cash Reserve Fund, 5.31% (L)....................................... $ 7,287 -------- Total short-term investments (cost $10,088).................................. $ 10,088 -------- Total investments in securities (cost $202,608) (C)............................. $204,421 ========
Note: Percentage of investments as shown is the ratio of the total market value to total net assets. (C) At October 31, 2006, the cost of securities for federal income tax purposes was $202,617 and the aggregate gross unrealized appreciation and depreciation based on that cost were: Unrealized appreciation.......................... $2,136 Unrealized depreciation.......................... (332) ------ Net unrealized appreciation...................... $1,804 ======
(G) Security is partially on loan at October 31, 2006. (I) 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 qualified institutional buyers. 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, 2006, was $1,986, which represents 1.01% of total net assets. (L) Variable rate securities; the rate reported is the coupon rate in effect at October 31, 2006. (M) The interest rate disclosed for these securities represents the effective yield on the date of acquisition. (W) See Note 2b of accompanying Notes to Financial Statements regarding valuation of securities. (S) Security pledged as initial margin deposit for open futures contracts at October 31, 2006. FUTURES CONTRACTS OUTSTANDING AT OCTOBER 31, 2006
UNREALIZED NUMBER OF APPRECIATION DESCRIPTION CONTRACTS POSITION EXPIRATION (DEPRECIATION) ----------- --------- -------- --------------- -------------- CBT 5 Year U.S. Treasury Note futures contracts 158 Long December 2006 $38 ===
These contracts had a market value of $16,679 as of October 31, 2006. The accompanying notes are an integral part of these financial statements. 251 THE HARTFORD VALUE FUND SCHEDULE OF INVESTMENTS OCTOBER 31, 2006 (000'S OMITTED) --------------------------------------------------------------------------------
MARKET SHARES VALUE (W) --------- --------- COMMON STOCK -- 98.0% BASIC MATERIALS -- 5.1% 27 Alcoa, Inc. ...................................... $ 786 51 Cameco Corp. ..................................... 1,788 40 Dow Chemical Co. ................................. 1,640 48 E.I. DuPont de Nemours & Co. ..................... 2,208 21 Kimberly-Clark Corp. ............................. 1,424 16 Precision Castparts Corp. ........................ 1,103 -------- 8,949 -------- CAPITAL GOODS -- 6.9% 41 American Standard Cos., Inc. ..................... 1,811 71 Applied Materials, Inc. .......................... 1,236 24 Deere & Co. ...................................... 2,001 41 Goodrich Corp. ................................... 1,799 29 National Oilwell Varco, Inc. (D).................. 1,770 41 Pitney Bowes, Inc. ............................... 1,896 19 Textron, Inc. .................................... 1,709 -------- 12,222 -------- CONSUMER CYCLICAL -- 6.6% 35 Altria Group, Inc. ............................... 2,814 23 D.R. Horton, Inc. ................................ 532 43 Federated Department Stores, Inc. ................ 1,893 69 Gap, Inc. ........................................ 1,457 40 McDonald's Corp. ................................. 1,681 100 Safeway, Inc. .................................... 2,942 8 Supervalu, Inc. .................................. 257 -------- 11,576 -------- CONSUMER STAPLES -- 4.3% 37 Campbell Soup Co. ................................ 1,372 49 Kellogg Co. ...................................... 2,470 60 PepsiCo, Inc. .................................... 3,787 -------- 7,629 -------- ENERGY -- 8.2% 26 Chevron Corp. .................................... 1,754 102 Exxon Mobil Corp. ................................ 7,292 32 GlobalSantaFe Corp. .............................. 1,650 79 Occidental Petroleum Corp. ....................... 3,694 -------- 14,390 -------- FINANCE -- 29.6% 32 ACE Ltd. ......................................... 1,809 38 Aetna, Inc. ...................................... 1,558 49 Allstate Corp. ................................... 3,025 39 American International Group, Inc. ............... 2,613 137 Bank of America Corp. ............................ 7,391 49 Bank of New York Co., Inc. ....................... 1,691 46 Chubb Corp. ...................................... 2,466 118 Citigroup, Inc. .................................. 5,899 18 Goldman Sachs Group, Inc. ........................ 3,492 131 Host Hotels & Resorts, Inc. ...................... 3,015 47 JP Morgan Chase & Co. ............................ 2,216 12 Merrill Lynch & Co., Inc. ........................ 1,014 21 PNC Financial Services Group, Inc. ............... 1,499
MARKET SHARES VALUE (W) --------- --------- FINANCE -- (CONTINUED) 54 State Street Corp. ............................... $ 3,481 16 SunTrust Banks, Inc. ............................. 1,248 35 UBS AG............................................ 2,070 56 US Bancorp........................................ 1,878 39 Wachovia Corp. ................................... 2,182 21 WellPoint, Inc. (D)............................... 1,618 57 Wells Fargo & Co. ................................ 2,050 -------- 52,215 -------- HEALTH CARE -- 9.1% 34 Abbott Laboratories............................... 1,601 51 Baxter International, Inc. ....................... 2,335 86 Boston Scientific Corp. (D)....................... 1,368 29 Bristol-Myers Squibb Co. ......................... 720 153 CVS Corp. ........................................ 4,811 70 Pfizer, Inc. ..................................... 1,872 66 Wyeth............................................. 3,353 -------- 16,060 -------- SERVICES -- 3.0% 37 Comcast Corp. Class A (D)......................... 1,517 339 Sun Microsystems, Inc. (D)........................ 1,839 93 Time Warner, Inc. ................................ 1,869 -------- 5,225 -------- TECHNOLOGY -- 17.3% 147 AT&T, Inc. ....................................... 5,020 25 Beckman Coulter, Inc. ............................ 1,428 135 BellSouth Corp. .................................. 6,102 76 Cisco Systems, Inc. (D)........................... 1,829 237 EMC Corp. (D)..................................... 2,908 137 General Electric Co. ............................. 4,796 48 Hewlett-Packard Co. .............................. 1,844 81 Motorola, Inc. ................................... 1,870 67 Sprint Nextel Corp. .............................. 1,248 95 Verizon Communications, Inc. ..................... 3,515 -------- 30,560 -------- TRANSPORTATION -- 3.5% 52 AMR Corp. (D)..................................... 1,465 51 General Dynamics Corp. ........................... 3,598 78 Southwest Airlines Co. ........................... 1,165 -------- 6,228 -------- UTILITIES -- 4.4% 25 Dominion Resources, Inc. ......................... 2,037 9 Entergy Corp. .................................... 755 37 Exelon Corp. ..................................... 2,281 29 FPL Group, Inc. .................................. 1,499 31 SCANA Corp. ...................................... 1,253 -------- 7,825 -------- Total common stock (cost $147,128)................................. $172,879 --------
The accompanying notes are an integral part of these financial statements. 252 -------------------------------------------------------------------------------- PRINCIPAL MARKET AMOUNT VALUE (W) ----------- --------- SHORT-TERM INVESTMENTS -- 2.5% REPURCHASE AGREEMENTS -- 2.5% $ 883 Bank of America Securities TriParty Joint Repurchase Agreement, 5.31%, 11/01/2006............................... $ 883 519 Credit Suisse Securities TriParty Joint Repurchase Agreement, 5.32%, 11/01/2006............................... 519 21 Deutsche Bank Securities Joint Repurchase Agreement, 5.25%, 11/01/2006............................... 21 416 Deutsche Bank Securities TriParty Joint Repurchase Agreement, 5.30%, 11/01/2006............................... 416 873 Deutsche Bank Securities TriParty Joint Repurchase Agreement, 5.32%, 11/01/2006............................... 873 478 Morgan Stanley & Co., Inc. TriParty Joint Repurchase Agreement, 5.29%, 11/01/2006............................... 478 1,174 UBS Securities TriParty Joint Repurchase Agreement, 5.31%, 11/01/2006............................... 1,174 --------- Total short-term investments (cost $4,364)................................... $ 4,364 --------- Total investments in securities (cost $151,492) (C)............................. $ 177,243 =========
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 2.19% of total net assets at October 31, 2006. (C) At October 31, 2006, the cost of securities for federal income tax purposes was $151,645 and the aggregate gross unrealized appreciation and depreciation based on that cost were: Unrealized appreciation......................... $26,504 Unrealized depreciation......................... (906) ------- Net unrealized appreciation..................... $25,598 =======
(D) Currently non-income producing. (W) See Note 2b of accompanying Notes to Financial Statements regarding valuation of securities. The accompanying notes are an integral part of these financial statements. 253 THE HARTFORD VALUE OPPORTUNITIES FUND SCHEDULE OF INVESTMENTS OCTOBER 31, 2006 (000'S OMITTED) --------------------------------------------------------------------------------
MARKET SHARES VALUE (W) --------- --------- COMMON STOCK -- 98.5% BASIC MATERIALS -- 9.3% 206 Alcoa, Inc. ...................................... $ 5,950 90 Arch Coal, Inc. .................................. 3,106 38 Celanese Corp. ................................... 775 42 Century Aluminum Co. (D).......................... 1,623 206 Chemtura Corp. ................................... 1,763 43 Cytec Industries, Inc. ........................... 2,382 39 E.I. DuPont de Nemours & Co. ..................... 1,763 11 FMC Corp. (D)..................................... 768 33 Martin Marietta Materials, Inc. .................. 2,913 32 Michelin (C.G.D.E.) Class B (A)................... 2,583 43 Owens-Illinois, Inc. (D).......................... 706 146 Smurfit-Stone Container Corp. (D)................. 1,554 50 Temple-Inland, Inc. .............................. 1,956 -------- 27,842 -------- CAPITAL GOODS -- 5.3% 26 Alliant Techsystems, Inc. (D)..................... 1,992 34 Deere & Co. ...................................... 2,920 174 Goodrich Corp. ................................... 7,658 30 Kennametal, Inc. ................................. 1,851 42 Varian Semiconductor Equipment Associates, Inc. (D)............................................. 1,523 -------- 15,944 -------- CONSUMER CYCLICAL -- 7.2% 155 American Axle & Manufacturing Holdings, Inc. ..... 2,904 310 Foot Locker, Inc. ................................ 7,187 75 Lear Corp. (G).................................... 2,269 199 Ruby Tuesday, Inc. ............................... 5,511 97 TRW Automotive Holdings Corp. (D)................. 2,483 27 Walter Industries (G)............................. 1,246 -------- 21,600 -------- CONSUMER STAPLES -- 1.3% 34 Avon Products, Inc. .............................. 1,028 120 Unilever N.V. NY Shares........................... 2,897 -------- 3,925 -------- ENERGY -- 9.3% 73 Exxon Mobil Corp. ................................ 5,235 35 GlobalSantaFe Corp. .............................. 1,801 22 Marathon Oil Corp. ............................... 1,935 43 Noble Corp. ...................................... 3,007 62 Noble Energy, Inc. ............................... 2,991 197 Talisman Energy, Inc. ............................ 3,259 101 Total S.A. ADR.................................... 6,858 110 UGI Corp. ........................................ 2,920 -------- 28,006 -------- FINANCE -- 28.3% 161 ACE Ltd. ......................................... 9,240 71 Aetna, Inc. ...................................... 2,943 53 Allstate Corp. ................................... 3,234 32 AMBAC Financial Group, Inc. ...................... 2,647 54 American International Group, Inc. ............... 3,641
MARKET SHARES VALUE (W) --------- --------- FINANCE -- (CONTINUED) 338 Apollo Investment Corp. .......................... $ 7,295 281 Bank of America Corp. ............................ 15,125 106 Capital One Financial Corp. ...................... 8,369 35 CIT Group, Inc. .................................. 1,817 81 Citigroup, Inc. .................................. 4,086 140 E*Trade Financial Corp. (D)....................... 3,257 44 Everest Re Group Ltd. ............................ 4,354 134 KKR Financial Corp. .............................. 3,587 97 Platinum Underwriters Holdings Ltd. .............. 2,893 211 Royal Bank of Scotland Group plc (A).............. 7,522 46 UBS AG............................................ 2,747 134 UnumProvident Corp. .............................. 2,643 -------- 85,400 -------- HEALTH CARE -- 7.7% 29 Astellas Pharma, Inc. (A)......................... 1,306 127 Boston Scientific Corp. (D)....................... 2,025 65 Bristol-Myers Squibb Co. ......................... 1,609 68 Cooper Companies, Inc. ........................... 3,913 154 Impax Laboratories, Inc. (D)...................... 1,077 38 Sanofi-Aventis S.A. (A)........................... 3,251 104 Sanofi-Aventis S.A. ADR........................... 4,431 106 Wyeth............................................. 5,394 -------- 23,006 -------- SERVICES -- 7.4% 43 Avid Technology, Inc. (D)......................... 1,535 65 Comcast Corp. Class A (D)......................... 2,631 169 Comcast Corp. Special Class A (D)................. 6,857 89 Entercom Communications Corp. .................... 2,457 33 Liberty Global, Inc. (D).......................... 854 55 Liberty Global, Inc. Class C (D).................. 1,390 57 R.H. Donnelley Corp. (G).......................... 3,439 355 Unisys Corp. (D).................................. 2,322 19 Viacom, Inc. Class B (D).......................... 736 -------- 22,221 -------- TECHNOLOGY -- 18.3% 112 Arrow Electronics, Inc. (D)....................... 3,352 323 Cinram International Income Fund.................. 6,380 426 Cisco Systems, Inc. (D)........................... 10,282 11 Embarq Corp. ..................................... 516 70 Fairchild Semiconductor International, Inc. (D)... 1,123 265 Flextronics International Ltd. (D)................ 3,074 170 Microsoft Corp. .................................. 4,889 78 NCR Corp. (D)..................................... 3,239 277 Powerwave Technologies, Inc. (D)(G)............... 1,802 63 QLogic Corp. (D).................................. 1,303 177 Sprint Nextel Corp. .............................. 3,300 152 Symantec Corp. (D)................................ 3,008 62 Tektronix, Inc. .................................. 1,874 124 Telefonaktiebolaget LM Ericsson ADR............... 4,678 117 Tyco International Ltd. .......................... 3,429 75 Verizon Communications, Inc. ..................... 2,757 -------- 55,006 --------
The accompanying notes are an integral part of these financial statements. 254 --------------------------------------------------------------------------------
MARKET SHARES VALUE (W) --------- --------- COMMON STOCK -- (CONTINUED) TRANSPORTATION -- 4.4% 199 UAL Corp. (D)..................................... $ 7,163 21 US Airways Group, Inc. (D)........................ 1,062 81 US Airways Group, Inc. (D) (I).................... 4,015 24 YRC Worldwide, Inc. (D)........................... 945 -------- 13,185 -------- Total common stock (cost $260,227)................................. $296,135 -------- PRINCIPAL AMOUNT ------ SHORT-TERM INVESTMENTS -- 3.7% REPURCHASE AGREEMENTS -- 1.3% $ 819 Bank of America Securities TriParty Joint Repurchase Agreement, 5.31%, 11/01/2006............................... $ 819 482 Credit Suisse Securities TriParty Joint Repurchase Agreement, 5.32%, 11/01/2006............................... 482 19 Deutsche Bank Securities Joint Repurchase Agreement, 5.25%, 11/01/2006............................... 19 385 Deutsche Bank Securities TriParty Joint Repurchase Agreement, 5.30%, 11/01/2006............................... 385 809 Deutsche Bank Securities TriParty Joint Repurchase Agreement, 5.32%, 11/01/2006............................... 809 443 Morgan Stanley & Co., Inc. TriParty Joint Repurchase Agreement, 5.29%, 11/01/2006............................... 443 1,088 UBS Securities TriParty Joint Repurchase Agreement, 5.31%, 11/01/2006............................... 1,088 -------- 4,045 -------- MARKET SHARES VALUE (W) ------ -------- SECURITIES PURCHASED WITH PROCEEDS FROM SECURITY LENDING -- 2.4% 7,150 BNY Institutional Cash Reserve Fund............... $ 7,150 -------- Total short-term investments (cost $11,195).................................. $ 11,195 -------- Total investments in securities (cost $271,422) (C)............................. $307,330 ========
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 15.27% of total net assets at October 31, 2006. (A) The aggregate value of securities valued in good faith at fair value by, or under the direction of, the Funds' Board of Directors at October 31, 2006, was $14,662, which represents 4.88% of total net assets. (C) At October 31, 2006, the cost of securities for federal income tax purposes was $271,949 and the aggregate gross unrealized appreciation and depreciation based on that cost were: Unrealized appreciation......................... $39,414 Unrealized depreciation......................... (4,033) ------- Net unrealized appreciation..................... $35,381 =======
(D) Currently non-income producing. (G) Security is partially on loan at October 31, 2006. (I) 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 qualified institutional buyers. 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, 2006, was $4,015, which represents 1.33% of total net assets. (W) See Note 2b of accompanying Notes to Financial Statements regarding valuation of securities. The accompanying notes are an integral part of these financial statements. 255 THE HARTFORD MUTUAL FUNDS, INC. AND THE HARTFORD MUTUAL FUNDS II, INC. STATEMENT OF ASSETS AND LIABILITIES OCTOBER 31, 2006 (000'S OMITTED) --------------------------------------------------------------------------------
AGGRESSIVE ADVISERS GROWTH ALLOCATION FUND FUND ------------- ----------------- ASSETS: Investments in securities, at value; (amortized cost for Money Market)@........................................... $ 1,916,372 $ 201,406* Cash+...................................................... 412 -- Foreign currency on deposit with custodian#................ -- -- Unrealized appreciation in forward foreign currency contracts................................................ 27 -- Receivables: Investment securities sold............................... 20,819 -- Fund shares sold......................................... 484 402 Dividends and interest................................... 6,144 -- Variation margin......................................... -- -- Other assets............................................... 67 49 ------------- ------------- Total assets................................................ 1,944,325 201,857 ------------- ------------- LIABILITIES: Unrealized depreciation on forward foreign currency contracts................................................ -- -- Bank overdraft -- U.S. Dollars............................. -- -- Bank overdraft -- foreign cash............................. -- -- Payable upon return of securities loaned (Note 2d)......... 213,868 -- Payables: Investment securities purchased.......................... 36,138 16 Fund shares redeemed..................................... 4,049 322 Investment advisory and management fees (Note 3)......... 174 7 Dividends................................................ -- -- Distribution fees (Note 3)............................... 138 18 Variation margin......................................... -- -- Accrued expenses........................................... 572 54 Other liabilities.......................................... -- -- Written options............................................ -- -- ------------- ------------- Total liabilities........................................... 254,939 417 ------------- ------------- Net assets.................................................. $ 1,689,386 $ 201,440 ============= ============= SUMMARY OF NET ASSETS: Capital stock and paid-in-capital........................... $ 1,611,961 $ 175,275 Accumulated undistributed (distribution in excess of) net investment income (loss)................................... 3,002 -- Accumulated net realized gain (loss) on investments and foreign currency transactions.............................. (788) 4,105 Unrealized appreciation (depreciation) of investments and the translations of assets and liabilities denominated in foreign currency........................................... 75,211 22,060 ------------- ------------- Net assets.................................................. $ 1,689,386 $ 201,440 ============= ============= Shares authorized........................................... 910,000 500,000 ------------- ------------- Par value................................................... 0.001 0.001 ------------- ------------- CLASS A: Net asset value per share/Maximum offering price per share.......................................... $16.74/$17.71 $13.21/$13.98 ------------- ------------- Shares outstanding................................... 66,344 8,793 ------------- ------------- Net assets........................................... $ 1,110,324 $ 116,198 ------------- ------------- CLASS B: Net asset value per share.......................... $ 16.57 $ 13.10 ------------- ------------- Shares outstanding................................... 20,631 2,541 ------------- ------------- Net assets........................................... $ 341,772 $ 33,295 ------------- ------------- CLASS C: Net asset value per share.......................... $ 16.73 $ 13.10 ------------- ------------- Shares outstanding................................... 13,127 3,965 ------------- ------------- Net assets........................................... $ 219,580 $ 51,936 ------------- ------------- CLASS E: See page 266 for NAV, Shares outstanding and Net assets............................................. -- -- ------------- ------------- CLASS H: See page 266 for NAV, Shares outstanding and Net assets............................................. -- -- ------------- ------------- CLASS I: Net asset value per share/Maximum offering price per share.......................................... $ -- $ 13.22 ------------- ------------- Shares outstanding................................... -- 1 ------------- ------------- Net assets........................................... $ -- $ 11 ------------- ------------- CLASS L: See page 266 for NAV, Shares outstanding and Net assets............................................. -- -- ------------- ------------- CLASS M: See page 266 for NAV, Shares outstanding and Net assets............................................. -- -- ------------- ------------- CLASS N: See page 266 for NAV, Shares outstanding and Net assets............................................. -- -- ------------- ------------- CLASS Y: Net asset value per share.......................... $ 16.91 $ -- ------------- ------------- Shares outstanding................................... 1,048 -- ------------- ------------- Net assets........................................... $ 17,710 $ -- ------------- ------------- CLASS Z: See page 266 for NAV, Shares outstanding and Net assets............................................. -- -- ------------- ------------- @ Cost of securities........................................ $ 1,841,178 $ 179,346 ------------- ------------- @ Market value of securities on loan........................ $ 209,820 $ -- ------------- ------------- + Cash held as collateral on loaned securities.............. $ 1 $ -- ------------- ------------- # Cost of foreign currency on deposit with custodian........ $ -- $ -- ------------- -------------
* Relates to investments in affiliated investment companies. The accompanying notes are an integral part of these financial statements. 256 --------------------------------------------------------------------------------
BALANCED CAPITAL CAPITAL CONSERVATIVE DIVIDEND EQUITY ALLOCATION BALANCED APPRECIATION APPRECIATION II ALLOCATION DISCIPLINED AND GROWTH INCOME FUND INCOME FUND FUND FUND FUND EQUITY FUND FUND FUND ------------- ------------- ------------- --------------- ------------- ------------- ------------- ------------- $ 732,932* $ 12,546 $ 15,878,475 $ 365,759 $ 150,321* $ 424,739 $ 3,492,252 $ 643,686 -- 10 11 5 -- 1 -- -- -- -- 3,646 4 -- -- -- -- -- -- -- 2 -- -- -- -- -- 49 50,611 6,042 91 278 16,661 -- 2,176 151 52,804 7,035 311 186 6,013 2,215 37 94 11,425 291 -- 426 3,713 776 -- 1 -- -- -- -- -- -- 74 43 341 97 41 64 107 93 ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- 735,219 12,894 15,997,313 379,235 150,764 425,694 3,518,746 646,770 ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- -- -- 1 4 -- -- -- -- -- -- -- -- -- -- -- -- -- 8 -- -- -- -- -- -- -- -- 1,398,095 -- -- -- 49,371 -- 144 548 7,926 7,250 -- 985 21,844 2,570 820 10 15,755 234 297 649 3,265 1,805 22 1 1,574 59 5 56 357 82 -- -- -- -- -- -- -- -- 65 1 1,178 30 13 19 221 39 -- -- -- -- -- -- -- -- 133 4 3,735 138 30 114 850 141 -- -- -- -- -- -- -- -- -- -- -- -- -- 56 -- -- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- 1,184 572 1,428,264 7,715 345 1,879 75,908 4,637 ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- $ 734,035 $ 12,322 $ 14,569,049 $ 371,520 $ 150,419 $ 423,815 $ 3,442,838 $ 642,133 ============= ============= ============= ============= ============= ============= ============= ============= $ 665,669 $ 11,866 $ 11,315,532 $ 339,968 $ 140,379 $ 428,655 $ 2,607,187 $ 530,653 495 42 24,853 (194) 262 1,454 920 665 16,851 (22) 1,154,014 7,408 3,599 (61,205) 212,593 26,372 51,020 436 2,074,650 24,338 6,179 54,911 622,138 84,443 ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- $ 734,035 $ 12,322 $ 14,569,049 $ 371,520 $ 150,419 $ 423,815 $ 3,442,838 $ 642,133 ============= ============= ============= ============= ============= ============= ============= ============= 500,000 800,000 820,000 1,000,000 500,000 450,000 700,000 500,000 ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- 0.001 0.001 0.001 0.001 0.001 0.001 0.001 0.001 ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- $12.01/$12.71 $10.42/$11.03 $39.67/$41.98 $13.13/$13.89 $11.16/$11.81 $13.19/$13.96 $21.48/$22.73 $14.00/$14.81 ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- 37,760 1,105 234,783 18,373 8,378 14,358 122,283 37,820 ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- $ 453,492 $ 11,513 $ 9,312,766 $ 241,238 $ 93,504 $ 189,375 $ 2,626,634 $ 529,664 ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- $ 11.98 $ 10.41 $ 36.25 $ 12.99 $ 11.16 $ 12.53 $ 21.17 $ 13.97 ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- 9,107 29 51,537 2,246 1,862 2,847 17,272 3,092 ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- $ 109,117 $ 304 $ 1,868,359 $ 29,169 $ 20,782 $ 35,673 $ 365,678 $ 43,198 ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- $ 11.98 $ 10.41 $ 36.40 $ 13.00 $ 11.15 $ 12.54 $ 21.13 $ 13.99 ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- 14,285 39 81,547 7,515 3,238 2,324 15,006 4,402 ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- $ 171,073 $ 400 $ 2,968,472 $ 97,678 $ 36,123 $ 29,153 $ 317,139 $ 61,572 ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- -- -- -- -- -- -- -- -- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- -- -- -- -- -- -- -- -- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- $ 12.00 $ -- $ 39.69 $ 13.14 $ 11.16 $ -- $ 21.46 $ 13.99 ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- 29 -- 131 252 1 -- -- 8 ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- $ 353 $ -- $ 5,193 $ 3,316 $ 10 $ -- $ 11 $ 106 ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- -- -- -- -- -- -- -- -- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- -- -- -- -- -- -- -- -- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- -- -- -- -- -- -- -- -- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- $ -- $ 10.42 $ 42.19 $ 13.20 $ -- $ 13.58 $ 21.72 $ 14.07 ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- -- 10 9,819 9 -- 12,487 6,140 539 ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- $ -- $ 105 $ 414,259 $ 119 $ -- $ 169,614 $ 133,376 $ 7,593 ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- -- -- -- -- -- -- -- -- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- $ 681,912 $ 12,110 $ 13,803,895 $ 341,423 $ 144,142 $ 369,825 $ 2,870,114 $ 559,243 ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- $ -- $ -- $ 1,377,652 $ -- $ -- $ -- $ 48,353 $ -- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- $ -- $ -- $ 1 $ -- $ -- $ -- $ -- $ -- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- $ -- $ -- $ 3,579 $ 4 $ -- $ -- $ -- $ -- ------------- ------------- ------------- ------------- ------------- ------------- ------------- -------------
257 THE HARTFORD MUTUAL FUNDS, INC. AND THE HARTFORD MUTUAL FUNDS II, INC. STATEMENT OF ASSETS AND LIABILITIES -- (CONTINUED) OCTOBER 31, 2006 (000'S OMITTED) --------------------------------------------------------------------------------
FLOATING FOCUS RATE FUND FUND ------------- ------------- ASSETS: Investments in securities, at value; (amortized cost for Money Market)@........................................... $ 2,568,123 $ 67,181 Cash+...................................................... 2 1 Foreign currency on deposit with custodian#................ -- -- Unrealized appreciation in forward foreign currency contracts................................................ -- -- Receivables: Investment securities sold............................... 5,757 672 Fund shares sold......................................... 81,712 27 Dividends and interest................................... 20,241 84 Variation margin......................................... -- -- Other assets............................................. 295 25 ------------- ------------- Total assets................................................ 2,676,130 67,990 ------------- ------------- LIABILITIES: Unrealized depreciation on forward foreign currency contracts................................................ -- -- Bank overdraft -- U.S. Dollars............................. -- -- Bank overdraft -- foreign cash............................. -- -- Payable upon return of securities loaned (Note 2d)......... -- -- Payables: Investment securities purchased.......................... 179,396 833 Fund shares redeemed..................................... 11,906 179 Investment advisory and management fees (Note 3)......... 244 11 Dividends................................................ -- -- Distribution fees (Note 3)............................... 201 6 Variation margin......................................... -- -- Accrued expenses........................................... 196 32 Other liabilities.......................................... -- -- Written options............................................ -- -- ------------- ------------- Total liabilities........................................... 191,943 1,061 ------------- ------------- Net assets.................................................. $ 2,484,187 $ 66,929 ============= ============= SUMMARY OF NET ASSETS: Capital stock and paid-in-capital........................... $ 2,487,608 $ 67,508 Accumulated undistributed (distribution in excess of) net investment income (loss)................................... 2,092 -- Accumulated net realized gain (loss) on investments and foreign currency transactions.............................. (1,243) (1,530) Unrealized appreciation (depreciation) of investments and the translations of assets and liabilities denominated in foreign currency........................................... (4,270) 951 ------------- ------------- Net assets.................................................. $ 2,484,187 $ 66,929 ============= ============= Shares authorized........................................... 1,000,000 300,000 ------------- ------------- Par value................................................... 0.001 0.001 ------------- ------------- CLASS A: Net asset value per share/Maximum offering price per share.......................................... $10.11/$10.42 $11.02/$11.66 ------------- ------------- Shares outstanding................................... 148,362 3,650 ------------- ------------- Net assets........................................... $ 1,500,394 $ 40,215 ------------- ------------- CLASS B: Net asset value per share.......................... $ 10.11 $ 10.66 ------------- ------------- Shares outstanding................................... 4,174 1,235 ------------- ------------- Net assets........................................... $ 42,182 $ 13,162 ------------- ------------- CLASS C: Net asset value per share.......................... $ 10.11 $ 10.67 ------------- ------------- Shares outstanding................................... 82,020 1,225 ------------- ------------- Net assets........................................... $ 828,910 $ 13,065 ------------- ------------- CLASS E: See page 266 for NAV, Shares outstanding and Net assets............................................. -- -- ------------- ------------- CLASS H: See page 266 for NAV, Shares outstanding and Net assets............................................. -- -- ------------- ------------- CLASS I: Net asset value per share/Maximum offering price per share.......................................... $ 10.11 $ -- ------------- ------------- Shares outstanding................................... 6,112 -- ------------- ------------- Net assets........................................... $ 61,805 $ -- ------------- ------------- CLASS L: See page 266 for NAV, Shares outstanding and Net assets............................................. -- -- ------------- ------------- CLASS M: See page 266 for NAV, Shares outstanding and Net assets............................................. -- -- ------------- ------------- CLASS N: See page 266 for NAV, Shares outstanding and Net assets............................................. -- -- ------------- ------------- CLASS Y: Net asset value per share.......................... $ 10.11 $ 11.22 ------------- ------------- Shares outstanding................................... 5,036 43 ------------- ------------- Net assets........................................... $ 50,896 $ 487 ------------- ------------- CLASS Z: See page 266 for NAV, Shares outstanding and Net assets............................................. -- -- ------------- ------------- @ Cost of securities........................................ $ 2,572,393 $ 66,231 ------------- ------------- @ Market value of securities on loan........................ $ -- $ -- ------------- ------------- + Cash held as collateral on loaned securities.............. $ -- $ -- ------------- ------------- # Cost of foreign currency on deposit with custodian........ $ -- $ -- ------------- -------------
* Relates to investments in affiliated investment companies. The accompanying notes are an integral part of these financial statements. 258 --------------------------------------------------------------------------------
GLOBAL GLOBAL GLOBAL GROWTH COMMUNICATIONS FINANCIAL SERVICES GLOBAL HEALTH GLOBAL LEADERS TECHNOLOGY ALLOCATION GROWTH FUND FUND FUND FUND FUND FUND FUND -------------- ------------------ ------------- -------------- ----------- ------------- ------------- $ 29,979 $ 32,925 $ 846,377 $ 807,262 $ 60,026 $ 658,559* $ 1,315,898 -- -- -- 1 1 -- -- -- -- 51 -- 67 -- -- -- 6 2 14 -- -- -- 330 841 4,559 15,274 1,523 -- 7,963 7 42 3,072 246 481 1,873 1,858 112 15 1,220 1,008 17 -- 286 -- -- -- -- -- -- -- 32 28 69 196 182 78 116 ----------- ------------- ------------- ------------- ----------- ------------- ------------- 30,460 33,857 855,350 824,001 62,297 660,510 1,326,121 ----------- ------------- ------------- ------------- ----------- ------------- ------------- -- 2 -- 36 -- -- -- -- -- -- -- -- -- -- 20 -- -- 45 -- -- -- 2,591 1,765 105,310 85,242 1,610 -- 35,675 284 1,843 6,518 9,155 1,699 84 8,384 9 4 755 1,059 116 847 2,436 4 5 120 98 10 20 156 -- -- -- -- -- -- -- 2 2 45 41 5 63 68 -- -- -- -- -- -- -- 22 14 188 289 46 146 342 -- 1 -- -- -- -- -- -- -- -- -- -- -- -- ----------- ------------- ------------- ------------- ----------- ------------- ------------- 2,932 3,636 112,936 95,965 3,486 1,160 47,061 ----------- ------------- ------------- ------------- ----------- ------------- ------------- $ 27,528 $ 30,221 $ 742,414 $ 728,036 $ 58,811 $ 659,350 $ 1,279,060 =========== ============= ============= ============= =========== ============= ============= $ 25,338 $ 23,032 $ 614,270 $ 589,647 $ 103,250 $ 585,950 $ 1,107,610 368 180 -- (1,589) -- -- -- (108) 1,682 27,288 31,351 (51,636) 14,413 84,133 1,930 5,327 100,856 108,627 7,197 58,987 87,317 ----------- ------------- ------------- ------------- ----------- ------------- ------------- $ 27,528 $ 30,221 $ 742,414 $ 728,036 $ 58,811 $ 659,350 $ 1,279,060 =========== ============= ============= ============= =========== ============= ============= 300,000 300,000 500,000 450,000 300,000 500,000 27,000,000 ----------- ------------- ------------- ------------- ----------- ------------- ------------- 0.001 0.001 0.001 0.001 0.001 0.001 0.0001 ----------- ------------- ------------- ------------- ----------- ------------- ------------- $8.05/$8.52 $14.01/$14.83 $17.84/$18.88 $19.35/$20.48 $5.67/$6.00 $12.66/$13.40 $18.45/$19.52 ----------- ------------- ------------- ------------- ----------- ------------- ------------- 2,122 1,525 20,751 21,593 5,894 29,222 38,329 ----------- ------------- ------------- ------------- ----------- ------------- ------------- $ 17,091 $ 21,369 $ 370,285 $ 417,840 $ 33,424 $ 370,088 $ 707,000 ----------- ------------- ------------- ------------- ----------- ------------- ------------- $ 7.81 $ 13.74 $ 16.92 $ 18.23 $ 5.41 $ 12.57 $ 16.25 ----------- ------------- ------------- ------------- ----------- ------------- ------------- 528 279 4,762 4,104 2,355 8,578 2,711 ----------- ------------- ------------- ------------- ----------- ------------- ------------- $ 4,124 $ 3,828 $ 80,574 $ 74,805 $ 12,729 $ 107,818 $ 44,064 ----------- ------------- ------------- ------------- ----------- ------------- ------------- $ 7.80 $ 13.73 $ 16.93 $ 18.31 $ 5.40 $ 12.57 $ 16.29 ----------- ------------- ------------- ------------- ----------- ------------- ------------- 682 297 5,786 3,610 2,135 14,438 5,246 ----------- ------------- ------------- ------------- ----------- ------------- ------------- $ 5,321 $ 4,082 $ 97,956 $ 66,121 $ 11,521 $ 181,434 $ 85,469 ----------- ------------- ------------- ------------- ----------- ------------- ------------- -- -- -- -- -- -- -- ----------- ------------- ------------- ------------- ----------- ------------- ------------- -- -- -- -- -- -- -- ----------- ------------- ------------- ------------- ----------- ------------- ------------- $ -- $ -- $ 17.86 $ -- $ -- $ 12.67 $ 18.46 ----------- ------------- ------------- ------------- ----------- ------------- ------------- -- -- 44 -- -- 1 106 ----------- ------------- ------------- ------------- ----------- ------------- ------------- $ -- $ -- $ 785 $ -- $ -- $ 10 $ 1,961 ----------- ------------- ------------- ------------- ----------- ------------- ------------- -- -- -- -- -- -- -- ----------- ------------- ------------- ------------- ----------- ------------- ------------- -- -- -- -- -- -- -- ----------- ------------- ------------- ------------- ----------- ------------- ------------- -- -- -- -- -- -- -- ----------- ------------- ------------- ------------- ----------- ------------- ------------- $ 8.23 $ 14.16 $ 18.57 $ 20.14 $ 5.82 $ -- $ 18.89 ----------- ------------- ------------- ------------- ----------- ------------- ------------- 121 66 10,381 8,403 195 -- 6,914 ----------- ------------- ------------- ------------- ----------- ------------- ------------- $ 992 $ 942 $ 192,814 $ 169,270 $ 1,137 $ -- $ 130,594 ----------- ------------- ------------- ------------- ----------- ------------- ------------- -- -- -- -- -- -- -- ----------- ------------- ------------- ------------- ----------- ------------- ------------- $ 28,051 $ 27,599 $ 745,525 $ 698,671 $ 52,829 $ 599,572 $ 1,228,581 ----------- ------------- ------------- ------------- ----------- ------------- ------------- $ 2,523 $ 1,677 $ 102,006 $ 81,184 $ 1,601 $ -- $ 34,808 ----------- ------------- ------------- ------------- ----------- ------------- ------------- $ -- $ -- $ -- $ -- $ -- $ -- $ -- ----------- ------------- ------------- ------------- ----------- ------------- ------------- $ -- $ -- $ 50 $ -- $ 67 $ -- $ -- ----------- ------------- ------------- ------------- ----------- ------------- ------------- GROWTH OPPORTUNITIES FUND ------------- $ 1,345,994 -- -- -- 9,793 1,828 569 -- 336 ------------- 1,358,520 ------------- -- -- 5 93,925 21,182 1,521 151 -- 64 -- 307 -- -- ------------- 117,155 ------------- $ 1,241,365 ============= $ 1,008,968 -- 87,040 145,357 ------------- $ 1,241,365 ============= 23,750,000 ------------- 0.0001 ------------- $29.33/$31.04 ------------- 14,329 ------------- $ 420,220 ------------- $ 25.23 ------------- 1,334 ------------- $ 33,670 ------------- $ 25.24 ------------- 1,877 ------------- $ 47,366 ------------- -- ------------- -- ------------- $ 29.34 ------------- 3 ------------- $ 74 ------------- -- ------------- -- ------------- -- ------------- $ 30.04 ------------- 2,453 ------------- $ 73,685 ------------- -- ------------- $ 1,200,638 ------------- $ 90,613 ------------- $ -- ------------- $ -- -------------
259 THE HARTFORD MUTUAL FUNDS, INC. AND THE HARTFORD MUTUAL FUNDS II, INC. STATEMENT OF ASSETS AND LIABILITIES -- (CONTINUED) OCTOBER 31, 2006 (000'S OMITTED) --------------------------------------------------------------------------------
INCOME HIGH YIELD ALLOCATION FUND FUND ----------- ------------ ASSETS: Investments in securities, at value; (amortized cost for Money Market)@........................................... $ 350,515 $ 38,917* Cash+...................................................... -- -- Foreign currency on deposit with custodian#................ 131 -- Unrealized appreciation in forward foreign currency contracts................................................ 81 -- Receivables: Investment securities sold............................... 5,550 -- Fund shares sold......................................... 219 92 Dividends and interest................................... 6,651 10 Variation margin......................................... -- -- Other assets............................................... 48 36 ----------- ------------ Total assets................................................ 363,195 39,055 ----------- ------------ LIABILITIES: Unrealized depreciation on forward foreign currency contracts................................................ 35 -- Bank overdraft -- U.S. Dollars............................. 1,461 -- Bank overdraft -- foreign cash............................. -- -- Payable upon return of securities loaned (Note 2d)......... 60,694 -- Payables: Investment securities purchased.......................... 8,474 42 Fund shares redeemed..................................... 328 46 Investment advisory and management fees (Note 3)......... 36 1 Dividends................................................ -- -- Distribution fees (Note 3)............................... 20 3 Variation margin......................................... -- -- Accrued expenses........................................... 114 12 Other liabilities.......................................... -- -- Written options............................................ -- -- ----------- ------------ Total liabilities........................................... 71,162 104 ----------- ------------ Net assets.................................................. $ 292,033 $ 38,951 =========== ============ SUMMARY OF NET ASSETS: Capital stock and paid-in-capital........................... $ 370,696 $ 39,574 Accumulated undistributed (distribution in excess of) net investment income (loss)................................... 42 5 Accumulated net realized gain (loss) on investments and foreign currency transactions.............................. (82,021) (445) Unrealized appreciation (depreciation) of investments and the translations of assets and liabilities denominated in foreign currency........................................... 3,316 (183) ----------- ------------ Net assets.................................................. $ 292,033 $ 38,951 =========== ============ Shares authorized........................................... 450,000 500,000 ----------- ------------ Par value................................................... 0.001 0.001 ----------- ------------ CLASS A: Net asset value per share/Maximum offering price per share.......................................... $7.93/$8.30 $9.89/$10.36 ----------- ------------ Shares outstanding................................... 24,012 2,567 ----------- ------------ Net assets........................................... $ 190,479 $ 25,383 ----------- ------------ CLASS B: Net asset value per share.......................... $ 7.92 $ 9.88 ----------- ------------ Shares outstanding.................................. 4,697 558 ----------- ------------ Net assets.......................................... $ 37,189 $ 5,516 ----------- ------------ CLASS C: Net asset value per share.......................... $ 7.92 $ 9.88 ----------- ------------ Shares outstanding................................... 5,048 814 ----------- ------------ Net assets........................................... $ 39,991 $ 8,042 ----------- ------------ CLASS E: See page 266 for NAV, Shares outstanding and Net assets............................................. -- -- ----------- ------------ CLASS H: See page 266 for NAV, Shares outstanding and Net assets............................................. -- -- ----------- ------------ CLASS I: Net asset value per share/Maximum offering price per share.......................................... $ -- $ 9.89 ----------- ------------ Shares outstanding................................... -- 1 ----------- ------------ Net assets........................................... $ -- $ 10 ----------- ------------ CLASS L: See page 266 for NAV, Shares outstanding and Net assets............................................. -- -- ----------- ------------ CLASS M: See page 266 for NAV, Shares outstanding and Net assets............................................. -- -- ----------- ------------ CLASS N: See page 266 for NAV, Shares outstanding and Net assets............................................. -- -- ----------- ------------ CLASS Y: Net asset value per share.......................... $ 7.92 $ -- ----------- ------------ Shares outstanding................................... 3,077 -- ----------- ------------ Net assets........................................... $ 24,374 $ -- ----------- ------------ CLASS Z: See page 266 for NAV, Shares outstanding and Net assets............................................. -- -- @ Cost of securities........................................ $ 347,248 $ 39,100 ----------- ------------ @ Market value of securities on loan........................ $ 57,737 $ -- ----------- ------------ + Cash held as collateral on loaned securities.............. $ -- $ -- ----------- ------------ # Cost of foreign currency on deposit with custodian........ $ 129 $ -- ----------- ------------
* Relates to investments in affiliated investment companies. The accompanying notes are an integral part of these financial statements. 260 --------------------------------------------------------------------------------
INTERNATIONAL INTERNATIONAL INTERNATIONAL INCOME INFLATION PLUS CAPITAL APPRECIATION OPPORTUNITIES SMALL COMPANY MIDCAP MIDCAP FUND FUND FUND FUND FUND FUND GROWTH FUND ------------- -------------- -------------------- ------------- ------------- ------------- ------------- $ 114,776 $ 772,329 $ 448,089 $ 301,770 $ 229,390 $ 3,046,197 $ 11,164 109 -- 1 -- -- 1 -- -- -- 59 73 3 -- -- 20 404 8 8 6 4 -- 1,176 13,919 11,893 4,686 645 17,804 182 171 454 884 612 598 1,979 27 1,397 3,980 384 559 299 1,164 -- 27 -- -- -- -- -- -- 52 80 69 97 42 79 48 ------------- ------------- ------------- ------------- ------------- ------------- ------------- 117,728 791,166 461,387 307,805 230,983 3,067,228 11,421 ------------- ------------- ------------- ------------- ------------- ------------- ------------- 64 507 25 55 1 -- -- -- -- -- -- 4 -- -- -- -- -- -- -- -- -- -- -- 92,173 50,091 41,963 72,566 -- 4,390 24,623 8,121 3,969 1,412 19,204 321 43 3,090 291 548 338 3,971 -- 11 73 59 35 30 360 1 -- -- -- -- -- -- -- 4 67 22 15 8 233 1 11 23 -- -- -- -- -- 22 176 135 104 76 857 4 -- -- -- -- -- -- -- -- -- -- -- -- -- -- ------------- ------------- ------------- ------------- ------------- ------------- ------------- 4,545 28,559 100,826 54,817 43,832 97,191 327 ------------- ------------- ------------- ------------- ------------- ------------- ------------- $ 113,183 $ 762,607 $ 360,561 $ 252,988 $ 187,151 $ 2,970,037 $ 11,094 ============= ============= ============= ============= ============= ============= ============= $ 113,130 $ 787,340 $ 283,676 $ 217,900 $ 145,669 $ 2,126,916 $ 10,439 54 4,125 (154) 1,721 2,242 -- 1 (602) (18,352) 28,532 5,078 23,135 479,588 81 601 (10,506) 48,507 28,289 16,105 363,533 573 ------------- ------------- ------------- ------------- ------------- ------------- ------------- $ 113,183 $ 762,607 $ 360,561 $ 252,988 $ 187,151 $ 2,970,037 $ 11,094 ============= ============= ============= ============= ============= ============= ============= 300,000 600,000 500,000 450,000 300,000 460,000 800,000 ------------- ------------- ------------- ------------- ------------- ------------- ------------- 0.001 0.001 0.001 0.001 0.001 0.001 0.001 ------------- ------------- ------------- ------------- ------------- ------------- ------------- $10.33/$10.82 $10.44/$10.93 $14.93/$15.80 $16.13/$17.07 $16.19/$17.13 $25.31/$26.78 $10.63/$11.25 ------------- ------------- ------------- ------------- ------------- ------------- ------------- 3,598 27,054 14,275 9,862 4,323 72,603 972 ------------- ------------- ------------- ------------- ------------- ------------- ------------- $ 37,168 $ 282,362 $ 213,186 $ 159,087 $ 69,998 $ 1,837,361 $ 10,334 ------------- ------------- ------------- ------------- ------------- ------------- ------------- $ 10.33 $ 10.45 $ 14.42 $ 15.14 $ 15.72 $ 23.35 $ 10.61 ------------- ------------- ------------- ------------- ------------- ------------- ------------- 699 8,839 2,306 1,924 761 19,253 28 ------------- ------------- ------------- ------------- ------------- ------------- ------------- $ 7,224 $ 92,340 $ 33,252 $ 29,125 $ 11,960 $ 449,488 $ 297 ------------- ------------- ------------- ------------- ------------- ------------- ------------- $ 10.35 $ 10.44 $ 14.42 $ 15.01 $ 15.55 $ 23.47 $ 10.61 ------------- ------------- ------------- ------------- ------------- ------------- ------------- 783 23,667 3,006 1,384 1,189 21,267 34 ------------- ------------- ------------- ------------- ------------- ------------- ------------- $ 8,101 $ 247,091 $ 43,336 $ 20,782 $ 18,486 $ 499,039 $ 357 ------------- ------------- ------------- ------------- ------------- ------------- ------------- -- -- -- -- -- -- -- ------------- ------------- ------------- ------------- ------------- ------------- ------------- -- -- -- -- -- -- -- ------------- ------------- ------------- ------------- ------------- ------------- ------------- $ -- $ 10.44 $ 14.94 $ -- $ -- $ -- $ -- ------------- ------------- ------------- ------------- ------------- ------------- ------------- 2 1 -- -- -- -- ------------- ------------- ------------- ------------- ------------- ------------- ------------- $ -- $ 18 $ 10 $ -- $ -- $ -- $ -- ------------- ------------- ------------- ------------- ------------- ------------- ------------- -- -- -- -- -- -- -- ------------- ------------- ------------- ------------- ------------- ------------- ------------- -- -- -- -- -- -- -- ------------- ------------- ------------- ------------- ------------- ------------- ------------- -- -- -- -- -- -- -- ------------- ------------- ------------- ------------- ------------- ------------- ------------- $ 10.32 $ 10.45 $ 15.17 $ 16.67 $ 16.37 $ 26.68 $ 10.64 ------------- ------------- ------------- ------------- ------------- ------------- ------------- 5,879 13,471 4,664 2,639 5,297 6,901 10 ------------- ------------- ------------- ------------- ------------- ------------- ------------- $ 60,690 $ 140,796 $ 70,777 $ 43,994 $ 86,707 $ 184,149 $ 106 ------------- ------------- ------------- ------------- ------------- ------------- ------------- -- -- -- -- -- -- -- $ 114,134 $ 782,665 $ 399,566 $ 273,443 $ 213,288 $ 2,682,667 $ 10,591 ------------- ------------- ------------- ------------- ------------- ------------- ------------- $ -- $ -- $ 87,928 $ 47,677 $ 39,811 $ 70,622 $ -- ------------- ------------- ------------- ------------- ------------- ------------- ------------- $ -- $ -- $ -- $ -- $ -- $ -- $ -- ------------- ------------- ------------- ------------- ------------- ------------- ------------- $ -- $ -- $ 60 $ 73 $ 3 $ -- $ -- ------------- ------------- ------------- ------------- ------------- ------------- ------------- MIDCAP VALUE FUND ------------- $ 498,912 -- -- -- 2,639 45 164 -- 33 ------------- 501,793 ------------- -- -- -- 35,132 3,899 522 65 -- 33 -- 158 -- -- ------------- 39,809 ------------- $ 461,984 ============= $ 331,831 -- 58,613 71,540 ------------- $ 461,984 ============= 300,000 ------------- 0.001 ------------- $14.57/$15.42 ------------- 20,935 ------------- $ 305,002 ------------- $ 13.93 ------------- 4,493 ------------- $ 62,580 ------------- $ 13.93 ------------- 4,543 ------------- $ 63,302 ------------- -- ------------- -- ------------- $ -- ------------- -- ------------- $ -- ------------- -- ------------- -- ------------- -- ------------- $ 15.00 ------------- 2,073 ------------- $ 31,100 ------------- -- $ 427,372 ------------- $ 34,370 ------------- $ -- ------------- $ -- -------------
261 THE HARTFORD MUTUAL FUNDS, INC. AND THE HARTFORD MUTUAL FUNDS II, INC. STATEMENT OF ASSETS AND LIABILITIES -- (CONTINUED) OCTOBER 31, 2006 (000'S OMITTED) --------------------------------------------------------------------------------
RETIREMENT MONEY MARKET INCOME FUND FUND ------------ ------------ ASSETS: Investments in securities, at value; (amortized cost for Money Market)@........................................... $ 268,870 $ 842* Cash+...................................................... 102 -- Foreign currency on deposit with custodian#................ -- -- Unrealized appreciation in forward foreign currency contracts................................................ -- -- Receivables: Investment securities sold............................... -- -- Fund shares sold......................................... 738 -- Dividends and interest................................... 453 -- Variation margin......................................... -- -- Other assets............................................... 57 31 ----------- ------------ Total assets................................................ 270,220 873 ----------- ------------ LIABILITIES: Unrealized depreciation on forward foreign currency contracts................................................ -- -- Bank overdraft -- U.S. Dollars............................. -- -- Bank overdraft -- foreign cash............................. -- -- Payable upon return of securities loaned (Note 2d)......... -- -- Payables: Investment securities purchased.......................... 3,242 -- Fund shares redeemed..................................... 602 -- Investment advisory and management fees (Note 3)......... 22 -- Dividends................................................ 32 -- Distribution fees (Note 3)............................... 16 -- Variation margin......................................... -- -- Accrued expenses........................................... 94 5 Other liabilities.......................................... -- -- Written options............................................ -- -- ----------- ------------ Total liabilities........................................... 4,008 5 ----------- ------------ Net assets.................................................. $ 266,212 $ 868 =========== ============ SUMMARY OF NET ASSETS: Capital stock and paid-in-capital........................... $ 266,212 $ 854 Accumulated undistributed (distribution in excess of) net investment income (loss)................................... -- -- Accumulated net realized gain (loss) on investments and foreign currency transactions.............................. -- (1) Unrealized appreciation (depreciation) of investments and the translations of assets and liabilities denominated in foreign currency........................................... -- 15 ----------- ------------ Net assets.................................................. $ 266,212 $ 868 =========== ============ Shares authorized........................................... 2,850,000 950,000 ----------- ------------ Par value................................................... 0.001 0.001 ----------- ------------ CLASS A: Net asset value per share/Maximum offering price per share.......................................... $1.00/$1.00 $9.59/$10.15 ----------- ------------ Shares outstanding................................... 207,592 44 ----------- ------------ Net assets........................................... $ 207,592 $ 420 ----------- ------------ CLASS B: Net asset value per share.......................... $ 1.00 $ 9.59 ----------- ------------ Shares outstanding.................................. 27,995 18 ----------- ------------ Net assets.......................................... $ 27,995 $ 173 ----------- ------------ CLASS C: Net asset value per share.......................... $ 1.00 $ 9.61 ----------- ------------ Shares outstanding................................... 16,997 17 ----------- ------------ Net assets........................................... $ 16,997 $ 161 ----------- ------------ CLASS E: See page 266 for NAV, Shares outstanding and Net assets............................................. -- -- ----------- ------------ CLASS H: See page 266 for NAV, Shares outstanding and Net assets............................................. -- -- ----------- ------------ CLASS I: Net asset value per share/Maximum offering price per share.......................................... $ -- $ -- ----------- ------------ Shares outstanding................................... -- -- ----------- ------------ Net assets........................................... $ -- $ -- ----------- ------------ CLASS L: See page 266 for NAV, Shares outstanding and Net assets............................................. -- -- ----------- ------------ CLASS M: See page 266 for NAV, Shares outstanding and Net assets............................................. -- -- ----------- ------------ CLASS N: See page 266 for NAV, Shares outstanding and Net assets............................................. -- -- ----------- ------------ CLASS Y: Net asset value per share.......................... $ 1.00 $ 9.60 ----------- ------------ Shares outstanding................................... 13,628 12 ----------- ------------ Net assets........................................... $ 13,628 $ 114 ----------- ------------ CLASS Z: See page 266 for NAV, Shares outstanding and Net assets............................................. -- -- ----------- ------------ @ Cost of securities........................................ $ 268,870 $ 827 ----------- ------------ @ Market value of securities on loan........................ $ -- $ -- ----------- ------------ + Cash held as collateral on loaned securities.............. $ -- $ -- ----------- ------------ # Cost of foreign currency on deposit with custodian........ $ -- $ -- ----------- ------------
* Relates to investments in affiliated investment companies. The accompanying notes are an integral part of these financial statements. 262 --------------------------------------------------------------------------------
SELECT MIDCAP SELECT MIDCAP SELECT SMALLCAP SELECT SMALLCAP SHORT DURATION SMALL COMPANY SMALLCAP GROWTH GROWTH FUND VALUE FUND GROWTH FUND VALUE FUND FUND FUND FUND ------------- ------------- --------------- --------------- -------------- ------------- --------------- $ 57,625 $ 78,644 $ 13,103 $ 17,919 $ 148,767 $ 485,433 $ 618,767 -- 971 30 211 1 1 1 -- -- -- -- -- -- -- -- -- -- -- -- -- -- 2,438 199 134 47 -- 13,179 15,480 9 89 -- 19 125 563 1,151 21 38 5 13 1,286 80 83 -- -- -- -- -- -- -- 54 46 58 41 51 117 172 ------------- ------------- ------------- ------------- ------------ ------------- ------------- 60,147 79,987 13,330 18,250 150,230 499,373 635,654 ------------- ------------- ------------- ------------- ------------ ------------- ------------- -- -- -- -- -- 2 -- -- -- -- -- -- -- -- -- -- -- -- -- 2 -- -- -- -- -- -- 87,081 87,207 81 285 78 240 -- 8,217 15,205 38 142 1 -- 117 601 487 9 13 2 3 13 55 69 -- -- -- -- -- -- -- 2 4 -- 1 5 25 27 -- -- -- 1 -- -- 20 21 27 14 7 29 115 155 -- -- -- -- -- -- -- -- -- -- -- -- -- -- ------------- ------------- ------------- ------------- ------------ ------------- ------------- 151 471 95 252 164 96,098 103,170 ------------- ------------- ------------- ------------- ------------ ------------- ------------- $ 59,996 $ 79,516 $ 13,235 $ 17,998 $ 150,066 $ 403,275 $ 532,484 ============= ============= ============= ============= ============ ============= ============= $ 56,896 $ 70,687 $ 12,526 $ 16,511 $ 152,953 $ 334,338 $ 503,599 -- -- -- 42 1 -- -- 1,758 2,750 (262) 129 (2,224) 32,931 (1,568) 1,342 6,079 971 1,316 (664) 36,006 30,453 ------------- ------------- ------------- ------------- ------------ ------------- ------------- $ 59,996 $ 79,516 $ 13,235 $ 17,998 $ 150,066 $ 403,275 $ 532,484 ============= ============= ============= ============= ============ ============= ============= 800,000 800,000 800,000 800,000 300,000 500,000 27,000,000 ------------- ------------- ------------- ------------- ------------ ------------- ------------- 0.001 0.001 0.001 0.001 0.001 0.001 0.0001 ------------- ------------- ------------- ------------- ------------ ------------- ------------- $11.28/$11.94 $12.41/$13.13 $10.53/$11.14 $10.96/$11.60 $9.89/$10.20 $21.58/$22.84 $31.32/$33.14 ------------- ------------- ------------- ------------- ------------ ------------- ------------- 2,087 3,863 692 1,449 2,701 9,018 7,304 ------------- ------------- ------------- ------------- ------------ ------------- ------------- $ 23,542 $ 47,937 $ 7,284 $ 15,872 $ 26,726 $ 194,656 $ 228,776 ------------- ------------- ------------- ------------- ------------ ------------- ------------- $ 11.14 $ 12.28 $ 10.46 $ 10.93 $ 9.90 $ 19.97 $ 28.12 ------------- ------------- ------------- ------------- ------------ ------------- ------------- 334 337 50 28 683 2,605 679 ------------- ------------- ------------- ------------- ------------ ------------- ------------- $ 3,725 $ 4,137 $ 526 $ 308 $ 6,760 $ 52,036 $ 19,078 ------------- ------------- ------------- ------------- ------------ ------------- ------------- $ 11.13 $ 12.28 $ 10.45 $ 10.93 $ 9.90 $ 20.00 $ 28.07 ------------- ------------- ------------- ------------- ------------ ------------- ------------- 347 604 64 26 1,453 2,388 857 ------------- ------------- ------------- ------------- ------------ ------------- ------------- $ 3,861 $ 7,417 $ 672 $ 280 $ 14,382 $ 47,744 $ 24,070 ------------- ------------- ------------- ------------- ------------ ------------- ------------- -- -- -- -- -- -- -- ------------- ------------- ------------- ------------- ------------ ------------- ------------- -- -- -- -- -- -- -- ------------- ------------- ------------- ------------- ------------ ------------- ------------- $ -- $ -- $ -- $ -- $ -- $ 21.59 $ 31.33 ------------- ------------- ------------- ------------- ------------ ------------- ------------- -- -- -- -- -- 3 8 ------------- ------------- ------------- ------------- ------------ ------------- ------------- $ -- $ -- $ -- $ -- $ -- $ 69 $ 239 ------------- ------------- ------------- ------------- ------------ ------------- ------------- -- -- -- -- -- -- -- ------------- ------------- ------------- ------------- ------------ ------------- ------------- -- -- -- -- -- -- -- ------------- ------------- ------------- ------------- ------------ ------------- ------------- -- -- -- -- -- -- -- ------------- ------------- ------------- ------------- ------------ ------------- ------------- $ 11.36 $ 12.40 $ 10.59 $ 10.97 $ 9.88 $ 22.73 $ 31.95 ------------- ------------- ------------- ------------- ------------ ------------- ------------- 2,541 1,615 449 140 10,341 4,786 3,377 ------------- ------------- ------------- ------------- ------------ ------------- ------------- $ 28,868 $ 20,025 $ 4,753 $ 1,538 $ 102,198 $ 108,770 $ 107,906 ------------- ------------- ------------- ------------- ------------ ------------- ------------- -- -- -- -- -- -- -- ------------- ------------- ------------- ------------- ------------ ------------- ------------- $ 56,283 $ 72,565 $ 12,132 $ 16,608 $ 149,431 $ 449,427 $ 588,649 ------------- ------------- ------------- ------------- ------------ ------------- ------------- $ -- $ -- $ -- $ -- $ -- $ 84,940 $ 84,992 ------------- ------------- ------------- ------------- ------------ ------------- ------------- $ -- $ -- $ -- $ -- $ -- $ -- $ -- ------------- ------------- ------------- ------------- ------------ ------------- ------------- $ -- $ -- $ -- $ -- $ -- $ -- $ -- ------------- ------------- ------------- ------------- ------------ ------------- ------------- STOCK FUND ------------- $ 1,302,964 -- -- 28 21,792 183 1,227 -- 66 ------------- 1,326,260 ------------- -- -- -- 99,232 22,207 2,374 146 -- 92 -- 531 -- -- ------------- 124,582 ------------- $ 1,201,678 ============= $ 1,447,523 4,107 (321,285) 71,333 ------------- $ 1,201,678 ============= 450,000 ------------- 0.001 ------------- $21.04/$22.26 ------------- 32,545 ------------- $ 684,726 ------------- $ 19.58 ------------- 11,419 ------------- $ 223,639 ------------- $ 19.73 ------------- 8,187 ------------- $ 161,554 ------------- -- ------------- -- ------------- $ -- ------------- -- ------------- $ -- ------------- -- ------------- -- ------------- -- ------------- $ 21.95 ------------- 6,002 ------------- $ 131,759 ------------- -- ------------- $ 1,231,649 ------------- $ 96,557 ------------- $ -- ------------- $ -- -------------
263 THE HARTFORD MUTUAL FUNDS, INC. AND THE HARTFORD MUTUAL FUNDS II, INC. STATEMENT OF ASSETS AND LIABILITIES -- (CONTINUED) OCTOBER 31, 2006 (000'S OMITTED) --------------------------------------------------------------------------------
TARGET TARGET RETIREMENT 2010 RETIREMENT 2020 FUND FUND --------------- --------------- ASSETS: Investments in securities, at value; (amortized cost for Money Market)@........................................... $ 2,418* $ 2,729* Cash+...................................................... -- -- Foreign currency on deposit with custodian#................ -- -- Unrealized appreciation in forward foreign currency contracts................................................ -- -- Receivables: Investment securities sold............................... -- -- Fund shares sold......................................... 4 -- Dividends and interest................................... -- -- Variation margin......................................... -- -- Other assets............................................... 43 42 ------------ ------------- Total assets................................................ 2,465 2,771 ------------ ------------- LIABILITIES: Unrealized depreciation on forward foreign currency contracts................................................ -- -- Bank overdraft -- U.S. Dollars............................. -- -- Bank overdraft -- foreign cash............................. -- -- Payable upon return of securities loaned (Note 2d)......... -- -- Payables: Investment securities purchased.......................... 4 -- Fund shares redeemed..................................... -- -- Investment advisory and management fees (Note 3)......... -- -- Dividends................................................ -- -- Distribution fees (Note 3)............................... -- -- Variation margin......................................... -- -- Accrued expenses........................................... 7 7 Other liabilities.......................................... -- -- Written options............................................. -- -- ------------ ------------- Total liabilities........................................... 11 7 ------------ ------------- Net assets.................................................. $ 2,454 $ 2,764 ============ ============= SUMMARY OF NET ASSETS: Capital stock and paid-in-capital........................... $ 2,409 $ 2,676 Accumulated undistributed (distribution in excess of) net investment income (loss)................................... -- -- Accumulated net realized gain (loss) on investments and foreign currency transactions.............................. -- 5 Unrealized appreciation (depreciation) of investments and the translations of assets and liabilities denominated in foreign currency........................................... 45 83 ------------ ------------- Net assets.................................................. $ 2,454 $ 2,764 ============ ============= Shares authorized........................................... 950,000 950,000 ------------ ------------- Par value................................................... 0.001 0.001 ------------ ------------- CLASS A: Net asset value per share/Maximum offering price per share.......................................... $9.65/$10.21 $10.43/$11.04 ------------ ------------- Shares outstanding................................... 168 204 ------------ ------------- Net assets........................................... $ 1,618 $ 2,125 ------------ ------------- CLASS B: Net asset value per share.......................... $ 9.65 $ 10.42 ------------ ------------- Shares outstanding................................... 23 28 ------------ ------------- Net assets........................................... $ 226 $ 291 ------------ ------------- CLASS C: Net asset value per share.......................... $ 9.64 $ 10.42 ------------ ------------- Shares outstanding................................... 49 32 ------------ ------------- Net assets........................................... $ 475 $ 337 ------------ ------------- CLASS E: See page 266 for NAV, Shares outstanding and Net assets............................................. -- -- ------------ ------------- CLASS H: See page 266 for NAV, Shares outstanding and Net assets............................................. -- -- ------------ ------------- CLASS I: Net asset value per share/Maximum offering price per share.......................................... $ -- $ -- ------------ ------------- Shares outstanding................................... -- -- ------------ ------------- Net assets........................................... $ -- $ -- ------------ ------------- CLASS L: See page 266 for NAV, Shares outstanding and Net assets............................................. -- -- ------------ ------------- CLASS M: See page 266 for NAV, Shares outstanding and Net assets............................................. -- -- ------------ ------------- CLASS N: See page 266 for NAV, Shares outstanding and Net assets............................................. -- -- ------------ ------------- CLASS Y: Net asset value per share.......................... $ 9.65 $ 10.43 ------------ ------------- Shares outstanding................................... 14 1 ------------ ------------- Net assets........................................... $ 135 $ 11 ------------ ------------- CLASS Z: See page 266 for NAV, Shares outstanding and Net assets............................................. -- -- ------------ ------------- @ Cost of securities........................................ $ 2,373 $ 2,646 ------------ ------------- @ Market value of securities on loan........................ $ -- $ -- ------------ ------------- + Cash held as collateral on loaned securities.............. $ -- $ -- ------------ ------------- # Cost of foreign currency on deposit with custodian........ $ -- $ -- ------------ -------------
* Relates to investments in affiliated investment companies. ** Investments in repurchase agreements were $113,227. The accompanying notes are an integral part of these financial statements. 264 --------------------------------------------------------------------------------
TARGET TAX-FREE TAX-FREE TAX-FREE TAX-FREE TOTAL U.S. GOVERNMENT RETIREMENT 2030 CALIFORNIA MINNESOTA NATIONAL NEW YORK RETURN BOND SECURITIES FUND FUND FUND FUND FUND FUND FUND --------------- ------------- ------------- ------------- ------------- ------------- --------------- $ 2,230* $ 29,613 $ 34,481 $ 130,055 $ 14,895 $ 1,033,755** $ 204,421 -- 445 -- -- 1 472 -- -- -- -- -- -- 16 -- -- -- -- -- -- -- -- -- -- -- -- 470 35,063 3 3 863 -- 1,689 -- 2,708 58 -- 317 488 1,982 248 6,963 1,556 -- -- -- -- -- 137 47 48 18 13 53 26 61 51 ----------- ------------- ------------- ------------- ------------- ------------- ----------- 2,281 31,256 34,982 133,779 15,640 1,079,175 206,136 ----------- ------------- ------------- ------------- ------------- ------------- ----------- -- -- -- -- -- 82 -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- 96,732 7,287 -- 1,442 -- 3,491 150 108,122 996 -- -- -- 331 -- 1,069 204 -- 3 4 16 1 87 23 -- -- -- -- -- -- -- -- 2 1 7 1 43 8 -- -- -- -- -- 142 -- 6 7 7 20 6 202 51 -- -- -- -- -- -- -- -- -- -- -- -- -- -- ----------- ------------- ------------- ------------- ------------- ------------- ----------- 6 1,454 12 3,865 158 206,479 8,569 ----------- ------------- ------------- ------------- ------------- ------------- ----------- $ 2,275 $ 29,802 $ 34,970 $ 129,914 $ 15,482 $ 872,696 $ 197,567 =========== ============= ============= ============= ============= ============= =========== $ 2,192 $ 28,851 $ 33,185 $ 123,226 $ 14,799 $ 878,446 $ 214,532 -- 2 10 3 2 656 11 1 (5) 197 372 85 (9,500) (18,827) 82 954 1,578 6,313 596 3,094 1,851 ----------- ------------- ------------- ------------- ------------- ------------- ----------- $ 2,275 $ 29,802 $ 34,970 $ 129,914 $ 15,482 $ 872,696 $ 197,567 =========== ============= ============= ============= ============= ============= =========== 950,000 300,000 19,250,000 19,250,000 300,000 500,000 19,250,000 ----------- ------------- ------------- ------------- ------------- ------------- ----------- 0.001 0.001 0.0001 0.0001 0.001 0.001 0.0001 ----------- ------------- ------------- ------------- ------------- ------------- ----------- $9.36/$9.90 $10.55/$11.05 $10.33/$10.82 $11.34/$11.87 $10.53/$11.03 $10.59/$11.09 $9.23/$9.66 ----------- ------------- ------------- ------------- ------------- ------------- ----------- 198 2,350 662 6,339 1,062 40,842 4,970 ----------- ------------- ------------- ------------- ------------- ------------- ----------- $ 1,857 $ 24,796 $ 6,846 $ 71,876 $ 11,182 $ 432,703 $ 45,851 ----------- ------------- ------------- ------------- ------------- ------------- ----------- $ 9.36 $ 10.54 $ 10.35 $ 11.26 $ 10.53 $ 10.54 $ 9.18 ----------- ------------- ------------- ------------- ------------- ------------- ----------- 33 149 78 599 172 7,542 1,852 ----------- ------------- ------------- ------------- ------------- ------------- ----------- $ 305 $ 1,571 $ 804 $ 6,746 $ 1,808 $ 79,506 $ 17,011 ----------- ------------- ------------- ------------- ------------- ------------- ----------- $ 9.37 $ 10.56 $ 10.37 $ 11.29 $ 10.53 $ 10.61 $ 9.18 ----------- ------------- ------------- ------------- ------------- ------------- ----------- 9 325 40 1,141 236 7,086 1,056 ----------- ------------- ------------- ------------- ------------- ------------- ----------- $ 81 $ 3,435 $ 411 $ 12,889 $ 2,492 $ 75,194 $ 9,698 ----------- ------------- ------------- ------------- ------------- ------------- ----------- -- -- -- -- -- -- -- ----------- ------------- ------------- ------------- ------------- ------------- ----------- -- -- -- -- -- -- -- ----------- ------------- ------------- ------------- ------------- ------------- ----------- $ -- $ -- $ -- $ -- $ -- $ 10.60 $ -- ----------- ------------- ------------- ------------- ------------- ------------- ----------- -- -- -- -- -- 4 -- ----------- ------------- ------------- ------------- ------------- ------------- ----------- $ -- $ -- $ -- $ -- $ -- $ 38 $ -- ----------- ------------- ------------- ------------- ------------- ------------- ----------- -- -- -- -- -- -- -- ----------- ------------- ------------- ------------- ------------- ------------- ----------- -- -- -- -- -- -- -- ----------- ------------- ------------- ------------- ------------- ------------- ----------- -- -- -- -- -- -- -- ----------- ------------- ------------- ------------- ------------- ------------- ----------- $ 9.36 $ -- $ 10.34 $ 11.32 $ -- $ 10.71 $ 9.20 ----------- ------------- ------------- ------------- ------------- ------------- ----------- 3 -- 1 1 -- 26,628 11 ----------- ------------- ------------- ------------- ------------- ------------- ----------- $ 32 $ -- $ 11 $ 11 $ -- $ 285,255 $ 101 ----------- ------------- ------------- ------------- ------------- ------------- ----------- -- -- -- -- -- -- -- ----------- ------------- ------------- ------------- ------------- ------------- ----------- $ 2,148 $ 28,659 $ 32,903 $ 123,742 $ 14,299 $ 1,030,594 $ 202,608 ----------- ------------- ------------- ------------- ------------- ------------- ----------- $ -- $ -- $ -- $ -- $ -- $ 94,334 $ 7,156 ----------- ------------- ------------- ------------- ------------- ------------- ----------- $ -- $ -- $ -- $ -- $ -- $ -- $ -- ----------- ------------- ------------- ------------- ------------- ------------- ----------- $ -- $ -- $ -- $ -- $ -- $ 16 $ -- ----------- ------------- ------------- ------------- ------------- ------------- ----------- VALUE VALUE OPPORTUNITIES FUND FUND ------------- ------------- $ 177,243 $ 307,330 1 1 -- -- -- -- 270 2,363 602 438 188 168 -- -- 29 70 ------------- ------------- 178,333 310,370 ------------- ------------- -- -- -- -- -- -- -- 7,150 1,206 2,233 626 171 23 42 -- -- 7 15 -- -- 41 67 -- -- -- -- ------------- ------------- 1,903 9,678 ------------- ------------- $ 176,430 $ 300,692 ============= ============= $ 134,263 $ 242,683 1,021 1,431 15,395 20,670 25,751 35,908 ------------- ------------- $ 176,430 $ 300,692 ============= ============= 450,000 27,000,000 ------------- ------------- 0.001 0.000 ------------- ------------- $12.91/$13.66 $18.26/$19.32 ------------- ------------- 6,155 6,097 ------------- ------------- $ 79,476 $ 111,324 ------------- ------------- $ 12.71 $ 16.92 ------------- ------------- 941 1,080 ------------- ------------- $ 11,957 $ 18,271 ------------- ------------- $ 12.71 $ 16.92 ------------- ------------- 1,019 1,328 ------------- ------------- $ 12,943 $ 22,466 ------------- ------------- -- -- ------------- ------------- -- -- ------------- ------------- $ -- $ 18.27 ------------- ------------- -- 1 ------------- ------------- $ -- $ 12 ------------- ------------- -- -- ------------- ------------- -- -- ------------- ------------- -- -- ------------- ------------- $ 12.91 $ 18.48 ------------- ------------- 5,580 5,568 ------------- ------------- $ 72,054 $ 102,915 ------------- ------------- -- -- ------------- ------------- $ 151,492 $ 271,422 ------------- ------------- $ -- $ 6,969 ------------- ------------- $ -- $ -- ------------- ------------- $ -- $ -- ------------- -------------
265 THE HARTFORD MUTUAL FUNDS, INC. AND THE HARTFORD MUTUAL FUNDS II, INC. STATEMENT OF ASSETS AND LIABILITIES -- (CONTINUED) OCTOBER 31, 2006 (000'S OMITTED) --------------------------------------------------------------------------------
GROWTH SMALLCAP TAX-FREE GROWTH OPPORTUNITIES GROWTH MINNESOTA FUND FUND FUND FUND ------------- ------------- ------------- ------------- CLASS E: Net asset value per share/Maximum offering price per share.......................................... $ -- $ -- $ -- $10.39/$10.88 ------------- ------------- ------------- ------------- Shares outstanding.................................. -- -- -- 2,292 ------------- ------------- ------------- ------------- Net assets.......................................... $ -- $ -- $ -- $ 23,819 ------------- ------------- ------------- ------------- CLASS H: Net asset value per share.......................... $ 16.46 $ 25.57 $ 28.29 $ 10.40 ------------- ------------- ------------- ------------- Shares outstanding.................................. 928 1,314 482 11 ------------- ------------- ------------- ------------- Net assets.......................................... $ 15,267 $ 33,610 $ 13,634 $ 116 ------------- ------------- ------------- ------------- CLASS L: Net asset value per share/Maximum offering price per share.......................................... $18.69/$19.62 $29.73/$31.21 $31.45/$33.02 $10.37/$10.86 ------------- ------------- ------------- ------------- Shares outstanding.................................. 14,708 19,188 3,766 255 ------------- ------------- ------------- ------------- Net assets.......................................... $ 274,890 $ 570,541 $ 118,452 $ 2,648 ------------- ------------- ------------- ------------- CLASS M: Net asset value per share.......................... $ 16.44 $ 25.53 $ 28.25 $ 10.39 ------------- ------------- ------------- ------------- Shares outstanding.................................. 972 827 513 12 ------------- ------------- ------------- ------------- Net assets.......................................... $ 15,988 $ 21,110 $ 14,483 $ 120 ------------- ------------- ------------- ------------- CLASS N: Net asset value per share.......................... $ 16.44 $ 25.53 $ 28.28 $ 10.39 ------------- ------------- ------------- ------------- Shares outstanding.................................. 233 208 207 19 ------------- ------------- ------------- ------------- Net assets.......................................... $ 3,827 $ 5,304 $ 5,846 $ 195 ------------- ------------- ------------- ------------- CLASS Z: Net asset value per share.......................... $ -- $ 31.18 $ -- $ -- ------------- ------------- ------------- ------------- Shares outstanding.................................. -- 1,147 -- -- ------------- ------------- ------------- ------------- Net assets.......................................... $ -- $ 35,785 $ -- $ -- ------------- ------------- ------------- -------------
TAX-FREE U.S. GOVERNMENT VALUE NATIONAL SECURITIES OPPORTUNITIES FUND FUND FUND ------------- --------------- ------------- CLASS E: Net asset value per share/Maximum offering price per share.......................................... $11.33/$11.86 $9.21/$9.64 $ -- ------------- ----------- ------------- Shares outstanding.................................. 2,557 9,717 -- ------------- ----------- ------------- Net assets.......................................... $ 28,964 $ 89,487 $ -- ------------- ----------- ------------- CLASS H: Net asset value per share.......................... $ 11.30 $ 9.17 $ 16.97 ------------- ----------- ------------- Shares outstanding.................................. 17 209 214 ------------- ----------- ------------- Net assets.......................................... $ 189 $ 1,922 $ 3,634 ------------- ----------- ------------- CLASS L: Net asset value per share/Maximum offering price per share.......................................... $11.31/$11.84 $9.22/$9.65 $18.29/$19.20 ------------- ----------- ------------- Shares outstanding.................................. 673 3,332 1,803 ------------- ----------- ------------- Net assets.......................................... $ 7,606 $ 30,712 $ 32,983 ------------- ----------- ------------- CLASS M: Net asset value per share.......................... $ 11.30 $ 9.18 $ 16.95 ------------- ----------- ------------- Shares outstanding.................................. 111 229 413 ------------- ----------- ------------- Net assets.......................................... $ 1,258 $ 2,099 $ 7,000 ------------- ----------- ------------- CLASS N: Net asset value per share.......................... $ 11.27 $ 9.17 $ 16.97 ------------- ----------- ------------- Shares outstanding.................................. 33 75 123 ------------- ----------- ------------- Net assets.......................................... $ 375 $ 686 $ 2,087 ------------- ----------- -------------
The accompanying notes are an integral part of these financial statements. 266 (This page intentionally left blank) 267 THE HARTFORD MUTUAL FUNDS, INC. AND THE HARTFORD MUTUAL FUNDS II, INC. STATEMENT OF OPERATIONS FOR THE YEAR ENDED OCTOBER 31, 2006 (000'S OMITTED) --------------------------------------------------------------------------------
AGGRESSIVE GROWTH ADVISERS FUND ALLOCATION FUND* ------------- ----------------- INVESTMENT INCOME: Dividends................................................. $ 21,294 $ 659 Interest.................................................. 31,989 -- Securities lending........................................ 842 -- Less: Foreign tax withheld................................ (411) -- -------- ------- Total investment income, net............................ 53,714 659 -------- ------- EXPENSES: Investment advisory and management fees................... 11,227 322 Transfer agent fees....................................... 3,961 376 Distribution fees Class A................................................. 2,907 226 Class B................................................. 3,930 276 Class C................................................. 2,367 429 Class H................................................. -- -- Class L................................................. -- -- Class M................................................. -- -- Class N................................................. -- -- Custodian fees............................................ 124 1 Accounting services....................................... 288 16 Registration and filing fees.............................. 110 63 Board of Directors' fees.................................. 33 2 Other expenses............................................ 942 96 -------- ------- Total expenses (before waivers and fees paid indirectly)............................................ 25,889 1,807 Expense waivers........................................... (905) (188) Transfer agent fee waivers................................ -- -- Commission recapture...................................... (182) -- Custodian fee offset...................................... (13) -- -------- ------- Total waivers and fees paid indirectly.................. (1,100) (188) -------- ------- Total expenses, net..................................... 24,789 1,619 -------- ------- Net investment income (loss).............................. 28,925 (960) -------- ------- NET REALIZED GAIN (LOSS) ON INVESTMENTS, FUTURES, OPTIONS AND SWAP CONTRACTS AND FOREIGN CURRENCY TRANSACTIONS: Capital gain distribution received from underlying affiliated funds........................................ -- 2,827 Net realized gain (loss) on investments................... 191,586 2,823 Net realized gain (loss) on futures, options and swap contracts............................................... 1,120 -- Net realized gain (loss) on foreign currency transactions............................................ (36) -- -------- ------- NET REALIZED GAIN (LOSS) ON INVESTMENTS, FUTURES, OPTIONS AND SWAP CONTRACTS AND FOREIGN CURRENCY TRANSACTIONS...... 192,670 5,650 -------- ------- NET CHANGES IN UNREALIZED APPRECIATION (DEPRECIATION) OF INVESTMENTS, FUTURES, OPTIONS AND SWAP CONTRACTS AND FOREIGN CURRENCY TRANSACTIONS: Net unrealized appreciation (depreciation) of investments............................................. (37,039) 16,350 Net unrealized appreciation (depreciation) of futures, options and swap contracts.............................. -- -- Net unrealized appreciation (depreciation) on translation of other assets and liabilities in foreign currencies... 20 -- -------- ------- NET CHANGES IN UNREALIZED APPRECIATION (DEPRECIATION) OF INVESTMENTS, FUTURES, OPTIONS AND SWAP CONTRACTS AND FOREIGN CURRENCY TRANSACTIONS............................. (37,019) 16,350 -------- ------- NET GAIN (LOSS) ON INVESTMENTS, FUTURES, OPTIONS AND SWAP CONTRACTS AND FOREIGN CURRENCY TRANSACTIONS............... 155,651 22,000 -------- ------- NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS................................................ $184,576 $21,040 ======== =======
* Relates to investments in affiliated investment companies. # From July 31, 2006 (Commencement of operations) through October 31, 2006. @ Realized gains on written options were $63 for the Disciplined Equity Fund. (W) Realized losses on written options were $9,581, for the Capital Appreciation Fund. The accompanying notes are an integral part of these financial statements. 268 --------------------------------------------------------------------------------
BALANCED BALANCED CAPITAL CAPITAL CONSERVATIVE DISCIPLINED EQUITY ALLOCATION INCOME APPRECIATION APPRECIATION II ALLOCATION EQUITY DIVIDEND AND INCOME FUND* FUND# FUND FUND FUND* FUND GROWTH FUND FUND ---------- -------- ------------ --------------- ------------ ----------- ------------ ------- $12,792 $ 37 $ 172,002 $ 2,750 $ 4,041 $ 6,973 $ 72,777 $15,720 -- 91 32,099 456 -- 221 4,044 457 -- -- 1,740 -- -- -- 274 -- -- -- (4,832) (143) -- (1) (893) (29) ------- ---- ---------- ------- ------- ------- -------- ------- 12,792 128 201,009 3,063 4,041 7,193 76,202 16,148 ------- ---- ---------- ------- ------- ------- -------- ------- 1,142 20 80,861 2,084 267 3,236 19,633 4,239 712 -- 22,947 464 132 777 5,816 927 911 6 19,418 347 202 497 5,845 1,100 927 1 17,731 166 177 381 3,512 373 1,391 1 24,153 530 349 317 2,926 539 -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- 1 2 1,700 169 1 15 19 7 60 -- 1,930 32 13 64 490 84 110 7 694 109 56 54 212 107 9 -- 187 2 2 6 48 9 273 7 5,441 88 75 190 1,395 257 ------- ---- ---------- ------- ------- ------- -------- ------- 5,536 44 175,062 3,991 1,274 5,537 39,896 7,642 (133) (9) -- (128) (74) (63) -- (1,604) -- -- -- (1) -- (29) -- -- -- -- (1,851) (21) -- (21) (194) (32) -- -- (91) (1) -- -- (2) -- ------- ---- ---------- ------- ------- ------- -------- ------- (133) (9) (1,942) (151) (74) (113) (196) (1,636) ------- ---- ---------- ------- ------- ------- -------- ------- 5,403 35 173,120 3,840 1,200 5,424 39,700 6,006 ------- ---- ---------- ------- ------- ------- -------- ------- 7,389 93 27,889 (777) 2,841 1,769 36,502 10,142 ------- ---- ---------- ------- ------- ------- -------- ------- 9,275 -- -- -- 1,892 -- -- -- 9,140 (21) 1,161,098 8,130 2,292 19,592 217,765 26,401 -- (1) (9,581)(W) -- -- 88@ -- -- -- -- (417) (6) -- -- -- -- ------- ---- ---------- ------- ------- ------- -------- ------- 18,415 (22) 1,151,100 8,124 4,184 19,680 217,765 26,401 ------- ---- ---------- ------- ------- ------- -------- ------- 36,316 436 876,796 22,926 4,918 24,049 274,628 55,584 -- -- -- -- -- (3) -- -- -- -- 121 2 -- -- -- -- ------- ---- ---------- ------- ------- ------- -------- ------- 36,316 436 876,917 22,928 4,918 24,046 274,628 55,584 ------- ---- ---------- ------- ------- ------- -------- ------- 54,731 414 2,028,017 31,052 9,102 43,726 492,393 81,985 ------- ---- ---------- ------- ------- ------- -------- ------- $62,120 $507 $2,055,906 $30,275 $11,943 $45,495 $528,895 $92,127 ======= ==== ========== ======= ======= ======= ======== =======
269 THE HARTFORD MUTUAL FUNDS, INC. AND THE HARTFORD MUTUAL FUNDS II, INC. STATEMENT OF OPERATIONS -- (CONTINUED) FOR THE YEAR ENDED OCTOBER 31, 2006 (000'S OMITTED) --------------------------------------------------------------------------------
FLOATING RATE FOCUS FUND FUND -------- ------- INVESTMENT INCOME: Dividends................................................. $ -- $ 1,245 Interest.................................................. 87,641 25 Securities lending........................................ -- 1 Less: Foreign tax withheld................................ -- (38) ------- ------- Total investment income, net............................ 87,641 1,233 ------- ------- EXPENSES: Investment advisory and management fees................... 7,534 760 Transfer agent fees....................................... 704 195 Distribution fees Class A................................................. 1,909 115 Class B................................................. 208 144 Class C................................................. 3,882 150 Class H................................................. -- -- Class L................................................. -- -- Class M................................................. -- -- Class N................................................. -- -- Custodian fees............................................ 12 18 Accounting services....................................... 185 12 Registration and filing fees.............................. 224 44 Board of Directors' fees.................................. 10 1 Other expenses............................................ 365 54 ------- ------- Total expenses (before waivers and fees paid indirectly)............................................ 15,033 1,493 Expense waivers........................................... (5,913) (136) Transfer agent fee waivers................................ -- -- Commission recapture...................................... -- (14) Custodian fee offset...................................... (6) -- ------- ------- Total waivers and fees paid indirectly.................. (5,919) (150) ------- ------- Total expenses, net..................................... 9,114 1,343 ------- ------- Net investment income (loss).............................. 78,527 (110) ------- ------- NET REALIZED GAIN (LOSS) ON INVESTMENTS, FUTURES, OPTIONS AND SWAP CONTRACTS AND FOREIGN CURRENCY TRANSACTIONS: Capital gain distribution received from underlying affiliated funds........................................ -- -- Net realized gain (loss) on investments................... 72 9,786 Net realized gain (loss) on futures, options and swap contracts............................................... -- -- Net realized gain (loss) on foreign currency transactions............................................ 13 (4) ------- ------- NET REALIZED GAIN (LOSS) ON INVESTMENTS, FUTURES, OPTIONS AND SWAP CONTRACTS AND FOREIGN CURRENCY TRANSACTIONS...... 85 9,782 ------- ------- NET CHANGES IN UNREALIZED APPRECIATION (DEPRECIATION) OF INVESTMENTS, FUTURES, OPTIONS AND SWAP CONTRACTS AND FOREIGN CURRENCY TRANSACTIONS: Net unrealized appreciation (depreciation) of investments............................................. (4,017) (4,064) Net unrealized appreciation (depreciation) of futures, options and swap contracts.............................. -- -- Net unrealized appreciation (depreciation) on translation of other assets and liabilities in foreign currencies... 31 (2) ------- ------- NET CHANGES IN UNREALIZED APPRECIATION (DEPRECIATION) OF INVESTMENTS, FUTURES, OPTIONS AND SWAP CONTRACTS AND FOREIGN CURRENCY TRANSACTIONS............................. (3,986) (4,066) ------- ------- NET GAIN (LOSS) ON INVESTMENTS, FUTURES, OPTIONS AND SWAP CONTRACTS AND FOREIGN CURRENCY TRANSACTIONS............... (3,901) 5,716 ------- ------- NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS................................................ $74,626 $ 5,606 ======= =======
* Relates to investments in affiliated investment companies. # From July 31, 2006 (Commencement of operations) through October 31, 2006. The accompanying notes are an integral part of these financial statements. 270 --------------------------------------------------------------------------------
GLOBAL GLOBAL GLOBAL GLOBAL GLOBAL GROWTH GROWTH COMMUNICATIONS FINANCIAL HEALTH LEADERS TECHNOLOGY ALLOCATION GROWTH OPPORTUNITIES FUND SERVICES FUND FUND FUND FUND FUND* FUND FUND -------------- ------------- ------- -------- ---------- ---------- -------- ------------- $ 817 $ 556 $ 5,833 $ 8,437 $ 309 $ 6,093 $ 10,846 $ 7,366 34 41 617 703 27 -- 1,070 1,305 42 9 184 233 5 -- 317 1,316 (53) (60) (200) (797) (25) -- (320) (293) ------- ------ ------- -------- ------ ------- -------- -------- 840 546 6,434 8,576 316 6,093 11,913 9,694 ------- ------ ------- -------- ------ ------- -------- -------- 287 243 6,046 5,827 577 1,028 9,397 8,288 85 63 1,267 2,136 336 935 2,253 1,842 50 41 666 1,074 80 734 1,760 799 37 36 761 793 131 896 470 287 42 33 835 708 115 1,433 876 365 -- -- -- -- -- -- 180 370 -- -- -- -- -- -- 725 1,453 -- -- -- -- -- -- 179 224 -- -- -- -- -- -- 42 55 31 13 41 214 42 1 16 160 5 4 96 112 9 53 150 68 46 39 69 71 56 106 177 157 1 1 10 11 1 8 21 17 28 24 294 322 40 242 675 566 ------- ------ ------- -------- ------ ------- -------- -------- 612 497 10,085 11,268 1,387 5,436 16,921 14,651 (225) (169) (106) (276) (283) (410) (87) (801) (5) (4) (24) (150) (138) -- (26) (532) (9) (2) (28) (157) (18) -- (228) (253) (2) -- (2) (2) -- -- (3) (20) ------- ------ ------- -------- ------ ------- -------- -------- (241) (175) (160) (585) (439) (410) (344) (1,606) ------- ------ ------- -------- ------ ------- -------- -------- 371 322 9,925 10,683 948 5,026 16,577 13,045 ------- ------ ------- -------- ------ ------- -------- -------- 469 224 (3,491) (2,107) (632) 1,067 (4,664) (3,351) ------- ------ ------- -------- ------ ------- -------- -------- -- -- -- -- -- 8,807 -- -- 3,653 2,136 32,123 36,445 4,921 7,932 91,449 91,769 -- -- -- -- -- -- -- -- (11) 2 (5) (176) (1) -- (15) (9) ------- ------ ------- -------- ------ ------- -------- -------- 3,642 2,138 32,118 36,269 4,920 16,739 91,434 91,760 ------- ------ ------- -------- ------ ------- -------- -------- (1,715) 2,246 56,355 71,294 2,424 42,499 (13,106) 40,736 -- -- -- -- -- -- -- -- 1 1 19 38 -- -- -- 4 ------- ------ ------- -------- ------ ------- -------- -------- (1,714) 2,247 56,374 71,332 2,424 42,499 (13,106) 40,740 ------- ------ ------- -------- ------ ------- -------- -------- 1,928 4,385 88,492 107,601 7,344 59,238 78,328 132,500 ------- ------ ------- -------- ------ ------- -------- -------- $ 2,397 $4,609 $85,001 $105,494 $6,712 $60,305 $ 73,664 $129,149 ======= ====== ======= ======== ====== ======= ======== ========
271 THE HARTFORD MUTUAL FUNDS, INC. AND THE HARTFORD MUTUAL FUNDS II, INC. STATEMENT OF OPERATIONS -- (CONTINUED) FOR THE YEAR ENDED OCTOBER 31, 2006 (000'S OMITTED) --------------------------------------------------------------------------------
HIGH INCOME YIELD ALLOCATION FUND FUND* ------- ---------- INVESTMENT INCOME: Dividends................................................. $ -- $1,720 Interest.................................................. 23,803 -- Securities lending........................................ 198 -- Less: Foreign tax withheld................................ -- -- ------- ------ Total investment income, net............................ 24,001 1,720 ------- ------ EXPENSES: Investment advisory and management fees................... 2,234 70 Transfer agent fees....................................... 649 48 Distribution fees Class A................................................. 473 54 Class B................................................. 413 49 Class C................................................. 435 84 Class H................................................. -- -- Class L................................................. -- -- Class M................................................. -- -- Class N................................................. -- -- Custodian fees............................................ 67 1 Accounting services....................................... 47 4 Registration and filing fees.............................. 60 40 Board of Directors' fees.................................. 5 1 Other expenses............................................ 191 29 ------- ------ Total expenses (before waivers and fees paid indirectly)............................................ 4,574 380 Expense waivers........................................... (500) (74) Transfer agent fee waivers................................ -- -- Commission recapture...................................... -- -- Custodian fee offset...................................... (15) -- ------- ------ Total waivers and fees paid indirectly.................. (515) (74) ------- ------ Total expenses, net..................................... 4,059 306 ------- ------ Net investment income (loss).............................. 19,942 1,414 ------- ------ NET REALIZED GAIN (LOSS) ON INVESTMENTS, FUTURES, OPTIONS AND SWAP CONTRACTS AND FOREIGN CURRENCY TRANSACTIONS: Capital gain distribution received from underlying affiliated funds........................................ -- 63 Net realized gain (loss) on investments................... (3,842) (425) Net realized gain (loss) on futures, options and swap contracts............................................... 101(W) -- Net realized gain (loss) on foreign currency transactions............................................ (43) -- ------- ------ NET REALIZED GAIN (LOSS) ON INVESTMENTS, FUTURES, OPTIONS AND SWAP CONTRACTS AND FOREIGN CURRENCY TRANSACTIONS...... (3,784) (362) ------- ------ NET CHANGES IN UNREALIZED APPRECIATION (DEPRECIATION) OF INVESTMENTS, FUTURES, OPTIONS AND SWAP CONTRACTS AND FOREIGN CURRENCY TRANSACTIONS: Net unrealized appreciation (depreciation) of investments............................................. 10,466 486 Net unrealized appreciation (depreciation) of futures, options and swap contracts.............................. -- -- Net unrealized appreciation (depreciation) on translation of other assets and liabilities in foreign currencies... 183 -- ------- ------ NET CHANGES IN UNREALIZED APPRECIATION (DEPRECIATION) OF INVESTMENTS, FUTURES, OPTIONS AND SWAP CONTRACTS AND FOREIGN CURRENCY TRANSACTIONS............................. 10,649 486 ------- ------ NET GAIN (LOSS) ON INVESTMENTS, FUTURES, OPTIONS AND SWAP CONTRACTS AND FOREIGN CURRENCY TRANSACTIONS............... 6,865 124 ------- ------ NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS................................................ $26,807 $1,538 ======= ======
* Relates to investments in affiliated investment companies. # From July 31, 2006 (Commencement of operations) through October 31, 2006. (W) Realized losses on written options were $3 for the High Yield Fund. The accompanying notes are an integral part of these financial statements. 272 --------------------------------------------------------------------------------
INFLATION INTERNATIONAL INTERNATIONAL INTERNATIONAL MIDCAP MIDCAP INCOME PLUS CAPITAL OPPORTUNITIES SMALL MIDCAP GROWTH VALUE FUND FUND APPRECIATION FUND FUND COMPANY FUND FUND FUND# FUND ------ --------- ----------------- ------------- ------------- -------- ------ ------- $ -- $ -- $ 4,927 $ 5,218 $ 3,418 $ 27,907 $ 14 $ 6,471 4,566 48,264 539 432 219 5,200 10 253 -- -- 186 175 207 301 -- 56 1 -- (571) (560) (400) (179) -- (138) ------ -------- ------- ------- ------- -------- ---- ------- 4,567 48,264 5,081 5,265 3,444 33,229 24 6,642 ------ -------- ------- ------- ------- -------- ---- ------- 434 5,096 3,088 1,862 1,608 21,918 21 3,915 89 855 712 691 234 5,903 -- 1,156 80 857 430 344 133 4,555 6 752 63 1,067 283 274 91 4,755 1 627 56 3,092 368 192 152 5,196 1 640 -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- 22 18 191 160 149 50 2 28 11 141 49 34 25 473 -- 73 48 140 83 56 54 152 7 56 1 15 5 3 3 48 -- 8 44 470 160 101 89 1,385 7 226 ------ -------- ------- ------- ------- -------- ---- ------- 848 11,751 5,369 3,717 2,538 44,435 45 7,481 (142) (604) (252) (109) (113) -- (12) (236) -- -- (16) (56) (10) -- -- -- -- -- (106) (58) (36) (799) -- (60) (2) (8) (5) -- (1) (11) -- (4) ------ -------- ------- ------- ------- -------- ---- ------- (144) (612) (379) (223) (160) (810) (12) (300) ------ -------- ------- ------- ------- -------- ---- ------- 704 11,139 4,990 3,494 2,378 43,625 33 7,181 ------ -------- ------- ------- ------- -------- ---- ------- 3,863 37,125 91 1,771 1,066 (10,396) (9) (539) ------ -------- ------- ------- ------- -------- ---- ------- -- -- -- -- -- -- -- -- (332) (16,458) 29,733 23,101 24,531 493,170 81 59,455 127 675 -- -- -- -- -- -- (48) (246) (139) (308) 2,431 (100) -- 9 ------ -------- ------- ------- ------- -------- ---- ------- (253) (16,029) 29,594 22,793 26,962 493,070 81 59,464 ------ -------- ------- ------- ------- -------- ---- ------- 1,373 (6,270) 35,015 17,092 13,630 (86,308) 573 29,760 (64) (67) -- -- -- -- -- -- (40) (28) 1 (41) (2,385) 3 -- (1) ------ -------- ------- ------- ------- -------- ---- ------- 1,269 (6,365) 35,016 17,051 11,245 (86,305) 573 29,759 ------ -------- ------- ------- ------- -------- ---- ------- 1,016 (22,394) 64,610 39,844 38,207 406,765 654 89,223 ------ -------- ------- ------- ------- -------- ---- ------- $4,879 $ 14,731 $64,701 $41,615 $39,273 $396,369 $645 $88,684 ====== ======== ======= ======= ======= ======== ==== =======
273 THE HARTFORD MUTUAL FUNDS, INC. AND THE HARTFORD MUTUAL FUNDS II, INC. STATEMENT OF OPERATIONS -- (CONTINUED) FOR THE YEAR ENDED OCTOBER 31, 2006 (000'S OMITTED) --------------------------------------------------------------------------------
MONEY RETIREMENT MARKET INCOME FUND FUND* ------- ---------- INVESTMENT INCOME: Dividends................................................. $ -- $ 16 Interest.................................................. 12,149 -- Securities lending........................................ -- -- Less: Foreign tax withheld................................ -- -- ------- ---- Total investment income, net............................ 12,149 16 ------- ---- EXPENSES: Investment advisory and management fees................... 1,242 1 Transfer agent fees....................................... 625 -- Distribution fees Class A................................................. 468 1 Class B................................................. 283 1 Class C................................................. 170 1 Class H................................................. -- -- Class L................................................. -- -- Class M................................................. -- -- Class N................................................. -- -- Custodian fees............................................ 11 1 Accounting services....................................... 39 -- Registration and filing fees.............................. 81 63 Board of Directors' fees.................................. 4 -- Other expenses............................................ 113 20 ------- ---- Total expenses (before waivers and fees paid indirectly)............................................ 3,036 88 Expense waivers........................................... (404) (84) Transfer agent fee waivers................................ -- -- Commission recapture...................................... -- -- Custodian fee offset...................................... (1) -- ------- ---- Total waivers and fees paid indirectly.................. (405) (84) ------- ---- Total expenses, net..................................... 2,631 4 ------- ---- Net investment income (loss).............................. 9,518 12 ------- ---- NET REALIZED GAIN (LOSS) ON INVESTMENTS, FUTURES, OPTIONS AND SWAP CONTRACTS AND FOREIGN CURRENCY TRANSACTIONS: Capital gain distribution received from underlying affiliated funds........................................ -- -- Net realized gain (loss) on investments................... -- -- Net realized gain (loss) on futures, options and swap contracts............................................... -- -- Net realized gain (loss) on foreign currency transactions............................................ -- -- ------- ---- NET REALIZED GAIN (LOSS) ON INVESTMENTS, FUTURES, OPTIONS AND SWAP CONTRACTS AND FOREIGN CURRENCY TRANSACTIONS...... -- -- ------- ---- NET CHANGES IN UNREALIZED APPRECIATION (DEPRECIATION) OF INVESTMENTS, FUTURES, OPTIONS AND SWAP CONTRACTS AND FOREIGN CURRENCY TRANSACTIONS: Net unrealized appreciation (depreciation) of investments............................................. -- 15 Net unrealized appreciation (depreciation) of futures, options and swap contracts.............................. -- -- Net unrealized appreciation (depreciation) on translation of other assets and liabilities in foreign currencies... -- -- ------- ---- NET CHANGES IN UNREALIZED APPRECIATION (DEPRECIATION) OF INVESTMENTS, FUTURES, OPTIONS AND SWAP CONTRACTS AND FOREIGN CURRENCY TRANSACTIONS............................. -- 15 ------- ---- NET GAIN (LOSS) ON INVESTMENTS, FUTURES, OPTIONS AND SWAP CONTRACTS AND FOREIGN CURRENCY TRANSACTIONS............... -- 15 ------- ---- NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS................................................ $ 9,518 $ 27 ======= ====
* Relates to investments in affiliated investment companies. # From July 31, 2006 (Commencement of operations) through October 31, 2006. The accompanying notes are an integral part of these financial statements. 274 --------------------------------------------------------------------------------
SELECT SELECT SELECT SELECT SHORT SMALL SMALLCAP MIDCAP MIDCAP SMALLCAP SMALLCAP DURATION COMPANY GROWTH STOCK GROWTH FUND VALUE FUND GROWTH FUND VALUE FUND# FUND FUND FUND FUND ----------- ---------- ----------- ----------- -------- -------- -------- -------- $ 223 $ 632 $ 42 $ 78 $ -- $ 1,147 $ 3,293 $ 22,235 74 104 16 16 5,978 482 694 260 -- -- -- -- -- 234 525 377 -- (1) -- -- -- (40) (2) (403) ------ ------ ------ ------ ------ -------- ------- -------- 297 735 58 94 5,978 1,823 4,510 22,469 ------ ------ ------ ------ ------ -------- ------- -------- 427 523 91 40 743 3,080 3,455 9,137 83 77 5 -- 99 879 707 3,915 52 91 16 9 67 453 346 1,761 34 31 4 1 77 574 188 2,539 32 52 5 1 177 470 215 1,721 -- -- -- -- -- -- 148 -- -- -- -- -- -- -- 304 -- -- -- -- -- -- -- 153 -- -- -- -- -- -- -- 60 -- 27 39 20 5 10 67 24 117 7 8 1 1 21 57 42 199 58 76 64 7 52 54 108 87 1 1 -- -- 2 6 6 20 28 35 44 6 80 168 272 669 ------ ------ ------ ------ ------ -------- ------- -------- 749 933 250 70 1,328 5,808 6,028 20,165 (66) (88) (104) (6) (130) (250) (290) (1,188) (5) 1 -- -- -- (17) (79) (150) -- -- -- -- -- (125) (77) (251) (13) (25) (2) -- (2) (5) (3) (3) ------ ------ ------ ------ ------ -------- ------- -------- (84) (112) (106) (6) (132) (397) (449) (1,592) ------ ------ ------ ------ ------ -------- ------- -------- 665 821 144 64 1,196 5,411 5,579 18,573 ------ ------ ------ ------ ------ -------- ------- -------- (368) (86) (86) 30 4,782 (3,588) (1,069) 3,896 ------ ------ ------ ------ ------ -------- ------- -------- -- -- -- -- -- -- -- -- 2,239 2,875 (244) 114 (707) 70,360 26,154 179,978 -- -- -- 12 -- -- 569 (167) -- -- -- -- -- (15) -- (34) ------ ------ ------ ------ ------ -------- ------- -------- 2,239 2,875 (244) 126 (707) 70,345 26,723 179,777 ------ ------ ------ ------ ------ -------- ------- -------- 1,006 5,546 1,203 1,311 1,324 (14,828) 9,631 (15,914) -- -- -- 5 -- -- 423 -- -- -- -- -- -- -- -- 21 ------ ------ ------ ------ ------ -------- ------- -------- 1,006 5,546 1,203 1,316 1,324 (14,828) 10,054 (15,893) ------ ------ ------ ------ ------ -------- ------- -------- 3,245 8,421 959 1,442 617 55,517 36,777 163,884 ------ ------ ------ ------ ------ -------- ------- -------- $2,877 $8,335 $ 873 $1,472 $5,399 $51,929 $35,708 $167,780 ====== ====== ====== ====== ====== ======== ======= ========
275 THE HARTFORD MUTUAL FUNDS, INC. AND THE HARTFORD MUTUAL FUNDS II, INC. STATEMENT OF OPERATIONS -- (CONTINUED) FOR THE YEAR ENDED OCTOBER 31, 2006 (000'S OMITTED) --------------------------------------------------------------------------------
TARGET TARGET TARGET RETIREMENT RETIREMENT RETIREMENT 2010 FUND* 2020 FUND* 2030 FUND* ---------- ---------- ---------- INVESTMENT INCOME: Dividends................................................. $ 28 $ 17 $ 6 Interest.................................................. -- -- -- Securities lending........................................ -- -- -- Less: Foreign tax withheld................................ -- -- -- ---- ---- ---- Total investment income, net............................ 28 17 6 ---- ---- ---- EXPENSES: Investment advisory and management fees................... 2 2 1 Transfer agent fees....................................... 1 2 2 Distribution fees Class A................................................. 2 2 1 Class B................................................. 1 1 1 Class C................................................. 1 1 1 Class H................................................. -- -- -- Class L................................................. -- -- -- Class M................................................. -- -- -- Class N................................................. -- -- -- Custodian fees............................................ 1 1 1 Accounting services....................................... -- -- -- Registration and filing fees.............................. 61 61 62 Board of Directors' fees.................................. -- -- -- Other expenses............................................ 21 25 18 ---- ---- ---- Total expenses (before waivers and fees paid indirectly)............................................ 90 95 87 Expense waivers........................................... (84) (88) (83) Transfer agent fee waivers................................ -- -- -- Commission recapture...................................... -- -- -- Custodian fee offset...................................... -- -- -- ---- ---- ---- Total waivers and fees paid indirectly.................. (84) (88) (83) ---- ---- ---- Total expenses, net..................................... 6 7 4 ---- ---- ---- Net investment income (loss).............................. 22 10 2 ---- ---- ---- NET REALIZED GAIN (LOSS) ON INVESTMENTS, FUTURES, OPTIONS AND SWAP CONTRACTS AND FOREIGN CURRENCY TRANSACTIONS: Capital gain distribution received from underlying affiliated funds........................................ -- 4 1 Net realized gain (loss) on investments................... -- 9 -- Net realized gain (loss) on futures, options and swap contracts............................................... -- -- -- Net realized gain (loss) on foreign currency transactions............................................ -- -- -- ---- ---- ---- NET REALIZED GAIN (LOSS) ON INVESTMENTS, FUTURES, OPTIONS AND SWAP CONTRACTS AND FOREIGN CURRENCY TRANSACTIONS...... -- 13 1 ---- ---- ---- NET CHANGES IN UNREALIZED APPRECIATION (DEPRECIATION) OF INVESTMENTS, FUTURES, OPTIONS AND SWAP CONTRACTS AND FOREIGN CURRENCY TRANSACTIONS: Net unrealized appreciation (depreciation) of investments............................................. 46 82 83 Net unrealized appreciation (depreciation) of futures, options and swap contracts.............................. -- -- -- Net unrealized appreciation (depreciation) on translation of other assets and liabilities in foreign currencies... -- -- -- ---- ---- ---- NET CHANGES IN UNREALIZED APPRECIATION (DEPRECIATION) OF INVESTMENTS, FUTURES, OPTIONS AND SWAPS CONTRACTS AND FOREIGN CURRENCY TRANSACTIONS............................. 46 82 83 ---- ---- ---- NET GAIN (LOSS) ON INVESTMENTS, FUTURES, OPTIONS AND SWAP CONTRACTS AND FOREIGN CURRENCY TRANSACTIONS............... 46 95 84 ---- ---- ---- NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS................................................ $ 68 $105 $ 86 ==== ==== ====
* Relates to investments in affiliated investment companies. # From July 31, 2006 (Commencement of operations) through October 31, 2006. (W) Realized losses on written options were $8 for the Total Return Bond Fund. The accompanying notes are an integral part of these financial statements. 276 --------------------------------------------------------------------------------
TAX-FREE TAX-FREE TAX-FREE TAX-FREE TOTAL U.S. GOVERNMENT VALUE CALIFORNIA MINNESOTA NATIONAL NEW YORK RETURN SECURITIES VALUE OPPORTUNITIES FUND FUND FUND FUND BOND FUND FUND FUND FUND ---------- --------- -------- -------- --------- --------------- ------- ------------- $ -- $ -- $ -- $ -- $ 83 $ -- $ 3,207 $ 4,952 1,025 1,685 5,760 715 39,132 11,984 183 172 -- -- -- -- 288 40 -- 84 -- -- -- -- -- -- (1) (189) ------ ------ ------ ---- ------- ------- ------- ------- 1,025 1,685 5,760 715 39,503 12,024 3,389 5,019 ------ ------ ------ ---- ------- ------- ------- ------- 123 252 847 85 4,701 1,514 1,198 2,302 7 8 48 2 1,301 218 225 350 46 15 142 28 906 112 177 222 15 8 68 18 780 188 109 164 23 4 105 26 726 90 113 168 -- 1 2 -- -- 23 -- 43 -- 7 20 -- -- 81 -- 77 -- 1 13 -- -- 24 -- 74 -- 2 4 -- -- 8 -- 21 5 5 7 4 42 10 9 24 4 1 12 2 120 12 24 35 5 15 88 6 94 92 52 108 1 1 2 -- 11 3 3 4 21 30 71 22 336 122 83 153 ------ ------ ------ ---- ------- ------- ------- ------- 250 350 1,429 193 9,017 2,497 1,993 3,745 (21) (44) (175) (28) (52) (179) (16) (155) -- -- -- -- -- -- (3) (6) -- -- -- -- -- -- (15) (23) (3) (3) (4) (3) (30) (3) -- (1) ------ ------ ------ ---- ------- ------- ------- ------- (24) (47) (179) (31) (82) (182) (34) (185) ------ ------ ------ ---- ------- ------- ------- ------- 226 303 1,250 162 8,935 2,315 1,959 3,560 ------ ------ ------ ---- ------- ------- ------- ------- 799 1,382 4,510 553 30,568 9,709 1,430 1,459 ------ ------ ------ ---- ------- ------- ------- ------- -- -- -- -- -- -- -- -- (5) 197 372 85 (7,921) (6,372) 17,037 20,734 -- -- -- -- 30(W) 133 -- -- -- -- -- -- (809) 32 -- (6) ------ ------ ------ ---- ------- ------- ------- ------- (5) 197 372 85 (8,700) (6,207) 17,037 20,728 ------ ------ ------ ---- ------- ------- ------- ------- 573 235 2,682 260 12,774 4,123 10,073 28,126 -- -- -- -- -- 38 -- -- -- -- -- -- (134) -- -- -- ------ ------ ------ ---- ------- ------- ------- ------- 573 235 2,682 260 12,640 4,161 10,073 28,126 ------ ------ ------ ---- ------- ------- ------- ------- 568 432 3,054 345 3,940 (2,046) 27,110 48,854 ------ ------ ------ ---- ------- ------- ------- ------- $1,367 $1,814 $7,564 $898 $34,508 $ 7,663 $28,540 $50,313 ====== ====== ====== ==== ======= ======= ======= =======
277 THE HARTFORD MUTUAL FUNDS, INC. AND THE HARTFORD MUTUAL FUNDS II, INC. STATEMENT OF CHANGES IN NET ASSETS (000'S OMITTED) --------------------------------------------------------------------------------
ADVISERS FUND AGGRESSIVE GROWTH ALLOCATION FUND* ----------------------------------- ----------------------------------- FOR THE YEAR FOR THE YEAR FOR THE YEAR FOR THE YEAR ENDED ENDED ENDED ENDED OCTOBER 31, 2006 OCTOBER 31, 2005 OCTOBER 31, 2006 OCTOBER 31, 2005 ---------------- ---------------- ---------------- ---------------- OPERATIONS: Net investment income (loss).................. $ 28,925 $ 32,907 $ (960) $ (503) Net realized gain (loss) on investments, futures, options and swap contracts and foreign currency transactions............... 192,670 122,160 5,650 544 Net unrealized appreciation (depreciation) of investments, futures, options and swap contracts and foreign currency transactions................................ (37,019) 3,416 16,350 4,848 ---------- ---------- -------- -------- Net increase (decrease) in net assets resulting from operations................... 184,576 158,483 21,040 4,889 ---------- ---------- -------- -------- DISTRIBUTIONS TO SHAREHOLDERS: From net investment income Class A..................................... (21,102) (27,412) (498) (35) Class B..................................... (4,044) (5,973) (30) (1) Class C..................................... (2,643) (3,839) (51) (2) Class E..................................... -- -- -- -- Class H..................................... -- -- -- -- Class I..................................... -- -- -- -- Class L..................................... -- -- -- -- Class M..................................... -- -- -- -- Class N..................................... -- -- -- -- Class Y..................................... (381) (344) -- -- Class Z..................................... -- -- -- -- From net realized gain on investments Class A..................................... -- -- (33) (1) Class B..................................... -- -- (12) -- Class C..................................... -- -- (19) -- Class E..................................... -- -- -- -- Class H..................................... -- -- -- -- Class I..................................... -- -- -- -- Class L..................................... -- -- -- -- Class M..................................... -- -- -- -- Class N..................................... -- -- -- -- Class Y..................................... -- -- -- -- Class Z..................................... -- -- -- -- ---------- ---------- -------- -------- Total distributions......................... (28,170) (37,568) (643) (39) ---------- ---------- -------- -------- CAPITAL SHARE TRANSACTIONS: Class A..................................... (213,361) (392,975) 46,720 43,217 Class B..................................... (129,449) (139,987) 9,636 14,732 Class C..................................... (54,492) (118,673) 13,717 25,790 Class E..................................... -- -- -- -- Class H..................................... -- -- -- -- Class I..................................... -- -- 10 -- Class L..................................... -- -- -- -- Class M..................................... -- -- -- -- Class N..................................... -- -- -- -- Class Y..................................... 929 1,012 -- -- Class Z..................................... -- -- -- -- ---------- ---------- -------- -------- Net increase (decrease) from capital share transactions................................ (396,373) (650,623) 70,083 83,739 ---------- ---------- -------- -------- Net increase (decrease) in net assets......... (239,967) (529,708) 90,480 88,589 NET ASSETS: Beginning of period........................... 1,929,353 2,459,061 110,960 22,371 ---------- ---------- -------- -------- End of period................................. $1,689,386 $1,929,353 $201,440 $110,960 ========== ========== ======== ======== Accumulated undistributed (distribution in excess of) net investment income.............. $ 3,002 $ 2,060 $ -- $ -- ========== ========== ======== ========
* Relates to investments in affiliated investment companies. ** Commencement of operations. The accompanying notes are an integral part of these financial statements. 278 --------------------------------------------------------------------------------
BALANCED ALLOCATION FUND* BALANCED INCOME FUND CAPITAL APPRECIATION FUND ----------------------------------- -------------------- ----------------------------------- FOR THE PERIOD FOR THE YEAR FOR THE YEAR JULY 31, 2006** FOR THE YEAR FOR THE YEAR ENDED ENDED THROUGH ENDED ENDED OCTOBER 31, 2006 OCTOBER 31, 2005 OCTOBER 31, 2006 OCTOBER 31, 2006 OCTOBER 31, 2005 ---------------- ---------------- ---------------- ---------------- ---------------- $ 7,389 $ 2,838 $ 93 $ 27,889 $ 4,278 18,415 890 (22) 1,151,100 1,118,465 36,316 11,897 436 876,917 274,627 -------- -------- ------- ----------- ---------- 62,120 15,625 507 2,055,906 1,397,370 -------- -------- ------- ----------- ---------- (6,476) (1,883) (57) -- -- (1,012) (179) (1) -- -- (1,529) (268) (1) -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- (1) -- -- -- -- -- -- -- (535) -- -- (572,137) -- (147) -- -- (164,902) -- (208) -- -- (185,821) -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- (21,922) -- -- -- -- -- -- -------- -------- ------- ----------- ---------- (9,907) (2,330) (60) (944,782) -- -------- -------- ------- ----------- ---------- 158,776 187,765 11,094 2,499,576 1,010,045 28,305 51,526 293 104,641 (53,909) 55,648 69,611 387 931,993 230,865 -- -- -- -- -- -- -- -- -- -- 348 -- -- 5,082 -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- 101 133,818 97,646 -- -- -- -- -- -------- -------- ------- ----------- ---------- 243,077 308,902 11,875 3,675,110 1,284,647 -------- -------- ------- ----------- ---------- 295,290 322,197 12,322 4,786,234 2,682,017 438,745 116,548 -- 9,782,815 7,100,798 -------- -------- ------- ----------- ---------- $734,035 $438,745 $12,322 $14,569,049 $9,782,815 ======== ======== ======= =========== ========== $ 495 $ 559 $ 42 $ 24,853 $ 7 ======== ======== ======= =========== ========== CAPITAL APPRECIATION II FUND ----------------------------------- FOR THE PERIOD FOR THE YEAR APRIL 29, 2005** ENDED THROUGH OCTOBER 31, 2006 OCTOBER 31, 2005 ---------------- ---------------- $ (777) $ (121) 8,124 1,147 22,928 1,410 -------- ------- 30,275 2,436 -------- ------- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- (813) -- (92) -- (283) -- -- -- -- -- -- -- -- -- -- -- -- -- (4) -- -- -- -------- ------- (1,192) -- -------- ------- 164,838 55,083 20,583 6,190 70,917 19,141 -- -- -- -- 3,203 -- -- -- -- -- -- -- (254) 300 -- -- -------- ------- 259,287 80,714 -------- ------- 288,370 83,150 83,150 -- -------- ------- $371,520 $83,150 ======== ======= $ (194) $ -- ======== =======
279 THE HARTFORD MUTUAL FUNDS, INC. AND THE HARTFORD MUTUAL FUNDS II, INC. STATEMENT OF CHANGES IN NET ASSETS -- (CONTINUED) (000'S OMITTED) --------------------------------------------------------------------------------
CONSERVATIVE ALLOCATION FUND* DISCIPLINED EQUITY FUND ----------------------------------- ----------------------------------- FOR THE YEAR FOR THE YEAR FOR THE YEAR FOR THE YEAR ENDED ENDED ENDED ENDED OCTOBER 31, 2006 OCTOBER 31, 2005 OCTOBER 31, 2006 OCTOBER 31, 2005 ---------------- ---------------- ---------------- ---------------- OPERATIONS: Net investment income (loss)........................ $ 2,841 $ 1,781 $ 1,769 $ 2,455 Net realized gain (loss) on investments, futures, options and swap contracts and foreign currency transactions...................................... 4,184 1,108 19,680 30,446 Net unrealized appreciation (depreciation) of investments, futures, options and swap contracts and foreign currency transactions................. 4,918 354 24,046 4,992 -------- -------- -------- -------- Net increase (decrease) in net assets resulting from operations........................................ 11,943 3,243 45,495 37,893 -------- -------- -------- -------- DISTRIBUTIONS TO SHAREHOLDERS: From net investment income Class A........................................... (2,296) (1,112) (305) (1,780) Class B........................................... (371) (127) -- (24) Class C........................................... (698) (262) -- (42) Class E........................................... -- -- -- -- Class H........................................... -- -- -- -- Class I........................................... -- -- -- -- Class L........................................... -- -- -- -- Class M........................................... -- -- -- -- Class N........................................... -- -- -- -- Class Y........................................... -- -- (573) (346) Class Z........................................... -- -- -- -- From net realized gain on investments Class A........................................... (772) -- -- -- Class B........................................... (162) -- -- -- Class C........................................... (301) -- -- -- Class E........................................... -- -- -- -- Class H........................................... -- -- -- -- Class I........................................... -- -- -- -- Class L........................................... -- -- -- -- Class M........................................... -- -- -- -- Class N........................................... -- -- -- -- Class Y........................................... -- -- -- -- Class Z........................................... -- -- -- -- -------- -------- -------- -------- Total distributions............................... (4,600) (1,501) (878) (2,192) -------- -------- -------- -------- CAPITAL SHARE TRANSACTIONS: Class A........................................... 18,487 35,327 (42,915) (55,312) Class B........................................... 5,262 9,320 (8,227) (9,136) Class C........................................... 6,806 16,401 (7,938) (11,195) Class E........................................... -- -- -- -- Class H........................................... -- -- -- -- Class I........................................... 10 -- -- -- Class L........................................... -- -- -- -- Class M........................................... -- -- -- -- Class N........................................... -- -- -- -- Class Y........................................... -- -- 73,479 58,623 Class Z........................................... -- -- -- -- -------- -------- -------- -------- Net increase (decrease) from capital share transactions...................................... 30,565 61,048 14,399 (17,020) -------- -------- -------- -------- Net increase (decrease) in net assets............... 37,908 62,790 59,016 18,681 NET ASSETS: Beginning of period................................. 112,511 49,721 364,799 346,118 -------- -------- -------- -------- End of period....................................... $150,419 $112,511 $423,815 $364,799 ======== ======== ======== ======== Accumulated undistributed (distribution in excess of) net investment income............................... $ 262 $ 328 $ 1,454 $ 600 ======== ======== ======== ========
* Relates to investments in affiliated investment companies. ** Commencement of operations. The accompanying notes are an integral part of these financial statements. 280 --------------------------------------------------------------------------------
DIVIDEND AND GROWTH FUND EQUITY INCOME FUND FLOATING RATE FUND ----------------------------------- ----------------------------------- ----------------------------------- FOR THE PERIOD FOR THE YEAR FOR THE YEAR FOR THE YEAR FOR THE YEAR FOR THE YEAR APRIL 29, 2005** ENDED ENDED ENDED ENDED ENDED THROUGH OCTOBER 31, 2006 OCTOBER 31, 2005 OCTOBER 31, 2006 OCTOBER 31, 2005 OCTOBER 31, 2006 OCTOBER 31, 2005 ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- $ 36,502 $ 30,193 $ 10,142 $ 8,781 $ 78,527 $ 2,828 217,765 114,099 26,401 1,270 85 40 274,628 102,952 55,584 20,042 (3,986) (284) ---------- ---------- -------- -------- ---------- -------- 528,895 247,244 92,127 30,093 74,626 2,584 ---------- ---------- -------- -------- ---------- -------- (30,971) (26,573) (9,508) (6,785) (50,770) (1,821) (1,759) (1,659) (503) (367) (1,203) (61) (1,845) (1,776) (793) (749) (22,840) (785) -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- (276) -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- (2,148) (1,670) (86) (17) (2,763) (158) -- -- -- -- -- -- (83,984) (19,192) (1,087) (457) -- -- (13,875) (3,381) (97) (40) -- -- (11,357) (2,925) (149) (93) -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- (4,558) (723) (2) (1) -- -- -- -- -- -- -- -- ---------- ---------- -------- -------- ---------- -------- (150,497) (57,899) (12,225) (8,509) (77,852) (2,825) ---------- ---------- -------- -------- ---------- -------- 230,196 131,765 84,470 150,915 1,332,988 169,576 (19,449) 386 3,668 14,075 36,573 5,656 1,114 (16,919) 131 6,170 737,213 92,857 -- -- -- -- -- -- -- -- -- -- -- -- 10 -- 106 -- 61,874 -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- 3,558 39,561 6,044 386 40,849 10,068 -- -- -- -- -- -- ---------- ---------- -------- -------- ---------- -------- 215,429 154,793 94,419 171,546 2,209,497 278,157 ---------- ---------- -------- -------- ---------- -------- 593,827 344,138 174,321 193,130 2,206,271 277,916 2,849,011 2,504,873 467,812 274,682 277,916 -- ---------- ---------- -------- -------- ---------- -------- $3,442,838 $2,849,011 $642,133 $467,812 $2,484,187 $277,916 ========== ========== ======== ======== ========== ======== $ 920 $ 1,335 $ 665 $ 1,452 $ 2,092 $ 89 ========== ========== ======== ======== ========== ======== FOCUS FUND ----------------------------------- FOR THE YEAR FOR THE YEAR ENDED ENDED OCTOBER 31, 2006 OCTOBER 31, 2005 ---------------- ---------------- $ (110) $ 385 9,782 6,980 (4,066) 3,890 -------- -------- 5,606 11,255 -------- -------- (316) (31) -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- (5) (3) -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -------- -------- (321) (34) -------- -------- (13,031) (24,122) (2,988) (5,339) (4,749) (9,446) -- -- -- -- -- -- -- -- -- -- -- -- (21) (419) -- -- -------- -------- (20,789) (39,326) -------- -------- (15,504) (28,105) 82,433 110,538 -------- -------- $ 66,929 $ 82,433 ======== ======== $ -- $ 321 ======== ========
281 THE HARTFORD MUTUAL FUNDS, INC. AND THE HARTFORD MUTUAL FUNDS II, INC. STATEMENT OF CHANGES IN NET ASSETS -- (CONTINUED) (000'S OMITTED) --------------------------------------------------------------------------------
GLOBAL COMMUNICATIONS FUND GLOBAL FINANCIAL SERVICES FUND ----------------------------------- ----------------------------------- FOR THE YEAR FOR THE YEAR FOR THE YEAR FOR THE YEAR ENDED ENDED ENDED ENDED OCTOBER 31, 2006 OCTOBER 31, 2005 OCTOBER 31, 2006 OCTOBER 31, 2005 ---------------- ---------------- ---------------- ---------------- OPERATIONS: Net investment income (loss)........................ $ 469 $ 262 $ 224 $ 143 Net realized gain (loss) on investments, futures, options and swap contracts and foreign currency transactions...................................... 3,642 1,458 2,138 960 Net unrealized appreciation (depreciation) of investments, futures, options and swap contracts and foreign currency transactions................. (1,714) 2,275 2,247 1,176 ------- ------- ------- ------- Net increase (decrease) in net assets resulting from operations........................................ 2,397 3,995 4,609 2,279 ------- ------- ------- ------- DISTRIBUTIONS TO SHAREHOLDERS: From net investment income Class A........................................... (265) (95) (136) (158) Class B........................................... (29) (5) (13) (17) Class C........................................... (27) (4) (8) (13) Class E........................................... -- -- -- -- Class H........................................... -- -- -- -- Class I........................................... -- -- -- -- Class L........................................... -- -- -- -- Class M........................................... -- -- -- -- Class N........................................... -- -- -- -- Class Y........................................... (12) (2) (10) (10) Class Z........................................... -- -- -- -- From net realized gain on investments Class A........................................... -- -- -- -- Class B........................................... -- -- -- -- Class C........................................... -- -- -- -- Class E........................................... -- -- -- -- Class H........................................... -- -- -- -- Class I........................................... -- -- -- -- Class L........................................... -- -- -- -- Class M........................................... -- -- -- -- Class N........................................... -- -- -- -- Class Y........................................... -- -- -- -- Class Z........................................... -- -- -- -- ------- ------- ------- ------- Total distributions............................... (333) (106) (167) (198) ------- ------- ------- ------- CAPITAL SHARE TRANSACTIONS: Class A........................................... 53 4,186 4,383 (369) Class B........................................... 907 844 27 (223) Class C........................................... 2,063 1,012 711 48 Class E........................................... -- -- -- -- Class H........................................... -- -- -- -- Class I........................................... -- -- -- -- Class L........................................... -- -- -- -- Class M........................................... -- -- -- -- Class N........................................... -- -- -- -- Class Y........................................... 237 386 11 56 Class Z........................................... -- -- -- -- ------- ------- ------- ------- Net increase (decrease) from capital share transactions...................................... 3,260 6,428 5,132 (488) ------- ------- ------- ------- Net increase (decrease) in net assets............... 5,324 10,317 9,574 1,593 NET ASSETS: Beginning of period................................. 22,204 11,887 20,647 19,054 ------- ------- ------- ------- End of period....................................... $27,528 $22,204 $30,221 $20,647 ======= ======= ======= ======= Accumulated undistributed (distribution in excess of) net investment income............................... $ 368 $ 253 $ 180 $ 122 ======= ======= ======= =======
* Relates to investments in affiliated investment companies. ** Commencement of operations. The accompanying notes are an integral part of these financial statements. 282 --------------------------------------------------------------------------------
GLOBAL HEALTH FUND GLOBAL LEADERS FUND GLOBAL TECHNOLOGY 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, 2006 OCTOBER 31, 2005 OCTOBER 31, 2006 OCTOBER 31, 2005 OCTOBER 31, 2006 OCTOBER 31, 2005 ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- $ (3,491) $ (2,905) $ (2,107) $ 1,880 $ (632) $ (169) 32,118 34,223 36,269 68,810 4,920 5,112 56,374 29,513 71,332 (58,342) 2,424 1,258 -------- -------- -------- -------- ------- -------- 85,001 60,831 105,494 12,348 6,712 6,201 -------- -------- -------- -------- ------- -------- -- -- (390) -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- (529) -- -- -- -- -- -- -- -- -- (12,743) (8,795) (4,725) -- -- -- (4,508) (3,502) (945) -- -- -- (4,593) (3,266) (851) -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- (9,979) (64) (936) -- -- -- -- -- -- -- -- -- -------- -------- -------- -------- ------- -------- (31,823) (15,627) (8,376) -- -- -- -------- -------- -------- -------- ------- -------- 135,221 21,305 (62,248) (55,206) 2,124 (7,218) 3,929 (808) (14,964) (12,061) (1,251) (1,925) 19,185 5,459 (15,195) (16,831) (509) (4,483) -- -- -- -- -- -- -- -- -- -- -- -- 784 -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- 6,834 152,727 69,172 23,402 56 (369) -- -- -- -- -- -- -------- -------- -------- -------- ------- -------- 165,953 178,683 (23,235) (60,696) 420 (13,995) -------- -------- -------- -------- ------- -------- 219,131 223,887 73,883 (48,348) 7,132 (7,794) 523,283 299,396 654,153 702,501 51,679 59,473 -------- -------- -------- -------- ------- -------- $742,414 $523,283 $728,036 $654,153 $58,811 $ 51,679 ======== ======== ======== ======== ======= ======== $ -- $ -- $ (1,589) $ 918 $ -- $ -- ======== ======== ======== ======== ======= ======== GROWTH ALLOCATION FUND* ----------------------------------- FOR THE YEAR FOR THE YEAR ENDED ENDED OCTOBER 31, 2006 OCTOBER 31, 2005 ---------------- ---------------- $ 1,067 $ 304 16,739 320 42,499 14,053 -------- -------- 60,305 14,677 -------- -------- (2,497) (223) (354) (34) (533) (49) -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- (180) -- (58) -- (89) -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -------- -------- (3,711) (306) -------- -------- 132,987 153,777 32,436 49,107 65,914 75,477 -- -- -- -- 10 -- -- -- -- -- -- -- -- -- -- -- -------- -------- 231,347 278,361 -------- -------- 287,941 292,732 371,409 78,677 -------- -------- $659,350 $371,409 ======== ======== $ -- $ -- ======== ========
283 THE HARTFORD MUTUAL FUNDS, INC. AND THE HARTFORD MUTUAL FUNDS II, INC. STATEMENT OF CHANGES IN NET ASSETS -- (CONTINUED) (000'S OMITTED) --------------------------------------------------------------------------------
GROWTH FUND GROWTH OPPORTUNITIES FUND ----------------------------------- ----------------------------------- FOR THE YEAR FOR THE YEAR FOR THE YEAR FOR THE YEAR ENDED ENDED ENDED ENDED OCTOBER 31, 2006 OCTOBER 31, 2005 OCTOBER 31, 2006 OCTOBER 31, 2005 ---------------- ---------------- ---------------- ---------------- OPERATIONS: Net investment income (loss)........................ $ (4,664) $ (2,884) $ (3,351) $ (2,756) Net realized gain (loss) on investments, futures, options and swap contracts and foreign currency transactions...................................... 91,434 65,368 91,760 144,342 Net unrealized appreciation (depreciation) of investments, futures, options and swap contracts and foreign currency transactions................. (13,106) 5,174 40,740 (5,473) ---------- ---------- ---------- -------- Net increase (decrease) in net assets resulting from operations........................................ 73,664 67,658 129,149 136,113 ---------- ---------- ---------- -------- DISTRIBUTIONS TO SHAREHOLDERS: From net investment income Class A........................................... -- -- -- -- Class B........................................... -- -- -- -- Class C........................................... -- -- -- -- Class E........................................... -- -- -- -- Class H........................................... -- -- -- -- Class I........................................... -- -- -- -- Class L........................................... -- -- -- -- Class M........................................... -- -- -- -- Class N........................................... -- -- -- -- Class Y........................................... -- -- -- -- Class Z........................................... -- -- -- -- From net realized gain on investments Class A........................................... -- -- (16,437) -- Class B........................................... -- -- (1,683) -- Class C........................................... -- -- (1,629) -- Class E........................................... -- -- -- -- Class H........................................... -- -- (3,075) -- Class I........................................... -- -- -- -- Class L........................................... -- -- (40,032) -- Class M........................................... -- -- (1,828) -- Class N........................................... -- -- (437) -- Class Y........................................... -- -- (2,034) -- Class Z........................................... -- -- (2,353) -- ---------- ---------- ---------- -------- Total distributions............................... -- -- (69,508) -- ---------- ---------- ---------- -------- CAPITAL SHARE TRANSACTIONS: Class A........................................... 30,454 216,074 180,515 148,576 Class B........................................... (4,655) 11,547 12,706 5,987 Class C........................................... (1,589) 31,324 27,322 4,571 Class E........................................... -- -- -- -- Class H........................................... (5,667) (5,076) (5,285) (8,150) Class I........................................... 1,972 -- 73 -- Class L........................................... (40,151) (36,168) (18,780) (54,451) Class M........................................... (4,227) (3,691) (2,071) (3,811) Class N........................................... (799) (259) (208) (520) Class Y........................................... 74,184 38,875 42,388 21,478 Class Z........................................... -- -- (548) (4,905) ---------- ---------- ---------- -------- Net increase (decrease) from capital share transactions...................................... 49,522 252,626 236,112 108,775 ---------- ---------- ---------- -------- Net increase (decrease) in net assets............... 123,186 320,284 295,753 244,888 NET ASSETS: Beginning of period................................. 1,155,874 835,590 945,612 700,724 ---------- ---------- ---------- -------- End of period....................................... $1,279,060 $1,155,874 $1,241,365 $945,612 ========== ========== ========== ======== Accumulated undistributed (distribution in excess of) net investment income......................... $ -- $ -- $ -- $ -- ========== ========== ========== ========
* Relates to investments in affiliated investment companies. ** Commencement of operations. The accompanying notes are an integral part of these financial statements. 284 --------------------------------------------------------------------------------
HIGH YIELD FUND INCOME ALLOCATION FUND* INCOME 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, 2006 OCTOBER 31, 2005 OCTOBER 31, 2006 OCTOBER 31, 2005 OCTOBER 31, 2006 OCTOBER 31, 2005 ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- $ 19,942 $ 20,563 $ 1,414 $ 880 $ 3,863 $ 2,301 (3,784) 8,198 (362) (2) (253) (326) 10,649 (25,299) 486 (758) 1,269 (1,740) -------- -------- ------- ------- -------- ------- 26,807 3,462 1,538 120 4,879 235 -------- -------- ------- ------- -------- ------- (13,101) (13,732) (961) (575) (1,656) (1,399) (2,531) (3,018) (181) (107) (280) (234) (2,704) (3,402) (308) (191) (253) (227) -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- (1,794) (1,366) -- -- (1,607) (494) -- -- -- -- -- -- -- -- (29) (1) -- (116) -- -- (7) -- -- (22) -- -- (12) -- -- (22) -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -------- -------- ------- ------- -------- ------- (20,130) (21,518) (1,498) (874) (3,796) (2,514) -------- -------- ------- ------- -------- ------- (2,369) (47,780) 5,906 9,355 7,955 674 (10,799) (14,067) 730 3,192 1,180 694 (11,907) (17,642) 331 3,032 2,883 (167) -- -- -- -- -- -- -- -- -- -- -- -- -- -- 10 -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- (2,158) 10,715 -- -- 43,594 16,873 -- -- -- -- -- -- -------- -------- ------- ------- -------- ------- (27,233) (68,774) 6,977 15,579 55,612 18,074 -------- -------- ------- ------- -------- ------- (20,556) (86,830) 7,017 14,825 56,695 15,795 312,589 399,419 31,934 17,109 56,488 40,693 -------- -------- ------- ------- -------- ------- $292,033 $312,589 $38,951 $31,934 $113,183 $56,488 ======== ======== ======= ======= ======== ======= $ 42 $ 291 $ 5 $ 8 $ 54 $ 18 ======== ======== ======= ======= ======== ======= INFLATION PLUS FUND ----------------------------------- FOR THE YEAR FOR THE YEAR ENDED ENDED OCTOBER 31, 2006 OCTOBER 31, 2005 ---------------- ---------------- < $ 37,125 $ 31,636 (16,029) 4,137 (6,365) (23,029) ---------- ---------- 14,731 12,744 ---------- ---------- (14,188) (14,269) (3,582) (3,620) (10,486) (11,262) -- -- -- -- -- -- -- -- -- -- -- -- (5,352) (2,800) -- -- (1,331) (2,567) (382) (878) (1,204) (2,606) -- -- -- -- -- -- -- -- -- -- -- -- (312) (205) -- -- ---------- ---------- (36,837) (38,207) ---------- ---------- (123,445) 111,228 (24,243) 14,456 (118,279) 63,634 -- -- -- -- 18 -- -- -- -- -- -- -- 46,885 74,962 -- -- ---------- ---------- (219,064) 264,280 ---------- ---------- (241,170) 238,817 1,003,777 764,960 ---------- ---------- $ 762,607 $1,003,777 ========== ========== $ 4,125 $ 852 ========== ==========
285 THE HARTFORD MUTUAL FUNDS, INC. AND THE HARTFORD MUTUAL FUNDS II, INC. STATEMENT OF CHANGES IN NET ASSETS -- (CONTINUED) (000'S OMITTED) --------------------------------------------------------------------------------
INTERNATIONAL CAPITAL APPRECIATION FUND INTERNATIONAL OPPORTUNITIES FUND --------------------------------------- ----------------------------------- FOR THE YEAR FOR THE YEAR FOR THE YEAR FOR THE YEAR ENDED ENDED ENDED ENDED OCTOBER 31, 2006 OCTOBER 31, 2005 OCTOBER 31, 2006 OCTOBER 31, 2005 ------------------ ------------------ ---------------- ---------------- OPERATIONS: Net investment income (loss)..................... $ 91 $ 1,163 $ 1,771 $ 304 Net realized gain (loss) on investments, futures, options and swap contracts and foreign currency transactions................................... 29,594 2,468 22,793 22,733 Net unrealized appreciation (depreciation) of investments, futures, options and swap contracts and foreign currency transactions.... 35,016 2,447 17,051 (1,334) -------- -------- -------- -------- Net increase (decrease) in net assets resulting from operations................................ 64,701 6,078 41,615 21,703 -------- -------- -------- -------- DISTRIBUTIONS TO SHAREHOLDERS: From net investment income Class A........................................ (526) -- (378) -- Class B........................................ -- -- -- -- Class C........................................ -- -- -- -- Class E........................................ -- -- -- -- Class H........................................ -- -- -- -- Class I........................................ -- -- -- -- Class L........................................ -- -- -- -- Class M........................................ -- -- -- -- Class N........................................ -- -- -- -- Class Y........................................ (654) -- (131) -- Class Z........................................ -- -- -- -- From net realized gain on investments Class A........................................ (1,438) -- -- -- Class B........................................ (261) -- -- -- Class C........................................ (346) -- -- -- Class E........................................ -- -- -- -- Class H........................................ -- -- -- -- Class I........................................ -- -- -- -- Class L........................................ -- -- -- -- Class M........................................ -- -- -- -- Class N........................................ -- -- -- -- Class Y........................................ (836) -- -- -- Class Z........................................ -- -- -- -- -------- -------- -------- -------- Total distributions............................ (4,061) -- (509) -- -------- -------- -------- -------- CAPITAL SHARE TRANSACTIONS: Class A........................................ 49,389 78,629 30,451 178 Class B........................................ 5,639 12,942 (187) (2,994) Class C........................................ 6,985 16,059 149 (1,269) Class E........................................ -- -- -- -- Class H........................................ -- -- -- -- Class I........................................ 10 -- -- -- Class L........................................ -- -- -- -- Class M........................................ -- -- -- -- Class N........................................ -- -- -- -- Class Y........................................ (19,973) 43,463 32,628 537 Class Z........................................ -- -- -- -- -------- -------- -------- -------- Net increase (decrease) from capital share transactions................................... 42,050 151,093 63,041 (3,548) -------- -------- -------- -------- Net increase (decrease) in net assets............ 102,690 157,171 104,147 18,155 NET ASSETS: Beginning of period.............................. 257,871 100,700 148,841 130,686 -------- -------- -------- -------- End of period.................................... $360,561 $257,871 $252,988 $148,841 ======== ======== ======== ======== Accumulated undistributed (distribution in excess of) net investment income........................ $ (154) $ 961 $ 1,721 $ 482 ======== ======== ======== ========
* Relates to investments in affiliated investment companies. ** Commencement of operations. The accompanying notes are an integral part of these financial statements. 286 --------------------------------------------------------------------------------
INTERNATIONAL SMALL COMPANY FUND MIDCAP FUND MIDCAP GROWTH FUND ----------------------------------- ----------------------------------- ------------------ FOR THE PERIOD FOR THE YEAR FOR THE YEAR FOR THE YEAR FOR THE YEAR JULY 31, ENDED ENDED ENDED ENDED 2006** THROUGH OCTOBER 31, 2006 OCTOBER 31, 2005 OCTOBER 31, 2006 OCTOBER 31, 2005 OCTOBER 31, 2006 ---------------- ---------------- ---------------- ---------------- ---------------- $ 1,066 $ 879 $ (10,396) $ (11,958) $ (9) 26,962 12,016 493,070 489,086 81 11,245 4,039 (86,305) (18,554) 573 -------- -------- ---------- ---------- ------- 39,273 16,934 396,369 458,574 645 -------- -------- ---------- ---------- ------- (704) -- -- -- -- (83) -- -- -- -- (145) -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- (1,565) (134) -- -- -- -- -- -- -- -- (3,791) (2,648) (281,386) (32,520) -- (679) (419) (82,610) (9,709) -- (1,407) (1,146) (88,590) (10,682) -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- (7,015) (4,641) (22,904) (2,142) -- -- -- -- -- -- -------- -------- ---------- ---------- ------- (15,389) (8,988) (475,490) (55,053) -- -------- -------- ---------- ---------- ------- 27,750 8,749 196,666 (113,409) 9,727 4,607 2,062 5,553 (40,629) 281 3,908 1,851 20,240 (57,163) 341 -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- 7,563 18,650 46,422 15,529 100 -- -- -- -- -- -------- -------- ---------- ---------- ------- 43,828 31,312 268,881 (195,672) 10,449 -------- -------- ---------- ---------- ------- 67,712 39,258 189,760 207,849 11,094 119,439 80,181 2,780,277 2,572,428 -- -------- -------- ---------- ---------- ------- $187,151 $119,439 $2,970,037 $2,780,277 $11,094 ======== ======== ========== ========== ======= $ 2,242 $ (157) $ -- $ -- $ 1 ======== ======== ========== ========== ======= MIDCAP VALUE FUND ----------------------------------- FOR THE YEAR FOR THE YEAR ENDED ENDED OCTOBER 31, 2006 OCTOBER 31, 2005 ---------------- ---------------- $ (539) $ (2,245) 59,464 46,554 29,759 1,475 -------- -------- 88,684 45,784 -------- -------- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- (27,814) (21,012) (6,087) (4,659) (6,258) (5,152) -- -- -- -- -- -- -- -- -- -- -- -- (3,881) (221) -- -- -------- -------- (44,040) (31,044) -------- -------- (5,373) (9,469) (2,251) (2,748) (3,498) (7,585) -- -- -- -- -- -- -- -- -- -- -- -- (12,709) 35,896 -- -- -------- -------- (23,831) 16,094 -------- -------- 20,813 30,834 441,171 410,337 -------- -------- $461,984 $441,171 ======== ======== $ -- $ -- ======== ========
287 THE HARTFORD MUTUAL FUNDS, INC. AND THE HARTFORD MUTUAL FUNDS II, INC. STATEMENT OF CHANGES IN NET ASSETS -- (CONTINUED) (000'S OMITTED) --------------------------------------------------------------------------------
MONEY MARKET FUND RETIREMENT INCOME FUND* ----------------------------------- ----------------------------------- FOR THE PERIOD FOR THE YEAR FOR THE YEAR FOR THE YEAR SEPTEMBER 30, ENDED ENDED ENDED 2005** THROUGH OCTOBER 31, 2006 OCTOBER 31, 2005 OCTOBER 31, 2006 OCTOBER 31, 2005 ---------------- ---------------- ---------------- ---------------- OPERATIONS: Net investment income (loss)......................... $ 9,518 $ 4,587 $ 12 $-- Net realized gain (loss) on investments, futures, options and swap contracts and foreign currency transactions....................................... -- -- -- (1) Net unrealized appreciation (depreciation) of investments, futures, options and swap contracts and foreign currency transactions.................. -- -- 15 -- -------- -------- ---- --- Net increase (decrease) in net assets resulting from operations......................................... 9,518 4,587 27 (1) -------- -------- ---- --- DISTRIBUTIONS TO SHAREHOLDERS: From net investment income Class A............................................ (7,394) (3,610) (11) -- Class B............................................ (898) (414) (2) -- Class C............................................ (546) (239) (2) -- Class E............................................ -- -- -- -- Class H............................................ -- -- -- -- Class I............................................ -- -- -- -- Class L............................................ -- -- -- -- Class M............................................ -- -- -- -- Class N............................................ -- -- -- -- Class Y............................................ (680) (324) (3) -- Class Z............................................ -- -- -- -- From net realized gain on investments Class A............................................ -- -- -- -- Class B............................................ -- -- -- -- Class C............................................ -- -- -- -- Class E............................................ -- -- -- -- Class H............................................ -- -- -- -- Class I............................................ -- -- -- -- Class L............................................ -- -- -- -- Class M............................................ -- -- -- -- Class N............................................ -- -- -- -- Class Y............................................ -- -- -- -- Class Z............................................ -- -- -- -- -------- -------- ---- --- Total distributions................................ (9,518) (4,587) (18) -- -------- -------- ---- --- CAPITAL SHARE TRANSACTIONS: Class A............................................ 25,284 (23,134) 370 48 Class B............................................ (2,721) (15,120) 161 10 Class C............................................ (1,793) (7,836) 148 10 Class E............................................ -- -- -- -- Class H............................................ -- -- -- -- Class I............................................ -- -- -- -- Class L............................................ -- -- -- -- Class M............................................ -- -- -- -- Class N............................................ -- -- -- -- Class Y............................................ (2,486) 6,416 103 10 Class Z............................................ -- -- -- -- -------- -------- ---- --- Net increase (decrease) from capital share transactions....................................... 18,284 (39,674) 782 78 -------- -------- ---- --- Net increase (decrease) in net assets................ 18,284 (39,674) 791 77 NET ASSETS: Beginning of period.................................. 247,928 287,602 77 -- -------- -------- ---- --- End of period........................................ $266,212 $247,928 $868 $77 ======== ======== ==== === Accumulated undistributed (distribution in excess of) net investment income................................ $ -- $ -- $ -- $-- ======== ======== ==== ===
* Relates to investments in affiliated investment companies. ** Commencement of operations. The accompanying notes are an integral part of these financial statements. 288 --------------------------------------------------------------------------------
SELECT MIDCAP GROWTH FUND SELECT MIDCAP VALUE FUND SELECT SMALLCAP GROWTH FUND ----------------------------------- ----------------------------------- ----------------------------------- FOR THE PERIOD FOR THE PERIOD FOR THE PERIOD FOR THE YEAR JANUARY 1, FOR THE YEAR APRIL 29, 2005** FOR THE YEAR SEPTEMBER 30, ENDED 2005** THROUGH ENDED THROUGH ENDED 2005** THROUGH OCTOBER 31, 2006 OCTOBER 31, 2005 OCTOBER 31, 2006 OCTOBER 31, 2005 OCTOBER 31, 2006 OCTOBER 31, 2005 ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- $ (368) $ (125) $ (86) $ (18) $ (86) $ (3) 2,239 195 2,875 609 (244) (18) 1,006 336 5,546 533 1,203 (232) -- -- -- -- -- -- ------- ------- ------- ------- ------- ------ 2,877 406 8,335 1,124 873 (253) ------- ------- ------- ------- ------- ------ -- -- (19) -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- (3) -- -- -- -- -- -- -- -- -- (149) -- (504) -- -- -- (24) -- (40) -- -- -- (17) -- (71) -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- (2) -- (12) -- -- -- -- -- -- -- -- -- ------- ------- ------- ------- ------- ------ (192) -- (649) -- -- -- ------- ------- ------- ------- ------- ------ 6,756 14,672 20,427 21,379 1,577 5,445 1,129 2,308 2,016 1,688 317 207 1,975 1,708 3,828 2,872 455 213 -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- 28,151 206 17,996 500 4,201 200 -- -- -- -- -- -- ------- ------- ------- ------- ------- ------ 38,011 18,894 44,267 26,439 6,550 6,065 ------- ------- ------- ------- ------- ------ 40,696 19,300 51,953 27,563 7,423 5,812 19,300 -- 27,563 -- 5,812 -- ------- ------- ------- ------- ------- ------ $59,996 $19,300 $79,516 $27,563 $13,235 $5,812 ======= ======= ======= ======= ======= ====== $ -- $ -- $ -- $ 1 $ -- $ -- ======= ======= ======= ======= ======= ====== SELECT SMALLCAP VALUE FUND -------------------------- FOR THE PERIOD JULY 31, 2006** THROUGH OCTOBER 31, 2006 ---------------- $ 30 126 1,316 -- ------- 1,472 ------- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- ------- -- ------- 14,491 283 256 -- -- -- -- -- -- 1,496 -- ------- 16,526 ------- 17,998 -- ------- $17,998 ======= $ 42 =======
289 THE HARTFORD MUTUAL FUNDS, INC. AND THE HARTFORD MUTUAL FUNDS II, INC. STATEMENT OF CHANGES IN NET ASSETS -- (CONTINUED) (000'S OMITTED) --------------------------------------------------------------------------------
SHORT DURATION FUND SMALL COMPANY FUND ----------------------------------- ----------------------------------- FOR THE YEAR FOR THE YEAR FOR THE YEAR FOR THE YEAR ENDED ENDED ENDED ENDED OCTOBER 31, 2006 OCTOBER 31, 2005 OCTOBER 31, 2006 OCTOBER 31, 2005 ---------------- ---------------- ---------------- ---------------- OPERATIONS: Net investment income (loss)......................... $ 4,782 $ 4,306 $ (3,588) $ (3,254) Net realized gain (loss) on investments, futures, options and swap contracts and foreign currency transactions....................................... (707) (984) 70,345 41,153 Net unrealized appreciation (depreciation) of investments, futures, options and swap contracts and foreign currency transactions.................. 1,324 (2,113) (14,828) 21,065 -------- -------- -------- -------- Net increase (decrease) in net assets resulting from operations......................................... 5,399 1,209 51,929 58,964 -------- -------- -------- -------- DISTRIBUTIONS TO SHAREHOLDERS: From net investment income Class A............................................ (933) (1,118) -- -- Class B............................................ (211) (246) -- -- Class C............................................ (480) (710) -- -- Class E............................................ -- -- -- -- Class H............................................ -- -- -- -- Class I............................................ -- -- -- -- Class L............................................ -- -- -- -- Class M............................................ -- -- -- -- Class N............................................ -- -- -- -- Class Y............................................ (3,180) (2,243) -- -- Class Z............................................ -- -- -- -- From net realized gain on investments Class A............................................ -- -- -- -- Class B............................................ -- -- -- -- Class C............................................ -- -- -- -- Class E............................................ -- -- -- -- Class H............................................ -- -- -- -- Class I............................................ -- -- -- -- Class L............................................ -- -- -- -- Class M............................................ -- -- -- -- Class N............................................ -- -- -- -- Class Y............................................ -- -- -- -- Class Z............................................ -- -- -- -- -------- -------- -------- -------- Total distributions................................ (4,804) (4,317) -- -- -------- -------- -------- -------- CAPITAL SHARE TRANSACTIONS: Class A............................................ (2,604) (9,129) 7,658 (28,458) Class B............................................ (2,089) (3,212) (13,527) (13,082) Class C............................................ (8,655) (11,289) (4,001) (13,738) Class E............................................ -- -- -- -- Class H............................................ -- -- -- -- Class I............................................ -- -- 69 -- Class L............................................ -- -- -- -- Class M............................................ -- -- -- -- Class N............................................ -- -- -- -- Class Y............................................ 19,381 52,383 57,068 20,619 Class Z............................................ -- -- -- -- -------- -------- -------- -------- Net increase (decrease) from capital share transactions....................................... 6,033 28,753 47,267 (34,659) -------- -------- -------- -------- Net increase (decrease) in net assets................ 6,628 25,645 99,196 24,305 NET ASSETS: Beginning of period.................................. 143,438 117,793 304,079 279,774 -------- -------- -------- -------- End of period........................................ $150,066 $143,438 $403,275 $304,079 ======== ======== ======== ======== Accumulated undistributed (distribution in excess of) net investment income................................ $ 1 $ 6 $ -- $ -- ======== ======== ======== ========
* Relates to investments in affiliated investment companies. ** Commencement of operations. + Included in these amounts was a return of capital in the amounts of $2 and $1 for Classes A and B, respectively. The accompanying notes are an integral part of these financial statements. 290 --------------------------------------------------------------------------------
SMALLCAP GROWTH FUND STOCK FUND TARGET RETIREMENT 2010 FUND* ----------------------------------- ----------------------------------- ----------------------------------- FOR THE PERIOD FOR THE YEAR FOR THE YEAR FOR THE YEAR FOR THE YEAR FOR THE YEAR SEPTEMBER 30, ENDED ENDED ENDED ENDED ENDED 2005** THROUGH OCTOBER 31, 2006 OCTOBER 31, 2005 OCTOBER 31, 2006 OCTOBER 31, 2005 OCTOBER 31, 2006 OCTOBER 31, 2005 ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- $ (1,069) $ (1,819) $ 3,896 $ 9,225 $ 22 $-- 26,723 29,026 179,777 75,380 -- -- 10,054 7,825 (15,893) 63,526 46 (1) -------- -------- ---------- ---------- ------ --- 35,708 35,032 167,780 148,131 68 (1) -------- -------- ---------- ---------- ------ --- -- -- (1,525) (5,607) (17)+ -- -- -- -- -- (3)+ -- -- -- -- -- (2) -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- (772) (1,017) (2) -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -------- -------- ---------- ---------- ------ --- -- -- (2,297) (6,624) (24) -- -------- -------- ---------- ---------- ------ --- 151,875 16,899 (137,391) (307,587) 1,572 12 1,344 2,544 (87,193) (94,047) 213 10 6,952 4,182 (43,306) (94,768) 462 10 -- -- -- -- -- -- (3,041) (4,402) -- -- -- -- 235 -- -- -- -- -- (13,323) (12,237) -- -- -- -- (2,473) (2,919) -- -- -- -- (704) (983) -- -- -- -- 45,888 47,224 7,983 18,040 122 10 -- -- -- -- -- -- -------- -------- ---------- ---------- ------ --- 186,753 50,308 (259,907) (478,362) 2,369 42 -------- -------- ---------- ---------- ------ --- 222,461 85,340 (94,424) (336,855) 2,413 41 310,023 224,683 1,296,102 1,632,957 41 -- -------- -------- ---------- ---------- ------ --- $532,484 $310,023 $1,201,678 $1,296,102 $2,454 $41 ======== ======== ========== ========== ====== === $ -- $ -- $ 4,107 $ 2,294 $ -- $-- ======== ======== ========== ========== ====== === TARGET RETIREMENT 2020 FUND* ----------------------------------- FOR THE PERIOD FOR THE YEAR SEPTEMBER 30, ENDED 2005** THROUGH OCTOBER 31, 2006 OCTOBER 31, 2005 ---------------- ---------------- $ 10 $ -- 13 (1) 82 1 ------ ---- 105 -- ------ ---- (15) -- (1) -- (1) -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- ------ ---- (17) -- ------ ---- 1,919 144 270 10 313 10 -- -- -- -- -- -- -- -- -- -- -- -- -- 10 -- -- ------ ---- 2,502 174 ------ ---- 2,590 174 174 -- ------ ---- $2,764 $174 ====== ==== $ -- $ -- ====== ====
291 THE HARTFORD MUTUAL FUNDS, INC. AND THE HARTFORD MUTUAL FUNDS II, INC. STATEMENT OF CHANGES IN NET ASSETS -- (CONTINUED) (000'S OMITTED) --------------------------------------------------------------------------------
TARGET RETIREMENT 2030 FUND* TAX-FREE CALIFORNIA FUND ----------------------------------- ----------------------------------- FOR THE PERIOD FOR THE YEAR SEPTEMBER 30, FOR THE YEAR FOR THE YEAR ENDED 2005** THROUGH ENDED ENDED OCTOBER 31, 2006 OCTOBER 31, 2005 OCTOBER 31, 2006 OCTOBER 31, 2005 ---------------- ---------------- ---------------- ---------------- OPERATIONS: Net investment income (loss)........................ $ 2 $-- $ 799 $ 629 Net realized gain (loss) on investments, futures, options and swap contracts and foreign currency transactions...................................... 1 -- (5) 60 Net unrealized appreciation (depreciation) of investments, futures, options and swap contracts and foreign currency transactions................. 83 (1) 573 (77) ------ --- ------- ------- Net increase (decrease) in net assets resulting from operations........................................ 86 (1) 1,367 612 ------ --- ------- ------- DISTRIBUTIONS TO SHAREHOLDERS: From net investment income Class A........................................... (3)+ -- (689) (548) Class B........................................... (2)+ -- (43) (33) Class C........................................... (1)+ -- (68) (47) Class E........................................... -- -- -- -- Class H........................................... -- -- -- -- Class I........................................... -- -- -- -- Class L........................................... -- -- -- -- Class M........................................... -- -- -- -- Class N........................................... -- -- -- -- Class Y........................................... (1) -- -- -- Class Z........................................... -- -- -- -- From net realized gain on investments Class A........................................... -- -- (10) -- Class B........................................... -- -- (1) -- Class C........................................... -- -- (1) -- Class E........................................... -- -- -- -- Class H........................................... -- -- -- -- Class I........................................... -- -- -- -- Class L........................................... -- -- -- -- Class M........................................... -- -- -- -- Class N........................................... -- -- -- -- Class Y........................................... -- -- -- -- Class Z........................................... -- -- -- -- ------ --- ------- ------- Total distributions............................... (7) -- (812) (628) ------ --- ------- ------- CAPITAL SHARE TRANSACTIONS: Class A........................................... 1,784 10 8,736 763 Class B........................................... 283 10 232 293 Class C........................................... 69 10 1,436 492 Class E........................................... -- -- -- -- Class H........................................... -- -- -- -- Class I........................................... -- -- -- -- Class L........................................... -- -- -- -- Class M........................................... -- -- -- -- Class N........................................... -- -- -- -- Class Y........................................... 21 10 -- -- Class Z........................................... -- -- -- -- ------ --- ------- ------- Net increase (decrease) from capital share transactions...................................... 2,157 40 10,404 1,548 ------ --- ------- ------- Net increase (decrease) in net assets............... 2,236 39 10,959 1,532 NET ASSETS: Beginning of period................................. 39 -- 18,843 17,311 ------ --- ------- ------- End of period....................................... $2,275 $39 $29,802 $18,843 ====== === ======= ======= Accumulated undistributed (distribution in excess of) net investment income............................... $ -- $-- $ 2 $ 3 ====== === ======= =======
* Relates to investments in affiliated investment companies. ** Commencement of operations. + Included in these amounts was a return of capital in the amounts of $2, $1 and $1 for Classes A, B and C, respectively. The accompanying notes are an integral part of these financial statements. 292 --------------------------------------------------------------------------------
TAX-FREE MINNESOTA FUND TAX-FREE NATIONAL FUND TAX-FREE NEW YORK 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, 2006 OCTOBER 31, 2005 OCTOBER 31, 2006 OCTOBER 31, 2005 OCTOBER 31, 2006 OCTOBER 31, 2005 ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- $ 1,382 $ 1,341 $ 4,510 $ 3,645 $ 553 $ 486 197 57 372 698 85 32 235 (802) 2,682 (1,637) 260 (160) ------- ------- -------- -------- ------- ------- 1,814 596 7,564 2,706 898 358 ------- ------- -------- -------- ------- ------- (247) (188) (2,337) (1,544) (421) (378) (25) (22) (224) (210) (54) (46) (13) (11) (354) (258) (80) (61) (967) (1,013) (1,234) (1,259) -- -- (4) (4) (8) (14) -- -- -- -- -- -- -- -- (107) (108) (316) (301) -- -- (4) (4) (41) (42) -- -- (6) (6) (14) (17) -- -- -- -- -- -- -- -- -- -- -- -- -- -- (9) -- (315) -- (23) (17) (1) -- (46) -- (4) (2) (1) -- (58) -- (5) (3) (41) -- (210) -- -- -- -- -- (2) -- -- -- -- -- -- -- -- -- (5) -- (54) -- -- -- -- -- (9) -- -- -- -- -- (4) -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- ------- ------- -------- -------- ------- ------- (1,430) (1,356) (5,226) (3,645) (587) (507) ------- ------- -------- -------- ------- ------- 1,226 1,369 24,443 11,403 (243) 763 (19) 186 (267) 713 (22) 244 (11) 105 4,163 224 (237) 733 (2,213) (1,020) (2,570) (848) -- -- (1) 3 (103) (360) -- -- -- -- -- -- -- -- (273) 185 (492) 339 -- -- (8) (75) (60) (91) -- -- (4) (13) (127) (48) -- -- -- 9 1 9 -- -- -- -- -- -- -- -- ------- ------- -------- -------- ------- ------- (1,303) 749 24,988 11,341 (502) 1,740 ------- ------- -------- -------- ------- ------- (919) (11) 27,326 10,402 (191) 1,591 35,889 35,900 102,588 92,186 15,673 14,082 ------- ------- -------- -------- ------- ------- $34,970 $35,889 $129,914 $102,588 $15,482 $15,673 ======= ======= ======== ======== ======= ======= $ 10 $ 1 $ 3 $ 21 $ 2 $ 4 ======= ======= ======== ======== ======= ======= TOTAL RETURN BOND FUND ----------------------------------- FOR THE YEAR FOR THE YEAR ENDED ENDED OCTOBER 31, 2006 OCTOBER 31, 2005 ---------------- ---------------- $ 30,568 $ 19,599 (8,700) 5,437 12,640 (20,037) -------- -------- 34,508 4,999 -------- -------- (14,515) (11,070) (2,504) (2,517) (2,387) (2,408) -- -- -- -- -- -- -- -- -- -- -- -- (11,078) (6,306) -- -- (1,753) (1,135) (454) (350) (413) (338) -- -- -- -- -- -- -- -- -- -- -- -- (1,059) (399) -- -- -------- -------- (34,163) (24,523) -------- -------- 120,743 22,124 (1,319) (8,201) 1,327 (13,022) -- -- -- -- 38 -- -- -- -- -- -- -- 96,782 91,775 -- -- -------- -------- 217,571 92,676 -------- -------- 217,916 73,152 654,780 581,628 -------- -------- $872,696 $654,780 ======== ======== $ 656 $ 673 ======== ========
293 THE HARTFORD MUTUAL FUNDS, INC. AND THE HARTFORD MUTUAL FUNDS II, INC. STATEMENT OF CHANGES IN NET ASSETS -- (CONTINUED) (000'S OMITTED) --------------------------------------------------------------------------------
U.S. GOVERNMENT SECURITIES FUND ----------------------------------------- FOR THE YEAR FOR THE YEAR ENDED ENDED OCTOBER 31, 2006 OCTOBER 31, 2005 ---------------- ---------------- OPERATIONS: Net investment income (loss).............................. $ 9,709 $ 10,461 Net realized gain (loss) on investments, futures, options and swap contracts and foreign currency transactions.... (6,207) (2,240) Net unrealized appreciation (depreciation) of investments, futures, options and swap contracts and foreign currency transactions............................................ 4,161 (6,406) -------- -------- Net increase (decrease) in net assets resulting from operations.............................................. 7,663 1,815 -------- -------- DISTRIBUTIONS TO SHAREHOLDERS: From net investment income Class A................................................. (2,091) (2,127) Class B................................................. (734) (834) Class C................................................. (353) (422) Class E................................................. (4,784) (5,161) Class H................................................. (92) (119) Class I................................................. -- -- Class L................................................. (1,529) (1,590) Class M................................................. (97) (111) Class N................................................. (30) (35) Class Y................................................. (117) (292) Class Z................................................. -- -- From net realized gain on investments Class A................................................. -- -- Class B................................................. -- -- Class C................................................. -- -- Class E................................................. -- -- Class H................................................. -- -- Class I................................................. -- -- Class L................................................. -- -- Class M................................................. -- -- Class N................................................. -- -- Class Y................................................. -- -- Class Z................................................. -- -- -------- -------- Total distributions..................................... (9,827) (10,691) -------- -------- CAPITAL SHARE TRANSACTIONS: Class A................................................. (973) (4,366) Class B................................................. (4,058) (4,109) Class C................................................. 152 (3,870) Class E................................................. (14,860) (10,531) Class H................................................. (773) (1,078) Class I................................................. -- -- Class L................................................. (3,824) (2,425) Class M................................................. (630) (830) Class N................................................. (149) (179) Class Y................................................. (9,130) 9,491 Class Z................................................. -- -- -------- -------- Net increase (decrease) from capital share transactions... (34,245) (17,897) -------- -------- Net increase (decrease) in net assets..................... (36,409) (26,773) NET ASSETS: Beginning of period....................................... 233,976 260,749 -------- -------- End of period............................................. $197,567 $233,976 ======== ======== Accumulated undistributed (distribution in excess of) net investment income......................................... $ 11 $ 90 ======== ========
* Relates to investments in affiliated investment companies. ** Commencement of operations. The accompanying notes are an integral part of these financial statements. 294 --------------------------------------------------------------------------------
VALUE FUND VALUE OPPORTUNITIES FUND ----------------------------------------- ----------------------------------------- FOR THE YEAR FOR THE YEAR FOR THE YEAR FOR THE YEAR ENDED ENDED ENDED ENDED OCTOBER 31, 2006 OCTOBER 31, 2005 OCTOBER 31, 2006 OCTOBER 31, 2005 ---------------- ---------------- ---------------- ---------------- $ 1,430 $ 1,031 $ 1,459 $ 419 17,037 3,426 20,728 11,628 10,073 8,587 28,126 (2,335) -------- -------- -------- -------- 28,540 13,044 50,313 9,712 -------- -------- -------- -------- (474) (209) -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- (39) -- -- -- -- -- -- -- -- -- (780) (328) (358) -- -- -- -- -- -- -- (2,133) -- -- -- (467) -- -- -- (454) -- -- -- -- -- -- -- (158) -- -- -- -- -- -- -- (881) -- -- -- (254) -- -- -- (68) -- -- -- (3,035) -- -- -- -- -- -------- -------- -------- -------- (1,254) (537) (7,847) -- -------- -------- -------- -------- 3,341 209 30,823 39,283 (75) 179 2,299 7,330 695 (1,706) 6,635 7,207 -- -- -- -- -- -- (1,657) (1,751) -- -- 11 -- -- -- 367 (783) -- -- (1,570) (1,496) -- -- (234) (356) 1,219 34,771 (9,374) 83,958 -- -- -- -- -------- -------- -------- -------- 5,180 33,453 27,300 133,392 -------- -------- -------- -------- 32,466 45,960 69,766 143,104 143,964 98,004 230,926 87,822 -------- -------- -------- -------- $176,430 $143,964 $300,692 $230,926 ======== ======== ======== ======== $ 1,021 $ 859 $ 1,431 $ 397 ======== ======== ======== ========
295 THE HARTFORD MUTUAL FUNDS, INC. STATEMENT OF CASH FLOWS YEAR ENDED OCTOBER 31, 2006 (000'S OMITTED) --------------------------------------------------------------------------------
TOTAL RETURN BOND FUND ---------------------- CASH FLOWS FROM OPERATING ACTIVITIES: Net increase in net assets from operations................ $ 34,508 Adjustments to reconcile the net increase in net assets from operations to net cash used in operating activities: Purchase of investment securities...................... (4,273,975) Proceeds from disposition of investment securities..... 4,115,046 Purchases of short-term investment securities, net..... (61,328) Decrease in collateral for securities loaned........... 20,024 Increase in receivable for investment securities sold.................................................. (19,875) Increase in dividend and interest receivable........... (1,950) Increase in variation margin receivable................ (137) Increase in other assets............................... (13) Increase in unrealized depreciation on forward foreign currency contracts.................................... 31 Decrease in payable upon return of securities loaned... (20,024) Increase in payable for investment securities purchased............................................. 25,599 Increase in advisory and management fees payable....... 20 Increase in distribution fees payable.................. 5 Increase in variation margin payable................... 142 Increase in accrued expenses........................... 20 Unrealized appreciation on securities and currencies... (12,744) Net realized gain from investments and currencies...... 7,921 ----------- Net cash used in operating activities..................... (221,238) ----------- CASH FLOWS FROM FINANCING ACTIVITIES: Proceeds from shares sold................................. 326,044 Cash dividends paid....................................... (1,492) Payments on shares repurchased............................ (141,050) ----------- Net cash provided by financing activities................. 183,502 ----------- NET DECREASE IN CASH........................................ (3,228) Cash at beginning of the year............................... 3,716 ----------- CASH AT END OF THE YEAR..................................... $ 488 ===========
The accompanying notes are an integral part of these financial statements. 296 THE HARTFORD MUTUAL FUNDS, INC. AND THE HARTFORD MUTUAL FUNDS II, INC. NOTES TO FINANCIAL STATEMENTS OCTOBER 31, 2006 (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 fifty-one portfolios (each a "Fund" or together the "Funds"). They are The Hartford Advisers Fund (Advisers Fund), The Hartford Aggressive Growth Allocation Fund (Aggressive Growth Allocation Fund), The Hartford Balanced Allocation Fund (Balanced Allocation Fund), The Hartford Balanced Income Fund (Balance Income Fund), The Hartford Capital Appreciation Fund (Capital Appreciation Fund), The Hartford Capital Appreciation II Fund (Capital Appreciation II Fund), The Hartford Conservative Allocation Fund (Conservative Allocation Fund), The Hartford Disciplined Equity Fund (Disciplined Equity Fund), The Hartford Dividend and Growth Fund (Dividend and Growth Fund), The Hartford Equity Income Fund (Equity Income Fund), The Hartford Floating Rate Fund (Floating Rate Fund), The Hartford Focus Fund (Focus Fund), The Hartford Global Communications Fund (Global Communications Fund), The Hartford Global Financial Services Fund (Global Financial Services Fund), The Hartford Global Health Fund (Global Health Fund), The Hartford Global Leaders Fund (Global Leaders Fund), The Hartford Global Technology Fund (Global Technology Fund), The Hartford Growth Allocation Fund (Growth Allocation Fund), The Hartford Growth Fund (Growth Fund), The Hartford Growth Opportunities Fund (Growth Opportunities Fund), The Hartford High Yield Fund (High Yield Fund), The Hartford Income Allocation Fund (Income Allocation Fund), The Hartford Income Fund (Income Fund), The Hartford Inflation Plus Fund (Inflation Plus Fund), The Hartford International Capital Appreciation Fund (International Capital Appreciation Fund), The Hartford International Opportunities Fund (International Opportunities Fund), The Hartford International Small Company Fund (International Small Company Fund), The Hartford MidCap Fund (MidCap Fund), The Hartford MidCap Growth Fund (MidCap Growth Fund), The Hartford MidCap Value Fund (MidCap Value Fund), The Hartford Money Market Fund (Money Market Fund), The Hartford Retirement Income Fund (Retirement Income Fund), The Hartford Select MidCap Growth Fund (Select MidCap Growth Fund), The Hartford Select MidCap Value Fund (Select MidCap Value Fund), The Hartford Select SmallCap Growth Fund (Select SmallCap Growth Fund), The Hartford Select SmallCap Value Fund (SmallCap Value Fund), The Hartford Short Duration Fund (Short Duration Fund), The Hartford Small Company Fund (Small Company Fund), The Hartford SmallCap Growth Fund (SmallCap Growth Fund), The Hartford Stock Fund (Stock Fund), The Hartford Target Retirement 2010 Fund (Target Retirement 2010 Fund), The Hartford Target Retirement 2020 Fund (Target Retirement 2020 Fund), The Hartford Target Retirement 2030 Fund (Target Retirement 2030 Fund), The Hartford Tax-Free California Fund (Tax-Free California Fund), The Hartford Tax-Free Minnesota Fund (Tax-Free Minnesota Fund), The Hartford Tax-Free National Fund (Tax-Free National Fund), The Hartford Tax-Free New York Fund (Tax-Free New York Fund), The Hartford Total Return Bond Fund (Total Return Bond Fund), The Hartford U.S. Government Securities Fund (U.S. Government Securities Fund), The Hartford Value Fund (Value Fund) and The Hartford Value Opportunities Fund (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 Floating Rate Fund, Focus Fund, Global Communications Fund, Global Financial Services Fund, Global Health Fund, Global Technology Fund, Inflation Plus Fund, Tax-Free California Fund and Tax-Free New York Fund, which are non-diversified. Class A shares are sold with a front-end sales charge of up to 5.50%, except for High Yield Fund, Income Allocation Fund, Income Fund, Inflation Plus Fund, Tax-Free California Fund, Tax-Free Minnesota Fund, Tax-Free National Fund, Tax-Free New York Fund, Total Return Bond Fund and U.S. Government Securities Fund, which have a maximum front-end sales charge of up to 4.50%. Floating Rate Fund and Short Duration Fund have a maximum front-end sales charge of up to 3.00%. Money Market Fund shares are sold without a front-end load. 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 contingent deferred sales charge of up to 1.00%. Class E shares are sold with a front-end sales charge of 4.50%. Class I shares commenced operations on August 31, 2006 and are sold without sales charges to certain eligible investors through advisory fee-based wrap programs. Classes H and M 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 4.00% to zero depending on the period of time the shares are held. Class L shares are sold with a sales charge of up to 4.75%. Class N shares are sold with a contingent deferred sales charge of 1.00% if redeemed within one year. Class Y shares are sold to certain eligible institutional investors without a sales charge. Class Z shares are 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 M shares will automatically convert to Class L shares after 8 years. Each of the following Funds ("Allocation Funds"): Aggressive Growth Allocation Fund, Balanced Allocation Fund, Conservative Allocation Fund, Growth Allocation Fund and Income Allocation Fund and ("Target Retirement Funds"): Retirement Income Fund, Target Retirement 2010 Fund, Target Retirement 2020 Fund and Target Retirement 2030 Fund is a "Fund of Funds", which invests the majority of its assets in Class Y shares of other Hartford mutual funds: domestic and international equity funds and fixed income funds (Underlying Funds). The Allocation Funds seek their investment goals through implementation of a strategic asset allocation recommendation provided by Hartford Investment Financial Services, LLC (HIFSCO), a wholly-owned indirect subsidiary of The Hartford Financial Services Group, Inc. (The Hartford). The Target Retirement Funds seek their investment goals through implementation of a strategic asset allocation recommendation provided by Hartford Investment Management Company (Hartford Investment Management). Ibbotson Associates, Inc. ("Ibbotson") serves as a consultant to HIFSCO and Hartford Investment Management with respect to selecting the Underlying Funds and the Funds' asset allocations among the Underlying Funds. Effective November 13, 2006, Ibbotson's contracts as a consultant to HIFSCO and Hartford Investment Management was terminated. Each Underlying Fund's accounting policies are outlined below. Indemnifications: Under the Funds' organizational documents, their directors and officers are indemnified against certain liabilities arising out of the performance of their duties to the Funds. In addition, the Funds' enter into contracts that contain a variety of indemnifications. The Funds' maximum exposure under these arrangements is unknown. However, the Funds have not had prior claims or losses pursuant to these contracts and expect the risk of loss to be remote. 297 THE HARTFORD MUTUAL FUNDS, INC. AND THE HARTFORD MUTUAL FUNDS II, INC. NOTES TO FINANCIAL STATEMENTS -- (CONTINUED) OCTOBER 31, 2006 (000'S OMITTED) -------------------------------------------------------------------------------- 2. SIGNIFICANT ACCOUNTING POLICIES: The following is a summary of significant accounting policies of the Funds, which are in accordance with U. S. 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. Trade date for senior floating rate interests purchased in the primary market is considered the date on which the loan allocations are determined. Trade date for senior floating rate loan interests purchased in the secondary market is the date on which the transaction is entered into. b) Security Valuation and Investment Income -- Except for the Money Market Fund, the Funds (references to "Funds" in this section relate, if applicable, to certain Underlying Funds in the case of a Fund of Funds) generally use market prices in valuing portfolio securities. If market quotations are not readily available or are deemed unreliable, a Fund will use the fair value of the security as determined in good faith under policies and procedures established by and under the supervision of that Fund's Board of Directors. Market prices may be deemed unreliable, for example, if a security is thinly traded or if an event has occurred after the close of the exchange on which a portfolio security is principally traded but before the close of the New York Stock Exchange (the "Exchange") (normally 4:00 p.m. Eastern Time, referred to as the "Valuation Time") that is expected to affect the value of the portfolio security. The circumstances in which a Fund may use fair value pricing include, among others: (i) the occurrence of events that are significant to a particular issuer, such as mergers, restructuring or defaults; (ii) the occurrence of events that are significant to an entire market, such as natural disasters in a particular region or governmental actions; (iii) trading restrictions on securities; (iv) thinly traded securities and (v) market events such as trading halts and early market closings. In addition, with respect to the valuation of securities principally traded on foreign markets, each Fund uses a fair value pricing service approved by that Fund's Board of Directors which employs quantitative models to adjust for "stale" prices caused by the movement of other markets and other factors occurring after the close of the foreign markets but before the close of the Exchange. Securities that are principally traded on foreign markets may trade on days that are not business days of the Funds. Because the NAV of each Fund's shares is determined only on business days of the Funds, the value of the portfolio securities of a Fund that invests in foreign securities may change on days when a shareholder will not be able to purchase or redeem shares of the Fund. Fair value pricing is subjective in nature and the use of fair value pricing by the Funds may cause the net asset value of their respective shares to differ significantly from the net asset value that would have been calculated using market prices at the close of the exchange on which a portfolio security is principally traded but before the close of the Exchange. There can be no assurance that any Fund could obtain the fair value assigned to a security if the Fund were to sell the security at approximately the time at which that Fund determines its NAV per share. Debt securities (other than short-term obligations and Floating Rate Loans), held by the Fund 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. Floating Rate Loans generally trade in over-the-counter markets and are priced through an unaffiliated pricing service utilizing independent market quotations from loan dealers or financial institutions. 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 securities or from a widely-used quotation system in accordance with procedures established by that Fund's Board of Directors. Generally, each Fund may use fair valuation in regards to debt securities when a Fund holds defaulted or distressed securities or securities in a company in which reorganization is pending. Short term investments with a maturity of more than 60 days when purchased are valued based on market quotations until the remaining days to maturity become less than 61 days. The Money Market Fund's investments and investments that mature in 60 days or less are valued at amortized cost, which approximates market value. Exchange traded equity securities shall be valued at the last reported sale price on the exchange or market on which the security is primarily traded (the "Primary Market") at the Valuation Time. If the security did not trade on the Primary Market, it may be valued at the Valuation Time at the last reported sale price on another exchange where it trades. The value of an equity security not traded on any exchange but traded on the Nasdaq Stock Market, Inc. System ("Nasdaq") or another over-the-counter ("OTC") market shall be valued at the last reported sale price or official closing price on the exchange or market on which the security is traded as of the Valuation Time. If it is not possible to determine the last reported sale price or official closing price on the relevant exchange or market at the Valuation Time, the value of the security shall be the most recent bid quotation on such exchange or market at the Valuation Time. Securities of foreign issuers and non-dollar securities are translated from the local currency into U.S. dollars using prevailing exchange rates. Options contracts on securities, currencies, indexes, futures contracts, commodities and other instruments shall be valued at their most recent sales price at the Valuation Time on the Primary Market on which the instrument is traded. If the instrument did not trade on the Primary Market, it may be valued at the most recent sales price at the Valuation Time on another exchange or market where it did trade. Futures contracts shall be valued at the final settlement price reported by an exchange on which they are principally traded. If there were no trades as of the valuation day, then the contract shall be valued at the closing bid price as of the Valuation Time. Financial instruments 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 securities or from a widely-used quotation system in accordance with procedures established by that Fund's Board of Directors. A forward currency contract shall be valued based on the price of the underlying currency at the prevailing interpolated exchange rate, which is a combination of the spot currency rate and the forward currency rate. Spot currency rates and forward currency rates are obtained from an independent pricing service on a daily basis not more than one hour before the Valuation Time. In the event that the applicable pricing service 298 -------------------------------------------------------------------------------- cannot provide the spot currency rates and forward currency rates in a timely fashion, such rates may be obtained from a widely-used quotation system in accordance with procedures established by that Fund's Board of Directors. Swaps and other derivative or contractual type instruments shall be valued using market prices if such instruments trade on an exchange or market. If such instruments do not trade on an exchange or market, such instruments shall be valued at a price at which the counterparty to such contract would repurchase the instrument. In the event that the counterparty cannot provide a price, such valuation may be determined in accordance with procedures established by that Fund's Board of Directors. Investments in open-end mutual funds are valued at the respective net asset value of each Underlying Fund. 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 is accrued on a daily basis. Amortization of bond or senior bank loan premium and discount, is recorded on the accrual basis. Income and capital gain distributions from Underlying Funds are recorded on the ex-dividend date. 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 within 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 or U.S. government securities with a market value at least equal to the market value of the securities on loan. The adequacy of collateral for securities on loan is monitored on a daily basis. For instances where the market value of collateral falls below the market value of securities on loan, such collateral is supplemented on the following day. As with other extensions of credit, these Funds may bear the risk of delay in recovery of loaned securities or even loss of rights in the collateral should the borrower of the securities fail financially. e) Joint Trading Account -- Pursuant to an exemptive order issued by the SEC, the Funds may transfer uninvested cash balances into a joint trading account managed by Hartford Investment Management 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 Funds or in a third party custodial account. 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 joint repurchase agreements in the amount of $2,099,972 dated 10/31/06 with the brokers indicated in the table below due 11/1/06. These joint repurchase agreements are collateralized as follows:
COLLATERAL COLLATERAL COLLATERAL COLLATERAL BROKER RATE PRINCIPAL VALUE SECURITY TYPE COUPON RATE MATURITY ------ ----- --------- ---------- ------------------ -------------- ----------- Bank of America Securities............. 5.31% $425,000 $433,500 FNMA 5.00% 2036 Credit Suisse First Boston................. 5.32% 250,000 255,004 FNMA 4.00% - 10.50% 2008 - 2036 Deutsche Bank Securities............. 5.25% 9,972 10,173 U.S. Treasury Bill 3.375% 2007 Deutsche Bank Securities............. 5.30% 420,000 429,000 FHLMC 4.50% - 6.50% 2020 - 2036 GNMA 5.50% 2035 Deutsche Bank Securities............. 5.32% 200,000 203,400 FHLMC 4.50% - 6.50% 2020 - 2036 GNMA 5.50% 2035 Morgan Stanley & Co., Inc. .................. 5.29% 230,000 235,489 FNMA 4.50% - 6.00% 2020 - 2036 UBS Securities, LLC...... 5.31% 565,000 576,304 FHLMC 3.50% - 9.00% 2010 - 2035 FNMA 5.00% - 8.00% 2008 - 2036
299 THE HARTFORD MUTUAL FUNDS, INC. AND THE HARTFORD MUTUAL FUNDS II, INC. NOTES TO FINANCIAL STATEMENTS -- (CONTINUED) OCTOBER 31, 2006 (000'S OMITTED) -------------------------------------------------------------------------------- The amount to be received upon maturity of each Fund's repurchase agreement is as follows:
MATURITY FUND AMOUNT ---- -------- Advisers Fund............................................... $ 19,811 Balanced Income Fund........................................ 698 Capital Appreciation Fund................................... 920,333 Capital Appreciation II Fund................................ 18,214 Disciplined Equity Fund..................................... 2,386 Dividend and Growth Fund.................................... 95,052 Equity Income Fund.......................................... 11,444 Focus Fund.................................................. 438 Global Communications Fund.................................. 702 Global Financial Services Fund.............................. 1,557 Global Health Fund.......................................... 16,956 Global Leaders Fund......................................... 13,066 Global Technology Fund...................................... 768 Growth Fund................................................. 12,505 Growth Opportunities Fund................................... 34,313 International Capital Appreciation Fund..................... 11,674 International Opportunities Fund............................ 8,824 International Small Company Fund............................ 2,718 MidCap Fund................................................. 137,646 MidCap Value Fund........................................... 5,891 Small Company Fund.......................................... 4,577 Stock Fund.................................................. 7,575 Value Fund.................................................. 4,365 Value Opportunities Fund.................................... 4,045
Certain Funds, together with other investment management companies having investment advisory agreements with Hartford Investment Management, have an interest in joint repurchase agreements in the amount of $605,070 dated 10/31/06 with the brokers indicated on the table below due 11/1/06. These joint repurchase agreements are collateralized as follows:
COLLATERAL COLLATERAL COLLATERAL COLLATERAL BROKER RATE PRINCIPAL VALUE SECURITY TYPE COUPON RATE MATURITY ------ ----- --------- ---------- ------------------- --------------- ----------- BNP Paribas Securities Corp. ...................... 5.24% $200,000 $205,452 U.S. Treasury Bonds 7.25% - 8.75% 2020 - 2022 RBS Greenwich Capital Markets..................... 5.24% 205,070 209,678 U.S. Treasury Note 4.875% 2009 UBS Securities, Inc. ......... 5.24% 200,000 204,997 U.S. Treasury Bonds 6.875% - 8.125% 2021 - 2025
The amount to be received upon maturity of each Fund's repurchase agreement is as follows:
MATURITY FUND AMOUNT ---- -------- Income Fund................................................. $ 2,596 Inflation Plus Fund......................................... 6,604 MidCap Growth Fund.......................................... 313 Small Company Fund.......................................... 5,844 Total Return Bond Fund...................................... 113,244 U.S. Government Securities Fund............................. 2,453
The SmallCap Growth Fund has an interest in a repurchase agreement in the amount of $19,495, dated 10/31/06 with Deutsche Bank., 5.25% due 11/1/06. This repurchase agreement is collateralized by $19,884 in a U.S. Treasury Note, 3.75% due 2007. In addition, Capital Appreciation Fund had collateral for securities on loan in a repurchase agreement. The Capital Appreciation Fund lending agreement is collateralized by an interest in repurchase agreements in the amount of $37,661 dated 10/31/06 with Lehman Brothers, Inc., 5.24% due 11/1/06. This repurchase agreement is collateralized by $37,252 in Federal Farm Credit Bank, 5.00% due 2010 and by $1,166 in Federal Home Loan Bank 5.76% due 2025. g) Futures and Options Transactions -- Certain Funds may invest in futures 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 futures contracts, they are required to deposit with a futures commission merchant 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. 300 -------------------------------------------------------------------------------- At any time prior to expiration of the futures contract, a Fund may close the position by taking an opposite position, which would effectively 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 Fund and the Fund realizes a gain or loss. The use of futures contracts involves elements of market risk, which may exceed the amounts recognized in the Statements of Assets and Liabilities. Changes in the value of the futures contracts may decrease the effectiveness of a Fund's strategies and potentially result in loss. Certain Funds, as shown in the Schedule of Investments, had outstanding futures contracts as of October 31, 2006. The premium paid by a Fund for the purchase of a call or put option is included in the Funds' Statements 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. 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 or greater than the fluctuating market value of the option securities or currencies. A Fund receives a premium for writing a call or put option, which is recorded on the Funds' Statements of Assets and Liabilities . There is a risk of loss from a change in value of such options, which may exceed the related premiums received. Transactions involving written option contracts for the Funds during the year ended October 31, 2006, are summarized below:
HARTFORD CAPITAL APPRECIATION FUND OPTIONS CONTRACTS ACTIVITY DURING THE YEAR ENDED OCTOBER 31, 2006 ------------------------------------- CALL OPTIONS WRITTEN DURING THE PERIOD NUMBER OF CONTRACTS PREMIUM AMOUNTS -------------------------------------- ------------------- --------------- Beginning of the period..................................... -- $ -- Written..................................................... 34 6,205 Expired..................................................... -- -- Closed...................................................... (34) (6,205) Exercised................................................... -- -- ---- ------- End of the period........................................... -- $ -- ---- -------
HARTFORD DISCIPLINED EQUITY FUND OPTIONS CONTRACTS ACTIVITY DURING THE YEAR ENDED OCTOBER 31, 2006 -------------------------------------- CALL OPTIONS WRITTEN DURING THE PERIOD NUMBER OF CONTRACTS PREMIUM AMOUNTS -------------------------------------- ------------------- --------------- Beginning of the period..................................... -- $ -- Written..................................................... 3 231 Expired..................................................... (1) (29) Closed...................................................... (1) (131) Exercised................................................... --* (18) ---- ----- End of the period........................................... 1 $ 53 ---- -----
HARTFORD HIGH YIELD FUND OPTIONS CONTRACTS ACTIVITY DURING THE YEAR ENDED OCTOBER 31, 2006 -------------------------------------- CALL OPTIONS WRITTEN DURING THE PERIOD NUMBER OF CONTRACTS PREMIUM AMOUNTS -------------------------------------- ------------------- --------------- Beginning of the period..................................... -- $ -- Written..................................................... --* 18 Expired..................................................... -- -- Closed...................................................... --* (18) Exercised................................................... -- -- ---- ---- End of the period........................................... -- $ -- ---- ----
301 THE HARTFORD MUTUAL FUNDS, INC. AND THE HARTFORD MUTUAL FUNDS II, INC. NOTES TO FINANCIAL STATEMENTS -- (CONTINUED) OCTOBER 31, 2006 (000'S OMITTED) --------------------------------------------------------------------------------
HARTFORD INFLATION PLUS FUND OPTIONS CONTRACTS ACTIVITY DURING THE YEAR ENDED OCTOBER 31, 2006 -------------------------------------- CALL OPTIONS WRITTEN DURING THE PERIOD NUMBER OF CONTRACTS PREMIUM AMOUNTS -------------------------------------- ------------------- --------------- Beginning of the period..................................... -- $ -- Written..................................................... --* 21 Expired..................................................... -- -- Closed...................................................... --* (21) Exercised................................................... -- -- ---- ---- End of the period........................................... -- $ -- ---- ----
HARTFORD TOTAL RETURN BOND FUND OPTIONS CONTRACTS ACTIVITY DURING THE YEAR ENDED OCTOBER 31, 2006 -------------------------------------- CALL OPTIONS WRITTEN DURING THE PERIOD NUMBER OF CONTRACTS PREMIUM AMOUNTS -------------------------------------- ------------------- --------------- Beginning of the period..................................... -- $-- Written..................................................... --* 43 Expired..................................................... -- -- Closed...................................................... --* (43) Exercised................................................... -- -- ---- --- End of the period........................................... -- $-- ---- ---
* Due to the presentation of the financial statements in thousands, the number of contracts round to zero. h) Forward Foreign Currency Contracts -- For the year ended October 31, 2006, certain Funds, as shown in the Schedule of Investments, had 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 foreign currency 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 securities to increase or decrease their exposure to different underlying instruments and to gain exposure to markets that might be difficult to invest in using 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 may be a limit to the potential appreciation of the investment. Certain Funds had investments in indexed securities, as of October 31, 2006, as shown in the Schedule of Investments under Exchange Traded Funds. j) (1) 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 (IRC) by distributing substantially all of their taxable net investment income and net realized capital gains to their shareholders and 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. The Funds have distributed substantially all of their income and gains in prior years and each Fund intends to distribute substantially all of its income and gains during the calendar year ending December 31, 2006. Accordingly, no provision for federal income taxes has been made in the accompanying financial statements. Distributions from short-term capital gains are treated as ordinary income distributions for federal income or excise tax purposes. j) (2) The tax character of distributions paid for the periods indicated is as follows (as adjusted for dividends payable):
FOR THE YEAR ENDED FOR THE YEAR ENDED OCTOBER 31, 2006 OCTOBER 31, 2005 --------------------------------------------------- ------------------------------------- TAX EXEMPT ORDINARY LONG-TERM TAX RETURN TAX EXEMPT ORDINARY LONG-TERM INCOME(Y) INCOME CAPITAL GAINS& OF CAPITAL INCOME INCOME CAPITAL GAINS ---------- -------- -------------- ---------- ---------- -------- ------------- Advisers Fund............... $ -- $28,170 $ -- $ -- $ -- $37,568 $ -- Aggressive Growth Allocation Fund...................... -- 91 552 -- -- 39 -- Balanced Allocation Fund.... -- 9,607 300 -- -- 2,330 -- Balanced Income Fund#....... -- 60 -- -- -- -- -- Capital Appreciation Fund... -- 60,755 884,027 -- -- -- -- Capital Appreciation II Fund...................... -- 1,192 -- -- -- -- -- Conservative Allocation Fund...................... -- 3,915 685 -- -- 1,501 -- Disciplined Equity Fund..... -- 878 -- -- -- 2,192 -- Dividend and Growth Fund.... -- 52,205 98,292 -- -- 31,677 26,222
302 --------------------------------------------------------------------------------
FOR THE YEAR ENDED FOR THE YEAR ENDED OCTOBER 31, 2006 OCTOBER 31, 2005 --------------------------------------------------- ------------------------------------- TAX EXEMPT ORDINARY LONG-TERM TAX RETURN TAX EXEMPT ORDINARY LONG-TERM INCOME(Y) INCOME CAPITAL GAINS& OF CAPITAL INCOME INCOME CAPITAL GAINS ---------- -------- -------------- ---------- ---------- -------- ------------- Equity Income Fund.......... $ -- $12,225 $ -- $ -- $ -- $ 8,509 $ -- Floating Rate Fund*......... -- 77,852 -- -- -- 2,825 -- Focus Fund.................. -- 321 -- -- -- 34 -- Global Communications Fund...................... -- 333 -- -- -- 106 -- Global Financial Services Fund...................... -- 167 -- -- -- 198 -- Global Health Fund.......... -- 14,523 17,300 -- -- -- 15,627 Global Leaders Fund......... -- 919 7,457 -- -- -- -- Global Technology Fund...... -- -- -- -- -- -- -- Growth Allocation Fund...... -- 2,935 776 -- -- 306 -- Growth Fund................. -- -- -- -- -- -- -- Growth Opportunities Fund... -- -- 69,508 -- -- -- -- High Yield Fund............. -- 20,130 -- -- -- 21,926 -- Income Allocation Fund...... -- 1,498 -- -- -- 882 -- Income Fund................. -- 3,796 -- -- -- 2,379 160 Inflation Plus Fund......... -- 33,608 3,229 -- -- 34,177 4,354 International Capital Appreciation Fund......... -- 2,096 1,965 -- -- -- -- International Opportunities Fund...................... -- 509 -- -- -- -- -- International Small Company Fund...................... -- 10,298 5,091 -- -- 8,255 733 MidCap Fund................. -- 63,745 411,745 -- -- -- 55,053 MidCap Growth Fund#......... -- -- -- -- -- -- -- MidCap Value Fund........... -- 13,883 30,157 -- -- 10,451 20,593 Money Market Fund........... -- 9,518 -- -- -- 4,593 -- Retirement Income Fund@..... -- 18 -- -- -- -- -- Select MidCap Growth Fund+..................... -- 192 -- -- -- -- -- Select MidCap Value Fund.... -- 649 -- -- -- -- -- Select SmallCap Growth Fund...................... -- -- -- -- -- -- -- Select SmallCap Value Fund#..................... -- -- -- -- -- -- -- Short Duration Fund......... -- 4,804 -- -- -- 4,345 -- Small Company Fund.......... -- -- -- -- -- -- -- SmallCap Growth Fund........ -- -- -- -- -- -- -- Stock Fund.................. -- 2,297 -- -- -- 6,624 -- Target Retirement 2010 Fund...................... -- 21 -- 3 -- -- -- Target Retirement 2020 Fund...................... -- 17 -- -- -- -- -- Target Retirement 2030 Fund...................... -- 3 -- 4 -- -- -- Tax-Free California Fund.... 800 -- 12 -- 633 -- -- Tax-Free Minnesota Fund..... 1,373 57 -- -- 1,381 -- 85 Tax-Free National Fund...... 4,528 698 -- -- 3,716 -- 79 Tax-Free New York Fund...... 555 6 26 -- 486 -- 22 Total Return Bond Fund...... -- 32,844 1,319 -- -- 23,616 954 U.S. Government Securities Fund...................... -- 9,827 -- -- -- 10,868 -- Value Fund.................. -- 1,254 -- -- -- 537 -- Value Opportunity Fund...... -- 2,423 5,424 -- -- -- --
+ For the period January 1, 2005 (commencement of operations) through October 31, 2005. * For the period April 29, 2005 (commencement of operations) through October 31, 2005. @ For the period September 30, 2005 (commencement of operations) through October 31, 2005. # For the period July 31, 2005 (commencement of operations) through October 31, 2006. & The Funds designate these distributions as long-term capital gain dividends per IRC code Sec. 852(b)(3)(C). Y The Funds designate these distributions as exempt interest dividends per IRC Sec. 852(b)(5). As of October 31, 2006, the components of distributable earnings (deficit) on a tax basis are as follows:
ACCUMULATED TOTAL UNDISTRIBUTED UNDISTRIBUTED CAPITAL UNREALIZED ACCUMULATED ORDINARY LONG-TERM GAINS APPRECIATION EARNINGS INCOME CAPITAL GAIN (LOSSES)* (DEPRECIATION)@ (DEFICIT) ------------- ------------- ----------- --------------- ----------- Advisers Fund............... $ 3,014 $ 9,545 $ -- $ 64,866 $ 77,425 Aggressive Growth Allocation Fund...................... -- 4,107 -- 22,058 26,165 Balanced Allocation Fund.... 1,354 16,039 -- 50,973 68,366 Balanced Income Fund........ 42 -- (19) 433 456
303 THE HARTFORD MUTUAL FUNDS, INC. AND THE HARTFORD MUTUAL FUNDS II, INC. NOTES TO FINANCIAL STATEMENTS -- (CONTINUED) OCTOBER 31, 2006 (000'S OMITTED) --------------------------------------------------------------------------------
ACCUMULATED TOTAL UNDISTRIBUTED UNDISTRIBUTED CAPITAL UNREALIZED ACCUMULATED ORDINARY LONG-TERM GAINS APPRECIATION EARNINGS INCOME CAPITAL GAIN (LOSSES)* (DEPRECIATION)@ (DEFICIT) ------------- ------------- ----------- --------------- ----------- Capital Appreciation Fund... $455,043 $740,551 $ -- $2,057,923 $3,253,517 Capital Appreciation II Fund...................... 7,431 1,619 -- 22,502 31,552 Conservative Allocation Fund...................... 633 3,535 -- 5,872 10,040 Disciplined Equity Fund..... 1,454 -- (60,695) 54,401 (4,840) Dividend and Growth Fund.... 15,041 201,659 -- 618,951 835,651 Equity Income Fund.......... 1,642 25,507 -- 84,331 111,480 Floating Rate Fund.......... 2,092 -- (1,227) (4,286) (3,421) Focus Fund.................. -- -- (1,063) 484 (579) Global Communications Fund...................... 368 81 -- 1,741 2,190 Global Financial Services Fund...................... 180 1,748 -- 5,261 7,189 Global Health Fund.......... 6,779 21,946 -- 99,419 128,144 Global Leaders Fund......... 15,315 22,226 -- 100,848 138,389 Global Technology Fund...... -- -- (51,195) 6,756 (44,439) Growth Allocation Fund...... -- 14,424 -- 58,976 73,400 Growth Fund................. -- 86,481 -- 84,969 171,450 Growth Opportunities Fund... 26,275 63,092 -- 143,030 232,397 High Yield Fund(Y).......... 88 -- (81,637) 2,886 (78,663) Income Allocation Fund...... 5 -- (38) (590) (623) Income Fund................. 10 -- (573) 616 53 Inflation Plus Fund......... 4,022 -- (8,467) (20,288) (24,733) International Capital Appreciation Fund......... 20,540 10,238 -- 46,107 76,885 International Opportunities Fund(Y)................... 1,672 7,575 (2,430) 28,271 35,088 International Small Company Fund...................... 16,470 9,615 -- 15,397 41,482 MidCap Fund................. 42,382 438,996 -- 361,743 843,121 MidCap Growth Fund.......... 116 -- -- 539 655 MidCap Value Fund........... 14,003 44,859 -- 71,291 130,153 Money Market Fund........... -- -- -- -- -- Retirement Income Fund...... -- -- -- 14 14 Select MidCap Growth Fund... 1,264 682 -- 1,154 3,100 Select MidCap Value Fund.... 2,386 539 -- 5,904 8,829 Select SmallCap Growth Fund...................... -- -- (219) 928 709 Select SmallCap Value Fund...................... 164 12 -- 1,311 1,487 Short Duration Fund......... 1 -- (2,224) (664) (2,887) Small Company Fund.......... -- 34,677 -- 34,260 68,937 SmallCap Growth Fund........ -- -- (168) 29,053 28,885 Stock Fund.................. 4,120 -- (303,982) 54,017 (245,845) Target Retirement 2010 Fund...................... 0 -- -- 45 45 Target Retirement 2020 Fund...................... 3 3 -- 82 88 Target Retirement 2030 Fund...................... 0 -- -- 82 82 Tax-Free California Fund.... 2 -- (5) 954 951 Tax-Free Minnesota Fund..... 34 173 -- 1,578 1,785 Tax-Free National Fund...... 3 372 -- 6,313 6,688 Tax-Free New York Fund...... 2 85 -- 596 683 Total Return Bond Fund...... 574 -- (9,223) 2,899 (5,750) U.S. Government Securities Fund...................... 11 -- (18,780) 1,804 (16,965) Value Fund.................. 1,379 15,190 -- 25,598 42,167 Value Opportunities Fund.... 6,712 15,916 -- 35,381 58,009
* Certain Funds had capital loss carryforwards that are identified in Note 2(j)(4). @ The differences between book-basis and tax-basis unrealized appreciation (depreciation) are attributable primarily to the tax deferral of wash sale losses, the mark-to-market adjustment for certain derivatives in accordance with IRC Sec. 1256, the mark to market for Passive Foreign Investment Companies and basis differences in real estate investment trusts. Y Capital loss carryover is subject to IRC Sec. 382 limitations. j) (3) 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 loss 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, expiration of capital loss carryforwards, distributions upon redemptions and net operating losses that reduce capital gain distribution requirements. Adjustments are made to reflect the impact these items have on current and future 304 -------------------------------------------------------------------------------- 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, 2006, 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............................................... $ 187 $ (280) $ 93 Aggressive Growth Allocation Fund........................... 1,539 (1,539) -- Balanced Allocation Fund.................................... 1,564 (1,564) -- Balanced Income Fund........................................ 9 -- (9) Capital Appreciation Fund................................... (3,043) 3,386 (343) Capital Appreciation II Fund................................ 583 (586) 3 Conservative Allocation Fund................................ 458 (458) -- Disciplined Equity Fund..................................... (37) 21 16 Dividend and Growth Fund.................................... (194) 194 -- Equity Income Fund.......................................... (39) 39 -- Floating Rate Fund.......................................... 1,328 (1,328) -- Focus Fund.................................................. 110 18 (128) Global Communications Fund.................................. (21) 21 -- Global Financial Services Fund.............................. 1 (1) -- Global Health Fund.......................................... 3,491 (3,492) 1 Global Leaders Fund......................................... 519 (519) -- Global Technology Fund...................................... 632 19 (651) Growth Allocation Fund...................................... 2,317 (2,317) -- Growth Fund................................................. 4,664 243 (4,907) Growth Opportunities Fund................................... 3,351 (3,351) -- High Yield Fund............................................. (61) 61 -- Income Allocation Fund...................................... 33 (33) -- Income Fund................................................. (31) 31 -- Inflation Plus Fund......................................... (244) 244 -- International Capital Appreciation Fund..................... (26) (203) 229 International Opportunities Fund............................ (23) 23 -- International Small Company Fund............................ 3,830 (3,830) -- MidCap Fund................................................. 10,396 (10,654) 258 MidCap Growth Fund.......................................... 10 -- (10) MidCap Value Fund........................................... 539 (539) -- Money Market Fund........................................... -- -- -- Retirement Income Fund...................................... 6 -- (6) Select MidCap Growth Fund................................... 368 (371) 3 Select MidCap Value Fund.................................... 107 (107) -- Select SmallCap Growth Fund................................. 86 -- (86) Select SmallCap Value Fund.................................. 12 3 (15) Short Duration Fund......................................... 17 (17) -- Small Company Fund.......................................... 3,588 141 (3,729) SmallCap Growth Fund........................................ 1,069 93 (1,162) Stock Fund.................................................. 214 (214) -- Target Retirement 2010 Fund................................. (1) -- 1 Target Retirement 2020 Fund................................. 7 (7) -- Target Retirement 2030 Fund................................. 1 -- (1) Tax-Free California Fund.................................... -- -- -- Tax-Free Minnesota Fund..................................... -- -- -- Tax-Free National Fund...................................... -- -- -- Tax-Free New York Fund...................................... -- -- -- Total Return Bond Fund...................................... (101) 101 -- U.S. Government Securities Fund............................. 39 (39) -- Value Fund.................................................. (14) 14 -- Value Opportunities Fund.................................... (28) 28 --
305 THE HARTFORD MUTUAL FUNDS, INC. AND THE HARTFORD MUTUAL FUNDS II, INC. NOTES TO FINANCIAL STATEMENTS -- (CONTINUED) OCTOBER 31, 2006 (000'S OMITTED) -------------------------------------------------------------------------------- j) (4) Capital Loss Carryforwards: As of October 31, 2006 (tax year-end), the following Funds had capital loss carryforwards for U.S. federal income tax purposes as follows:
YEAR OF EXPIRATION -------------------------------------------------------------------------------------- FUND 2007 2008 2009 2010 2011 2012 2013 2014 TOTAL ---- ------ ------- ------- -------- -------- ------ ------ ------ -------- Balanced Income Fund............. $ -- $ -- $ -- $ -- $ -- $ -- $ -- $ 19 $ 19 Disciplined Equity Fund.......... -- -- -- 34,059 26,636 -- -- -- 60,695 Floating Rate Fund............... -- -- -- -- -- -- -- 1,227 1,227 Focus Fund....................... -- -- -- -- 1,063 -- -- -- 1,063 Global Technology Fund........... -- -- 16,302 34,893 -- -- -- -- 51,195 High Yield Fund.................. 2,778 19,805 1,643 25,246 28,570 -- -- 3,595 81,637 Income Allocation Fund........... -- -- -- -- -- -- -- 38 38 Income Fund...................... -- -- -- -- -- -- 311 262 573 Inflation Plus Fund.............. -- -- -- -- -- -- -- 8,467 8,467 International Opportunities Fund........................... 1,701 729 -- -- -- -- -- -- 2,430 Select SmallCap Growth Fund...... -- -- -- -- -- -- 15 204 219 Short Duration Fund.............. -- -- -- -- 221 295 977 731 2,224 SmallCap Growth Fund............. -- -- -- -- 168 -- -- -- 168 Stock Fund....................... -- -- -- 107,964 196,018 -- -- -- 303,982 Tax-Free California Fund......... -- -- -- -- -- -- -- 5 5 Total Return Bond Fund........... -- -- -- -- -- -- -- 9,223 9,223 U.S. Government Securities Fund........................... -- 2,205 3,597 -- 672 3,591 2,517 6,198 18,780
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
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. The net asset value of each Fund's shares is determined as of the close of each business day of 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 next determined per-share net asset value. Each Fund intends to distribute substantially all of its net investment income and net realized capital gains to shareholders no less frequently than once each year. Normally, dividends from net investment income of Aggressive Growth Allocation Fund, Capital Appreciation Fund, Capital Appreciation II Fund, Disciplined Equity Fund, Focus Fund, Global Communications Fund, Global Financial Services Fund, Global Health Fund, Global Leaders Fund, Global Technology Fund, Growth Allocation Fund, Growth Fund, Growth Opportunities Fund, International Capital Appreciation Fund, International Opportunities Fund, International Small Company Fund, MidCap Fund, MidCap Growth Fund, MidCap Value Fund, Select MidCap Growth Fund, Select MidCap Value Fund, Select SmallCap Growth Fund, Select SmallCap Value Fund, Small Company Fund, SmallCap Growth Fund, Stock Fund, Target Retirement 2030 Fund, Value Fund, and Value Opportunities Fund will be declared and paid annually; dividends from net investment income of Advisers Fund, Balanced Allocation Fund, Balanced Income Fund, Conservative Allocation Fund, Dividend and Growth Fund, Equity Income Fund, Target Retirement 2010 Fund and Target Retirement 2020 Fund will be declared and paid quarterly; dividends from the net investment income of Floating Rate Fund, High Yield Fund, Income Allocation Fund, Income Fund, Inflation Plus Fund, Retirement Income Fund, Short Duration Fund, Tax-Free California Fund, Tax-Free Minnesota Fund, Tax-Free National Fund, Tax-Free New York Fund, Total Return Bond Fund and U. S. Government Securities Fund will be declared and paid monthly and dividends from net investment income of Money Market Fund will be declared daily and paid monthly. Dividends from Money Market Fund are not accrued on shares until the day following the date on which the shares are issued. Starting on January 1, 2007, dividends from the net investment income of Floating Rate Fund, High Yield Fund, Income Fund, Inflation Plus Fund, Short Duration Fund, Tax-Free-California Fund, Tax-Free Minnesota Fund, Tax-Free National Fund, Tax-Free New York Fund, Total Return Bond Fund and U.S. Government Securities Fund will be declared daily and paid monthly. Dividends on those funds are not accrued on shares until the day following the date on which the shares are issued. Long-term capital gains distributions received from the underlying funds are distributed to shareholders at least annually, when required. Unless shareholders specify otherwise, all dividends and distributions will be automatically reinvested in additional full or fractional shares of each Fund. Distributions from net investment income, net realized capital gains and capital are determined in accordance with federal income tax regulations, which may differ from U.S. generally accepted accounting principles with respect to character and timing. These differences include the treatment of non-taxable dividends, expiring capital loss carryforwards, foreign currency gains and losses, losses deferred due to wash 306 -------------------------------------------------------------------------------- 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 2,j,(3)). l) Illiquid and Restricted Securities -- Each Fund is permitted to invest up to 15% of its net assets in illiquid securities, except for Inflation Plus Fund and 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 within seven days, at approximately the price used to determine a Fund's net asset value per share. A Fund may not be able to sell illiquid securities or other investments when its sub-advisor considers it desirable to do so or may have to sell such securities or investments at a price that is lower than the price that could be obtained if the securities or investments were more liquid. A sale of illiquid securities or other investments may require more time and may result in higher dealer discounts and other selling expenses than does the sale of those that are liquid. Illiquid securities and investments also may be more difficult to value, due to the unavailability of reliable market quotations for such securities or investments, and investments in them may have an adverse impact on net asset value. Each Fund may also purchase certain restricted securities, commonly known as Rule 144A securities, that can be resold to qualifying institutions and which may be determined to be liquid pursuant to policies and guidelines established by that Fund's Board of Directors. m) Securities Purchased on a When-Issued and Delayed-Delivery Basis -- Delivery and payment for securities that have been purchased by the Funds on a forward commitment or when-issued or delayed-delivery basis take place beyond the customary settlement period. During this period, such securities are subject to market fluctuations, and the Funds identify securities segregated in their records with value at least equal to the amount of the commitment. As of October 31, 2006, the Funds entered into outstanding when-issued or forward commitments as follows:
FUND COST ---- -------- Advisers Fund............................................... $ 13,106 Floating Rate Fund.......................................... 157,178 High Yield Fund............................................. 2,850 Income Fund................................................. 1,628 Tax-Free California Fund.................................... 1,442 Tax-Free National Fund...................................... 2,541 Total Return Bond Fund...................................... 80,000
n) Credit Risk -- Credit risk depends largely on the perceived financial health of bond issuers. In general, lower rated bonds have higher credit risks. High yield bond prices can fall on bad news about the economy, an industry or a company. The share price, yield and total return of a fund which holds securities with higher credit risk may fluctuate more than with less aggressive bond funds. o) Senior Floating Rate Loans -- Certain Funds, as shown in the Schedule of Investments, may invest in interests in senior floating rate loans. Senior floating rate loans hold the most senior position in the capital structure of a business entity (the "Borrower"), are typically secured by specific collateral, and have a claim in the assets and/or stock of the Borrower that is senior to that held by subordinated debtholders and stockholders of the Borrower. Senior floating rate loans are typically structured and administered by a financial institution that acts as the agent of the lenders participating in the floating rate loan. Senior floating rate loans are rated below-investment-grade, which suggests they are more likely to default than investment-grade loans. A default could lead to non-payment of income which would result in a reduction of income to the Fund and there can be no assurance that the liquidation of any collateral would satisfy the Borrower's obligation in the event of non-payment of scheduled interest or principal payments, or that such collateral could be readily liquidated. Senior floating rate loans are also subject to interest rate risk. When interest rates decline, the value of a portfolio in fixed-rate obligations can be expected to rise. Conversely, when interest rates rise, the value of the portfolio invested in fixed-rate obligations can be expected to decline. Fund management expects the policy of acquiring floating rate loans to minimize fluctuations in net asset value as a result of changes in market rates. However, because rates on senior floating rate loans only reset periodically, changes in prevailing interest rates can be expected to cause some fluctuation in such Fund's net asset value. p) Prepayment Risks -- Most floating rate loans and certain debt securities allow for prepayment of principal without penalty. Floating rate loans and securities subject to prepayment risk generally offer less potential for gains when interest rates decline, and may offer a greater potential for loss when interest rates rise. In addition, with respect to securities, rising interest rates may cause prepayments to occur at a slower than expected rate, thereby effectively lengthening the maturity of the security and making the security more sensitive to interest rate changes. Prepayment risk is a major risk of mortgage-backed securities and certain asset-backed securities. Accordingly, the potential for the value of a floating rate loan or security to increase in response to interest rate declines is limited. Floating rate loans or debt securities purchased to replace a prepaid loan or debt security may have lower yields than the yield on the prepaid loan or debt security. q) Use of Estimates -- The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the financial statements and the reported amounts of income and expenses during the period. Operating results in the future could vary from the amounts derived from management's estimates. r) Credit Default Swaps -- Certain Funds may enter into event linked swaps, including credit default swaps. The credit default swap market allows a Fund to manage credit risk through buying and selling credit protection on a specific issuer, an index, or a basket of issuer. The transactions are documented through swap documents. A "buyer" of credit protection 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 periodic payments and agrees to assume the credit risk of an issuer upon the occurrence of certain events. A "seller's" exposure is limited to the total notional amount of the credit default swap contract. A Fund will generally not buy protection on issuers that are not currently held by such Fund. As of October 31, 2006, no credit default swaps were held by the Funds. 307 THE HARTFORD MUTUAL FUNDS, INC. AND THE HARTFORD MUTUAL FUNDS II, INC. NOTES TO FINANCIAL STATEMENTS -- (CONTINUED) OCTOBER 31, 2006 (000'S OMITTED) -------------------------------------------------------------------------------- s) Financial Accounting Standards Board Interpretation No. 48 -- On July 13, 2006, the Financial Accounting Standards Board (FASB) released FASB Interpretation No. 48 "Accounting for Uncertainty in Income Taxes" ("FIN 48"). FIN 48 provides guidance for how uncertain tax positions should be recognized, measured, presented and disclosed in the financial statements. FIN 48 requires the evaluation of tax positions taken or expected to be taken in the course of preparing a Funds' tax returns to determine whether the tax positions are "more-likely-than-not" of being sustained by the applicable tax authority. Tax positions not deemed to meet the more-likely-than-not threshold would be recorded as a tax benefit or expense in the current year. Adoption of FIN 48 is required for fiscal years beginning after December 15, 2006, and is to be applied to all open tax years as of the effective date. At this time, management is evaluating the implications of FIN 48 and its impact in the Funds' financial statements has not yet been determined. t) Financial Accounting Standards Board Financial Accounting Standards No. 157 -- In September 2006, FASB issued Statement on Financial Accounting Standards No. 157, "Fair Value Measurements" ("FAS 157"). This standard clarifies the definition of fair value for financial reporting, establishes a framework for measuring fair value and requires additional disclosures about the use of fair value measurements. FAS 157 is effective for the Funds' financial statements issued after October 31, 2008. As of October 31, 2006, the Funds do not believe the adoption of FAS 157 will impact the amounts reported in the financial statements, however, additional disclosures will be required about the inputs used to develop the measurements of fair value and the effect of certain of the measurements reported in the statements of operations for a fiscal period. 3. EXPENSES: a) Investment Management and Advisory Agreements -- HIFSCO serves as investment manager to each Fund pursuant to an Investment Advisory Agreement for The Hartford Mutual Funds, Inc. and The 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 Advisers Fund, Balanced Income Fund, Capital Appreciation Fund, Capital Appreciation II Fund, Disciplined Equity Fund, Dividend and Growth Fund, Equity Income Fund, Focus Fund, Global Communications Fund, Global Financial Services Fund, Global Health Fund, Global Leaders Fund, Global Technology Fund, Growth Fund, Growth Opportunities Fund, International Capital Appreciation Fund, International Opportunities Fund, International Small Company Fund, MidCap Fund, MidCap Value Fund, Small Company Fund, SmallCap Growth Fund, Stock Fund, Value Fund and Value Opportunities Fund in accordance with each Fund's investment objective and policies. In addition, HIFSCO has contracted with Hartford Investment Management, a wholly owned subsidiary of The Hartford, for the provision of day to day investment management services for Floating Rate Fund, High Yield Fund, Income Fund, Inflation Plus Fund, MidCap Growth Fund, Money Market Fund, Retirement Income Fund, Short Duration Fund, Small Company Fund, Target Retirement 2010 Fund, Target Retirement 2020 Fund, Target Retirement 2030 Fund, Tax-Free California Fund, Tax-Free Minnesota Fund, Tax-Free National Fund, Tax-Free New York Fund, Total Return Bond Fund and U.S. Government Securities Fund. HIFSCO has contracted for the provision of day to day investment management services with Chartwell Investment Partners, L.P. (Chartwell), Goldman Sachs Asset Management, L.P. (GSAM) and Northern Capital Management, LLC (Northern Capital) for the Select MidCap Growth Fund, with Artisan Partners Limited Partnership (Artisan), Cramer Rosenthal McGlynn, LLC (CRM) and Sterling Capital Management LLC (Sterling) for the Select MidCap Value Fund, with Jennison Associates, LLC (Jennison) and Oberweis Asset Management, Inc. (Oberweis) for Select SmallCap Growth Fund and with Kayne Anderson Rudnick Investment Management, LLC (KAR), Metropolitan West Capital Management, LLC (MetWest Capital) and SSgA Funds Management, Inc. (SSgA FM) for Select SmallCap Value Fund. Each Fund pays a fee to HIFSCO, a portion of which may be used to compensate Artisan, Chartwell, CRM, GSAM, Hartford Investment Management, Jennison, KAR, MetWest Capital, Oberweis, Northern Capital, SSgA FM, Sterling and Wellington, as applicable. The schedule below reflects the rates of compensation paid to HIFSCO for investment advisory services rendered during the year ended October 31, 2006; the rates are accrued daily and paid monthly: SELECT SMALLCAP GROWTH FUND
AVERAGE DAILY NET ASSETS ANNUAL FEE ------------------------ ---------- On first $500 million.............................................. 1.05% On next $500 million............................................... 1.00% Over $1 billion.................................................... 0.95%
CAPITAL APPRECIATION II FUND
AVERAGE DAILY NET ASSETS ANNUAL FEE ------------------------ ---------- On first $250 million.............................................. 1.00% On next $250 million............................................... 0.95% On next $500 million............................................... 0.90% Over $1 billion.................................................... 0.85%
SELECT MIDCAP VALUE FUND AND SELECT SMALLCAP VALUE FUND
AVERAGE DAILY NET ASSETS ANNUAL FEE ------------------------ ---------- On first $500 million.............................................. 1.00% On next $500 million............................................... 0.95% Over $1 billion.................................................... 0.90%
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............................................... 0.80% Over $250 million.................................................. 0.70%
308 -------------------------------------------------------------------------------- FOCUS FUND(1)(3), GLOBAL COMMUNICATIONS FUND(2)(3), GLOBAL FINANCIAL SERVICES FUND(2)(3), GLOBAL HEALTH FUND(3) AND GLOBAL TECHNOLOGY FUND(3)
AVERAGE DAILY NET ASSETS ANNUAL FEE ------------------------ ---------- On first $500 million.............................................. 1.00% On next $500 million............................................... 0.95% Over $1 billion.................................................... 0.90%
1) Effective November 1, 2005, HIFSCO agreed to waive management fees of 0.10% of average total net assets until October 31, 2006. 2) Effective September 1, 2005, HIFSCO agreed to waive management fees of 0.45% of average total net assets until October 31, 2006. 3) Effective November 1, 2006, HIFSCO agreed to permanently reduce its management fee amounting to 0.10% of average total net assets for these Funds. The new schedule will be as follows: INTERNATIONAL CAPITAL APPRECIATION FUND(4) AND INTERNATIONAL SMALL COMPANY FUND(4)
AVERAGE DAILY NET ASSETS ANNUAL FEE ------------------------ ---------- On first $500 million.............................................. 1.00% On next $500 million............................................... 0.90% Over $1 billion.................................................... 0.85%
4) Effective November 1, 2006, HIFSCO agreed to permanently reduce its management fee by 0.10% on the first $500 million of average daily net assets and 0.05% on average daily assets over $500 million. The new schedule will be as follows:
AVERAGE DAILY NET ASSETS ANNUAL FEE ------------------------ ---------- On first $500 million.............................................. 0.90% On next $500 million............................................... 0.85% Over $1 billion.................................................... 0.80%
AVERAGE DAILY NET ASSETS ANNUAL FEE ------------------------ ---------- On first $500 million.............................................. 0.90% On next $500 million............................................... 0.85% Over $1 billion.................................................... 0.80%
SELECT MIDCAP GROWTH FUND
AVERAGE DAILY NET ASSETS ANNUAL FEE ------------------------ ---------- On first $500 million.............................................. 0.90% On next $500 million............................................... 0.85% Over $1 billion.................................................... 0.80%
SMALL COMPANY FUND(5)
AVERAGE DAILY NET ASSETS ANNUAL FEE ------------------------ ---------- On first $250 million.............................................. 0.85% On next $250 million............................................... 0.80% On next $500 million............................................... 0.75% On next $500 million............................................... 0.70% Over $1.5 billion.................................................. 0.65%
5) Effective June 12, 2006, HIFSCO agreed to reduce its management fee by adding breakpoints at certain levels. Prior to June 12, 2006, the annual fee was 0.85% on the first $500 million, 0.75% on the next $500 million and 0.70% over $1 billion of average daily net assets. GLOBAL LEADERS FUND, INTERNATIONAL OPPORTUNITIES FUND, MIDCAP FUND AND MIDCAP VALUE FUND
AVERAGE DAILY NET ASSETS ANNUAL FEE ------------------------ ---------- On first $500 million.............................................. 0.85% On next $500 million............................................... 0.75% Over $1 billion.................................................... 0.70%
MIDCAP GROWTH FUND(6)
AVERAGE DAILY NET ASSETS ANNUAL FEE ------------------------ ---------- On first $500 million.............................................. 0.80% On next $500 million............................................... 0.75% Over $1 billion.................................................... 0.70%
6) Effective November 1, 2006, HIFSCO has voluntarily agreed to waive management fees until July 31, 2007. 309 THE HARTFORD MUTUAL FUNDS, INC. AND THE HARTFORD MUTUAL FUNDS II, INC. NOTES TO FINANCIAL STATEMENTS -- (CONTINUED) OCTOBER 31, 2006 (000'S OMITTED) -------------------------------------------------------------------------------- TAX-FREE NATIONAL FUND(7)
AVERAGE DAILY NET ASSETS ANNUAL FEE ------------------------ ---------- On first $50 million............................................... 0.80% On next $4.95 billion.............................................. 0.70% On next $5.0 billion............................................... 0.68% Over $10 billion................................................... 0.67%
7) Effective November 1, 2006, HIFSCO agreed to voluntarily waive management fees of 0.15% of average total net assets until October 31, 2007. CAPITAL APPRECIATION FUND, DISCIPLINED EQUITY FUND, EQUITY INCOME FUND(8), STOCK FUND(9) AND VALUE FUND
AVERAGE DAILY NET ASSETS ANNUAL FEE ------------------------ ---------- On first $500 million.............................................. 0.80% On next $500 million............................................... 0.70% Over $1 billion.................................................... 0.65%
8) Effective November 1, 2005, HIFSCO agreed to waive management fees of 0.30% of average total net assets until October 31, 2006. Effective November 1, 2006, HIFSCO agreed to waive management fees of 0.10% of average total net assets until October 31, 2007. 9) Effective November 1, 2005, HIFSCO agreed to waive management fees of 0.05% of average total net assets until October 31, 2006. Effective November 1, 2006, HIFSCO agreed to continue the waiver until October 31, 2007. DIVIDEND AND GROWTH FUND
AVERAGE DAILY NET ASSETS ANNUAL FEE ------------------------ ---------- On first $500 million.............................................. 0.75% On next $500 million............................................... 0.65% Over $1 billion.................................................... 0.60%
HIGH YIELD FUND(10)
AVERAGE DAILY NET ASSETS ANNUAL FEE ------------------------ ---------- On first $500 million.............................................. 0.75% On next $500 million............................................... 0.65% On next $4 billion................................................. 0.60% On next $5 billion................................................. 0.58% Over $10 billion................................................... 0.57%
10) Effective November 1, 2005, HIFSCO agreed to waive management fees of 0.15% of average total net assets until October 31, 2006. Effective November 1, 2006, HIFSCO agreed to increase the voluntary waiver of management fees to 0.20% of average total net assets until October 31, 2007. BALANCED INCOME FUND
AVERAGE DAILY NET ASSETS ANNUAL FEE ------------------------ ---------- On first $250 million.............................................. 0.725% On next $250 million............................................... 0.700% On next $500 million............................................... 0.675% Over $1 billion.................................................... 0.650%
TAX-FREE MINNESOTA FUND(11)
AVERAGE DAILY NET ASSETS ANNUAL FEE ------------------------ ---------- On first $50 million............................................... 0.72% On next $4.95 billion.............................................. 0.70% On next $5 billion................................................. 0.68% Over $10 billion................................................... 0.67%
11) Effective November 1, 2006, HIFSCO voluntarily agreed to waive management fees of 0.15% of average total net assets until October 31, 2007. ADVISERS FUND(12)
AVERAGE DAILY NET ASSETS ANNUAL FEE ------------------------ ---------- On first $500 million.............................................. 0.690% On next $500 million............................................... 0.625% Over $1 billion.................................................... 0.575%
12) Effective November 1, 2006, HIFSCO voluntarily agreed to waive management fees of 0.05% of average total net assets until October 31, 2007. FLOATING RATE FUND(13)
AVERAGE DAILY NET ASSETS ANNUAL FEE ------------------------ ---------- On first $500 million.............................................. 0.65% On next $4.5 billion............................................... 0.60% On next $5.0 billion............................................... 0.58% Over $10 billion................................................... 0.57%
13) HIFSCO agreed to waive the management fee through October 31, 2006. 310 -------------------------------------------------------------------------------- INCOME FUND AND INFLATION PLUS FUND(14)
AVERAGE DAILY NET ASSETS ANNUAL FEE ------------------------ ---------- On first $500 million.............................................. 0.60% On next $4.5 billion............................................... 0.55% On next $5.0 billion............................................... 0.53% Over $10 billion................................................... 0.52%
14) Effective November 1, 2006, HIFSCO agreed to voluntarily waive management fees of 0.10% of average total net assets until October 31, 2007. U.S. GOVERNMENT SECURITIES FUND(15)
AVERAGE DAILY NET ASSETS ANNUAL FEE ------------------------ ---------- On first $50 million............................................... 0.80% On next $4.95 billion.............................................. 0.70% On next $5.0 billion............................................... 0.68% Over $10 billion................................................... 0.67%
15) Effective November 1, 2006, HIFSCO agreed to permanently reduce its management fee. The new schedule is as follows:
AVERAGE DAILY NET ASSETS ANNUAL FEE ------------------------ ---------- On first $50 million............................................... 0.60% On next $450 billion............................................... 0.55% On next $4.5 billion............................................... 0.50% On next $5.0 billion............................................... 0.48% Over $10 billion................................................... 0.47%
TOTAL RETURN BOND FUND(16)
AVERAGE DAILY NET ASSETS ANNUAL FEE ------------------------ ---------- On first $500 million.............................................. 0.65% On next $500 million............................................... 0.55% On next $4.0 billion............................................... 0.50% On next $5.0 billion............................................... 0.48% Over $10 billion................................................... 0.47%
16) Effective November 1, 2006, HIFSCO agreed to permanently reduced its management fees for this Fund. The new schedule is as follows:
AVERAGE DAILY NET ASSETS ANNUAL FEE ------------------------ ---------- On first $500 million.............................................. 0.550% On next $500 million............................................... 0.525% On next $4.0 billion............................................... 0.500% On next $5.0 billion............................................... 0.480% Over $10 billion................................................... 0.470%
SHORT DURATION FUND, TAX-FREE CALIFORNIA FUND AND TAX-FREE NEW YORK FUND
AVERAGE DAILY NET ASSETS ANNUAL FEE ------------------------ ---------- On first $500 million.............................................. 0.55% On next $4.5 billion............................................... 0.50% On next $5.0 billion............................................... 0.48% Over $10 billion................................................... 0.47%
311 THE HARTFORD MUTUAL FUNDS, INC. AND THE HARTFORD MUTUAL FUNDS II, INC. NOTES TO FINANCIAL STATEMENTS -- (CONTINUED) OCTOBER 31, 2006 (000'S OMITTED) -------------------------------------------------------------------------------- MONEY MARKET FUND
AVERAGE DAILY NET ASSETS ANNUAL FEE ------------------------ ---------- On first $500 million.............................................. 0.50% On next $500 million............................................... 0.45% On next $4.0 billion............................................... 0.40% On next $5.0 billion............................................... 0.38% Over $10 billion................................................... 0.37%
AGGRESSIVE GROWTH ALLOCATION FUND(17), BALANCED ALLOCATION FUND(17), CONSERVATIVE ALLOCATION FUND(17), GROWTH ALLOCATION FUND(17), INCOME ALLOCATION FUND(17), RETIREMENT INCOME FUND(17), TARGET RETIREMENT 2010 FUND(17), TARGET RETIREMENT 2020 FUND(17) AND TARGET RETIREMENT 2030 FUND(17)
AVERAGE DAILY NET ASSETS ANNUAL FEE ------------------------ ---------- On first $500 million.............................................. 0.20% Over $500 million.................................................. 0.15%
17) Effective November 1, 2006, HIFSCO agreed to permanently reduce its management fee. The new schedule is as follows:
AVERAGE DAILY NET ASSETS ANNUAL FEE ------------------------ ---------- On first $500 million.............................................. 0.15% Over $500 million.................................................. 0.10%
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 and distribution of shares through broker-dealers, financing distribution costs and maintaining financial books and records. For the year ended October 31, 2006, the following revenues were received by HIFSCO:
FRONT-END LOAD CONTINGENT DEFERRED SALES CHARGE SALES CHARGE -------------- ------------------- Advisers Fund............................................... $ 1,469 $ 560 Aggressive Growth Allocation Fund........................... 1,777 85 Balanced Allocation Fund.................................... 5,886 314 Balanced Income Fund........................................ 36 -- Capital Appreciation Fund................................... 50,167 2,326 Capital Appreciation II Fund................................ 4,149 61 Conservative Allocation Fund................................ 937 78 Disciplined Equity Fund..................................... 212 49 Dividend and Growth Fund.................................... 11,868 518 Equity Income Fund.......................................... 2,961 63 Floating Rate Fund.......................................... 5,001 617 Focus Fund.................................................. 61 33 Global Communications Fund.................................. 193 9 Global Financial Services Fund.............................. 65 7 Global Health Fund.......................................... 1,758 122 Global Leaders Fund......................................... 715 93 Global Technology Fund...................................... 173 23 Growth Allocation Fund...................................... 5,588 293 Growth Fund................................................. 1,181 171 Growth Opportunities Fund................................... 3,055 108 High Yield Fund............................................. 331 114 Income Allocation Fund...................................... 246 38 Income Fund................................................. 292 20 Inflation Plus Fund......................................... 934 743 International Capital Appreciation Fund..................... 2,002 72 International Opportunities Fund............................ 937 28 International Small Company Fund............................ 610 14 MidCap Fund................................................. 350 447 MidCap Growth Fund.......................................... 268 -- MidCap Value Fund........................................... 119 70 Money Market Fund........................................... -- 112 Retirement Income Fund...................................... 5 -- Select MidCap Growth Fund................................... 3 12 Select MidCap Value Fund.................................... 336 10 Select SmallCap Growth Fund................................. 49 2 Select SmallCap Value Fund.................................. 1 -- Short Duration Fund......................................... 73 51 Small Company Fund.......................................... 309 57
312 --------------------------------------------------------------------------------
FRONT-END LOAD CONTINGENT DEFERRED SALES CHARGE SALES CHARGE -------------- ------------------- SmallCap Growth Fund........................................ 669 76 Stock Fund.................................................. 867 322 Target Retirement 2010 Fund................................. 9 -- Target Retirement 2020 Fund................................. 27 -- Target Retirement 2030 Fund................................. 12 1 Tax-Free California Fund.................................... 63 7 Tax-Free Minnesota Fund..................................... 65 2 Tax-Free National Fund...................................... 446 40 Tax-Free New York Fund...................................... 6 5 Total Return Bond Fund...................................... 4,685 217 U.S. Government Securities Fund............................. 186 72 Value Fund.................................................. 238 22 Value Opportunities Fund.................................... 879 60
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 Rule 12b-1 plan applicable to Class A shares of the Funds provides for payment of a Rule 12b-1 fee of up to 0.35% of average daily net assets; however, the Board of Directors has currently authorized 12b-1 payments of only up to 0.25%. Some or all of the fee may be used for shareholder servicing expenses with the remainder used for distribution expenses. Some or the entire Rule 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. 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. After eight years, Classes H and M shares convert to Class L shares. Upon conversion to Class L shares, the Class L plan described above will apply to those shares. The Funds' 12b-1 fees are accrued daily and paid monthly. For the year ended October 31, 2006, total sales commissions paid to affiliated brokers/dealers of The Hartford for distributing the Funds' shares were $5,428. 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. During the year ended October 31, 2006, HIFSCO has voluntarily limited the total operating expenses of the Class A, B, C, H, I, 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 I** CLASS L CLASS M CLASS N ---- ------- ------- ------- ------- --------- ------- ------- ------- Advisers Fund............... 1.18% NA NA NA NA NA NA NA Aggressive Growth Allocation Fund*..................... 1.65% 2.30% 2.30% NA 1.40% NA NA NA Balanced Allocation Fund*... 1.45% 2.15% 2.15% NA 1.20% NA NA NA Balanced Income Fund........ 1.25% 2.00% 2.00% NA NA NA NA NA Capital Appreciation Fund... 1.29% NA NA NA 1.04% NA NA NA Capital Appreciation II Fund...................... 1.60% 2.35% 2.35% NA 1.35% NA NA NA Conservative Allocation Fund*..................... 1.40% 2.05% 2.05% NA 1.15% NA NA NA Disciplined Equity Fund..... 1.40% 2.15% 2.15% NA NA NA NA NA Dividend and Growth Fund.... 1.25% NA NA NA 1.00% NA NA NA Equity Income Fund.......... 1.05% NA NA NA 0.80% NA NA NA Floating Rate Fund.......... NA NA NA NA NA NA NA NA Focus Fund.................. 1.50% 2.25% 2.25% NA NA NA NA NA Global Communications Fund...................... 1.15% 1.90% 1.90% NA NA NA NA NA Global Financial Services Fund...................... 1.15% 1.90% 1.90% NA NA NA NA NA Global Health Fund.......... 1.60% 2.35% 2.35% NA 1.35% NA NA NA Global Leaders Fund......... 1.48% 2.35% 2.35% NA NA NA NA NA Global Technology Fund...... 1.60% 2.35% 2.35% NA NA NA NA NA Growth Allocation Fund*..... 1.55% 2.20% 2.20% NA 1.30% NA NA NA Growth Fund................. 1.33% 2.15% 2.15% 2.15% 1.08% 1.45% 2.15% 2.15% Growth Opportunities Fund... 1.36% 2.15% 2.15% 2.15% 1.11% 1.45% 2.15% 2.15% High Yield Fund............. 1.20% 1.95% 1.95% NA NA NA NA NA Income Allocation Fund*..... 1.25% 1.95% 1.95% NA 1.00% NA NA NA FUND CLASS Y ---- ------- Advisers Fund............... NA Aggressive Growth Allocation Fund*..................... NA Balanced Allocation Fund*... NA Balanced Income Fund........ 0.90% Capital Appreciation Fund... NA Capital Appreciation II Fund...................... 1.15% Conservative Allocation Fund*..................... NA Disciplined Equity Fund..... 1.00% Dividend and Growth Fund.... NA Equity Income Fund.......... NA Floating Rate Fund.......... NA Focus Fund.................. 1.10% Global Communications Fund...................... 0.75% Global Financial Services Fund...................... 0.75% Global Health Fund.......... 1.20% Global Leaders Fund......... 1.20% Global Technology Fund...... 1.20% Growth Allocation Fund*..... NA Growth Fund................. 1.00% Growth Opportunities Fund... 1.00% High Yield Fund............. 0.80% Income Allocation Fund*..... NA
313 THE HARTFORD MUTUAL FUNDS, INC. AND THE HARTFORD MUTUAL FUNDS II, INC. NOTES TO FINANCIAL STATEMENTS -- (CONTINUED) OCTOBER 31, 2006 (000'S OMITTED) --------------------------------------------------------------------------------
FUND CLASS A CLASS B CLASS C CLASS H CLASS I** CLASS L CLASS M CLASS N ---- ------- ------- ------- ------- --------- ------- ------- ------- Income Fund................. 0.95% 1.70% 1.70% NA NA NA NA NA Inflation Plus Fund......... 0.95% 1.70% 1.70% NA 0.70% NA NA NA International Capital Appreciation Fund......... 1.60% 2.35% 2.35% NA 1.35% NA NA NA International Opportunities Fund...................... 1.57% 2.35% 2.35% NA NA NA NA NA International Small Company Fund...................... 1.60% 2.35% 2.35% NA NA NA NA NA MidCap Fund................. 1.37% NA NA NA NA NA NA NA MidCap Growth Fund.......... 1.40% 2.20% 2.20% NA NA NA NA NA MidCap Value Fund........... 1.40% 2.15% 2.15% NA NA NA NA NA Money Market Fund........... 0.95% 1.70% 1.70% NA NA NA NA NA Retirement Income Fund*..... 1.25% 2.00% 2.00% NA NA NA NA NA Select MidCap Growth Fund... 1.50% 2.25% 2.25% NA NA NA NA NA Select MidCap Value Fund.... 1.55% 2.30% 2.30% NA NA NA NA NA Select SmallCap Growth Fund...................... 1.65% 2.40% 2.40% NA NA NA NA NA Select SmallCap Value Fund...................... 1.60% 2.35% 2.35% NA NA NA NA NA Short Duration Fund......... 0.90% 1.65% 1.65% NA NA NA NA NA SmallCap Growth Fund........ 1.40% 2.15% 2.15% 2.15% 1.15% 1.25% 2.15% 2.15% Small Company Fund.......... 1.40% 2.15% 2.15% NA 1.15% NA NA NA Stock Fund.................. 1.28% NA NA NA NA NA NA NA Target Retirement 2010 Fund*..................... 1.30% 2.05% 2.05% NA NA NA NA NA Target Retirement 2020 Fund*..................... 1.35% 2.10% 2.10% NA NA NA NA NA Target Retirement 2030 Fund*..................... 1.40% 2.15% 2.15% NA NA NA NA NA Tax-Free California Fund.... 0.90% 1.65% 1.65% NA NA NA NA NA Tax-Free Minnesota Fund..... 0.85% 1.60% 1.60% 1.60% NA 0.90% 1.60% 1.60% Tax-Free National Fund...... 1.00% 1.75% 1.75% 1.75% NA 1.05% 1.75% 1.75% Tax-Free New York Fund...... 0.85% 1.60% 1.60% NA NA NA NA NA Total Return Bond Fund...... 1.20% 1.95% 1.95% NA 0.95% NA NA NA U.S. Government Securities Fund...................... 1.15% 1.90% 1.90% 1.90% NA 1.20% 1.90% 1.90% Value Fund.................. 1.40% 2.15% 2.15% NA NA NA NA NA Value Opportunities Fund.... 1.40% 2.15% 2.15% 2.15% 1.15% 1.45% 2.15% 2.15% FUND CLASS Y ---- ------- Income Fund................. 0.70% Inflation Plus Fund......... 0.70% International Capital Appreciation Fund......... 1.20% International Opportunities Fund...................... 1.20% International Small Company Fund...................... 1.20% MidCap Fund................. NA MidCap Growth Fund.......... 1.00% MidCap Value Fund........... 1.00% Money Market Fund........... 0.55% Retirement Income Fund*..... 0.95% Select MidCap Growth Fund... 1.10% Select MidCap Value Fund.... 1.15% Select SmallCap Growth Fund...................... 1.20% Select SmallCap Value Fund...................... 1.20% Short Duration Fund......... 0.65% SmallCap Growth Fund........ 1.10% Small Company Fund.......... 1.00% Stock Fund.................. NA Target Retirement 2010 Fund*..................... 1.00% Target Retirement 2020 Fund*..................... 1.05% Target Retirement 2030 Fund*..................... 1.10% Tax-Free California Fund.... NA Tax-Free Minnesota Fund..... NA Tax-Free National Fund...... NA Tax-Free New York Fund...... NA Total Return Bond Fund...... 0.80% U.S. Government Securities Fund...................... NA Value Fund.................. 1.00% Value Opportunities Fund.... 1.25%
* Voluntary limitations for total operating expenses for Aggressive Growth Allocation Fund, Balanced Allocation Fund, Conservative Allocation Fund, Growth Allocation Fund, Income Allocation Fund, Retirement Income Fund, Target Retirement 2010 Fund, Target Retirement 2020 Fund and Target Retirement 2030 Fund include expenses incurred as the result of investing in other investment companies. ** Effective August 31, 2006 through October 31, 2006. NA Not applicable. 314 -------------------------------------------------------------------------------- Effective November 1, 2006, HIFSCO changed the voluntary limit on the total operating expenses of the Class A, B, C, E, H, I, L, M, N and Y shares of some of the Funds, exclusive of taxes, interest, brokerage commissions, certain distribution expenses and extraordinary expenses. The new expense limitations are as follows:
FUND CLASS A CLASS B CLASS C CLASS E CLASS I CLASS L CLASSES H,M,N CLASS Y ---- ------- ------- ------- ------- ------- ------- ------------- ------- Aggressive Growth Allocation Fund*...................... 1.60% 2.25% 2.25% NA 1.35% NA NA NA Balanced Allocation Fund*.... 1.40% 2.10% 2.10% NA 1.15% NA NA NA Conservative Allocation Fund*...................... 1.35% 2.00% 2.00% NA 1.10% NA NA NA Equity Income Fund........... 1.25% 2.00% 2.00% NA 1.00% NA NA 0.90% Floating Rate Fund........... 1.00% 1.75% 1.75% NA 0.75% NA NA 0.75% Global Communications Fund... 1.60% 2.35% 2.35% NA NA NA NA 1.20% Global Financial Services Fund....................... 1.60% 2.35% 2.35% NA NA NA NA 1.20% Growth Allocation Fund*...... 1.50% 2.15% 2.15% NA 1.25% NA NA NA High Yield Fund.............. 1.15% 1.90% 1.90% NA NA NA NA 0.75% Income Allocation Fund*...... 1.20% 1.90% 1.90% NA 0.95% NA NA NA Inflation Plus Fund.......... 0.85% 1.60% 1.60% NA 0.60% NA NA 0.60% Retirement Income Fund*...... 1.20% 1.95% 1.95% NA NA NA NA 0.90% Stock Fund................... 1.28% NA NA NA NA NA NA NA Target Retirement 2010 Fund*...................... 1.25% 2.00% 2.00% NA NA NA NA 0.95% Target Retirement 2020 Fund*...................... 1.30% 2.05% 2.05% NA NA NA NA 1.00% Target Retirement 2030 Fund*...................... 1.35% 2.10% 2.10% NA NA NA NA 1.05% Tax-Free California Fund..... 0.85% 1.60% 1.60% NA NA NA NA 0.75% Tax-Free Minnesota Fund...... 0.85% 1.60% 1.60% 0.75% NA 0.90% 1.60% 0.75% Tax-Free National Fund....... 0.85% 1.60% 1.60% 0.75% NA 0.90% 1.60% 0.75% Total Return Bond Fund....... 1.00% 1.75% 1.75% NA 0.75% NA NA 0.75% U.S. Government Securities Fund....................... 1.00% 1.75% 1.75% 0.75% NA 1.00% 1.75% 0.75%
* Voluntary limitations for total operating expenses for Aggressive Growth Allocation Fund, Balanced Allocation Fund, Conservative Allocation Fund, Growth Allocation Fund, Income Allocation Fund, Retirement Income Fund, Target Retirement 2010 Fund, Target Retirement 2020 Fund and Target Retirement 2030 Fund include expenses incurred as the result of investing in other investment companies. Effective November 1, 2005, Hartford Administrative Services Company (HASCO) agreed to waive a portion of the transfer agency fees of the Funds, under a voluntary undertaking, to 0.35% of average daily net assets per fiscal year for all A, B and C share classes. This waiver is in addition to the expense limitations listed above. 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. d) Fees Paid Indirectly -- The Funds have entered into agreements with State Street Global Advisors and Russell Investment Group to partially recapture non-discounted trade commissions. Such rebates are used to pay a portion of the Funds' expenses. In addition, the Funds' custodian bank has agreed to reduce its fees when the Funds maintain cash on deposit in the non-interest-bearing custody account. For the year ended October 31, 2006, these amounts are included in the Statement of Operations. The ratio of expenses to average net assets in the financial highlights excludes fees paid indirectly. Had the fees paid indirectly been included, the annualized expense ratio for the periods listed below would have been as follows:
YEAR ENDED YEAR ENDED YEAR ENDED OCTOBER 31, OCTOBER 31, OCTOBER 31, FUND 2006 2005 2004 ---- ----------- ----------- ----------- ADVISERS FUND Class A Shares.............................................. 1.11% 1.18% 1.22% Class B Shares.............................................. 1.90% 1.96% 1.94% Class C Shares.............................................. 1.81% 1.88% 1.86% Class Y Shares.............................................. 0.65% 0.73% 0.74% AGGRESSIVE GROWTH ALLOCATION FUND Class A Shares.............................................. 0.72% 0.68% Class B Shares.............................................. 1.37% 1.33% Class C Shares.............................................. 1.37% 1.34% Class I Shares.............................................. 0.48%+
315 THE HARTFORD MUTUAL FUNDS, INC. AND THE HARTFORD MUTUAL FUNDS II, INC. NOTES TO FINANCIAL STATEMENTS -- (CONTINUED) OCTOBER 31, 2006 (000'S OMITTED) --------------------------------------------------------------------------------
YEAR ENDED YEAR ENDED YEAR ENDED OCTOBER 31, OCTOBER 31, OCTOBER 31, FUND 2006 2005 2004 ---- ----------- ----------- ----------- BALANCED ALLOCATION FUND Class A Shares.............................................. 0.62% 0.60% Class B Shares.............................................. 1.36% 1.31% Class C Shares.............................................. 1.36% 1.31% Class I Shares.............................................. 0.39%+ BALANCED INCOME FUND Class A Shares.............................................. 1.25%# Class B Shares.............................................. 2.00%# Class C Shares.............................................. 2.00%# Class Y Shares.............................................. 0.90%# CAPITAL APPRECIATION FUND Class A Shares.............................................. 1.17% 1.22% 1.32% Class B Shares.............................................. 1.96% 1.99% 2.03% Class C Shares.............................................. 1.88% 1.91% 1.94% Class I Shares.............................................. 0.88%+ Class Y Shares.............................................. 0.73% 0.75% 0.76% CAPITAL APPRECIATION II FUND Class A Shares.............................................. 1.59% 1.60%@ Class B Shares.............................................. 2.34% 2.35%@ Class C Shares.............................................. 2.32% 2.35%@ Class I Shares.............................................. 0.80%+ Class Y Shares.............................................. 1.13% 1.15%@ CONSERVATIVE ALLOCATION FUND Class A Shares.............................................. 0.63% 0.60% Class B Shares.............................................. 1.31% 1.26% Class C Shares.............................................. 1.31% 1.26% Class I Shares.............................................. 0.41%+ DISCIPLINED EQUITY FUND Class A Shares.............................................. 1.39% 1.38% 1.44% Class B Shares.............................................. 2.07% 2.13% 2.14% Class C Shares.............................................. 2.09% 2.10% 2.09% Class Y Shares.............................................. 0.88% 0.89% 0.87% DIVIDEND AND GROWTH FUND Class A Shares.............................................. 1.13% 1.16% 1.22% Class B Shares.............................................. 1.98% 2.01% 2.03% Class C Shares.............................................. 1.86% 1.88% 1.89% Class I Shares.............................................. 0.98%+ Class Y Shares.............................................. 0.70% 0.72% 0.74% EQUITY INCOME FUND Class A Shares.............................................. 1.00% 0.50% 0.56% Class B Shares.............................................. 1.84% 1.38% 1.36% Class C Shares.............................................. 1.70% 1.22% 1.19% Class I Shares.............................................. 0.80%+ Class Y Shares.............................................. 0.57% 0.10% 0.10% FLOATING RATE FUND Class A Shares.............................................. 0.50% Class B Shares.............................................. 1.35% Class C Shares.............................................. 1.28% Class I Shares.............................................. 0.43%+ Class Y Shares.............................................. 0.15% FOCUS FUND Class A Shares.............................................. 1.48% 1.57% 1.59% Class B Shares.............................................. 2.23% 2.32% 2.32% Class C Shares.............................................. 2.23% 2.32% 2.25% Class Y Shares.............................................. 1.05% 1.13% 1.08% GLOBAL COMMUNICATIONS FUND Class A Shares.............................................. 1.11% 1.49% 1.63% Class B Shares.............................................. 1.73% 2.24% 2.33% Class C Shares.............................................. 1.85% 2.23% 2.33% Class Y Shares.............................................. 0.70% 1.04% 1.17%
316 --------------------------------------------------------------------------------
YEAR ENDED YEAR ENDED YEAR ENDED OCTOBER 31, OCTOBER 31, OCTOBER 31, FUND 2006 2005 2004 ---- ----------- ----------- ----------- GLOBAL FINANCIAL SERVICES FUND Class A Shares.............................................. 1.14% 1.48% 1.63% Class B Shares.............................................. 1.77% 2.25% 2.33% Class C Shares.............................................. 1.90% 2.25% 2.33% Class Y Shares.............................................. 0.74% 1.07% 1.18% GLOBAL HEALTH FUND Class A Shares.............................................. 1.60% 1.58% 1.63% Class B Shares.............................................. 2.31% 2.33% 2.34% Class C Shares.............................................. 2.31% 2.33% 2.34% Class I Shares.............................................. 1.14%+ Class Y Shares.............................................. 1.08% 1.06% 1.10% GLOBAL LEADERS FUND Class A Shares.............................................. 1.45% 1.36% 1.53% Class B Shares.............................................. 2.15% 2.23% 2.26% Class C Shares.............................................. 2.18% 2.13% 2.15% Class Y Shares.............................................. 0.91% 0.85% 0.84% GLOBAL TECHNOLOGY FUND Class A Shares.............................................. 1.32% 1.53% 1.60% Class B Shares.............................................. 1.96% 2.28% 2.30% Class C Shares.............................................. 2.21% 2.28% 2.30% Class Y Shares.............................................. 1.17% 1.13% 1.09% GROWTH ALLOCATION FUND Class A Shares.............................................. 0.67% 0.64% Class B Shares.............................................. 1.32% 1.29% Class C Shares.............................................. 1.32% 1.29% Class I Shares.............................................. 0.42%+ GROWTH FUND Class A Shares.............................................. 1.31% 1.31% 1.43% Class B Shares.............................................. 2.08% 2.13% 2.13% Class C Shares.............................................. 2.00% 2.03% 2.05% Class H Shares.............................................. 1.78% 1.79% 1.80% Class I Shares.............................................. 0.89%+ Class L Shares.............................................. 1.03% 1.04% 1.05% Class M Shares.............................................. 1.78% 1.79% 1.80% Class N Shares.............................................. 1.78% 1.79% 1.80% Class Y Shares.............................................. 0.81% 0.83% 0.85% GROWTH OPPORTUNITIES FUND Class A Shares.............................................. 1.18% 1.30% 1.40% Class B Shares.............................................. 2.05% 2.08% 2.10% Class C Shares.............................................. 2.05% 2.07% 2.06% Class H Shares.............................................. 1.79% 1.77% 1.78% Class I Shares.............................................. 1.11%+ Class L Shares.............................................. 1.04% 1.02% 1.03% Class M Shares.............................................. 1.79% 1.77% 1.78% Class N Shares.............................................. 1.79% 1.77% 1.78% Class Y Shares.............................................. 0.81% 0.82% 0.77% Class Z Shares.............................................. 0.79% 0.77% 0.78% HIGH YIELD FUND Class A Shares.............................................. 1.20% 1.33% Class B Shares.............................................. 1.94% 2.10% Class C Shares.............................................. 1.89% 2.00% Class Y Shares.............................................. 0.73% 0.87% INCOME ALLOCATION FUND Class A Shares.............................................. 0.61% 0.56% Class B Shares.............................................. 1.31% 1.26% Class C Shares.............................................. 1.31% 1.26% Class I Shares.............................................. 0.37%+ INCOME FUND Class A Shares.............................................. 0.95% 0.95% Class B Shares.............................................. 1.70% 1.70% Class C Shares.............................................. 1.70% 1.70% Class Y Shares.............................................. 0.70% 0.70%
317 THE HARTFORD MUTUAL FUNDS, INC. AND THE HARTFORD MUTUAL FUNDS II, INC. NOTES TO FINANCIAL STATEMENTS -- (CONTINUED) OCTOBER 31, 2006 (000'S OMITTED) --------------------------------------------------------------------------------
YEAR ENDED YEAR ENDED YEAR ENDED OCTOBER 31, OCTOBER 31, OCTOBER 31, FUND 2006 2005 2004 ---- ----------- ----------- ----------- INFLATION PLUS FUND Class A Shares.............................................. 0.95% 0.95% Class B Shares.............................................. 1.70% 1.70% Class C Shares.............................................. 1.70% 1.70% Class I Shares.............................................. 0.70%+ Class Y Shares.............................................. 0.68% 0.68% INTERNATIONAL CAPITAL APPRECIATION FUND Class A Shares.............................................. 1.56% 1.53% 1.59% Class B Shares.............................................. 2.26% 2.28% 2.29% Class C Shares.............................................. 2.31% 2.28% 2.28% Class I Shares.............................................. 1.35%+ Class Y Shares.............................................. 1.12% 1.13% 1.05% INTERNATIONAL OPPORTUNITIES FUND Class A Shares.............................................. 1.54% 1.52% 1.60% Class B Shares.............................................. 2.12% 2.30% 2.30% Class C Shares.............................................. 2.30% 2.30% 2.30% Class Y Shares.............................................. 0.99% 1.01% 1.03% INTERNATIONAL SMALL COMPANY FUND Class A Shares.............................................. 1.58% 1.55% 1.60% Class B Shares.............................................. 2.22% 2.30% 2.30% Class C Shares.............................................. 2.33% 2.30% 2.29% Class Y Shares.............................................. 1.18% 1.15% 1.15% MIDCAP FUND Class A Shares.............................................. 1.25% 1.28% 1.36% Class B Shares.............................................. 2.01% 2.06% 2.10% Class C Shares.............................................. 1.93% 1.97% 2.00% Class Y Shares.............................................. 0.78% 0.81% 0.84% MIDCAP GROWTH FUND Class A Shares.............................................. 1.20%# Class B Shares.............................................. 2.05%# Class C Shares.............................................. 2.07%# Class Y Shares.............................................. 0.79%# MIDCAP VALUE FUND Class A Shares.............................................. 1.39% 1.38% 1.43% Class B Shares.............................................. 2.14% 2.13% 2.13% Class C Shares.............................................. 2.14% 2.13% 2.13% Class Y Shares.............................................. 0.93% 0.94% 0.88% MONEY MARKET FUND Class A Shares.............................................. 0.95% 0.95% Class B Shares.............................................. 1.70% 1.70% Class C Shares.............................................. 1.70% 1.70% Class Y Shares.............................................. 0.55% 0.55% RETIREMENT INCOME FUND Class A Shares.............................................. 0.54% Class B Shares.............................................. 1.30% Class C Shares.............................................. 1.30% Class Y Shares.............................................. 0.24% SELECT MIDCAP GROWTH FUND Class A Shares.............................................. 1.48% 1.49%* Class B Shares.............................................. 2.09% 2.24%* Class C Shares.............................................. 2.23% 2.24%* Class Y Shares.............................................. 1.08% 1.09%* SELECT MIDCAP VALUE FUND Class A Shares.............................................. 1.50% 1.54%@ Class B Shares.............................................. 2.25% 2.29%@ Class C Shares.............................................. 2.25% 2.29%@ Class Y Shares.............................................. 1.11% 1.14%@ SELECT SMALLCAP GROWTH FUND Class A Shares.............................................. 1.65% Class B Shares.............................................. 2.39% Class C Shares.............................................. 2.39% Class Y Shares.............................................. 1.17%
318 --------------------------------------------------------------------------------
YEAR ENDED YEAR ENDED YEAR ENDED OCTOBER 31, OCTOBER 31, OCTOBER 31, FUND 2006 2005 2004 ---- ----------- ----------- ----------- SELECT SMALLCAP VALUE FUND Class A Shares.............................................. 1.60%# Class B Shares.............................................. 2.35%# Class C Shares.............................................. 2.35%# Class Y Shares.............................................. 1.20%# SHORT DURATION FUND Class A Shares.............................................. 0.90% 0.90% Class B Shares.............................................. 1.65% 1.65% Class C Shares.............................................. 1.65% 1.65% Class Y Shares.............................................. 0.65% 0.65% SMALL COMPANY FUND Class A Shares.............................................. 1.37% 1.35% 1.40% Class B Shares.............................................. 2.12% 2.10% 2.10% Class C Shares.............................................. 2.11% 2.10% 2.10% Class Y Shares.............................................. 0.91% 0.92% 0.94% Class I Shares.............................................. 1.08%+ SMALLCAP GROWTH FUND Class A Shares.............................................. 1.34% 1.38% 1.44% Class B Shares.............................................. 2.00% 2.13% 2.14% Class C Shares.............................................. 2.13% 2.13% 2.14% Class H Shares.............................................. 1.88% 1.95% 1.97% Class I Shares.............................................. 1.15%+ Class L Shares.............................................. 1.13% 1.20% 1.42% Class M Shares.............................................. 1.88% 1.95% 1.97% Class N Shares.............................................. 1.88% 1.95% 1.97% Class Y Shares.............................................. 0.90% 0.97% 1.02% STOCK FUND Class A Shares.............................................. 1.26% 1.31% 1.42% Class B Shares.............................................. 2.10% 2.21% 2.18% Class C Shares.............................................. 2.01% 2.07% 2.03% Class Y Shares.............................................. 0.76% 0.82% 0.80% TARGET RETIREMENT 2010 FUND Class A Shares.............................................. 0.54% Class B Shares.............................................. 1.29% Class C Shares.............................................. 1.30% Class Y Shares.............................................. 0.23% TARGET RETIREMENT 2020 FUND Class A Shares.............................................. 0.53% Class B Shares.............................................. 1.29% Class C Shares.............................................. 1.30% Class Y Shares.............................................. 0.22% TARGET RETIREMENT 2030 FUND Class A Shares.............................................. 0.53% Class B Shares.............................................. 1.24% Class C Shares.............................................. 1.10% Class Y Shares.............................................. 0.20% TAX-FREE CALIFORNIA FUND Class A Shares.............................................. 0.89% 0.89% Class B Shares.............................................. 1.64% 1.64% Class C Shares.............................................. 1.64% 1.64% TAX-FREE MINNESOTA FUND Class A Shares.............................................. 0.84% 0.84% Class B Shares.............................................. 1.56% 1.59% Class C Shares.............................................. 1.56% 1.59% Class E Shares.............................................. 0.82% 0.87% Class H Shares.............................................. 1.56% 1.59% Class L Shares.............................................. 0.86% 0.89% Class M Shares.............................................. 1.56% 1.59% Class N Shares.............................................. 1.56% 1.59% Class Y Shares.............................................. 0.83% 0.90%
319 THE HARTFORD MUTUAL FUNDS, INC. AND THE HARTFORD MUTUAL FUNDS II, INC. NOTES TO FINANCIAL STATEMENTS -- (CONTINUED) OCTOBER 31, 2006 (000'S OMITTED) --------------------------------------------------------------------------------
YEAR ENDED YEAR ENDED YEAR ENDED OCTOBER 31, OCTOBER 31, OCTOBER 31, FUND 2006 2005 2004 ---- ----------- ----------- ----------- TAX-FREE NATIONAL FUND Class A Shares.............................................. 1.00% 1.01% Class B Shares.............................................. 1.75% 1.75% Class C Shares.............................................. 1.75% 1.75% Class E Shares.............................................. 0.88% 0.91% Class H Shares.............................................. 1.74% 1.75% Class L Shares.............................................. 1.05% 1.05% Class M Shares.............................................. 1.75% 1.75% Class N Shares.............................................. 1.75% 1.75% Class Y Shares.............................................. 0.89% 0.98% TAX-FREE NEW YORK FUND Class A Shares.............................................. 0.83% 0.84% Class B Shares.............................................. 1.58% 1.59% Class C Shares.............................................. 1.58% 1.59% TOTAL RETURN BOND FUND Class A Shares.............................................. 1.19% 1.20% Class B Shares.............................................. 1.95% 1.95% Class C Shares.............................................. 1.86% 1.87% Class I Shares.............................................. 0.91%+ Class Y Shares.............................................. 0.70% 0.74% U.S. GOVERNMENT SECURITIES FUND Class A Shares.............................................. 1.15% 1.15% Class B Shares.............................................. 1.90% 1.90% Class C Shares.............................................. 1.90% 1.90% Class E Shares.............................................. 0.83% 0.83% Class H Shares.............................................. 1.83% 1.82% Class L Shares.............................................. 1.08% 1.08% Class M Shares.............................................. 1.83% 1.82% Class N Shares.............................................. 1.83% 1.82% Class Y Shares.............................................. 0.83% 0.86% VALUE FUND Class A Shares.............................................. 1.37% 1.39% 1.44% Class B Shares.............................................. 2.12% 2.14% 2.14% Class C Shares.............................................. 2.14% 2.14% 2.14% Class Y Shares.............................................. 0.91% 0.92% 0.90% VALUE OPPORTUNITIES FUND Class A Shares.............................................. 1.39% 1.39% 1.44% Class B Shares.............................................. 2.11% 2.14% 2.15% Class C Shares.............................................. 2.14% 2.14% 2.15% Class H Shares.............................................. 1.96% 2.05% 2.14% Class I Shares.............................................. 1.15%+ Class L Shares.............................................. 1.22% 1.30% 1.41% Class M Shares.............................................. 1.97% 2.05% 2.14% Class N Shares.............................................. 1.97% 2.05% 2.14% Class Y Shares.............................................. 0.99% 1.06% 1.15%
* From (commencement of operations) January 1, 2005, through October 31, 2005. @ From (commencement of operations) April 29, 2005, through October 31, 2005. # From (commencement of operations) July 31, 2006, through October 31, 2006. + From (commencement of operations) August 31, 2006, through October 31, 2006. e) Accounting Services Agreement -- Pursuant to the Fund Accounting Agreement between Hartford Life Insurance Co. (HLIC) and the Funds, HLIC provides accounting services to the Funds and received monthly compensation at the annual rate of 0.02% of each Fund's Class A, B, C, I and Y average daily net assets. Effective January 1, 2006, the rate was reduced to 0.015%, except for Aggressive Allocation Fund, Balanced Allocation Fund, Conservative Allocation Fund, Growth Allocation Fund, Income Allocation Fund which pay a fee of 0.01% of each Fund's Class A, B, C and I average daily net assets; and Retirement Income Fund, Target Retirement 2010 Fund, Target Retirement 2020 Fund, and Target Retirement 2030 Fund which pay a fee of 0.01% of each Fund's Class A, B, C and Y average daily net assets. The Fund's accounting services fees are accrued daily and paid monthly. f) Other Related Party Transactions -- The Hartford provided certain legal services to the Funds, for which the Funds were charged $107 for the year ended October 31, 2006. Certain officers of the Funds are directors and/or officers of HIFSCO, Hartford Investment Management and/or The Hartford or its subsidiaries. For the year ended October 31, 2006, a portion of the Funds' chief compliance officer's salary was paid by the Funds in the amount of $19. The payment is included in the Board of Director's fees on the Funds' Statement of Operations. HASCO, a wholly 320 -------------------------------------------------------------------------------- owned subsidiary of The Hartford, provides transfer agent services to the Funds. HASCO was compensated $63,806 for providing such services. The Funds accrue these fees daily and pay monthly. 4. AFFILIATE HOLDINGS: As of October 31, 2006, affiliates of The Hartford had ownership of shares in the Funds as follows:
FUND CLASS A CLASS B CLASS C CLASS I CLASS Y ---- ------- ------- ------- ------- ------- Aggressive Growth Allocation Fund........................... -- -- -- 1 -- Balanced Allocation Fund.................................... -- -- -- 1 -- Balanced Income Fund........................................ 945 25 25 -- 10 Capital Appreciation Fund................................... -- -- -- Y -- Capital Appreciation II Fund................................ -- -- -- 1 9 Conservative Allocation Fund................................ -- -- -- 1 -- Dividend and Growth Fund.................................... -- -- -- Y -- Equity Income Fund.......................................... -- -- -- 1 -- Floating Rate Fund.......................................... -- -- -- 1 -- Global Health Fund.......................................... -- -- -- 1 -- Global Financial Services Fund.............................. 575 -- -- -- -- Growth Allocation Fund...................................... -- -- -- 1 -- Growth Fund................................................. -- -- -- 1 -- Growth Opportunities Fund................................... -- -- -- Y -- Income Allocation Fund...................................... -- -- -- 1 -- Inflation Plus Fund......................................... -- -- -- 1 -- International Capital Appreciation Fund..................... -- -- -- 1 -- MidCap Growth Fund.......................................... 940 25 25 -- 10 Retirement Income Fund...................................... 27 12 12 -- 12 Select MidCap Growth Fund................................... 545 20 20 -- 20 Select MidCap Value Fund.................................... 1,381 51 51 -- 51 Select SmallCap Growth Fund................................. 540 20 20 -- 20 Select SmallCap Value Fund.................................. 1,440 25 25 -- 10 Small Company Fund.......................................... 475 -- -- Y -- SmallCap Growth Fund........................................ -- -- -- Y -- Target Retirement 2010 Fund................................. 24 14 14 -- 14 Target Retirement 2020 Fund................................. 8 1 1 -- 1 Target Retirement 2030 Fund................................. 8 3 3 -- 3 Tax-Free California Fund.................................... 819 -- -- -- NA Tax-Free Minnesota Fund..................................... -- -- -- -- 1 Tax-Free National Fund...................................... -- -- -- -- 1 Tax-Free New York Fund...................................... 936 114 114 -- NA Total Return Bond Fund...................................... -- -- -- 1 -- U.S. Government Securities Fund............................. -- -- -- -- 1 Value Opportunities Fund.................................... -- -- -- 1 --
Y Due to the presentation of the financial statements in thousands, the number of shares held round to zero. NA Not applicable 321 THE HARTFORD MUTUAL FUNDS, INC. AND THE HARTFORD MUTUAL FUNDS II, INC. NOTES TO FINANCIAL STATEMENTS -- (CONTINUED) OCTOBER 31, 2006 (000'S OMITTED) -------------------------------------------------------------------------------- 5. INVESTMENT TRANSACTIONS: For the period ended October 31, 2006, the cost of purchases and proceeds from sales of securities for Money Market Fund were $2,591,899 and $2,570,423, respectively. The cost of purchases and proceeds from sales of securities (excluding short-term investments) for the other portfolios were as follows:
COST OF PURCHASES SALES PROCEEDS COST OF SALES PROCEEDS EXCLUDING EXCLUDING PURCHASES FOR FOR U.S. GOVERNMENT U.S. GOVERNMENT U.S. GOVERNMENT U.S. GOVERNMENT FUND OBLIGATIONS OBLIGATIONS OBLIGATIONS OBLIGATIONS ---- --------------- --------------- --------------- --------------- Advisers Fund.................................. $ 1,610,655 $1,917,747 $ 197,421 $ 289,599 Aggressive Growth Allocation Fund.............. 94,424 24,808 -- -- Balanced Allocation Fund....................... 344,279 100,315 -- -- Balanced Income Fund........................... 12,171 743 166 161 Capital Appreciation Fund...................... 10,680,586 8,560,968 -- -- Capital Appreciation II Fund................... 466,026 228,564 -- -- Conservative Allocation Fund................... 70,622 41,327 -- -- Disciplined Equity Fund........................ 282,506 268,787 -- -- Dividend and Growth Fund....................... 970,419 867,622 -- -- Equity Income Fund............................. 212,199 124,210 -- -- Floating Rate Fund............................. 2,621,322 397,642 -- -- Focus Fund..................................... 92,901 113,719 -- -- Global Communications Fund..................... 31,796 28,727 -- -- Global Financial Services Fund................. 17,644 12,139 -- -- Global Health Fund............................. 299,428 177,217 -- -- Global Leaders Fund............................ 874,355 924,535 -- -- Global Technology Fund......................... 82,081 83,148 -- -- Growth Allocation Fund......................... 306,144 75,545 -- -- Growth Fund.................................... 1,215,035 1,150,984 -- -- Growth Opportunities Fund...................... 1,599,601 1,428,040 -- -- High Yield Fund................................ 435,409 455,857 -- -- Income Allocation Fund......................... 20,510 13,504 -- -- Income Fund.................................... 141,417 84,282 40,112 42,606 Inflation Plus Fund............................ 124,999 45,230 1,676,923 1,899,124 International Capital Appreciation Fund........ 524,348 494,260 -- -- International Opportunities Fund............... 280,653 214,593 -- -- International Small Company Fund............... 197,641 165,767 -- -- MidCap Fund.................................... 2,428,643 2,707,518 -- -- MidCap Growth Fund............................. 21,765 11,568 MidCap Value Fund.............................. 183,174 252,603 -- -- Retirement Income Fund......................... 966 173 -- -- Select MidCap Growth Fund...................... 78,866 45,050 -- -- Select MidCap Value Fund....................... 72,419 31,337 -- -- Select SmallCap Growth Fund.................... 11,032 5,108 -- -- Select SmallCap Value Fund..................... 16,831 1,471 Short Duration Fund............................ 115,012 96,741 38,818 54,859 Small Company Fund............................. 643,618 607,896 -- -- SmallCap Growth Fund........................... 538,622 361,155 -- -- Stock Fund..................................... 1,375,745 1,637,913 -- -- Target Retirement 2010 Fund.................... 2,437 102 -- -- Target Retirement 2020 Fund.................... 2,679 176 -- -- Target Retirement 2030 Fund.................... 2,224 113 -- -- Tax-Free California Fund....................... 10,393 417 -- -- Tax-Free Minnesota Fund........................ 5,367 6,803 -- -- Tax-Free National Fund......................... 40,277 15,140 -- -- Tax-Free New York Fund......................... 3,685 3,643 -- -- Total Return Bond Fund......................... 2,431,424 2,270,684 1,842,551 1,844,362 U.S. Government Securities Fund................ 147,534 157,361 187,615 210,028 Value Fund..................................... 79,154 73,703 -- -- Value Opportunities Fund....................... 167,844 148,022 -- --
322 -------------------------------------------------------------------------------- 6. CAPITAL SHARE TRANSACTIONS: The following information is for the periods ended October 31, 2006 and 2005:
SHARES ISSUED FOR SHARES SOLD REINVESTED DIVIDENDS ------------------------ --------------------- 2006 2005 2006 2005 ---------- ---------- --------- -------- ADVISERS FUND: Class A Shares........... 5,913 6,088 1,293 1,779 Amount............ $ 94,790 $ 91,820 $ 20,524 $26,792 Class B Shares........... 706 1,086 244 378 Amount............ $ 11,190 $ 16,184 $ 3,830 $ 5,650 Class C Shares........... 595 564 153 236 Amount............ $ 9,531 $ 8,492 $ 2,436 $ 3,550 Class Y Shares........... 102 126 24 23 Amount............ $ 1,645 $ 1,907 $ 381 $ 344 AGGRESSIVE GROWTH ALLOCATION FUND: Class A Shares........... 4,899 4,667 42 3 Amount............ $ 61,480 $ 52,239 $ 510 $ 34 Class B Shares........... 1,044 1,490 3 -- Amount............ $ 13,071 $ 16,492 $ 36 $ 1 Class C Shares........... 2,047 3,009 5 -- Amount............ $ 25,510 $ 33,325 $ 55 $ 2 Class I Shares........... 1 -- -- -- Amount............ $ 10 $ -- $ -- $ -- BALANCED ALLOCATION FUND: Class A Shares........... 19,071 19,911 584 164 Amount............ $ 220,432 $ 214,294 $ 6,675 $ 1,783 Class B Shares........... 3,455 5,297 95 15 Amount............ $ 39,827 $ 56,712 $ 1,083 $ 166 Class C Shares........... 6,694 7,706 123 20 Amount............ $ 77,177 $ 82,665 $ 1,397 $ 215 Class I Shares........... 30 -- -- -- Amount............ $ 354 $ -- $ -- $ -- BALANCED INCOME FUND Class A Shares........... 1,099 -- 6 -- Amount............ $ 11,040 $ -- $ 56 $ -- Class B Shares........... 29 -- -- -- Amount............ $ 293 $ -- $ 1 $ -- Class C Shares........... 40 -- -- -- Amount............ $ 396 $ -- $ 1 $ -- Class Y Shares........... 10 -- -- -- Amount............ $ 100 $ -- $ 1 $ -- CAPITAL APPRECIATION FUND: Class A Shares........... 84,017 52,233 14,870 -- Amount............ $3,124,042 $1,777,216 $506,913 $ -- Class B Shares........... 8,674 6,556 4,950 -- Amount............ $ 296,102 $ 207,239 $155,430 $ -- Class C Shares........... 29,995 14,201 5,348 -- Amount............ $1,028,852 $ 452,151 $168,448 $ -- Class I Shares........... 131 -- -- -- Amount............ $ 5,082 $ -- $ -- $ -- Class Y Shares........... 3,241 3,153 605 -- Amount............ $ 127,775 $ 111,884 $ 21,836 $ -- NET INCREASE (DECREASE) SHARES REDEEMED OF SHARES ------------------------ ------------------------ 2006 2005 2006 2005 ----------- --------- ---------- ---------- ADVISERS FUND: Class A Shares........... (20,561) (33,823) (13,355) (25,956) Amount............ $ (328,675) $(511,587) $ (213,361) $ (392,975) Class B Shares........... (9,117) (10,823) (8,167) (9,359) Amount............ $ (144,469) $(161,821) $ (129,449) $ (139,987) Class C Shares........... (4,156) (8,691) (3,408) (7,891) Amount............ $ (66,459) $(130,715) $ (54,492) $ (118,673) Class Y Shares........... (68) (82) 58 67 Amount............ $ (1,097) $ (1,239) $ 929 $ 1,012 AGGRESSIVE GROWTH ALLOCATION FUND: Class A Shares........... (1,216) (798) 3,725 3,872 Amount............ $ (15,270) $ (9,056) $ 46,720 $ 43,217 Class B Shares........... (278) (156) 769 1,334 Amount............ $ (3,471) $ (1,761) $ 9,636 $ 14,732 Class C Shares........... (965) (655) 1,087 2,354 Amount............ $ (11,848) $ (7,537) $ 13,717 $ 25,790 Class I Shares........... -- -- 1 -- Amount............ $ -- $ -- $ 10 $ -- BALANCED ALLOCATION FUND: Class A Shares........... (5,910) (2,593) 13,745 17,482 Amount............ $ (68,331) $ (28,312) $ 158,776 $ 187,765 Class B Shares........... (1,092) (496) 2,458 4,816 Amount............ $ (12,605) $ (5,352) $ 28,305 $ 51,526 Class C Shares........... (1,987) (1,230) 4,830 6,496 Amount............ $ (22,926) $ (13,269) $ 55,648 $ 69,611 Class I Shares........... (1) -- 29 -- Amount............ $ (6) $ -- $ 348 $ -- BALANCED INCOME FUND Class A Shares........... -- -- 1,105 -- Amount............ $ (2) $ -- $ 11,094 $ -- Class B Shares........... -- -- 29 -- Amount............ $ (1) $ -- $ 293 $ -- Class C Shares........... (1) -- 39 -- Amount............ $ (10) $ -- $ 387 $ -- Class Y Shares........... -- -- 10 -- Amount............ $ -- $ -- $ 101 $ -- CAPITAL APPRECIATION FUND: Class A Shares........... (30,418) (22,397) 68,469 29,836 Amount............ $(1,131,379) $(767,171) $2,499,576 $1,010,045 Class B Shares........... (10,212) (8,132) 3,412 (1,576) Amount............ $ (346,891) $(261,148) $ 104,641 $ (53,909) Class C Shares........... (7,758) (6,955) 27,585 7,246 Amount............ $ (265,307) $(221,286) $ 931,993 $ 230,865 Class I Shares........... -- -- 131 -- Amount............ $ -- $ -- $ 5,082 $ -- Class Y Shares........... (400) (388) 3,446 2,765 Amount............ $ (15,793) $ (14,238) $ 133,818 $ 97,646
323 THE HARTFORD MUTUAL FUNDS, INC. AND THE HARTFORD MUTUAL FUNDS II, INC. NOTES TO FINANCIAL STATEMENTS -- (CONTINUED) OCTOBER 31, 2006 (000'S OMITTED) --------------------------------------------------------------------------------
SHARES ISSUED FOR SHARES SOLD REINVESTED DIVIDENDS ------------------------ --------------------- 2006 2005 2006 2005 ---------- ---------- --------- -------- CAPITAL APPRECIATION II FUND: Class A Shares........... 15,712 5,323 68 -- Amount............ $ 195,318 $ 57,024 $ 756 $ -- Class B Shares........... 1,831 589 8 -- Amount............ $ 22,555 $ 6,345 $ 89 $ -- Class C Shares........... 6,194 1,792 23 -- Amount............ $ 76,372 $ 19,422 $ 261 $ -- Class I Shares........... 252 -- -- -- Amount............ $ 3,204 $ -- $ -- $ -- Class Y Shares........... -- 30 -- -- Amount............ $ -- $ 300 $ 5 $ -- CONSERVATIVE ALLOCATION FUND: Class A Shares........... 4,226 5,061 244 73 Amount............ $ 45,809 $ 53,341 $ 2,610 $ 776 Class B Shares........... 781 1,057 44 10 Amount............ $ 8,456 $ 11,098 $ 476 $ 109 Class C Shares........... 2,288 3,289 78 21 Amount............ $ 24,716 $ 34,653 $ 832 $ 217 Class I Shares........... 1 -- -- -- Amount............ $ 10 $ -- $ -- $ -- DISCIPLINED EQUITY FUND: Class A Shares........... 935 1,341 24 153 Amount............ $ 11,655 $ 15,365 $ 299 $ 1,755 Class B Shares........... 149 238 -- 2 Amount............ $ 1,770 $ 2,623 $ -- $ 23 Class C Shares........... 70 145 -- 4 Amount............ $ 842 $ 1,606 $ -- $ 39 Class Y Shares........... 5,783 4,983 45 29 Amount............ $ 73,790 $ 59,052 $ 573 $ 346 DIVIDEND AND GROWTH FUND: Class A Shares........... 21,843 20,127 5,992 2,427 Amount............ $ 433,830 $ 377,916 $113,149 $45,020 Class B Shares........... 2,428 3,042 816 268 Amount............ $ 47,610 $ 56,232 $ 15,076 $ 4,853 Class C Shares........... 2,192 2,119 679 245 Amount............ $ 43,037 $ 39,143 $ 12,532 $ 4,444 Class I Shares........... -- -- -- -- Amount............ $ 10 $ -- $ -- $ -- Class Y Shares........... 1,165 2,396 327 120 Amount............ $ 23,005 $ 45,265 $ 6,264 $ 2,257 EQUITY INCOME FUND: Class A Shares........... 10,053 15,486 810 589 Amount............ $ 131,486 $ 185,634 $ 10,337 $ 7,058 Class B Shares........... 719 1,443 45 32 Amount............ $ 9,425 $ 17,256 $ 564 $ 380 Class C Shares........... 798 1,095 66 61 Amount............ $ 10,592 $ 13,124 $ 830 $ 735 Class I Shares........... 8 -- -- -- Amount............ $ 106 $ -- $ -- $ -- Class Y Shares........... 823 47 5 2 Amount............ $ 10,950 $ 574 $ 60 $ 17 NET INCREASE (DECREASE) SHARES REDEEMED OF SHARES ------------------------ ------------------------ 2006 2005 2006 2005 ----------- --------- ---------- ---------- CAPITAL APPRECIATION II FUND: Class A Shares........... (2,554) (176) 13,226 5,147 Amount............ $ (31,236) $ (1,941) $ 164,838 $ 55,083 Class B Shares........... (168) (14) 1,671 575 Amount............ $ (2,061) $ (155) $ 20,583 $ 6,190 Class C Shares........... (468) (26) 5,749 1,766 Amount............ $ (5,716) $ (281) $ 70,917 $ 19,141 Class I Shares........... -- -- 252 -- Amount............ $ (1) $ -- $ 3,203 $ -- Class Y Shares........... (21) -- (21) 30 Amount............ $ (259) $ -- $ (254) $ 300 CONSERVATIVE ALLOCATION FUND: Class A Shares........... (2,764) (1,765) 1,706 3,369 Amount............ $ (29,932) $ (18,790) $ 18,487 $ 35,327 Class B Shares........... (338) (179) 487 888 Amount............ $ (3,670) $ (1,887) $ 5,262 $ 9,320 Class C Shares........... (1,727) (1,764) 639 1,546 Amount............ $ (18,742) $ (18,469) $ 6,806 $ 16,401 Class I Shares........... -- -- 1 -- Amount............ $ -- $ -- $ 10 $ -- DISCIPLINED EQUITY FUND: Class A Shares........... (4,408) (6,267) (3,449) (4,773) Amount............ $ (54,869) $ (72,432) $ (42,915) $ (55,312) Class B Shares........... (841) (1,069) (692) (829) Amount............ $ (9,997) $ (11,782) $ (8,227) $ (9,136) Class C Shares........... (737) (1,167) (667) (1,018) Amount............ $ (8,780) $ (12,840) $ (7,938) $ (11,195) Class Y Shares........... (70) (65) 5,758 4,947 Amount............ $ (884) $ (775) $ 73,479 $ 58,623 DIVIDEND AND GROWTH FUND: Class A Shares........... (16,022) (15,420) 11,813 7,134 Amount............ $ (316,783) $(291,171) $ 230,196 $ 131,765 Class B Shares........... (4,214) (3,265) (970) 45 Amount............ $ (82,135) $ (60,699) $ (19,449) $ 386 Class C Shares........... (2,804) (3,265) 67 (901) Amount............ $ (54,455) $ (60,506) $ 1,114 $ (16,919) Class I Shares........... -- -- -- -- Amount............ $ -- $ -- $ 10 $ -- Class Y Shares........... (1,299) (413) 193 2,103 Amount............ $ (25,711) $ (7,961) $ 3,558 $ 39,561 EQUITY INCOME FUND: Class A Shares........... (4,434) (3,468) 6,429 12,607 Amount............ $ (57,353) $ (41,777) $ 84,470 $ 150,915 Class B Shares........... (489) (296) 275 1,179 Amount............ $ (6,321) $ (3,561) $ 3,668 $ 14,075 Class C Shares........... (886) (641) (22) 515 Amount............ $ (11,291) $ (7,689) $ 131 $ 6,170 Class I Shares........... -- -- 8 -- Amount............ $ -- $ -- $ 106 $ -- Class Y Shares........... (354) (17) 474 32 Amount............ $ (4,966) $ (205) $ 6,044 $ 386
324 --------------------------------------------------------------------------------
SHARES SOLD ------------------------ 2006 2005 ---------- ---------- FLOATING RATE FUND: Class A Shares........... 176,071 19,092 Amount............ $1,783,858 $ 192,854 Class B Shares........... 3,969 595 Amount............ $ 40,179 $ 5,996 Class C Shares........... 77,439 9,381 Amount............ $ 783,956 $ 94,747 Class I Shares........... 6,294 -- Amount............ $ 63,716 $ -- Class Y Shares........... 3,878 1,056 Amount............ $ 39,234 $ 10,662 FOCUS FUND: Class A Shares........... 275 314 Amount............ $ 2,936 $ 3,040 Class B Shares........... 58 64 Amount............ $ 602 $ 612 Class C Shares........... 62 104 Amount............ $ 640 $ 981 Class Y Shares........... 9 28 Amount............ $ 98 $ 283 GLOBAL COMMUNICATIONS FUND: Class A Shares........... 1,932 1,099 Amount............ $ 14,513 $ 7,313 Class B Shares........... 234 212 Amount............ $ 1,718 $ 1,361 Class C Shares........... 429 223 Amount............ $ 3,120 $ 1,450 Class Y Shares........... 61 62 Amount............ $ 460 $ 410 GLOBAL FINANCIAL SERVICES FUND: Class A Shares........... 469 143 Amount............ $ 6,307 $ 1,582 Class B Shares........... 58 25 Amount............ $ 737 $ 271 Class C Shares........... 103 66 Amount............ $ 1,335 $ 741 Class Y Shares........... 9 7 Amount............ $ 128 $ 74 GLOBAL HEALTH FUND: Class A Shares........... 10,199 3,495 Amount............ $ 172,479 $ 55,087 Class B Shares........... 675 445 Amount............ $ 10,885 $ 6,670 Class C Shares........... 1,731 1,038 Amount............ $ 27,974 $ 15,731 Class I Shares........... 44 -- Amount............ $ 784 $ -- Class Y Shares........... 114 9,894 Amount............ $ 1,981 $ 153,166 GLOBAL LEADERS FUND: Class A Shares........... 1,677 3,691 Amount............ $ 31,222 $ 62,349 Class B Shares........... 292 575 Amount............ $ 5,140 $ 9,270 Class C Shares........... 194 479 Amount............ $ 3,416 $ 7,767 Class Y Shares........... 3,682 1,488 Amount............ $ 70,888 $ 25,736 SHARES ISSUED FOR REINVESTED DIVIDENDS --------------------- 2006 2005 --------- -------- FLOATING RATE FUND: Class A Shares........... 3,137 132 Amount............ $ 31,686 $ 1,335 Class B Shares........... 64 3 Amount............ $ 648 $ 32 Class C Shares........... 1,490 53 Amount............ $ 15,041 $ 530 Class I Shares........... 18 -- Amount............ $ 184 $ -- Class Y Shares........... 274 16 Amount............ $ 2,763 $ 158 FOCUS FUND: Class A Shares........... 27 3 Amount............ $ 291 $ 29 Class B Shares........... -- -- Amount............ $ -- $ -- Class C Shares........... -- -- Amount............ $ -- $ -- Class Y Shares........... -- -- Amount............ $ 5 $ 3 GLOBAL COMMUNICATIONS FUND: Class A Shares........... 33 14 Amount............ $ 244 $ 89 Class B Shares........... 4 1 Amount............ $ 27 $ 5 Class C Shares........... 3 1 Amount............ $ 19 $ 4 Class Y Shares........... 2 -- Amount............ $ 12 $ 2 GLOBAL FINANCIAL SERVICES FUND: Class A Shares........... 11 14 Amount............ $ 134 $ 156 Class B Shares........... 1 1 Amount............ $ 12 $ 16 Class C Shares........... 1 1 Amount............ $ 8 $ 12 Class Y Shares........... 1 1 Amount............ $ 10 $ 10 GLOBAL HEALTH FUND: Class A Shares........... 762 567 Amount............ $ 12,090 $ 8,478 Class B Shares........... 276 225 Amount............ $ 4,176 $ 3,252 Class C Shares........... 274 210 Amount............ $ 4,150 $ 3,033 Class I Shares........... -- -- Amount............ $ -- $ -- Class Y Shares........... 597 4 Amount............ $ 9,803 $ 64 GLOBAL LEADERS FUND: Class A Shares........... 291 -- Amount............ $ 4,961 $ -- Class B Shares........... 57 -- Amount............ $ 916 $ -- Class C Shares........... 50 -- Amount............ $ 807 $ -- Class Y Shares........... 81 -- Amount............ $ 1,465 $ -- SHARES REDEEMED ------------------------ 2006 2005 ----------- --------- FLOATING RATE FUND: Class A Shares........... (47,642) (2,428) Amount............ $ (482,556) $ (24,613) Class B Shares........... (420) (37) Amount............ $ (4,254) $ (372) Class C Shares........... (6,104) (239) Amount............ $ (61,784) $ (2,420) Class I Shares........... (200) -- Amount............ $ (2,026) $ -- Class Y Shares........... (114) (74) Amount............ $ (1,148) $ (752) FOCUS FUND: Class A Shares........... (1,534) (2,792) Amount............ $ (16,258) $ (27,191) Class B Shares........... (348) (627) Amount............ $ (3,590) $ (5,951) Class C Shares........... (521) (1,100) Amount............ $ (5,389) $ (10,427) Class Y Shares........... (11) (71) Amount............ $ (124) $ (705) GLOBAL COMMUNICATIONS FUND: Class A Shares........... (2,088) (496) Amount............ $ (14,704) $ (3,216) Class B Shares........... (117) (84) Amount............ $ (838) $ (522) Class C Shares........... (150) (69) Amount............ $ (1,076) $ (442) Class Y Shares........... (30) (4) Amount............ $ (235) $ (26) GLOBAL FINANCIAL SERVICES FUND: Class A Shares........... (158) (191) Amount............ $ (2,058) $ (2,107) Class B Shares........... (56) (47) Amount............ $ (722) $ (510) Class C Shares........... (50) (64) Amount............ $ (632) $ (705) Class Y Shares........... (10) (3) Amount............ $ (127) $ (28) GLOBAL HEALTH FUND: Class A Shares........... (2,925) (2,723) Amount............ $ (49,348) $ (42,260) Class B Shares........... (694) (718) Amount............ $ (11,132) $ (10,730) Class C Shares........... (807) (891) Amount............ $ (12,939) $ (13,305) Class I Shares........... -- -- Amount............ $ -- $ -- Class Y Shares........... (281) (31) Amount............ $ (4,950) $ (503) GLOBAL LEADERS FUND: Class A Shares........... (5,356) (6,969) Amount............ $ (98,431) $(117,555) Class B Shares........... (1,203) (1,334) Amount............ $ (21,020) $ (21,331) Class C Shares........... (1,108) (1,531) Amount............ $ (19,418) $ (24,598) Class Y Shares........... (164) (131) Amount............ $ (3,181) $ (2,334) NET INCREASE (DECREASE) OF SHARES ------------------------ 2006 2005 ---------- ---------- FLOATING RATE FUND: Class A Shares........... 131,566 16,796 Amount............ $1,332,988 $ 169,576 Class B Shares........... 3,613 561 Amount............ $ 36,573 $ 5,656 Class C Shares........... 72,825 9,195 Amount............ $ 737,213 $ 92,857 Class I Shares........... 6,112 -- Amount............ $ 61,874 $ -- Class Y Shares........... 4,038 998 Amount............ $ 40,849 $ 10,068 FOCUS FUND: Class A Shares........... (1,232) (2,475) Amount............ $ (13,031) $ (24,122) Class B Shares........... (290) (563) Amount............ $ (2,988) $ (5,339) Class C Shares........... (459) (996) Amount............ $ (4,749) $ (9,446) Class Y Shares........... (2) (43) Amount............ $ (21) $ (419) GLOBAL COMMUNICATIONS FUND: Class A Shares........... (123) 617 Amount............ $ 53 $ 4,186 Class B Shares........... 121 129 Amount............ $ 907 $ 844 Class C Shares........... 282 155 Amount............ $ 2,063 $ 1,012 Class Y Shares........... 33 58 Amount............ $ 237 $ 386 GLOBAL FINANCIAL SERVICES FUND: Class A Shares........... 322 (34) Amount............ $ 4,383 $ (369) Class B Shares........... 3 (21) Amount............ $ 27 $ (223) Class C Shares........... 54 3 Amount............ $ 711 $ 48 Class Y Shares........... -- 5 Amount............ $ 11 $ 56 GLOBAL HEALTH FUND: Class A Shares........... 8,036 1,339 Amount............ $ 135,221 $ 21,305 Class B Shares........... 257 (48) Amount............ $ 3,929 $ (808) Class C Shares........... 1,198 357 Amount............ $ 19,185 $ 5,459 Class I Shares........... 44 -- Amount............ $ 784 $ -- Class Y Shares........... 430 9,867 Amount............ $ 6,834 $ 152,727 GLOBAL LEADERS FUND: Class A Shares........... (3,388) (3,278) Amount............ $ (62,248) $ (55,206) Class B Shares........... (854) (759) Amount............ $ (14,964) $ (12,061) Class C Shares........... (864) (1,052) Amount............ $ (15,195) $ (16,831) Class Y Shares........... 3,599 1,357 Amount............ $ 69,172 $ 23,402
325 THE HARTFORD MUTUAL FUNDS, INC. AND THE HARTFORD MUTUAL FUNDS II, INC. NOTES TO FINANCIAL STATEMENTS -- (CONTINUED) OCTOBER 31, 2006 (000'S OMITTED) --------------------------------------------------------------------------------
SHARES SOLD ------------------------ 2006 2005 ---------- ---------- GLOBAL TECHNOLOGY FUND: Class A Shares........... 2,377 1,097 Amount............ $ 13,278 $ 5,180 Class B Shares........... 252 231 Amount............ $ 1,345 $ 1,044 Class C Shares........... 434 170 Amount............ $ 2,312 $ 775 Class Y Shares........... 73 189 Amount............ $ 406 $ 950 GROWTH ALLOCATION FUND: Class A Shares........... 14,253 15,579 Amount............ $ 172,307 $ 170,874 Class B Shares........... 3,507 4,860 Amount............ $ 42,151 $ 53,037 Class C Shares........... 7,158 7,489 Amount............ $ 86,258 $ 81,830 Class I Shares........... 1 -- Amount............ $ 10 $ -- GROWTH FUND: Class A Shares........... 14,712 20,706 Amount............ $ 266,545 $ 348,182 Class B Shares........... 378 1,206 Amount............ $ 6,108 $ 18,149 Class C Shares........... 1,376 2,865 Amount............ $ 22,210 $ 43,293 Class H Shares........... 58 74 Amount............ $ 941 $ 1,121 Class I Shares........... 106 -- Amount............ $ 1,972 $ -- Class L Shares........... 597 581 Amount............ $ 10,999 $ 9,889 Class M Shares........... 75 95 Amount............ $ 1,232 $ 1,425 Class N Shares........... 12 18 Amount............ $ 198 $ 278 Class Y Shares........... 5,741 2,286 Amount............ $ 108,099 $ 39,040 GROWTH OPPORTUNITIES FUND: Class A Shares........... 8,579 6,721 Amount............ $ 245,120 $ 176,120 Class B Shares........... 628 364 Amount............ $ 15,570 $ 8,252 Class C Shares........... 1,341 334 Amount............ $ 33,215 $ 7,639 Class H Shares........... 79 108 Amount............ $ 1,979 $ 2,437 Class I Shares........... 3 -- Amount............ $ 73 $ -- Class L Shares........... 585 652 Amount............ $ 16,889 $ 16,784 Class M Shares........... 59 73 Amount............ $ 1,465 $ 1,651 Class N Shares........... 12 13 Amount............ $ 303 $ 293 Class Y Shares........... 1,470 853 Amount............ $ 43,059 $ 22,960 Class Z Shares........... 20 17 Amount............ $ 614 $ 453 SHARES ISSUED FOR REINVESTED DIVIDENDS --------------------- 2006 2005 --------- -------- GLOBAL TECHNOLOGY FUND: Class A Shares........... -- -- Amount............ $ -- $ -- Class B Shares........... -- -- Amount............ $ -- $ -- Class C Shares........... -- -- Amount............ $ -- $ -- Class Y Shares........... -- -- Amount............ $ -- $ -- GROWTH ALLOCATION FUND: Class A Shares........... 218 19 Amount............ $ 2,574 $ 215 Class B Shares........... 33 3 Amount............ $ 391 $ 32 Class C Shares........... 46 4 Amount............ $ 534 $ 44 Class I Shares........... -- -- Amount............ $ -- $ -- GROWTH FUND: Class A Shares........... -- -- Amount............ $ -- $ -- Class B Shares........... -- -- Amount............ $ -- $ -- Class C Shares........... -- -- Amount............ $ -- $ -- Class H Shares........... -- -- Amount............ $ -- $ -- Class I Shares........... -- -- Amount............ $ -- $ -- Class L Shares........... -- -- Amount............ $ -- $ -- Class M Shares........... -- -- Amount............ $ -- $ -- Class N Shares........... -- -- Amount............ $ -- $ -- Class Y Shares........... -- -- Amount............ $ -- $ -- GROWTH OPPORTUNITIES FUND: Class A Shares........... 268 -- Amount............ $ 7,160 $ -- Class B Shares........... 69 -- Amount............ $ 1,609 $ -- Class C Shares........... 66 -- Amount............ $ 1,526 $ -- Class H Shares........... 130 -- Amount............ $ 3,053 $ -- Class I Shares........... -- -- Amount............ $ -- $ -- Class L Shares........... 1,435 -- Amount............ $ 38,851 $ -- Class M Shares........... 78 -- Amount............ $ 1,817 $ -- Class N Shares........... 19 -- Amount............ $ 435 $ -- Class Y Shares........... 68 -- Amount............ $ 1,841 $ -- Class Z Shares........... 80 -- Amount............ $ 2,251 $ -- SHARES REDEEMED ------------------------ 2006 2005 ----------- --------- GLOBAL TECHNOLOGY FUND: Class A Shares........... (2,043) (2,639) Amount............ $ (11,154) $ (12,398) Class B Shares........... (501) (662) Amount............ $ (2,596) $ (2,969) Class C Shares........... (545) (1,171) Amount............ $ (2,821) $ (5,258) Class Y Shares........... (62) (268) Amount............ $ (350) $ (1,319) GROWTH ALLOCATION FUND: Class A Shares........... (3,471) (1,553) Amount............ $ (41,894) $ (17,312) Class B Shares........... (838) (359) Amount............ $ (10,106) $ (3,962) Class C Shares........... (1,736) (576) Amount............ $ (20,878) $ (6,397) Class I Shares........... -- -- Amount............ $ -- $ -- GROWTH FUND: Class A Shares........... (13,049) (7,771) Amount............ $ (236,091) $(132,108) Class B Shares........... (674) (437) Amount............ $ (10,763) $ (6,602) Class C Shares........... (1,485) (791) Amount............ $ (23,799) $ (11,969) Class H Shares........... (409) (408) Amount............ $ (6,608) $ (6,197) Class I Shares........... -- -- Amount............ $ -- $ -- Class L Shares........... (2,787) (2,689) Amount............ $ (51,150) $ (46,057) Class M Shares........... (337) (338) Amount............ $ (5,459) $ (5,116) Class N Shares........... (61) (35) Amount............ $ (997) $ (537) Class Y Shares........... (1,830) (10) Amount............ $ (33,915) $ (165) GROWTH OPPORTUNITIES FUND: Class A Shares........... (2,516) (1,049) Amount............ $ (71,765) $ (27,544) Class B Shares........... (182) (100) Amount............ $ (4,473) $ (2,265) Class C Shares........... (301) (136) Amount............ $ (7,419) $ (3,068) Class H Shares........... (415) (467) Amount............ $ (10,317) $ (10,587) Class I Shares........... -- -- Amount............ $ -- $ -- Class L Shares........... (2,588) (2,748) Amount............ $ (74,520) $ (71,235) Class M Shares........... (215) (241) Amount............ $ (5,353) $ (5,462) Class N Shares........... (38) (35) Amount............ $ (946) $ (813) Class Y Shares........... (87) (52) Amount............ $ (2,512) $ (1,482) Class Z Shares........... (113) (203) Amount............ $ (3,413) $ (5,358) NET INCREASE (DECREASE) OF SHARES ------------------------ 2006 2005 ---------- ---------- GLOBAL TECHNOLOGY FUND: Class A Shares........... 334 (1,542) Amount............ $ 2,124 $ (7,218) Class B Shares........... (249) (431) Amount............ $ (1,251) $ (1,925) Class C Shares........... (111) (1,001) Amount............ $ (509) $ (4,483) Class Y Shares........... 11 (79) Amount............ $ 56 $ (369) GROWTH ALLOCATION FUND: Class A Shares........... 11,000 14,045 Amount............ $ 132,987 $ 153,777 Class B Shares........... 2,702 4,504 Amount............ $ 32,436 $ 49,107 Class C Shares........... 5,468 6,917 Amount............ $ 65,914 $ 75,477 Class I Shares........... 1 -- Amount............ $ 10 $ -- GROWTH FUND: Class A Shares........... 1,663 12,935 Amount............ $ 30,454 $ 216,074 Class B Shares........... (296) 769 Amount............ $ (4,655) $ 11,547 Class C Shares........... (109) 2,074 Amount............ $ (1,589) $ 31,324 Class H Shares........... (351) (334) Amount............ $ (5,667) $ (5,076) Class I Shares........... 106 -- Amount............ $ 1,972 $ -- Class L Shares........... (2,190) (2,108) Amount............ $ (40,151) $ (36,168) Class M Shares........... (262) (243) Amount............ $ (4,227) $ (3,691) Class N Shares........... (49) (17) Amount............ $ (799) $ (259) Class Y Shares........... 3,911 2,276 Amount............ $ 74,184 $ 38,875 GROWTH OPPORTUNITIES FUND: Class A Shares........... 6,331 5,672 Amount............ $ 180,515 $ 148,576 Class B Shares........... 515 264 Amount............ $ 12,706 $ 5,987 Class C Shares........... 1,106 198 Amount............ $ 27,322 $ 4,571 Class H Shares........... (206) (359) Amount............ $ (5,285) $ (8,150) Class I Shares........... 3 -- Amount............ $ 73 $ -- Class L Shares........... (568) (2,096) Amount............ $ (18,780) $ (54,451) Class M Shares........... (78) (168) Amount............ $ (2,071) $ (3,811) Class N Shares........... (7) (22) Amount............ $ (208) $ (520) Class Y Shares........... 1,451 801 Amount............ $ 42,388 $ 21,478 Class Z Shares........... (13) (186) Amount............ $ (548) $ (4,905)
326 --------------------------------------------------------------------------------
SHARES SOLD ------------------------ 2006 2005 ---------- ---------- HIGH YIELD FUND: Class A Shares........... 8,977 8,904 Amount............ $ 70,114 $ 71,605 Class B Shares........... 431 758 Amount............ $ 3,366 $ 6,099 Class C Shares........... 656 1,539 Amount............ $ 5,119 $ 12,358 Class Y Shares........... 660 1,455 Amount............ $ 5,159 $ 11,590 INCOME ALLOCATION FUND: Class A Shares........... 1,804 1,515 Amount............ $ 17,725 $ 15,271 Class B Shares........... 240 367 Amount............ $ 2,363 $ 3,708 Class C Shares........... 465 885 Amount............ $ 4,577 $ 8,908 Class I Shares........... 1 -- Amount............ $ 10 $ -- INCOME FUND: Class A Shares........... 1,931 890 Amount............ $ 19,739 $ 9,362 Class B Shares........... 303 224 Amount............ $ 3,092 $ 2,353 Class C Shares........... 459 168 Amount............ $ 4,707 $ 1,783 Class Y Shares........... 4,159 1,595 Amount............ $ 42,424 $ 16,776 INFLATION PLUS FUND: Class A Shares........... 6,599 18,801 Amount............ $ 69,233 $ 204,666 Class B Shares........... 671 2,691 Amount............ $ 7,065 $ 29,325 Class C Shares........... 3,716 15,748 Amount............ $ 39,087 $ 171,480 Class I Shares........... 2 -- Amount............ $ 18 $ -- Class Y Shares........... 4,633 6,915 Amount............ $ 48,407 $ 75,336 INTERNATIONAL CAPITAL APPRECIATION FUND: Class A Shares........... 6,648 8,923 Amount............ $ 93,188 $ 107,673 Class B Shares........... 764 1,416 Amount............ $ 10,391 $ 16,612 Class C Shares........... 1,086 1,905 Amount............ $ 14,849 $ 22,367 Class I Shares........... 1 -- Amount............ $ 10 $ -- Class Y Shares........... 987 3,973 Amount............ $ 13,640 $ 48,003 INTERNATIONAL OPPORTUNITIES FUND: Class A Shares........... 4,125 1,937 Amount............ $ 61,337 $ 24,270 Class B Shares........... 517 310 Amount............ $ 7,280 $ 3,645 Class C Shares........... 322 254 Amount............ $ 4,529 $ 2,963 Class Y Shares........... 2,439 73 Amount............ $ 35,931 $ 932 SHARES ISSUED FOR REINVESTED DIVIDENDS --------------------- 2006 2005 --------- -------- HIGH YIELD FUND: Class A Shares........... 1,417 1,444 Amount............ $ 11,061 $11,564 Class B Shares........... 235 270 Amount............ $ 1,833 $ 2,160 Class C Shares........... 222 274 Amount............ $ 1,733 $ 2,194 Class Y Shares........... 230 171 Amount............ $ 1,794 $ 1,366 INCOME ALLOCATION FUND: Class A Shares........... 93 42 Amount............ $ 912 $ 424 Class B Shares........... 15 8 Amount............ $ 141 $ 78 Class C Shares........... 28 16 Amount............ $ 270 $ 157 Class I Shares........... -- -- Amount............ $ -- $ -- INCOME FUND: Class A Shares........... 140 125 Amount............ $ 1,426 $ 1,312 Class B Shares........... 19 17 Amount............ $ 193 $ 174 Class C Shares........... 16 16 Amount............ $ 158 $ 167 Class Y Shares........... 158 47 Amount............ $ 1,607 $ 494 INFLATION PLUS FUND: Class A Shares........... 1,182 1,267 Amount............ $ 12,325 $13,713 Class B Shares........... 292 320 Amount............ $ 3,041 $ 3,472 Class C Shares........... 840 985 Amount............ $ 8,763 $10,664 Class I Shares........... -- -- Amount............ $ -- $ -- Class Y Shares........... 544 278 Amount............ $ 5,664 $ 3,005 INTERNATIONAL CAPITAL APPRECIATION FUND: Class A Shares........... 149 -- Amount............ $ 1,845 $ -- Class B Shares........... 21 -- Amount............ $ 246 $ -- Class C Shares........... 26 -- Amount............ $ 307 $ -- Class I Shares........... -- -- Amount............ $ -- $ -- Class Y Shares........... 117 -- Amount............ $ 1,490 $ -- INTERNATIONAL OPPORTUNITIES FUND: Class A Shares........... 27 -- Amount............ $ 371 $ -- Class B Shares........... -- -- Amount............ $ -- $ -- Class C Shares........... -- -- Amount............ $ -- $ -- Class Y Shares........... 9 -- Amount............ $ 131 $ -- SHARES REDEEMED ------------------------ 2006 2005 ----------- --------- HIGH YIELD FUND: Class A Shares........... (10,688) (16,278) Amount............ $ (83,544) $(130,949) Class B Shares........... (2,047) (2,782) Amount............ $ (15,998) $ (22,326) Class C Shares........... (2,402) (4,009) Amount............ $ (18,759) $ (32,194) Class Y Shares........... (1,164) (283) Amount............ $ (9,111) $ (2,241) INCOME ALLOCATION FUND: Class A Shares........... (1,297) (629) Amount............ $ (12,731) $ (6,340) Class B Shares........... (180) (59) Amount............ $ (1,774) $ (594) Class C Shares........... (459) (602) Amount............ $ (4,516) $ (6,033) Class I Shares........... -- -- Amount............ $ -- $ -- INCOME FUND: Class A Shares........... (1,299) (948) Amount............ $ (13,210) $ (10,000) Class B Shares........... (206) (174) Amount............ $ (2,105) $ (1,833) Class C Shares........... (193) (201) Amount............ $ (1,982) $ (2,117) Class Y Shares........... (43) (38) Amount............ $ (437) $ (397) INFLATION PLUS FUND: Class A Shares........... (19,610) (9,846) Amount............ $ (205,003) $(107,151) Class B Shares........... (3,298) (1,685) Amount............ $ (34,349) $ (18,341) Class C Shares........... (15,919) (10,907) Amount............ $ (166,129) $(118,510) Class I Shares........... -- -- Amount............ $ -- $ -- Class Y Shares........... (687) (312) Amount............ $ (7,186) $ (3,379) INTERNATIONAL CAPITAL APPRECIATION FUND: Class A Shares........... (3,344) (2,419) Amount............ $ (45,644) $ (29,044) Class B Shares........... (374) (314) Amount............ $ (4,998) $ (3,670) Class C Shares........... (611) (540) Amount............ $ (8,171) $ (6,308) Class I Shares........... -- -- Amount............ $ -- $ -- Class Y Shares........... (2,492) (375) Amount............ $ (35,103) $ (4,540) INTERNATIONAL OPPORTUNITIES FUND: Class A Shares........... (2,091) (1,923) Amount............ $ (31,257) $ (24,092) Class B Shares........... (532) (562) Amount............ $ (7,467) $ (6,639) Class C Shares........... (315) (367) Amount............ $ (4,380) $ (4,232) Class Y Shares........... (223) (31) Amount............ $ (3,434) $ (395) NET INCREASE (DECREASE) OF SHARES ------------------------ 2006 2005 ---------- ---------- HIGH YIELD FUND: Class A Shares........... (294) (5,930) Amount............ $ (2,369) $ (47,780) Class B Shares........... (1,381) (1,754) Amount............ $ (10,799) $ (14,067) Class C Shares........... (1,524) (2,196) Amount............ $ (11,907) $ (17,642) Class Y Shares........... (274) 1,343 Amount............ $ (2,158) $ 10,715 INCOME ALLOCATION FUND: Class A Shares........... 600 928 Amount............ $ 5,906 $ 9,355 Class B Shares........... 75 316 Amount............ $ 730 $ 3,192 Class C Shares........... 34 299 Amount............ $ 331 $ 3,032 Class I Shares........... 1 -- Amount............ $ 10 $ -- INCOME FUND: Class A Shares........... 772 67 Amount............ $ 7,955 $ 674 Class B Shares........... 116 67 Amount............ $ 1,180 $ 694 Class C Shares........... 282 (17) Amount............ $ 2,883 $ (167) Class Y Shares........... 4,274 1,604 Amount............ $ 43,594 $ 16,873 INFLATION PLUS FUND: Class A Shares........... (11,829) 10,222 Amount............ $ (123,445) $ 111,228 Class B Shares........... (2,335) 1,326 Amount............ $ (24,243) $ 14,456 Class C Shares........... (11,363) 5,826 Amount............ $ (118,279) $ 63,634 Class I Shares........... 2 -- Amount............ $ 18 $ -- Class Y Shares........... 4,490 6,881 Amount............ $ 46,885 $ 74,962 INTERNATIONAL CAPITAL APPRECIATION FUND: Class A Shares........... 3,453 6,504 Amount............ $ 49,389 $ 78,629 Class B Shares........... 411 1,102 Amount............ $ 5,639 $ 12,942 Class C Shares........... 501 1,365 Amount............ $ 6,985 $ 16,059 Class I Shares........... 1 -- Amount............ $ 10 $ -- Class Y Shares........... (1,388) 3,598 Amount............ $ (19,973) $ 43,463 INTERNATIONAL OPPORTUNITIES FUND: Class A Shares........... 2,061 14 Amount............ $ 30,451 $ 178 Class B Shares........... (15) (252) Amount............ $ (187) $ (2,994) Class C Shares........... 7 (113) Amount............ $ 149 $ (1,269) Class Y Shares........... 2,225 42 Amount............ $ 32,628 $ 537
327 THE HARTFORD MUTUAL FUNDS, INC. AND THE HARTFORD MUTUAL FUNDS II, INC. NOTES TO FINANCIAL STATEMENTS -- (CONTINUED) OCTOBER 31, 2006 (000'S OMITTED) --------------------------------------------------------------------------------
SHARES SOLD ------------------------ 2006 2005 ---------- ---------- INTERNATIONAL SMALL COMPANY FUND: Class A Shares........... 2,850 1,228 Amount............ $ 42,844 $ 16,692 Class B Shares........... 425 245 Amount............ $ 6,207 $ 3,258 Class C Shares........... 492 320 Amount............ $ 7,108 $ 4,216 Class Y Shares........... 2,826 1,460 Amount............ $ 41,469 $ 19,654 MIDCAP FUND: Class A Shares........... 7,134 5,185 Amount............ $ 176,389 $ 128,890 Class B Shares........... 203 165 Amount............ $ 4,539 $ 3,808 Class C Shares........... 265 163 Amount............ $ 5,831 $ 3,872 Class Y Shares........... 2,186 904 Amount............ $ 58,033 $ 23,183 MIDCAP GROWTH FUND: Class A Shares........... 972 -- Amount............ $ 9,727 $ -- Class B Shares........... 28 -- Amount............ $ 281 $ -- Class C Shares........... 34 -- Amount............ $ 341 $ -- Class Y Shares........... 10 -- Amount............ $ 100 $ -- MIDCAP VALUE FUND: Class A Shares........... 352 365 Amount............ $ 4,807 $ 4,754 Class B Shares........... 69 91 Amount............ $ 892 $ 1,159 Class C Shares........... 56 61 Amount............ $ 706 $ 766 Class Y Shares........... 506 2,956 Amount............ $ 7,088 $ 38,771 MONEY MARKET FUND: Class A Shares........... 253,489 221,158 Amount............ $ 253,489 $ 221,158 Class B Shares........... 20,522 18,453 Amount............ $ 20,522 $ 18,453 Class C Shares........... 23,248 26,919 Amount............ $ 23,248 $ 26,919 Class Y Shares........... 5,073 9,406 Amount............ $ 5,073 $ 9,406 RETIREMENT INCOME FUND: Class A Shares........... 42 5 Amount............ $ 400 $ 48 Class B Shares........... 18 1 Amount............ $ 168 $ 10 Class C Shares........... 17 1 Amount............ $ 151 $ 10 Class Y Shares........... 11 1 Amount............ $ 100 $ 10 SHARES ISSUED FOR REINVESTED DIVIDENDS --------------------- 2006 2005 --------- -------- INTERNATIONAL SMALL COMPANY FUND: Class A Shares........... 331 200 Amount............ $ 4,265 $ 2,473 Class B Shares........... 57 32 Amount............ $ 717 $ 389 Class C Shares........... 119 91 Amount............ $ 1,465 $ 1,092 Class Y Shares........... 648 381 Amount............ $ 8,435 $ 4,758 MIDCAP FUND: Class A Shares........... 11,935 1,383 Amount............ $271,649 $31,412 Class B Shares........... 3,680 425 Amount............ $ 77,839 $ 9,150 Class C Shares........... 3,850 459 Amount............ $ 81,756 $ 9,908 Class Y Shares........... 945 89 Amount............ $ 22,565 $ 2,097 MIDCAP GROWTH FUND: Class A Shares........... -- -- Amount............ $ -- $ -- Class B Shares........... -- -- Amount............ $ -- $ -- Class C Shares........... -- -- Amount............ $ -- $ -- Class Y Shares........... -- -- Amount............ $ -- $ -- MIDCAP VALUE FUND: Class A Shares........... 2,207 1,692 Amount............ $ 27,216 $20,631 Class B Shares........... 486 368 Amount............ $ 5,770 $ 4,365 Class C Shares........... 490 405 Amount............ $ 5,822 $ 4,809 Class Y Shares........... 307 18 Amount............ $ 3,881 $ 221 MONEY MARKET FUND: Class A Shares........... 7,018 3,418 Amount............ $ 7,018 $ 3,418 Class B Shares........... 825 380 Amount............ $ 825 $ 380 Class C Shares........... 506 218 Amount............ $ 506 $ 218 Class Y Shares........... 680 324 Amount............ $ 680 $ 324 RETIREMENT INCOME FUND: Class A Shares........... 1 -- Amount............ $ 10 $ -- Class B Shares........... -- -- Amount............ $ 2 $ -- Class C Shares........... -- -- Amount............ $ 2 $ -- Class Y Shares........... -- -- Amount............ $ 3 $ -- SHARES REDEEMED ------------------------ 2006 2005 ----------- --------- INTERNATIONAL SMALL COMPANY FUND: Class A Shares........... (1,304) (763) Amount............ $ (19,359) $ (10,416) Class B Shares........... (160) (120) Amount............ $ (2,317) $ (1,585) Class C Shares........... (338) (263) Amount............ $ (4,665) $ (3,457) Class Y Shares........... (2,746) (406) Amount............ $ (42,341) $ (5,762) MIDCAP FUND: Class A Shares........... (10,197) (11,173) Amount............ $ (251,372) $(273,711) Class B Shares........... (3,372) (2,284) Amount............ $ (76,825) $ (53,587) Class C Shares........... (2,944) (3,030) Amount............ $ (67,347) $ (70,943) Class Y Shares........... (1,310) (375) Amount............ $ (34,176) $ (9,751) MIDCAP GROWTH FUND: Class A Shares........... -- -- Amount............ $ -- $ -- Class B Shares........... -- -- Amount............ $ -- $ -- Class C Shares........... -- -- Amount............ $ -- $ -- Class Y Shares........... -- -- Amount............ $ -- $ -- MIDCAP VALUE FUND: Class A Shares........... (2,750) (2,660) Amount............ $ (37,396) $ (34,854) Class B Shares........... (682) (651) Amount............ $ (8,913) $ (8,272) Class C Shares........... (765) (1,037) Amount............ $ (10,026) $ (13,160) Class Y Shares........... (1,681) (222) Amount............ $ (23,678) $ (3,096) MONEY MARKET FUND: Class A Shares........... (235,223) (247,710) Amount............ $ (235,223) $(247,710) Class B Shares........... (24,068) (33,953) Amount............ $ (24,068) $ (33,953) Class C Shares........... (25,547) (34,973) Amount............ $ (25,547) $ (34,973) Class Y Shares........... (8,239) (3,314) Amount............ $ (8,239) $ (3,314) RETIREMENT INCOME FUND: Class A Shares........... (4) -- Amount............ $ (40) $ -- Class B Shares........... (1) -- Amount............ $ (9) $ -- Class C Shares........... (1) -- Amount............ $ (5) $ -- Class Y Shares........... -- -- Amount............ $ -- $ -- NET INCREASE (DECREASE) OF SHARES ------------------------ 2006 2005 ---------- ---------- INTERNATIONAL SMALL COMPANY FUND: Class A Shares........... 1,877 665 Amount............ $ 27,750 $ 8,749 Class B Shares........... 322 157 Amount............ $ 4,607 $ 2,062 Class C Shares........... 273 148 Amount............ $ 3,908 $ 1,851 Class Y Shares........... 728 1,435 Amount............ $ 7,563 $ 18,650 MIDCAP FUND: Class A Shares........... 8,872 (4,605) Amount............ $ 196,666 $ (113,409) Class B Shares........... 511 (1,694) Amount............ $ 5,553 $ (40,629) Class C Shares........... 1,171 (2,408) Amount............ $ 20,240 $ (57,163) Class Y Shares........... 1,821 618 Amount............ $ 46,422 $ 15,529 MIDCAP GROWTH FUND: Class A Shares........... 972 -- Amount............ $ 9,727 $ -- Class B Shares........... 28 -- Amount............ $ 281 $ -- Class C Shares........... 34 -- Amount............ $ 341 $ -- Class Y Shares........... 10 -- Amount............ $ 100 $ -- MIDCAP VALUE FUND: Class A Shares........... (191) (603) Amount............ $ (5,373) $ (9,469) Class B Shares........... (127) (192) Amount............ $ (2,251) $ (2,748) Class C Shares........... (219) (571) Amount............ $ (3,498) $ (7,585) Class Y Shares........... (868) 2,752 Amount............ $ (12,709) $ 35,896 MONEY MARKET FUND: Class A Shares........... 25,284 (23,134) Amount............ $ 25,284 $ (23,134) Class B Shares........... (2,721) (15,120) Amount............ $ (2,721) $ (15,120) Class C Shares........... (1,793) (7,836) Amount............ $ (1,793) $ (7,836) Class Y Shares........... (2,486) 6,416 Amount............ $ (2,486) $ 6,416 RETIREMENT INCOME FUND: Class A Shares........... 39 5 Amount............ $ 370 $ 48 Class B Shares........... 17 1 Amount............ $ 161 $ 10 Class C Shares........... 16 1 Amount............ $ 148 $ 10 Class Y Shares........... 11 1 Amount............ $ 103 $ 10
328 --------------------------------------------------------------------------------
SHARES SOLD ------------------------ 2006 2005 ---------- ---------- SELECT MIDCAP GROWTH FUND: Class A Shares........... 951 1,559 Amount............ $ 10,472 $ 15,493 Class B Shares........... 176 245 Amount............ $ 1,938 $ 2,425 Class C Shares........... 246 183 Amount............ $ 2,724 $ 1,808 Class Y Shares........... 2,650 21 Amount............ $ 29,596 $ 209 SELECT MIDCAP VALUE FUND: Class A Shares........... 2,104 2,101 Amount............ $ 24,175 $ 21,632 Class B Shares........... 203 163 Amount............ $ 2,312 $ 1,726 Class C Shares........... 398 278 Amount............ $ 4,556 $ 2,976 Class Y Shares........... 1,564 50 Amount............ $ 18,010 $ 500 SELECT SMALLCAP GROWTH FUND: Class A Shares........... 187 545 Amount............ $ 1,982 $ 5,445 Class B Shares........... 37 21 Amount............ $ 395 $ 207 Class C Shares........... 57 21 Amount............ $ 599 $ 213 Class Y Shares........... 429 20 Amount............ $ 4,201 $ 200 SELECT SMALLCAP VALUE FUND: Class A Shares........... 1,449 -- Amount............ $ 14,491 $ -- Class B Shares........... 28 -- Amount............ $ 283 $ -- Class C Shares........... 26 -- Amount............ $ 256 $ -- Class Y Shares........... 140 -- Amount............ $ 1,496 $ -- SHORT DURATION FUND: Class A Shares........... 1,123 1,286 Amount............ $ 11,072 $ 12,820 Class B Shares........... 164 177 Amount............ $ 1,617 $ 1,762 Class C Shares........... 330 641 Amount............ $ 3,262 $ 6,407 Class Y Shares........... 4,024 5,565 Amount............ $ 39,655 $ 55,422 SMALL COMPANY FUND: Class A Shares........... 1,637 397 Amount............ $ 34,295 $ 6,768 Class B Shares........... 108 54 Amount............ $ 2,089 $ 830 Class C Shares........... 289 32 Amount............ $ 5,563 $ 505 Class I Shares........... 3 -- Amount............ $ 69 $ -- Class Y Shares........... 2,771 1,300 Amount............ $ 61,859 $ 21,676 SHARES ISSUED FOR REINVESTED DIVIDENDS --------------------- 2006 2005 --------- -------- SELECT MIDCAP GROWTH FUND: Class A Shares........... 14 -- Amount............ $ 148 $ -- Class B Shares........... 2 -- Amount............ $ 22 $ -- Class C Shares........... 2 -- Amount............ $ 17 $ -- Class Y Shares........... -- -- Amount............ $ 2 $ -- SELECT MIDCAP VALUE FUND: Class A Shares........... 48 -- Amount............ $ 520 $ -- Class B Shares........... 4 -- Amount............ $ 39 $ -- Class C Shares........... 7 -- Amount............ $ 70 $ -- Class Y Shares........... 1 -- Amount............ $ 15 $ -- SELECT SMALLCAP GROWTH FUND: Class A Shares........... -- -- Amount............ $ -- $ -- Class B Shares........... -- -- Amount............ $ -- $ -- Class C Shares........... -- -- Amount............ $ -- $ -- Class Y Shares........... -- -- Amount............ $ -- $ -- SELECT SMALLCAP VALUE FUND: Class A Shares........... -- -- Amount............ $ -- $ -- Class B Shares........... -- -- Amount............ $ -- $ -- Class C Shares........... -- -- Amount............ $ -- $ -- Class Y Shares........... -- -- Amount............ $ -- $ -- SHORT DURATION FUND: Class A Shares........... 79 93 Amount............ $ 775 $ 929 Class B Shares........... 18 21 Amount............ $ 180 $ 207 Class C Shares........... 40 55 Amount............ $ 392 $ 543 Class Y Shares........... 323 226 Amount............ $ 3,180 $ 2,244 SMALL COMPANY FUND: Class A Shares........... -- -- Amount............ $ -- $ -- Class B Shares........... -- -- Amount............ $ -- $ -- Class C Shares........... -- -- Amount............ $ -- $ -- Class I Shares........... -- -- Amount............ $ -- $ -- Class Y Shares........... -- -- Amount............ $ -- $ -- SHARES REDEEMED ------------------------ 2006 2005 ----------- --------- SELECT MIDCAP GROWTH FUND: Class A Shares........... (356) (81) Amount............ $ (3,864) $ (821) Class B Shares........... (77) (12) Amount............ $ (831) $ (117) Class C Shares........... (74) (10) Amount............ $ (766) $ (100) Class Y Shares........... (130) -- Amount............ $ (1,447) $ (3) SELECT MIDCAP VALUE FUND: Class A Shares........... (367) (23) Amount............ $ (4,268) $ (253) Class B Shares........... (29) (4) Amount............ $ (335) $ (38) Class C Shares........... (69) (10) Amount............ $ (798) $ (104) Class Y Shares........... -- -- Amount............ $ (29) $ -- SELECT SMALLCAP GROWTH FUND: Class A Shares........... (40) -- Amount............ $ (405) $ -- Class B Shares........... (8) -- Amount............ $ (78) $ -- Class C Shares........... (14) -- Amount............ $ (144) $ -- Class Y Shares........... -- -- Amount............ $ -- $ -- SELECT SMALLCAP VALUE FUND: Class A Shares........... -- -- Amount............ $ -- $ -- Class B Shares........... -- -- Amount............ $ -- $ -- Class C Shares........... -- -- Amount............ $ -- $ -- Class Y Shares........... -- -- Amount............ $ -- $ -- SHORT DURATION FUND: Class A Shares........... (1,466) (2,297) Amount............ $ (14,451) $ (22,878) Class B Shares........... (394) (520) Amount............ $ (3,886) $ (5,181) Class C Shares........... (1,249) (1,830) Amount............ $ (12,309) $ (18,239) Class Y Shares........... (2,384) (533) Amount............ $ (23,454) $ (5,283) SMALL COMPANY FUND: Class A Shares........... (1,269) (2,105) Amount............ $ (26,637) $ (35,226) Class B Shares........... (797) (883) Amount............ $ (15,616) $ (13,912) Class C Shares........... (489) (921) Amount............ $ (9,564) $ (14,243) Class I Shares........... -- -- Amount............ $ -- $ -- Class Y Shares........... (223) (61) Amount............ $ (4,791) $ (1,057) NET INCREASE (DECREASE) OF SHARES ------------------------ 2006 2005 ---------- ---------- SELECT MIDCAP GROWTH FUND: Class A Shares........... 609 1,478 Amount............ $ 6,756 $ 14,672 Class B Shares........... 101 233 Amount............ $ 1,129 $ 2,308 Class C Shares........... 174 173 Amount............ $ 1,975 $ 1,708 Class Y Shares........... 2,520 21 Amount............ $ 28,151 $ 206 SELECT MIDCAP VALUE FUND: Class A Shares........... 1,785 2,078 Amount............ $ 20,427 $ 21,379 Class B Shares........... 178 159 Amount............ $ 2,016 $ 1,688 Class C Shares........... 336 268 Amount............ $ 3,828 $ 2,872 Class Y Shares........... 1,565 50 Amount............ $ 17,996 $ 500 SELECT SMALLCAP GROWTH FUND: Class A Shares........... 147 545 Amount............ $ 1,577 $ 5,445 Class B Shares........... 29 21 Amount............ $ 317 $ 207 Class C Shares........... 43 21 Amount............ $ 455 $ 213 Class Y Shares........... 429 20 Amount............ $ 4,201 $ 200 SELECT SMALLCAP VALUE FUND: Class A Shares........... 1,449 -- Amount............ $ 14,491 $ -- Class B Shares........... 28 -- Amount............ $ 283 $ -- Class C Shares........... 26 -- Amount............ $ 256 $ -- Class Y Shares........... 140 -- Amount............ $ 1,496 $ -- SHORT DURATION FUND: Class A Shares........... (264) (918) Amount............ $ (2,604) $ (9,129) Class B Shares........... (212) (322) Amount............ $ (2,089) $ (3,212) Class C Shares........... (879) (1,134) Amount............ $ (8,655) $ (11,289) Class Y Shares........... 1,963 5,258 Amount............ $ 19,381 $ 52,383 SMALL COMPANY FUND: Class A Shares........... 368 (1,708) Amount............ $ 7,658 $ (28,458) Class B Shares........... (689) (829) Amount............ $ (13,527) $ (13,082) Class C Shares........... (200) (889) Amount............ $ (4,001) $ (13,738) Class I Shares........... 3 -- Amount............ $ 69 $ -- Class Y Shares........... 2,548 1,239 Amount............ $ 57,068 $ 20,619
329 THE HARTFORD MUTUAL FUNDS, INC. AND THE HARTFORD MUTUAL FUNDS II, INC. NOTES TO FINANCIAL STATEMENTS -- (CONTINUED) OCTOBER 31, 2006 (000'S OMITTED) --------------------------------------------------------------------------------
SHARES SOLD ------------------------ 2006 2005 ---------- ---------- SMALLCAP GROWTH FUND: Class A Shares........... 5,972 1,208 Amount............ $ 182,337 $ 33,404 Class B Shares........... 195 201 Amount............ $ 5,420 $ 4,983 Class C Shares........... 464 297 Amount............ $ 12,901 $ 7,553 Class H Shares........... 31 42 Amount............ $ 869 $ 1,049 Class I Shares........... 8 -- Amount............ $ 235 $ -- Class L Shares........... 216 295 Amount............ $ 6,572 $ 8,024 Class M Shares........... 34 42 Amount............ $ 959 $ 1,027 Class N Shares........... 13 16 Amount............ $ 334 $ 406 Class Y Shares........... 1,728 1,738 Amount............ $ 54,996 $ 47,949 STOCK FUND: Class A Shares........... 3,612 3,320 Amount............ $ 71,142 $ 58,908 Class B Shares........... 402 623 Amount............ $ 7,405 $ 10,341 Class C Shares........... 294 489 Amount............ $ 5,460 $ 8,221 Class Y Shares........... 823 1,226 Amount............ $ 16,857 $ 22,574 TARGET RETIREMENT 2010 FUND: Class A Shares........... 165 1 Amount............ $ 1,556 $ 12 Class B Shares........... 22 1 Amount............ $ 211 $ 10 Class C Shares........... 48 1 Amount............ $ 460 $ 10 Class Y Shares........... 13 1 Amount............ $ 120 $ 10 TARGET RETIREMENT 2020 FUND: Class A Shares........... 202 15 Amount............ $ 2,052 $ 144 Class B Shares........... 27 1 Amount............ $ 271 $ 10 Class C Shares........... 34 1 Amount............ $ 339 $ 10 Class Y Shares........... -- 1 Amount............ $ -- $ 10 TARGET RETIREMENT 2030 FUND: Class A Shares........... 201 1 Amount............ $ 1,815 $ 10 Class B Shares........... 33 1 Amount............ $ 294 $ 10 Class C Shares........... 8 1 Amount............ $ 68 $ 10 Class Y Shares........... 2 1 Amount............ $ 20 $ 10 SHARES ISSUED FOR REINVESTED DIVIDENDS --------------------- 2006 2005 --------- -------- SMALLCAP GROWTH FUND: Class A Shares........... -- -- Amount............ $ -- $ -- Class B Shares........... -- -- Amount............ $ -- $ -- Class C Shares........... -- -- Amount............ $ -- $ -- Class H Shares........... -- -- Amount............ $ -- $ -- Class I Shares........... -- -- Amount............ $ -- $ -- Class L Shares........... -- -- Amount............ $ -- $ -- Class M Shares........... -- -- Amount............ $ -- $ -- Class N Shares........... -- -- Amount............ $ -- $ -- Class Y Shares........... -- -- Amount............ $ -- $ -- STOCK FUND: Class A Shares........... 77 310 Amount............ $ 1,495 $ 5,503 Class B Shares........... -- -- Amount............ $ -- $ -- Class C Shares........... -- -- Amount............ $ -- $ -- Class Y Shares........... 38 54 Amount............ $ 772 $ 1,005 TARGET RETIREMENT 2010 FUND: Class A Shares........... 2 -- Amount............ $ 16 $ -- Class B Shares........... -- -- Amount............ $ 3 $ -- Class C Shares........... -- -- Amount............ $ 2 $ -- Class Y Shares........... -- -- Amount............ $ 2 $ -- TARGET RETIREMENT 2020 FUND: Class A Shares........... 2 -- Amount............ $ 15 $ -- Class B Shares........... -- -- Amount............ $ 1 $ -- Class C Shares........... -- -- Amount............ $ 1 $ -- Class Y Shares........... -- -- Amount............ $ -- $ -- TARGET RETIREMENT 2030 FUND: Class A Shares........... -- -- Amount............ $ 2 $ -- Class B Shares........... -- -- Amount............ $ 2 $ -- Class C Shares........... -- -- Amount............ $ 1 $ -- Class Y Shares........... -- -- Amount............ $ 1 $ -- SHARES REDEEMED ------------------------ 2006 2005 ----------- --------- SMALLCAP GROWTH FUND: Class A Shares........... (1,014) (609) Amount............ $ (30,462) $ (16,505) Class B Shares........... (151) (99) Amount............ $ (4,076) $ (2,439) Class C Shares........... (220) (137) Amount............ $ (5,949) $ (3,371) Class H Shares........... (143) (220) Amount............ $ (3,910) $ (5,451) Class I Shares........... -- -- Amount............ $ -- $ -- Class L Shares........... (650) (740) Amount............ $ (19,895) $ (20,261) Class M Shares........... (124) (159) Amount............ $ (3,432) $ (3,946) Class N Shares........... (38) (56) Amount............ $ (1,038) $ (1,389) Class Y Shares........... (297) (25) Amount............ $ (9,108) $ (725) STOCK FUND: Class A Shares........... (10,693) (20,910) Amount............ $ (210,028) $(371,998) Class B Shares........... (5,142) (6,244) Amount............ $ (94,598) $(104,388) Class C Shares........... (2,633) (6,146) Amount............ $ (48,766) $(102,989) Class Y Shares........... (467) (300) Amount............ $ (9,646) $ (5,539) TARGET RETIREMENT 2010 FUND: Class A Shares........... -- -- Amount............ $ -- $ -- Class B Shares........... -- -- Amount............ $ (1) $ -- Class C Shares........... -- -- Amount............ $ -- $ -- Class Y Shares........... -- -- Amount............ $ -- $ -- TARGET RETIREMENT 2020 FUND: Class A Shares........... (15) -- Amount............ $ (148) $ -- Class B Shares........... -- -- Amount............ $ (2) $ -- Class C Shares........... (3) -- Amount............ $ (27) $ -- Class Y Shares........... -- -- Amount............ $ -- $ -- TARGET RETIREMENT 2030 FUND: Class A Shares........... (4) -- Amount............ $ (33) $ -- Class B Shares........... (1) -- Amount............ $ (13) $ -- Class C Shares........... -- -- Amount............ $ -- $ -- Class Y Shares........... -- -- Amount............ $ -- $ -- NET INCREASE (DECREASE) OF SHARES ------------------------ 2006 2005 ---------- ---------- SMALLCAP GROWTH FUND: Class A Shares........... 4,958 599 Amount............ $ 151,875 $ 16,899 Class B Shares........... 44 102 Amount............ $ 1,344 $ 2,544 Class C Shares........... 244 160 Amount............ $ 6,952 $ 4,182 Class H Shares........... (112) (178) Amount............ $ (3,041) $ (4,402) Class I Shares........... 8 -- Amount............ $ 235 $ -- Class L Shares........... (434) (445) Amount............ $ (13,323) $ (12,237) Class M Shares........... (90) (117) Amount............ $ (2,473) $ (2,919) Class N Shares........... (25) (40) Amount............ $ (704) $ (983) Class Y Shares........... 1,431 1,713 Amount............ $ 45,888 $ 47,224 STOCK FUND: Class A Shares........... (7,004) (17,280) Amount............ $ (137,391) $ (307,587) Class B Shares........... (4,740) (5,621) Amount............ $ (87,193) $ (94,047) Class C Shares........... (2,339) (5,657) Amount............ $ (43,306) $ (94,768) Class Y Shares........... 394 980 Amount............ $ 7,983 $ 18,040 TARGET RETIREMENT 2010 FUND: Class A Shares........... 167 1 Amount............ $ 1,572 $ 12 Class B Shares........... 22 1 Amount............ $ 213 $ 10 Class C Shares........... 48 1 Amount............ $ 462 $ 10 Class Y Shares........... 13 1 Amount............ $ 122 $ 10 TARGET RETIREMENT 2020 FUND: Class A Shares........... 189 15 Amount............ $ 1,919 $ 144 Class B Shares........... 27 1 Amount............ $ 270 $ 10 Class C Shares........... 31 1 Amount............ $ 313 $ 10 Class Y Shares........... -- 1 Amount............ $ -- $ 10 TARGET RETIREMENT 2030 FUND: Class A Shares........... 197 1 Amount............ $ 1,784 $ 10 Class B Shares........... 32 1 Amount............ $ 283 $ 10 Class C Shares........... 8 1 Amount............ $ 69 $ 10 Class Y Shares........... 2 1 Amount............ $ 21 $ 10
330 --------------------------------------------------------------------------------
SHARES SOLD ------------------------ 2006 2005 ---------- ---------- TAX-FREE CALIFORNIA FUND: Class A Shares........... 904 230 Amount............ $ 9,421 $ 2,382 Class B Shares........... 44 33 Amount............ $ 456 $ 336 Class C Shares........... 175 52 Amount............ $ 1,828 $ 534 TAX-FREE MINNESOTA FUND: Class A Shares........... 165 216 Amount............ $ 1,689 $ 2,246 Class B Shares........... 6 28 Amount............ $ 59 $ 288 Class C Shares........... 4 18 Amount............ $ 44 $ 186 Class E Shares........... 23 15 Amount............ $ 236 $ 158 Class H Shares........... -- -- Amount............ $ -- -- Class L Shares........... 2 25 Amount............ $ 23 $ 265 Class M Shares........... 1 1 Amount............ $ 4 $ 18 Class N Shares........... 3 2 Amount............ $ 28 $ 10 Class Y Shares........... -- 1 Amount............ $ -- $ 9 TAX-FREE NATIONAL FUND: Class A Shares........... 3,023 1,548 Amount............ $ 33,711 $ 17,443 Class B Shares........... 145 162 Amount............ $ 1,607 $ 1,804 Class C Shares........... 562 320 Amount............ $ 6,249 $ 3,583 Class E Shares........... 49 61 Amount............ $ 549 $ 686 Class H Shares........... -- -- Amount............ $ 1 -- Class L Shares........... 34 57 Amount............ $ 381 $ 641 Class M Shares........... -- 2 Amount............ $ 2 $ 19 Class N Shares........... -- 1 Amount............ $ 5 -- Class Y Shares........... -- 1 Amount............ $ -- $ 9 TAX-FREE NEW YORK FUND: Class A Shares........... 17 52 Amount............ $ 172 $ 545 Class B Shares........... 4 20 Amount............ $ 39 $ 200 Class C Shares........... 1 73 Amount............ $ 8 $ 769 SHARES ISSUED FOR REINVESTED DIVIDENDS --------------------- 2006 2005 --------- -------- TAX-FREE CALIFORNIA FUND: Class A Shares........... 62 48 Amount............ $ 642 $ 495 Class B Shares........... 2 2 Amount............ $ 27 $ 25 Class C Shares........... 6 4 Amount............ $ 60 $ 43 TAX-FREE MINNESOTA FUND: Class A Shares........... 21 16 Amount............ $ 221 $ 162 Class B Shares........... 2 2 Amount............ $ 22 $ 20 Class C Shares........... 1 1 Amount............ $ 13 $ 11 Class E Shares........... 75 74 Amount............ $ 770 $ 770 Class H Shares........... -- -- Amount............ $ 4 $ 4 Class L Shares........... 9 9 Amount............ $ 90 $ 91 Class M Shares........... 1 -- Amount............ $ 4 $ 4 Class N Shares........... 1 -- Amount............ $ 5 $ 4 Class Y Shares........... -- -- Amount............ $ -- -- TAX-FREE NATIONAL FUND: Class A Shares........... 195 121 Amount............ $ 2,163 $ 1,350 Class B Shares........... 20 15 Amount............ $ 216 $ 168 Class C Shares........... 26 13 Amount............ $ 285 $ 149 Class E Shares........... 89 79 Amount............ $ 993 $ 886 Class H Shares........... 1 1 Amount............ $ 7 $ 9 Class L Shares........... 26 20 Amount............ $ 284 $ 226 Class M Shares........... 3 3 Amount............ $ 35 $ 30 Class N Shares........... 1 1 Amount............ $ 16 $ 16 Class Y Shares........... -- -- Amount............ $ 1 -- TAX-FREE NEW YORK FUND: Class A Shares........... 42 37 Amount............ $ 431 $ 387 Class B Shares........... 5 4 Amount............ $ 52 $ 43 Class C Shares........... 7 5 Amount............ $ 72 $ 52 SHARES REDEEMED ------------------------ 2006 2005 ----------- --------- TAX-FREE CALIFORNIA FUND: Class A Shares........... (128) (204) Amount............ $ (1,327) $ (2,114) Class B Shares........... (24) (7) Amount............ $ (251) $ (68) Class C Shares........... (44) (8) Amount............ $ (452) $ (85) TAX-FREE MINNESOTA FUND: Class A Shares........... (67) (100) Amount............ $ (684) $ (1,039) Class B Shares........... (10) (12) Amount............ $ (100) $ (122) Class C Shares........... (6) (9) Amount............ $ (68) $ (92) Class E Shares........... (314) (186) Amount............ $ (3,219) $ (1,948) Class H Shares........... -- -- Amount............ $ (5) $ (1) Class L Shares........... (38) (16) Amount............ $ (386) $ (171) Class M Shares........... (2) (9) Amount............ $ (16) $ (97) Class N Shares........... (4) (3) Amount............ $ (37) $ (27) Class Y Shares........... -- -- Amount............ $ -- $ -- TAX-FREE NATIONAL FUND: Class A Shares........... (1,027) (658) Amount............ $ (11,431) $ (7,390) Class B Shares........... (189) (113) Amount............ $ (2,090) $ (1,259) Class C Shares........... (213) (314) Amount............ $ (2,371) $ (3,508) Class E Shares........... (368) (216) Amount............ $ (4,112) $ (2,420) Class H Shares........... (10) (33) Amount............ $ (111) $ (369) Class L Shares........... (104) (47) Amount............ $ (1,157) $ (528) Class M Shares........... (9) (13) Amount............ $ (97) $ (140) Class N Shares........... (13) (6) Amount............ $ (148) $ (64) Class Y Shares........... -- -- Amount............ $ -- $ -- TAX-FREE NEW YORK FUND: Class A Shares........... (82) (16) Amount............ $ (846) $ (169) Class B Shares........... (11) -- Amount............ $ (113) $ -- Class C Shares........... (31) (8) Amount............ $ (317) $ (88) NET INCREASE (DECREASE) OF SHARES ------------------------ 2006 2005 ---------- ---------- TAX-FREE CALIFORNIA FUND: Class A Shares........... 838 74 Amount............ $ 8,736 $ 763 Class B Shares........... 22 28 Amount............ $ 232 $ 293 Class C Shares........... 137 48 Amount............ $ 1,436 $ 492 TAX-FREE MINNESOTA FUND: Class A Shares........... 119 132 Amount............ $ 1,226 $ 1,369 Class B Shares........... (2) 18 Amount............ $ (19) $ 186 Class C Shares........... (1) 10 Amount............ $ (11) $ 105 Class E Shares........... (216) (97) Amount............ $ (2,213) $ (1,020) Class H Shares........... -- -- Amount............ $ (1) $ 3 Class L Shares........... (27) 18 Amount............ $ (273) $ 185 Class M Shares........... -- (8) Amount............ $ (8) $ (75) Class N Shares........... -- (1) Amount............ $ (4) $ (13) Class Y Shares........... -- 1 Amount............ $ -- $ 9 TAX-FREE NATIONAL FUND: Class A Shares........... 2,191 1,011 Amount............ $ 24,443 $ 11,403 Class B Shares........... (24) 64 Amount............ $ (267) $ 713 Class C Shares........... 375 19 Amount............ $ 4,163 $ 224 Class E Shares........... (230) (76) Amount............ $ (2,570) $ (848) Class H Shares........... (9) (32) Amount............ $ (103) $ (360) Class L Shares........... (44) 30 Amount............ $ (492) $ 339 Class M Shares........... (6) (8) Amount............ $ (60) $ (91) Class N Shares........... (12) (4) Amount............ $ (127) $ (48) Class Y Shares........... -- 1 Amount............ $ 1 $ 9 TAX-FREE NEW YORK FUND: Class A Shares........... (23) 73 Amount............ $ (243) $ 763 Class B Shares........... (2) 24 Amount............ $ (22) $ 244 Class C Shares........... (23) 70 Amount............ $ (237) $ 733
331 THE HARTFORD MUTUAL FUNDS, INC. AND THE HARTFORD MUTUAL FUNDS II, INC. NOTES TO FINANCIAL STATEMENTS -- (CONTINUED) OCTOBER 31, 2006 (000'S OMITTED) --------------------------------------------------------------------------------
SHARES SOLD ------------------------ 2006 2005 ---------- ---------- TOTAL RETURN BOND FUND: Class A Shares........... 18,327 7,536 Amount............ $ 192,225 $ 81,793 Class B Shares........... 1,870 1,007 Amount............ $ 19,502 $ 10,886 Class C Shares........... 2,136 1,024 Amount............ $ 22,448 $ 11,119 Class I Shares........... 4 -- Amount............ $ 38 $ -- Class Y Shares........... 8,685 8,276 Amount............ $ 92,401 $ 90,740 U.S. GOVERNMENT SECURITIES FUND: Class A Shares........... 1,370 1,580 Amount............ $ 12,608 $ 15,082 Class B Shares........... 248 306 Amount............ $ 2,261 $ 2,904 Class C Shares........... 391 392 Amount............ $ 3,580 $ 3,723 Class E Shares........... 98 93 Amount............ $ 903 $ 878 Class H Shares........... 5 14 Amount............ $ 49 $ 126 Class L Shares........... 122 158 Amount............ $ 1,128 $ 1,513 Class M Shares........... 18 20 Amount............ $ 154 $ 199 Class N Shares........... 3 5 Amount............ $ 27 $ 46 Class Y Shares........... 11 961 Amount............ $ 100 $ 9,199 VALUE FUND: Class A Shares........... 1,313 996 Amount............ $ 15,756 $ 10,434 Class B Shares........... 168 201 Amount............ $ 1,990 $ 2,069 Class C Shares........... 199 114 Amount............ $ 2,382 $ 1,179 Class Y Shares........... 2,346 3,361 Amount............ $ 28,384 $ 34,573 VALUE OPPORTUNITIES FUND: Class A Shares........... 2,747 3,015 Amount............ $ 46,259 $ 47,123 Class B Shares........... 338 651 Amount............ $ 5,323 $ 9,516 Class C Shares........... 663 610 Amount............ $ 10,489 $ 9,022 Class H Shares........... 10 19 Amount............ $ 169 $ 267 Class I Shares........... 1 -- Amount............ $ 11 $ -- Class L Shares........... 209 203 Amount............ $ 3,536 $ 3,161 Class M Shares........... 24 37 Amount............ $ 379 $ 541 Class N Shares........... 4 6 Amount............ $ 60 $ 99 Class Y Shares........... 962 5,441 Amount............ $ 16,358 $ 84,846 SHARES ISSUED FOR REINVESTED DIVIDENDS --------------------- 2006 2005 --------- -------- TOTAL RETURN BOND FUND: Class A Shares........... 1,485 1,081 Amount............ $ 15,562 $11,696 Class B Shares........... 254 235 Amount............ $ 2,646 $ 2,529 Class C Shares........... 222 208 Amount............ $ 2,326 $ 2,255 Class I Shares........... -- -- Amount............ $ -- $ -- Class Y Shares........... 1,147 614 Amount............ $ 12,137 $ 6,705 U.S. GOVERNMENT SECURITIES FUND: Class A Shares........... 201 200 Amount............ $ 1,845 $ 1,905 Class B Shares........... 69 77 Amount............ $ 635 $ 729 Class C Shares........... 32 37 Amount............ $ 293 $ 355 Class E Shares........... 396 408 Amount............ $ 3,626 $ 3,875 Class H Shares........... 9 11 Amount............ $ 84 $ 107 Class L Shares........... 136 136 Amount............ $ 1,246 $ 1,291 Class M Shares........... 9 10 Amount............ $ 87 $ 100 Class N Shares........... 3 3 Amount............ $ 29 $ 33 Class Y Shares........... 13 31 Amount............ $ 117 $ 292 VALUE FUND: Class A Shares........... 41 20 Amount............ $ 458 $ 204 Class B Shares........... -- -- Amount............ $ -- $ -- Class C Shares........... -- -- Amount............ $ -- $ -- Class Y Shares........... 70 32 Amount............ $ 780 $ 328 VALUE OPPORTUNITIES FUND: Class A Shares........... 133 -- Amount............ $ 2,056 $ -- Class B Shares........... 31 -- Amount............ $ 442 $ -- Class C Shares........... 28 -- Amount............ $ 399 $ -- Class H Shares........... 11 -- Amount............ $ 156 $ -- Class I Shares........... -- -- Amount............ $ -- $ -- Class L Shares........... 58 -- Amount............ $ 898 $ -- Class M Shares........... 17 -- Amount............ $ 250 $ -- Class N Shares........... 5 -- Amount............ $ 68 $ -- Class Y Shares........... 215 -- Amount............ $ 3,392 $ -- SHARES REDEEMED ------------------------ 2006 2005 ----------- --------- TOTAL RETURN BOND FUND: Class A Shares........... (8,299) (6,575) Amount............ $ (87,044) $ (71,365) Class B Shares........... (2,249) (2,001) Amount............ $ (23,467) $ (21,616) Class C Shares........... (2,233) (2,429) Amount............ $ (23,447) $ (26,396) Class I Shares........... -- -- Amount............ $ -- $ -- Class Y Shares........... (734) (521) Amount............ $ (7,756) $ (5,670) U.S. GOVERNMENT SECURITIES FUND: Class A Shares........... (1,674) (2,238) Amount............ $ (15,426) $ (21,353) Class B Shares........... (758) (816) Amount............ $ (6,954) $ (7,742) Class C Shares........... (406) (839) Amount............ $ (3,721) $ (7,948) Class E Shares........... (2,109) (1,606) Amount............ $ (19,389) $ (15,284) Class H Shares........... (99) (138) Amount............ $ (906) $ (1,311) Class L Shares........... (674) (548) Amount............ $ (6,198) $ (5,229) Class M Shares........... (95) (118) Amount............ $ (871) $ (1,129) Class N Shares........... (22) (27) Amount............ $ (205) $ (258) Class Y Shares........... (1,005) -- Amount............ $ (9,347) $ -- VALUE FUND: Class A Shares........... (1,075) (992) Amount............ $ (12,873) $ (10,429) Class B Shares........... (177) (183) Amount............ $ (2,065) $ (1,890) Class C Shares........... (144) (279) Amount............ $ (1,687) $ (2,885) Class Y Shares........... (2,417) (12) Amount............ $ (27,945) $ (130) VALUE OPPORTUNITIES FUND: Class A Shares........... (1,047) (501) Amount............ $ (17,492) $ (7,840) Class B Shares........... (221) (150) Amount............ $ (3,466) $ (2,186) Class C Shares........... (273) (124) Amount............ $ (4,253) $ (1,815) Class H Shares........... (126) (139) Amount............ $ (1,982) $ (2,018) Class I Shares........... -- -- Amount............ $ -- $ -- Class L Shares........... (240) (254) Amount............ $ (4,067) $ (3,944) Class M Shares........... (139) (141) Amount............ $ (2,199) $ (2,037) Class N Shares........... (23) (31) Amount............ $ (362) $ (455) Class Y Shares........... (1,707) (56) Amount............ $ (29,124) $ (888) NET INCREASE (DECREASE) OF SHARES ------------------------ 2006 2005 ---------- ---------- TOTAL RETURN BOND FUND: Class A Shares........... 11,513 2,042 Amount............ $ 120,743 $ 22,124 Class B Shares........... (125) (759) Amount............ $ (1,319) $ (8,201) Class C Shares........... 125 (1,197) Amount............ $ 1,327 $ (13,022) Class I Shares........... 4 -- Amount............ $ 38 $ -- Class Y Shares........... 9,098 8,369 Amount............ $ 96,782 $ 91,775 U.S. GOVERNMENT SECURITIES FUND: Class A Shares........... (103) (458) Amount............ $ (973) $ (4,366) Class B Shares........... (441) (433) Amount............ $ (4,058) $ (4,109) Class C Shares........... 17 (410) Amount............ $ 152 $ (3,870) Class E Shares........... (1,615) (1,105) Amount............ $ (14,860) $ (10,531) Class H Shares........... (85) (113) Amount............ $ (773) $ (1,078) Class L Shares........... (416) (254) Amount............ $ (3,824) $ (2,425) Class M Shares........... (68) (88) Amount............ $ (630) $ (830) Class N Shares........... (16) (19) Amount............ $ (149) $ (179) Class Y Shares........... (981) 992 Amount............ $ (9,130) $ 9,491 VALUE FUND: Class A Shares........... 279 24 Amount............ $ 3,341 $ 209 Class B Shares........... (9) 18 Amount............ $ (75) $ 179 Class C Shares........... 55 (165) Amount............ $ 695 $ (1,706) Class Y Shares........... (1) 3,381 Amount............ $ 1,219 $ 34,771 VALUE OPPORTUNITIES FUND: Class A Shares........... 1,833 2,514 Amount............ $ 30,823 $ 39,283 Class B Shares........... 148 501 Amount............ $ 2,299 $ 7,330 Class C Shares........... 418 486 Amount............ $ 6,635 $ 7,207 Class H Shares........... (105) (120) Amount............ $ (1,657) $ (1,751) Class I Shares........... 1 -- Amount............ $ 11 $ -- Class L Shares........... 27 (51) Amount............ $ 367 $ (783) Class M Shares........... (98) (104) Amount............ $ (1,570) $ (1,496) Class N Shares........... (14) (25) Amount............ $ (234) $ (356) Class Y Shares........... (530) 5,385 Amount............ $ (9,374) $ 83,958
332 -------------------------------------------------------------------------------- The following reflects the conversion of Class B Shares into Class A Shares (reflected as Class A Shares issued and Class B shares redeemed within the previous table) and Classes H and M Shares into Class L Shares (reflected as Class L shares issued and Classes H and M shares redeemed within the previous table) for the periods ended October 31, 2006 and October 31, 2005:
FOR THE YEAR ENDED FOR THE YEAR ENDED OCTOBER 31, 2006 OCTOBER 31, 2005 ------------------- ------------------- FUND SHARES DOLLARS SHARES DOLLARS ---- ------- -------- ------- -------- Advisers Fund -- Class B to Class A......................... 1,937 $31,068 757 $11,443 Aggressive Growth Allocation Fund -- Class B to Class A..... 16 194 1 12 Balanced Allocation Fund -- Class B to Class A.............. 63 728 24 253 Capital Appreciation Fund -- Class B to Class A............. 3,083 114 2,593 84,937 Capital Appreciation II Fund -- Class B to Class A.......... 26 328 3 31 Conservative Allocation Fund -- Class B to Class A.......... 5 58 5 57 Disciplined Equity Fund -- Class B to Class A............... 142 1,768 135 1,506 Dividend And Growth Fund -- Class B to Class A.............. 990 20 471 8,794 Equity Income Fund -- Class B to Class A.................... 28 363 10 125 Floating Rate Fund -- Class B to Class A.................... 6 60 -- 1 Focus Fund -- Class B to Class A............................ 6 62 12 112 Global Communications Fund -- Class B to Class A............ 13 102 10 68 Global Financial Services Fund Class B to Class A........... 4 54 -- -- Global Health Fund -- Class B to Class A.................... 44 750 14 215 Global Leaders Fund -- Class B to Class A................... 200 3,702 295 4,722 Global Technology Fund -- Class B to Class A................ 22 119 15 67 Growth Allocation Fund -- Class B to Class A................ 54 654 1 14 Growth Fund -- Class B to Class A........................... 22 390 12 189 Growth Fund -- Class H to Class L........................... 187 3,425 202 3,085 Growth Fund -- Class M to Class L........................... 132 2,416 103 1,579 Growth Opportunities Fund -- Class B to Class A............. 16 465 5 129 Growth Opportunities Fund -- Class H to Class L............. 188 5,397 233 5,301 Growth Opportunities Fund -- Class M to Class L............. 74 2,149 100 2,285 High Yield Fund -- Class B to Class A....................... 448 3,511 515 4,114 Income Allocation Fund -- Class B to Class A................ 4 38 -- -- Income Fund -- Class B to Class A........................... 11 110 6 58 Inflation Plus Fund -- Class B to Class A................... 19 199 41 448 International Capital Appreciation Fund -- Class B to Class A......................................................... 29 394 13 158 International Opportunities Fund -- Class B to Class A...... 109 1,622 127 1,548 International Small Company Fund -- Class B to Class A...... 34 517 10 127 MidCap Fund -- Class B to Class A........................... 401 9,873 99 2,335 MidCap Value Fund -- Class B to Class A..................... 54 745 21 261 Money Market Fund -- Class B to Class A..................... 1,633 1,633 1,497 1,497 Select MidCap Growth Fund -- Class B to Class A............. 4 46 1 8 Select MidCap Value Fund -- Class B to Class A.............. 1 17 -- -- Short Duration Fund -- Class B to Class A................... 18 181 18 175 SmallCap Growth Fund -- Class B to Class A.................. 7 217 7 184 SmallCap Growth Fund -- Class H to Class L.................. 68 2,066 100 2,463 SmallCap Growth Fund -- Class M to Class L.................. 37 1,131 68 1,710 Small Company Fund -- Class B to Class A.................... 161 3,405 166 2,765 Stock Fund -- Class B to Class A............................ 1,125 22,176 571 9,772 Tax-Free California Fund -- Class B to Class A.............. 2 22 4 38 Tax-Free Minnesota Fund -- Class H to Class L............... -- 1 -- 1 Tax-Free Minnesota Fund -- Class M to Class L............... 1 14 9 97 Tax-Free National Fund -- Class B to Class A................ 9 105 12 134 Tax-Free National Fund -- Class H to Class L................ 5 59 16 182 Tax-Free National Fund -- Class M to Class L................ 7 83 7 74 Total Return Bond Fund -- Class B to Class A................ 224 2,354 91 976 U.S. Government Securities Fund -- Class B to Class A....... 60 558 49 464 U.S. Government Securities Fund -- Class H to Class L....... 41 375 55 518 U.S. Government Securities Fund -- Class M to Class L....... 26 244 22 205 Value Fund -- Class B to Class A............................ 8 88 4 40 Value Opportunities Fund -- Class B to Class A.............. 25 431 7 110 Value Opportunities Fund -- Class H to Class L.............. 71 1,190 86 1,256 Value Opportunities Fund -- Class M to Class L.............. 72 1,228 61 891
333 THE HARTFORD MUTUAL FUNDS, INC. AND THE HARTFORD MUTUAL FUNDS II, INC. NOTES TO FINANCIAL STATEMENTS -- (CONTINUED) OCTOBER 31, 2006 (000'S OMITTED) -------------------------------------------------------------------------------- 7. LINE OF CREDIT: The Funds participate in a $650,000 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 year ended October 31, 2006, the Funds did not have any borrowings under this facility. 8. SUBSEQUENT EVENT: On November 8, 2006, the Securities and Exchange Commission ("SEC") issued an Order setting forth the terms of a settlement reached with three subsidiaries of The Hartford that resolves the SEC's Division of Enforcement's investigation of aspects of The Hartford's variable annuity and mutual fund operations related to directed brokerage and revenue sharing. Under the terms of the settlement, The Hartford will pay a total of $15.4 million to The Hartford Mutual Funds in the amounts indicated below. These amounts were recorded on the books of the Funds on November 8, 2006 and paid on November 22, 2006. The Hartford settled this matter without admitting or denying the findings of the SEC.
FUND NAME REIMBURSEMENT AMOUNT --------- -------------------- Advisers Fund............................................... $1,265 Capital Appreciation Fund................................... 5,181 Disciplined Equity Fund..................................... 291 Dividend and Growth Fund.................................... 1,017 Focus Fund.................................................. 192 Global Communications Fund.................................. 5 Global Financial Services Fund.............................. 5 Global Health Fund.......................................... 104 Global Leaders Fund......................................... 1,914 Global Technology Fund...................................... 22 Growth Fund................................................. 154 Growth Opportunities Fund................................... 412 International Capital Appreciation Fund..................... 5 International Opportunities Fund............................ 27 MidCap Fund................................................. 2,458 MidCap Value Fund........................................... 55 Small Company Fund.......................................... 671 SmallCap Growth Fund........................................ 38 Stock Fund.................................................. 1,567 Value Opportunities Fund.................................... 16 Value Fund.................................................. 11
334 THE HARTFORD MUTUAL FUNDS, INC. AND THE HARTFORD MUTUAL FUNDS II, INC. FINANCIAL HIGHLIGHTS --------------------------------------------------------------------------------
-- SELECTED PER-SHARE DATA(A) -- RATIOS AND SUPPLEMENTAL DATA -- ------------------------------------------------------------------------------- NET REALIZED AND DISTRIBUTIONS NET ASSET NET UNREALIZED TOTAL DIVIDENDS FROM VALUE AT INVESTMENT GAIN FROM FROM NET REALIZED BEGINNING INCOME (LOSS) ON INVESTMENT INVESTMENT CAPITAL OF PERIOD (LOSS) INVESTMENTS OPERATIONS INCOME GAINS --------- ---------- ------------ ---------- ---------- ------------- THE HARTFORD ADVISERS FUND For the Year Ended October 31, 2006 Class A................................ $15.34 $0.31 $1.38 $1.69 $(0.29) $ -- Class B................................ 15.19 0.18 1.37 1.55 (0.17) -- Class C................................ 15.34 0.19 1.38 1.57 (0.18) -- Class Y................................ 15.50 0.38 1.40 1.78 (0.37) -- For the Year Ended October 31, 2005(h) Class A................................ 14.57 0.26 0.80 1.06 (0.29) -- Class B................................ 14.43 0.14 0.79 0.93 (0.17) -- Class C................................ 14.56 0.16 0.80 0.96 (0.18) -- Class Y................................ 14.72 0.33 0.81 1.14 (0.36) -- For the Year Ended October 31, 2004(h) Class A................................ 14.19 0.18 0.38 0.56 (0.18) -- Class B................................ 14.05 0.07 0.38 0.45 (0.07) -- Class C................................ 14.18 0.09 0.37 0.46 (0.08) -- Class Y................................ 14.37 0.25 0.36 0.61 (0.26) -- For the Year Ended October 31, 2003(h) Class A................................ 12.67 0.19 1.52 1.71 (0.19) -- Class B................................ 12.54 0.09 1.51 1.60 (0.09) -- Class C................................ 12.66 0.11 1.52 1.63 (0.11) -- Class Y................................ 12.82 0.27 1.54 1.81 (0.26) -- For the Year Ended October 31, 2002(h) Class A................................ 14.38 0.21 (1.69) (1.48) (0.23) -- Class B................................ 14.24 0.11 (1.68) (1.57) (0.13) -- Class C................................ 14.37 0.12 (1.69) (1.57) (0.14) Class Y................................ 14.54 0.13 (1.55) (1.42) (0.30) -- THE HARTFORD AGGRESSIVE GROWTH ALLOCATION FUND(G) For the Year Ended October 31, 2006 Class A................................ 11.46 0.02 1.83 1.85 (0.09) (0.01) Class B................................ 11.37 (0.12) 1.88 1.76 (0.02) (0.01) Class C................................ 11.37 (0.12) 1.88 1.76 (0.02) (0.01) From August 31, 2006, (commencement of operations) through October 31, 2006 Class I................................ 12.59 (0.01) 0.64 0.63 -- -- For the Year Ended October 31, 2005 Class A................................ 10.38 (0.02) 1.12 1.10 (0.02) -- Class B................................ 10.35 (0.08) 1.10 1.02 -- -- Class C................................ 10.35 (0.07) 1.09 1.02 -- -- From May 28, 2004, (commencement of operations) through October 31, 2004 Class A................................ 10.00 (0.01) 0.39 0.38 -- -- Class B................................ 10.00 (0.02) 0.37 0.35 -- -- Class C................................ 10.00 (0.02) 0.37 0.35 -- -- -- SELECTED PER-SHARE DATA(A) -- RATIOS AND SUPPLEMENTAL DATA -- -------------------------------------------------------------------- NET INCREASE NET ASSET DISTRIBUTIONS (DECREASE) VALUE AT FROM TOTAL IN NET ASSET END TOTAL CAPITAL DISTRIBUTIONS VALUE OF PERIOD RETURN(B) ------------- ------------- ------------ --------- --------- THE HARTFORD ADVISERS FUND For the Year Ended October 31, 2006 Class A................................ $ -- $(0.29) $1.40 $16.74 11.16% Class B................................ -- (0.17) 1.38 16.57 10.25 Class C................................ -- (0.18) 1.39 16.73 10.32 Class Y................................ -- (0.37) 1.41 16.91 11.63 For the Year Ended October 31, 2005(h) Class A................................ -- (0.29) 0.77 15.34 7.30 Class B................................ -- (0.17) 0.76 15.19 6.48 Class C................................ -- (0.18) 0.78 15.34 6.63 Class Y................................ -- (0.36) 0.78 15.50 7.78 For the Year Ended October 31, 2004(h) Class A................................ -- (0.18) 0.38 14.57 3.93(i) Class B................................ -- (0.07) 0.38 14.43 3.21(i) Class C................................ -- (0.08) 0.38 14.56 3.27(i) Class Y................................ -- (0.26) 0.35 14.72 4.22 For the Year Ended October 31, 2003(h) Class A................................ -- (0.19) 1.52 14.19 13.62 Class B................................ -- (0.09) 1.51 14.05 12.86 Class C................................ -- (0.11) 1.52 14.18 12.92 Class Y................................ -- (0.26) 1.55 14.37 14.28 For the Year Ended October 31, 2002(h) Class A................................ -- (0.23) (1.71) 12.67 (10.42) Class B................................ -- (0.13) (1.70) 12.54 (11.11) Class C................................ -- (0.14) (1.71) 12.66 (10.99) Class Y................................ -- (0.30) (1.72) 12.82 (9.89) THE HARTFORD AGGRESSIVE GROWTH ALLOCATION FUND(G) For the Year Ended October 31, 2006 Class A................................ -- (0.10) 1.75 13.21 16.18 Class B................................ -- (0.03) 1.73 13.10 15.43 Class C................................ -- (0.03) 1.73 13.10 15.43 From August 31, 2006, (commencement of operations) through October 31, 2006 Class I................................ -- -- 0.63 13.22 5.00(f) For the Year Ended October 31, 2005 Class A................................ -- (0.02) 1.08 11.46 10.60 Class B................................ -- -- 1.02 11.37 9.88 Class C................................ -- -- 1.02 11.37 9.88 From May 28, 2004, (commencement of operations) through October 31, 2004 Class A................................ -- -- 0.38 10.38 3.80(f) Class B................................ -- -- 0.35 10.35 3.50(f) Class C................................ -- -- 0.35 10.35 3.50(f) -- SELECTED PER-SHARE DATA(A) -- RATIOS AND SUPPLEMENTAL DATA -- ------------------------------------------------------------------------------ RATIO OF RATIO OF EXPENSES EXPENSES RATIO OF TO AVERAGE TO AVERAGE NET NET ASSETS NET ASSETS NET ASSETS INVESTMENT AT END OF BEFORE AFTER INCOME (LOSS) PORTFOLIO PERIOD WAIVERS AND WAIVERS AND TO AVERAGE TURNOVER (000'S) REIMBURSEMENTS(D) REIMBURSEMENTS(D) NET ASSETS RATE(C) ---------- ----------------- ----------------- ------------- --------- THE HARTFORD ADVISERS FUND For the Year Ended October 31, 2006 Class A................................ $1,110,324 1.17% 1.12% 1.86% 99% Class B................................ 341,772 1.96 1.91 1.07 -- Class C................................ 219,580 1.87 1.82 1.16 -- Class Y................................ 17,710 0.71 0.66 2.32 -- For the Year Ended October 31, 2005(h) Class A................................ 1,222,944 1.21 1.19 1.73 66 Class B................................ 437,462 1.99 1.98 0.95 -- Class C................................ 253,605 1.91 1.89 1.06 -- Class Y................................ 15,342 0.75 0.74 2.13 -- For the Year Ended October 31, 2004(h) Class A................................ 1,539,264 1.22 1.22 1.23 42 Class B................................ 550,499 1.95 1.95 0.50 -- Class C................................ 355,711 1.86 1.86 0.58 -- Class Y................................ 13,587 0.74 0.74 1.71 -- For the Year Ended October 31, 2003(h) Class A................................ 1,470,569 1.40 1.39 1.44 46 Class B................................ 593,179 2.13 2.12 0.72 -- Class C................................ 421,814 2.00 2.00 0.84 -- Class Y................................ 8,714 0.81 0.81 1.98 -- For the Year Ended October 31, 2002(h) Class A................................ 1,245,331 1.41 1.36 1.56 44 Class B................................ 567,953 2.08 2.08 0.84 -- Class C................................ 422,520 1.97 1.97 0.95 -- Class Y................................ 3,997 0.78 0.78 2.15 -- THE HARTFORD AGGRESSIVE GROWTH ALLOCATION FUND(G) For the Year Ended October 31, 2006 Class A................................ 116,198 0.79 0.72 (0.34) 14 Class B................................ 33,295 1.62 1.37 (0.93) -- Class C................................ 51,936 1.51 1.37 (0.92) -- From August 31, 2006, (commencement of operations) through October 31, 2006 Class I................................ 11 0.71(e) 0.48(e) (0.45)(e) -- For the Year Ended October 31, 2005 Class A................................ 58,087 0.85 0.68 (0.43) 9 Class B................................ 20,155 1.64 1.33 (1.08) -- Class C................................ 32,718 1.53 1.34 (1.08) -- From May 28, 2004, (commencement of operations) through October 31, 2004 Class A................................ 12,415 0.86(e) 0.67(e) (0.58)(e) 3 Class B................................ 4,532 1.69(e) 1.32(e) (1.23)(e) -- Class C................................ 5,424 1.59(e) 1.32(e) (1.23)(e) --
--------------- (a) Information presented relates to a share outstanding throughout the indicated period. (b) 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. (c) Portfolio turnover rate is calculated on the basis of the Fund as a whole without distinguishing between the classes of shares issued. (d) Ratios do not include fees paid indirectly. Please see Note 3(d). (e) Annualized. (f) Not annualized. (g) Expense ratios do not include expenses of the underlying funds. (h) Per share amounts have been calculated using average shares outstanding method. (i) Without the inclusion of the Payment from Affiliate, the total return would have been 3.74%, 2.95% and 3.06% for classes A, B and C, respectively. The net asset value impact of the Payment from Affiliate was $0.03, $0.04 and $0.03 for classes A, B and C, respectively. The accompanying notes are an integral part of these financial statements. 335 THE HARTFORD MUTUAL FUNDS, INC. AND THE HARTFORD MUTUAL FUNDS II, INC. FINANCIAL HIGHLIGHTS --------------------------------------------------------------------------------
-- SELECTED PER-SHARE DATA(A) -- RATIOS AND SUPPLEMENTAL DATA -- --------------------------------------------------------------- NET REALIZED AND NET ASSET NET UNREALIZED TOTAL DIVIDENDS VALUE AT INVESTMENT GAIN FROM FROM NET BEGINNING INCOME (LOSS) ON INVESTMENT INVESTMENT OF PERIOD (LOSS) INVESTMENTS OPERATIONS INCOME --------- ---------- ------------ ---------- ---------- THE HARTFORD BALANCED ALLOCATION FUND(G) For the Year Ended October 31, 2006(h) Class A................................ $10.95 $0.18 $1.12 $1.30 $(0.22) Class B................................ 10.92 0.10 1.11 1.21 (0.13) Class C................................ 10.92 0.11 1.11 1.22 (0.14) From August 31, 2006, (commencement of operations) through October 31, 2006 Class I................................ 11.66 0.05 0.34 0.39 (0.05) For the Year Ended October 31, 2005 Class A................................ 10.30 0.13 0.64 0.77 (0.12) Class B................................ 10.28 0.06 0.62 0.68 (0.04) Class C................................ 10.28 0.06 0.62 0.68 (0.04) From May 28, 2004, (commencement of operations) through October 31, 2004 Class A................................ 10.00 0.02 0.30 0.32 (0.02) Class B................................ 10.00 0.01 0.27 0.28 -- Class C................................ 10.00 -- 0.28 0.28 -- THE HARTFORD BALANCED INCOME FUND From July 31, 2006, (commencement of operations) through October 31, 2006 Class A................................ 10.00 0.09 0.39 0.48 (0.06) Class B................................ 10.00 0.07 0.38 0.45 (0.04) Class C................................ 10.00 0.06 0.40 0.46 (0.05) Class Y................................ 10.00 0.10 0.38 0.48 (0.06) -- SELECTED PER-SHARE DATA(A) -- RATIOS AND SUPPLEMENTAL DATA -- ------------------------------------------------------------------------------------ DISTRIBUTIONS NET FROM INCREASE NET ASSET REALIZED DISTRIBUTIONS (DECREASE) VALUE AT CAPITAL FROM TOTAL IN NET ASSET END OF TOTAL GAINS CAPITAL DISTRIBUTIONS VALUE PERIOD RETURN(B) ------------- ------------- ------------- ------------ --------- --------- THE HARTFORD BALANCED ALLOCATION FUND(G) For the Year Ended October 31, 2006(h) Class A................................ $(0.02) $ -- $(0.24) $1.06 $12.01 11.98% Class B................................ (0.02) -- (0.15) 1.06 11.98 11.22 Class C................................ (0.02) -- (0.16) 1.06 11.98 11.24 From August 31, 2006, (commencement of operations) through October 31, 2006 Class I................................ -- -- (0.05) 0.34 12.00 3.35(f) For the Year Ended October 31, 2005 Class A................................ -- -- (0.12) 0.65 10.95 7.47 Class B................................ -- -- (0.04) 0.64 10.92 6.66 Class C................................ -- -- (0.04) 0.64 10.92 6.66 From May 28, 2004, (commencement of operations) through October 31, 2004 Class A................................ -- -- (0.02) 0.30 10.30 3.15(f) Class B................................ -- -- -- 0.28 10.28 2.82(f) Class C................................ -- -- -- 0.28 10.28 2.82(f) THE HARTFORD BALANCED INCOME FUND From July 31, 2006, (commencement of operations) through October 31, 2006 Class A................................ -- -- (0.06) 0.42 10.42 4.78(f) Class B................................ -- -- (0.04) 0.41 10.41 4.54(f) Class C................................ -- -- (0.05) 0.41 10.41 4.56(f) Class Y................................ -- -- (0.06) 0.42 10.42 4.83(f) -- SELECTED PER-SHARE DATA(A) -- RATIOS AND SUPPLEMENTAL DATA -- ---------------------------------------------------------------------------------- RATIO OF RATIO OF EXPENSES EXPENSES RATIO OF TO AVERAGE TO AVERAGE NET NET ASSETS NET ASSETS NET ASSETS INVESTMENT AT END OF BEFORE AFTER INCOME (LOSS) PORTFOLIO PERIOD WAIVERS AND WAIVERS AND TO AVERAGE TURNOVER (000'S) REIMBURSEMENTS(D) REIMBURSEMENTS(D) NET ASSETS RATE(C) ---------- ----------------- ----------------- ------------- --------- THE HARTFORD BALANCED ALLOCATION FUND(G) For the Year Ended October 31, 2006(h) Class A................................ $453,492 0.62% 0.62% 1.52% 15% Class B................................ 109,117 1.44 1.36 0.82 -- Class C................................ 171,073 1.38 1.36 0.78 -- From August 31, 2006, (commencement of operations) through October 31, 2006 Class I................................ 353 0.39(e) 0.39(e) 1.47(e) -- For the Year Ended October 31, 2005 Class A................................ 262,878 0.66 0.60 1.26 2 Class B................................ 72,619 1.47 1.31 0.55 -- Class C................................ 103,248 1.41 1.31 0.56 -- From May 28, 2004, (commencement of operations) through October 31, 2004 Class A................................ 67,293 0.62(e) 0.59(e) 0.99(e) -- Class B................................ 18,841 1.45(e) 1.29(e) 0.33(e) -- Class C................................ 30,414 1.38(e) 1.29(e) 0.30(e) -- THE HARTFORD BALANCED INCOME FUND From July 31, 2006, (commencement of operations) through October 31, 2006 Class A................................ 11,513 1.58(e) 1.25(e) 3.48(e) 8 Class B................................ 304 2.34(e) 2.00(e) 2.73(e) -- Class C................................ 400 2.39(e) 2.00(e) 2.67(e) -- Class Y................................ 105 1.31(e) 0.90(e) 3.86(e) --
--------------- (a) Information presented relates to a share outstanding throughout the indicated period. (b) 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. (c) Portfolio turnover rate is calculated on the basis of the Fund as a whole without distinguishing between the classes of shares issued. (d) Ratios do not include fees paid indirectly. Please see Note 3(d). (e) Annualized. (f) Not annualized. (g) Expense ratios do not include expenses of the underlying funds. The accompanying notes are an integral part of these financial statements. 336 THE HARTFORD MUTUAL FUNDS, INC. AND THE HARTFORD MUTUAL FUNDS II, INC. FINANCIAL HIGHLIGHTS --------------------------------------------------------------------------------
-- SELECTED PER-SHARE DATA(A) -- RATIOS AND SUPPLEMENTAL DATA -- ------------------------------------------------------------------------------- NET REALIZED AND DISTRIBUTIONS NET ASSET NET UNREALIZED TOTAL DIVIDENDS FROM VALUE AT INVESTMENT GAIN FROM FROM NET REALIZED BEGINNING INCOME (LOSS) ON INVESTMENT INVESTMENT CAPITAL OF PERIOD (LOSS) INVESTMENTS OPERATIONS INCOME GAINS --------- ---------- ------------ ---------- ---------- ------------- THE HARTFORD CAPITAL APPRECIATION FUND For the Year Ended October 31, 2006 Class A................................ $36.51 $ 0.15 $ 6.43 $ 6.58 $ -- $(3.42) Class B................................ 33.90 (0.10) 5.87 5.77 -- (3.42) Class C................................ 34.00 (0.07) 5.89 5.82 -- (3.42) Class Y................................ 38.47 0.30 6.84 7.14 -- (3.42) From August 31, (commencement of operations) through October 31, 2006 Class I................................ 37.53 -- 2.16 2.16 -- -- For the Year Ended October 31, 2005 Class A................................ 30.80 0.09 5.62 5.71 -- -- Class B................................ 28.82 (0.15) 5.23 5.08 -- -- Class C................................ 28.88 (0.11) 5.23 5.12 -- -- Class Y................................ 32.29 0.21 5.97 6.18 -- -- For the Year Ended October 31, 2004 Class A................................ 26.50 (0.01) 4.31 4.30 -- -- Class B................................ 24.97 (0.21) 4.06 3.85 -- -- Class C................................ 25.00 (0.18) 4.06 3.88 -- -- Class Y................................ 27.64 0.11 4.54 4.65 -- -- For the Year Ended October 31, 2003 Class A................................ 20.47 (0.04) 6.07 6.03 -- -- Class B................................ 19.44 (0.19) 5.72 5.53 -- -- Class C................................ 19.44 (0.16) 5.72 5.56 -- -- Class Y................................ 21.23 0.08 6.33 6.41 -- -- For the Year Ended October 31, 2002(h) Class A................................ 24.12 (0.06) (3.59) (3.65) -- -- Class B................................ 23.06 (0.25) (3.37) (3.62) -- -- Class C................................ 23.04 (0.22) (3.38) (3.60) -- -- Class Y................................ 24.85 0.04 (3.66) (3.62) -- -- THE HARTFORD CAPITAL APPRECIATION II FUND For the Year Ended October 31, 2006 Class A................................ 11.07 (0.01) 2.22 2.21 -- (0.15) Class B................................ 11.02 (0.07) 2.19 2.12 -- (0.15) Class C................................ 11.04 (0.06) 2.17 2.11 -- (0.15) Class Y................................ 11.08 0.12 2.15 2.27 -- (0.15) From August 31, 2006, (commencement of operations) through October 31, 2006 Class I................................ 12.51 -- 0.63 0.63 -- -- From April 29, 2005, (commencement of operations) through October 31, 2005 Class A................................ 10.00 (0.01) 1.08 1.07 -- -- Class B................................ 10.00 (0.03) 1.05 1.02 -- -- Class C................................ 10.00 (0.03) 1.07 1.04 -- -- Class Y................................ 10.00 0.02 1.06 1.08 -- -- -- SELECTED PER-SHARE DATA(A) -- RATIOS AND SUPPLEMENTAL DATA -- -------------------------------------------------------------------- NET INCREASE NET ASSET DISTRIBUTIONS (DECREASE) VALUE AT FROM TOTAL IN NET ASSET END OF TOTAL CAPITAL DISTRIBUTIONS VALUE PERIOD RETURN(B) ------------- ------------- ------------ --------- --------- THE HARTFORD CAPITAL APPRECIATION FUND For the Year Ended October 31, 2006 Class A................................ $ -- $(3.42) $ 3.16 $39.67 19.56% Class B................................ -- (3.42) 2.35 36.25 18.59 Class C................................ -- (3.42) 2.40 36.40 18.69 Class Y................................ -- (3.42) 3.72 42.19 20.07 From August 31, (commencement of operations) through October 31, 2006 Class I................................ -- -- 2.16 39.69 5.76(f) For the Year Ended October 31, 2005 Class A................................ -- -- 5.71 36.51 18.54 Class B................................ -- -- 5.08 33.90 17.63 Class C................................ -- -- 5.12 34.00 17.73 Class Y................................ -- -- 6.18 38.47 19.14 For the Year Ended October 31, 2004 Class A................................ -- -- 4.30 30.80 16.23 Class B................................ -- -- 3.85 28.82 15.42 Class C................................ -- -- 3.88 28.88 15.52 Class Y................................ -- -- 4.65 32.29 16.82 For the Year Ended October 31, 2003 Class A................................ -- -- 6.03 26.50 29.46 Class B................................ -- -- 5.53 24.97 28.45 Class C................................ -- -- 5.56 25.00 28.60 Class Y................................ -- -- 6.41 27.64 30.19 For the Year Ended October 31, 2002(h) Class A................................ -- -- (3.65) 20.47 (15.13) Class B................................ -- -- (3.62) 19.44 (15.70) Class C................................ -- -- (3.60) 19.44 (15.62) Class Y................................ -- -- (3.62) 21.23 (14.57) THE HARTFORD CAPITAL APPRECIATION II FUND For the Year Ended October 31, 2006 Class A................................ -- (0.15) 2.06 13.13 20.21 Class B................................ -- (0.15) 1.97 12.99 19.48 Class C................................ -- (0.15) 1.96 13.00 19.35 Class Y................................ -- (0.15) 2.12 13.20 20.74 From August 31, 2006, (commencement of operations) through October 31, 2006 Class I................................ -- -- 0.63 13.14 5.04(f) From April 29, 2005, (commencement of operations) through October 31, 2005 Class A................................ -- -- 1.07 11.07 10.70(f) Class B................................ -- -- 1.02 11.02 10.20(f) Class C................................ -- -- 1.04 11.04 10.40(f) Class Y................................ -- -- 1.08 11.08 10.80(f) -- SELECTED PER-SHARE DATA(A) -- RATIOS AND SUPPLEMENTAL DATA -- ------------------------------------------------------------------------------ RATIO OF RATIO OF EXPENSES EXPENSES RATIO OF TO AVERAGE TO AVERAGE NET NET ASSETS NET ASSETS NET ASSETS INVESTMENT AT END OF BEFORE AFTER INCOME (LOSS) PORTFOLIO PERIOD WAIVERS AND WAIVERS AND TO AVERAGE TURNOVER (000'S) REIMBURSEMENTS(D) REIMBURSEMENTS(D) NET ASSETS RATE(C) ---------- ----------------- ----------------- ------------- --------- THE HARTFORD CAPITAL APPRECIATION FUND For the Year Ended October 31, 2006 Class A................................ $9,312,766 1.18% 1.18% 0.47% 74% Class B................................ 1,868,359 1.97 1.97 (0.31) -- Class C................................ 2,968,472 1.90 1.90 (0.25) -- Class Y................................ 414,259 0.75 0.75 0.90 -- From August 31, (commencement of operations) through October 31, 2006 Class I................................ 5,193 0.88(e) 0.88(e) 0.17(e) -- For the Year Ended October 31, 2005 Class A................................ 6,071,891 1.26 1.26 0.31 93 Class B................................ 1,631,199 2.03 2.03 (0.45) -- Class C................................ 1,834,562 1.94 1.94 (0.37) -- Class Y................................ 245,163 0.78 0.78 0.76 -- For the Year Ended October 31, 2004 Class A................................ 4,203,178 1.35 1.35 (0.05) 78 Class B................................ 1,432,121 2.06 2.06 (0.78) -- Class C................................ 1,348,972 1.97 1.97 (0.68) -- Class Y................................ 116,527 0.79 0.79 0.50 -- For the Year Ended October 31, 2003 Class A................................ 2,357,913 1.45 1.60 (0.13) 113 Class B................................ 1,140,154 2.17 2.17 (0.87) -- Class C................................ 981,246 2.05 2.05 (0.75) -- Class Y................................ 48,372 0.85 0.85 0.46 -- For the Year Ended October 31, 2002(h) Class A................................ 1,700,765 1.45 1.40 (0.28) 112 Class B................................ 884,553 2.14 2.14 (1.04) -- Class C................................ 738,988 2.02 2.02 (0.92) -- Class Y................................ 25,378 0.80 0.80 0.27 -- THE HARTFORD CAPITAL APPRECIATION II FUND For the Year Ended October 31, 2006 Class A................................ 241,238 1.66 1.60 (0.13) 113 Class B................................ 29,169 2.54 2.35 (0.88) -- Class C................................ 97,678 2.37 2.33 (0.86) -- Class Y................................ 119 1.20 1.15 0.39 -- From August 31, 2006, (commencement of operations) through October 31, 2006 Class I................................ 3,316 1.46(e) 0.80(e) 0.45(e) -- From April 29, 2005, (commencement of operations) through October 31, 2005 Class A................................ 56,981 1.99(e) 1.60(e) (0.30)(e) 46 Class B................................ 6,343 2.97(e) 2.35(e) (1.10)(e) -- Class C................................ 19,494 2.82(e) 2.35(e) (1.12)(e) -- Class Y................................ 332 1.41(e) 1.15(e) 0.29(e) --
--------------- (a) Information presented relates to a share outstanding throughout the indicated period. (b) 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. (c) Portfolio turnover rate is calculated on the basis of the Fund as a whole without distinguishing between the classes of shares issued. (d) Ratios do not include fees paid indirectly. Please see Note 3(d). (e) Annualized. (f) Not annualized. The accompanying notes are an integral part of these financial statements. 337 THE HARTFORD MUTUAL FUNDS, INC. AND THE HARTFORD MUTUAL FUNDS II, INC. FINANCIAL HIGHLIGHTS --------------------------------------------------------------------------------
-- SELECTED PER-SHARE DATA(A) -- RATIOS AND SUPPLEMENTAL DATA -- --------------------------------------------------------------- NET REALIZED AND NET ASSET NET UNREALIZED TOTAL DIVIDENDS VALUE AT INVESTMENT GAIN FROM FROM NET BEGINNING INCOME (LOSS) ON INVESTMENT INVESTMENT OF PERIOD (LOSS) INVESTMENTS OPERATIONS INCOME --------- ---------- ------------ ---------- ---------- THE HARTFORD CONSERVATIVE ALLOCATION FUND(G) For the Year Ended October 31, 2006 Class A................................ $10.57 $ 0.26 $ 0.76 $ 1.02 $(0.31) Class B................................ 10.56 0.19 0.76 0.95 (0.23) Class C................................ 10.56 0.19 0.76 0.95 (0.24) From August 31, (commencement of operations) through October 31, 2006 Class I................................ 10.94 0.07 0.22 0.29 (0.07) For the Year Ended October 31, 2005 Class A................................ 10.27 0.23 0.28 0.51 (0.21) Class B................................ 10.26 0.16 0.28 0.44 (0.14) Class C................................ 10.26 0.16 0.28 0.44 (0.14) From May 28, 2004, (commencement of operations) through October 31, 2004 Class A................................ 10.00 0.03 0.27 0.30 (0.03) Class B................................ 10.00 0.02 0.25 0.27 (0.01) Class C................................ 10.00 0.02 0.25 0.27 (0.01) THE HARTFORD DISCIPLINED EQUITY FUND For the Year Ended October 31, 2006 Class A................................ 11.78 0.04 1.39 1.43 (0.02) Class B................................ 11.25 (0.03) 1.31 1.28 -- Class C................................ 11.26 (0.04) 1.32 1.28 -- Class Y................................ 12.12 0.14 1.40 1.54 (0.08) For the Year Ended October 31, 2005 Class A................................ 10.67 0.10 1.09 1.19 (0.08) Class B................................ 10.20 (0.02) 1.08 1.06 (0.01) Class C................................ 10.22 (0.02) 1.07 1.05 (0.01) Class Y................................ 10.99 0.15 1.12 1.27 (0.14) For the Year Ended October 31, 2004 Class A................................ 10.08 0.03 0.57 0.60 (0.01) Class B................................ 9.70 (0.05) 0.55 0.50 -- Class C................................ 9.71 (0.05) 0.56 0.51 -- Class Y................................ 10.36 (0.01) 0.69 0.68 (0.05) For the Year Ended October 31, 2003 Class A................................ 8.43 0.02 1.63 1.65 -- Class B................................ 8.17 (0.04) 1.57 1.53 -- Class C................................ 8.18 (0.04) 1.57 1.53 -- Class Y................................ 8.63 0.08 1.65 1.73 -- For the Year Ended October 31, 2002(h) Class A................................ 10.36 -- (1.93) (1.93) -- Class B................................ 10.10 (0.11) (1.82) (1.93) -- Class C................................ 10.11 (0.06) (1.87) (1.93) -- Class Y................................ 10.52 0.05 (1.94) (1.89) -- -- SELECTED PER-SHARE DATA(A) -- RATIOS AND SUPPLEMENTAL DATA -- ------------------------------------------------------------------------------------ DISTRIBUTIONS NET FROM INCREASE NET ASSET REALIZED DISTRIBUTIONS (DECREASE) VALUE AT CAPITAL FROM TOTAL IN NET ASSET END OF TOTAL GAINS CAPITAL DISTRIBUTIONS VALUE PERIOD RETURN(B) ------------- ------------- ------------- ------------ --------- --------- THE HARTFORD CONSERVATIVE ALLOCATION FUND(G) For the Year Ended October 31, 2006 Class A................................ $(0.12) $ -- $(0.43) $0.59 $11.16 9.85% Class B................................ (0.12) -- (0.35) 0.60 11.16 9.19 Class C................................ (0.12) -- (0.36) 0.59 11.15 9.10 From August 31, (commencement of operations) through October 31, 2006 Class I................................ -- -- (0.07) 0.22 11.16 2.69(f) For the Year Ended October 31, 2005 Class A................................ -- -- (0.21) 0.30 10.57 4.96 Class B................................ -- -- (0.14) 0.30 10.56 4.26 Class C................................ -- -- (0.14) 0.30 10.56 4.26 From May 28, 2004, (commencement of operations) through October 31, 2004 Class A................................ -- -- (0.03) 0.27 10.27 2.96(f) Class B................................ -- -- (0.01) 0.26 10.26 2.70(f) Class C................................ -- -- (0.01) 0.26 10.26 2.70(f) THE HARTFORD DISCIPLINED EQUITY FUND For the Year Ended October 31, 2006 Class A................................ -- -- (0.02) 1.41 13.19 12.13 Class B................................ -- -- -- 1.28 12.53 11.38 Class C................................ -- -- -- 1.28 12.54 11.37 Class Y................................ -- -- (0.08) 1.46 13.58 12.76 For the Year Ended October 31, 2005 Class A................................ -- -- (0.08) 1.11 11.78 11.19 Class B................................ -- -- (0.01) 1.05 11.25 10.35 Class C................................ -- -- (0.01) 1.04 11.26 10.29 Class Y................................ -- -- (0.14) 1.13 12.12 11.62 For the Year Ended October 31, 2004 Class A................................ -- -- (0.01) 0.59 10.67 5.92 Class B................................ -- -- -- 0.50 10.20 5.16 Class C................................ -- -- -- 0.51 10.22 5.25(i) Class Y................................ -- -- (0.05) 0.63 10.99 6.55 For the Year Ended October 31, 2003 Class A................................ -- -- -- 1.65 10.08 19.57 Class B................................ -- -- -- 1.53 9.70 18.73 Class C................................ -- -- -- 1.53 9.71 18.70 Class Y................................ -- -- -- 1.73 10.36 20.05 For the Year Ended October 31, 2002(h) Class A................................ -- -- -- (1.93) 8.43 (18.63) Class B................................ -- -- -- (1.93) 8.17 (19.11) Class C................................ -- -- -- (1.93) 8.18 (19.09) Class Y................................ -- -- -- (1.89) 8.63 (17.97) -- SELECTED PER-SHARE DATA(A) -- RATIOS AND SUPPLEMENTAL DATA -- ------------------------------------------------------------------------------ RATIO OF RATIO OF EXPENSES EXPENSES RATIO OF TO AVERAGE TO AVERAGE NET NET ASSETS NET ASSETS NET ASSETS INVESTMENT AT END OF BEFORE AFTER INCOME (LOSS) PORTFOLIO PERIOD WAIVERS AND WAIVERS AND TO AVERAGE TURNOVER (000'S) REIMBURSEMENTS(D) REIMBURSEMENTS(D) NET ASSETS RATE(C) ---------- ----------------- ----------------- ------------- --------- THE HARTFORD CONSERVATIVE ALLOCATION FUND(G) For the Year Ended October 31, 2006 Class A................................ $ 93,504 0.64% 0.63% 2.41% 29% Class B................................ 20,782 1.48 1.31 1.73 -- Class C................................ 36,123 1.41 1.31 1.67 -- From August 31, (commencement of operations) through October 31, 2006 Class I................................ 10 0.72(e) 0.41(e) 2.07(e) -- For the Year Ended October 31, 2005 Class A................................ 70,533 0.63 0.60 2.25 23 Class B................................ 14,525 1.48 1.26 1.60 -- Class C................................ 27,453 1.42 1.26 1.56 -- From May 28, 2004, (commencement of operations) through October 31, 2004 Class A................................ 33,921 0.63(e) 0.60(e) 1.70(e) -- Class B................................ 4,993 1.44(e) 1.25(e) 1.05(e) -- Class C................................ 10,807 1.38(e) 1.25(e) 1.17(e) -- THE HARTFORD DISCIPLINED EQUITY FUND For the Year Ended October 31, 2006 Class A................................ 189,375 1.40 1.40 0.39 67 Class B................................ 35,673 2.30 2.07 (0.28) -- Class C................................ 29,153 2.10 2.10 (0.31) -- Class Y................................ 169,614 0.89 0.89 0.88 -- For the Year Ended October 31, 2005 Class A................................ 209,721 1.41 1.40 0.81 61 Class B................................ 39,806 2.34 2.15 0.06 -- Class C................................ 33,690 2.11 2.11 0.12 -- Class Y................................ 81,582 0.90 0.90 0.97 -- For the Year Ended October 31, 2004 Class A................................ 241,014 1.46 1.45 0.30 62 Class B................................ 44,561 2.34 2.15 (0.41) -- Class C................................ 40,965 2.10 2.10 (0.36) -- Class Y................................ 19,578 0.88 0.88 0.95 -- For the Year Ended October 31, 2003 Class A................................ 243,842 1.56 1.45 0.24 76 Class B................................ 47,888 2.30 2.15 (0.46) -- Class C................................ 46,162 2.17 2.15 (0.46) -- Class Y................................ 622 0.98 0.98 0.70 -- For the Year Ended October 31, 2002(h) Class A................................ 230,545 1.57 1.45 (0.03) 89 Class B................................ 43,431 2.26 2.15 (1.03) -- Class C................................ 44,054 2.13 2.13 (0.80) -- Class Y................................ 661 0.93 0.93 0.46 --
--------------- (a) Information presented relates to a share outstanding throughout the indicated period. (b) 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. (c) Portfolio turnover rate is calculated on the basis of the Fund as a whole without distinguishing between the classes of shares issued. (d) Ratios do not include fees paid indirectly. Please see Note 3(d). (e) Annualized. (f) Not annualized. (g) Expense ratios do not include expenses of the underlying funds. (h) Per share amounts have been calculated using average shares outstanding method. (i) Without the inclusion of the Payment from Affiliate, the total return would have been 5.24%, class C. The net asset value impact of the Payment from Affiliate was less than $0.01 for class C. The accompanying notes are an integral part of these financial statements. 338 THE HARTFORD MUTUAL FUNDS, INC. AND THE HARTFORD MUTUAL FUNDS II, INC. FINANCIAL HIGHLIGHTS --------------------------------------------------------------------------------
-- SELECTED PER-SHARE DATA(A) -- RATIOS AND SUPPLEMENTAL DATA -- ------------------------------------------------------------------------------- NET REALIZED AND DISTRIBUTIONS NET ASSET NET UNREALIZED TOTAL DIVIDENDS FROM VALUE AT INVESTMENT GAIN FROM FROM NET REALIZED BEGINNING INCOME (LOSS) ON INVESTMENT INVESTMENT CAPITAL OF PERIOD (LOSS) INVESTMENTS OPERATIONS INCOME GAINS --------- ---------- ------------ ---------- ---------- ------------- THE HARTFORD DIVIDEND AND GROWTH FUND For the Year Ended October 31, 2006(h) Class A................................ $19.10 $0.26 $ 3.14 $ 3.40 $(0.26) $(0.76) Class B................................ 18.84 0.09 3.10 3.19 (0.10) (0.76) Class C................................ 18.81 0.12 3.08 3.20 (0.12) (0.76) Class Y................................ 19.30 0.35 3.18 3.53 (0.35) (0.76) From August 31, 2006, (commencement of operations) through October 31, 2006(h) Class I................................ 20.48 0.03 1.03 1.06 (0.08) -- For the Year Ended October 31, 2005 Class A................................ 17.79 0.23 1.51 1.74 (0.24) (0.19) Class B................................ 17.56 0.08 1.48 1.56 (0.09) (0.19) Class C................................ 17.53 0.10 1.48 1.58 (0.11) (0.19) Class Y................................ 17.97 0.32 1.53 1.85 (0.33) (0.19) For the Year Ended October 31, 2004 Class A................................ 15.94 0.17 1.82 1.99 (0.14) -- Class B................................ 15.75 0.03 1.80 1.83 (0.02) -- Class C................................ 15.72 0.06 1.79 1.85 (0.04) -- Class Y................................ 16.11 0.24 1.86 2.10 (0.24) -- For the Year Ended October 31, 2003 Class A................................ 13.58 0.12 2.37 2.49 (0.13)(j) -- Class B................................ 13.43 0.03 2.32 2.35 (0.03)(j) -- Class C................................ 13.40 0.04 2.32 2.36 (0.04)(j) -- Class Y................................ 13.73 0.19 2.40 2.59 (0.21)(j) -- For the Year Ended October 31, 2002(h) Class A................................ 15.53 0.12 (1.71) (1.59) (0.12) (0.24) Class B................................ 15.37 0.02 (1.70) (1.68) (0.02) (0.24) Class C................................ 15.33 0.03 (1.69) (1.66) (0.03) (0.24) Class Y................................ 15.71 0.12 (1.65) (1.53) (0.21) (0.24) -- SELECTED PER-SHARE DATA(A) -- RATIOS AND SUPPLEMENTAL DATA -- -------------------------------------------------------------------- NET INCREASE NET ASSET DISTRIBUTIONS (DECREASE) VALUE AT FROM TOTAL IN NET ASSET END TOTAL CAPITAL DISTRIBUTIONS VALUE OF PERIOD RETURN(B) ------------- ------------- ------------ --------- --------- THE HARTFORD DIVIDEND AND GROWTH FUND For the Year Ended October 31, 2006(h) Class A................................ $ -- $(1.02) $ 2.38 $21.48 18.63% Class B................................ -- (0.86) 2.33 21.17 17.63 Class C................................ -- (0.88) 2.32 21.13 17.75 Class Y................................ -- (1.11) 2.42 21.72 19.15 From August 31, 2006, (commencement of operations) through October 31, 2006(h) Class I................................ -- (0.08) 0.98 21.46 5.20(f) For the Year Ended October 31, 2005 Class A................................ -- (0.43) 1.31 19.10 9.87 Class B................................ -- (0.28) 1.28 18.84 8.92 Class C................................ -- (0.30) 1.28 18.81 9.08 Class Y................................ -- (0.52) 1.33 19.30 10.36 For the Year Ended October 31, 2004 Class A................................ -- (0.14) 1.85 17.79 12.53(i) Class B................................ -- (0.02) 1.81 17.56 11.62 Class C................................ -- (0.04) 1.81 17.53 11.76(i) Class Y................................ -- (0.24) 1.86 17.97 13.06 For the Year Ended October 31, 2003 Class A................................ -- (0.13) 2.36 15.94 18.42 Class B................................ -- (0.03) 2.32 15.75 17.52 Class C................................ -- (0.04) 2.32 15.72 17.67 Class Y................................ -- (0.21) 2.38 16.11 19.03 For the Year Ended October 31, 2002(h) Class A................................ -- (0.36) (1.95) 13.58 (10.64) Class B................................ -- (0.26) (1.94) 13.43 (11.15) Class C................................ -- (0.27) (1.93) 13.40 (11.08) Class Y................................ -- (0.45) (1.98) 13.73 (10.00) -- SELECTED PER-SHARE DATA(A) -- RATIOS AND SUPPLEMENTAL DATA -- ------------------------------------------------------------------------------ RATIO OF RATIO OF EXPENSES EXPENSES RATIO OF TO AVERAGE TO AVERAGE NET NET ASSETS NET ASSETS NET ASSETS INVESTMENT AT END OF BEFORE AFTER INCOME (LOSS) PORTFOLIO PERIOD WAIVERS AND WAIVERS AND TO AVERAGE TURNOVER (000'S) REIMBURSEMENTS(D) REIMBURSEMENTS(D) NET ASSETS RATE(C) ---------- ----------------- ----------------- ------------- --------- THE HARTFORD DIVIDEND AND GROWTH FUND For the Year Ended October 31, 2006(h) Class A................................ $2,626,634 1.14% 1.14% 1.32% 29% Class B................................ 365,678 1.99 1.99 0.48 -- Class C................................ 317,139 1.87 1.87 0.60 -- Class Y................................ 133,376 0.71 0.71 1.75 -- From August 31, 2006, (commencement of operations) through October 31, 2006(h) Class I................................ 11 1.08(e) 0.98(e) 0.59(e) -- For the Year Ended October 31, 2005 Class A................................ 2,109,617 1.17 1.17 1.25 26 Class B................................ 343,650 2.01 2.01 0.41 -- Class C................................ 280,967 1.89 1.89 0.54 -- Class Y................................ 114,777 0.73 0.73 1.64 -- For the Year Ended October 31, 2004 Class A................................ 1,838,567 1.23 1.23 0.96 25 Class B................................ 319,512 2.04 2.04 0.16 -- Class C................................ 277,706 1.90 1.90 0.29 -- Class Y................................ 69,088 0.75 0.75 1.44 -- For the Year Ended October 31, 2003 Class A................................ 1,296,982 1.41 1.40 0.88 31 Class B................................ 257,856 2.14 2.13 0.16 -- Class C................................ 230,348 2.02 2.02 0.27 -- Class Y................................ 42,107 0.81 0.81 1.44 -- For the Year Ended October 31, 2002(h) Class A................................ 808,633 1.46 1.40 0.78 33 Class B................................ 185,731 2.13 2.10 0.08 -- Class C................................ 164,260 2.02 2.02 0.15 -- Class Y................................ 14,790 0.82 0.82 1.36 --
--------------- (a) Information presented relates to a share outstanding throughout the indicated period. (b) 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. (c) Portfolio turnover rate is calculated on the basis of the Fund as a whole without distinguishing between the classes of shares issued. (d) Ratios do not include fees paid indirectly. Please see Note 3(d). (e) Annualized. (f) Not annualized. (g) Expense ratios do not include expenses of the underlying funds. (h) Per share amounts have been calculated using average shares outstanding method. (i) Without the inclusion of the Payment from Affiliate, the total return would have been 12.47% and 11.72% for classes A, C, respectively. The net asset value impact of the Payment from Affiliate was $0.01, and $0.01 for classes A and C, respectively. (j) This includes a tax return of capital of less than $0.01. The accompanying notes are an integral part of these financial statements. 339 THE HARTFORD MUTUAL FUNDS, INC. AND THE HARTFORD MUTUAL FUNDS II, INC. FINANCIAL HIGHLIGHTS --------------------------------------------------------------------------------
-- SELECTED PER-SHARE DATA(A) -- RATIOS AND SUPPLEMENTAL DATA -- ------------------------------------------------------------------------------- NET REALIZED AND DISTRIBUTIONS NET ASSET NET UNREALIZED TOTAL DIVIDENDS FROM VALUE AT INVESTMENT GAIN FROM FROM NET REALIZED BEGINNING INCOME (LOSS) ON INVESTMENT INVESTMENT CAPITAL OF PERIOD (LOSS) INVESTMENTS OPERATIONS INCOME GAINS --------- ---------- ------------ ---------- ---------- ------------- THE HARTFORD EQUITY INCOME FUND For the Year Ended October 31, 2006 Class A................................ $12.09 $0.26 $1.96 $2.22 $(0.28) $(0.03) Class B................................ 12.07 0.16 1.94 2.10 (0.17) (0.03) Class C................................ 12.08 0.17 1.96 2.13 (0.19) (0.03) Class Y................................ 12.15 0.30 1.98 2.28 (0.33) (0.03) From August 31, 2006, (commencement of operations) through October 31, 2006 Class I................................ 13.52 0.08 0.46 0.54 (0.07) -- For the Year Ended October 31, 2005 Class A................................ 11.28 0.27 0.82 1.09 (0.26) (0.02) Class B................................ 11.26 0.17 0.82 0.99 (0.16) (0.02) Class C................................ 11.27 0.20 0.81 1.01 (0.18) (0.02) Class Y................................ 11.33 0.32 0.83 1.15 (0.31) (0.02) For the Year Ended October 31, 2004 Class A................................ 10.37 0.21 0.90 1.11 (0.20) -- Class B................................ 10.36 0.13 0.89 1.02 (0.12) -- Class C................................ 10.36 0.15 0.89 1.04 (0.13) -- Class Y................................ 10.39 0.24 0.95 1.19 (0.25) -- From inception August 28, 2003, through October 31, 2003 Class A................................ 10.00 0.02 0.35 0.37 -- -- Class B................................ 10.00 0.01 0.35 0.36 -- -- Class C................................ 10.00 0.01 0.35 0.36 -- -- Class Y................................ 10.00 0.04 0.35 0.39 -- -- THE HARTFORD FLOATING RATE FUND For the Year Ended October 31, 2006 Class A................................ 10.09 0.62 0.02 0.64 (0.62) -- Class B................................ 10.08 0.54 0.03 0.57 (0.54) -- Class C................................ 10.08 0.55 0.03 0.58 (0.55) -- Class Y................................ 10.08 0.66 0.02 0.68 (0.65) -- From August 31, 2006, (commencement of operations) through October 31, 2006 Class I................................ 10.11 0.12 -- 0.12 (0.12) -- From April 29, 2005, (commencement of operations) through October 31, 2005 Class A................................ 10.00 0.22 0.08 0.30 (0.21) -- Class B................................ 10.00 0.19 0.08 0.27 (0.19) -- Class C................................ 10.00 0.18 0.09 0.27 (0.19) -- Class Y................................ 10.00 0.23 0.08 0.31 (0.23) -- -- SELECTED PER-SHARE DATA(A) -- RATIOS AND SUPPLEMENTAL DATA -- -------------------------------------------------------------------- NET INCREASE NET ASSET DISTRIBUTIONS (DECREASE) VALUE AT FROM TOTAL IN NET ASSET END OF TOTAL CAPITAL DISTRIBUTIONS VALUE PERIOD RETURN(B) ------------- ------------- ------------ --------- --------- THE HARTFORD EQUITY INCOME FUND For the Year Ended October 31, 2006 Class A................................ $ -- $(0.31) $1.91 $14.00 18.70% Class B................................ -- (0.20) 1.90 13.97 17.67 Class C................................ -- (0.22) 1.91 13.99 17.88 Class Y................................ -- (0.36) 1.92 14.07 19.18 From August 31, 2006, (commencement of operations) through October 31, 2006 Class I................................ -- (0.07) 0.47 13.99 4.05(f) For the Year Ended October 31, 2005 Class A................................ -- (0.28) 0.81 12.09 9.74 Class B................................ -- (0.18) 0.81 12.07 8.84 Class C................................ -- (0.20) 0.81 12.08 9.00 Class Y................................ -- (0.33) 0.82 12.15 10.22 For the Year Ended October 31, 2004 Class A................................ -- (0.20) 0.91 11.28 10.82 Class B................................ -- (0.12) 0.90 11.26 9.93 Class C................................ -- (0.13) 0.91 11.27 10.12 Class Y................................ -- (0.25) 0.94 11.33 11.53 From inception August 28, 2003, through October 31, 2003 Class A................................ -- -- 0.37 10.37 3.70(f) Class B................................ -- -- 0.36 10.36 3.60(f) Class C................................ -- -- 0.36 10.36 3.60(f) Class Y................................ -- -- 0.39 10.39 3.90(f) THE HARTFORD FLOATING RATE FUND For the Year Ended October 31, 2006 Class A................................ -- (0.62) 0.02 10.11 6.56 Class B................................ -- (0.54) 0.03 10.11 5.79 Class C................................ -- (0.55) 0.03 10.11 5.86 Class Y................................ -- (0.65) 0.03 10.11 7.00 From August 31, 2006, (commencement of operations) through October 31, 2006 Class I................................ -- (0.12) -- 10.11 1.21(f) From April 29, 2005, (commencement of operations) through October 31, 2005 Class A................................ -- (0.21) 0.09 10.09 3.06(f) Class B................................ -- (0.19) 0.08 10.08 2.66(f) Class C................................ -- (0.19) 0.08 10.08 2.67(f) Class Y................................ -- (0.23) 0.08 10.08 3.10(f) -- SELECTED PER-SHARE DATA(A) -- RATIOS AND SUPPLEMENTAL DATA -- ---------------------------------------------------------------------------------- RATIO OF RATIO OF EXPENSES EXPENSES RATIO OF TO AVERAGE TO AVERAGE NET NET ASSETS NET ASSETS NET ASSETS INVESTMENT AT END OF BEFORE AFTER INCOME (LOSS) PORTFOLIO PERIOD WAIVERS AND WAIVERS AND TO AVERAGE TURNOVER (000'S) REIMBURSEMENTS(D) REIMBURSEMENTS(D) NET ASSETS RATE(C) ---------- ----------------- ----------------- ------------- --------- THE HARTFORD EQUITY INCOME FUND For the Year Ended October 31, 2006 Class A................................ $ 529,664 1.30% 1.00% 2.02% 24% Class B................................ 43,198 2.14 1.84 1.19 -- Class C................................ 61,572 2.01 1.71 1.33 -- Class Y................................ 7,593 0.88 0.58 2.26 -- From August 31, 2006, (commencement of operations) through October 31, 2006 Class I................................ 106 1.37(e) 0.80(e) 1.32(e) -- For the Year Ended October 31, 2005 Class A................................ 379,604 1.34 0.51 2.41 23 Class B................................ 33,989 2.18 1.38 1.53 -- Class C................................ 53,435 2.03 1.23 1.70 -- Class Y................................ 784 0.91 0.11 2.79 -- For the Year Ended October 31, 2004 Class A................................ 211,826 1.40 0.56 2.26 22 Class B................................ 18,438 2.20 1.37 1.46 -- Class C................................ 44,043 2.02 1.19 1.64 -- Class Y................................ 375 0.91 0.11 2.73 -- From inception August 28, 2003, through October 31, 2003 Class A................................ 26,649 1.53(e) 0.73(e) 1.81(e) 1 Class B................................ 2,421 2.27(e) 1.47(e) 1.10(e) -- Class C................................ 7,639 2.15(e) 1.35(e) 1.23(e) -- Class Y................................ 104 0.93(e) 0.13(e) 2.17(e) -- THE HARTFORD FLOATING RATE FUND For the Year Ended October 31, 2006 Class A................................ 1,500,394 0.98 0.50 6.71 33 Class B................................ 42,182 1.83 1.35 5.84 -- Class C................................ 828,910 1.77 1.28 5.93 -- Class Y................................ 50,896 0.65 0.15 6.89 -- From August 31, 2006, (commencement of operations) through October 31, 2006 Class I................................ 61,805 0.74(e) 0.43(e) 7.99(e) -- From April 29, 2005, (commencement of operations) through October 31, 2005 Class A................................ 169,485 1.03(e) 0.29(e) 5.68(e) 15 Class B................................ 5,659 1.89(e) 1.04(e) 4.91(e) -- Class C................................ 92,710 1.79(e) 1.02(e) 5.03(e) -- Class Y................................ 10,062 0.73(e) 0.01(e) 6.06(e) --
--------------- (a) Information presented relates to a share outstanding throughout the indicated period. (b) 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. (c) Portfolio turnover rate is calculated on the basis of the Fund as a whole without distinguishing between the classes of shares issued. (d) Ratios do not include fees paid indirectly. Please see Note 3(d). (e) Annualized. (f) Not annualized. The accompanying notes are an integral part of these financial statements. 340 THE HARTFORD MUTUAL FUNDS, INC. AND THE HARTFORD MUTUAL FUNDS II, INC. FINANCIAL HIGHLIGHTS --------------------------------------------------------------------------------
-- SELECTED PER-SHARE DATA(A) -- RATIOS AND SUPPLEMENTAL DATA -- ------------------------------------------------------------------------------- NET REALIZED AND DISTRIBUTIONS NET ASSET NET UNREALIZED TOTAL DIVIDENDS FROM VALUE AT INVESTMENT GAIN FROM FROM NET REALIZED BEGINNING INCOME (LOSS) ON INVESTMENT INVESTMENT CAPITAL OF PERIOD (LOSS) INVESTMENTS OPERATIONS INCOME GAINS --------- ---------- ------------ ---------- ---------- ------------- THE HARTFORD FOCUS FUND For the Year Ended October 31, 2006 Class A................................ $10.26 $ 0.02 $ 0.81 $ 0.83 $(0.07) $ -- Class B................................ 9.94 (0.06) 0.78 0.72 -- -- Class C................................ 9.94 (0.07) 0.80 0.73 -- -- Class Y................................ 10.44 0.04 0.85 0.89 (0.11) -- For the Year Ended October 31, 2005 Class A................................ 9.14 0.08 1.04 1.12 -- -- Class B................................ 8.92 (0.01) 1.03 1.02 -- -- Class C................................ 8.92 (0.01) 1.03 1.02 -- -- Class Y................................ 9.28 0.13 1.06 1.19 (0.03) -- For the Year Ended October 31, 2004 Class A................................ 8.94 (0.02) 0.22 0.20 -- -- Class B................................ 8.79 (0.10) 0.23 0.13 -- -- Class C................................ 8.78 (0.09) 0.23 0.14 -- -- Class Y................................ 9.04 0.03 0.21 0.24 -- -- For the Year Ended October 31, 2003 Class A................................ 7.32 (0.02) 1.64 1.62 -- -- Class B................................ 7.25 (0.08) 1.62 1.54 -- -- Class C................................ 7.24 (0.08) 1.62 1.54 -- -- Class Y................................ 7.37 0.01 1.66 1.67 -- -- For the Year Ended October 31, 2002(h) Class A................................ 8.82 (0.05) (1.45) (1.50) -- -- Class B................................ 8.79 (0.12) (1.42) (1.54) -- -- Class C................................ 8.79 (0.12) (1.43) (1.55) -- -- Class Y................................ 8.83 -- (1.46) (1.46) -- -- -- SELECTED PER-SHARE DATA(A) -- RATIOS AND SUPPLEMENTAL DATA -- -------------------------------------------------------------------- NET INCREASE NET ASSET DISTRIBUTIONS (DECREASE) VALUE AT FROM TOTAL IN NET ASSET END OF TOTAL CAPITAL DISTRIBUTIONS VALUE PERIOD RETURN(B) ------------- ------------- ------------ --------- --------- THE HARTFORD FOCUS FUND For the Year Ended October 31, 2006 Class A................................ $ -- $(0.07) $ 0.76 $11.02 8.07% Class B................................ -- -- 0.72 10.66 7.24 Class C................................ -- -- 0.73 10.67 7.34 Class Y................................ -- (0.11) 0.78 11.22 8.57 For the Year Ended October 31, 2005 Class A................................ -- -- 1.12 10.26 12.31 Class B................................ -- -- 1.02 9.94 11.44 Class C................................ -- -- 1.02 9.94 11.44 Class Y................................ -- (0.03) 1.16 10.44 12.86 For the Year Ended October 31, 2004 Class A................................ -- -- 0.20 9.14 2.24(i) Class B................................ -- -- 0.13 8.92 1.48(i) Class C................................ -- -- 0.14 8.92 1.59(i) Class Y................................ -- -- 0.24 9.28 2.65 For the Year Ended October 31, 2003 Class A................................ -- -- 1.62 8.94 22.13 Class B................................ -- -- 1.54 8.79 21.24 Class C................................ -- -- 1.54 8.78 21.27 Class Y................................ -- -- 1.67 9.04 22.66 For the Year Ended October 31, 2002(h) Class A................................ -- -- (1.50) 7.32 (17.01) Class B................................ -- -- (1.54) 7.25 (17.52) Class C................................ -- -- (1.55) 7.24 (17.63) Class Y................................ -- -- (1.46) 7.37 (16.54) -- SELECTED PER-SHARE DATA(A) -- RATIOS AND SUPPLEMENTAL DATA -- ---------------------------------------------------------------------------------- RATIO OF RATIO OF EXPENSES EXPENSES RATIO OF TO AVERAGE TO AVERAGE NET NET ASSETS NET ASSETS NET ASSETS INVESTMENT AT END OF BEFORE AFTER INCOME (LOSS) PORTFOLIO PERIOD WAIVERS AND WAIVERS AND TO AVERAGE TURNOVER (000'S) REIMBURSEMENTS(D) REIMBURSEMENTS(D) NET ASSETS RATE(C) ---------- ----------------- ----------------- ------------- --------- THE HARTFORD FOCUS FUND For the Year Ended October 31, 2006 Class A................................ $40,215 1.68% 1.50% 0.14% 123% Class B................................ 13,162 2.47 2.25 (0.61) -- Class C................................ 13,065 2.39 2.25 (0.61) -- Class Y................................ 487 1.18 1.07 0.56 -- For the Year Ended October 31, 2005 Class A................................ 50,067 1.65 1.60(i) 0.68 112 Class B................................ 15,156 2.45 2.35(i) (0.09) -- Class C................................ 16,737 2.36 2.35(i) (0.05) -- Class Y................................ 473 1.16 1.16(i) 1.27 -- For the Year Ended October 31, 2004 Class A................................ 67,212 1.62 1.62(i) (0.25) 104 Class B................................ 18,610 2.36 2.35(i) (0.98) -- Class C................................ 23,901 2.28 2.28(i) (0.91) -- Class Y................................ 815 1.11 1.11(i) 0.27 -- For the Year Ended October 31, 2003 Class A................................ 70,002 1.76 1.65 (0.29) 138 Class B................................ 21,058 2.49 2.35 (1.00) -- Class C................................ 27,158 2.36 2.35 (0.99) -- Class Y................................ 719 1.17 1.17 0.17 -- For the Year Ended October 31, 2002(h) Class A................................ 66,432 1.76 1.65 (0.53) 215 Class B................................ 18,862 2.43 2.35 (1.23) -- Class C................................ 25,847 2.34 2.34 (1.22) -- Class Y................................ 509 1.14 1.14 0.09 --
--------------- (a) Information presented relates to a share outstanding throughout the indicated period. (b) 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. (c) Portfolio turnover rate is calculated on the basis of the Fund as a whole without distinguishing between the classes of shares issued. (d) Ratios do not include fees paid indirectly. Please see Note 3(d). (h) Per share amounts have been calculated using average shares outstanding method. (i) Without the inclusion of the Payment from Affiliate, the total return would have been 2.21%, 1.48% and 1.53% for classes A, B and C, respectively. The net asset value impact of the Payment from Affiliate was less than $0.01 for Class A and B and $0.01 for Class C. The accompanying notes are an integral part of these financial statements. 341 THE HARTFORD MUTUAL FUNDS, INC. AND THE HARTFORD MUTUAL FUNDS II, INC. FINANCIAL HIGHLIGHTS --------------------------------------------------------------------------------
-- SELECTED PER-SHARE DATA(A) -- RATIOS AND SUPPLEMENTAL DATA -- ------------------------------------------------------------------------------- NET REALIZED AND DISTRIBUTIONS NET ASSET NET UNREALIZED TOTAL DIVIDENDS FROM VALUE AT INVESTMENT GAIN FROM FROM NET REALIZED BEGINNING INCOME (LOSS) ON INVESTMENT INVESTMENT CAPITAL OF PERIOD (LOSS) INVESTMENTS OPERATIONS INCOME GAINS --------- ---------- ------------ ---------- ---------- ------------- THE HARTFORD GLOBAL COMMUNICATIONS FUND For the Year Ended October 31, 2006 Class A................................ $7.12 $ 0.15 $ 0.88 $ 1.03 $(0.10) $ -- Class B................................ 6.92 0.09 0.87 0.96 (0.07) -- Class C................................ 6.91 0.06 0.88 0.94 (0.05) -- Class Y................................ 7.27 0.17 0.92 1.09 (0.13) -- For the Year Ended October 31, 2005 Class A................................ 5.48 0.09 1.60 1.69 (0.05) -- Class B................................ 5.34 0.05 1.55 1.60 (0.02) -- Class C................................ 5.33 0.05 1.55 1.60 (0.02) -- Class Y................................ 5.60 0.02 1.73 1.75 (0.08) -- For the Year Ended October 31, 2004(h) Class A................................ 4.67 0.06 0.75 0.81 -- -- Class B................................ 4.58 0.02 0.74 0.76 -- -- Class C................................ 4.57 0.02 0.74 0.76 -- -- Class Y................................ 4.74 0.09 0.77 0.86 -- -- For the Year Ended October 31, 2003 Class A................................ 3.24 (0.01) 1.44 1.43 -- -- Class B................................ 3.19 (0.03) 1.42 1.39 -- -- Class C................................ 3.19 (0.03) 1.41 1.38 -- -- Class Y................................ 3.26 0.01 1.47 1.48 -- -- For the Year Ended October 31, 2002(h) Class A................................ 4.57 -- (1.33) (1.33) -- -- Class B................................ 4.54 (0.04) (1.31) (1.35) -- -- Class C................................ 4.54 (0.04) (1.31) (1.35) -- -- Class Y................................ 4.60 -- (1.34) (1.34) -- -- -- SELECTED PER-SHARE DATA(A) -- RATIOS AND SUPPLEMENTAL DATA -- -------------------------------------------------------------------- NET INCREASE NET ASSET DISTRIBUTIONS (DECREASE) VALUE AT FROM TOTAL IN NET ASSET END TOTAL CAPITAL DISTRIBUTIONS VALUE OF PERIOD RETURN(B) ------------- ------------- ------------ --------- --------- THE HARTFORD GLOBAL COMMUNICATIONS FUND For the Year Ended October 31, 2006 Class A................................ $ -- $(0.10) $ 0.93 $8.05 14.60% Class B................................ -- (0.07) 0.89 7.81 13.93 Class C................................ -- (0.05) 0.89 7.80 13.74 Class Y................................ -- (0.13) 0.96 8.23 15.14 For the Year Ended October 31, 2005 Class A................................ -- (0.05) 1.64 7.12 31.01 Class B................................ -- (0.02) 1.58 6.92 29.92 Class C................................ -- (0.02) 1.58 6.91 29.97 Class Y................................ -- (0.08) 1.67 7.27 31.36 For the Year Ended October 31, 2004(h) Class A................................ -- -- 0.81 5.48 17.34 Class B................................ -- -- 0.76 5.34 16.59 Class C................................ -- -- 0.76 5.33 16.63 Class Y................................ -- -- 0.86 5.60 18.14 For the Year Ended October 31, 2003 Class A................................ -- -- 1.43 4.67 44.14 Class B................................ -- -- 1.39 4.58 43.57 Class C................................ -- -- 1.38 4.57 43.26 Class Y................................ -- -- 1.48 4.74 45.40 For the Year Ended October 31, 2002(h) Class A................................ -- -- (1.33) 3.24 (29.10) Class B................................ -- -- (1.35) 3.19 (29.74) Class C................................ -- -- (1.35) 3.19 (29.74) Class Y................................ -- -- (1.34) 3.26 (29.13) -- SELECTED PER-SHARE DATA(A) -- RATIOS AND SUPPLEMENTAL DATA -- ------------------------------------------------------------------------------ RATIO OF RATIO OF EXPENSES EXPENSES RATIO OF TO AVERAGE TO AVERAGE NET NET ASSETS NET ASSETS NET ASSETS INVESTMENT AT END OF BEFORE AFTER INCOME (LOSS) PORTFOLIO PERIOD WAIVERS AND WAIVERS AND TO AVERAGE TURNOVER (000'S) REIMBURSEMENTS(D) REIMBURSEMENTS(D) NET ASSETS RATE(C) ---------- ----------------- ----------------- ------------- --------- THE HARTFORD GLOBAL COMMUNICATIONS FUND For the Year Ended October 31, 2006 Class A................................ $17,091 1.89% 1.15% 1.83% 104% Class B................................ 4,124 2.87 1.78 1.18 -- Class C................................ 5,321 2.74 1.90 1.01 -- Class Y................................ 992 1.41 0.75 2.09 -- For the Year Ended October 31, 2005 Class A................................ 15,986 2.01 1.51 1.75 45 Class B................................ 2,815 3.22 2.26 1.02 -- Class C................................ 2,765 2.94 2.25 1.08 -- Class Y................................ 638 1.36 1.06 2.10 -- For the Year Ended October 31, 2004(h) Class A................................ 8,929 1.93 1.65 1.08 85 Class B................................ 1,482 3.32 2.35 0.37 -- Class C................................ 1,306 2.97 2.35 0.43 -- Class Y................................ 170 1.30 1.20 1.69 -- For the Year Ended October 31, 2003 Class A................................ 6,419 1.95 1.65 (0.08) 100 Class B................................ 1,555 2.68 2.35 (0.79) -- Class C................................ 1,305 2.55 2.35 (0.77) -- Class Y................................ 724 1.35 1.20 0.38 -- For the Year Ended October 31, 2002(h) Class A................................ 3,506 2.03 1.65 (0.10) 84 Class B................................ 846 2.70 2.35 (0.80) -- Class C................................ 736 2.57 2.35 (0.78) -- Class Y................................ 481 1.27 1.20 0.40 --
--------------- (a) Information presented relates to a share outstanding throughout the indicated period. (b) 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. (c) Portfolio turnover rate is calculated on the basis of the Fund as a whole without distinguishing between the classes of shares issued. (d) Ratios do not include fees paid indirectly. Please see Note 3(d). (h) Per share amounts have been calculated using average shares outstanding method. The accompanying notes are an integral part of these financial statements. 342 THE HARTFORD MUTUAL FUNDS, INC. AND THE HARTFORD MUTUAL FUNDS II, INC. FINANCIAL HIGHLIGHTS --------------------------------------------------------------------------------
-- SELECTED PER-SHARE DATA(A) -- RATIOS AND SUPPLEMENTAL DATA -- ------------------------------------------------------------------------------- NET REALIZED AND DISTRIBUTIONS NET ASSET NET UNREALIZED TOTAL DIVIDENDS FROM VALUE AT INVESTMENT GAIN FROM FROM NET REALIZED BEGINNING INCOME (LOSS) ON INVESTMENT INVESTMENT CAPITAL OF PERIOD (LOSS) INVESTMENTS OPERATIONS INCOME GAINS --------- ---------- ------------ ---------- ---------- ------------- THE HARTFORD GLOBAL FINANCIAL SERVICES FUND For the Year Ended October 31, 2006 Class A................................ $11.60 $ 0.12 $ 2.40 $ 2.52 $(0.11) $ -- Class B................................ 11.39 0.08 2.31 2.39 (0.04) -- Class C................................ 11.39 0.05 2.32 2.37 (0.03) -- Class Y................................ 11.73 0.19 2.40 2.59 (0.16) -- For the Year Ended October 31, 2005 Class A................................ 10.44 0.11 1.18 1.29 (0.13) -- Class B................................ 10.26 0.01 1.18 1.19 (0.06) -- Class C................................ 10.26 0.02 1.17 1.19 (0.06) -- Class Y................................ 10.55 0.12 1.24 1.36 (0.18) -- For the Year Ended October 31, 2004(h) Class A................................ 9.71 0.12 0.69 0.81 (0.08) -- Class B................................ 9.55 0.05 0.69 0.74 (0.03) -- Class C................................ 9.55 0.05 0.69 0.74 (0.03) -- Class Y................................ 9.79 0.17 0.71 0.88 (0.12) -- For the Year Ended October 31, 2003 Class A................................ 8.03 0.07 1.65 1.72 (0.04) -- Class B................................ 7.92 0.02 1.61 1.63 -- -- Class C................................ 7.92 0.02 1.61 1.63 -- -- Class Y................................ 8.10 0.13 1.64 1.77 (0.08) -- For the Year Ended October 31, 2002(h) Class A................................ 9.37 0.04 (1.38) (1.34) -- -- Class B................................ 9.30 (0.02) (1.36) (1.38) -- -- Class C................................ 9.30 (0.02) (1.36) (1.38) -- -- Class Y................................ 9.41 0.08 (1.39) (1.31) -- -- -- SELECTED PER-SHARE DATA(A) -- RATIOS AND SUPPLEMENTAL DATA -- -------------------------------------------------------------------- NET INCREASE NET ASSET DISTRIBUTIONS (DECREASE) VALUE AT FROM TOTAL IN NET ASSET END TOTAL CAPITAL DISTRIBUTIONS VALUE OF PERIOD RETURN(B) ------------- ------------- ------------ --------- --------- THE HARTFORD GLOBAL FINANCIAL SERVICES FUND For the Year Ended October 31, 2006 Class A................................ $ -- $(0.11) $ 2.41 $14.01 21.87% Class B................................ -- (0.04) 2.35 13.74 21.06 Class C................................ -- (0.03) 2.34 13.73 20.88 Class Y................................ -- (0.16) 2.43 14.16 22.24 For the Year Ended October 31, 2005 Class A................................ -- (0.13) 1.16 11.60 12.39 Class B................................ -- (0.06) 1.13 11.39 11.58 Class C................................ -- (0.06) 1.13 11.39 11.58 Class Y................................ -- (0.18) 1.18 11.73 12.91 For the Year Ended October 31, 2004(h) Class A................................ -- (0.08) 0.73 10.44 8.42 Class B................................ -- (0.03) 0.71 10.26 7.71 Class C................................ -- (0.03) 0.71 10.26 7.71 Class Y................................ -- (0.12) 0.76 10.55 9.06 For the Year Ended October 31, 2003 Class A................................ -- (0.04) 1.68 9.71 21.48 Class B................................ -- -- 1.63 9.55 20.58 Class C................................ -- -- 1.63 9.55 20.58 Class Y................................ -- (0.08) 1.69 9.79 22.01 For the Year Ended October 31, 2002(h) Class A................................ -- -- (1.34) 8.03 (14.30) Class B................................ -- -- (1.38) 7.92 (14.84) Class C................................ -- -- (1.38) 7.92 (14.84) Class Y................................ -- -- (1.31) 8.10 (13.92) -- SELECTED PER-SHARE DATA(A) -- RATIOS AND SUPPLEMENTAL DATA -- ------------------------------------------------------------------------------ RATIO OF RATIO OF EXPENSES EXPENSES RATIO OF TO AVERAGE TO AVERAGE NET NET ASSETS NET ASSETS NET ASSETS INVESTMENT AT END OF BEFORE AFTER INCOME (LOSS) PORTFOLIO PERIOD WAIVERS AND WAIVERS AND TO AVERAGE TURNOVER (000'S) REIMBURSEMENTS(D) REIMBURSEMENTS(D) NET ASSETS RATE(C) ---------- ----------------- ----------------- ------------- --------- THE HARTFORD GLOBAL FINANCIAL SERVICES FUND For the Year Ended October 31, 2006 Class A................................ $21,369 1.80% 1.15% 1.11% 52% Class B................................ 3,828 2.81 1.78 0.49 -- Class C................................ 4,082 2.65 1.90 0.35 -- Class Y................................ 942 1.34 0.75 1.52 -- For the Year Ended October 31, 2005 Class A................................ 13,958 1.88 1.51 0.91 33 Class B................................ 3,147 2.91 2.28 0.15 -- Class C................................ 2,769 2.77 2.27 0.16 -- Class Y................................ 773 1.36 1.09 1.30 -- For the Year Ended October 31, 2004(h) Class A................................ 12,910 1.78 1.65 1.17 85 Class B................................ 3,043 2.80 2.35 0.44 -- Class C................................ 2,459 2.68 2.35 0.44 -- Class Y................................ 642 1.27 1.20 1.54 -- For the Year Ended October 31, 2003 Class A................................ 12,652 1.90 1.65 0.93 93 Class B................................ 3,681 2.62 2.35 0.22 -- Class C................................ 3,197 2.50 2.35 0.23 -- Class Y................................ 1,580 1.31 1.20 1.38 -- For the Year Ended October 31, 2002(h) Class A................................ 9,739 1.98 1.65 0.51 76 Class B................................ 2,755 2.68 2.35 (0.20) -- Class C................................ 2,548 2.54 2.35 (0.20) -- Class Y................................ 1,435 1.25 1.20 0.96 --
--------------- (a) Information presented relates to a share outstanding throughout the indicated period. (b) 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. (c) Portfolio turnover rate is calculated on the basis of the Fund as a whole without distinguishing between the classes of shares issued. (d) Ratios do not include fees paid indirectly. Please see Note 3(d). (h) Per share amounts have been calculated using average shares outstanding method. The accompanying notes are an integral part of these financial statements. 343 THE HARTFORD MUTUAL FUNDS, INC. AND THE HARTFORD MUTUAL FUNDS II, INC. FINANCIAL HIGHLIGHTS --------------------------------------------------------------------------------
-- SELECTED PER-SHARE DATA(A) -- RATIOS AND SUPPLEMENTAL DATA -- ------------------------------------------------------------------------------- NET REALIZED AND DISTRIBUTIONS NET ASSET NET UNREALIZED TOTAL DIVIDENDS FROM VALUE AT INVESTMENT GAIN FROM FROM NET REALIZED BEGINNING INCOME (LOSS) ON INVESTMENT INVESTMENT CAPITAL OF PERIOD (LOSS) INVESTMENTS OPERATIONS INCOME GAINS --------- ---------- ------------ ---------- ---------- ------------- THE HARTFORD GLOBAL HEALTH FUND For the Year Ended October 31, 2006 Class A................................ $16.50 $(0.07) $ 2.41 $ 2.34 $ -- $(1.00) Class B................................ 15.81 (0.20) 2.31 2.11 -- (1.00) Class C................................ 15.81 (0.18) 2.30 2.12 -- (1.00) Class Y................................ 17.05 (0.01) 2.53 2.52 -- (1.00) From August 31, 2006, (commencement of operations) through October 31, 2006 Class I................................ 17.34 -- 0.52 0.52 -- -- For the Year Ended October 31, 2005 Class A................................ 15.00 (0.08) 2.35 2.27 -- (0.77) Class B................................ 14.50 (0.20) 2.28 2.08 -- (0.77) Class C................................ 14.51 (0.19) 2.26 2.07 -- (0.77) Class Y................................ 15.41 (0.01) 2.42 2.41 -- (0.77) For the Year Ended October 31, 2004 Class A................................ 13.80 (0.10) 1.36 1.26 -- (0.06) Class B................................ 13.43 (0.20) 1.33 1.13 -- (0.06) Class C................................ 13.44 (0.20) 1.33 1.13 -- (0.06) Class Y................................ 14.09 (0.02) 1.40 1.38 -- (0.06) For the Year Ended October 31, 2003 Class A................................ 11.42 (0.07) 2.75 2.68 -- (0.30) Class B................................ 11.20 (0.15) 2.68 2.53 -- (0.30) Class C................................ 11.21 (0.15) 2.68 2.53 -- (0.30) Class Y................................ 11.61 (0.02) 2.80 2.78 -- (0.30) For the Year Ended October 31, 2002(h) Class A................................ 13.47 (0.09) (1.68) (1.77) -- (0.28) Class B................................ 13.31 (0.18) (1.65) (1.83) -- (0.28) Class C................................ 13.32 (0.18) (1.65) (1.83) -- (0.28) Class Y................................ 13.58 (0.02) (1.67) (1.69) -- (0.28) -- SELECTED PER-SHARE DATA(A) -- RATIOS AND SUPPLEMENTAL DATA -- -------------------------------------------------------------------- NET INCREASE NET ASSET DISTRIBUTIONS (DECREASE) VALUE AT FROM TOTAL IN NET ASSET END OF TOTAL CAPITAL DISTRIBUTIONS VALUE PERIOD RETURN(B) ------------- ------------- ------------ --------- --------- THE HARTFORD GLOBAL HEALTH FUND For the Year Ended October 31, 2006 Class A................................ $ -- $(1.00) $ 1.34 $17.84 14.96% Class B................................ -- (1.00) 1.11 16.92 14.10 Class C................................ -- (1.00) 1.12 16.93 14.17 Class Y................................ -- (1.00) 1.52 18.57 15.56 From August 31, 2006, (commencement of operations) through October 31, 2006 Class I................................ -- -- 0.52 17.86 3.00(f) For the Year Ended October 31, 2005 Class A................................ -- (0.77) 1.50 16.50 15.67 Class B................................ -- (0.77) 1.31 15.81 14.86 Class C................................ -- (0.77) 1.30 15.81 14.78 Class Y................................ -- (0.77) 1.64 17.05 16.19 For the Year Ended October 31, 2004 Class A................................ -- (0.06) 1.20 15.00 9.21 Class B................................ -- (0.06) 1.07 14.50 8.49 Class C................................ -- (0.06) 1.07 14.51 8.49 Class Y................................ -- (0.06) 1.32 15.41 9.88 For the Year Ended October 31, 2003 Class A................................ -- (0.30) 2.38 13.80 24.02 Class B................................ -- (0.30) 2.23 13.43 23.13 Class C................................ -- (0.30) 2.23 13.44 23.11 Class Y................................ -- (0.30) 2.48 14.09 24.50 For the Year Ended October 31, 2002(h) Class A................................ -- (0.28) (2.05) 11.42 (13.43) Class B................................ -- (0.28) (2.11) 11.20 (14.05) Class C................................ -- (0.28) (2.11) 11.21 (14.08) Class Y................................ -- (0.28) (1.97) 11.61 (12.68) -- SELECTED PER-SHARE DATA(A) -- RATIOS AND SUPPLEMENTAL DATA -- ---------------------------------------------------------------------------------- RATIO OF RATIO OF EXPENSES EXPENSES RATIO OF TO AVERAGE TO AVERAGE NET NET ASSETS NET ASSETS NET ASSETS INVESTMENT AT END OF BEFORE AFTER INCOME (LOSS) PORTFOLIO PERIOD WAIVERS AND WAIVERS AND TO AVERAGE TURNOVER (000'S) REIMBURSEMENTS(D) REIMBURSEMENTS(D) NET ASSETS RATE(C) ---------- ----------------- ----------------- ------------- --------- THE HARTFORD GLOBAL HEALTH FUND For the Year Ended October 31, 2006 Class A................................ $370,285 1.61% 1.60% (0.53)% 30% Class B................................ 80,574 2.45 2.32 (1.27) -- Class C................................ 97,956 2.31 2.31 (1.25) -- Class Y................................ 192,814 1.08 1.08 (0.03) -- From August 31, 2006, (commencement of operations) through October 31, 2006 Class I................................ 785 1.26(e) 1.15(e) (0.20)(e) -- For the Year Ended October 31, 2005 Class A................................ 209,835 1.71 1.60 (0.55) 50 Class B................................ 71,204 2.52 2.35 (1.30) -- Class C................................ 72,546 2.36 2.35 (1.30) -- Class Y................................ 169,698 1.08 1.08 (0.12) -- For the Year Ended October 31, 2004 Class A................................ 170,672 1.81 1.65 (0.68) 41 Class B................................ 66,035 2.55 2.35 (1.38) -- Class C................................ 61,390 2.37 2.35 (1.38) -- Class Y................................ 1,299 1.12 1.12 (0.14) -- For the Year Ended October 31, 2003 Class A................................ 126,630 1.76 1.65 (0.62) 37 Class B................................ 56,378 2.49 2.35 (1.31) -- Class C................................ 51,606 2.36 2.35 (1.31) -- Class Y................................ 1,095 1.19 1.19 (0.15) -- For the Year Ended October 31, 2002(h) Class A................................ 101,881 1.79 1.65 (0.70) 63 Class B................................ 45,659 2.48 2.35 (1.40) -- Class C................................ 43,042 2.35 2.35 (1.40) -- Class Y................................ 881 1.17 1.17 (0.22) --
--------------- (a) Information presented relates to a share outstanding throughout the indicated period. (b) 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. (c) Portfolio turnover rate is calculated on the basis of the Fund as a whole without distinguishing between the classes of shares issued. (d) Ratios do not include fees paid indirectly. Please see Note 3(d). (e) Annualized. (f) Not annualized. (h) Per share amounts have been calculated using average shares outstanding method. The accompanying notes are an integral part of these financial statements. 344 THE HARTFORD MUTUAL FUNDS, INC. AND THE HARTFORD MUTUAL FUNDS II, INC. FINANCIAL HIGHLIGHTS --------------------------------------------------------------------------------
-- SELECTED PER-SHARE DATA(A) -- RATIOS AND SUPPLEMENTAL DATA -- ------------------------------------------------------------------------------- NET REALIZED AND DISTRIBUTIONS NET ASSET NET UNREALIZED TOTAL DIVIDENDS FROM VALUE AT INVESTMENT GAIN FROM FROM NET REALIZED BEGINNING INCOME (LOSS) ON INVESTMENT INVESTMENT CAPITAL OF PERIOD (LOSS) INVESTMENTS OPERATIONS INCOME GAINS --------- ---------- ------------ ---------- ---------- ------------- THE HARTFORD GLOBAL LEADERS FUND For the Year Ended October 31, 2006(h) Class A................................ $16.80 $(0.05) $ 2.81 $ 2.76 $(0.02) $(0.19) Class B................................ 15.93 (0.17) 2.66 2.49 -- (0.19) Class C................................ 16.01 (0.17) 2.66 2.49 -- (0.19) Class Y................................ 17.46 0.06 2.91 2.97 (0.10) (0.19) For the Year Ended October 31, 2005 Class A................................ 16.49 0.08 0.23 0.31 -- -- Class B................................ 15.77 (0.08) 0.24 0.16 -- -- Class C................................ 15.84 (0.06) 0.23 0.17 -- -- Class Y................................ 17.06 0.13 0.27 0.40 -- -- For the Year Ended October 31, 2004 Class A................................ 13.96 (0.06) 2.59 2.53 -- -- Class B................................ 13.45 (0.17) 2.49 2.32 -- -- Class C................................ 13.49 (0.15) 2.50 2.35 -- -- Class Y................................ 14.34 0.03 2.69 2.72 -- -- For the Year Ended October 31, 2003 Class A................................ 11.21 (0.03) 2.78 2.75 -- -- Class B................................ 10.88 (0.12) 2.69 2.57 -- -- Class C................................ 10.90 (0.11) 2.70 2.59 -- -- Class Y................................ 11.45 0.03 2.86 2.89 -- -- For the Year Ended October 31, 2002(h) Class A................................ 12.83 0.02 (1.64) (1.62) -- -- Class B................................ 12.54 (0.07) (1.59) (1.66) -- -- Class C................................ 12.55 (0.06) (1.59) (1.65) -- -- Class Y................................ 13.03 0.05 (1.63) (1.58) -- -- -- SELECTED PER-SHARE DATA(A) -- RATIOS AND SUPPLEMENTAL DATA -- -------------------------------------------------------------------- NET INCREASE NET ASSET DISTRIBUTIONS (DECREASE) VALUE AT FROM TOTAL IN NET ASSET END OF TOTAL CAPITAL DISTRIBUTIONS VALUE PERIOD RETURN(B) ------------- ------------- ------------ --------- --------- THE HARTFORD GLOBAL LEADERS FUND For the Year Ended October 31, 2006(h) Class A................................ $ -- $(0.21) $ 2.55 $19.35 16.58% Class B................................ -- (0.19) 2.30 18.23 15.80 Class C................................ -- (0.19) 2.30 18.31 15.72 Class Y................................ -- (0.29) 2.68 20.14 17.25 For the Year Ended October 31, 2005 Class A................................ -- -- 0.31 16.80 1.88 Class B................................ -- -- 0.16 15.93 1.02 Class C................................ -- -- 0.17 16.01 1.07 Class Y................................ -- -- 0.40 17.46 2.34 For the Year Ended October 31, 2004 Class A................................ -- -- 2.53 16.49 18.12 Class B................................ -- -- 2.32 15.77 17.25 Class C................................ -- -- 2.35 15.84 17.42 Class Y................................ -- -- 2.72 17.06 18.97 For the Year Ended October 31, 2003 Class A................................ -- -- 2.75 13.96 24.53 Class B................................ -- -- 2.57 13.45 23.62 Class C................................ -- -- 2.59 13.49 23.76 Class Y................................ -- -- 2.89 14.34 25.24 For the Year Ended October 31, 2002(h) Class A................................ -- -- (1.62) 11.21 (12.63) Class B................................ -- -- (1.66) 10.88 (13.24) Class C................................ -- -- (1.65) 10.90 (13.15) Class Y................................ -- -- (1.58) 11.45 (12.13) -- SELECTED PER-SHARE DATA(A) -- RATIOS AND SUPPLEMENTAL DATA -- ---------------------------------------------------------------------------------- RATIO OF RATIO OF EXPENSES EXPENSES RATIO OF TO AVERAGE TO AVERAGE NET NET ASSETS NET ASSETS NET ASSETS INVESTMENT AT END OF BEFORE AFTER INCOME (LOSS) PORTFOLIO PERIOD WAIVERS AND WAIVERS AND TO AVERAGE TURNOVER (000'S) REIMBURSEMENTS(D) REIMBURSEMENTS(D) NET ASSETS RATE(C) ---------- ----------------- ----------------- ------------- --------- THE HARTFORD GLOBAL LEADERS FUND For the Year Ended October 31, 2006(h) Class A................................ $417,840 1.53% 1.48% (0.25)% 125% Class B................................ 74,805 2.44 2.18 (0.95) -- Class C................................ 66,121 2.20 2.20 (0.98) -- Class Y................................ 169,270 0.93 0.93 0.31 -- For the Year Ended October 31, 2005 Class A................................ 419,648 1.58 1.48 0.41 270 Class B................................ 78,986 2.51 2.35 (0.45) -- Class C................................ 71,623 2.25 2.25 (0.34) -- Class Y................................ 83,896 0.97 0.97 0.87 -- For the Year Ended October 31, 2004 Class A................................ 466,013 1.62 1.62 (0.36) 271 Class B................................ 90,179 2.52 2.35 (1.09) -- Class C................................ 87,518 2.24 2.24 (0.98) -- Class Y................................ 58,791 0.93 0.93 0.31 -- For the Year Ended October 31, 2003 Class A................................ 464,610 1.62 1.61 (0.29) 320 Class B................................ 78,923 2.36 2.35 (1.01) -- Class C................................ 78,303 2.23 2.23 (0.89) -- Class Y................................ 19,043 1.00 1.00 0.28 -- For the Year Ended October 31, 2002(h) Class A................................ 354,407 1.66 1.61 0.24 323 Class B................................ 70,280 2.33 2.33 (0.48) -- Class C................................ 75,174 2.21 2.21 (0.36) -- Class Y................................ 6,167 1.00 1.00 0.84 --
--------------- (a) Information presented relates to a share outstanding throughout the indicated period. (b) 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. (c) Portfolio turnover rate is calculated on the basis of the Fund as a whole without distinguishing between the classes of shares issued. (d) Ratios do not include fees paid indirectly. Please see Note 3(d). (h) Per share amounts have been calculated using average shares outstanding method. The accompanying notes are an integral part of these financial statements. 345 THE HARTFORD MUTUAL FUNDS, INC. AND THE HARTFORD MUTUAL FUNDS II, INC. FINANCIAL HIGHLIGHTS --------------------------------------------------------------------------------
-- SELECTED PER-SHARE DATA(A) -- RATIOS AND SUPPLEMENTAL DATA -- ------------------------------------------------------------------------------- NET REALIZED AND DISTRIBUTIONS NET ASSET NET UNREALIZED TOTAL DIVIDENDS FROM VALUE AT INVESTMENT GAIN FROM FROM NET REALIZED BEGINNING INCOME (LOSS) ON INVESTMENT INVESTMENT CAPITAL OF PERIOD (LOSS) INVESTMENTS OPERATIONS INCOME GAINS --------- ---------- ------------ ---------- ---------- ------------- THE HARTFORD GLOBAL TECHNOLOGY FUND For the Year Ended October 31, 2006 Class A................................ $ 4.97 $(0.04) $ 0.74 $ 0.70 $ -- $ -- Class B................................ 4.77 (0.08) 0.72 0.64 -- -- Class C................................ 4.77 (0.09) 0.72 0.63 -- -- Class Y................................ 5.09 (0.03) 0.76 0.73 -- -- For the Year Ended October 31, 2005 Class A................................ 4.42 -- 0.55 0.55 -- -- Class B................................ 4.28 (0.04) 0.53 0.49 -- -- Class C................................ 4.28 (0.04) 0.53 0.49 -- -- Class Y................................ 4.51 0.03 0.55 0.58 -- -- For the Year Ended October 31, 2004 Class A................................ 4.68 (0.07) (0.19) (0.26) -- -- Class B................................ 4.56 (0.10) (0.18) (0.28) -- -- Class C................................ 4.56 (0.11) (0.17) (0.28) -- -- Class Y................................ 4.75 (0.04) (0.20) (0.24) -- -- For the Year Ended October 31, 2003 Class A................................ 2.98 (0.04) 1.74 1.70 -- -- Class B................................ 2.92 (0.06) 1.70 1.64 -- -- Class C................................ 2.92 (0.06) 1.70 1.64 -- -- Class Y................................ 3.01 (0.03) 1.77 1.74 -- -- For the Year Ended October 31, 2002(f) Class A................................ 4.01 (0.12) (0.91) (1.03) -- -- Class B................................ 3.96 (0.18) (0.86) (1.04) -- -- Class C................................ 3.97 (0.19) (0.86) (1.05) -- -- Class Y................................ 4.04 (0.14) (0.89) (1.03) -- -- THE HARTFORD GROWTH ALLOCATION FUND(G) For the Year Ended October 31, 2006 Class A................................ 11.27 0.07 1.46 1.53 (0.13) (0.01) Class B................................ 11.19 0.03 1.42 1.45 (0.06) (0.01) Class C................................ 11.19 0.03 1.42 1.45 (0.06) (0.01) From August 31, 2006, (commencement of operations) through October 31, 2006 Class I................................ 12.16 (0.01) 0.52 0.51 -- -- For the Year Ended October 31, 2005 Class A................................ 10.36 0.05 0.89 0.94 (0.03) -- Class B................................ 10.34 (0.01) 0.87 0.86 (0.01) -- Class C................................ 10.33 (0.01) 0.88 0.87 (0.01) -- From May 28, 2004, (commencement of operations) through October 31, 2004 Class A................................ 10.00 -- 0.36 0.36 -- -- Class B................................ 10.00 (0.01) 0.35 0.34 -- -- Class C................................ 10.00 (0.01) 0.34 0.33 -- -- -- SELECTED PER-SHARE DATA(A) -- RATIOS AND SUPPLEMENTAL DATA -- -------------------------------------------------------------------- NET INCREASE NET ASSET DISTRIBUTIONS (DECREASE) VALUE AT FROM TOTAL IN NET ASSET END TOTAL CAPITAL DISTRIBUTIONS VALUE OF PERIOD RETURN(B) ------------- ------------- ------------ --------- --------- THE HARTFORD GLOBAL TECHNOLOGY FUND For the Year Ended October 31, 2006 Class A................................ $-- $ -- $ 0.70 $ 5.67 14.08% Class B................................ -- -- 0.64 5.41 13.42 Class C................................ -- -- 0.63 5.40 13.21 Class Y................................ -- -- 0.73 5.82 14.34 For the Year Ended October 31, 2005 Class A................................ -- -- 0.55 4.97 12.44 Class B................................ -- -- 0.49 4.77 11.45 Class C................................ -- -- 0.49 4.77 11.45 Class Y................................ -- -- 0.58 5.09 12.86 For the Year Ended October 31, 2004 Class A................................ -- -- (0.26) 4.42 (5.56) Class B................................ -- -- (0.28) 4.28 (6.14) Class C................................ -- -- (0.28) 4.28 (6.14) Class Y................................ -- -- (0.24) 4.51 (5.05) For the Year Ended October 31, 2003 Class A................................ -- -- 1.70 4.68 57.05 Class B................................ -- -- 1.64 4.56 56.16 Class C................................ -- -- 1.64 4.56 56.16 Class Y................................ -- -- 1.74 4.75 57.81 For the Year Ended October 31, 2002(f) Class A................................ -- -- (1.03) 2.98 (25.69) Class B................................ -- -- (1.04) 2.92 (26.26) Class C................................ -- -- (1.05) 2.92 (26.45) Class Y................................ -- -- (1.03) 3.01 (25.50) THE HARTFORD GROWTH ALLOCATION FUND(G) For the Year Ended October 31, 2006 Class A................................ -- (0.14) 1.39 12.66 13.64 Class B................................ -- (0.07) 1.38 12.57 12.96 Class C................................ -- (0.07) 1.38 12.57 12.96 From August 31, 2006, (commencement of operations) through October 31, 2006 Class I................................ -- -- 0.51 12.67 4.19(f) For the Year Ended October 31, 2005 Class A................................ -- (0.03) 0.91 11.27 9.12 Class B................................ -- (0.01) 0.85 11.19 8.37 Class C................................ -- (0.01) 0.86 11.19 8.47 From May 28, 2004, (commencement of operations) through October 31, 2004 Class A................................ -- -- 0.36 10.36 3.60(f) Class B................................ -- -- 0.34 10.34 3.40(f) Class C................................ -- -- 0.33 10.33 3.30(f) -- SELECTED PER-SHARE DATA(A) -- RATIOS AND SUPPLEMENTAL DATA -- ------------------------------------------------------------------------------ RATIO OF RATIO OF EXPENSES EXPENSES RATIO OF TO AVERAGE TO AVERAGE NET NET ASSETS NET ASSETS NET ASSETS INVESTMENT AT END OF BEFORE AFTER INCOME (LOSS) PORTFOLIO PERIOD WAIVERS AND WAIVERS AND TO AVERAGE TURNOVER (000'S) REIMBURSEMENTS(D) REIMBURSEMENTS(D) NET ASSETS RATE(C) ---------- ----------------- ----------------- ------------- --------- THE HARTFORD GLOBAL TECHNOLOGY FUND For the Year Ended October 31, 2006 Class A................................ $ 33,424 2.10% 1.36% (0.78)% 144% Class B................................ 12,729 2.96 1.99 (1.41) -- Class C................................ 11,521 2.71 2.24 (1.67) -- Class Y................................ 1,137 1.26 1.20 (0.62) -- For the Year Ended October 31, 2005 Class A................................ 27,620 2.22 1.60 -- 132 Class B................................ 12,409 3.05 2.35 (0.79) -- Class C................................ 10,712 2.75 2.35 (0.65) -- Class Y................................ 938 1.22 1.20 0.58 -- For the Year Ended October 31, 2004 Class A................................ 31,418 2.14 1.65 (1.37) 165 Class B................................ 12,978 2.96 2.35 (2.07) -- Class C................................ 13,891 2.62 2.35 (2.07) -- Class Y................................ 1,186 1.15 1.15 (0.85) -- For the Year Ended October 31, 2003 Class A................................ 32,388 1.77 1.65 (1.28) 163 Class B................................ 13,991 2.50 2.35 (1.98) -- Class C................................ 16,513 2.37 2.35 (1.99) -- Class Y................................ 886 1.18 1.18 (0.82) -- For the Year Ended October 31, 2002(f) Class A................................ 18,321 1.86 1.65 (1.44) 174 Class B................................ 8,170 2.54 2.35 (2.14) -- Class C................................ 9,560 2.39 2.35 (2.15) -- Class Y................................ 512 1.15 1.15 (0.97) -- THE HARTFORD GROWTH ALLOCATION FUND(G) For the Year Ended October 31, 2006 Class A................................ 370,088 0.69 0.67 0.49 13 Class B................................ 107,818 1.51 1.32 (0.15) -- Class C................................ 181,434 1.44 1.32 (0.16) -- From August 31, 2006, (commencement of operations) through October 31, 2006 Class I................................ 10 0.66(e) 0.42(e) 0.16(e) -- For the Year Ended October 31, 2005 Class A................................ 205,331 0.72 0.64 0.42 1 Class B................................ 65,739 1.53 1.29 (0.23) -- Class C................................ 100,339 1.47 1.29 (0.23) -- From May 28, 2004, (commencement of operations) through October 31, 2004 Class A................................ 43,279 0.72(e) 0.63(e) 0.13(e) -- Class B................................ 14,177 1.52(e) 1.28(e) (0.53)(e) -- Class C................................ 21,221 1.44(e) 1.28(e) (0.52)(e) --
--------------- (a) Information presented relates to a share outstanding throughout the indicated period. (b) 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. (c) Portfolio turnover rate is calculated on the basis of the Fund as a whole without distinguishing between the classes of shares issued. (d) Ratios do not include fees paid indirectly. Please see Note 3(d). (e) Annualized. (f) Not annualized. (g) Expense ratios do not include expenses of the underlying funds. The accompanying notes are an integral part of these financial statements. 346 THE HARTFORD MUTUAL FUNDS, INC. AND THE HARTFORD MUTUAL FUNDS II, INC. FINANCIAL HIGHLIGHTS --------------------------------------------------------------------------------
-- SELECTED PER-SHARE DATA(A) -- RATIOS AND SUPPLEMENTAL DATA -- ------------------------------------------------------------------------------- NET REALIZED AND DISTRIBUTIONS NET ASSET NET UNREALIZED TOTAL DIVIDENDS FROM VALUE AT INVESTMENT GAIN FROM FROM NET REALIZED BEGINNING INCOME (LOSS) ON INVESTMENT INVESTMENT CAPITAL OF PERIOD (LOSS) INVESTMENTS OPERATIONS INCOME GAINS --------- ---------- ------------ ---------- ---------- ------------- THE HARTFORD GROWTH FUND For the Year Ended October 31, 2006 Class A................................ $17.32 $(0.07) $ 1.20 $ 1.13 $ -- $ -- Class B................................ 15.38 (0.20) 1.07 0.87 -- -- Class C................................ 15.40 (0.18) 1.07 0.89 -- -- Class H................................ 15.53 (0.16) 1.09 0.93 -- -- Class L................................ 17.50 (0.02) 1.21 1.19 -- -- Class M................................ 15.51 (0.16) 1.09 0.93 -- -- Class N................................ 15.51 (0.15) 1.08 0.93 -- -- Class Y................................ 17.65 0.01 1.23 1.24 -- -- From August 31, 2006, (commencement of operations) through October 31, 2006 Class I................................ 17.64 -- 0.82 0.82 -- -- For the Year Ended October 31, 2005 Class A................................ 16.19 (0.04) 1.17 1.13 -- -- Class B................................ 14.49 (0.15) 1.04 0.89 -- -- Class C................................ 14.50 (0.13) 1.03 0.90 -- -- Class H................................ 14.59 (0.12) 1.06 0.94 -- -- Class L................................ 16.32 0.01 1.17 1.18 -- -- Class M................................ 14.57 (0.11) 1.05 0.94 -- -- Class N................................ 14.57 (0.11) 1.05 0.94 -- -- Class Y................................ 16.42 0.01 1.22 1.23 -- -- For the Year Ended October 31, 2004 Class A................................ 15.19 (0.08) 1.08 1.00 -- -- Class B................................ 13.70 (0.15) 0.94 0.79 -- -- Class C................................ 13.70 (0.12) 0.92 0.80 -- -- Class H................................ 13.74 (0.20) 1.05 0.85 -- -- Class L................................ 15.26 (0.08) 1.14 1.06 -- -- Class M................................ 13.72 (0.19) 1.04 0.85 -- -- Class N................................ 13.72 (0.19) 1.04 0.85 -- -- Class Y................................ 15.31 -- 1.11 1.11 -- -- For the Year Ended October 31, 2003 Class A................................ 11.90 (0.03) 3.32 3.29 -- -- Class B................................ 10.80 (0.07) 2.97 2.90 -- -- Class C................................ 10.80 (0.07) 2.97 2.90 -- -- Class H................................ 10.81 (0.14) 3.07 2.93 -- -- Class L................................ 11.91 (0.05) 3.40 3.35 -- -- Class M................................ 10.80 (0.14) 3.06 2.92 -- -- Class N................................ 10.80 (0.14) 3.06 2.92 -- -- Class Y................................ 11.94 (0.03) 3.40 3.37 -- -- For the Period February 19, 2002 through October 31, 2002 Class A................................ 14.57 (0.02) (2.65) (2.67) -- -- Class B................................ 13.28 (0.04) (2.44) (2.48) -- -- Class C................................ 13.28 (0.04) (2.44) (2.48) -- -- Class Y................................ 14.57 -- (2.63) (2.63) -- -- For the Year Ended October 31, 2002 Class H................................ 13.02 (0.23) (1.98) (2.21) -- -- Class L................................ 14.23 (0.03) (2.29) (2.32) -- -- Class M................................ 13.00 (0.16) (2.04) (2.20) -- -- Class N................................ 13.00 (0.26) (1.94) (2.20) -- -- -- SELECTED PER-SHARE DATA(A) -- RATIOS AND SUPPLEMENTAL DATA -- -------------------------------------------------------------------- NET INCREASE NET ASSET DISTRIBUTIONS (DECREASE) VALUE AT FROM TOTAL IN NET ASSET END TOTAL CAPITAL DISTRIBUTIONS VALUE OF PERIOD RETURN(B) ------------- ------------- ------------ --------- --------- THE HARTFORD GROWTH FUND For the Year Ended October 31, 2006 Class A................................ $-- $ -- $ 1.13 $18.45 6.52% Class B................................ -- -- 0.87 16.25 5.66 Class C................................ -- -- 0.89 16.29 5.78 Class H................................ -- -- 0.93 16.46 5.99 Class L................................ -- -- 1.19 18.69 6.80 Class M................................ -- -- 0.93 16.44 6.00 Class N................................ -- -- 0.93 16.44 6.00 Class Y................................ -- -- 1.24 18.89 7.03 From August 31, 2006, (commencement of operations) through October 31, 2006 Class I................................ -- -- 0.82 18.46 4.65(f) For the Year Ended October 31, 2005 Class A................................ -- -- 1.13 17.32 6.98 Class B................................ -- -- 0.89 15.38 6.14 Class C................................ -- -- 0.90 15.40 6.21 Class H................................ -- -- 0.94 15.53 6.44 Class L................................ -- -- 1.18 17.50 7.23 Class M................................ -- -- 0.94 15.51 6.45 Class N................................ -- -- 0.94 15.51 6.45 Class Y................................ -- -- 1.23 17.65 7.49 For the Year Ended October 31, 2004 Class A................................ -- -- 1.00 16.19 6.58 Class B................................ -- -- 0.79 14.49 5.77 Class C................................ -- -- 0.80 14.50 5.84 Class H................................ -- -- 0.85 14.59 6.19 Class L................................ -- -- 1.06 16.32 6.95 Class M................................ -- -- 0.85 14.57 6.20 Class N................................ -- -- 0.85 14.57 6.20 Class Y................................ -- -- 1.11 16.42 7.25 For the Year Ended October 31, 2003 Class A................................ -- -- 3.29 15.19 27.65 Class B................................ -- -- 2.90 13.70 26.85 Class C................................ -- -- 2.90 13.70 26.85 Class H................................ -- -- 2.93 13.74 27.10 Class L................................ -- -- 3.35 15.26 28.13 Class M................................ -- -- 2.92 13.72 27.04 Class N................................ -- -- 2.92 13.72 27.04 Class Y................................ -- -- 3.37 15.31 28.22 For the Period February 19, 2002 through October 31, 2002 Class A................................ -- -- (2.67) 11.90 (18.33)(f) Class B................................ -- -- (2.48) 10.80 (18.67)(f) Class C................................ -- -- (2.48) 10.80 (18.68)(f) Class Y................................ -- -- (2.63) 11.94 (18.05)(f) For the Year Ended October 31, 2002 Class H................................ -- -- (2.21) 10.81 (16.95) Class L................................ -- -- (2.32) 11.91 (16.28) Class M................................ -- -- (2.20) 10.80 (16.90) Class N................................ -- -- (2.20) 10.80 (16.90) -- SELECTED PER-SHARE DATA(A) -- RATIOS AND SUPPLEMENTAL DATA -- ------------------------------------------------------------------------------ RATIO OF RATIO OF EXPENSES EXPENSES RATIO OF TO AVERAGE TO AVERAGE NET NET ASSETS NET ASSETS NET ASSETS INVESTMENT AT END OF BEFORE AFTER INCOME (LOSS) PORTFOLIO PERIOD WAIVERS AND WAIVERS AND TO AVERAGE TURNOVER (000'S) REIMBURSEMENTS(D) REIMBURSEMENTS(D) NET ASSETS RATE(C) ---------- ----------------- ----------------- ------------- --------- THE HARTFORD GROWTH FUND For the Year Ended October 31, 2006 Class A................................ $707,000 1.34% 1.33% (0.38)% 92% Class B................................ 44,064 2.22 2.09 (1.14) -- Class C................................ 85,469 2.02 2.02 (1.07) -- Class H................................ 15,267 1.80 1.80 (0.84) -- Class L................................ 274,890 1.05 1.05 (0.10) -- Class M................................ 15,988 1.80 1.80 (0.84) -- Class N................................ 3,827 1.80 1.80 (0.85) -- Class Y................................ 130,594 0.83 0.83 0.08 -- From August 31, 2006, (commencement of operations) through October 31, 2006 Class I................................ 1,961 0.96(e) 0.96(e) (0.52)(e) -- For the Year Ended October 31, 2005 Class A................................ 635,057 1.40 1.33 (0.30) 77 Class B................................ 46,251 2.27 2.15 (1.09) -- Class C................................ 82,481 2.05 2.05 (1.01) -- Class H................................ 19,852 1.81 1.81 (0.68) -- Class L................................ 295,731 1.06 1.06 0.05 -- Class M................................ 19,133 1.81 1.81 (0.69) -- Class N................................ 4,377 1.81 1.81 (0.71) -- Class Y................................ 52,992 0.85 0.85 0.10 -- For the Year Ended October 31, 2004 Class A................................ 384,160 1.55 1.45 (0.84) 66 Class B................................ 32,440 2.33 2.15 (1.54) -- Class C................................ 47,575 2.07 2.07 (1.45) -- Class H................................ 23,527 1.83 1.83 (1.23) -- Class L................................ 310,084 1.08 1.08 (0.48) -- Class M................................ 21,522 1.83 1.83 (1.23) -- Class N................................ 4,356 1.83 1.83 (1.23) -- Class Y................................ 11,926 0.87 0.87 (0.18) -- For the Year Ended October 31, 2003 Class A................................ 72,186 1.52 1.45 (0.65) 129 Class B................................ 11,552 2.26 2.12 (1.35) -- Class C................................ 11,896 2.15 2.15 (1.36) -- Class H................................ 27,032 1.90 1.90 (1.09) -- Class L................................ 316,451 1.15 1.15 (0.34) -- Class M................................ 23,523 1.90 1.90 (1.09) -- Class N................................ 4,499 1.90 1.90 (1.09) -- Class Y................................ 1 0.96 0.96 (0.17) -- For the Period February 19, 2002 through October 31, 2002 Class A................................ 5,970 1.65(e) 1.45(e) (0.44)(e) 107 Class B................................ 1,698 2.32(e) 2.15(e) (1.10)(e) -- Class C................................ 1,480 2.18(e) 2.15(e) (1.13)(e) -- Class Y................................ 1 0.90(e) 0.90(e) (0.01)(e) -- For the Year Ended October 31, 2002 Class H................................ 26,002 1.89 1.89 (1.03) 107 Class L................................ 274,683 1.14 1.14 (0.28) -- Class M................................ 21,478 1.89 1.89 (1.03) -- Class N................................ 4,340 1.89 1.89 (1.03) --
--------------- (a) Information presented relates to a share outstanding throughout the indicated period. (b) 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. (c) Portfolio turnover rate is calculated on the basis of the Fund as a whole without distinguishing between the classes of shares issued. (d) Ratios do not include fees paid indirectly. Please see Note 3(d). (e) Annualized. (f) Not annualized. The accompanying notes are an integral part of these financial statements. 347 THE HARTFORD MUTUAL FUNDS, INC. AND THE HARTFORD MUTUAL FUNDS II, INC. FINANCIAL HIGHLIGHTS --------------------------------------------------------------------------------
-- SELECTED PER-SHARE DATA(A) -- RATIOS AND SUPPLEMENTAL DATA -- ------------------------------------------------------------------------------- NET REALIZED AND DISTRIBUTIONS NET ASSET NET UNREALIZED TOTAL DIVIDENDS FROM VALUE AT INVESTMENT GAIN FROM FROM NET REALIZED BEGINNING INCOME (LOSS) ON INVESTMENT INVESTMENT CAPITAL OF PERIOD (LOSS) INVESTMENTS OPERATIONS INCOME GAINS --------- ---------- ------------ ---------- ---------- ------------- THE HARTFORD GROWTH OPPORTUNITIES FUND For the Year Ended October 31, 2006 Class A................................ $27.84 $(0.07) $ 3.59 $ 3.52 $ -- $(2.03) Class B................................ 24.42 (0.25) 3.09 2.84 -- (2.03) Class C................................ 24.42 (0.23) 3.08 2.85 -- (2.03) Class H................................ 24.67 (0.26) 3.19 2.93 -- (2.03) Class L................................ 28.17 (0.06) 3.65 3.59 -- (2.03) Class M................................ 24.63 (0.25) 3.18 2.93 -- (2.03) Class N................................ 24.63 (0.25) 3.18 2.93 -- (2.03) Class Y................................ 28.37 0.02 3.68 3.70 -- (2.03) Class Z................................ 29.37 0.02 3.82 3.84 -- (2.03) From August 31, 2006, (commencement of operations) through October 31, 2006 Class I................................ 27.95 (0.01) 1.40 1.39 -- -- For the Year Ended October 31, 2005 Class A................................ 23.49 (0.06) 4.41 4.35 -- -- Class B................................ 20.77 (0.25) 3.90 3.65 -- -- Class C................................ 20.77 (0.25) 3.90 3.65 -- -- Class H................................ 20.92 (0.25) 4.00 3.75 -- -- Class L................................ 23.71 (0.06) 4.52 4.46 -- -- Class M................................ 20.89 (0.24) 3.98 3.74 -- -- Class N................................ 20.89 (0.24) 3.98 3.74 -- -- Class Y................................ 23.82 -- 4.55 4.55 -- -- Class Z................................ 24.66 0.01 4.70 4.71 -- -- For the Year Ended October 31, 2004 Class A................................ 21.25 (0.17) 2.41 2.24 -- -- Class B................................ 18.91 (0.26) 2.12 1.86 -- -- Class C................................ 18.91 (0.28) 2.14 1.86 -- -- Class H................................ 18.99 (0.31) 2.24 1.93 -- -- Class L................................ 21.36 (0.14) 2.49 2.35 -- -- Class M................................ 18.97 (0.30) 2.22 1.92 -- -- Class N................................ 18.97 (0.28) 2.20 1.92 -- -- Class Y................................ 21.42 (0.01) 2.41 2.40 -- -- Class Z................................ 22.17 (0.08) 2.57 2.49 -- -- For the Year Ended October 31, 2003 Class A................................ 15.31 (0.07) 6.01 5.94 -- -- Class B................................ 13.71 (0.12) 5.32 5.20 -- -- Class C................................ 13.70 (0.09) 5.30 5.21 -- -- Class H................................ 13.73 (0.22) 5.48 5.26 -- -- Class L................................ 15.33 (0.10) 6.13 6.03 -- -- Class M................................ 13.71 (0.22) 5.48 5.26 -- -- Class N................................ 13.71 (0.22) 5.48 5.26 -- -- Class Y................................ 15.35 (0.07) 6.14 6.07 -- -- Class Z................................ 15.87 (0.06) 6.36 6.30 -- -- For the Period February 19, 2002 through October 31, 2002 Class A................................ 19.80 (0.06) (4.43) (4.49) -- -- Class B................................ 17.80 (0.10) (3.99) (4.09) -- -- Class C................................ 17.80 (0.09) (4.01) (4.10) -- -- Class Y................................ 19.80 (0.06) (4.39) (4.45) -- -- For the Year Ended October 31, 2002 Class H................................ 17.36 (0.32) (3.10) (3.42) -- (0.21) Class L................................ 19.21 (0.13) (3.54) (3.67) -- (0.21) Class M................................ 17.33 (0.28) (3.13) (3.41) -- (0.21) Class N................................ 17.34 (0.34) (3.08) (3.42) -- (0.21) Class Z................................ 19.77 0.72 (4.41) (3.69) -- (0.21) -- SELECTED PER-SHARE DATA(A) -- RATIOS AND SUPPLEMENTAL DATA -- -------------------------------------------------------------------- NET INCREASE NET ASSET DISTRIBUTIONS (DECREASE) VALUE AT FROM TOTAL IN NET ASSET END TOTAL CAPITAL DISTRIBUTIONS VALUE OF PERIOD RETURN(B) ------------- ------------- ------------ --------- --------- THE HARTFORD GROWTH OPPORTUNITIES FUND For the Year Ended October 31, 2006 Class A................................ $ -- $(2.03) $ 1.49 $29.33 13.35% Class B................................ -- (2.03) 0.81 25.23 12.36 Class C................................ -- (2.03) 0.82 25.24 12.40 Class H................................ -- (2.03) 0.90 25.57 12.62 Class L................................ -- (2.03) 1.56 29.73 13.45 Class M................................ -- (2.03) 0.90 25.53 12.64 Class N................................ -- (2.03) 0.90 25.53 12.64 Class Y................................ -- (2.03) 1.67 30.04 13.76 Class Z................................ -- (2.03) 1.81 31.18 13.77 From August 31, 2006, (commencement of operations) through October 31, 2006 Class I................................ -- -- 1.39 29.34 4.97(f) For the Year Ended October 31, 2005 Class A................................ -- -- 4.35 27.84 18.52 Class B................................ -- -- 3.65 24.42 17.57 Class C................................ -- -- 3.65 24.42 17.57 Class H................................ -- -- 3.75 24.67 17.92 Class L................................ -- -- 4.46 28.17 18.81 Class M................................ -- -- 3.74 24.63 17.90 Class N................................ -- -- 3.74 24.63 17.90 Class Y................................ -- -- 4.55 28.37 19.10 Class Z................................ -- -- 4.71 29.37 19.10 For the Year Ended October 31, 2004 Class A................................ -- -- 2.24 23.49 10.54 Class B................................ -- -- 1.86 20.77 9.84 Class C................................ -- -- 1.86 20.77 9.84 Class H................................ -- -- 1.93 20.92 10.16 Class L................................ -- -- 2.35 23.71 11.00 Class M................................ -- -- 1.92 20.89 10.12 Class N................................ -- -- 1.92 20.89 10.12 Class Y................................ -- -- 2.40 23.82 11.20 Class Z................................ -- -- 2.49 24.66 11.23 For the Year Ended October 31, 2003 Class A................................ -- -- 5.94 21.25 38.80 Class B................................ -- -- 5.20 18.91 37.93 Class C................................ -- -- 5.21 18.91 38.03 Class H................................ -- -- 5.26 18.99 38.31 Class L................................ -- -- 6.03 21.36 39.34 Class M................................ -- -- 5.26 18.97 38.36 Class N................................ -- -- 5.26 18.97 38.36 Class Y................................ -- -- 6.07 21.42 39.54 Class Z................................ -- -- 6.30 22.17 39.70 For the Period February 19, 2002 through October 31, 2002 Class A................................ -- -- (4.49) 15.31 (22.68)(f) Class B................................ -- -- (4.09) 13.71 (22.99)(f) Class C................................ -- -- (4.10) 13.70 (23.05)(f) Class Y................................ -- -- (4.45) 15.35 (22.47)(f) For the Year Ended October 31, 2002 Class H................................ -- (0.21) (3.63) 13.73 (19.99) Class L................................ -- (0.21) (3.88) 15.33 (19.36) Class M................................ -- (0.21) (3.62) 13.71 (19.97) Class N................................ -- (0.21) (3.63) 13.71 (20.01) Class Z................................ -- (0.21) (3.90) 15.87 (18.90) -- SELECTED PER-SHARE DATA(A) -- RATIOS AND SUPPLEMENTAL DATA -- ---------------------------------------------------------------------------------- RATIO OF RATIO OF EXPENSES EXPENSES RATIO OF TO AVERAGE TO AVERAGE NET NET ASSETS NET ASSETS NET ASSETS INVESTMENT AT END OF BEFORE AFTER INCOME (LOSS) PORTFOLIO PERIOD WAIVERS AND WAIVERS AND TO AVERAGE TURNOVER (000'S) REIMBURSEMENTS(D) REIMBURSEMENTS(D) NET ASSETS RATE(C) ---------- ----------------- ----------------- ------------- --------- THE HARTFORD GROWTH OPPORTUNITIES FUND For the Year Ended October 31, 2006 Class A................................ $420,220 1.60% 1.20% (0.31)% 131% Class B................................ 33,670 2.26 2.08 (1.18) -- Class C................................ 47,366 2.09 2.07 (1.17) -- Class H................................ 33,610 1.82 1.82 (0.93) -- Class L................................ 570,541 1.07 1.07 (0.18) -- Class M................................ 21,110 1.82 1.82 (0.93) -- Class N................................ 5,304 1.82 1.82 (0.93) -- Class Y................................ 73,685 0.85 0.83 0.08 -- Class Z................................ 35,785 0.82 0.82 0.07 -- From August 31, 2006, (commencement of operations) through October 31, 2006 Class I................................ 74 1.15(e) 1.11(e) (0.43)(e) -- For the Year Ended October 31, 2005 Class A................................ 222,682 1.54 1.36 (0.45) 156 Class B................................ 20,002 2.39 2.15 (1.27) -- Class C................................ 18,842 2.13 2.13 (1.26) -- Class H................................ 37,499 1.84 1.84 (0.97) -- Class L................................ 556,462 1.09 1.09 (0.22) -- Class M................................ 22,299 1.84 1.84 (0.97) -- Class N................................ 5,297 1.84 1.84 (0.97) -- Class Y................................ 28,441 0.88 0.88 -- -- Class Z................................ 34,088 0.84 0.84 0.02 -- For the Year Ended October 31, 2004 Class A................................ 54,652 1.52 1.45 (0.94) 130 Class B................................ 11,518 2.45 2.14 (1.64) -- Class C................................ 11,899 2.11 2.11 (1.61) -- Class H................................ 39,300 1.83 1.83 (1.33) -- Class L................................ 518,009 1.08 1.08 (0.58) -- Class M................................ 22,404 1.83 1.83 (1.33) -- Class N................................ 4,955 1.83 1.83 (1.33) -- Class Y................................ 4,792 0.82 0.82 (0.33) -- Class Z................................ 33,195 0.83 0.83 (0.33) -- For the Year Ended October 31, 2003 Class A................................ 17,149 1.49 1.45 (0.88) 158 Class B................................ 4,470 2.22 2.15 (1.58) -- Class C................................ 5,238 2.10 2.10 (1.54) -- Class H................................ 45,121 1.85 1.85 (1.31) -- Class L................................ 517,892 1.10 1.10 (0.56) -- Class M................................ 24,361 1.85 1.85 (1.31) -- Class N................................ 4,773 1.85 1.85 (1.31) -- Class Y................................ 1 0.91 0.91 (0.38) -- Class Z................................ 32,485 0.85 0.85 (0.31) -- For the Period February 19, 2002 through October 31, 2002 Class A................................ 3,338 1.62(e) 1.45(e) (0.92)(e) 182 Class B................................ 777 2.30(e) 2.15(e) (1.60)(e) -- Class C................................ 892 2.09(e) 2.09(e) (1.56)(e) -- Class Y................................ 1 0.89(e) 0.89(e) (0.44)(e) -- For the Year Ended October 31, 2002 Class H................................ 39,151 1.85 1.85 (1.42) 182 Class L................................ 412,454 1.10 1.10 (0.67) -- Class M................................ 20,163 1.85 1.85 (1.42) -- Class N................................ 4,172 1.85 1.85 (1.42) -- Class Z................................ 26,842 0.84 0.84 (0.43) --
--------------- (a) Information presented relates to a share outstanding throughout the indicated period. (b) 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. (c) Portfolio turnover rate is calculated on the basis of the Fund as a whole without distinguishing between the classes of shares issued. (d) Ratios do not include fees paid indirectly. Please see Note 3(d). (e) Annualized. (f) Not annualized. The accompanying notes are an integral part of these financial statements. 348 --------------------------------------------------------------------------------
-- SELECTED PER-SHARE DATA(A) -- RATIOS AND SUPPLEMENTAL DATA -- ------------------------------------------------------------------------------- NET REALIZED AND DISTRIBUTIONS NET ASSET NET UNREALIZED TOTAL DIVIDENDS FROM VALUE AT INVESTMENT GAIN FROM FROM NET REALIZED BEGINNING INCOME (LOSS) ON INVESTMENT INVESTMENT CAPITAL OF PERIOD (LOSS) INVESTMENTS OPERATIONS INCOME GAINS --------- ---------- ------------ ---------- ---------- ------------- THE HARTFORD HIGH YIELD FUND For the Year Ended October 31, 2006 Class A................................ $ 7.76 $0.54 $ 0.18 $ 0.72 $(0.55) $ -- Class B................................ 7.74 0.48 0.19 0.67 (0.49) -- Class C................................ 7.75 0.49 0.17 0.66 (0.49) -- Class Y................................ 7.75 0.58 0.17 0.75 (0.58) -- For the Year Ended October 31, 2005 Class A................................ 8.18 0.48 (0.40) 0.08 (0.50) -- Class B................................ 8.17 0.42 (0.41) 0.01 (0.44) -- Class C................................ 8.17 0.42 (0.39) 0.03 (0.45) -- Class Y................................ 8.17 0.52 (0.40) 0.12 (0.54) -- For the Year Ended October 31, 2004(h) Class A................................ 7.94 0.48 0.23 0.71 (0.47) -- Class B................................ 7.93 0.43 0.22 0.65 (0.41) -- Class C................................ 7.93 0.44 0.22 0.66 (0.42) -- Class Y................................ 7.94 0.39 0.36 0.75 (0.52) -- For the Year Ended October 31, 2003(h) Class A................................ 6.73 0.60 1.26 1.86 (0.65) -- Class B................................ 6.72 0.57 1.24 1.81 (0.60) -- Class C................................ 6.72 0.55 1.26 1.81 (0.60) -- Class Y................................ 6.73 0.65 1.24 1.89 (0.68) -- For the Year Ended October 31, 2002(h) Class A................................ 8.45 0.82 (1.78) (0.96) (0.76) -- Class B................................ 8.43 0.80 (1.81) (1.01) (0.70) -- Class C................................ 8.43 0.72 (1.73) (1.01) (0.70) -- Class Y................................ 8.48 0.34 (1.30) (0.96) (0.79) -- THE HARTFORD INCOME ALLOCATION FUND(G) For the Year Ended October 31, 2006 Class A................................ 9.89 0.42 0.03 0.45 (0.43) (0.02) Class B................................ 9.88 0.35 0.03 0.38 (0.36) (0.02) Class C................................ 9.88 0.35 0.03 0.38 (0.36) (0.02) From August 31, 2006, (commencement of operations) through October 31, 2006 Class I................................ 9.84 0.06 0.05 0.11 (0.06) -- For the Year Ended October 31, 2005 Class A................................ 10.15 0.36 (0.26) 0.10 (0.36) -- Class B................................ 10.14 0.29 (0.26) 0.03 (0.29) -- Class C................................ 10.14 0.30 (0.27) 0.03 (0.29) -- From May 28, 2004, (commencement of operations) through October 31, 2004 Class A................................ 10.00 0.09 0.15 0.24 (0.09) -- Class B................................ 10.00 0.07 0.14 0.21 (0.07) -- Class C................................ 10.00 0.07 0.14 0.21 (0.07) -- -- SELECTED PER-SHARE DATA(A) -- RATIOS AND SUPPLEMENTAL DATA -- -------------------------------------------------------------------- NET INCREASE NET ASSET DISTRIBUTIONS (DECREASE) VALUE AT FROM TOTAL IN NET ASSET END TOTAL CAPITAL DISTRIBUTIONS VALUE OF PERIOD RETURN(B) ------------- ------------- ------------ --------- --------- THE HARTFORD HIGH YIELD FUND For the Year Ended October 31, 2006 Class A................................ $ -- $(0.55) $ 0.17 $ 7.93 9.57% Class B................................ -- (0.49) 0.18 7.92 8.90 Class C................................ -- (0.49) 0.17 7.92 8.84 Class Y................................ -- (0.58) 0.17 7.92 10.11 For the Year Ended October 31, 2005 Class A................................ -- (0.50) (0.42) 7.76 0.97 Class B................................ -- (0.44) (0.43) 7.74 0.08 Class C................................ -- (0.45) (0.42) 7.75 0.30 Class Y................................ -- (0.54) (0.42) 7.75 1.43 For the Year Ended October 31, 2004(h) Class A................................ -- (0.47) 0.24 8.18 9.26(i) Class B................................ -- (0.41) 0.24 8.17 8.45(i) Class C................................ -- (0.42) 0.24 8.17 8.54(i) Class Y................................ -- (0.52) 0.23 8.17 9.72 For the Year Ended October 31, 2003(h) Class A................................ -- (0.65) 1.21 7.94 28.69 Class B................................ -- (0.60) 1.21 7.93 27.83 Class C................................ -- (0.60) 1.21 7.93 27.84 Class Y................................ -- (0.68) 1.21 7.94 29.27 For the Year Ended October 31, 2002(h) Class A................................ -- (0.76) (1.72) 6.73 (12.16) Class B................................ -- (0.70) (1.71) 6.72 (12.70) Class C................................ -- (0.70) (1.71) 6.72 (12.65) Class Y................................ -- (0.79) (1.75) 6.73 (12.01) THE HARTFORD INCOME ALLOCATION FUND(G) For the Year Ended October 31, 2006 Class A................................ -- (0.45) -- 9.89 4.64 Class B................................ -- (0.38) -- 9.88 3.91 Class C................................ -- (0.38) -- 9.88 3.91 From August 31, 2006, (commencement of operations) through October 31, 2006 Class I................................ -- (0.06) 0.05 9.89 1.17(f) For the Year Ended October 31, 2005 Class A................................ -- (0.36) (0.26) 9.89 1.01 Class B................................ -- (0.29) (0.26) 9.88 0.29 Class C................................ -- (0.29) (0.26) 9.88 0.30 From May 28, 2004, (commencement of operations) through October 31, 2004 Class A................................ -- (0.09) 0.15 10.15 2.42(f) Class B................................ -- (0.07) 0.14 10.14 2.08(f) Class C................................ -- (0.07) 0.14 10.14 2.08(f) -- SELECTED PER-SHARE DATA(A) -- RATIOS AND SUPPLEMENTAL DATA -- ---------------------------------------------------------------------------------- RATIO OF RATIO OF EXPENSES EXPENSES RATIO OF TO AVERAGE TO AVERAGE NET NET ASSETS NET ASSETS NET ASSETS INVESTMENT AT END OF BEFORE AFTER INCOME (LOSS) PORTFOLIO PERIOD WAIVERS AND WAIVERS AND TO AVERAGE TURNOVER (000'S) REIMBURSEMENTS(D) REIMBURSEMENTS(D) NET ASSETS RATE(C) ---------- ----------------- ----------------- ------------- --------- THE HARTFORD HIGH YIELD FUND For the Year Ended October 31, 2006 Class A................................ $190,479 1.36% 1.20% 6.87% 147% Class B................................ 37,189 2.17 1.95 6.10 -- Class C................................ 39,991 2.04 1.89 6.15 -- Class Y................................ 24,374 0.88 0.73 7.33 -- For the Year Ended October 31, 2005 Class A................................ 188,599 1.33 1.33(h) 5.86 113 Class B................................ 47,071 2.12 2.10(h) 5.09 -- Class C................................ 50,945 2.00 2.00(h) 5.18 -- Class Y................................ 25,974 0.87 0.87(h) 6.40 -- For the Year Ended October 31, 2004(h) Class A................................ 247,364 1.35 1.35 6.03 86 Class B................................ 63,972 2.07 2.07 5.32 -- Class C................................ 71,673 1.98 1.98 5.40 -- Class Y................................ 16,410 0.84 0.84 6.13 -- For the Year Ended October 31, 2003(h) Class A................................ 213,377 1.49 1.40 7.98 54 Class B................................ 72,293 2.23 2.10 7.39 -- Class C................................ 77,968 2.10 2.10 7.31 -- Class Y................................ 1 1.69 0.95 8.70 -- For the Year Ended October 31, 2002(h) Class A................................ 95,760 1.55 1.40 9.48 22 Class B................................ 44,359 2.24 2.10 8.78 -- Class C................................ 40,611 2.10 2.10 8.78 -- Class Y................................ 1 0.84 0.84 10.04 -- THE HARTFORD INCOME ALLOCATION FUND(G) For the Year Ended October 31, 2006 Class A................................ 25,383 0.80 0.61 4.32 38 Class B................................ 5,516 1.59 1.31 3.56 -- Class C................................ 8,042 1.53 1.31 3.53 -- From August 31, 2006, (commencement of operations) through October 31, 2006 Class I................................ 10 0.90(e) 0.37(e) 4.27(e) -- For the Year Ended October 31, 2005 Class A................................ 19,445 0.76 0.56 3.75 30 Class B................................ 4,778 1.56 1.26 3.09 -- Class C................................ 7,711 1.51 1.26 3.04 -- From May 28, 2004, (commencement of operations) through October 31, 2004 Class A................................ 10,539 0.73(e) 0.56(e) 3.21(e) 3 Class B................................ 1,690 1.63(e) 1.26(e) 2.56(e) -- Class C................................ 4,880 1.48(e) 1.26(e) 2.59(e) --
--------------- (a) Information presented relates to a share outstanding throughout the indicated period. (b) 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. (c) Portfolio turnover rate is calculated on the basis of the Fund as a whole without distinguishing between the classes of shares issued. (d) Ratios do not include fees paid indirectly. Please see Note 3(d). (e) Annualized. (f) Not annualized. (g) Expense ratios do not include expenses of the underlying funds. (h) Per share amounts have been calculated using average shares outstanding method. (i) Without the inclusion of the Payment from Affiliate, the total return would have been 9.25%, 8.45% and 8.44% for Classes A, B and C, respectively. The net asset impact of the Payment from Affiliate was less than $0.01 for Classes A and B and $0.01 for Class C. The accompanying notes are an integral part of these financial statements. 349 THE HARTFORD MUTUAL FUNDS, INC. AND THE HARTFORD MUTUAL FUNDS II, INC. FINANCIAL HIGHLIGHTS --------------------------------------------------------------------------------
-- SELECTED PER-SHARE DATA(A) -- RATIOS AND SUPPLEMENTAL DATA -- ------------------------------------------------------------------------------- NET REALIZED AND DISTRIBUTIONS NET ASSET NET UNREALIZED TOTAL DIVIDENDS FROM VALUE AT INVESTMENT GAIN FROM FROM NET REALIZED BEGINNING INCOME (LOSS) ON INVESTMENT INVESTMENT CAPITAL OF PERIOD (LOSS) INVESTMENTS OPERATIONS INCOME GAINS --------- ---------- ------------ ---------- ---------- ------------- THE HARTFORD INCOME FUND For the Year Ended October 31, 2006 Class A................................ $10.24 $0.54 $ 0.08 $ 0.62 $(0.53) $ -- Class B................................ 10.24 0.46 0.08 0.54 (0.45) -- Class C................................ 10.26 0.46 0.08 0.54 (0.45) -- Class Y................................ 10.24 0.56 0.08 0.64 (0.56) -- For the Year Ended October 31, 2005 Class A................................ 10.72 0.51 (0.44) 0.07 (0.51) (0.04) Class B................................ 10.72 0.43 (0.43) -- (0.44) (0.04) Class C................................ 10.74 0.43 (0.43) -- (0.44) (0.04) Class Y................................ 10.72 0.52 (0.42) 0.10 (0.54) (0.04) For the Year Ended October 31, 2004 Class A................................ 10.53 0.48 0.22 0.70 (0.51) -- Class B................................ 10.53 0.42 0.21 0.63 (0.44) -- Class C................................ 10.55 0.41 0.22 0.63 (0.44) -- From inception November 28, 2003, through October 31, 2004 Class Y................................ 10.54 0.48 0.20 0.68 (0.50) -- From inception October 31, 2002, through October 31, 2003 Class A................................ 10.00 0.52 0.54 1.06 (0.53) -- Class B................................ 10.00 0.44 0.54 0.98 (0.45) -- Class C................................ 10.00 0.44 0.56 1.00 (0.45) -- THE HARTFORD INFLATION PLUS FUND For the Year Ended October 31, 2006 Class A................................ 10.67 0.49 (0.26) 0.23 (0.43) (0.03) Class B................................ 10.68 0.40 (0.25) 0.15 (0.35) (0.03) Class C................................ 10.67 0.40 (0.25) 0.15 (0.35) (0.03) Class Y................................ 10.68 0.51 (0.25) 0.26 (0.46) (0.03) From August 31, 2006, (commencement of operations) through October 31, 2006 Class I................................ 10.48 0.05 (0.05) -- (0.04) -- For the Year Ended October 31, 2005 Class A................................ 10.95 0.41 (0.18) 0.23 (0.42) (0.09) Class B................................ 10.96 0.33 (0.18) 0.15 (0.34) (0.09) Class C................................ 10.96 0.33 (0.19) 0.14 (0.34) (0.09) Class Y................................ 10.97 0.47 (0.22) 0.25 (0.45) (0.09) For the Year Ended October 31, 2004 Class A................................ 10.63 0.30 0.37 0.67 (0.31) (0.04) Class B................................ 10.64 0.22 0.37 0.59 (0.23) (0.04) Class C................................ 10.63 0.23 0.37 0.60 (0.23) (0.04) From inception November 28, 2003, through October 31, 2004 Class Y................................ 10.57 0.28 0.44 0.72 (0.32) -- From inception October 31, 2002, through October 31, 2003 Class A................................ 10.00 0.27 0.62 0.89 (0.26) -- Class B................................ 10.00 0.21 0.63 0.84 (0.20) -- Class C................................ 10.00 0.20 0.63 0.83 (0.20) -- -- SELECTED PER-SHARE DATA(A) -- RATIOS AND SUPPLEMENTAL DATA -- -------------------------------------------------------------------- NET INCREASE NET ASSET DISTRIBUTIONS (DECREASE) VALUE AT FROM TOTAL IN NET ASSET END TOTAL CAPITAL DISTRIBUTIONS VALUE OF PERIOD RETURN(B) ------------- ------------- ------------ --------- --------- THE HARTFORD INCOME FUND For the Year Ended October 31, 2006 Class A................................ $ -- $(0.53) $ 0.09 $10.33 6.24% Class B................................ -- (0.45) 0.09 10.33 5.45 Class C................................ -- (0.45) 0.09 10.35 5.44 Class Y................................ -- (0.56) 0.08 10.32 6.41 For the Year Ended October 31, 2005 Class A................................ -- (0.55) (0.48) 10.24 0.70 Class B................................ -- (0.48) (0.48) 10.24 (0.04) Class C................................ -- (0.48) (0.48) 10.26 (0.03) Class Y................................ -- (0.58) (0.48) 10.24 0.98 For the Year Ended October 31, 2004 Class A................................ -- (0.51) 0.19 10.72 6.85 Class B................................ -- (0.44) 0.19 10.72 6.10 Class C................................ -- (0.44) 0.19 10.74 6.09 From inception November 28, 2003, through October 31, 2004 Class Y................................ -- (0.50) 0.18 10.72 6.57(f) From inception October 31, 2002, through October 31, 2003 Class A................................ -- (0.53) 0.53 10.53 10.79(f) Class B................................ -- (0.45) 0.53 10.53 10.01(f) Class C................................ -- (0.45) 0.55 10.55 10.22(f) THE HARTFORD INFLATION PLUS FUND For the Year Ended October 31, 2006 Class A................................ -- (0.46) (0.23) 10.44 2.29 Class B................................ -- (0.38) (0.23) 10.45 1.51 Class C................................ -- (0.38) (0.23) 10.44 1.51 Class Y................................ -- (0.49) (0.23) 10.45 2.58 From August 31, 2006, (commencement of operations) through October 31, 2006 Class I................................ -- (0.04) (0.04) 10.44 0.04(f) For the Year Ended October 31, 2005 Class A................................ -- (0.51) (0.28) 10.67 2.10 Class B................................ -- (0.43) (0.28) 10.68 1.33 Class C................................ -- (0.43) (0.29) 10.67 1.24 Class Y................................ -- (0.54) (0.29) 10.68 2.29 For the Year Ended October 31, 2004 Class A................................ -- (0.35) 0.32 10.95 6.39 Class B................................ -- (0.27) 0.32 10.96 5.65 Class C................................ -- (0.27) 0.33 10.96 5.74 From inception November 28, 2003, through October 31, 2004 Class Y................................ -- (0.32) 0.40 10.97 6.89(f) From inception October 31, 2002, through October 31, 2003 Class A................................ -- (0.26) 0.63 10.63 9.02(f) Class B................................ -- (0.20) 0.64 10.64 8.41(f) Class C................................ -- (0.20) 0.63 10.63 8.31(f) -- SELECTED PER-SHARE DATA(A) -- RATIOS AND SUPPLEMENTAL DATA -- ---------------------------------------------------------------------------------- RATIO OF RATIO OF EXPENSES EXPENSES RATIO OF TO AVERAGE TO AVERAGE NET NET ASSETS NET ASSETS NET ASSETS INVESTMENT AT END OF BEFORE AFTER INCOME (LOSS) PORTFOLIO PERIOD WAIVERS AND WAIVERS AND TO AVERAGE TURNOVER (000'S) REIMBURSEMENTS(D) REIMBURSEMENTS(D) NET ASSETS RATE(C) ---------- ----------------- ----------------- ------------- --------- THE HARTFORD INCOME FUND For the Year Ended October 31, 2006 Class A................................ $ 37,168 1.21% 0.95% 5.35% 147% Class B................................ 7,224 2.06 1.70 4.60 -- Class C................................ 8,101 1.96 1.70 4.61 -- Class Y................................ 60,690 0.78 0.70 5.63 -- For the Year Ended October 31, 2005 Class A................................ 28,942 1.20 0.95 4.80 188 Class B................................ 5,973 2.06 1.70 4.05 -- Class C................................ 5,142 1.96 1.70 4.05 -- Class Y................................ 16,431 0.79 0.70 5.16 -- For the Year Ended October 31, 2004 Class A................................ 29,580 1.14 1.00 4.60 167 Class B................................ 5,541 1.95 1.70 3.90 -- Class C................................ 5,562 1.88 1.70 3.90 -- From inception November 28, 2003, through October 31, 2004 Class Y................................ 10 0.73(e) 0.70(e) 4.89(e) -- From inception October 31, 2002, through October 31, 2003 Class A................................ 15,836 1.54(e) 1.00(e) 5.06(e) 124 Class B................................ 4,705 2.31(e) 1.70(e) 4.31(e) -- Class C................................ 5,050 2.17(e) 1.70(e) 4.28(e) -- THE HARTFORD INFLATION PLUS FUND For the Year Ended October 31, 2006 Class A................................ 282,362 1.02 0.95 4.50 193 Class B................................ 92,340 1.82 1.70 3.76 -- Class C................................ 247,091 1.78 1.70 3.72 -- Class Y................................ 140,796 0.68 0.68 5.05 -- From August 31, 2006, (commencement of operations) through October 31, 2006 Class I................................ 18 0.98(e) 0.70(e) 4.43(e) -- For the Year Ended October 31, 2005 Class A................................ 414,778 1.00 0.95 3.88 71 Class B................................ 119,302 1.81 1.70 3.09 -- Class C................................ 373,750 1.76 1.70 3.12 -- Class Y................................ 95,947 0.68 0.68 4.42 -- For the Year Ended October 31, 2004 Class A................................ 313,961 1.04 1.00 3.04 81 Class B................................ 107,964 1.81 1.70 2.21 -- Class C................................ 319,990 1.76 1.70 2.33 -- From inception November 28, 2003, through October 31, 2004 Class Y................................ 23,045 0.65(e) 0.65(e) 1.55(e) -- From inception October 31, 2002, through October 31, 2003 Class A................................ 142,992 1.34(e) 1.00(e) 2.63(e) 23 Class B................................ 67,986 2.09(e) 1.70(e) 1.98(e) -- Class C................................ 160,253 1.95(e) 1.70(e) 1.97(e) --
--------------- (a) Information presented relates to a share outstanding throughout the indicated period. (b) 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. (c) Portfolio turnover rate is calculated on the basis of the Fund as a whole without distinguishing between the classes of shares issued. (d) Ratios do not include fees paid indirectly. Please see Note 3(d). (e) Annualized. (f) Not annualized. The accompanying notes are an integral part of these financial statements. 350 --------------------------------------------------------------------------------
-- SELECTED PER-SHARE DATA(A) -- RATIOS AND SUPPLEMENTAL DATA -- ------------------------------------------------------------------------------- NET REALIZED AND DISTRIBUTIONS NET ASSET NET UNREALIZED TOTAL DIVIDENDS FROM VALUE AT INVESTMENT GAIN FROM FROM NET REALIZED BEGINNING INCOME (LOSS) ON INVESTMENT INVESTMENT CAPITAL OF PERIOD (LOSS) INVESTMENTS OPERATIONS INCOME GAINS --------- ---------- ------------ ---------- ---------- ------------- THE HARTFORD INTERNATIONAL CAPITAL APPRECIATION FUND For the Year Ended October 31, 2006(h) Class A................................ $12.14 $ 0.02 $ 2.96 $ 2.98 $(0.05) $(0.14) Class B................................ 11.77 (0.08) 2.87 2.79 -- (0.14) Class C................................ 11.77 (0.09) 2.88 2.79 -- (0.14) Class Y................................ 12.33 0.06 3.02 3.08 (0.10) (0.14) From August 31, 2006, (commencement of operations) through October 31, 2006 Class I................................ 14.34 (0.02) 0.62 0.60 -- -- For the Year Ended October 31, 2005 Class A................................ 11.59 0.07 0.48 0.55 -- -- Class B................................ 11.32 (0.01) 0.46 0.45 -- -- Class C................................ 11.32 (0.01) 0.46 0.45 -- -- Class Y................................ 11.72 0.08 0.53 0.61 -- -- For the Year Ended October 31, 2004(h) Class A................................ 9.62 (0.01) 2.03 2.02 -- (0.05) Class B................................ 9.46 (0.08) 1.99 1.91 -- (0.05) Class C................................ 9.46 (0.08) 1.99 1.91 -- (0.05) Class Y................................ 9.69 (0.01) 2.09 2.08 -- (0.05) For the Year Ended October 31, 2003 Class A................................ 6.93 (0.02) 2.72 2.70 (0.01) -- Class B................................ 6.86 (0.04) 2.64 2.60 -- -- Class C................................ 6.86 (0.04) 2.64 2.60 -- -- Class Y................................ 6.98 0.01 2.74 2.75 (0.04) -- For the Year Ended October 31, 2002(h) Class A................................ 7.62 0.02 (0.71) (0.69) -- -- Class B................................ 7.59 (0.03) (0.70) (0.73) -- -- Class C................................ 7.59 (0.03) (0.70) (0.73) -- -- Class Y................................ 7.63 0.07 (0.72) (0.65) -- -- -- SELECTED PER-SHARE DATA(A) -- RATIOS AND SUPPLEMENTAL DATA -- -------------------------------------------------------------------- NET INCREASE NET ASSET DISTRIBUTIONS (DECREASE) VALUE AT FROM TOTAL IN NET ASSET END TOTAL CAPITAL DISTRIBUTIONS VALUE OF PERIOD RETURN(B) ------------- ------------- ------------ --------- --------- THE HARTFORD INTERNATIONAL CAPITAL APPRECIATION FUND For the Year Ended October 31, 2006(h) Class A................................ $ -- $(0.19) $ 2.79 $14.93 24.85% Class B................................ -- (0.14) 2.65 14.42 23.95 Class C................................ -- (0.14) 2.65 14.42 23.95 Class Y................................ -- (0.24) 2.84 15.17 25.38 From August 31, 2006, (commencement of operations) through October 31, 2006 Class I................................ -- -- 0.60 14.94 4.18(f) For the Year Ended October 31, 2005 Class A................................ -- -- 0.55 12.14 4.74 Class B................................ -- -- 0.45 11.77 3.98 Class C................................ -- -- 0.45 11.77 3.98 Class Y................................ -- -- 0.61 12.33 5.20 For the Year Ended October 31, 2004(h) Class A................................ -- (0.05) 1.97 11.59 21.14 Class B................................ -- (0.05) 1.86 11.32 20.33 Class C................................ -- (0.05) 1.86 11.32 20.33 Class Y................................ -- (0.05) 2.03 11.72 21.61 For the Year Ended October 31, 2003 Class A................................ -- (0.01) 2.69 9.62 38.95 Class B................................ -- -- 2.60 9.46 37.90 Class C................................ -- -- 2.60 9.46 37.90 Class Y................................ -- (0.04) 2.71 9.69 39.57 For the Year Ended October 31, 2002(h) Class A................................ -- -- (0.69) 6.93 (9.06) Class B................................ -- -- (0.73) 6.86 (9.62) Class C................................ -- -- (0.73) 6.86 (9.62) Class Y................................ -- -- (0.65) 6.98 (8.52) -- SELECTED PER-SHARE DATA(A) -- RATIOS AND SUPPLEMENTAL DATA -- ---------------------------------------------------------------------------------- RATIO OF RATIO OF EXPENSES EXPENSES RATIO OF TO AVERAGE TO AVERAGE NET NET ASSETS NET ASSETS NET ASSETS INVESTMENT AT END OF BEFORE AFTER INCOME (LOSS) PORTFOLIO PERIOD WAIVERS AND WAIVERS AND TO AVERAGE TURNOVER (000'S) REIMBURSEMENTS(D) REIMBURSEMENTS(D) NET ASSETS RATE(C) ---------- ----------------- ----------------- ------------- --------- THE HARTFORD INTERNATIONAL CAPITAL APPRECIATION FUND For the Year Ended October 31, 2006(h) Class A................................ $213,186 1.70% 1.60% 0.12% 165% Class B................................ 33,252 2.56 2.30 (0.59) -- Class C................................ 43,336 2.40 2.35 (0.65) -- Class Y................................ 70,777 1.16 1.16 0.42 -- From August 31, 2006, (commencement of operations) through October 31, 2006 Class I................................ 10 1.53(e) 1.35(e) (0.49)(e) -- For the Year Ended October 31, 2005 Class A................................ 131,430 1.77 1.60 0.66 183 Class B................................ 22,304 2.66 2.35 (0.09) -- Class C................................ 29,486 2.49 2.35 (0.07) -- Class Y................................ 74,651 1.22 1.20 0.98 -- For the Year Ended October 31, 2004(h) Class A................................ 50,051 1.91 1.65 (0.10) 200 Class B................................ 8,968 2.83 2.35 (0.80) -- Class C................................ 12,906 2.63 2.35 (0.79) -- Class Y................................ 28,775 1.31 1.20 (0.09) -- For the Year Ended October 31, 2003 Class A................................ 11,362 2.36 1.65 (0.35) 281 Class B................................ 2,148 3.08 2.35 (1.04) -- Class C................................ 2,285 2.95 2.35 (1.01) -- Class Y................................ 292 1.80 1.20 0.16 -- For the Year Ended October 31, 2002(h) Class A................................ 4,666 2.98 1.65 0.34 330 Class B................................ 813 3.69 2.35 (0.42) -- Class C................................ 826 3.55 2.35 (0.34) -- Class Y................................ 209 2.19 1.20 0.79 --
--------------- (a) Information presented relates to a share outstanding throughout the indicated period. (b) 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. (c) Portfolio turnover rate is calculated on the basis of the Fund as a whole without distinguishing between the classes of shares issued. (d) Ratios do not include fees paid indirectly. Please see Note 3(d). (e) Annualized. (f) Not annualized. (h) Per share amounts have been calculated using average shares outstanding method. The accompanying notes are an integral part of these financial statements. 351 THE HARTFORD MUTUAL FUNDS, INC. AND THE HARTFORD MUTUAL FUNDS II, INC. FINANCIAL HIGHLIGHTS --------------------------------------------------------------------------------
-- SELECTED PER-SHARE DATA(A) -- RATIOS AND SUPPLEMENTAL DATA -- ------------------------------------------------------------------------------- NET REALIZED AND DISTRIBUTIONS NET ASSET NET UNREALIZED TOTAL DIVIDENDS FROM VALUE AT INVESTMENT GAIN FROM FROM NET REALIZED BEGINNING INCOME (LOSS) ON INVESTMENT INVESTMENT CAPITAL OF PERIOD (LOSS) INVESTMENTS OPERATIONS INCOME GAINS --------- ---------- ------------ ---------- ---------- ------------- THE HARTFORD INTERNATIONAL OPPORTUNITIES FUND For the Year Ended October 31, 2006(h) Class A................................ $13.13 $ 0.13 $ 2.92 $ 3.05 $(0.05) $ -- Class B................................ 12.35 0.03 2.76 2.79 -- -- Class C................................ 12.27 0.01 2.73 2.74 -- -- Class Y................................ 13.55 0.25 2.98 3.23 (0.11) -- For the Year Ended October 31, 2005 Class A................................ 11.22 0.05 1.86 1.91 -- -- Class B................................ 10.64 (0.04) 1.75 1.71 -- -- Class C................................ 10.57 (0.04) 1.74 1.70 -- -- Class Y................................ 11.53 0.12 1.90 2.02 -- -- For the Year Ended October 31, 2004 Class A................................ 9.66 0.03 1.54 1.57 (0.01) -- Class B................................ 9.22 (0.05) 1.47 1.42 -- -- Class C................................ 9.16 (0.05) 1.46 1.41 -- -- Class Y................................ 9.91 0.11 1.56 1.67 (0.05) -- For the Year Ended October 31, 2003 Class A................................ 8.03 0.02 1.61 1.63 -- -- Class B................................ 7.71 (0.04) 1.55 1.51 -- -- Class C................................ 7.67 (0.04) 1.53 1.49 -- -- Class Y................................ 8.19 0.06 1.66 1.72 -- -- For the Year Ended October 31, 2002(h) Class A................................ 9.33 0.03 (1.33) (1.30) -- -- Class B................................ 9.04 (0.08) (1.25) (1.33) -- -- Class C................................ 8.99 (0.05) (1.27) (1.32) -- -- Class Y................................ 9.49 0.02 (1.32) (1.30) -- -- -- SELECTED PER-SHARE DATA(A) -- RATIOS AND SUPPLEMENTAL DATA -- -------------------------------------------------------------------- NET INCREASE NET ASSET DISTRIBUTIONS (DECREASE) VALUE AT FROM TOTAL IN NET ASSET END TOTAL CAPITAL DISTRIBUTIONS VALUE OF PERIOD RETURN(B) ------------- ------------- ------------ --------- --------- THE HARTFORD INTERNATIONAL OPPORTUNITIES FUND For the Year Ended October 31, 2006(h) Class A................................ $ -- $(0.05) $ 3.00 $16.13 23.25% Class B................................ -- -- 2.79 15.14 22.59 Class C................................ -- -- 2.74 15.01 22.33 Class Y................................ -- (0.11) 3.12 16.67 24.00 For the Year Ended October 31, 2005 Class A................................ -- -- 1.91 13.13 17.02 Class B................................ -- -- 1.71 12.35 16.07 Class C................................ -- -- 1.70 12.27 16.08 Class Y................................ -- -- 2.02 13.55 17.52 For the Year Ended October 31, 2004 Class A................................ -- (0.01) 1.56 11.22 16.20 Class B................................ -- -- 1.42 10.64 15.40 Class C................................ -- -- 1.41 10.57 15.39 Class Y................................ -- (0.05) 1.62 11.53 16.87 For the Year Ended October 31, 2003 Class A................................ -- -- 1.63 9.66 20.30 Class B................................ -- -- 1.51 9.22 19.58 Class C................................ -- -- 1.49 9.16 19.43 Class Y................................ -- -- 1.72 9.91 21.00 For the Year Ended October 31, 2002(h) Class A................................ -- -- (1.30) 8.03 (13.93) Class B................................ -- -- (1.33) 7.71 (14.71) Class C................................ -- -- (1.32) 7.67 (14.68) Class Y................................ -- -- (1.30) 8.19 (13.70) -- SELECTED PER-SHARE DATA(A) -- RATIOS AND SUPPLEMENTAL DATA -- ------------------------------------------------------------------------------ RATIO OF RATIO OF EXPENSES EXPENSES RATIO OF TO AVERAGE TO AVERAGE NET NET ASSETS NET ASSETS NET ASSETS INVESTMENT AT END OF BEFORE AFTER INCOME (LOSS) PORTFOLIO PERIOD WAIVERS AND WAIVERS AND TO AVERAGE TURNOVER (000'S) REIMBURSEMENTS(D) REIMBURSEMENTS(D) NET ASSETS RATE(C) ---------- ----------------- ----------------- ------------- --------- THE HARTFORD INTERNATIONAL OPPORTUNITIES FUND For the Year Ended October 31, 2006(h) Class A................................ $159,087 1.61% 1.57% 0.84% 102% Class B................................ 29,125 2.56 2.15 0.24 -- Class C................................ 20,782 2.33 2.33 0.06 -- Class Y................................ 43,994 1.02 1.02 1.56 -- For the Year Ended October 31, 2005 Class A................................ 102,393 1.72 1.57 0.42 119 Class B................................ 23,940 2.68 2.35 (0.36) -- Class C................................ 16,896 2.42 2.35 (0.37) -- Class Y................................ 5,612 1.05 1.05 0.94 -- For the Year Ended October 31, 2004 Class A................................ 87,348 1.83 1.65 0.33 143 Class B................................ 23,301 2.77 2.35 (0.39) -- Class C................................ 15,749 2.48 2.35 (0.38) -- Class Y................................ 4,288 1.09 1.08 0.82 -- For the Year Ended October 31, 2003 Class A................................ 69,153 1.72 1.65 0.25 138 Class B................................ 20,459 2.45 2.35 (0.46) -- Class C................................ 14,790 2.35 2.35 (0.45) -- Class Y................................ 6,058 1.13 1.13 0.77 -- For the Year Ended October 31, 2002(h) Class A................................ 66,775 1.82 1.65 0.34 175 Class B................................ 18,668 2.50 2.35 (0.79) -- Class C................................ 13,438 2.40 2.35 (0.64) -- Class Y................................ 4,543 1.13 1.13 0.31 --
--------------- (a) Information presented relates to a share outstanding throughout the indicated period. (b) 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. (c) Portfolio turnover rate is calculated on the basis of the Fund as a whole without distinguishing between the classes of shares issued. (d) Ratios do not include fees paid indirectly. Please see Note 3(d). (h) Per share amounts have been calculated using average shares outstanding method. The accompanying notes are an integral part of these financial statements. 352 --------------------------------------------------------------------------------
-- SELECTED PER-SHARE DATA(A) -- RATIOS AND SUPPLEMENTAL DATA -- ------------------------------------------------------------------------------- NET REALIZED AND DISTRIBUTIONS NET ASSET NET UNREALIZED TOTAL DIVIDENDS FROM VALUE AT INVESTMENT GAIN FROM FROM NET REALIZED BEGINNING INCOME (LOSS) ON INVESTMENT INVESTMENT CAPITAL OF PERIOD (LOSS) INVESTMENTS OPERATIONS INCOME GAINS --------- ---------- ------------ ---------- ---------- ------------- THE HARTFORD INTERNATIONAL SMALL COMPANY FUND For the Year Ended October 31, 2006(h) Class A................................ $14.27 $ 0.08 $ 3.62 $ 3.70 $(0.25) $(1.53) Class B................................ 13.91 (0.01) 3.51 3.50 (0.16) (1.53) Class C................................ 13.78 (0.03) 3.48 3.45 (0.15) (1.53) Class Y................................ 14.41 0.15 3.64 3.79 (0.30) (1.53) For the Year Ended October 31, 2005 Class A................................ 13.44 0.06 2.25 2.31 -- (1.48) Class B................................ 13.23 -- 2.16 2.16 -- (1.48) Class C................................ 13.12 (0.01) 2.15 2.14 -- (1.48) Class Y................................ 13.54 0.12 2.27 2.39 (0.04) (1.48) For the Year Ended October 31, 2004 Class A................................ 12.93 0.07 1.31 1.38 -- (0.87) Class B................................ 12.82 0.02 1.26 1.28 -- (0.87) Class C................................ 12.72 0.03 1.24 1.27 -- (0.87) Class Y................................ 13.02 0.14 1.30 1.44 (0.05) (0.87) For the Year Ended October 31, 2003(h) Class A................................ 8.37 0.07 4.51 4.58 (0.02) -- Class B................................ 8.34 0.01 4.47 4.48 -- -- Class C................................ 8.28 0.01 4.43 4.44 -- -- Class Y................................ 8.43 0.09 4.56 4.65 (0.06) -- For the Year Ended October 31, 2002(h) Class A................................ 8.82 0.03 (0.48) (0.45) -- -- Class B................................ 8.81 (0.02) (0.45) (0.47) -- -- Class C................................ 8.78 (0.03) (0.47) (0.50) -- -- Class Y................................ 8.84 0.09 (0.50) (0.41) -- -- -- SELECTED PER-SHARE DATA(A) -- RATIOS AND SUPPLEMENTAL DATA -- -------------------------------------------------------------------- NET INCREASE NET ASSET DISTRIBUTIONS (DECREASE) VALUE AT FROM TOTAL IN NET ASSET END TOTAL CAPITAL DISTRIBUTIONS VALUE OF PERIOD RETURN(B) ------------- ------------- ------------ --------- --------- THE HARTFORD INTERNATIONAL SMALL COMPANY FUND For the Year Ended October 31, 2006(h) Class A................................ $ -- $(1.78) $ 1.92 $16.19 29.36% Class B................................ -- (1.69) 1.81 15.72 28.51 Class C................................ -- (1.68) 1.77 15.55 28.35 Class Y................................ -- (1.83) 1.96 16.37 29.89 For the Year Ended October 31, 2005 Class A................................ -- (1.48) 0.83 14.27 18.90 Class B................................ -- (1.48) 0.68 13.91 17.96 Class C................................ -- (1.48) 0.66 13.78 17.96 Class Y................................ -- (1.52) 0.87 14.41 19.40 For the Year Ended October 31, 2004 Class A................................ -- (0.87) 0.51 13.44 11.39 Class B................................ -- (0.87) 0.41 13.23 10.62 Class C................................ -- (0.87) 0.40 13.12 10.63 Class Y................................ -- (0.92) 0.52 13.54 11.80 For the Year Ended October 31, 2003(h) Class A................................ -- (0.02) 4.56 12.93 54.76 Class B................................ -- -- 4.48 12.82 53.72 Class C................................ -- -- 4.44 12.72 53.62 Class Y................................ -- (0.06) 4.59 13.02 55.47 For the Year Ended October 31, 2002(h) Class A................................ -- -- (0.45) 8.37 (5.10) Class B................................ -- -- (0.47) 8.34 (5.34) Class C................................ -- -- (0.50) 8.28 (5.70) Class Y................................ -- -- (0.41) 8.43 (4.64) -- SELECTED PER-SHARE DATA(A) -- RATIOS AND SUPPLEMENTAL DATA -- ------------------------------------------------------------------------------ RATIO OF RATIO OF EXPENSES EXPENSES RATIO OF TO AVERAGE TO AVERAGE NET NET ASSETS NET ASSETS NET ASSETS INVESTMENT AT END OF BEFORE AFTER INCOME (LOSS) PORTFOLIO PERIOD WAIVERS AND WAIVERS AND TO AVERAGE TURNOVER (000'S) REIMBURSEMENTS(D) REIMBURSEMENTS(D) NET ASSETS RATE(C) ---------- ----------------- ----------------- ------------- --------- THE HARTFORD INTERNATIONAL SMALL COMPANY FUND For the Year Ended October 31, 2006(h) Class A................................ $69,998 1.74% 1.60% 0.56% 107% Class B................................ 11,960 2.66 2.24 (0.08) -- Class C................................ 18,486 2.43 2.35 (0.22) -- Class Y................................ 86,707 1.20 1.20 0.97 -- For the Year Ended October 31, 2005 Class A................................ 34,896 1.82 1.60 0.71 112 Class B................................ 6,101 2.78 2.35 (0.02) -- Class C................................ 12,614 2.46 2.35 (0.06) -- Class Y................................ 65,828 1.28 1.20 1.13 -- For the Year Ended October 31, 2004 Class A................................ 23,934 1.99 1.65 0.90 119 Class B................................ 3,726 2.89 2.35 0.15 -- Class C................................ 10,072 2.60 2.35 0.27 -- Class Y................................ 42,449 1.41 1.20 1.26 -- For the Year Ended October 31, 2003(h) Class A................................ 12,320 2.36 1.65 0.72 166 Class B................................ 2,237 3.09 2.35 0.03 -- Class C................................ 3,004 2.96 2.35 (0.03) -- Class Y................................ 25,154 1.64 1.20 0.93 -- For the Year Ended October 31, 2002(h) Class A................................ 4,598 3.09 1.65 0.44 194 Class B................................ 926 3.81 2.35 (0.26) -- Class C................................ 859 3.53 2.35 (0.26) -- Class Y................................ 969 1.91 1.20 0.89 --
--------------- (a) Information presented relates to a share outstanding throughout the indicated period. (b) 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. (c) Portfolio turnover rate is calculated on the basis of the Fund as a whole without distinguishing between the classes of shares issued. (d) Ratios do not include fees paid indirectly. Please see Note 3(d). (h) Per share amounts have been calculated using average shares outstanding method. The accompanying notes are an integral part of these financial statements. 353 THE HARTFORD MUTUAL FUNDS, INC. AND THE HARTFORD MUTUAL FUNDS II, INC. FINANCIAL HIGHLIGHTS --------------------------------------------------------------------------------
-- SELECTED PER-SHARE DATA(A) -- RATIOS AND SUPPLEMENTAL DATA -- ------------------------------------------------------------------------------- NET REALIZED AND DISTRIBUTIONS NET ASSET NET UNREALIZED TOTAL DIVIDENDS FROM VALUE AT INVESTMENT GAIN FROM FROM NET REALIZED BEGINNING INCOME (LOSS) ON INVESTMENT INVESTMENT CAPITAL OF PERIOD (LOSS) INVESTMENTS OPERATIONS INCOME GAINS --------- ---------- ------------ ---------- ---------- ------------- THE HARTFORD MIDCAP FUND For the Year Ended October 31, 2006 Class A................................ $26.32 $(0.03) $ 3.44 $ 3.41 $ -- $(4.42) Class B................................ 24.77 (0.22) 3.22 3.00 -- (4.42) Class C................................ 24.86 (0.20) 3.23 3.03 -- (4.42) Class Y................................ 27.42 0.08 3.60 3.68 -- (4.42) For the Year Ended October 31, 2005 Class A................................ 22.61 (0.05) 4.24 4.19 -- (0.48) Class B................................ 21.47 (0.24) 4.02 3.78 -- (0.48) Class C................................ 21.52 (0.22) 4.04 3.82 -- (0.48) Class Y................................ 23.43 0.07 4.40 4.47 -- (0.48) For the Year Ended October 31, 2004 Class A................................ 20.58 (0.09) 2.12 2.03 -- -- Class B................................ 19.68 (0.25) 2.04 1.79 -- -- Class C................................ 19.71 (0.23) 2.04 1.81 -- -- Class Y................................ 21.21 0.02 2.20 2.22 -- -- For the Year Ended October 31, 2003 Class A................................ 15.50 (0.08) 5.16 5.08 -- -- Class B................................ 14.93 (0.20) 4.95 4.75 -- -- Class C................................ 14.94 (0.18) 4.95 4.77 -- -- Class Y................................ 15.88 -- 5.33 5.33 -- -- For the Year Ended October 31, 2002(h) Class A................................ 16.57 (0.10) (0.97) (1.07) -- -- Class B................................ 16.07 (0.21) (0.93) (1.14) -- -- Class C................................ 16.08 (0.21) (0.93) (1.14) -- -- Class Y................................ 16.89 (0.02) (0.99) (1.01) -- -- -- SELECTED PER-SHARE DATA(A) -- RATIOS AND SUPPLEMENTAL DATA -- -------------------------------------------------------------------- NET INCREASE NET ASSET DISTRIBUTIONS (DECREASE) VALUE AT FROM TOTAL IN NET ASSET END TOTAL CAPITAL DISTRIBUTIONS VALUE OF PERIOD RETURN(B) ------------- ------------- ------------ --------- --------- THE HARTFORD MIDCAP FUND For the Year Ended October 31, 2006 Class A................................ $ -- $(4.42) $(1.01) $25.31 14.84% Class B................................ -- (4.42) (1.42) 23.35 13.97 Class C................................ -- (4.42) (1.39) 23.47 14.06 Class Y................................ -- (4.42) (0.74) 26.68 15.31 For the Year Ended October 31, 2005 Class A................................ -- (0.48) 3.71 26.32 18.85 Class B................................ -- (0.48) 3.30 24.77 17.92 Class C................................ -- (0.48) 3.34 24.86 18.07 Class Y................................ -- (0.48) 3.99 27.42 19.40 For the Year Ended October 31, 2004 Class A................................ -- -- 2.03 22.61 9.86 Class B................................ -- -- 1.79 21.47 9.10 Class C................................ -- -- 1.81 21.52 9.18 Class Y................................ -- -- 2.22 23.43 10.47 For the Year Ended October 31, 2003 Class A................................ -- -- 5.08 20.58 32.77 Class B................................ -- -- 4.75 19.68 31.82 Class C................................ -- -- 4.77 19.71 31.93 Class Y................................ -- -- 5.33 21.21 33.56 For the Year Ended October 31, 2002(h) Class A................................ -- -- (1.07) 15.50 (6.46) Class B................................ -- -- (1.14) 14.93 (7.09) Class C................................ -- -- (1.14) 14.94 (7.09) Class Y................................ -- -- (1.01) 15.88 (5.98) -- SELECTED PER-SHARE DATA(A) -- RATIOS AND SUPPLEMENTAL DATA -- ------------------------------------------------------------------------------ RATIO OF RATIO OF EXPENSES EXPENSES RATIO OF TO AVERAGE TO AVERAGE NET NET ASSETS NET ASSETS NET ASSETS INVESTMENT AT END OF BEFORE AFTER INCOME (LOSS) PORTFOLIO PERIOD WAIVERS AND WAIVERS AND TO AVERAGE TURNOVER (000'S) REIMBURSEMENTS(D) REIMBURSEMENTS(D) NET ASSETS RATE(C) ---------- ----------------- ----------------- ------------- --------- THE HARTFORD MIDCAP FUND For the Year Ended October 31, 2006 Class A................................ $1,837,361 1.27% 1.27% (0.13)% 84% Class B................................ 449,488 2.04 2.04 (0.90) -- Class C................................ 499,039 1.96 1.96 (0.82) -- Class Y................................ 184,149 0.81 0.81 0.33 -- For the Year Ended October 31, 2005 Class A................................ 1,677,327 1.30 1.30 (0.20) 74 Class B................................ 464,175 2.08 2.08 (0.98) -- Class C................................ 499,502 1.99 1.99 (0.89) -- Class Y................................ 139,273 0.83 0.83 0.26 -- For the Year Ended October 31, 2004 Class A................................ 1,544,968 1.37 1.37 (0.41) 52 Class B................................ 438,658 2.11 2.11 (1.15) -- Class C................................ 484,268 2.02 2.02 (1.06) -- Class Y................................ 104,534 0.85 0.85 0.11 -- For the Year Ended October 31, 2003 Class A................................ 1,413,021 1.50 1.48 (0.58) 70 Class B................................ 424,959 2.23 2.20 (1.30) -- Class C................................ 477,891 2.10 2.10 (1.21) -- Class Y................................ 83,996 0.90 0.90 (0.01) -- For the Year Ended October 31, 2002(h) Class A................................ 704,238 1.56 1.45 (0.65) 109 Class B................................ 266,650 2.24 2.15 (1.35) -- Class C................................ 275,305 2.12 2.12 (1.31) -- Class Y................................ 27,319 0.92 0.92 (0.08) --
--------------- (a) Information presented relates to a share outstanding throughout the indicated period. (b) 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. (c) Portfolio turnover rate is calculated on the basis of the Fund as a whole without distinguishing between the classes of shares issued. (d) Ratios do not include fees paid indirectly. Please see Note 3(d). (h) Per share amounts have been calculated using average shares outstanding method. The accompanying notes are an integral part of these financial statements. 354 --------------------------------------------------------------------------------
-- SELECTED PER-SHARE DATA(A) -- RATIOS AND SUPPLEMENTAL DATA -- ------------------------------------------------------------------------------- NET REALIZED AND DISTRIBUTIONS NET ASSET NET UNREALIZED TOTAL DIVIDENDS FROM VALUE AT INVESTMENT GAIN FROM FROM NET REALIZED BEGINNING INCOME (LOSS) ON INVESTMENT INVESTMENT CAPITAL OF PERIOD (LOSS) INVESTMENTS OPERATIONS INCOME GAINS --------- ---------- ------------ ---------- ---------- ------------- THE HARTFORD MIDCAP GROWTH FUND From July 31, 2006, (commencement of operations) through October 31, 2006 Class A........................... $10.00 $(0.01) $ 0.64 $ 0.63 $ -- $ -- Class B........................... 10.00 (0.03) 0.64 0.61 -- -- Class C........................... 10.00 (0.02) 0.63 0.61 -- -- Class Y........................... 10.00 -- 0.64 0.64 -- -- THE HARTFORD MIDCAP VALUE FUND For the Year Ended October 31, 2006 Class A........................... 13.29 0.01 2.59 2.60 -- (1.32) Class B........................... 12.85 (0.10) 2.50 2.40 -- (1.32) Class C........................... 12.85 (0.10) 2.50 2.40 -- (1.32) Class Y........................... 13.59 0.08 2.65 2.73 -- (1.32) For the Year Ended October 31, 2005 Class A........................... 12.89 (0.04) 1.41 1.37 -- (0.97) Class B........................... 12.59 (0.14) 1.37 1.23 -- (0.97) Class C........................... 12.59 (0.15) 1.38 1.23 -- (0.97) Class Y........................... 13.11 0.01 1.44 1.45 -- (0.97) For the Year Ended October 31, 2004 Class A........................... 11.32 (0.04) 1.61 1.57 -- -- Class B........................... 11.12 (0.13) 1.60 1.47 -- -- Class C........................... 11.13 (0.13) 1.59 1.46 -- -- Class Y........................... 11.46 (0.01) 1.66 1.65 -- -- For the Year Ended October 31, 2003(h) Class A........................... 8.34 (0.03) 3.01 2.98 -- -- Class B........................... 8.25 (0.09) 2.96 2.87 -- -- Class C........................... 8.25 (0.09) 2.97 2.88 -- -- Class Y........................... 8.39 0.02 3.05 3.07 -- -- For the Year Ended October 31, 2002(h) Class A........................... 8.48 (0.02) (0.12) (0.14) -- -- Class B........................... 8.46 (0.09) (0.12) (0.21) -- -- Class C........................... 8.46 (0.09) (0.12) (0.21) -- -- Class Y........................... 8.50 0.01 (0.12) (0.11) -- -- -- SELECTED PER-SHARE DATA(A) -- RATIOS AND SUPPLEMENTAL DATA -- -------------------------------------------------------------------- NET INCREASE NET ASSET DISTRIBUTIONS (DECREASE) VALUE AT FROM TOTAL IN NET ASSET END TOTAL CAPITAL DISTRIBUTIONS VALUE OF PERIOD RETURN(B) ------------- ------------- ------------ --------- --------- THE HARTFORD MIDCAP GROWTH FUND From July 31, 2006, (commencement of operations) through October 31, 2006 Class A........................... $ -- $ -- $ 0.63 $10.63 6.30%(f) Class B........................... -- -- 0.61 10.61 6.10(f) Class C........................... -- -- 0.61 10.61 6.10(f) Class Y........................... -- -- 0.64 10.64 6.40(f) THE HARTFORD MIDCAP VALUE FUND For the Year Ended October 31, 2006 Class A........................... -- (1.32) 1.28 14.57 21.37 Class B........................... -- (1.32) 1.08 13.93 20.46 Class C........................... -- (1.32) 1.08 13.93 20.45 Class Y........................... -- (1.32) 1.41 15.00 21.90 For the Year Ended October 31, 2005 Class A........................... -- (0.97) 0.40 13.29 11.31 Class B........................... -- (0.97) 0.26 12.85 10.40 Class C........................... -- (0.97) 0.26 12.85 10.40 Class Y........................... -- (0.97) 0.48 13.59 11.76 For the Year Ended October 31, 2004 Class A........................... -- -- 1.57 12.89 13.87 Class B........................... -- -- 1.47 12.59 13.22 Class C........................... -- -- 1.46 12.59 13.12 Class Y........................... -- -- 1.65 13.11 14.40 For the Year Ended October 31, 2003(h) Class A........................... -- -- 2.98 11.32 35.73 Class B........................... -- -- 2.87 11.12 34.79 Class C........................... -- -- 2.88 11.13 34.91 Class Y........................... -- -- 3.07 11.46 36.59 For the Year Ended October 31, 2002(h) Class A........................... -- -- (0.14) 8.34 (1.65) Class B........................... -- -- (0.21) 8.25 (2.48) Class C........................... -- -- (0.21) 8.25 (2.48) Class Y........................... -- -- (0.11) 8.39 (1.29) -- SELECTED PER-SHARE DATA(A) -- RATIOS AND SUPPLEMENTAL DATA -- ------------------------------------------------------------------------------ RATIO OF RATIO OF EXPENSES EXPENSES RATIO OF TO AVERAGE TO AVERAGE NET NET ASSETS NET ASSETS NET ASSETS INVESTMENT AT END OF BEFORE AFTER INCOME (LOSS) PORTFOLIO PERIOD WAIVERS AND WAIVERS AND TO AVERAGE TURNOVER (000'S) REIMBURSEMENTS(D) REIMBURSEMENTS(D) NET ASSETS RATE(C) ---------- ----------------- ----------------- ------------- --------- THE HARTFORD MIDCAP GROWTH FUND From July 31, 2006, (commencement of operations) through October 31, 2006 Class A........................... $ 10,334 1.66%(e) 1.20%(e) (0.29)%(e) 112% Class B........................... 297 2.47(e) 2.05(e) (1.16)(e) -- Class C........................... 357 2.49(e) 2.07(e) (1.20)(e) -- Class Y........................... 106 1.41(e) 0.79(e) 0.12(e) -- THE HARTFORD MIDCAP VALUE FUND For the Year Ended October 31, 2006 Class A........................... 305,002 1.45 1.40 0.06 40 Class B........................... 62,580 2.28 2.15 (0.69) -- Class C........................... 63,302 2.16 2.15 (0.69) -- Class Y........................... 31,100 0.94 0.94 0.48 -- For the Year Ended October 31, 2005 Class A........................... 280,662 1.49 1.40 (0.31) 49 Class B........................... 59,350 2.33 2.15 (1.06) -- Class C........................... 61,194 2.19 2.15 (1.06) -- Class Y........................... 39,965 0.96 0.96 0.13 -- For the Year Ended October 31, 2004 Class A........................... 280,173 1.56 1.45 (0.03) 46 Class B........................... 60,558 2.36 2.15 (1.04) -- Class C........................... 67,132 2.20 2.15 (1.04) -- Class Y........................... 2,474 0.90 0.90 (0.12) -- For the Year Ended October 31, 2003(h) Class A........................... 155,614 1.60 1.45 (0.35) 56 Class B........................... 42,407 2.33 2.15 (1.05) -- Class C........................... 49,566 2.20 2.15 (1.05) -- Class Y........................... 29 1.03 1.00 0.16 -- For the Year Ended October 31, 2002(h) Class A........................... 94,532 1.68 1.45 (0.23) 40 Class B........................... 26,556 2.38 2.15 (0.95) -- Class C........................... 32,274 2.27 2.15 (0.96) -- Class Y........................... 252 1.02 1.00 0.23 --
--------------- (a) Information presented relates to a share outstanding throughout the indicated period. (b) 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. (c) Portfolio turnover rate is calculated on the basis of the Fund as a whole without distinguishing between the classes of shares issued. (d) Ratios do not include fees paid indirectly. Please see Note 3(d). (e) Annualized. (f) Not annualized. (h) Per share amounts have been calculated using average shares outstanding method. The accompanying notes are an integral part of these financial statements. 355 THE HARTFORD MUTUAL FUNDS, INC. AND THE HARTFORD MUTUAL FUNDS II, INC. FINANCIAL HIGHLIGHTS --------------------------------------------------------------------------------
-- SELECTED PER-SHARE DATA(A) -- RATIOS AND SUPPLEMENTAL DATA -- ------------------------------------------------------------------------------- NET REALIZED AND DISTRIBUTIONS NET ASSET NET UNREALIZED TOTAL DIVIDENDS FROM VALUE AT INVESTMENT GAIN FROM FROM NET REALIZED BEGINNING INCOME (LOSS) ON INVESTMENT INVESTMENT CAPITAL OF PERIOD (LOSS) INVESTMENTS OPERATIONS INCOME GAINS --------- ---------- ------------ ---------- ---------- ------------- THE HARTFORD MONEY MARKET FUND For the Year Ended October 31, 2006 Class A........................... $ 1.00 $ 0.04 $ -- $0.04 $ (0.04) $ -- Class B........................... 1.00 0.03 -- 0.03 (0.03) -- Class C........................... 1.00 0.03 -- 0.03 (0.03) -- Class Y........................... 1.00 0.04 -- 0.04 (0.04) -- For the Year Ended October 31, 2005 Class A........................... 1.00 0.02 -- 0.02 (0.02) -- Class B........................... 1.00 0.01 -- 0.01 (0.01) -- Class C........................... 1.00 0.01 -- 0.01 (0.01) -- Class Y........................... 1.00 0.02 -- 0.02 (0.02) -- For the Year Ended October 31, 2004 Class A........................... 1.00 0.003 -- 0.00 (0.003) -- Class B........................... 1.00 0.000 -- 0.00 (0.000) -- Class C........................... 1.00 0.000 -- 0.00 (0.000) -- Class Y........................... 1.00 0.007 -- 0.01 (0.007) -- For the Year Ended October 31, 2003 Class A........................... 1.00 0.003 -- 0.00 (0.003) -- Class B........................... 1.00 -- -- -- -- -- Class C........................... 1.00 -- -- -- -- -- Class Y........................... 1.00 0.008 -- 0.01 (0.008) -- For the Year Ended October 31, 2002(h) Class A........................... 1.00 0.011 -- 0.01 (0.011) -- Class B........................... 1.00 0.004 -- 0.00 (0.004) -- Class C........................... 1.00 0.004 -- 0.00 (0.004) -- Class Y........................... 1.00 0.017 -- 0.02 (0.017) -- -- SELECTED PER-SHARE DATA(A) -- RATIOS AND SUPPLEMENTAL DATA -- -------------------------------------------------------------------- NET INCREASE NET ASSET DISTRIBUTIONS (DECREASE) VALUE AT FROM TOTAL IN NET ASSET END TOTAL CAPITAL DISTRIBUTIONS VALUE OF PERIOD RETURN(B) ------------- ------------- ------------ --------- --------- THE HARTFORD MONEY MARKET FUND For the Year Ended October 31, 2006 Class A........................... $ -- $(0.04) $ -- $1.00 4.00% Class B........................... -- (0.03) -- 1.00 3.22 Class C........................... -- (0.03) -- 1.00 3.22 Class Y........................... -- (0.04) -- 1.00 4.34 For the Year Ended October 31, 2005 Class A........................... -- (0.02) -- 1.00 1.99 Class B........................... -- (0.01) -- 1.00 1.23 Class C........................... -- (0.01) -- 1.00 1.23 Class Y........................... -- (0.02) -- 1.00 2.40 For the Year Ended October 31, 2004 Class A........................... -- (0.00) -- 1.00 0.28 Class B........................... -- (0.00) -- 1.00 0.01 Class C........................... -- (0.00) -- 1.00 0.01 Class Y........................... -- (0.01) -- 1.00 0.72 For the Year Ended October 31, 2003 Class A........................... -- (0.00) -- 1.00 0.32 Class B........................... -- -- -- 1.00 0.00 Class C........................... -- -- -- 1.00 0.00 Class Y........................... -- (0.01) -- 1.00 0.78 For the Year Ended October 31, 2002(h) Class A........................... -- (0.01) -- 1.00 1.09 Class B........................... -- (0.00) -- 1.00 0.43 Class C........................... -- (0.00) -- 1.00 0.42 Class Y........................... -- (0.02) -- 1.00 1.72 -- SELECTED PER-SHARE DATA(A) -- RATIOS AND SUPPLEMENTAL DATA -- ------------------------------------------------------------------------------ RATIO OF RATIO OF EXPENSES EXPENSES RATIO OF TO AVERAGE TO AVERAGE NET NET ASSETS NET ASSETS NET ASSETS INVESTMENT AT END OF BEFORE AFTER INCOME (LOSS) PORTFOLIO PERIOD WAIVERS AND WAIVERS AND TO AVERAGE TURNOVER (000'S) REIMBURSEMENTS(D) REIMBURSEMENTS(D) NET ASSETS RATE(C) ---------- ----------------- ----------------- ------------- --------- THE HARTFORD MONEY MARKET FUND For the Year Ended October 31, 2006 Class A........................... $207,592 1.14% 0.95% 3.95% N/A Class B........................... 27,995 1.79 1.70 3.18 -- Class C........................... 16,997 1.76 1.70 3.20 -- Class Y........................... 13,628 0.61 0.55 4.29 -- For the Year Ended October 31, 2005 Class A........................... 182,308 1.22 0.95 1.96 N/A Class B........................... 30,716 1.88 1.70 1.16 -- Class C........................... 18,790 1.80 1.70 1.19 -- Class Y........................... 16,114 0.61 0.55 2.47 -- For the Year Ended October 31, 2004 Class A........................... 205,442 1.22 1.00 0.27 N/A Class B........................... 45,836 1.82 1.25 0.01 -- Class C........................... 26,626 1.77 1.27 0.01 -- Class Y........................... 9,698 0.56 0.55 0.96 -- For the Year Ended October 31, 2003 Class A........................... 246,199 1.28 1.00 0.33 N/A Class B........................... 67,732 2.01 1.33(j) 0.01 -- Class C........................... 29,955 1.89 1.36(j) 0.01 -- Class Y........................... 1,162 0.68 0.55 0.84 -- For the Year Ended October 31, 2002(h) Class A........................... 302,862 1.30 1.00 1.06 N/A Class B........................... 99,048 1.96 1.70 0.37 -- Class C........................... 65,894 1.82 1.70 0.37 -- Class Y........................... 2,815 0.62 0.55 1.51 --
--------------- (a) Information presented relates to a share outstanding throughout the indicated period. (b) 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. (c) Portfolio turnover rate is calculated on the basis of the Fund as a whole without distinguishing between the classes of shares issued. (d) Ratios do not include fees paid indirectly. Please see Note 3(d). (e) Annualized. (f) Not annualized. (g) Expense ratios do not include expenses of the underlying funds. (h) Per share amounts have been calculated using average shares outstanding method. (j) Expense ratio includes a practical waiver of 12b-1 fees. The accompanying notes are an integral part of these financial statements. 356 --------------------------------------------------------------------------------
-- SELECTED PER-SHARE DATA(A) -- RATIOS AND SUPPLEMENTAL DATA -- ------------------------------------------------------------------------------- NET REALIZED AND DISTRIBUTIONS NET ASSET NET UNREALIZED TOTAL DIVIDENDS FROM VALUE AT INVESTMENT GAIN FROM FROM NET REALIZED BEGINNING INCOME (LOSS) ON INVESTMENT INVESTMENT CAPITAL OF PERIOD (LOSS) INVESTMENTS OPERATIONS INCOME GAINS --------- ---------- ------------ ---------- ---------- ------------- THE HARTFORD RETIREMENT INCOME FUND(G) For the Year Ended October 31, 2006 Class A........................... $ 9.87 $ 0.62 $(0.15) $ 0.47 $(0.75) $ -- Class B........................... 9.87 0.63 (0.24) 0.39 (0.67) -- Class C........................... 9.87 0.63 (0.22) 0.41 (0.67) -- Class Y........................... 9.86 0.71 (0.19) 0.52 (0.78) -- From September 30, 2005, (commencement of operations) through October 31, 2005 Class A........................... 10.00 0.02 (0.14) (0.12) (0.01) -- Class B........................... 10.00 0.01 (0.14) (0.13) -- -- Class C........................... 10.00 0.01 (0.14) (0.13) -- -- Class Y........................... 10.00 0.01 (0.14) (0.13) (0.01) -- THE HARTFORD SELECT MIDCAP GROWTH FUND For the Year Ended October 31, 2006 Class A........................... 10.14 (0.08) 1.32 1.24 -- (0.10) Class B........................... 10.08 (0.15) 1.31 1.16 -- (0.10) Class C........................... 10.08 (0.15) 1.30 1.15 -- (0.10) Class Y........................... 10.17 (0.04) 1.33 1.29 -- (0.10) From January 1, 2005, (commencement of operations) through October 31, 2005 Class A........................... 10.06 (0.06) 0.14 0.08 -- -- Class B........................... 10.06 (0.09) 0.11 0.02 -- -- Class C........................... 10.06 (0.09) 0.11 0.02 -- -- Class Y........................... 10.06 (0.05) 0.16 0.11 -- -- THE HARTFORD SELECT MIDCAP VALUE FUND For the Year Ended October 31, 2006 Class A........................... 10.79 -- 1.87 1.87 (0.01) (0.24) Class B........................... 10.75 (0.10) 1.87 1.77 -- (0.24) Class C........................... 10.75 (0.09) 1.86 1.77 -- (0.24) Class Y........................... 10.81 0.07 1.81 1.88 (0.05) (0.24) From April 29, 2005, (commencement of operations) through October 31, 2005 Class A........................... 10.00 -- 0.79 0.79 -- -- Class B........................... 10.00 (0.03) 0.78 0.75 -- -- Class C........................... 10.00 (0.03) 0.78 0.75 -- -- Class Y........................... 10.00 0.02 0.79 0.81 -- -- THE HARTFORD SELECT SMALLCAP GROWTH FUND For the Year Ended October 31, 2006 Class A........................... 9.58 (0.09) 1.04 0.95 -- -- Class B........................... 9.57 (0.12) 1.01 0.89 -- -- Class C........................... 9.57 (0.13) 1.01 0.88 -- -- Class Y........................... 9.58 (0.01) 1.02 1.01 -- -- From September 30, 2005, (commencement of operations) through October 31, 2005 Class A........................... 10.00 (0.01) (0.41) (0.42) -- -- Class B........................... 10.00 (0.01) (0.42) (0.43) -- -- Class C........................... 10.00 (0.01) (0.42) (0.43) -- -- Class Y........................... 10.00 -- (0.42) (0.42) -- -- THE HARTFORD SELECT SMALLCAP VALUE FUND From July 31, 2006, (commencement of operations) through October 31, 2006(h) Class A........................... 10.00 0.02 0.94 0.96 -- -- Class B........................... 10.00 -- 0.93 0.93 -- -- Class C........................... 10.00 -- 0.93 0.93 -- -- Class Y........................... 10.00 0.01 0.96 0.97 -- -- -- SELECTED PER-SHARE DATA(A) -- RATIOS AND SUPPLEMENTAL DATA -- -------------------------------------------------------------------- NET INCREASE NET ASSET DISTRIBUTIONS (DECREASE) VALUE AT FROM TOTAL IN NET ASSET END TOTAL CAPITAL DISTRIBUTIONS VALUE OF PERIOD RETURN(B) ------------- ------------- ------------ --------- --------- THE HARTFORD RETIREMENT INCOME FUND(G) For the Year Ended October 31, 2006 Class A........................... $ -- $(0.75) $(0.28) $ 9.59 5.03% Class B........................... -- (0.67) (0.28) 9.59 4.21 Class C........................... -- (0.67) (0.26) 9.61 4.42 Class Y........................... -- (0.78) (0.26) 9.60 5.55 From September 30, 2005, (commencement of operations) through October 31, 2005 Class A........................... -- (0.01) (0.13) 9.87 (1.22)(f) Class B........................... -- -- (0.13) 9.87 (1.29)(f) Class C........................... -- -- (0.13) 9.87 (1.29)(f) Class Y........................... -- (0.01) (0.14) 9.86 (1.30)(f) THE HARTFORD SELECT MIDCAP GROWTH FUND For the Year Ended October 31, 2006 Class A........................... -- (0.10) 1.14 11.28 12.31 Class B........................... -- (0.10) 1.06 11.14 11.58 Class C........................... -- (0.10) 1.05 11.13 11.48 Class Y........................... -- (0.10) 1.19 11.36 12.77 From January 1, 2005, (commencement of operations) through October 31, 2005 Class A........................... -- -- 0.08 10.14 0.80(f) Class B........................... -- -- 0.02 10.08 0.20(f) Class C........................... -- -- 0.02 10.08 0.20(f) Class Y........................... -- -- 0.11 10.17 1.09(f) THE HARTFORD SELECT MIDCAP VALUE FUND For the Year Ended October 31, 2006 Class A........................... -- (0.25) 1.62 12.41 17.66 Class B........................... -- (0.24) 1.53 12.28 16.79 Class C........................... -- (0.24) 1.53 12.28 16.79 Class Y........................... -- (0.29) 1.59 12.40 17.79 From April 29, 2005, (commencement of operations) through October 31, 2005 Class A........................... -- -- 0.79 10.79 7.90(f) Class B........................... -- -- 0.75 10.75 7.50(f) Class C........................... -- -- 0.75 10.75 7.50(f) Class Y........................... -- -- 0.81 10.81 8.10(f) THE HARTFORD SELECT SMALLCAP GROWTH FUND For the Year Ended October 31, 2006 Class A........................... -- -- 0.95 10.53 9.92 Class B........................... -- -- 0.89 10.46 9.30 Class C........................... -- -- 0.88 10.45 9.20 Class Y........................... -- -- 1.01 10.59 10.54 From September 30, 2005, (commencement of operations) through October 31, 2005 Class A........................... -- -- (0.42) 9.58 (4.20)(f) Class B........................... -- -- (0.43) 9.57 (4.30)(f) Class C........................... -- -- (0.43) 9.57 (4.30)(f) Class Y........................... -- -- (0.42) 9.58 (4.20)(f) THE HARTFORD SELECT SMALLCAP VALUE FUND From July 31, 2006, (commencement of operations) through October 31, 2006(h) Class A........................... -- -- 0.96 10.96 9.60(f) Class B........................... -- -- 0.93 10.93 9.30(f) Class C........................... -- -- 0.93 10.93 9.30(f) Class Y........................... -- -- 0.97 10.97 9.70(f) -- SELECTED PER-SHARE DATA(A) -- RATIOS AND SUPPLEMENTAL DATA -- ------------------------------------------------------------------------------ RATIO OF RATIO OF EXPENSES EXPENSES RATIO OF TO AVERAGE TO AVERAGE NET NET ASSETS NET ASSETS NET ASSETS INVESTMENT AT END OF BEFORE AFTER INCOME (LOSS) PORTFOLIO PERIOD WAIVERS AND WAIVERS AND TO AVERAGE TURNOVER (000'S) REIMBURSEMENTS(D) REIMBURSEMENTS(D) NET ASSETS RATE(C) ---------- ----------------- ----------------- ------------- --------- THE HARTFORD RETIREMENT INCOME FUND(G) For the Year Ended October 31, 2006 Class A........................... $ 420 16.84% 0.54% 2.54% 37% Class B........................... 173 17.64 1.30 1.89 -- Class C........................... 161 17.64 1.30 1.88 -- Class Y........................... 114 16.51 0.24 2.96 -- From September 30, 2005, (commencement of operations) through October 31, 2005 Class A........................... 47 0.63(e) 0.53(e) 4.08(e) 83 Class B........................... 10 1.36(e) 1.26(e) 1.76(e) -- Class C........................... 10 1.36(e) 1.26(e) 1.76(e) -- Class Y........................... 10 0.28(e) 0.28(e) 2.75(e) -- THE HARTFORD SELECT MIDCAP GROWTH FUND For the Year Ended October 31, 2006 Class A........................... 23,542 1.69 1.50 (0.85) 99 Class B........................... 3,725 2.67 2.11 (1.46) -- Class C........................... 3,861 2.52 2.25 (1.60) -- Class Y........................... 28,868 1.13 1.10 (0.45) -- From January 1, 2005, (commencement of operations) through October 31, 2005 Class A........................... 14,995 2.22(e) 1.50(e) (0.95)(e) 97 Class B........................... 2,354 3.35(e) 2.25(e) (1.70)(e) -- Class C........................... 1,741 3.26(e) 2.25(e) (1.70)(e) Class Y........................... 210 1.66(e) 1.10(e) (0.55)(e) -- THE HARTFORD SELECT MIDCAP VALUE FUND For the Year Ended October 31, 2006 Class A........................... 47,937 1.69 1.55 (0.10) 63 Class B........................... 4,137 2.67 2.30 (0.84) -- Class C........................... 7,417 2.53 2.30 (0.84) -- Class Y........................... 20,025 1.33 1.15 0.26 -- From April 29, 2005, (commencement of operations) through October 31, 2005 Class A........................... 22,423 1.67(e) 1.55(e) (0.08)(e) 30 Class B........................... 1,714 2.64(e) 2.30(e) (0.92)(e) -- Class C........................... 2,885 2.53(e) 2.30(e) (0.96)(e) -- Class Y........................... 541 1.36(e) 1.15(e) 0.37(e) -- THE HARTFORD SELECT SMALLCAP GROWTH FUND For the Year Ended October 31, 2006 Class A........................... 7,284 2.81 1.65 (0.99) 62 Class B........................... 526 3.88 2.40 (1.71) -- Class C........................... 672 3.75 2.40 (1.72) -- Class Y........................... 4,753 2.60 1.20 (0.44) -- From September 30, 2005, (commencement of operations) through October 31, 2005 Class A........................... 5,217 1.65(e) 1.65(e) (0.76)(e) 4 Class B........................... 199 2.40(e) 2.40(e) (1.51)(e) -- Class C........................... 204 2.39(e) 2.39(e) (1.52)(e) Class Y........................... 192 1.20(e) 1.20(e) (0.31)(e) -- THE HARTFORD SELECT SMALLCAP VALUE FUND From July 31, 2006, (commencement of operations) through October 31, 2006(h) Class A........................... 15,872 1.73(e) 1.60(e) 0.78(e) 10 Class B........................... 308 2.53(e) 2.35(e) 0.03(e) -- Class C........................... 280 2.51(e) 2.35(e) 0.03(e) -- Class Y........................... 1,538 1.71(e) 1.20(e) 0.79(e) --
--------------- (a) Information presented relates to a share outstanding throughout the indicated period. (b) 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. (c) Portfolio turnover rate is calculated on the basis of the Fund as a whole without distinguishing between the classes of shares issued. (d) Ratios do not include fees paid indirectly. Please see Note 3(d). (e) Annualized. (f) Not annualized. (g) Expense ratios do not include expenses of the underlying funds. (h) Per share amounts have been calculated using average shares outstanding method. The accompanying notes are an integral part of these financial statements. 357 THE HARTFORD MUTUAL FUNDS, INC. AND THE HARTFORD MUTUAL FUNDS II, INC. FINANCIAL HIGHLIGHTS --------------------------------------------------------------------------------
-- SELECTED PER-SHARE DATA(A) -- RATIOS AND SUPPLEMENTAL DATA -- ------------------------------------------------------------------------------- NET REALIZED AND DISTRIBUTIONS NET ASSET NET UNREALIZED TOTAL DIVIDENDS FROM VALUE AT INVESTMENT GAIN FROM FROM NET REALIZED BEGINNING INCOME (LOSS) ON INVESTMENT INVESTMENT CAPITAL OF PERIOD (LOSS) INVESTMENTS OPERATIONS INCOME GAINS --------- ---------- ------------ ---------- ---------- ------------- THE HARTFORD SHORT DURATION FUND For the Year Ended October 31, 2006 Class A................................ $ 9.85 $ 0.35 $ 0.04 $ 0.39 $(0.35) $ -- Class B................................ 9.85 0.27 0.05 0.32 (0.27) -- Class C................................ 9.85 0.27 0.05 0.32 (0.27) -- Class Y................................ 9.84 0.37 0.04 0.41 (0.37) -- For the Year Ended October 31, 2005 Class A................................ 10.08 0.33 (0.24) 0.09 (0.32) -- Class B................................ 10.08 0.25 (0.23) 0.02 (0.25) -- Class C................................ 10.08 0.25 (0.23) 0.02 (0.25) -- Class Y................................ 10.07 0.35 (0.23) 0.12 (0.35) -- For the Year Ended October 31, 2004 Class A................................ 10.14 0.30 (0.06) 0.24 (0.30) -- Class B................................ 10.14 0.23 (0.06) 0.17 (0.23) -- Class C................................ 10.14 0.23 (0.06) 0.17 (0.23) -- From inception November 28, 2003, through October 31, 2004 Class Y................................ 10.11 0.30 (0.04) 0.26 (0.30) -- From inception October 31, 2002, through October 31, 2003 Class A................................ 10.00 0.30 0.14 0.44 (0.30) -- Class B................................ 10.00 0.23 0.14 0.37 (0.23) -- Class C................................ 10.00 0.23 0.14 0.37 (0.23) -- THE HARTFORD SMALL COMPANY FUND For the Year Ended October 31, 2006 Class A................................ 18.45 (0.18) 3.31 3.13 -- -- Class B................................ 17.20 (0.36) 3.13 2.77 -- -- Class C................................ 17.22 (0.32) 3.10 2.78 -- -- Class Y................................ 19.33 (0.06) 3.46 3.40 -- -- From August 31, 2006 (commencement of operations) through October 31, 2006 Class I................................ 20.70 (0.01) 0.90 0.89 -- -- For the Year Ended October 31, 2005 Class A................................ 15.09 (0.16) 3.52 3.36 -- -- Class B................................ 14.17 (0.29) 3.32 3.03 -- -- Class C................................ 14.19 (0.29) 3.32 3.03 -- -- Class Y................................ 15.74 (0.07) 3.66 3.59 -- -- For the Year Ended October 31, 2004 Class A................................ 14.28 (0.18) 0.99 0.81 -- -- Class B................................ 13.51 (0.27) 0.93 0.66 -- -- Class C................................ 13.52 (0.28) 0.95 0.67 -- -- Class Y................................ 14.83 (0.06) 0.97 0.91 -- -- For the Year Ended October 31, 2003 Class A................................ 9.93 (0.13) 4.48 4.35 -- -- Class B................................ 9.46 (0.20) 4.25 4.05 -- -- Class C................................ 9.47 (0.20) 4.25 4.05 -- -- Class Y................................ 10.27 (0.09) 4.65 4.56 -- -- For the Year Ended October 31, 2002(h) Class A................................ 12.00 (0.12) (1.95) (2.07) -- -- Class B................................ 11.52 (0.20) (1.86) (2.06) -- -- Class C................................ 11.53 (0.20) (1.86) (2.06) -- -- Class Y................................ 12.35 (0.06) (2.02) (2.08) -- -- -- SELECTED PER-SHARE DATA(A) -- RATIOS AND SUPPLEMENTAL DATA -- -------------------------------------------------------------------- NET INCREASE NET ASSET DISTRIBUTIONS (DECREASE) VALUE AT FROM TOTAL IN NET ASSET END TOTAL CAPITAL DISTRIBUTIONS VALUE OF PERIOD RETURN(B) ------------- ------------- ------------ --------- --------- THE HARTFORD SHORT DURATION FUND For the Year Ended October 31, 2006 Class A................................ $ -- $(0.35) $ 0.04 $ 9.89 4.02% Class B................................ -- (0.27) 0.05 9.90 3.33 Class C................................ -- (0.27) 0.05 9.90 3.33 Class Y................................ -- (0.37) 0.04 9.88 4.28 For the Year Ended October 31, 2005 Class A................................ -- (0.32) (0.23) 9.85 0.92 Class B................................ -- (0.25) (0.23) 9.85 0.17 Class C................................ -- (0.25) (0.23) 9.85 0.17 Class Y................................ -- (0.35) (0.23) 9.84 1.18 For the Year Ended October 31, 2004 Class A................................ -- (0.30) (0.06) 10.08 2.40 Class B................................ -- (0.23) (0.06) 10.08 1.68 Class C................................ -- (0.23) (0.06) 10.08 1.68 From inception November 28, 2003, through October 31, 2004 Class Y................................ -- (0.30) (0.04) 10.07 2.62(f) From inception October 31, 2002, through October 31, 2003 Class A................................ -- (0.30) 0.14 10.14 4.48(f) Class B................................ -- (0.23) 0.14 10.14 3.77(f) Class C................................ -- (0.23) 0.14 10.14 3.77(f) THE HARTFORD SMALL COMPANY FUND For the Year Ended October 31, 2006 Class A................................ -- -- 3.13 21.58 16.96 Class B................................ -- -- 2.77 19.97 16.10 Class C................................ -- -- 2.78 20.00 16.14 Class Y................................ -- -- 3.40 22.73 17.59 From August 31, 2006 (commencement of operations) through October 31, 2006 Class I................................ -- -- 0.89 21.59 4.30(f) For the Year Ended October 31, 2005 Class A................................ -- -- 3.36 18.45 22.27 Class B................................ -- -- 3.03 17.20 21.38 Class C................................ -- -- 3.03 17.22 21.35 Class Y................................ -- -- 3.59 19.33 22.81 For the Year Ended October 31, 2004 Class A................................ -- -- 0.81 15.09 5.67 Class B................................ -- -- 0.66 14.17 4.88 Class C................................ -- -- 0.67 14.19 4.96 Class Y................................ -- -- 0.91 15.74 6.14 For the Year Ended October 31, 2003 Class A................................ -- -- 4.35 14.28 43.81 Class B................................ -- -- 4.05 13.51 42.81 Class C................................ -- -- 4.05 13.52 42.77 Class Y................................ -- -- 4.56 14.83 44.40 For the Year Ended October 31, 2002(h) Class A................................ -- -- (2.07) 9.93 (17.25) Class B................................ -- -- (2.06) 9.46 (17.88) Class C................................ -- -- (2.06) 9.47 (17.87) Class Y................................ -- -- (2.08) 10.27 (16.84) -- SELECTED PER-SHARE DATA(A) -- RATIOS AND SUPPLEMENTAL DATA -- ------------------------------------------------------------------------------ RATIO OF RATIO OF EXPENSES EXPENSES RATIO OF TO AVERAGE TO AVERAGE NET NET ASSETS NET ASSETS NET ASSETS INVESTMENT AT END OF BEFORE AFTER INCOME (LOSS) PORTFOLIO PERIOD WAIVERS AND WAIVERS AND TO AVERAGE TURNOVER (000'S) REIMBURSEMENTS(D) REIMBURSEMENTS(D) NET ASSETS RATE(C) ---------- ----------------- ----------------- ------------- --------- THE HARTFORD SHORT DURATION FUND For the Year Ended October 31, 2006 Class A................................ $ 26,726 1.10% 0.90% 3.53% 119% Class B................................ 6,760 1.92 1.65 2.77 -- Class C................................ 14,382 1.83 1.65 2.76 -- Class Y................................ 102,198 0.68 0.65 3.78 -- For the Year Ended October 31, 2005 Class A................................ 29,212 1.05 0.90 3.23 123 Class B................................ 8,814 1.89 1.65 2.47 -- Class C................................ 22,973 1.78 1.65 2.47 -- Class Y................................ 82,439 0.67 0.65 3.53 -- For the Year Ended October 31, 2004 Class A................................ 39,148 1.06 0.95 2.95 108 Class B................................ 12,267 1.84 1.65 2.26 -- Class C................................ 34,949 1.76 1.65 2.26 -- From inception November 28, 2003, through October 31, 2004 Class Y................................ 31,429 0.61(e) 0.60(e) 3.03(e) -- From inception October 31, 2002, through October 31, 2003 Class A................................ 32,753 1.34(e) 0.95(e) 3.14(e) 113 Class B................................ 10,206 2.09(e) 1.65(e) 2.46(e) -- Class C................................ 30,660 1.96(e) 1.65(e) 2.44(e) -- THE HARTFORD SMALL COMPANY FUND For the Year Ended October 31, 2006 Class A................................ 194,656 1.48 1.40 (0.87) 170% Class B................................ 52,036 2.32 2.15 (1.62) -- Class C................................ 47,744 2.23 2.15 (1.62) -- Class Y................................ 108,770 0.95 0.95 (0.39) -- From August 31, 2006 (commencement of operations) through October 31, 2006 Class I................................ 69 1.38(e) 1.15(e) (0.58)(e) -- For the Year Ended October 31, 2005 Class A................................ 159,577 1.57 1.40 (0.88) 104 Class B................................ 56,664 2.39 2.15 (1.63) -- Class C................................ 44,564 2.30 2.15 (1.63) -- Class Y................................ 43,274 0.97 0.97 (0.43) -- For the Year Ended October 31, 2004 Class A................................ 156,278 1.62 1.45 (1.15) 142 Class B................................ 58,438 2.40 2.15 (1.85) -- Class C................................ 49,327 2.30 2.15 (1.85) -- Class Y................................ 15,731 0.99 0.99 (0.71) -- For the Year Ended October 31, 2003 Class A................................ 141,327 1.63 1.45 (1.19) 179 Class B................................ 58,286 2.36 2.15 (1.89) -- Class C................................ 52,010 2.23 2.15 (1.88) -- Class Y................................ 14,472 1.05 1.00 (0.73) -- For the Year Ended October 31, 2002(h) Class A................................ 96,302 1.64 1.45 (0.97) 226 Class B................................ 41,439 2.31 2.15 (1.67) -- Class C................................ 38,938 2.20 2.15 (1.65) -- Class Y................................ 10,834 1.00 1.00 (0.53) --
--------------- (a) Information presented relates to a share outstanding throughout the indicated period. (b) 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. (c) Portfolio turnover rate is calculated on the basis of the Fund as a whole without distinguishing between the classes of shares issued. (d) Ratios do not include fees paid indirectly. Please see Note 3(d). (e) Annualized. (f) Not annualized. (h) Per share amounts have been calculated using average shares outstanding method. The accompanying notes are an integral part of these financial statements. 358 --------------------------------------------------------------------------------
-- SELECTED PER-SHARE DATA(A) -- RATIOS AND SUPPLEMENTAL DATA -- ------------------------------------------------------------------------------- NET REALIZED AND DISTRIBUTIONS NET ASSET NET UNREALIZED TOTAL DIVIDENDS FROM VALUE AT INVESTMENT GAIN FROM FROM NET REALIZED BEGINNING INCOME (LOSS) ON INVESTMENT INVESTMENT CAPITAL OF PERIOD (LOSS) INVESTMENTS OPERATIONS INCOME GAINS --------- ---------- ------------ ---------- ---------- ------------- THE HARTFORD SMALLCAP GROWTH FUND For the Year Ended October 31, 2006 Class A................................ $28.30 $(0.06) $ 3.08 $ 3.02 $ -- $ -- Class B................................ 25.57 (0.26) 2.81 2.55 -- -- Class C................................ 25.56 (0.27) 2.78 2.51 -- -- Class H................................ 25.69 (0.25) 2.85 2.60 -- -- Class L................................ 28.36 (0.02) 3.11 3.09 -- -- Class M................................ 25.66 (0.25) 2.84 2.59 -- -- Class N................................ 25.69 (0.24) 2.83 2.59 -- -- Class Y................................ 28.74 0.04 3.17 3.21 -- -- From August 31, 2006 (commencement of operations) through October 31, 2006 Class I................................ 28.90 (0.01) 2.44 2.43 -- -- For the Year Ended October 31, 2005 Class A................................ 24.60 (0.15) 3.85 3.70 -- -- Class B................................ 22.39 (0.32) 3.50 3.18 -- -- Class C................................ 22.39 (0.28) 3.45 3.17 -- -- Class H................................ 22.46 (0.34) 3.57 3.23 -- -- Class L................................ 24.60 (0.13) 3.89 3.76 -- -- Class M................................ 22.44 (0.33) 3.55 3.22 -- -- Class N................................ 22.46 (0.33) 3.56 3.23 -- -- Class Y................................ 24.88 (0.04) 3.90 3.86 -- -- For the Year Ended October 31, 2004 Class A................................ 22.91 (0.15) 1.84 1.69 -- -- Class B................................ 20.99 (0.28) 1.68 1.40 -- -- Class C................................ 20.99 (0.27) 1.67 1.40 -- -- Class H................................ 21.02 (0.34) 1.78 1.44 -- -- Class L................................ 22.90 (0.19) 1.89 1.70 -- -- Class M................................ 21.00 (0.32) 1.76 1.44 -- -- Class N................................ 21.02 (0.31) 1.75 1.44 -- -- Class Y................................ 23.06 (0.02) 1.84 1.82 -- -- For the Year Ended October 31, 2003 Class A................................ 15.57 (0.09) 7.43 7.34 -- -- Class B................................ 14.36 (0.15) 6.78 6.63 -- -- Class C................................ 14.35 (0.16) 6.80 6.64 -- -- Class H................................ 14.37 (0.25) 6.90 6.65 -- -- Class L................................ 15.56 (0.15) 7.49 7.34 -- -- Class M................................ 14.36 (0.24) 6.88 6.64 -- -- Class N................................ 14.37 (0.24) 6.89 6.65 -- -- Class Y................................ 15.61 (0.08) 7.53 7.45 -- -- For the Period February 19, 2002 through October 31, 2002 Class A................................ 20.21 (0.06) (4.58) (4.64) -- -- Class B................................ 18.73 (0.08) (4.29) (4.37) -- -- Class C................................ 18.73 (0.09) (4.29) (4.38) -- -- Class Y................................ 20.21 (0.08) (4.52) (4.60) -- -- For the Year Ended October 31, 2002 Class H................................ 17.71 (0.36) (2.65) (3.01) -- (0.33) Class L................................ 19.04 (0.20) (2.95) (3.15) -- (0.33) Class M................................ 17.70 (0.33) (2.68) (3.01) -- (0.33) Class N................................ 17.71 (0.34) (2.67) (3.01) -- (0.33) -- SELECTED PER-SHARE DATA(A) -- RATIOS AND SUPPLEMENTAL DATA -- -------------------------------------------------------------------- NET INCREASE NET ASSET DISTRIBUTIONS (DECREASE) VALUE AT FROM TOTAL IN NET ASSET END TOTAL CAPITAL DISTRIBUTIONS VALUE OF PERIOD RETURN(B) ------------- ------------- ------------ --------- --------- THE HARTFORD SMALLCAP GROWTH FUND For the Year Ended October 31, 2006 Class A................................ $ -- $ -- $ 3.02 $31.32 10.67% Class B................................ -- -- 2.55 28.12 9.97 Class C................................ -- -- 2.51 28.07 9.82 Class H................................ -- -- 2.60 28.29 10.12 Class L................................ -- -- 3.09 31.45 10.90 Class M................................ -- -- 2.59 28.25 10.09 Class N................................ -- -- 2.59 28.28 10.08 Class Y................................ -- -- 3.21 31.95 11.17 From August 31, 2006 (commencement of operations) through October 31, 2006 Class I................................ -- -- 2.43 31.33 8.41(f) For the Year Ended October 31, 2005 Class A................................ -- -- 3.70 28.30 15.04 Class B................................ -- -- 3.18 25.57 14.20 Class C................................ -- -- 3.17 25.56 14.16 Class H................................ -- -- 3.23 25.69 14.38 Class L................................ -- -- 3.76 28.36 15.28 Class M................................ -- -- 3.22 25.66 14.35 Class N................................ -- -- 3.23 25.69 14.38 Class Y................................ -- -- 3.86 28.74 15.52 For the Year Ended October 31, 2004 Class A................................ -- -- 1.69 24.60 7.38 Class B................................ -- -- 1.40 22.39 6.67 Class C................................ -- -- 1.40 22.39 6.67 Class H................................ -- -- 1.44 22.46 6.85 Class L................................ -- -- 1.70 24.60 7.42 Class M................................ -- -- 1.44 22.44 6.86 Class N................................ -- -- 1.44 22.46 6.85 Class Y................................ -- -- 1.82 24.88 7.89 For the Year Ended October 31, 2003 Class A................................ -- -- 7.34 22.91 47.14 Class B................................ -- -- 6.63 20.99 46.17 Class C................................ -- -- 6.64 20.99 46.27 Class H................................ -- -- 6.65 21.02 46.28 Class L................................ -- -- 7.34 22.90 47.17 Class M................................ -- -- 6.64 21.00 46.24 Class N................................ -- -- 6.65 21.02 46.28 Class Y................................ -- -- 7.45 23.06 47.72 For the Period February 19, 2002 through October 31, 2002 Class A................................ -- -- (4.64) 15.57 (22.97)(f) Class B................................ -- -- (4.37) 14.36 (23.31)(f) Class C................................ -- -- (4.38) 14.35 (23.37)(f) Class Y................................ -- -- (4.60) 15.61 (22.77)(f) For the Year Ended October 31, 2002 Class H................................ -- (0.33) (3.34) 14.37 (17.41) Class L................................ -- (0.33) (3.48) 15.56 (16.92) Class M................................ -- (0.33) (3.34) 14.36 (17.42) Class N................................ -- (0.33) (3.34) 14.37 (17.41) -- SELECTED PER-SHARE DATA(A) -- RATIOS AND SUPPLEMENTAL DATA -- ------------------------------------------------------------------------------ RATIO OF RATIO OF EXPENSES EXPENSES RATIO OF TO AVERAGE TO AVERAGE NET NET ASSETS NET ASSETS NET ASSETS INVESTMENT AT END OF BEFORE AFTER INCOME (LOSS) PORTFOLIO PERIOD WAIVERS AND WAIVERS AND TO AVERAGE TURNOVER (000'S) REIMBURSEMENTS(D) REIMBURSEMENTS(D) NET ASSETS RATE(C) ---------- ----------------- ----------------- ------------- --------- THE HARTFORD SMALLCAP GROWTH FUND For the Year Ended October 31, 2006 Class A................................ $228,776 1.56% 1.36% (0.30)% 86% Class B................................ 19,078 2.39 2.02 (0.95) -- Class C................................ 24,070 2.25 2.15 (1.08) -- Class H................................ 13,634 1.89 1.89 (0.82) -- Class L................................ 118,452 1.15 1.15 (0.08) -- Class M................................ 14,483 1.89 1.89 (0.82) -- Class N................................ 5,846 1.90 1.90 (0.82) -- Class Y................................ 107,906 0.92 0.92 0.15 -- From August 31, 2006 (commencement of operations) through October 31, 2006 Class I................................ 239 1.28(e) 1.15(e) (0.43)(e) -- For the Year Ended October 31, 2005 Class A................................ 66,403 1.62 1.40 (0.65) 81 Class B................................ 16,230 2.51 2.15 (1.40) -- Class C................................ 15,668 2.33 2.15 (1.40) -- Class H................................ 15,245 1.96 1.96 (1.21) -- Class L................................ 119,114 1.21 1.21 (0.46) -- Class M................................ 15,461 1.96 1.96 (1.21) -- Class N................................ 5,969 1.96 1.96 (1.21) -- Class Y................................ 55,933 0.98 0.98 (0.23) -- For the Year Ended October 31, 2004 Class A................................ 42,962 1.77 1.45 (0.81) 102 Class B................................ 11,930 2.59 2.15 (1.51) -- Class C................................ 10,140 2.38 2.15 (1.51) -- Class H................................ 17,328 1.98 1.98 (1.34) -- Class L................................ 114,266 1.43 1.43 (0.79) -- Class M................................ 16,154 1.98 1.98 (1.34) -- Class N................................ 6,115 1.98 1.98 (1.34) -- Class Y................................ 5,788 1.03 1.03 (0.47) -- For the Year Ended October 31, 2003 Class A................................ 17,544 1.61 1.45 (0.83) 122 Class B................................ 6,571 2.31 2.15 (1.53) -- Class C................................ 5,076 2.22 2.15 (1.53) -- Class H................................ 20,767 2.05 2.05 (1.40) -- Class L................................ 112,621 1.50 1.45 (0.80) -- Class M................................ 17,992 2.05 2.05 (1.40) -- Class N................................ 6,110 2.05 2.05 (1.40) -- Class Y................................ 1 1.11 1.10 (0.46) -- For the Period February 19, 2002 through October 31, 2002 Class A................................ 3,457 1.82(e) 1.45(e) (0.93)(e) 93 Class B................................ 1,756 2.52(e) 2.15(e) (1.60)(e) -- Class C................................ 1,432 2.38(e) 2.15(e) (1.60)(e) -- Class Y................................ 1 1.06(e) 1.00(e) (0.60)(e) -- For the Year Ended October 31, 2002 Class H................................ 16,675 2.05 2.05 (1.65) 93 Class L................................ 86,414 1.50 1.45 (1.06) -- Class M................................ 13,714 2.05 2.05 (1.65) -- Class N................................ 4,757 2.05 2.05 (1.65) --
--------------- (a) Information presented relates to a share outstanding throughout the indicated period. (b) 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. (c) Portfolio turnover rate is calculated on the basis of the Fund as a whole without distinguishing between the classes of shares issued. (d) Ratios do not include fees paid indirectly. Please see Note 3(d). (e) Annualized. (f) Not annualized. The accompanying notes are an integral part of these financial statements. 359 THE HARTFORD MUTUAL FUNDS, INC. AND THE HARTFORD MUTUAL FUNDS II, INC. FINANCIAL HIGHLIGHTS --------------------------------------------------------------------------------
-- SELECTED PER-SHARE DATA(A) -- RATIOS AND SUPPLEMENTAL DATA -- ------------------------------------------------------------------------------- NET REALIZED AND DISTRIBUTIONS NET ASSET NET UNREALIZED TOTAL DIVIDENDS FROM VALUE AT INVESTMENT GAIN FROM FROM NET REALIZED BEGINNING INCOME (LOSS) ON INVESTMENT INVESTMENT CAPITAL OF PERIOD (LOSS) INVESTMENTS OPERATIONS INCOME GAINS --------- ---------- ------------ ---------- ---------- ------------- THE HARTFORD STOCK FUND For the Year Ended October 31, 2006(h) Class A................................ $18.39 $ 0.11 $ 2.58 $ 2.69 $(0.04) $ -- Class B................................ 17.23 (0.05) 2.40 2.35 -- -- Class C................................ 17.35 (0.04) 2.42 2.38 -- -- Class Y................................ 19.18 0.21 2.70 2.91 (0.14) -- For the Year Ended October 31, 2005 Class A................................ 16.76 0.16 1.57 1.73 (0.10) -- Class B................................ 15.76 -- 1.47 1.47 -- -- Class C................................ 15.84 0.04 1.47 1.51 -- -- Class Y................................ 17.49 0.24 1.66 1.90 (0.21) -- For the Year Ended October 31, 2004 Class A................................ 16.21 0.03 0.52 0.55 -- -- Class B................................ 15.35 (0.10) 0.51 0.41 -- -- Class C................................ 15.41 (0.08) 0.51 0.43 -- -- Class Y................................ 16.81 0.10 0.58 0.68 -- -- For the Year Ended October 31, 2003 Class A................................ 13.73 0.04 2.44 2.48 -- -- Class B................................ 13.10 (0.07) 2.32 2.25 -- -- Class C................................ 13.13 (0.05) 2.33 2.28 -- -- Class Y................................ 14.15 0.12 2.54 2.66 -- -- For the Year Ended October 31, 2002(h) Class A................................ 16.89 -- (3.16) (3.16) -- -- Class B................................ 16.24 (0.12) (3.02) (3.14) -- -- Class C................................ 16.23 (0.08) (3.02) (3.10) -- -- Class Y................................ 17.31 0.10 (3.26) (3.16) -- -- THE HARTFORD TARGET RETIREMENT 2010 FUND(G) For the Year Ended October 31, 2006 Class A................................ 9.82 0.47 0.22 0.69 (0.50) -- Class B................................ 9.82 0.34 0.27 0.61 (0.42) -- Class C................................ 9.82 0.40 0.21 0.61 (0.43) -- Class Y................................ 9.83 0.50 0.21 0.71 (0.53) -- From September 30, 2005, (commencement of operations) through October 31, 2005 Class A................................ 10.00 0.02 (0.20) (0.18) -- -- Class B................................ 10.00 0.01 (0.19) (0.18) -- -- Class C................................ 10.00 0.01 (0.19) (0.18) -- -- Class Y................................ 10.00 0.02 (0.19) (0.17) -- -- THE HARTFORD TARGET RETIREMENT 2020 FUND(G) For the Year Ended October 31, 2006(h) Class A................................ 9.79 0.13 0.86 0.99 (0.35) -- Class B................................ 9.78 0.04 0.88 0.92 (0.28) -- Class C................................ 9.78 0.04 0.88 0.92 (0.28) -- Class Y................................ 9.79 0.27 0.75 1.02 (0.38) -- From September 30, 2005, (commencement of operations) through October 31, 2005 Class A................................ 10.00 0.01 (0.22) (0.21) -- -- Class B................................ 10.00 0.01 (0.23) (0.22) -- -- Class C................................ 10.00 0.01 (0.23) (0.22) -- -- Class Y................................ 10.00 0.01 (0.22) (0.21) -- -- -- SELECTED PER-SHARE DATA(A) -- RATIOS AND SUPPLEMENTAL DATA -- -------------------------------------------------------------------- NET INCREASE NET ASSET DISTRIBUTIONS (DECREASE) VALUE AT FROM TOTAL IN NET ASSET END TOTAL CAPITAL DISTRIBUTIONS VALUE OF PERIOD RETURN(B) ------------- ------------- ------------ --------- --------- THE HARTFORD STOCK FUND For the Year Ended October 31, 2006(h) Class A................................ $ -- $(0.04) $ 2.65 $21.04 14.65% Class B................................ -- -- 2.35 19.58 13.64 Class C................................ -- -- 2.38 19.73 13.72 Class Y................................ -- (0.14) 2.77 21.95 15.21 For the Year Ended October 31, 2005 Class A................................ -- (0.10) 1.63 18.39 10.36 Class B................................ -- -- 1.47 17.23 9.33 Class C................................ -- -- 1.51 17.35 9.53 Class Y................................ -- (0.21) 1.69 19.18 10.91 For the Year Ended October 31, 2004 Class A................................ -- -- 0.55 16.76 3.39 Class B................................ -- -- 0.41 15.76 2.67 Class C................................ -- -- 0.43 15.84 2.79 Class Y................................ -- -- 0.68 17.49 4.04 For the Year Ended October 31, 2003 Class A................................ -- -- 2.48 16.21 18.06 Class B................................ -- -- 2.25 15.35 17.18 Class C................................ -- -- 2.28 15.41 17.36 Class Y................................ -- -- 2.66 16.81 18.80 For the Year Ended October 31, 2002(h) Class A................................ -- -- (3.16) 13.73 (18.71) Class B................................ -- -- (3.14) 13.10 (19.34) Class C................................ -- -- (3.10) 13.13 (19.10) Class Y................................ -- -- (3.16) 14.15 (18.26) THE HARTFORD TARGET RETIREMENT 2010 FUND(G) For the Year Ended October 31, 2006 Class A................................ (0.36) (0.86) (0.17) 9.65 7.43 Class B................................ (0.36) (0.78) (0.17) 9.65 6.58 Class C................................ (0.36) (0.79) (0.18) 9.64 6.53 Class Y................................ (0.36) (0.89) (0.18) 9.65 7.62 From September 30, 2005, (commencement of operations) through October 31, 2005 Class A................................ -- -- (0.18) 9.82 (1.80)(f) Class B................................ -- -- (0.18) 9.82 (1.80)(f) Class C................................ -- -- (0.18) 9.82 (1.80)(f) Class Y................................ -- -- (0.17) 9.83 (1.70)(f) THE HARTFORD TARGET RETIREMENT 2020 FUND(G) For the Year Ended October 31, 2006(h) Class A................................ -- (0.35) 0.64 10.43 10.37 Class B................................ -- (0.28) 0.64 10.42 9.56 Class C................................ -- (0.28) 0.64 10.42 9.58 Class Y................................ -- (0.38) 0.64 10.43 10.70 From September 30, 2005, (commencement of operations) through October 31, 2005 Class A................................ -- -- (0.21) 9.79 (2.10)(f) Class B................................ -- -- (0.22) 9.78 (2.20)(f) Class C................................ -- -- (0.22) 9.78 (2.20)(f) Class Y................................ -- -- (0.21) 9.79 (2.10)(f) -- SELECTED PER-SHARE DATA(A) -- RATIOS AND SUPPLEMENTAL DATA -- ------------------------------------------------------------------------------ RATIO OF RATIO OF EXPENSES EXPENSES RATIO OF TO AVERAGE TO AVERAGE NET NET ASSETS NET ASSETS NET ASSETS INVESTMENT AT END OF BEFORE AFTER INCOME (LOSS) PORTFOLIO PERIOD WAIVERS AND WAIVERS AND TO AVERAGE TURNOVER (000'S) REIMBURSEMENTS(D) REIMBURSEMENTS(D) NET ASSETS RATE(C) ---------- ----------------- ----------------- ------------- --------- THE HARTFORD STOCK FUND For the Year Ended October 31, 2006(h) Class A................................ $684,726 1.41% 1.28% 0.53% 110% Class B................................ 223,639 2.23 2.12 (0.30) -- Class C................................ 161,554 2.08 2.03 (0.21) -- Class Y................................ 131,759 0.83 0.78 1.03 -- For the Year Ended October 31, 2005 Class A................................ 727,492 1.42 1.33 0.89 62 Class B................................ 278,445 2.23 2.23 (0.02) -- Class C................................ 182,587 2.09 2.09 0.17 -- Class Y................................ 107,578 0.83 0.83 1.24 -- For the Year Ended October 31, 2004 Class A................................ 952,606 1.42 1.42 0.18 29 Class B................................ 343,148 2.18 2.18 (0.59) -- Class C................................ 256,271 2.03 2.03 (0.44) -- Class Y................................ 80,932 0.80 0.80 0.80 -- For the Year Ended October 31, 2003 Class A................................ 976,663 1.47 1.45 0.26 37 Class B................................ 376,437 2.20 2.18 (0.47) -- Class C................................ 311,874 2.07 2.07 (0.36) -- Class Y................................ 42,894 0.88 0.88 0.84 -- For the Year Ended October 31, 2002(h) Class A................................ 880,371 1.47 1.42 (0.01) 48 Class B................................ 351,382 2.15 2.15 (0.74) -- Class C................................ 313,173 2.03 2.03 (0.62) -- Class Y................................ 34,116 0.85 0.85 0.58 -- THE HARTFORD TARGET RETIREMENT 2010 FUND(G) For the Year Ended October 31, 2006 Class A................................ 1,618 8.32 0.54 2.01 10 Class B................................ 226 9.17 1.29 1.24 -- Class C................................ 475 9.13 1.30 1.63 -- Class Y................................ 135 8.02 0.23 2.31 -- From September 30, 2005, (commencement of operations) through October 31, 2005 Class A................................ 11 0.65(e) 0.49(e) 2.53(e) 12 Class B................................ 10 1.41(e) 1.26(e) 1.61(e) -- Class C................................ 10 1.41(e) 1.27(e) 1.60(e) -- Class Y................................ 10 0.32(e) 0.21(e) 2.65(e) -- THE HARTFORD TARGET RETIREMENT 2020 FUND(G) For the Year Ended October 31, 2006(h) Class A................................ 2,125 9.85 0.53 1.35 19 Class B................................ 291 10.69 1.29 0.39 -- Class C................................ 337 10.62 1.30 0.41 -- Class Y................................ 11 9.41 0.22 2.73 -- From September 30, 2005, (commencement of operations) through October 31, 2005 Class A................................ 144 0.66(e) 0.51(e) 2.77(e) 28 Class B................................ 10 1.37(e) 1.25(e) 0.86(e) -- Class C................................ 10 1.37(e) 1.26(e) 0.85(e) -- Class Y................................ 10 0.29(e) 0.20(e) 1.91(e) --
--------------- (a) Information presented relates to a share outstanding throughout the indicated period. (b) 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. (c) Portfolio turnover rate is calculated on the basis of the Fund as a whole without distinguishing between the classes of shares issued. (d) Ratios do not include fees paid indirectly. Please see Note 3(d). (e) Annualized. (f) Not annualized. (g) Expense ratios do not include expenses of the underlying funds. (h) Per share amounts have been calculated using average shares outstanding method. The accompanying notes are an integral part of these financial statements. 360 --------------------------------------------------------------------------------
-- SELECTED PER-SHARE DATA(A) -- RATIOS AND SUPPLEMENTAL DATA -- ------------------------------------------------------------------------------- NET REALIZED AND DISTRIBUTIONS NET ASSET NET UNREALIZED TOTAL DIVIDENDS FROM VALUE AT INVESTMENT GAIN FROM FROM NET REALIZED BEGINNING INCOME (LOSS) ON INVESTMENT INVESTMENT CAPITAL OF PERIOD (LOSS) INVESTMENTS OPERATIONS INCOME GAINS --------- ---------- ------------ ---------- ---------- ------------- THE HARTFORD TARGET RETIREMENT 2030 FUND(G) For the Year Ended October 31, 2006(h) Class A................................ $ 9.75 $0.03 $ 0.87 $ 0.90 $(0.49) $ -- Class B................................ 9.74 (0.02) 0.86 0.84 (0.42) -- Class C................................ 9.74 -- 0.85 0.85 (0.42) -- Class Y................................ 9.75 0.10 0.84 0.94 (0.53) -- From September 30, 2005, (commencement of operations) through October 31, 2005 Class A................................ 10.00 0.01 (0.26) (0.25) -- -- Class B................................ 10.00 -- (0.26) (0.26) -- -- Class C................................ 10.00 -- (0.26) (0.26) -- -- Class Y................................ 10.00 0.01 (0.26) (0.25) -- -- THE HARTFORD TAX-FREE CALIFORNIA FUND For the Year Ended October 31, 2006 Class A................................ 10.32 0.38 0.24 0.62 (0.38) (0.01) Class B................................ 10.31 0.30 0.24 0.54 (0.30) (0.01) Class C................................ 10.33 0.30 0.24 0.54 (0.30) (0.01) For the Year Ended October 31, 2005 Class A................................ 10.32 0.38 -- 0.38 (0.38) -- Class B................................ 10.31 0.29 0.01 0.30 (0.30) -- Class C................................ 10.33 0.29 0.01 0.30 (0.30) -- For the Year Ended October 31, 2004 Class A................................ 9.93 0.38 0.41 0.79 (0.40) -- Class B................................ 9.92 0.34 0.38 0.72 (0.33) -- Class C................................ 9.93 0.32 0.41 0.73 (0.33) -- From inception October 31, 2002, through October 31, 2003 Class A................................ 10.00 0.37 (0.07) 0.30 (0.37) -- Class B................................ 10.00 0.30 (0.08) 0.22 (0.30) -- Class C................................ 10.00 0.30 (0.07) 0.23 (0.30) -- -- SELECTED PER-SHARE DATA(A) -- RATIOS AND SUPPLEMENTAL DATA -- -------------------------------------------------------------------- NET INCREASE NET ASSET DISTRIBUTIONS (DECREASE) VALUE AT FROM TOTAL IN NET ASSET END TOTAL CAPITAL DISTRIBUTIONS VALUE OF PERIOD RETURN(B) ------------- ------------- ------------ --------- --------- THE HARTFORD TARGET RETIREMENT 2030 FUND(G) For the Year Ended October 31, 2006(h) Class A................................ $(0.80) $(1.29) $(0.39) $ 9.36 10.00% Class B................................ (0.80) (1.22) (0.38) 9.36 9.22 Class C................................ (0.80) (1.22) (0.37) 9.37 9.35 Class Y................................ (0.80) (1.33) (0.39) 9.36 10.40 From September 30, 2005, (commencement of operations) through October 31, 2005 Class A................................ -- -- (0.25) 9.75 (2.50)(f) Class B................................ -- -- (0.26) 9.74 (2.60)(f) Class C................................ -- -- (0.26) 9.74 (2.60)(f) Class Y................................ -- -- (0.25) 9.75 (2.50)(f) THE HARTFORD TAX-FREE CALIFORNIA FUND For the Year Ended October 31, 2006 Class A................................ -- (0.39) 0.23 10.55 6.13 Class B................................ -- (0.31) 0.23 10.54 5.34 Class C................................ -- (0.31) 0.23 10.56 5.33 For the Year Ended October 31, 2005 Class A................................ -- (0.38) -- 10.32 3.69 Class B................................ -- (0.30) -- 10.31 2.92 Class C................................ -- (0.30) -- 10.33 2.91 For the Year Ended October 31, 2004 Class A................................ -- (0.40) 0.39 10.32 8.15 Class B................................ -- (0.33) 0.39 10.31 7.40 Class C................................ -- (0.33) 0.40 10.33 7.49 From inception October 31, 2002, through October 31, 2003 Class A................................ -- (0.37) (0.07) 9.93 3.06(f) Class B................................ -- (0.30) (0.08) 9.92 2.23(f) Class C................................ -- (0.30) (0.07) 9.93 2.34(f) -- SELECTED PER-SHARE DATA(A) -- RATIOS AND SUPPLEMENTAL DATA -- ------------------------------------------------------------------------------ RATIO OF RATIO OF EXPENSES EXPENSES RATIO OF TO AVERAGE TO AVERAGE NET NET ASSETS NET ASSETS NET ASSETS INVESTMENT AT END OF BEFORE AFTER INCOME (LOSS) PORTFOLIO PERIOD WAIVERS AND WAIVERS AND TO AVERAGE TURNOVER (000'S) REIMBURSEMENTS(D) REIMBURSEMENTS(D) NET ASSETS RATE(C) ---------- ----------------- ----------------- ------------- --------- THE HARTFORD TARGET RETIREMENT 2030 FUND(G) For the Year Ended October 31, 2006(h) Class A................................ $ 1,857 14.20% 0.53% 0.37% 19% Class B................................ 305 15.05 1.24 (0.28) -- Class C................................ 81 15.18 1.10 -- -- Class Y................................ 32 13.67 0.21 1.10 -- From September 30, 2005, (commencement of operations) through October 31, 2005 Class A................................ 10 0.69(e) 0.48(e) 0.76(e) 14 Class B................................ 10 1.39(e) 1.24(e) --(e) -- Class C................................ 9 1.39(e) 1.24(e) --(e) -- Class Y................................ 10 0.34(e) 0.19(e) 1.05(e) -- THE HARTFORD TAX-FREE CALIFORNIA FUND For the Year Ended October 31, 2006 Class A................................ 24,796 0.99 0.90 3.71 2 Class B................................ 1,571 1.77 1.65 2.96 -- Class C................................ 3,435 1.78 1.65 2.95 -- For the Year Ended October 31, 2005 Class A................................ 15,601 1.02 0.90 3.64 31 Class B................................ 1,305 1.80 1.65 2.90 -- Class C................................ 1,937 1.80 1.65 2.90 -- For the Year Ended October 31, 2004 Class A................................ 14,846 1.03 0.95 3.85 41 Class B................................ 1,017 1.84 1.65 3.12 -- Class C................................ 1,448 1.85 1.65 3.06 -- From inception October 31, 2002, through October 31, 2003 Class A................................ 10,799 1.57(e) 0.95(e) 3.73(e) 64 Class B................................ 1,827 2.32(e) 1.65(e) 3.07(e) -- Class C................................ 1,230 2.18(e) 1.65(e) 3.02(e) --
--------------- (a) Information presented relates to a share outstanding throughout the indicated period. (b) 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. (c) Portfolio turnover rate is calculated on the basis of the Fund as a whole without distinguishing between the classes of shares issued. (d) Ratios do not include fees paid indirectly. Please see Note 3(d). (e) Annualized. (f) Not annualized. (g) Expense ratios do not include expenses of the underlying funds. (h) Per share amounts have been calculated using average shares outstanding method. The accompanying notes are an integral part of these financial statements. 361 THE HARTFORD MUTUAL FUNDS, INC. AND THE HARTFORD MUTUAL FUNDS II, INC. FINANCIAL HIGHLIGHTS --------------------------------------------------------------------------------
-- SELECTED PER-SHARE DATA(A) -- RATIOS AND SUPPLEMENTAL DATA -- ------------------------------------------------------------------------------- NET REALIZED AND DISTRIBUTIONS NET ASSET NET UNREALIZED TOTAL DIVIDENDS FROM VALUE AT INVESTMENT GAIN FROM FROM NET REALIZED BEGINNING INCOME (LOSS) ON INVESTMENT INVESTMENT CAPITAL OF PERIOD (LOSS) INVESTMENTS OPERATIONS INCOME GAINS --------- ---------- ------------ ---------- ---------- ------------- THE HARTFORD TAX-FREE MINNESOTA FUND For the Year Ended October 31, 2006 Class A................................ $10.22 $0.41 $ 0.13 $0.54 $(0.41) $(0.02) Class B................................ 10.23 0.33 0.14 0.47 (0.33) (0.02) Class C................................ 10.25 0.33 0.14 0.47 (0.33) (0.02) Class E................................ 10.28 0.41 0.13 0.54 (0.41) (0.02) Class H................................ 10.28 0.33 0.14 0.47 (0.33) (0.02) Class L................................ 10.25 0.40 0.14 0.54 (0.40) (0.02) Class M................................ 10.27 0.33 0.14 0.47 (0.33) (0.02) Class N................................ 10.27 0.33 0.14 0.47 (0.33) (0.02) Class Y................................ 10.22 0.41 0.14 0.55 (0.41) (0.02) For the Year Ended October 31, 2005(h) Class A................................ 10.44 0.39 (0.22) 0.17 (0.39) -- Class B................................ 10.45 0.31 (0.21) 0.10 (0.32) -- Class C................................ 10.46 0.32 (0.21) 0.11 (0.32) -- Class E................................ 10.50 0.39 (0.21) 0.18 (0.40) -- Class H................................ 10.49 0.31 (0.20) 0.11 (0.32) -- Class L................................ 10.47 0.39 (0.22) 0.17 (0.39) -- Class M................................ 10.48 0.31 (0.20) 0.11 (0.32) -- Class N................................ 10.49 0.31 (0.21) 0.10 (0.32) -- Class Y................................ 10.44 0.40 (0.23) 0.17 (0.39) -- For the Year Ended October 31, 2004 Class A................................ 10.46 0.41 0.24 0.65 (0.40) (0.27) Class B................................ 10.46 0.33 0.25 0.58 (0.32) (0.27) Class C................................ 10.48 0.33 0.24 0.57 (0.32) (0.27) Class E................................ 10.52 0.43 0.25 0.68 (0.43) (0.27) Class H................................ 10.51 0.37 0.20 0.57 (0.32) (0.27) Class L................................ 10.49 0.41 0.24 0.65 (0.40) (0.27) Class M................................ 10.50 0.36 0.21 0.57 (0.32) (0.27) Class N................................ 10.50 0.33 0.25 0.58 (0.32) (0.27) Class Y................................ 10.47 0.43 0.24 0.67 (0.43) (0.27) For the Year Ended October 31, 2003(h) Class A................................ 10.46 0.38 0.05 0.43 (0.38) (0.05) Class B................................ 10.47 0.31 0.04 0.35 (0.31) (0.05) Class C................................ 10.48 0.31 0.05 0.36 (0.31) (0.05) Class E................................ 10.53 0.41 0.05 0.46 (0.42) (0.05) Class H................................ 10.52 0.30 0.06 0.36 (0.32) (0.05) Class L................................ 10.49 0.39 0.05 0.44 (0.39) (0.05) Class M................................ 10.49 0.31 0.07 0.38 (0.32) (0.05) Class N................................ 10.51 0.31 0.05 0.36 (0.32) (0.05) Class Y................................ 10.49 0.40 0.06 0.46 (0.43) (0.05) For the Period February 19, 2002 through October 31, 2002 Class A................................ 10.29 0.26 0.16 0.42 (0.25) -- Class B................................ 10.27 0.20 0.20 0.40 (0.20) -- Class C................................ 10.27 0.20 0.21 0.41 (0.20) -- Class Y................................ 10.29 0.29 0.20 0.49 (0.29) -- For the Year Ended October 31, 2002 Class E................................ 10.45 0.40 0.07 0.47 (0.39) -- Class H................................ 10.44 0.29 0.07 0.36 (0.28) -- Class L................................ 10.42 0.37 0.06 0.43 (0.36) -- Class M................................ 10.42 0.29 0.06 0.35 (0.28) -- Class N................................ 10.44 0.29 0.06 0.35 (0.28) -- -- SELECTED PER-SHARE DATA(A) -- RATIOS AND SUPPLEMENTAL DATA -- -------------------------------------------------------------------- NET INCREASE NET ASSET DISTRIBUTIONS (DECREASE) VALUE AT FROM TOTAL IN NET ASSET END TOTAL CAPITAL DISTRIBUTIONS VALUE OF PERIOD RETURN(B) ------------- ------------- ------------ --------- --------- THE HARTFORD TAX-FREE MINNESOTA FUND For the Year Ended October 31, 2006 Class A................................ $ -- $(0.43) $ 0.11 $10.33 5.35% Class B................................ -- (0.35) 0.12 10.35 4.65 Class C................................ -- (0.35) 0.12 10.37 4.65 Class E................................ -- (0.43) 0.11 10.39 5.32 Class H................................ -- (0.35) 0.12 10.40 4.63 Class L................................ -- (0.42) 0.12 10.37 5.38 Class M................................ -- (0.35) 0.12 10.39 4.63 Class N................................ -- (0.35) 0.12 10.39 4.63 Class Y................................ -- (0.43) 0.12 10.34 5.44 For the Year Ended October 31, 2005(h) Class A................................ -- (0.39) (0.22) 10.22 1.66 Class B................................ -- (0.32) (0.22) 10.23 0.91 Class C................................ -- (0.32) (0.21) 10.25 1.01 Class E................................ -- (0.40) (0.22) 10.28 1.68 Class H................................ -- (0.32) (0.21) 10.28 1.00 Class L................................ -- (0.39) (0.22) 10.25 1.62 Class M................................ -- (0.32) (0.21) 10.27 1.00 Class N................................ -- (0.32) (0.22) 10.27 0.91 Class Y................................ -- (0.39) (0.22) 10.22 1.66 For the Year Ended October 31, 2004 Class A................................ -- (0.67) (0.02) 10.44 6.37 Class B................................ -- (0.59) (0.01) 10.45 5.71 Class C................................ -- (0.59) (0.02) 10.46 5.60 Class E................................ -- (0.70) (0.02) 10.50 6.62 Class H................................ -- (0.59) (0.02) 10.49 5.61 Class L................................ -- (0.67) (0.02) 10.47 6.41 Class M................................ -- (0.59) (0.02) 10.48 5.61 Class N................................ -- (0.59) (0.01) 10.49 5.71 Class Y................................ -- (0.70) (0.03) 10.44 6.58 For the Year Ended October 31, 2003(h) Class A................................ -- (0.43) -- 10.46 4.23 Class B................................ -- (0.36) (0.01) 10.46 3.42 Class C................................ -- (0.36) -- 10.48 3.51 Class E................................ -- (0.47) (0.01) 10.52 4.50 Class H................................ -- (0.37) (0.01) 10.51 3.46 Class L................................ -- (0.44) -- 10.49 4.34 Class M................................ -- (0.37) 0.01 10.50 3.67 Class N................................ -- (0.37) (0.01) 10.50 3.47 Class Y................................ -- (0.48) (0.02) 10.47 4.50 For the Period February 19, 2002 through October 31, 2002 Class A................................ -- (0.25) 0.17 10.46 4.16(f) Class B................................ -- (0.20) 0.20 10.47 3.93(f) Class C................................ -- (0.20) 0.21 10.48 4.03(f) Class Y................................ -- (0.29) 0.20 10.49 4.92(f) For the Year Ended October 31, 2002 Class E................................ -- (0.39) 0.08 10.53 4.58 Class H................................ -- (0.28) 0.08 10.52 3.56 Class L................................ -- (0.36) 0.07 10.49 4.22 Class M................................ -- (0.28) 0.07 10.49 3.46 Class N................................ -- (0.28) 0.07 10.51 3.46 -- SELECTED PER-SHARE DATA(A) -- RATIOS AND SUPPLEMENTAL DATA -- ------------------------------------------------------------------------------ RATIO OF RATIO OF EXPENSES EXPENSES RATIO OF TO AVERAGE TO AVERAGE NET NET ASSETS NET ASSETS NET ASSETS INVESTMENT AT END OF BEFORE AFTER INCOME (LOSS) PORTFOLIO PERIOD WAIVERS AND WAIVERS AND TO AVERAGE TURNOVER (000'S) REIMBURSEMENTS(D) REIMBURSEMENTS(D) NET ASSETS RATE(C) ---------- ----------------- ----------------- ------------- --------- THE HARTFORD TAX-FREE MINNESOTA FUND For the Year Ended October 31, 2006 Class A................................ $ 6,846 1.23% 0.85% 3.97% 16% Class B................................ 804 1.98 1.57 3.25 -- Class C................................ 411 1.96 1.57 3.25 -- Class E................................ 23,819 0.86 0.83 3.99 -- Class H................................ 116 1.86 1.57 3.25 -- Class L................................ 2,648 1.11 0.87 3.95 -- Class M................................ 120 1.86 1.57 3.25 -- Class N................................ 195 1.86 1.57 3.25 -- Class Y................................ 11 0.88 0.83 3.99 -- For the Year Ended October 31, 2005(h) Class A................................ 5,547 1.26 0.85 3.76 10 Class B................................ 814 2.02 1.60 3.01 -- Class C................................ 418 2.03 1.60 3.02 -- Class E................................ 25,770 0.87 0.87 3.72 -- Class H................................ 116 1.87 1.60 3.00 -- Class L................................ 2,890 1.12 0.90 3.70 -- Class M................................ 127 1.87 1.60 2.99 -- Class N................................ 197 1.87 1.60 3.00 -- Class Y................................ 10 0.90 0.90 3.83 -- For the Year Ended October 31, 2004 Class A................................ 4,286 1.27 0.98 3.87 13 Class B................................ 645 1.99 1.68 3.16 -- Class C................................ 321 1.98 1.69 3.15 -- Class E................................ 27,346 0.82 0.82 4.03 -- Class H................................ 116 1.82 1.68 3.16 -- Class L................................ 2,765 1.07 0.96 3.88 -- Class M................................ 206 1.82 1.70 3.14 -- Class N................................ 214 1.82 1.68 3.17 -- Class Y................................ 1 0.85 0.85 4.07 -- For the Year Ended October 31, 2003(h) Class A................................ 3,242 1.50 1.15 3.58 17 Class B................................ 532 2.21 1.85 2.88 -- Class C................................ 414 2.09 1.85 2.88 -- Class E................................ 29,784 0.83 0.80 3.92 -- Class H................................ 155 1.81 1.78 2.89 -- Class L................................ 2,922 1.07 1.05 3.67 -- Class M................................ 454 1.82 1.80 2.92 -- Class N................................ 212 1.83 1.80 2.92 -- Class Y................................ 1 0.91 0.80 3.82 -- For the Period February 19, 2002 through October 31, 2002 Class A................................ 2,073 1.37(e) 1.15(e) 3.57(e) 36 Class B................................ 238 2.09(e) 1.85(e) 2.73(e) -- Class C................................ 304 1.92(e) 1.85(e) 2.79(e) -- Class Y................................ 1 0.65(e) 0.65(e) 3.83(e) -- For the Year Ended October 31, 2002 Class E................................ 31,414 0.79 0.79 3.81 36 Class H................................ 577 1.81 1.81 2.81 -- Class L................................ 3,344 1.04 1.04 3.56 -- Class M................................ 562 1.79 1.79 2.81 -- Class N................................ 203 1.79 1.79 2.81 --
--------------- (a) Information presented relates to a share outstanding throughout the indicated period. (b) 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. (c) Portfolio turnover rate is calculated on the basis of the Fund as a whole without distinguishing between the classes of shares issued. (d) Ratios do not include fees paid indirectly. Please see Note 3(d). (e) Annualized. (f) Not annualized. (h) Per share amounts have been calculated using average shares outstanding method. The accompanying notes are an integral part of these financial statements. 362 --------------------------------------------------------------------------------
-- SELECTED PER-SHARE DATA(A) -- RATIOS AND SUPPLEMENTAL DATA -- ------------------------------------------------------------------------------- NET REALIZED AND DISTRIBUTIONS NET ASSET NET UNREALIZED TOTAL DIVIDENDS FROM VALUE AT INVESTMENT GAIN FROM FROM NET REALIZED BEGINNING INCOME (LOSS) ON INVESTMENT INVESTMENT CAPITAL OF PERIOD (LOSS) INVESTMENTS OPERATIONS INCOME GAINS --------- ---------- ------------ ---------- ---------- ------------- THE HARTFORD TAX-FREE NATIONAL FUND For the Year Ended October 31, 2006 Class A................................ $11.13 $0.45 $ 0.29 $0.74 $(0.45) $(0.08) Class B................................ 11.06 0.37 0.28 0.65 (0.37) (0.08) Class C................................ 11.09 0.37 0.28 0.65 (0.37) (0.08) Class E................................ 11.12 0.46 0.29 0.75 (0.46) (0.08) Class H................................ 11.09 0.36 0.30 0.66 (0.37) (0.08) Class L................................ 11.10 0.44 0.29 0.73 (0.44) (0.08) Class M................................ 11.09 0.36 0.30 0.66 (0.37) (0.08) Class N................................ 11.07 0.36 0.29 0.65 (0.37) (0.08) Class Y................................ 11.11 0.46 0.29 0.75 (0.46) (0.08) For the Year Ended October 31, 2005(h) Class A................................ 11.22 0.43 (0.09) 0.34 (0.43) -- Class B................................ 11.15 0.35 (0.09) 0.26 (0.35) -- Class C................................ 11.18 0.35 (0.09) 0.26 (0.35) -- Class E................................ 11.21 0.45 (0.10) 0.35 (0.44) -- Class H................................ 11.18 0.35 (0.09) 0.26 (0.35) -- Class L................................ 11.19 0.43 (0.09) 0.34 (0.43) -- Class M................................ 11.18 0.35 (0.09) 0.26 (0.35) -- Class N................................ 11.16 0.35 (0.09) 0.26 (0.35) -- Class Y................................ 11.20 0.45 (0.10) 0.35 (0.44) -- For the Year Ended October 31, 2004 Class A................................ 11.07 0.45 0.32 0.77 (0.45) (0.17) Class B................................ 11.00 0.37 0.32 0.69 (0.37) (0.17) Class C................................ 11.02 0.37 0.33 0.70 (0.37) (0.17) Class E................................ 11.05 0.47 0.33 0.80 (0.47) (0.17) Class H................................ 11.03 0.46 0.23 0.69 (0.37) (0.17) Class L................................ 11.04 0.44 0.33 0.77 (0.45) (0.17) Class M................................ 11.03 0.36 0.33 0.69 (0.37) (0.17) Class N................................ 11.01 0.37 0.32 0.69 (0.37) (0.17) Class Y................................ 11.06 0.47 0.32 0.79 (0.48) (0.17) For the Year Ended October 31, 2003 Class A................................ 11.28 0.41 0.04 0.45 (0.41) (0.25) Class B................................ 11.21 0.33 0.04 0.37 (0.33) (0.25) Class C................................ 11.23 0.33 0.04 0.37 (0.33) (0.25) Class E................................ 11.27 0.45 0.03 0.48 (0.45) (0.25) Class H................................ 11.24 0.36 0.02 0.38 (0.34) (0.25) Class L................................ 11.25 0.42 0.04 0.46 (0.42) (0.25) Class M................................ 11.24 0.34 0.04 0.38 (0.34) (0.25) Class N................................ 11.22 0.33 0.05 0.38 (0.34) (0.25) Class Y................................ 11.28 0.45 0.04 0.49 (0.46) (0.25) For the Period February 19, 2002 through October 31, 2002 Class A................................ 10.99 0.26 0.30 0.56 (0.27) -- Class B................................ 10.97 0.20 0.25 0.45 (0.21) -- Class C................................ 10.97 0.20 0.27 0.47 (0.21) -- Class Y................................ 10.99 0.33 0.27 0.60 (0.31) -- For the Year Ended October 31, 2002 Class E................................ 11.18 0.41 0.12 0.53 (0.40) (0.04) Class H................................ 11.15 0.32 0.11 0.43 (0.30) (0.04) Class L................................ 11.16 0.39 0.12 0.51 (0.38) (0.04) Class M................................ 11.15 0.31 0.12 0.43 (0.30) (0.04) Class N................................ 11.13 0.31 0.12 0.43 (0.30) (0.04) -- SELECTED PER-SHARE DATA(A) -- RATIOS AND SUPPLEMENTAL DATA -- -------------------------------------------------------------------- NET INCREASE NET ASSET DISTRIBUTIONS (DECREASE) VALUE AT FROM TOTAL IN NET ASSET END TOTAL CAPITAL DISTRIBUTIONS VALUE OF PERIOD RETURN(B) ------------- ------------- ------------ --------- --------- THE HARTFORD TAX-FREE NATIONAL FUND For the Year Ended October 31, 2006 Class A................................ $ -- $(0.53) $ 0.21 $11.34 6.82% Class B................................ -- (0.45) 0.20 11.26 5.97 Class C................................ -- (0.45) 0.20 11.29 5.95 Class E................................ -- (0.54) 0.21 11.33 6.94 Class H................................ -- (0.45) 0.21 11.30 6.03 Class L................................ -- (0.52) 0.21 11.31 6.77 Class M................................ -- (0.45) 0.21 11.30 6.04 Class N................................ -- (0.45) 0.20 11.27 5.95 Class Y................................ -- (0.54) 0.21 11.32 6.91 For the Year Ended October 31, 2005(h) Class A................................ -- (0.43) (0.09) 11.13 3.10 Class B................................ -- (0.35) (0.09) 11.06 2.36 Class C................................ -- (0.35) (0.09) 11.09 2.35 Class E................................ -- (0.44) (0.09) 11.12 3.20 Class H................................ -- (0.35) (0.09) 11.09 2.35 Class L................................ -- (0.43) (0.09) 11.10 3.06 Class M................................ -- (0.35) (0.09) 11.09 2.35 Class N................................ -- (0.35) (0.09) 11.07 2.36 Class Y................................ -- (0.44) (0.09) 11.11 3.20 For the Year Ended October 31, 2004 Class A................................ -- (0.62) 0.15 11.22 7.10 Class B................................ -- (0.54) 0.15 11.15 6.39 Class C................................ -- (0.54) 0.16 11.18 6.47 Class E................................ -- (0.64) 0.16 11.21 7.45 Class H................................ -- (0.54) 0.15 11.18 6.37 Class L................................ -- (0.62) 0.15 11.19 7.12 Class M................................ -- (0.54) 0.15 11.18 6.37 Class N................................ -- (0.54) 0.15 11.16 6.38 Class Y................................ -- (0.65) 0.14 11.20 7.36 For the Year Ended October 31, 2003 Class A................................ -- (0.66) (0.21) 11.07 4.18 Class B................................ -- (0.58) (0.21) 11.00 3.43 Class C................................ -- (0.58) (0.21) 11.02 3.42 Class E................................ -- (0.70) (0.22) 11.05 4.39 Class H................................ -- (0.59) (0.21) 11.03 3.47 Class L................................ -- (0.67) (0.21) 11.04 4.24 Class M................................ -- (0.59) (0.21) 11.03 3.47 Class N................................ -- (0.59) (0.21) 11.01 3.48 Class Y................................ -- (0.71) (0.22) 11.06 4.53 For the Period February 19, 2002 through October 31, 2002 Class A................................ -- (0.27) 0.29 11.28 5.17(f) Class B................................ -- (0.21) 0.24 11.21 4.18(f) Class C................................ -- (0.21) 0.26 11.23 4.37(f) Class Y................................ -- (0.31) 0.29 11.28 5.52(f) For the Year Ended October 31, 2002 Class E................................ -- (0.44) 0.09 11.27 4.93 Class H................................ -- (0.34) 0.09 11.24 3.99 Class L................................ -- (0.42) 0.09 11.25 4.72 Class M................................ -- (0.34) 0.09 11.24 3.99 Class N................................ -- (0.34) 0.09 11.22 3.99 -- SELECTED PER-SHARE DATA(A) -- RATIOS AND SUPPLEMENTAL DATA -- ------------------------------------------------------------------------------ RATIO OF RATIO OF EXPENSES EXPENSES RATIO OF TO AVERAGE TO AVERAGE NET NET ASSETS NET ASSETS NET ASSETS INVESTMENT AT END OF BEFORE AFTER INCOME (LOSS) PORTFOLIO PERIOD WAIVERS AND WAIVERS AND TO AVERAGE TURNOVER (000'S) REIMBURSEMENTS(D) REIMBURSEMENTS(D) NET ASSETS RATE(C) ---------- ----------------- ----------------- ------------- --------- THE HARTFORD TAX-FREE NATIONAL FUND For the Year Ended October 31, 2006 Class A................................ $71,876 1.22% 1.00% 4.06% 14% Class B................................ 6,746 2.00 1.75 3.31 -- Class C................................ 12,889 1.97 1.75 3.31 -- Class E................................ 28,964 0.89 0.89 4.17 -- Class H................................ 189 1.89 1.75 3.30 -- Class L................................ 7,606 1.14 1.05 4.01 -- Class M................................ 1,258 1.89 1.75 3.31 -- Class N................................ 375 1.89 1.75 3.30 -- Class Y................................ 11 0.91 0.89 4.17 -- For the Year Ended October 31, 2005(h) Class A................................ 46,163 1.26 1.00 3.88 22 Class B................................ 6,889 2.03 1.75 3.13 -- Class C................................ 8,496 1.99 1.75 3.13 -- Class E................................ 30,993 0.91 0.91 3.97 -- Class H................................ 290 1.91 1.75 3.14 -- Class L................................ 7,958 1.16 1.05 3.83 -- Class M................................ 1,294 1.91 1.75 3.13 -- Class N................................ 495 1.91 1.75 3.13 -- Class Y................................ 10 0.95 0.95 4.04 -- For the Year Ended October 31, 2004 Class A................................ 35,210 1.30 1.08 4.04 18 Class B................................ 6,236 2.01 1.78 3.32 -- Class C................................ 8,357 1.98 1.78 3.33 -- Class E................................ 32,101 0.89 0.89 4.21 -- Class H................................ 650 1.89 1.79 3.31 -- Class L................................ 7,687 1.15 1.08 4.02 -- Class M................................ 1,397 1.90 1.78 3.33 -- Class N................................ 547 1.90 1.78 3.32 -- Class Y................................ 1 0.91 0.91 4.23 -- For the Year Ended October 31, 2003 Class A................................ 21,457 1.61 1.15 3.75 35 Class B................................ 6,598 2.33 1.85 3.05 -- Class C................................ 7,588 2.21 1.85 3.06 -- Class E................................ 33,998 0.92 0.85 4.00 -- Class H................................ 1,747 1.92 1.84 2.99 -- Class L................................ 7,454 1.18 1.10 3.76 -- Class M................................ 1,235 1.92 1.84 3.01 -- Class N................................ 607 1.93 1.85 3.01 -- Class Y................................ 1 1.17 0.85 4.06 -- For the Period February 19, 2002 through October 31, 2002 Class A................................ 12,192 1.63(e) 1.15(e) 3.31(e) 47 Class B................................ 3,764 2.33(e) 1.85(e) 2.54(e) -- Class C................................ 3,121 2.18(e) 1.85(e) 2.57(e) -- Class Y................................ 1 0.63(e) 0.63(e) 4.15(e) -- For the Year Ended October 31, 2002 Class E................................ 39,423 0.94 0.94 3.70 47 Class H................................ 2,895 1.95 1.85 2.83 -- Class L................................ 7,360 1.19 1.15 3.50 -- Class M................................ 1,552 1.95 1.85 2.80 -- Class N................................ 600 1.95 1.85 2.80 --
--------------- (a) Information presented relates to a share outstanding throughout the indicated period. (b) 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. (c) Portfolio turnover rate is calculated on the basis of the Fund as a whole without distinguishing between the classes of shares issued. (d) Ratios do not include fees paid indirectly. Please see Note 3(d). (e) Annualized. (f) Not annualized. (h) Per share amounts have been calculated using average shares outstanding method. The accompanying notes are an integral part of these financial statements. 363 THE HARTFORD MUTUAL FUNDS, INC. AND THE HARTFORD MUTUAL FUNDS II, INC. FINANCIAL HIGHLIGHTS --------------------------------------------------------------------------------
-- SELECTED PER-SHARE DATA(A) -- RATIOS AND SUPPLEMENTAL DATA -- ------------------------------------------------------------------------------- NET REALIZED AND DISTRIBUTIONS NET ASSET NET UNREALIZED TOTAL DIVIDENDS FROM VALUE AT INVESTMENT GAIN FROM FROM NET REALIZED BEGINNING INCOME (LOSS) ON INVESTMENT INVESTMENT CAPITAL OF PERIOD (LOSS) INVESTMENTS OPERATIONS INCOME GAINS --------- ---------- ------------ ---------- ---------- ------------- THE HARTFORD TAX-FREE NEW YORK FUND For the Year Ended October 31, 2006 Class A................................ $10.32 $0.39 $ 0.23 $0.62 $(0.39) $(0.02) Class B................................ 10.32 0.31 0.24 0.55 (0.32) (0.02) Class C................................ 10.32 0.32 0.23 0.55 (0.32) (0.02) For the Year Ended October 31, 2005 Class A................................ 10.42 0.36 (0.08) 0.28 (0.36) (0.02) Class B................................ 10.42 0.28 (0.08) 0.20 (0.28) (0.02) Class C................................ 10.42 0.28 (0.08) 0.20 (0.28) (0.02) For the Year Ended October 31, 2004 Class A................................ 10.15 0.37 0.37 0.74 (0.39) (0.08) Class B................................ 10.15 0.30 0.37 0.67 (0.32) (0.08) Class C................................ 10.15 0.30 0.37 0.67 (0.32) (0.08) From inception October 31, 2002, through October 31, 2003 Class A................................ 10.00 0.34 0.16 0.50 (0.35) -- Class B................................ 10.00 0.27 0.16 0.43 (0.28) -- Class C................................ 10.00 0.27 0.16 0.43 (0.28) -- THE HARTFORD TOTAL RETURN BOND FUND For the Year Ended October 31, 2006 Class A................................ 10.62 0.41 0.04 0.45 (0.42) (0.06) Class B................................ 10.57 0.33 0.04 0.37 (0.34) (0.06) Class C................................ 10.64 0.34 0.03 0.37 (0.34) (0.06) Class Y................................ 10.73 0.47 0.04 0.51 (0.47) (0.06) From August 31, 2006, (commencement of operations) through October 31, 2006 Class I................................ 10.51 0.08 0.09 0.17 (0.08) -- For the Year Ended October 31, 2005 Class A................................ 10.95 0.35 (0.24) 0.11 (0.40) (0.04) Class B................................ 10.90 0.27 (0.24) 0.03 (0.32) (0.04) Class C................................ 10.97 0.29 (0.25) 0.04 (0.33) (0.04) Class Y................................ 11.06 0.40 (0.24) 0.16 (0.45) (0.04) For the Year Ended October 31, 2004 Class A................................ 11.14 0.32 0.21 0.53 (0.35) (0.37) Class B................................ 11.09 0.24 0.22 0.46 (0.28) (0.37) Class C................................ 11.12 0.27 0.23 0.50 (0.28) (0.37) Class Y................................ 11.24 0.39 0.21 0.60 (0.41) (0.37) For the Year Ended October 31, 2003 Class A................................ 10.78 0.49 0.48 0.97 (0.50) (0.11) Class B................................ 10.73 0.42 0.47 0.89 (0.42) (0.11) Class C................................ 10.77 0.42 0.46 0.88 (0.42) (0.11) Class Y................................ 10.87 0.53 0.50 1.03 (0.55) (0.11) For the Year Ended October 31, 2002(h) Class A................................ 10.90 0.47 -- 0.47 (0.52) (0.07) Class B................................ 10.85 0.40 -- 0.40 (0.45) (0.07) Class C................................ 10.89 0.40 -- 0.40 (0.45) (0.07) Class Y................................ 10.99 0.45 0.08 0.53 (0.58) (0.07) -- SELECTED PER-SHARE DATA(A) -- RATIOS AND SUPPLEMENTAL DATA -- -------------------------------------------------------------------- NET INCREASE NET ASSET DISTRIBUTIONS (DECREASE) VALUE AT FROM TOTAL IN NET ASSET END TOTAL CAPITAL DISTRIBUTIONS VALUE OF PERIOD RETURN(B) ------------- ------------- ------------ --------- --------- THE HARTFORD TAX-FREE NEW YORK FUND For the Year Ended October 31, 2006 Class A................................ $ -- $(0.41) $ 0.21 $10.53 6.21% Class B................................ -- (0.34) 0.21 10.53 5.41 Class C................................ -- (0.34) 0.21 10.53 5.41 For the Year Ended October 31, 2005 Class A................................ -- (0.38) (0.10) 10.32 2.66 Class B................................ -- (0.30) (0.10) 10.32 1.90 Class C................................ -- (0.30) (0.10) 10.32 1.90 For the Year Ended October 31, 2004 Class A................................ -- (0.47) 0.27 10.42 7.52 Class B................................ -- (0.40) 0.27 10.42 6.76 Class C................................ -- (0.40) 0.27 10.42 6.76 From inception October 31, 2002, through October 31, 2003 Class A................................ -- (0.35) 0.15 10.15 5.03(f) Class B................................ -- (0.28) 0.15 10.15 4.30(f) Class C................................ -- (0.28) 0.15 10.15 4.30(f) THE HARTFORD TOTAL RETURN BOND FUND For the Year Ended October 31, 2006 Class A................................ -- (0.48) (0.03) 10.59 4.35 Class B................................ -- (0.40) (0.03) 10.54 3.56 Class C................................ -- (0.40) (0.03) 10.61 3.63 Class Y................................ -- (0.53) (0.02) 10.71 4.89 From August 31, 2006, (commencement of operations) through October 31, 2006 Class I................................ -- (0.08) 0.09 10.60 1.58(f) For the Year Ended October 31, 2005 Class A................................ -- (0.44) (0.33) 10.62 1.00 Class B................................ -- (0.36) (0.33) 10.57 0.25 Class C................................ -- (0.37) (0.33) 10.64 0.34 Class Y................................ -- (0.49) (0.33) 10.73 1.45 For the Year Ended October 31, 2004 Class A................................ -- (0.72) (0.19) 10.95 5.10(i) Class B................................ -- (0.65) (0.19) 10.90 4.37(i) Class C................................ -- (0.65) (0.15) 10.97 4.76(i) Class Y................................ -- (0.78) (0.18) 11.06 5.64 For the Year Ended October 31, 2003 Class A................................ -- (0.61) 0.36 11.14 9.16 Class B................................ -- (0.53) 0.36 11.09 8.44 Class C................................ -- (0.53) 0.35 11.12 8.31 Class Y................................ -- (0.66) 0.37 11.24 9.68 For the Year Ended October 31, 2002(h) Class A................................ -- (0.59) (0.12) 10.78 4.50 Class B................................ -- (0.52) (0.12) 10.73 3.77 Class C................................ -- (0.52) (0.12) 10.77 3.80 Class Y................................ -- (0.65) (0.12) 10.87 5.01 -- SELECTED PER-SHARE DATA(A) -- RATIOS AND SUPPLEMENTAL DATA -- ------------------------------------------------------------------------------ RATIO OF RATIO OF EXPENSES EXPENSES RATIO OF TO AVERAGE TO AVERAGE NET NET ASSETS NET ASSETS NET ASSETS INVESTMENT AT END OF BEFORE AFTER INCOME (LOSS) PORTFOLIO PERIOD WAIVERS AND WAIVERS AND TO AVERAGE TURNOVER (000'S) REIMBURSEMENTS(D) REIMBURSEMENTS(D) NET ASSETS RATE(C) ---------- ----------------- ----------------- ------------- --------- THE HARTFORD TAX-FREE NEW YORK FUND For the Year Ended October 31, 2006 Class A................................ $ 11,182 1.03% 0.85% 3.78% 25% Class B................................ 1,808 1.79 1.60 3.03 -- Class C................................ 2,492 1.78 1.60 3.03 -- For the Year Ended October 31, 2005 Class A................................ 11,202 1.03 0.85 3.45 23 Class B................................ 1,794 1.80 1.60 2.70 -- Class C................................ 2,677 1.79 1.60 2.70 -- For the Year Ended October 31, 2004 Class A................................ 10,541 1.04 0.91 3.66 24 Class B................................ 1,568 1.74 1.61 2.96 -- Class C................................ 1,973 1.75 1.62 2.95 -- From inception October 31, 2002, through October 31, 2003 Class A................................ 8,602 1.63(e) 0.95(e) 3.34(e) 54 Class B................................ 1,051 2.38(e) 1.65(e) 2.64(e) -- Class C................................ 1,393 2.26(e) 1.65(e) 2.67(e) -- THE HARTFORD TOTAL RETURN BOND FUND For the Year Ended October 31, 2006 Class A................................ 432,703 1.20 1.20 3.98 347 Class B................................ 79,506 2.02 1.95 3.20 -- Class C................................ 75,194 1.87 1.87 3.29 -- Class Y................................ 285,255 0.70 0.70 4.48 -- From August 31, 2006, (commencement of operations) through October 31, 2006 Class I................................ 38 1.01(e) 0.91(e) 4.78(e) -- For the Year Ended October 31, 2005 Class A................................ 311,557 1.24 1.20 3.24 195 Class B................................ 81,028 2.00 1.95 2.49 -- Class C................................ 74,039 1.87 1.87 2.56 -- Class Y................................ 188,156 0.73 0.73 3.73 -- For the Year Ended October 31, 2004 Class A................................ 298,903 1.27 1.25 2.98 171 Class B................................ 91,861 1.97 1.95 2.28 -- Class C................................ 89,504 1.86 1.86 2.37 -- Class Y................................ 101,360 0.74 0.74 3.48 -- For the Year Ended October 31, 2003 Class A................................ 268,655 1.40 1.25 3.39 199 Class B................................ 106,077 2.13 1.95 2.70 -- Class C................................ 110,214 2.01 1.95 2.71 -- Class Y................................ 60,125 0.81 0.80 3.82 -- For the Year Ended October 31, 2002(h) Class A................................ 215,083 1.42 1.25 4.65 149 Class B................................ 98,028 2.10 1.95 3.92 -- Class C................................ 107,479 1.98 1.95 3.92 -- Class Y................................ 39,778 0.78 0.78 5.16 --
--------------- (a) Information presented relates to a share outstanding throughout the indicated period. (b) 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. (c) Portfolio turnover rate is calculated on the basis of the Fund as a whole without distinguishing between the classes of shares issued. (d) Ratios do not include fees paid indirectly. Please see Note 3(d). (e) Annualized. (f) Not annualized. (h) Per share amounts have been calculated using average shares outstanding method. (i) Without the inclusion of the Payment from Affiliate, the total return would have been 5.08%, 4.35% and 4.57% for Classes A, B and C, respectively. The net asset impact of the Payment from Affiliate was less than $0.01 for Classes A and B and $0.01 for Class C. The accompanying notes are an integral part of these financial statements. 364 --------------------------------------------------------------------------------
-- SELECTED PER-SHARE DATA(A) -- RATIOS AND SUPPLEMENTAL DATA -- ------------------------------------------------------------------------------- NET REALIZED AND DISTRIBUTIONS NET ASSET NET UNREALIZED TOTAL DIVIDENDS FROM VALUE AT INVESTMENT GAIN FROM FROM NET REALIZED BEGINNING INCOME (LOSS) ON INVESTMENT INVESTMENT CAPITAL OF PERIOD (LOSS) INVESTMENTS OPERATIONS INCOME GAINS --------- ---------- ------------ ---------- ---------- ------------- THE HARTFORD U.S. GOVERNMENT SECURITIES FUND For the Year Ended October 31, 2006(h) Class A................................ $9.22 $0.42 $(0.08) $ 0.34 $(0.43) $ -- Class B................................ 9.27 0.35 (0.08) 0.27 (0.36) -- Class C................................ 9.27 0.35 (0.08) 0.27 (0.36) -- Class E................................ 9.30 0.45 (0.08) 0.37 (0.46) -- Class H................................ 9.26 0.36 (0.08) 0.28 (0.37) -- Class L................................ 9.31 0.43 (0.08) 0.35 (0.44) -- Class M................................ 9.27 0.36 (0.08) 0.28 (0.37) -- Class N................................ 9.26 0.36 (0.08) 0.28 (0.37) -- Class Y................................ 9.32 0.41 (0.07) 0.34 (0.46) -- For the Year Ended October 31, 2005 Class A................................ 9.65 0.40 (0.32) 0.08 (0.41) -- Class B................................ 9.62 0.32 (0.34) (0.02) (0.33) -- Class C................................ 9.61 0.32 (0.33) (0.01) (0.33) -- Class E................................ 9.64 0.43 (0.33) 0.10 (0.44) -- Class H................................ 9.61 0.35 (0.35) -- (0.35) -- Class L................................ 9.65 0.41 (0.34) 0.07 (0.41) -- Class M................................ 9.61 0.34 (0.33) 0.01 (0.35) -- Class N................................ 9.60 0.33 (0.32) 0.01 (0.35) -- Class Y................................ 9.66 0.41 (0.31) 0.10 (0.44) -- For the Year Ended October 31, 2004 Class A................................ 9.67 0.40 (0.01) 0.39 (0.41) -- Class B................................ 9.64 0.32 -- 0.32 (0.34) -- Class C................................ 9.63 0.32 -- 0.32 (0.34) -- Class E................................ 9.66 0.44 (0.02) 0.42 (0.44) -- Class H................................ 9.63 0.35 (0.02) 0.33 (0.35) -- Class L................................ 9.67 0.41 (0.01) 0.40 (0.42) -- Class M................................ 9.63 0.34 (0.01) 0.33 (0.35) -- Class N................................ 9.63 0.34 (0.02) 0.32 (0.35) -- Class Y................................ 9.68 0.44 (0.02) 0.42 (0.44) -- For the Year Ended October 31, 2003 Class A................................ 9.88 0.41 (0.21) 0.20 (0.41) -- Class B................................ 9.84 0.33 (0.19) 0.14 (0.34) -- Class C................................ 9.84 0.33 (0.20) 0.13 (0.34) -- Class E................................ 9.87 0.45 (0.20) 0.25 (0.46) -- Class H................................ 9.83 0.35 (0.19) 0.16 (0.36) -- Class L................................ 9.87 0.42 (0.19) 0.23 (0.43) -- Class M................................ 9.84 0.35 (0.20) 0.15 (0.36) -- Class N................................ 9.84 0.35 (0.20) 0.15 (0.36) -- Class Y................................ 9.89 0.45 (0.20) 0.25 (0.46) -- For the Period February 19, 2002 through October 31, 2002 Class A................................ 9.50 0.26 0.38 0.64 (0.26) -- Class B................................ 9.46 0.21 0.38 0.59 (0.21) -- Class C................................ 9.46 0.21 0.38 0.59 (0.21) -- Class Y................................ 9.50 0.32 0.36 0.68 (0.29) -- For the Year Ended October 31, 2002 Class E................................ 9.67 0.42 0.19 0.61 (0.41) -- Class H................................ 9.64 0.32 0.19 0.51 (0.32) -- Class L................................ 9.67 0.39 0.20 0.59 (0.39) -- Class M................................ 9.64 0.32 0.20 0.52 (0.32) -- Class N................................ 9.64 0.32 0.20 0.52 (0.32) -- -- SELECTED PER-SHARE DATA(A) -- RATIOS AND SUPPLEMENTAL DATA -- -------------------------------------------------------------------- NET INCREASE NET ASSET DISTRIBUTIONS (DECREASE) VALUE AT FROM TOTAL IN NET ASSET END TOTAL CAPITAL DISTRIBUTIONS VALUE OF PERIOD RETURN(B) ------------- ------------- ------------ --------- --------- THE HARTFORD U.S. GOVERNMENT SECURITIES FUND For the Year Ended October 31, 2006(h) Class A................................ $ -- $(0.43) $(0.09) $9.23 3.77% Class B................................ -- (0.36) (0.09) 9.18 3.01 Class C................................ -- (0.36) (0.09) 9.18 3.01 Class E................................ -- (0.46) (0.09) 9.21 4.12 Class H................................ -- (0.37) (0.09) 9.17 3.08 Class L................................ -- (0.44) (0.09) 9.22 3.86 Class M................................ -- (0.37) (0.09) 9.18 3.08 Class N................................ -- (0.37) (0.09) 9.17 3.09 Class Y................................ -- (0.46) (0.12) 9.20 3.75 For the Year Ended October 31, 2005 Class A................................ -- (0.41) (0.33) 9.32 0.79 Class B................................ -- (0.33) (0.35) 9.27 (0.17) Class C................................ -- (0.33) (0.34) 9.27 (0.07) Class E................................ -- (0.44) (0.34) 9.30 1.02 Class H................................ -- (0.35) (0.35) 9.26 (0.07) Class L................................ -- (0.41) (0.34) 9.31 0.77 Class M................................ -- (0.35) (0.34) 9.27 0.04 Class N................................ -- (0.35) (0.34) 9.26 0.04 Class Y................................ -- (0.44) (0.34) 9.32 1.04 For the Year Ended October 31, 2004 Class A................................ -- (0.41) (0.02) 9.65 4.08 Class B................................ -- (0.34) (0.02) 9.62 3.37 Class C................................ -- (0.34) (0.02) 9.61 3.37 Class E................................ -- (0.44) (0.02) 9.64 4.50 Class H................................ -- (0.35) (0.02) 9.61 3.48 Class L................................ -- (0.42) (0.02) 9.65 4.24 Class M................................ -- (0.35) (0.02) 9.61 3.47 Class N................................ -- (0.35) (0.03) 9.60 3.37 Class Y................................ -- (0.44) (0.02) 9.66 4.48 For the Year Ended October 31, 2003 Class A................................ -- (0.41) (0.21) 9.67 2.06 Class B................................ -- (0.34) (0.20) 9.64 1.45 Class C................................ -- (0.34) (0.21) 9.63 1.34 Class E................................ -- (0.46) (0.21) 9.66 2.49 Class H................................ -- (0.36) (0.20) 9.63 1.57 Class L................................ -- (0.43) (0.20) 9.67 2.32 Class M................................ -- (0.36) (0.21) 9.63 1.47 Class N................................ -- (0.36) (0.21) 9.63 1.47 Class Y................................ -- (0.46) (0.21) 9.68 2.51 For the Period February 19, 2002 through October 31, 2002 Class A................................ -- (0.26) 0.38 9.88 6.87(f) Class B................................ -- (0.21) 0.38 9.84 6.36(f) Class C................................ -- (0.21) 0.38 9.84 6.36(f) Class Y................................ -- (0.29) 0.39 9.89 7.32(f) For the Year Ended October 31, 2002 Class E................................ -- (0.41) 0.20 9.87 6.55 Class H................................ -- (0.32) 0.19 9.83 5.41 Class L................................ -- (0.39) 0.20 9.87 6.29 Class M................................ -- (0.32) 0.20 9.84 5.51 Class N................................ -- (0.32) 0.20 9.84 5.52 -- SELECTED PER-SHARE DATA(A) -- RATIOS AND SUPPLEMENTAL DATA -- ------------------------------------------------------------------------------ RATIO OF RATIO OF EXPENSES EXPENSES RATIO OF TO AVERAGE TO AVERAGE NET NET ASSETS NET ASSETS NET ASSETS INVESTMENT AT END OF BEFORE AFTER INCOME (LOSS) PORTFOLIO PERIOD WAIVERS AND WAIVERS AND TO AVERAGE TURNOVER (000'S) REIMBURSEMENTS(D) REIMBURSEMENTS(D) NET ASSETS RATE(C) ---------- ----------------- ----------------- ------------- --------- THE HARTFORD U.S. GOVERNMENT SECURITIES FUND For the Year Ended October 31, 2006(h) Class A................................ $ 45,851 1.39% 1.15% 4.60% 158% Class B................................ 17,011 2.20 1.90 3.84 -- Class C................................ 9,698 2.08 1.90 3.86 -- Class E................................ 89,487 0.83 0.83 4.92 -- Class H................................ 1,922 1.83 1.83 3.91 -- Class L................................ 30,712 1.08 1.08 4.67 -- Class M................................ 2,099 1.83 1.83 3.91 -- Class N................................ 686 1.83 1.83 3.92 -- Class Y................................ 101 0.85 0.83 4.86 -- For the Year Ended October 31, 2005 Class A................................ 47,252 1.38 1.15 4.17 108 Class B................................ 21,268 2.17 1.90 3.41 -- Class C................................ 9,631 2.05 1.90 3.41 -- Class E................................ 105,381 0.83 0.83 4.49 -- Class H................................ 2,720 1.82 1.82 3.48 -- Class L................................ 34,880 1.08 1.08 4.24 -- Class M................................ 2,756 1.82 1.82 3.48 -- Class N................................ 844 1.82 1.82 3.49 -- Class Y................................ 9,244 0.86 0.86 4.52 -- For the Year Ended October 31, 2004 Class A................................ 53,401 1.38 1.20 4.09 110 Class B................................ 26,218 2.11 1.90 3.39 -- Class C................................ 13,926 2.00 1.90 3.38 -- Class E................................ 119,923 0.79 0.79 4.50 -- Class H................................ 3,914 1.79 1.79 3.49 -- Class L................................ 38,613 1.04 1.04 4.26 -- Class M................................ 3,697 1.79 1.79 3.50 -- Class N................................ 1,056 1.79 1.79 3.49 -- Class Y................................ 1 0.83 0.83 4.51 -- For the Year Ended October 31, 2003 Class A................................ 65,337 1.48 1.20 4.11 108 Class B................................ 38,210 2.21 1.90 3.41 -- Class C................................ 26,626 2.07 1.90 3.43 -- Class E................................ 135,954 0.81 0.81 4.49 -- Class H................................ 6,283 1.80 1.80 3.50 -- Class L................................ 43,202 1.06 1.06 4.24 -- Class M................................ 4,588 1.80 1.80 3.50 -- Class N................................ 1,388 1.80 1.80 3.49 -- Class Y................................ 1 0.87 0.80 4.50 -- For the Period February 19, 2002 through October 31, 2002 Class A................................ 75,245 1.59(e) 1.20(e) 3.58(e) 218 Class B................................ 39,276 2.28(e) 1.90(e) 2.87(e) -- Class C................................ 40,708 2.11(e) 1.90(e) 2.86(e) -- Class Y................................ 1 0.74(e) 0.74(e) 4.36(e) -- For the Year Ended October 31, 2002 Class E................................ 156,085 0.81 0.81 4.45 218 Class H................................ 9,319 1.81 1.81 3.45 -- Class L................................ 49,048 1.06 1.06 4.20 -- Class M................................ 6,660 1.81 1.81 3.44 -- Class N................................ 1,717 1.81 1.81 3.47 --
--------------- (a) Information presented relates to a share outstanding throughout the indicated period. (b) 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. (c) Portfolio turnover rate is calculated on the basis of the Fund as a whole without distinguishing between the classes of shares issued. (d) Ratios do not include fees paid indirectly. Please see Note 3(d). (e) Annualized. (f) Not annualized. The accompanying notes are an integral part of these financial statements. 365 THE HARTFORD MUTUAL FUNDS, INC. AND THE HARTFORD MUTUAL FUNDS II, INC. FINANCIAL HIGHLIGHTS --------------------------------------------------------------------------------
-- SELECTED PER-SHARE DATA(A) -- RATIOS AND SUPPLEMENTAL DATA -- ------------------------------------------------------------------------------- NET REALIZED AND DISTRIBUTIONS NET ASSET NET UNREALIZED TOTAL DIVIDENDS FROM VALUE AT INVESTMENT GAIN FROM FROM NET REALIZED BEGINNING INCOME (LOSS) ON INVESTMENT INVESTMENT CAPITAL OF PERIOD (LOSS) INVESTMENTS OPERATIONS INCOME GAINS --------- ---------- ------------ ---------- ---------- ------------- THE HARTFORD VALUE FUND For the Year Ended October 31, 2006 Class A................................ $10.79 $ 0.09 $ 2.11 $ 2.20 $(0.08) $ -- Class B................................ 10.62 0.01 2.08 2.09 -- -- Class C................................ 10.62 0.01 2.08 2.09 -- -- Class Y................................ 10.79 0.15 2.10 2.25 (0.13) -- For the Year Ended October 31, 2005 Class A................................ 9.71 0.08 1.04 1.12 (0.04) -- Class B................................ 9.60 -- 1.02 1.02 -- -- Class C................................ 9.60 -- 1.02 1.02 -- -- Class Y................................ 9.71 0.12 1.05 1.17 (0.09) -- For the Year Ended October 31, 2004(h) Class A................................ 8.92 0.07 0.79 0.86 (0.07) -- Class B................................ 8.83 0.01 0.78 0.79 (0.02) -- Class C................................ 8.83 0.01 0.78 0.79 (0.02) -- Class Y................................ 8.95 0.10 0.77 0.87 (0.11) -- For the Year Ended October 31, 2003(h) Class A................................ 7.59 0.08 1.31 1.39 (0.06) -- Class B................................ 7.51 0.03 1.29 1.32 -- -- Class C................................ 7.51 0.03 1.29 1.32 -- -- Class Y................................ 7.64 0.16 1.25 1.41 (0.10) -- For the Year Ended October 31, 2002(h) Class A................................ 9.02 0.05 (1.43) (1.38) -- (0.05) Class B................................ 8.99 (0.02) (1.41) (1.43) -- (0.05) Class C................................ 8.99 (0.02) (1.41) (1.43) -- (0.05) Class Y................................ 9.04 0.09 (1.44) (1.35) -- (0.05) -- SELECTED PER-SHARE DATA(A) -- RATIOS AND SUPPLEMENTAL DATA -- -------------------------------------------------------------------- NET INCREASE NET ASSET DISTRIBUTIONS (DECREASE) VALUE AT FROM TOTAL IN NET ASSET END TOTAL CAPITAL DISTRIBUTIONS VALUE OF PERIOD RETURN(B) ------------- ------------- ------------ --------- --------- THE HARTFORD VALUE FUND For the Year Ended October 31, 2006 Class A................................ $ -- $(0.08) $ 2.12 $12.91 20.52% Class B................................ -- -- 2.09 12.71 19.68 Class C................................ -- -- 2.09 12.71 19.68 Class Y................................ -- (0.13) 2.12 12.91 21.07 For the Year Ended October 31, 2005 Class A................................ -- (0.04) 1.08 10.79 11.50 Class B................................ -- -- 1.02 10.62 10.62 Class C................................ -- -- 1.02 10.62 10.62 Class Y................................ -- (0.09) 1.08 10.79 12.06 For the Year Ended October 31, 2004(h) Class A................................ -- (0.07) 0.79 9.71 9.70 Class B................................ -- (0.02) 0.77 9.60 8.91 Class C................................ -- (0.02) 0.77 9.60 8.91 Class Y................................ -- (0.11) 0.76 9.71 9.76 For the Year Ended October 31, 2003(h) Class A................................ -- (0.06) 1.33 8.92 18.43 Class B................................ -- -- 1.32 8.83 17.58 Class C................................ -- -- 1.32 8.83 17.58 Class Y................................ -- (0.10) 1.31 8.95 18.66 For the Year Ended October 31, 2002(h) Class A................................ -- (0.05) (1.43) 7.59 (15.42) Class B................................ -- (0.05) (1.48) 7.51 (16.03) Class C................................ -- (0.05) (1.48) 7.51 (16.03) Class Y................................ -- (0.05) (1.40) 7.64 (15.05) -- SELECTED PER-SHARE DATA(A) -- RATIOS AND SUPPLEMENTAL DATA -- ------------------------------------------------------------------------------ RATIO OF RATIO OF EXPENSES EXPENSES RATIO OF TO AVERAGE TO AVERAGE NET NET ASSETS NET ASSETS NET ASSETS INVESTMENT AT END OF BEFORE AFTER INCOME (LOSS) PORTFOLIO PERIOD WAIVERS AND WAIVERS AND TO AVERAGE TURNOVER (000'S) REIMBURSEMENTS(D) REIMBURSEMENTS(D) NET ASSETS RATE(C) ---------- ----------------- ----------------- ------------- --------- THE HARTFORD VALUE FUND For the Year Ended October 31, 2006 Class A................................ $79,476 1.38% 1.38% 0.89% 50% Class B................................ 11,957 2.29 2.13 0.15 -- Class C................................ 12,943 2.15 2.15 0.12 -- Class Y................................ 72,054 0.92 0.92 1.36 -- For the Year Ended October 31, 2005 Class A................................ 63,417 1.41 1.40 0.76 29 Class B................................ 10,091 2.34 2.15 0.01 -- Class C................................ 10,238 2.19 2.15 0.02 -- Class Y................................ 60,218 0.93 0.93 1.19 -- For the Year Ended October 31, 2004(h) Class A................................ 56,845 1.46 1.45 0.76 34 Class B................................ 8,948 2.36 2.15 0.06 -- Class C................................ 10,838 2.17 2.15 0.06 -- Class Y................................ 21,373 0.91 0.91 1.32 -- For the Year Ended October 31, 2003(h) Class A................................ 42,101 1.57 1.45 1.02 35 Class B................................ 7,305 2.30 2.15 0.32 -- Class C................................ 10,231 2.18 2.15 0.32 -- Class Y................................ 27 1.00 1.00 1.46 -- For the Year Ended October 31, 2002(h) Class A................................ 30,010 1.63 1.45 0.69 35 Class B................................ 5,222 2.31 2.15 (0.02) -- Class C................................ 9,110 2.21 2.15 (0.04) -- Class Y................................ 230 0.98 0.98 1.09 --
--------------- (a) Information presented relates to a share outstanding throughout the indicated period. (b) 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. (c) Portfolio turnover rate is calculated on the basis of the Fund as a whole without distinguishing between the classes of shares issued. (d) Ratios do not include fees paid indirectly. Please see Note 3(d). (h) Per share amounts have been calculated using average shares outstanding method. The accompanying notes are an integral part of these financial statements. 366 --------------------------------------------------------------------------------
-- SELECTED PER-SHARE DATA(A) -- RATIOS AND SUPPLEMENTAL DATA -- ------------------------------------------------------------------------------- NET REALIZED AND DISTRIBUTIONS NET ASSET NET UNREALIZED TOTAL DIVIDENDS FROM VALUE AT INVESTMENT GAIN FROM FROM NET REALIZED BEGINNING INCOME (LOSS) ON INVESTMENT INVESTMENT CAPITAL OF PERIOD (LOSS) INVESTMENTS OPERATIONS INCOME GAINS --------- ---------- ------------ ---------- ---------- ------------- THE HARTFORD VALUE OPPORTUNITIES FUND For the Year Ended October 31, 2006(h) Class A................................ $15.56 $ 0.09 $ 3.11 $ 3.20 $ -- $(0.50) Class B................................ 14.56 (0.03) 2.89 2.86 -- (0.50) Class C................................ 14.56 (0.04) 2.90 2.86 -- (0.50) Class H................................ 14.58 (0.01) 2.90 2.89 -- (0.50) Class L................................ 15.58 0.12 3.11 3.23 (0.02) (0.50) Class M................................ 14.57 (0.01) 2.89 2.88 -- (0.50) Class N................................ 14.58 (0.01) 2.90 2.89 -- (0.50) Class Y................................ 15.74 0.15 3.15 3.30 (0.06) (0.50) From August 31, 2006, (commencement of operations) through October 31, 2006(h) Class I................................ 17.12 0.01 1.14 1.15 -- -- For the Year Ended October 31, 2005 Class A................................ 14.06 0.03 1.47 1.50 -- -- Class B................................ 13.24 (0.05) 1.37 1.32 -- -- Class C................................ 13.25 (0.05) 1.36 1.31 -- -- Class H................................ 13.25 (0.05) 1.38 1.33 -- -- Class L................................ 14.06 0.07 1.45 1.52 -- -- Class M................................ 13.24 (0.05) 1.38 1.33 -- -- Class N................................ 13.26 (0.05) 1.37 1.32 -- -- Class Y................................ 14.17 0.05 1.52 1.57 -- -- For the Year Ended October 31, 2004 Class A................................ 12.15 0.01 1.90 1.91 -- -- Class B................................ 11.53 (0.06) 1.77 1.71 -- -- Class C................................ 11.53 (0.06) 1.78 1.72 -- -- Class H................................ 11.54 (0.10) 1.81 1.71 -- -- Class L................................ 12.15 -- 1.91 1.91 -- -- Class M................................ 11.53 (0.09) 1.80 1.71 -- -- Class N................................ 11.54 (0.09) 1.81 1.72 -- -- Class Y................................ 12.22 0.01 1.94 1.95 -- -- For the Year Ended October 31, 2003 Class A................................ 9.26 (0.01) 2.90 2.89 -- -- Class B................................ 8.84 (0.04) 2.73 2.69 -- -- Class C................................ 8.85 (0.04) 2.72 2.68 -- -- Class H................................ 8.85 (0.08) 2.77 2.69 -- -- Class L................................ 9.26 (0.01) 2.90 2.89 -- -- Class M................................ 8.85 (0.08) 2.76 2.68 -- -- Class N................................ 8.85 (0.08) 2.77 2.69 -- -- Class Y................................ 9.30 0.01 2.91 2.92 -- -- For the Period February 19, 2002 through October 31, 2002 Class A................................ 11.73 -- (2.47) (2.47) -- -- Class B................................ 11.26 (0.02) (2.40) (2.42) -- -- Class C................................ 11.26 (0.02) (2.39) (2.41) -- -- Class Y................................ 11.73 0.05 (2.48) (2.43) -- -- For the Year Ended October 31, 2002 Class H................................ 11.58 (0.11) (1.81) (1.92) -- (0.81) Class L................................ 11.99 -- (1.92) (1.92) -- (0.81) Class M................................ 11.57 (0.08) (1.83) (1.91) -- (0.81) Class N................................ 11.57 (0.13) (1.78) (1.91) -- (0.81) -- SELECTED PER-SHARE DATA(A) -- RATIOS AND SUPPLEMENTAL DATA -- -------------------------------------------------------------------- NET INCREASE NET ASSET DISTRIBUTIONS (DECREASE) VALUE AT FROM TOTAL IN NET ASSET END TOTAL CAPITAL DISTRIBUTIONS VALUE OF PERIOD RETURN(B) ------------- ------------- ------------ --------- --------- THE HARTFORD VALUE OPPORTUNITIES FUND For the Year Ended October 31, 2006(h) Class A................................ $ -- $(0.50) $ 2.70 $18.26 21.12% Class B................................ -- (0.50) 2.36 16.92 20.21 Class C................................ -- (0.50) 2.36 16.92 20.20 Class H................................ -- (0.50) 2.39 16.97 20.39 Class L................................ -- (0.52) 2.71 18.29 21.31 Class M................................ -- (0.50) 2.38 16.95 20.33 Class N................................ -- (0.50) 2.39 16.97 20.39 Class Y................................ -- (0.56) 2.74 18.48 21.55 From August 31, 2006, (commencement of operations) through October 31, 2006(h) Class I................................ -- -- 1.15 18.27 6.72(f) For the Year Ended October 31, 2005 Class A................................ -- -- 1.50 15.56 10.67 Class B................................ -- -- 1.32 14.56 9.97 Class C................................ -- -- 1.31 14.56 9.89 Class H................................ -- -- 1.33 14.58 10.04 Class L................................ -- -- 1.52 15.58 10.81 Class M................................ -- -- 1.33 14.57 10.05 Class N................................ -- -- 1.32 14.58 9.96 Class Y................................ -- -- 1.57 15.74 11.08 For the Year Ended October 31, 2004 Class A................................ -- -- 1.91 14.06 15.72 Class B................................ -- -- 1.71 13.24 14.83 Class C................................ -- -- 1.72 13.25 14.92 Class H................................ -- -- 1.71 13.25 14.82 Class L................................ -- -- 1.91 14.06 15.72 Class M................................ -- -- 1.71 13.24 14.83 Class N................................ -- -- 1.72 13.26 14.90 Class Y................................ -- -- 1.95 14.17 15.96 For the Year Ended October 31, 2003 Class A................................ -- -- 2.89 12.15 31.21 Class B................................ -- -- 2.69 11.53 30.43 Class C................................ -- -- 2.68 11.53 30.28 Class H................................ -- -- 2.69 11.54 30.40 Class L................................ -- -- 2.89 12.15 31.21 Class M................................ -- -- 2.68 11.53 30.28 Class N................................ -- -- 2.69 11.54 30.40 Class Y................................ -- -- 2.92 12.22 31.40 For the Period February 19, 2002 through October 31, 2002 Class A................................ -- -- (2.47) 9.26 (21.06)(f) Class B................................ -- -- (2.42) 8.84 (21.45)(f) Class C................................ -- -- (2.41) 8.85 (21.41)(f) Class Y................................ -- -- (2.43) 9.30 (20.75)(f) For the Year Ended October 31, 2002 Class H................................ -- (0.81) (2.73) 8.85 (17.99) Class L................................ -- (0.81) (2.73) 9.26 (17.34) Class M................................ -- (0.81) (2.72) 8.85 (17.92) Class N................................ -- (0.81) (2.72) 8.85 (17.92) -- SELECTED PER-SHARE DATA(A) -- RATIOS AND SUPPLEMENTAL DATA -- ------------------------------------------------------------------------------ RATIO OF RATIO OF EXPENSES EXPENSES RATIO OF TO AVERAGE TO AVERAGE NET NET ASSETS NET ASSETS NET ASSETS INVESTMENT AT END OF BEFORE AFTER INCOME (LOSS) PORTFOLIO PERIOD WAIVERS AND WAIVERS AND TO AVERAGE TURNOVER (000'S) REIMBURSEMENTS(D) REIMBURSEMENTS(D) NET ASSETS RATE(C) ---------- ----------------- ----------------- ------------- --------- THE HARTFORD VALUE OPPORTUNITIES FUND For the Year Ended October 31, 2006(h) Class A................................ $111,324 1.52% 1.40% 0.51% 57% Class B................................ 18,271 2.38 2.12 (0.20) -- Class C................................ 22,466 2.22 2.15 (0.24) -- Class H................................ 3,634 1.97 1.97 (0.07) -- Class L................................ 32,983 1.23 1.23 0.68 -- Class M................................ 7,000 1.98 1.98 (0.07) -- Class N................................ 2,087 1.98 1.98 (0.07) -- Class Y................................ 102,915 1.00 1.00 0.90 -- From August 31, 2006, (commencement of operations) through October 31, 2006(h) Class I................................ 12 1.38(e) 1.15(e) 0.12(e) -- For the Year Ended October 31, 2005 Class A................................ 66,368 1.62 1.40 0.27 38 Class B................................ 13,560 2.51 2.15 (0.47) -- Class C................................ 13,258 2.33 2.15 (0.47) -- Class H................................ 4,645 2.06 2.06 (0.27) -- Class L................................ 27,674 1.30 1.30 0.45 -- Class M................................ 7,443 2.06 2.06 (0.28) -- Class N................................ 2,004 2.06 2.06 (0.29) -- Class Y................................ 95,974 1.07 1.07 0.55 -- For the Year Ended October 31, 2004 Class A................................ 24,601 1.82 1.45 0.08 52 Class B................................ 5,709 2.70 2.15 (0.64) -- Class C................................ 5,627 2.47 2.15 (0.64) -- Class H................................ 5,815 2.17 2.15 (0.71) -- Class L................................ 25,687 1.42 1.42 0.04 -- Class M................................ 8,139 2.17 2.15 (0.70) -- Class N................................ 2,143 2.17 2.15 (0.70) -- Class Y................................ 10,101 1.16 1.16 0.34 -- For the Year Ended October 31, 2003 Class A................................ 5,917 1.92 1.45 (0.10) 57 Class B................................ 1,932 2.63 2.15 (0.80) -- Class C................................ 1,613 2.51 2.15 (0.81) -- Class H................................ 6,526 2.26 2.15 (0.82) -- Class L................................ 22,701 1.51 1.45 (0.11) -- Class M................................ 8,015 2.26 2.15 (0.82) -- Class N................................ 1,989 2.26 2.15 (0.82) -- Class Y................................ 1 1.33 1.25 0.08 -- For the Period February 19, 2002 through October 31, 2002 Class A................................ 2,600 1.92(e) 1.45(e) 0.04(e) 70 Class B................................ 481 2.61(e) 2.15(e) (0.71)(e) -- Class C................................ 430 2.48(e) 2.15(e) (0.75)(e) -- Class Y................................ 1 1.13(e) 1.00(e) 0.49(e) -- For the Year Ended October 31, 2002 Class H................................ 5,634 2.17 2.15 (0.82) 70 Class L................................ 19,684 1.43 1.43 (0.11) -- Class M................................ 6,669 2.18 2.15 (0.82) -- Class N................................ 1,749 2.18 2.15 (0.83) --
--------------- (a) Information presented relates to a share outstanding throughout the indicated period. (b) 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. (c) Portfolio turnover rate is calculated on the basis of the Fund as a whole without distinguishing between the classes of shares issued. (d) Ratios do not include fees paid indirectly. Please see Note 3(d). (e) Annualized. (f) Not annualized. (h) Per share amounts have been calculated using average shares outstanding method. The accompanying notes are an integral part of these financial statements. 367 REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM THE BOARD OF DIRECTORS AND SHAREHOLDERS OF 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 Mutual Funds, Inc. (comprising, respectively, The Hartford Advisers Fund, The Hartford Aggressive Growth Allocation Fund, The Hartford Balanced Allocation Fund, The Hartford Balanced Income Fund, The Hartford Capital Appreciation Fund, The Hartford Capital Appreciation II Fund, The Hartford Conservative Allocation Fund, The Hartford Disciplined Equity Fund, The Hartford Dividend and Growth Fund, The Hartford Equity Income Fund, The Hartford Floating Rate 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 Allocation Fund, The Hartford High Yield Fund, The Hartford Income Allocation 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 Growth Fund, The Hartford MidCap Value Fund, The Hartford Money Market Fund, The Hartford Retirement Income Fund, The Hartford Select MidCap Growth Fund, The Hartford Select MidCap Value Fund, The Hartford Select SmallCap Growth Fund, The Hartford Select SmallCap Value Fund, The Hartford Short Duration Fund, The Hartford Small Company Fund, The Hartford Stock Fund, The Hartford Target Retirement 2010 Fund, The Hartford Target Retirement 2020 Fund, The Hartford Target Retirement 2030 Fund, The Hartford Tax-Free California Fund, The Hartford Tax Free New York Fund, The Hartford Total Return Bond Fund, and The Hartford Value Fund) and The Hartford Mutual Funds II, Inc. (comprising, respectively, The Hartford Growth Fund, The Hartford Growth Opportunities Fund, The Hartford SmallCap Growth Fund, The Hartford Tax-Free Minnesota Fund, The Hartford Tax-Free National Fund, The Hartford U.S. Government Securities Fund, and The Hartford Value Opportunities Fund) (collectively, the "Funds") as of October 31, 2006, and the related statements of operations, statements of changes in net assets, statement of cash flows of The Hartford Total Return Bond Fund, and the financial highlights for each of the periods indicated therein. These financial statements and financial highlights are the responsibility of the Funds' management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits. We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (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 of material misstatement. We were not engaged to perform an audit of the Funds' internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Funds' internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements and financial highlights, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of October 31, 2006, by correspondence with the custodian, agent banks or brokers or by other appropriate auditing procedures where replies from agent banks or brokers were not received. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of each of the Funds listed above constituting The Hartford Mutual Funds, Inc. and The Hartford Mutual Funds II, Inc. at October 31, 2006, the results of their operations, cash flows of The Hartford Total Return Bond Fund, the changes in their net assets, and their financial highlights for each of the periods indicated therein, in conformity with U.S. generally accepted accounting principles. /s/ ERNST & YOUNG LLP Minneapolis, Minnesota December 13, 2006 368 THE HARTFORD MUTUAL FUNDS, INC. AND THE HARTFORD MUTUAL FUNDS II, INC. DIRECTORS AND OFFICERS (UNAUDITED) -------------------------------------------------------------------------------- The Board of Directors elects officers who are responsible for the day-to-day operations of the Funds and who execute policies formulated by the Directors. Each director serves until his or her death, resignation, or retirement or until the next meeting of shareholders is held or until his or her successor is elected and qualifies. Directors and officers who are employed by or who have a substantial financial interest in The Hartford are considered "interested" persons of the Funds pursuant to the Investment Company Act of 1940. Each officer and three of the Funds' directors, as noted in the chart below, are "interested" persons of the Funds. Except for Mr. Znamierowski each director serves as a director for The Hartford Mutual Funds, Inc., The Hartford Mutual Funds II, Inc., The Hartford Income Shares Fund, Inc., Hartford Series Fund, Inc., and Hartford HLS Series Fund II, Inc. which collectively consist of 88 funds. Mr. Znamierowski oversees 87 funds and serves as a director only for The Hartford Mutual Funds, Inc., The Hartford Mutual Funds II, Inc., Hartford Series Fund, Inc., and Hartford HLS Series Fund II, Inc. Correspondence may be sent to directors and officers c/o Hartford Mutual Funds, P.O. Box 2999, Hartford, CT 06104-2999, except that correspondence to Ms. Fagely and Ms. Settimi may be sent to 500 Bielenberg Drive, Woodbury, MN 55125. The table below sets forth, for each director and officer, his or her name, age, current position with the Funds, date first elected or appointed to The Hartford Mutual Funds, Inc. ("MF") and The Hartford Mutual Funds II, Inc. ("MF2"), principal occupation, and, for directors, other directorships held. The Funds' statement of additional information contains further information on the directors and is available free of charge by calling 1-888-843-7824 or writing to Hartford Mutual Funds, P.O. Box 64387, St. Paul, MN 55164-0387. Information on the aggregate remuneration paid to the directors by each Fund can be found in the Statement of Operations herein. The Funds do not pay salaries or compensation to any of their officers or directors who are employed by The Hartford. NON-INTERESTED DIRECTORS LYNN S. BIRDSONG (age 60) Director since 2003, Chairman of the Litigation Committee; Co-Chairman of the Investment Committee Since 1981, Mr. Birdsong has been a partner in Birdsong Company, an advertising specialty firm. Since 2003, Mr. Birdsong has been an independent director of The Japan Fund. From 2003 to March 2005, Mr. Birdsong was an independent director of the Atlantic Whitehall Funds. From 1979 to 2002, Mr. Birdsong was a managing director of Zurich Scudder Investments, an investment management firm. During his employment with Scudder, Mr. Birdsong was an interested director of The Japan Fund. ROBERT M. GAVIN (age 66) Director since 2002 (MF) and 1986(MF2), Chairman of the Board since 2004 Dr. Gavin is an educational consultant. Prior to September 1, 2001, he was President of Cranbrook Education Community; and prior to July 1996, he was President of Macalester College, St. Paul, Minnesota. DUANE E. HILL (age 61) Director since 2001 (MF) and 2002 (MF2), Chairman of the Nominating Committee Mr. Hill is a Partner of TSG Ventures L.P., a private equity investment company that invests primarily in minority-owned small businesses. Mr. Hill is a former partner of TSG Capital Group, a private equity investment firm that serves as sponsor and lead investor in leveraged buyouts of middle market companies. SANDRA S. JAFFEE* (age 65) Director since 2005 Ms. Jaffee is Chief Executive Officer of Fortent (formerly Searchspace Group), a leading provider of compliance/regulatory technology to financial institutions. Ms. Jaffee served as an Entrepreneur in Residence with Warburg Pincus, a private equity firm, from August 2004 to August 2005. From September 1995 to July 2004, Ms. Jaffee served as Executive Vice President at Citigroup, where she was President and CEO of Citibank's Global Securities Services. * Ms. Jaffee is a consultant for a controlling shareholder of Institutional Shareholder Services, Inc., an unaffiliated third party corporate governance research service company ("ISS"), and serves as a director of ISS and as a member of the Executive Committee of ISS' Board of Directors. From time to time, ISS may provide in-depth analyses of shareholder meeting agendas, vote recommendations, record-keeping or vote disclosure services to certain of the sub-advisers. WILLIAM P. JOHNSTON (age 62) Director since 2005, Chairman of the Compliance Committee In June 2006, Mr. Johnston was appointed as Senior Advisor to The Carlyle Group, a global private equity investment firm. In May 2006, Mr. Johnston was elected to the Supervisory Board of Fresenius Medical Care AG & Co. KGaA, after its acquisition of Renal Care Group, Inc. in March 2006. Mr. Johnston joined Renal Care Group in November 2002 as a member of the Board of Directors and served as Chairman of the Board from March 2003 through March 2006. From September 1987 to December 2002, Mr. Johnston was with Equitable Securities Corporation (and its successors, SunTrust Equitable Securities and SunTrust Robinson Humphrey) serving in various investment banking and managerial positions, including Managing Director and Head of Investment Banking, Chief Executive Officer and Vice Chairman. PHILLIP O. PETERSON (age 62) Director since 2002 (MF) and 2000 (MF2), Chairman of the Audit Committee Mr. Peterson is a mutual fund industry consultant. From January 2004 to April 2005, Mr. Peterson served as Independent President of the Strong Mutual Funds. LEMMA W. SENBET (age 60) Director since 2005 Since 1998, Dr. Senbet has been Chair of the Finance Department at the University of Maryland, Robert H. Smith School of Business, where he has been the William E. Mayer Chair Professor of Finance since 1990. Previously he was a chair professor of finance at the University of Wisconsin-Madison. In addition, Dr. Senbet previously served as an independent director of the Fortis Funds from March 2000 until July 2002. 369 THE HARTFORD MUTUAL FUNDS, INC. AND THE HARTFORD MUTUAL FUNDS II, INC. DIRECTORS AND OFFICERS (UNAUDITED) -- (CONTINUED) -------------------------------------------------------------------------------- INTERESTED DIRECTORS AND OFFICERS THOMAS M. MARRA (age 48) Director since 2002 Mr. Marra is President and Chief Operating Officer of Hartford Life, Inc. He is also a member of the Board of Directors and a 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. Mr. Marra is also a Managing Member and President of Hartford Investment Financial Services, LLC ("HIFSCO") and HL Investment Advisors, LLC ("HL Advisors"). Mr. Marra served as Chairman of the Board of Hartford Mutual Funds from 2002 to 2004. LOWNDES A. SMITH (age 67) Director since 2002, Co-Chairman of the Investment Committee Mr. Smith served as Vice Chairman 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. DAVID M. ZNAMIEROWSKI (age 46) Director since 1999 (MF) and 2005 (MF2), President since 2001 Mr. Znamierowski currently serves as President of Hartford Investment Management Company ("Hartford Investment Management"), Executive Vice President and Chief Investment Officer for The Hartford, Hartford Life, Inc., and Hartford Life Insurance Company. Mr. Znamierowski is also a Managing Member, Executive Vice President and Chief Investment Officer of HIFSCO and HL Advisors. OTHER OFFICERS ROBERT M. ARENA (age 38) Vice President since 2006(1) Mr. Arena serves as Vice President of Hartford Life and heads its Retail Product Management Group in the Investment Products Division. Prior to joining The Hartford in 2004, he was Senior Vice President in charge of Product Management for American Skandia/Prudential in the individual annuities division. Mr. Arena had joined American Skandia in 1996. Previously, he was with Paul Revere Insurance Group in its group insurance division. (1) Appointed February 1, 2006 TAMARA L. FAGELY (age 48) Vice President, Treasurer and Controller since 1993 Ms. Fagely has been Vice President of HASCO since 1998. Currently, Ms. Fagely is a Vice President of Hartford Life. She served as Assistant Vice President of Hartford Life from December 2001 through May 2005. THOMAS D. JONES III (age 41) Vice President and Chief Compliance Officer since 2006(2) Mr. Jones joined Hartford Life as Vice President and Director of Securities Compliance in 2006 from SEI Investments, where he served as Chief Compliance Officer for its mutual funds and investment advisers. Prior to joining SEI, Mr. Jones was First Vice President and Compliance Director for Merrill Lynch Investment Managers (Americas) ("MLIM"), where he worked from 1992-2004. (2) Appointed February 13, 2006 EDWARD P. MACDONALD (age 39) Vice President, Secretary and Chief Legal Officer since 2005 Mr. Macdonald serves as Assistant General Counsel of The Hartford. Prior to joining The Hartford in 2005, Mr. Macdonald was Chief Counsel, Investment Management, with Prudential Financial (formerly American Skandia Investment Services, Inc.). He joined Prudential in April 1999. VERN J. MEYER (age 42) Vice President since 2006(3) Mr. Meyer serves as Vice President of Hartford Life and Director of its Investment Advisory Group in the Investment Products Division. Prior to joining The Hartford in 2004, Mr. Meyer served as Vice President and managing director of MassMutual, which he joined in 1987. (3) Appointed February 1, 2006 DENISE A. SETTIMI (age 46) Vice President since 2005 Ms. Settimi currently serves as Operations Officer of HASCO. Previously, Ms. Settimi was with American Express Financial Advisors, where she was Director of Retirement Plan Services from 1997 to 2003. JOHN C. WALTERS (age 44) Vice President since 2001 Mr. Walters serves as Executive 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. Previously Mr. Walters was with First Union Securities. HOW TO OBTAIN A COPY OF THE FUNDS' PROXY VOTING POLICIES AND PROXY VOTING RECORDS HOW TO OBTAIN A COPY OF THE FUNDS' PROXY VOTING POLICIES AND PROXY VOTING RECORDS A description of the policies and procedures that the Funds use to determine how to vote proxies relating to portfolio securities and a record of how the Funds voted any proxies for the twelve month period ended June 30, 2006 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. QUARTERLY PORTFOLIO HOLDINGS INFORMATION The Funds file a complete schedule of portfolio holdings with the Commission for the first and third quarters of each fiscal year on Form N-Q. The Funds Forms N-Q will be available (1) without charge, upon request, by calling 888-843-7824 and (2) on the Securities and Exchange Commission's website at www.sec.gov. The Forms N-Q may be reviewed and copied at the Commission's Public Reference Room in Washington, DC. Information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330. 370 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 Funds' fiscal year as required by federal tax law and where applicable this information constitutes designations and notice required by the Internal Revenue Code. Shareholders, however, must report distributions on a calendar year basis for income tax purposes which may include distributions of two fiscal years of the funds. Accordingly, the information needed by shareholders for income tax purposes will be sent to them in early 2007. Shareholders may wish to consult a tax advisor on how to report distributions for state and local purposes. The income received from federal obligations is as follows:
OTHER DIRECT FEDERAL OTHER U.S. TREASURY* OBLIGATIONS* SECURITIES TOTAL DRD** QDI*** QII**** -------------- ------------ ---------- ------ -------- -------- -------- Advisers Fund..................... 16.98% 0.74% 82.28% 100.00% 62.86% 75.59% 61.65% Aggressive Growth Allocation Fund............................ 100.00% 100.00% Balance Income Fund............... 58.84% 60.52% 100.00% Balanced Allocation Fund.......... 7.41% 21.10% 72.52% Capital Appreciation Fund......... 100.00% 100.00% 9.59% Capital Appreciation II Fund...... 11.92% 19.90% Conservative Allocation Fund...... 3.49% 10.20% 72.11% Disciplined Equity Fund........... 33.50% 100.00% 6.19% Dividend & Growth Fund............ 67.79% 82.83% Equity Income Fund................ 88.12% 100.00% Floating Rate Fund................ 100.00% Focus Fund........................ 100.00% Global Communications Fund........ 43.50% 97.07% 6.10% Global Financial Services Fund.... 27.32% 100.00% 11.66% Global Health Fund................ 11.40% 26.10% Global Leaders Fund............... 100.00% Growth Allocation Fund............ 22.33% 78.78% 47.67% High Yield Fund................... 99.18% Income Allocation Fund............ 94.85% Income Fund....................... 6.07% 0.19% 93.74% 100.00% 98.85% Inflation Plus Fund............... 94.91% 0.00% 5.09% 100.00% 100.00% International Capital Appreciation Fund............................ 100.00% International Opportunities Fund............................ 100.00% 34.74% International Small Company Fund............................ 19.39% MidCap Fund....................... 35.51% 39.15% MidCap Value Fund................. 27.56% 33.08% Money Market Fund................. 100.00% Retirement Income Fund............ 1.25% 64.28% Select MidCap Growth Fund......... 22.58% 23.84% Select MidCap Value Fund.......... 1.86% 43.27% Short Duration Fund............... 14.91% 0.06% 85.03% 100.00% 98.50% Stock Fund........................ 100.00% 33.10% Target Retirement 2010 Fund....... 85.25% Target Retirement 2020 Fund....... 1.95% 4.79% 58.64% Target Retirement 2030 Fund....... 3.66% 4.67% 20.87% Tax-Free California Fund.......... 100.00% Tax-Free Minnesota Fund........... 100.00% Tax-Free National Fund............ 100.00% Tax-Free New York Fund............ 100.00% Total Return Bond Fund............ 12.37% 0.45% 87.18% 100.00% 97.03% U.S. Government Securities Fund... 11.72% 4.85% 83.43% 100.00% 100.00% Value Fund........................ 31.50% 100.00% 8.43% Value Opportunities Fund.......... 100.00% QSTCG**** --------- Advisers Fund..................... Aggressive Growth Allocation Fund............................ Balance Income Fund............... Balanced Allocation Fund.......... 100.00% Capital Appreciation Fund......... 100.00% Capital Appreciation II Fund...... 100.00% Conservative Allocation Fund...... 100.00% Disciplined Equity Fund........... Dividend & Growth Fund............ 100.00% Equity Income Fund................ 100.00% Floating Rate Fund................ Focus Fund........................ Global Communications Fund........ Global Financial Services Fund.... Global Health Fund................ 100.00% Global Leaders Fund............... Growth Allocation Fund............ 100.00% High Yield Fund................... Income Allocation Fund............ 100.00% Income Fund....................... Inflation Plus Fund............... 100.00% International Capital Appreciation Fund............................ 100.00% International Opportunities Fund............................ International Small Company Fund............................ 100.00% MidCap Fund....................... 100.00% MidCap Value Fund................. 100.00% Money Market Fund................. Retirement Income Fund............ Select MidCap Growth Fund......... 100.00% Select MidCap Value Fund.......... 100.00% Short Duration Fund............... Stock Fund........................ Target Retirement 2010 Fund....... Target Retirement 2020 Fund....... Target Retirement 2030 Fund....... Tax-Free California Fund.......... Tax-Free Minnesota Fund........... 100.00% Tax-Free National Fund............ 100.00% Tax-Free New York Fund............ 100.00% Total Return Bond Fund............ 100.00% U.S. Government Securities Fund... Value Fund........................ Value Opportunities Fund.......... 100.00%
* The income received from federal obligations. ** Income distributions, taxable as dividend income which qualify for deduction by corporations. *** For the fiscal year ended October 31, 2006, 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 designate the maximum eligible amount of ordinary distributions declared as taxed at a maximum rate of 15%. **** Applicable for non-resident foreign shareholders only. These are the percentages of ordinary income distributions that are designated as interest-related dividends under Internal Revenue Code Section 871(K)(1)(C) (QII) and as short-term capital gain distributions under Internal Revenue Code Section 871(K)(2)(C) (QSTCG). 371 THE HARTFORD MUTUAL FUNDS, INC. AND THE HARTFORD MUTUAL FUNDS II, INC. FEDERAL INCOME TAX INFORMATION (UNAUDITED) -- (CONTINUED) -------------------------------------------------------------------------------- Complete information will be computed and reported in conjunction with your 2006 Form 1099-DIV.
FOREIGN TAX CREDIT PASS-THROUGH ------------------------------- The following Funds elect under the Internal Revenue Code Section 853 to pass-through foreign taxes paid by the Funds to their shareholders as follows: Global Communications Fund............................................ $ 53 International Capital Appreciation Fund............................... 440 International Opportunities Fund...................................... 478 International Small Company Fund...................................... 299
Detailed below are the per share distributions made for the fiscal period ended October 31, 2006.
FUND CLASS A CLASS B CLASS C CLASS E CLASS H CLASS I CLASS L CLASS M CLASS N CLASS Y CLASS Z ---- ------- ------- ------- ------- ------- ------- ------- ------- ------- ------- ------- ADVISERS FUND Income.............. 0.294 0.168 0.182 0.369 ----- ----- ----- ----- AGGRESSIVE GROWTH ALLOCATION FUND Income.............. 0.089 0.016 0.016 Long-Term Capital Gain.............. 0.006 0.006 0.006 ----- ----- ----- Total Income Distributions... 0.096 0.023 0.022 ----- ----- ----- BALANCED ALLOCATION FUND Income.............. 0.215 0.133 0.135 0.049 Short-Term Capital Gain.............. 0.015 0.015 0.015 0.000 Long-Term Capital Gain.............. 0.007 0.007 0.007 0.000 ----- ----- ----- ----- Total Income Distributions... 0.237 0.155 0.157 0.049 ----- ----- ----- ----- BALANCED INCOME FUND Income.............. 0.057 0.043 0.045 0.062 ----- ----- ----- ----- CAPITAL APPRECIATION FUND Short-Term Capital Gain.............. 0.220 0.220 0.220 0.220 Long-Term Capital Gain.............. 3.203 3.203 3.203 3.203 ----- ----- ----- ----- Total Income Distributions... 3.423 3.423 3.423 3.423 ----- ----- ----- ----- CAPITAL APPRECIATION II FUND Short-Term Capital Gain.............. 0.151 0.151 0.151 0.151 ----- ----- ----- ----- CONSERVATIVE ALLOCATION FUND Income.............. 0.310 0.234 0.236 0.073 Short-Term Capital Gain.............. 0.052 0.052 0.052 0.000 Long-Term Capital Gain.............. 0.064 0.064 0.064 0.000 ----- ----- ----- ----- Total Income Distributions... 0.426 0.350 0.351 0.073 ----- ----- ----- ----- DISCIPLINED EQUITY FUND Income.............. 0.018 0.000 0.000 0.080 ----- ----- ----- ----- DIVIDEND AND GROWTH FUND Income.............. 0.262 0.099 0.123 0.081 0.346 Short-Term Capital Gain.............. 0.104 0.104 0.104 0.000 0.104 Long-Term Capital Gain.............. 0.658 0.658 0.658 0.000 0.658 ----- ----- ----- ----- ----- Total Income Distributions... 1.024 0.860 0.885 0.081 1.108 ----- ----- ----- ----- ----- EQUITY INCOME FUND Income.............. 0.281 0.175 0.191 0.075 0.334 Long-Term Capital Gain.............. 0.035 0.035 0.035 0.000 0.035 ----- ----- ----- ----- ----- Total Income Distributions... 0.316 0.209 0.225 0.075 0.369 ----- ----- ----- ----- ----- FLOATING RATE FUND Income.............. 0.624 0.540 0.546 0.122 0.654 ----- ----- ----- ----- ----- FOCUS FUND Income.............. 0.066 0.000 0.000 0.111 ----- ----- ----- ----- GLOBAL COMMUNICATIONS FUND Income.............. 0.100 0.068 0.055 0.128 ----- ----- ----- -----
372 --------------------------------------------------------------------------------
FUND CLASS A CLASS B CLASS C CLASS E CLASS H CLASS I CLASS L CLASS M CLASS N CLASS Y CLASS Z ---- ------- ------- ------- ------- ------- ------- ------- ------- ------- ------- ------- GLOBAL FINANCIAL SERVICES FUND Income.............. 0.112 0.043 0.034 0.158 ----- ----- ----- ----- GLOBAL HEALTH FUND Short-Term Capital Gain.............. 0.458 0.458 0.458 0.458 Long-Term Capital Gain.............. 0.545 0.545 0.545 0.545 ----- ----- ----- ----- Total Income Distributions... 1.003 1.003 1.003 1.003 ----- ----- ----- ----- GLOBAL LEADERS FUND Income.............. 0.016 0.000 0.000 0.103 Long-Term Capital Gain.............. 0.191 0.191 0.191 0.191 ----- ----- ----- ----- Total Income Distributions... 0.208 0.191 0.191 0.294 ----- ----- ----- ----- GROWTH ALLOCATION FUND Income.............. 0.127 0.055 0.055 Short-Term Capital Gain.............. 0.004 0.004 0.004 Long-Term Capital Gain.............. 0.006 0.006 0.006 ----- ----- ----- Total Income Distributions... 0.137 0.065 0.065 ----- ----- ----- GROWTH OPPORTUNITIES FUND Long-Term Capital Gain.............. 2.029 2.029 2.029 2.029 0.000 2.029 2.029 2.029 2.029 2.029 ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- HIGH YIELD FUND Income.............. 0.546 0.486 0.493 0.584 ----- ----- ----- ----- INCOME ALLOCATION FUND Income.............. 0.431 0.362 0.361 0.065 Short-Term Capital Gain.............. 0.015 0.015 0.015 0.000 ----- ----- ----- ----- Total Income Distributions... 0.446 0.377 0.377 0.065 ----- ----- ----- ----- INCOME FUND Income.............. 0.529 0.452 0.453 0.555 ----- ----- ----- ----- INFLATION PLUS FUND Income.............. 0.429 0.350 0.350 0.045 0.459 Long-Term Capital Gain.............. 0.034 0.034 0.034 0.000 0.034 ----- ----- ----- ----- ----- Total Income Distributions... 0.463 0.384 0.384 0.045 0.493 ----- ----- ----- ----- ----- INTERNATIONAL CAPITAL APPRECIATION FUND Income.............. 0.049 0.000 0.000 0.104 Short-Term Capital Gain.............. 0.044 0.044 0.044 0.044 Long-Term Capital Gain.............. 0.094 0.094 0.094 0.094 ----- ----- ----- ----- Total Income Distributions... 0.187 0.138 0.138 0.241 ----- ----- ----- ----- INTERNATIONAL OPPORTUNITIES FUND Income.............. 0.046 0.000 0.000 0.114 ----- ----- ----- ----- INTERNATIONAL SMALL COMPANY FUND Income.............. 0.249 0.165 0.150 0.304 Short-Term Capital Gain.............. 0.926 0.926 0.926 0.926 Long-Term Capital Gain.............. 0.604 0.604 0.604 0.604 ----- ----- ----- ----- Total Income Distributions... 1.779 1.695 1.680 1.834 ----- ----- ----- ----- MIDCAP FUND Short-Term Capital Gain.............. 0.587 0.587 0.587 0.587 Long-Term Capital Gain.............. 3.833 3.833 3.833 3.833 ----- ----- ----- ----- Total Capital Gain Distributions... 4.421 4.421 4.421 4.421 ----- ----- ----- ----- MIDCAP VALUE FUND Short-Term Capital Gain.............. 0.416 0.416 0.416 0.416 Long-Term Capital Gain.............. 0.904 0.904 0.904 0.904 ----- ----- ----- ----- Total Capital Gain Distributions... 1.320 1.320 1.320 1.320 ----- ----- ----- ----- RETIREMENT INCOME FUND Income.............. 0.749 0.675 0.674 0.776 ----- ----- ----- -----
373 THE HARTFORD MUTUAL FUNDS, INC. AND THE HARTFORD MUTUAL FUNDS II, INC. FEDERAL INCOME TAX INFORMATION (UNAUDITED) -- (CONTINUED) --------------------------------------------------------------------------------
FUND CLASS A CLASS B CLASS C CLASS E CLASS H CLASS I CLASS L CLASS M CLASS N CLASS Y CLASS Z ---- ------- ------- ------- ------- ------- ------- ------- ------- ------- ------- ------- SELECT MIDCAP GROWTH FUND Short-Term Capital Gain.............. 0.100 0.100 0.100 0.100 ----- ----- ----- ----- SELECT MIDCAP VALUE FUND Income.............. 0.008 0.000 0.000 0.050 Short-Term Capital Gain.............. 0.240 0.240 0.240 0.240 ----- ----- ----- ----- Total Income Distributions... 0.248 0.240 0.240 0.290 ----- ----- ----- ----- SHORT DURATION FUND Income.............. 0.348 0.273 0.273 0.373 ----- ----- ----- ----- STOCK FUND Income.............. 0.040 0.136 ----- ----- TARGET RETIREMENT 2010 FUND Income.............. 0.861 0.784 0.789 0.887 ----- ----- ----- ----- TARGET RETIREMENT 2020 FUND Income.............. 0.354 0.280 0.282 0.385 ----- ----- ----- ----- TARGET RETIREMENT 2030 FUND Income.............. 1.293 1.218 1.219 1.326 ----- ----- ----- ----- TAX-FREE CALIFORNIA FUND Tax-Exempt Income... 0.382 0.304 0.304 Long-Term Capital Gain.............. 0.007 0.007 0.007 ----- ----- ----- Total Income Distributions... 0.389 0.311 0.311 ----- ----- ----- TAX-FREE MINNESOTA FUND Tax-Exempt Income... 0.407 0.330 0.330 0.407 0.330 0.402 0.330 0.330 0.406 Short-Term Capital Gain.............. 0.016 0.016 0.016 0.016 0.016 0.016 0.016 0.016 0.016 ----- ----- ----- ----- ----- ----- ----- ----- ----- Total Income Distributions... 0.424 0.346 0.346 0.423 0.346 0.418 0.346 0.346 0.422 ----- ----- ----- ----- ----- ----- ----- ----- ----- TAX-FREE NATIONAL FUND Tax-Exempt Income... 0.451 0.367 0.367 0.462 0.366 0.444 0.367 0.366 0.459 Short-Term Capital Gain.............. 0.075 0.075 0.075 0.075 0.075 0.075 0.075 0.075 0.075 ----- ----- ----- ----- ----- ----- ----- ----- ----- Total Income Distributions... 0.526 0.442 0.442 0.538 0.441 0.520 0.442 0.442 0.535 ----- ----- ----- ----- ----- ----- ----- ----- ----- TAX-FREE NEW YORK FUND Tax-Exempt Income... 0.394 0.316 0.316 Short-Term Capital Gain.............. 0.004 0.004 0.004 Long-Term Capital Gain.............. 0.017 0.017 0.017 ----- ----- ----- Total Income Distributions... 0.415 0.337 0.337 ----- ----- ----- TOTAL RETURN BOND FUND Income.............. 0.417 0.336 0.345 0.075 0.467 Short-Term Capital Gain.............. 0.038 0.038 0.038 0.000 0.038 Long-Term Capital Gain.............. 0.021 0.021 0.021 0.000 0.021 ----- ----- ----- ----- ----- Total Income Distributions... 0.477 0.395 0.404 0.075 0.526 ----- ----- ----- ----- ----- U.S. GOVERNMENT SECURITIES FUND Income.............. 0.430 0.361 0.361 0.460 0.367 0.437 0.367 0.367 0.458 ----- ----- ----- ----- ----- ----- ----- ----- ----- VALUE FUND Income.............. 0.081 0.132 ----- ----- VALUE OPPORTUNITIES FUND Income.............. 0.022 0.057 Short-Term Capital Gain.............. 0.135 0.135 0.135 0.135 0.135 0.135 0.135 0.135 Long-Term Capital Gain.............. 0.362 0.362 0.362 0.362 0.362 0.362 0.362 0.362 ----- ----- ----- ----- ----- ----- ----- ----- Total Income Distributions... 0.497 0.497 0.497 0.497 0.519 0.497 0.497 0.554 ----- ----- ----- ----- ----- ----- ----- -----
374 HARTFORD MUTUAL FUNDS, INC. AND THE HARTFORD MUTUAL FUNDS II, INC. EXPENSE EXAMPLE -------------------------------------------------------------------------------- YOUR FUND'S EXPENSES As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments and contingent deferred sales charges (CDSC), (2) ongoing costs including management fees; distribution fees; and other fund expenses. This example is intended to help you understand your ongoing costs(in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the period of April 30, 2006 through October 31, 2006. ACTUAL EXPENSES The first line of the table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6, then multiply the result by the number in the first line under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES The second line of the table below provides information about hypothetical account values and hypothetical expenses based on the Fund's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads) and CDSC. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would be higher. Expenses are equal to the Fund's annualized expense ratios multiplied by average account value over the period, multiplied by 184/365 (to reflect the one-half year period).
ACTUAL RETURN ----------------------------------------------------- EXPENSES PAID BEGINNING ENDING DURING THE PERIOD ACCOUNT ACCOUNT APRIL 30, 2006 VALUE VALUE THROUGH APRIL 30, 2006 OCTOBER 31, 2006 OCTOBER 31, 2006 -------------- ---------------- ----------------- THE HARTFORD ADVISERS FUND Class A............ $1,000.00 $1,039.00 $ 5.83 Class B............ $1,000.00 $1,034.60 $ 9.89 Class C............ $1,000.00 $1,034.70 $ 9.42 Class Y............ $1,000.00 $1,041.10 $ 3.48 THE HARTFORD AGGRESSIVE GROWTH ALLOCATION FUND Class A............ $1,000.00 $1,005.30 $ 3.70 Class B............ $1,000.00 $1,002.30 $ 6.97 Class C............ $1,000.00 $1,002.30 $ 6.97 Class I............ $1,000.00 $1,050.00 $ 0.82 HYPOTHETICAL (5% RETURN BEFORE EXPENSES) ----------------------------------------------------- EXPENSES PAID BEGINNING ENDING DURING THE PERIOD DAYS ACCOUNT ACCOUNT APRIL 30, 2006 ANNUALIZED IN THE DAYS VALUE VALUE THROUGH EXPENSE CURRENT IN THE APRIL 30, 2006 OCTOBER 31, 2006 OCTOBER 31, 2006 RATIO 1/2 YEAR FULL YEAR -------------- ---------------- ----------------- ---------- -------- --------- THE HARTFORD ADVISERS FUND Class A............ $1,000.00 $1,019.48 $ 5.78 1.13% 184 365 Class B............ $1,000.00 $1,015.49 $ 9.80 1.93% 184 365 Class C............ $1,000.00 $1,015.94 $ 9.34 1.84% 184 365 Class Y............ $1,000.00 $1,021.79 $ 3.45 0.68% 184 365 THE HARTFORD AGGRESSIVE GROWTH ALLOCATION FUND Class A............ $1,000.00 $1,021.52 $ 3.73 0.73% 184 365 Class B............ $1,000.00 $1,018.24 $ 7.03 1.38% 184 365 Class C............ $1,000.00 $1,018.24 $ 7.03 1.38% 184 365 Class I............ $1,000.00 $1,007.55 $ 0.81 0.48% 61 365
375 HARTFORD MUTUAL FUNDS, INC. AND THE HARTFORD MUTUAL FUNDS II, INC. EXPENSE EXAMPLE -- (CONTINUED) --------------------------------------------------------------------------------
ACTUAL RETURN ----------------------------------------------------- EXPENSES PAID BEGINNING ENDING DURING THE PERIOD ACCOUNT ACCOUNT APRIL 30, 2006 VALUE VALUE THROUGH APRIL 30, 2006 OCTOBER 31, 2006 OCTOBER 31, 2006 -------------- ---------------- ----------------- THE HARTFORD BALANCED ALLOCATION FUND Class A............ $1,000.00 $1,017.30 $ 3.16 Class B............ $1,000.00 $1,013.70 $ 6.96 Class C............ $1,000.00 $1,013.80 $ 6.96 Class I............ $1,000.00 $1,033.50 $ 0.66 THE HARTFORD BALANCED INCOME FUND Class A............ $1,000.00 $1,047.80 $ 3.23 Class B............ $1,000.00 $1,045.40 $ 5.14 Class C............ $1,000.00 $1,045.60 $ 5.14 Class Y............ $1,000.00 $1,048.30 $ 2.31 HYPOTHETICAL (5% RETURN BEFORE EXPENSES) ----------------------------------------------------- EXPENSES PAID BEGINNING ENDING DURING THE PERIOD DAYS ACCOUNT ACCOUNT APRIL 30, 2006 ANNUALIZED IN THE DAYS VALUE VALUE THROUGH EXPENSE CURRENT IN THE APRIL 30, 2006 OCTOBER 31, 2006 OCTOBER 31, 2006 RATIO 1/2 YEAR FULL YEAR -------------- ---------------- ----------------- ---------- -------- --------- THE HARTFORD BALANCED ALLOCATION FUND Class A............ $1,000.00 $1,022.07 $ 3.17 0.62% 184 365 Class B............ $1,000.00 $1,018.29 $ 6.98 1.37% 184 365 Class C............ $1,000.00 $1,018.29 $ 6.98 1.37% 184 365 Class I............ $1,000.00 $1,007.71 $ 0.65 0.39% 61 365 THE HARTFORD BALANCED INCOME FUND Class A............ $1,000.00 $1,009.45 $ 3.17 1.25% 92 365 Class B............ $1,000.00 $1,007.58 $ 5.04 1.99% 92 365 Class C............ $1,000.00 $1,007.58 $ 5.04 1.99% 92 365 Class Y............ $1,000.00 $1,010.35 $ 2.27 0.89% 92 365
376 --------------------------------------------------------------------------------
ACTUAL RETURN ----------------------------------------------------- EXPENSES PAID BEGINNING ENDING DURING THE PERIOD ACCOUNT ACCOUNT APRIL 30, 2006 VALUE VALUE THROUGH APRIL 30, 2006 OCTOBER 31, 2006 OCTOBER 31, 2006 -------------- ---------------- ----------------- THE HARTFORD CAPITAL APPRECIATION FUND Class A............ $1,000.00 $1,023.70 $ 6.03 Class B............ $1,000.00 $1,019.40 $10.07 Class C............ $1,000.00 $1,019.60 $ 9.70 Class I............ $1,000.00 $1,057.60 $ 1.52 Class Y............ $1,000.00 $1,025.80 $ 3.84 THE HARTFORD CAPITAL APPRECIATION II FUND Class A............ $1,000.00 $1,009.20 $ 8.13 Class B............ $1,000.00 $1,005.40 $11.98 Class C............ $1,000.00 $1,005.40 $11.70 Class I............ $1,000.00 $1,050.40 $ 1.95 Class Y............ $1,000.00 $1,009.90 $ 4.07 THE HARTFORD CONSERVATIVE ALLOCATION FUND Class A............ $1,000.00 $1,027.00 $ 3.31 Class B............ $1,000.00 $1,023.30 $ 6.74 Class C............ $1,000.00 $1,023.40 $ 6.73 Class I............ $1,000.00 $1,026.90 $ 0.69 THE HARTFORD DISCIPLINED EQUITY FUND Class A............ $1,000.00 $1,037.80 $ 7.21 Class B............ $1,000.00 $1,033.80 $10.70 Class C............ $1,000.00 $1,033.80 $10.77 Class Y............ $1,000.00 $1,039.80 $ 4.59 THE HARTFORD DIVIDEND AND GROWTH FUND Class A............ $1,000.00 $1,068.10 $ 5.93 Class B............ $1,000.00 $1,063.50 $10.35 Class C............ $1,000.00 $1,063.80 $ 9.74 Class I............ $1,000.00 $1,052.00 $ 1.23 Class Y............ $1,000.00 $1,070.00 $ 5.14 THE HARTFORD EQUITY INCOME FUND Class A............ $1,000.00 $1,068.10 $ 5.16 Class B............ $1,000.00 $1,063.90 $ 9.50 Class C............ $1,000.00 $1,065.20 $ 8.85 Class I............ $1,000.00 $1,040.50 $ 1.36 Class Y............ $1,000.00 $1,070.70 $ 3.01 THE HARTFORD FLOATING RATE FUND Class A............ $1,000.00 $1,028.90 $ 2.74 Class B............ $1,000.00 $1,025.50 $ 7.08 Class C............ $1,000.00 $1,025.90 $ 6.74 Class I............ $1,000.00 $1,012.10 $ 0.33 Class Y............ $1,000.00 $1,031.50 $ 2.22 HYPOTHETICAL (5% RETURN BEFORE EXPENSES) ----------------------------------------------------- EXPENSES PAID BEGINNING ENDING DURING THE PERIOD DAYS ACCOUNT ACCOUNT APRIL 30, 2006 ANNUALIZED IN THE DAYS VALUE VALUE THROUGH EXPENSE CURRENT IN THE APRIL 30, 2006 OCTOBER 31, 2006 OCTOBER 31, 2006 RATIO 1/2 YEAR FULL YEAR -------------- ---------------- ----------------- ---------- -------- --------- THE HARTFORD CAPITAL APPRECIATION FUND Class A............ $1,000.00 $1,019.25 $ 6.02 1.18% 184 365 Class B............ $1,000.00 $1,015.24 $10.05 1.98% 184 365 Class C............ $1,000.00 $1,015.60 $ 9.68 1.90% 184 365 Class I............ $1,000.00 $1,006.88 $ 1.48 0.88% 61 365 Class Y............ $1,000.00 $1,021.42 $ 3.83 0.75% 184 365 THE HARTFORD CAPITAL APPRECIATION II FUND Class A............ $1,000.00 $1,017.12 $ 8.16 1.60% 184 365 Class B............ $1,000.00 $1,013.26 $12.02 2.37% 184 365 Class C............ $1,000.00 $1,013.54 $11.74 2.31% 184 365 Class I............ $1,000.00 $1,006.45 $ 1.91 1.14% 61 365 Class Y............ $1,000.00 $1,021.16 $ 4.09 0.80% 184 365 THE HARTFORD CONSERVATIVE ALLOCATION FUND Class A............ $1,000.00 $1,021.94 $ 3.30 0.65% 184 365 Class B............ $1,000.00 $1,018.54 $ 6.72 1.32% 184 365 Class C............ $1,000.00 $1,018.55 $ 6.72 1.32% 184 365 Class I............ $1,000.00 $1,007.67 $ 0.69 0.41% 61 365 THE HARTFORD DISCIPLINED EQUITY FUND Class A............ $1,000.00 $1,018.13 $ 7.14 1.40% 184 365 Class B............ $1,000.00 $1,014.68 $10.60 2.09% 184 365 Class C............ $1,000.00 $1,014.62 $10.67 2.10% 184 365 Class Y............ $1,000.00 $1,020.71 $ 4.54 0.89% 184 365 THE HARTFORD DIVIDEND AND GROWTH FUND Class A............ $1,000.00 $1,019.47 $ 5.79 1.14% 184 365 Class B............ $1,000.00 $1,015.17 $10.11 1.99% 184 365 Class C............ $1,000.00 $1,015.76 $ 9.52 1.87% 184 365 Class I............ $1,000.00 $1,007.15 $ 1.21 0.72% 61 365 Class Y............ $1,000.00 $1,020.24 $ 5.01 0.98% 184 365 THE HARTFORD EQUITY INCOME FUND Class A............ $1,000.00 $1,020.21 $ 5.04 0.99% 184 365 Class B............ $1,000.00 $1,015.99 $ 9.28 1.83% 184 365 Class C............ $1,000.00 $1,016.63 $ 8.64 1.70% 184 365 Class I............ $1,000.00 $1,007.02 $ 1.34 0.80% 61 365 Class Y............ $1,000.00 $1,022.30 $ 2.94 0.58% 184 365 THE HARTFORD FLOATING RATE FUND Class A............ $1,000.00 $1,022.51 $ 2.73 0.54% 184 365 Class B............ $1,000.00 $1,018.21 $ 7.06 1.39% 184 365 Class C............ $1,000.00 $1,018.55 $ 6.71 1.32% 184 365 Class I............ $1,000.00 $1,008.03 $ 0.33 0.20% 61 365 Class Y............ $1,000.00 $1,023.02 $ 2.21 0.43% 184 365
377 HARTFORD MUTUAL FUNDS, INC. AND THE HARTFORD MUTUAL FUNDS II, INC. EXPENSE EXAMPLE -- (CONTINUED) --------------------------------------------------------------------------------
ACTUAL RETURN ----------------------------------------------------- EXPENSES PAID BEGINNING ENDING DURING THE PERIOD ACCOUNT ACCOUNT APRIL 30, 2006 VALUE VALUE THROUGH APRIL 30, 2006 OCTOBER 31, 2006 OCTOBER 31, 2006 -------------- ---------------- ----------------- THE HARTFORD FOCUS FUND Class A............ $1,000.00 $1,006.40 $ 7.58 Class B............ $1,000.00 $1,002.80 $11.35 Class C............ $1,000.00 $1,002.80 $11.35 Class Y............ $1,000.00 $1,009.00 $ 5.47 THE HARTFORD GLOBAL COMMUNICATIONS FUND Class A............ $1,000.00 $1,006.30 $ 5.80 Class B............ $1,000.00 $1,003.90 $ 9.25 Class C............ $1,000.00 $1,002.60 $ 9.57 Class Y............ $1,000.00 $1,009.80 $ 3.79 THE HARTFORD GLOBAL FINANCIAL SERVICES FUND Class A............ $1,000.00 $1,026.40 $ 5.87 Class B............ $1,000.00 $1,023.10 $ 9.03 Class C............ $1,000.00 $1,022.30 $ 9.76 Class Y............ $1,000.00 $1,028.30 $ 3.83 HYPOTHETICAL (5% RETURN BEFORE EXPENSES) ----------------------------------------------------- EXPENSES PAID BEGINNING ENDING DURING THE PERIOD DAYS ACCOUNT ACCOUNT APRIL 30, 2006 ANNUALIZED IN THE DAYS VALUE VALUE THROUGH EXPENSE CURRENT IN THE APRIL 30, 2006 OCTOBER 31, 2006 OCTOBER 31, 2006 RATIO 1/2 YEAR FULL YEAR -------------- ---------------- ----------------- ---------- -------- --------- THE HARTFORD FOCUS FUND Class A............ $1,000.00 $1,017.65 $ 7.62 1.50% 184 365 Class B............ $1,000.00 $1,013.87 $11.41 2.25% 184 365 Class C............ $1,000.00 $1,013.87 $11.41 2.25% 184 365 Class Y............ $1,000.00 $1,019.76 $ 5.50 1.08% 184 365 THE HARTFORD GLOBAL COMMUNICATIONS FUND Class A............ $1,000.00 $1,019.42 $ 5.84 1.15% 184 365 Class B............ $1,000.00 $1,015.98 $ 9.30 1.83% 184 365 Class C............ $1,000.00 $1,015.65 $ 9.63 1.90% 184 365 Class Y............ $1,000.00 $1,021.44 $ 3.81 0.75% 184 365 THE HARTFORD GLOBAL FINANCIAL SERVICES FUND Class A............ $1,000.00 $1,019.41 $ 5.85 1.15% 184 365 Class B............ $1,000.00 $1,016.28 $ 8.99 1.77% 184 365 Class C............ $1,000.00 $1,015.56 $ 9.72 1.91% 184 365 Class Y............ $1,000.00 $1,021.43 $ 3.82 0.75% 184 365
378 --------------------------------------------------------------------------------
ACTUAL RETURN ----------------------------------------------------- EXPENSES PAID BEGINNING ENDING DURING THE PERIOD ACCOUNT ACCOUNT APRIL 30, 2006 VALUE VALUE THROUGH APRIL 30, 2006 OCTOBER 31, 2006 OCTOBER 31, 2006 -------------- ---------------- ----------------- THE HARTFORD GLOBAL HEALTH FUND Class A............ $1,000.00 $1,057.50 $ 8.40 Class B............ $1,000.00 $1,053.50 $12.32 Class C............ $1,000.00 $1,054.20 $11.93 Class I............ $1,000.00 $1,030.00 $ 1.95 Class Y............ $1,000.00 $1,060.50 $ 5.59 THE HARTFORD GLOBAL LEADERS FUND Class A............ $1,000.00 $ 982.20 $ 7.55 Class B............ $1,000.00 $ 979.10 $11.04 Class C............ $1,000.00 $ 978.60 $11.01 Class Y............ $1,000.00 $ 984.80 $ 4.68 THE HARTFORD GLOBAL TECHNOLOGY FUND Class A............ $1,000.00 $ 979.30 $ 6.95 Class B............ $1,000.00 $ 976.50 $10.03 Class C............ $1,000.00 $ 974.70 $11.38 Class Y............ $1,000.00 $ 979.80 $ 5.99 THE HARTFORD GROWTH ALLOCATION FUND Class A............ $1,000.00 $1,010.40 $ 3.41 Class B............ $1,000.00 $1,007.20 $ 6.70 Class C............ $1,000.00 $1,008.00 $ 6.70 Class I............ $1,000.00 $1,041.90 $ 0.72 THE HARTFORD GROWTH FUND Class A............ $1,000.00 $ 967.00 $ 6.66 Class B............ $1,000.00 $ 962.70 $10.55 Class C............ $1,000.00 $ 963.30 $10.16 Class H............ $1,000.00 $ 964.80 $ 9.09 Class I............ $1,000.00 $1,046.50 $ 1.64 Class L............ $1,000.00 $ 968.40 $ 5.39 Class M............ $1,000.00 $ 964.80 $ 9.09 Class N............ $1,000.00 $ 964.80 $ 9.09 Class Y............ $1,000.00 $ 969.70 $ 4.25 THE HARTFORD GROWTH OPPORTUNITIES FUND Class A............ $1,000.00 $ 970.90 $ 6.04 Class B............ $1,000.00 $ 966.30 $10.34 Class C............ $1,000.00 $ 966.70 $10.25 Class H............ $1,000.00 $ 967.50 $ 9.10 Class I............ $1,000.00 $1,049.70 $ 1.91 Class L............ $1,000.00 $ 971.30 $ 5.39 Class M............ $1,000.00 $ 967.80 $ 9.10 Class N............ $1,000.00 $ 967.40 $ 9.10 Class Y............ $1,000.00 $ 972.50 $ 4.13 Class Z............ $1,000.00 $ 972.60 $ 4.15 HYPOTHETICAL (5% RETURN BEFORE EXPENSES) ----------------------------------------------------- EXPENSES PAID BEGINNING ENDING DURING THE PERIOD DAYS ACCOUNT ACCOUNT APRIL 30, 2006 ANNUALIZED IN THE DAYS VALUE VALUE THROUGH EXPENSE CURRENT IN THE APRIL 30, 2006 OCTOBER 31, 2006 OCTOBER 31, 2006 RATIO 1/2 YEAR FULL YEAR -------------- ---------------- ----------------- ---------- -------- --------- THE HARTFORD GLOBAL HEALTH FUND Class A............ $1,000.00 $1,017.04 $ 8.24 1.62% 184 365 Class B............ $1,000.00 $1,013.21 $12.07 2.38% 184 365 Class C............ $1,000.00 $1,013.59 $11.69 2.30% 184 365 Class I............ $1,000.00 $1,019.76 $ 1.93 1.15% 61 365 Class Y............ $1,000.00 $1,019.78 $ 5.48 1.08% 184 365 THE HARTFORD GLOBAL LEADERS FUND Class A............ $1,000.00 $1,017.59 $ 7.69 1.51% 184 365 Class B............ $1,000.00 $1,014.05 $11.24 2.21% 184 365 Class C............ $1,000.00 $1,014.07 $11.21 2.21% 184 365 Class Y............ $1,000.00 $1,020.49 $ 4.77 0.94% 184 365 THE HARTFORD GLOBAL TECHNOLOGY FUND Class A............ $1,000.00 $1,018.18 $ 7.09 1.39% 184 365 Class B............ $1,000.00 $1,015.06 $10.22 2.01% 184 365 Class C............ $1,000.00 $1,013.68 $11.61 2.29% 184 365 Class Y............ $1,000.00 $1,019.16 $ 6.11 1.20% 184 365 THE HARTFORD GROWTH ALLOCATION FUND Class A............ $1,000.00 $1,021.81 $ 3.43 0.67% 184 365 Class B............ $1,000.00 $1,018.53 $ 6.74 1.32% 184 365 Class C............ $1,000.00 $1,018.53 $ 6.74 1.32% 184 365 Class I............ $1,000.00 $1,007.65 $ 0.70 0.42% 61 365 THE HARTFORD GROWTH FUND Class A............ $1,000.00 $1,018.44 $ 6.83 1.34% 184 365 Class B............ $1,000.00 $1,014.45 $10.83 2.13% 184 365 Class C............ $1,000.00 $1,014.86 $10.42 2.05% 184 365 Class H............ $1,000.00 $1,015.96 $ 9.32 1.83% 184 365 Class I............ $1,000.00 $1,006.76 $ 1.60 0.96% 61 365 Class L............ $1,000.00 $1,019.73 $ 5.53 1.09% 184 365 Class M............ $1,000.00 $1,015.95 $ 9.33 1.84% 184 365 Class N............ $1,000.00 $1,015.95 $ 9.33 1.84% 184 365 Class Y............ $1,000.00 $1,020.89 $ 4.36 0.86% 184 365 THE HARTFORD GROWTH OPPORTUNITIES FUND Class A............ $1,000.00 $1,019.08 $ 6.19 1.22% 184 365 Class B............ $1,000.00 $1,014.69 $10.59 2.09% 184 365 Class C............ $1,000.00 $1,014.78 $10.51 2.07% 184 365 Class H............ $1,000.00 $1,015.96 $ 9.32 1.83% 184 365 Class I............ $1,000.00 $1,006.49 $ 1.87 1.12% 61 365 Class L............ $1,000.00 $1,019.74 $ 5.52 1.09% 184 365 Class M............ $1,000.00 $1,015.96 $ 9.32 1.83% 184 365 Class N............ $1,000.00 $1,015.96 $ 9.32 1.83% 184 365 Class Y............ $1,000.00 $1,021.01 $ 4.24 0.83% 184 365 Class Z............ $1,000.00 $1,021.00 $ 4.25 0.84% 184 365
379 HARTFORD MUTUAL FUNDS, INC. AND THE HARTFORD MUTUAL FUNDS II, INC. EXPENSE EXAMPLE -- (CONTINUED) --------------------------------------------------------------------------------
ACTUAL RETURN ----------------------------------------------------- EXPENSES PAID BEGINNING ENDING DURING THE PERIOD ACCOUNT ACCOUNT APRIL 30, 2006 VALUE VALUE THROUGH APRIL 30, 2006 OCTOBER 31, 2006 OCTOBER 31, 2006 -------------- ---------------- ----------------- THE HARTFORD HIGH YIELD FUND Class A............ $1,000.00 $1,045.40 $ 6.19 Class B............ $1,000.00 $1,041.50 $10.03 Class C............ $1,000.00 $1,040.60 $ 9.78 Class Y............ $1,000.00 $1,048.00 $ 3.81 THE HARTFORD INCOME ALLOCATION FUND Class A............ $1,000.00 $1,033.80 $ 3.19 Class B............ $1,000.00 $1,029.20 $ 6.76 Class C............ $1,000.00 $1,029.10 $ 6.76 Class I............ $1,000.00 $1,011.70 $ 0.62 THE HARTFORD INCOME FUND Class A............ $1,000.00 $1,043.60 $ 4.89 Class B............ $1,000.00 $1,039.70 $ 8.74 Class C............ $1,000.00 $1,039.70 $ 8.74 Class Y............ $1,000.00 $1,045.00 $ 3.61 HYPOTHETICAL (5% RETURN BEFORE EXPENSES) ----------------------------------------------------- EXPENSES PAID BEGINNING ENDING DURING THE PERIOD DAYS ACCOUNT ACCOUNT APRIL 30, 2006 ANNUALIZED IN THE DAYS VALUE VALUE THROUGH EXPENSE CURRENT IN THE APRIL 30, 2006 OCTOBER 31, 2006 OCTOBER 31, 2006 RATIO 1/2 YEAR FULL YEAR -------------- ---------------- ----------------- ---------- -------- --------- THE HARTFORD HIGH YIELD FUND Class A............ $1,000.00 $1,019.15 $ 6.11 1.20% 184 365 Class B............ $1,000.00 $1,015.38 $ 9.90 1.95% 184 365 Class C............ $1,000.00 $1,015.62 $ 9.66 1.90% 184 365 Class Y............ $1,000.00 $1,021.48 $ 3.76 0.74% 184 365 THE HARTFORD INCOME ALLOCATION FUND Class A............ $1,000.00 $1,022.07 $ 3.17 0.62% 184 365 Class B............ $1,000.00 $1,018.54 $ 6.73 1.32% 184 365 Class C............ $1,000.00 $1,018.55 $ 6.72 1.32% 184 365 Class I............ $1,000.00 $1,007.74 $ 0.62 0.37% 61 365 THE HARTFORD INCOME FUND Class A............ $1,000.00 $1,020.42 $ 4.84 0.95% 184 365 Class B............ $1,000.00 $1,016.63 $ 8.64 1.70% 184 365 Class C............ $1,000.00 $1,016.64 $ 8.64 1.70% 184 365 Class Y............ $1,000.00 $1,021.68 $ 3.57 0.70% 184 365
380 --------------------------------------------------------------------------------
ACTUAL RETURN ----------------------------------------------------- EXPENSES PAID BEGINNING ENDING DURING THE PERIOD ACCOUNT ACCOUNT APRIL 30, 2006 VALUE VALUE THROUGH APRIL 30, 2006 OCTOBER 31, 2006 OCTOBER 31, 2006 -------------- ---------------- ----------------- THE HARTFORD INFLATION PLUS FUND Class A............ $1,000.00 $1,036.30 $ 4.87 Class B............ $1,000.00 $1,032.30 $ 8.70 Class C............ $1,000.00 $1,031.30 $ 8.70 Class I............ $1,000.00 $1,000.40 $ 1.17 Class Y............ $1,000.00 $1,036.70 $ 3.49 THE HARTFORD INTERNATIONAL CAPITAL APPRECIATION FUND Class A............ $1,000.00 $ 996.70 $ 8.04 Class B............ $1,000.00 $ 993.10 $11.62 Class C............ $1,000.00 $ 993.10 $11.79 Class I............ $1,000.00 $1,041.80 $ 2.32 Class Y............ $1,000.00 $ 998.70 $ 5.91 THE HARTFORD INTERNATIONAL OPPORTUNITIES FUND Class A............ $1,000.00 $1,006.90 $ 8.14 Class B............ $1,000.00 $1,004.60 $11.02 Class C............ $1,000.00 $1,003.30 $11.69 Class Y............ $1,000.00 $1,010.30 $ 5.02 THE HARTFORD INTERNATIONAL SMALL COMPANY FUND Class A............ $1,000.00 $1,013.10 $ 8.26 Class B............ $1,000.00 $1,009.60 $11.38 Class C............ $1,000.00 $1,009.10 $11.89 Class Y............ $1,000.00 $1,015.50 $ 6.10 THE HARTFORD MIDCAP FUND Class A............ $1,000.00 $ 974.60 $ 6.42 Class B............ $1,000.00 $ 970.90 $10.17 Class C............ $1,000.00 $ 971.40 $ 9.80 Class Y............ $1,000.00 $ 976.60 $ 4.12 THE HARTFORD MIDCAP GROWTH FUND Class A............ $1,000.00 $1,063.00 $ 3.10 Class B............ $1,000.00 $1,061.00 $ 5.32 Class C............ $1,000.00 $1,061.00 $ 5.35 Class Y............ $1,000.00 $1,064.00 $ 2.05 THE HARTFORD MIDCAP VALUE FUND Class A............ $1,000.00 $1,018.90 $ 7.12 Class B............ $1,000.00 $1,015.30 $10.99 Class C............ $1,000.00 $1,014.60 $10.92 Class Y............ $1,000.00 $1,021.10 $ 4.81 HYPOTHETICAL (5% RETURN BEFORE EXPENSES) ----------------------------------------------------- EXPENSES PAID BEGINNING ENDING DURING THE PERIOD DAYS ACCOUNT ACCOUNT APRIL 30, 2006 ANNUALIZED IN THE DAYS VALUE VALUE THROUGH EXPENSE CURRENT IN THE APRIL 30, 2006 OCTOBER 31, 2006 OCTOBER 31, 2006 RATIO 1/2 YEAR FULL YEAR -------------- ---------------- ----------------- ---------- -------- --------- THE HARTFORD INFLATION PLUS FUND Class A............ $1,000.00 $1,020.42 $ 4.84 0.95% 184 365 Class B............ $1,000.00 $1,016.64 $ 8.64 1.70% 184 365 Class C............ $1,000.00 $1,016.64 $ 8.63 1.70% 184 365 Class I............ $1,000.00 $1,007.19 $ 1.17 0.70% 61 365 Class Y............ $1,000.00 $1,021.78 $ 3.46 0.68% 184 365 THE HARTFORD INTERNATIONAL CAPITAL APPRECIATION FUND Class A............ $1,000.00 $1,017.15 $ 8.12 1.60% 184 365 Class B............ $1,000.00 $1,013.55 $11.74 2.31% 184 365 Class C............ $1,000.00 $1,013.37 $11.91 2.35% 184 365 Class I............ $1,000.00 $1,006.08 $ 2.28 1.36% 61 365 Class Y............ $1,000.00 $1,019.29 $ 5.97 1.17% 184 365 THE HARTFORD INTERNATIONAL OPPORTUNITIES FUND Class A............ $1,000.00 $1,017.10 $ 8.18 1.61% 184 365 Class B............ $1,000.00 $1,014.21 $11.07 2.18% 184 365 Class C............ $1,000.00 $1,013.54 $11.75 2.31% 184 365 Class Y............ $1,000.00 $1,020.21 $ 5.04 0.99% 184 365 THE HARTFORD INTERNATIONAL SMALL COMPANY FUND Class A............ $1,000.00 $1,017.00 $ 8.27 1.63% 184 365 Class B............ $1,000.00 $1,013.88 $11.41 2.25% 184 365 Class C............ $1,000.00 $1,013.37 $11.91 2.35% 184 365 Class Y............ $1,000.00 $1,019.16 $ 6.11 1.20% 184 365 THE HARTFORD MIDCAP FUND Class A............ $1,000.00 $1,018.71 $ 6.56 1.29% 184 365 Class B............ $1,000.00 $1,014.88 $10.40 2.05% 184 365 Class C............ $1,000.00 $1,015.27 $10.01 1.97% 184 365 Class Y............ $1,000.00 $1,021.04 $ 4.21 0.83% 184 365 THE HARTFORD MIDCAP GROWTH FUND Class A............ $1,000.00 $1,009.60 $ 3.02 1.19% 92 365 Class B............ $1,000.00 $1,007.44 $ 5.18 2.05% 92 365 Class C............ $1,000.00 $1,007.41 $ 5.21 2.06% 92 365 Class Y............ $1,000.00 $1,010.62 $ 1.99 0.79% 92 365 THE HARTFORD MIDCAP VALUE FUND Class A............ $1,000.00 $1,018.15 $ 7.12 1.40% 184 365 Class B............ $1,000.00 $1,014.29 $10.99 2.16% 184 365 Class C............ $1,000.00 $1,014.37 $10.91 2.15% 184 365 Class Y............ $1,000.00 $1,020.44 $ 4.81 0.94% 184 365
381 HARTFORD MUTUAL FUNDS, INC. AND THE HARTFORD MUTUAL FUNDS II, INC. EXPENSE EXAMPLE -- (CONTINUED) --------------------------------------------------------------------------------
ACTUAL RETURN ----------------------------------------------------- EXPENSES PAID BEGINNING ENDING DURING THE PERIOD ACCOUNT ACCOUNT APRIL 30, 2006 VALUE VALUE THROUGH APRIL 30, 2006 OCTOBER 31, 2006 OCTOBER 31, 2006 -------------- ---------------- ----------------- THE HARTFORD MONEY MARKET FUND Class A............ $1,000.00 $1,022.00 $ 4.81 Class B............ $1,000.00 $1,018.20 $ 8.63 Class C............ $1,000.00 $1,018.20 $ 8.64 Class Y............ $1,000.00 $1,023.30 $ 2.79 THE HARTFORD RETIREMENT INCOME FUND Class A............ $1,000.00 $1,026.50 $ 2.79 Class B............ $1,000.00 $1,021.50 $ 6.60 Class C............ $1,000.00 $1,023.60 $ 6.61 Class Y............ $1,000.00 $1,028.10 $ 1.25 THE HARTFORD SELECT MIDCAP GROWTH FUND Class A............ $1,000.00 $ 969.10 $ 7.43 Class B............ $1,000.00 $ 965.30 $10.40 Class C............ $1,000.00 $ 964.50 $11.21 Class Y............ $1,000.00 $ 971.80 $ 5.91 THE HARTFORD SELECT MIDCAP VALUE FUND Class A............ $1,000.00 $1,039.40 $ 8.00 Class B............ $1,000.00 $1,035.40 $11.86 Class C............ $1,000.00 $1,034.50 $11.79 Class Y............ $1,000.00 $1,038.50 $ 5.89 HYPOTHETICAL (5% RETURN BEFORE EXPENSES) ----------------------------------------------------- EXPENSES PAID BEGINNING ENDING DURING THE PERIOD DAYS ACCOUNT ACCOUNT APRIL 30, 2006 ANNUALIZED IN THE DAYS VALUE VALUE THROUGH EXPENSE CURRENT IN THE APRIL 30, 2006 OCTOBER 31, 2006 OCTOBER 31, 2006 RATIO 1/2 YEAR FULL YEAR -------------- ---------------- ----------------- ---------- -------- --------- THE HARTFORD MONEY MARKET FUND Class A............ $1,000.00 $1,020.44 $ 4.81 0.94% 184 365 Class B............ $1,000.00 $1,016.65 $ 8.63 1.70% 184 365 Class C............ $1,000.00 $1,016.64 $ 8.64 1.70% 184 365 Class Y............ $1,000.00 $1,022.45 $ 2.79 0.55% 184 365 THE HARTFORD RETIREMENT INCOME FUND Class A............ $1,000.00 $1,022.45 $ 2.79 0.55% 184 365 Class B............ $1,000.00 $1,018.67 $ 6.59 1.30% 184 365 Class C............ $1,000.00 $1,018.67 $ 6.60 1.30% 184 365 Class Y............ $1,000.00 $1,023.97 $ 1.25 0.25% 184 365 THE HARTFORD SELECT MIDCAP GROWTH FUND Class A............ $1,000.00 $1,017.66 $ 7.61 1.50% 184 365 Class B............ $1,000.00 $1,014.62 $10.66 2.10% 184 365 Class C............ $1,000.00 $1,013.79 $11.49 2.26% 184 365 Class Y............ $1,000.00 $1,019.22 $ 6.05 1.19% 184 365 THE HARTFORD SELECT MIDCAP VALUE FUND Class A............ $1,000.00 $1,017.36 $ 7.92 1.56% 184 365 Class B............ $1,000.00 $1,013.55 $11.73 2.31% 184 365 Class C............ $1,000.00 $1,013.62 $11.67 2.30% 184 365 Class Y............ $1,000.00 $1,019.43 $ 5.84 1.15% 184 365
382 --------------------------------------------------------------------------------
ACTUAL RETURN ----------------------------------------------------- EXPENSES PAID BEGINNING ENDING DURING THE PERIOD ACCOUNT ACCOUNT APRIL 30, 2006 VALUE VALUE THROUGH APRIL 30, 2006 OCTOBER 31, 2006 OCTOBER 31, 2006 -------------- ---------------- ----------------- THE HARTFORD SELECT SMALLCAP GROWTH FUND Class A............ $1,000.00 $ 939.30 $ 8.29 Class B............ $1,000.00 $ 936.40 $11.80 Class C............ $1,000.00 $ 935.50 $11.79 Class Y............ $1,000.00 $ 942.20 $ 5.87 THE HARTFORD SELECT SMALLCAP VALUE FUND Class A............ $1,000.00 $1,096.00 $ 4.21 Class B............ $1,000.00 $1,093.00 $ 6.18 Class C............ $1,000.00 $1,093.00 $ 6.17 Class Y............ $1,000.00 $1,097.00 $ 3.17 THE HARTFORD SHORT DURATION FUND Class A............ $1,000.00 $1,024.80 $ 4.59 Class B............ $1,000.00 $1,021.90 $ 8.41 Class C............ $1,000.00 $1,021.90 $ 8.40 Class Y............ $1,000.00 $1,027.20 $ 3.33 THE HARTFORD SMALL COMPANY FUND Class A............ $1,000.00 $ 933.80 $ 6.85 Class B............ $1,000.00 $ 929.70 $10.76 Class C............ $1,000.00 $ 930.70 $10.46 Class I............ $1,000.00 $1,043.00 $ 1.96 Class Y............ $1,000.00 $ 936.20 $ 4.58 THE HARTFORD SMALLCAP GROWTH FUND Class A............ $1,000.00 $ 970.30 $ 6.89 Class B............ $1,000.00 $ 967.00 $10.01 Class C............ $1,000.00 $ 966.30 $10.67 Class H............ $1,000.00 $ 967.50 $ 9.45 Class I............ $1,000.00 $1,084.10 $ 2.02 Class L............ $1,000.00 $ 971.00 $ 5.75 Class M............ $1,000.00 $ 967.50 $ 9.46 Class N............ $1,000.00 $ 967.50 $ 9.46 Class Y............ $1,000.00 $ 972.00 $ 4.61 THE HARTFORD STOCK FUND Class A............ $1,000.00 $1,034.40 $ 6.70 Class B............ $1,000.00 $1,030.00 $11.06 Class C............ $1,000.00 $1,030.30 $10.48 Class Y............ $1,000.00 $1,037.30 $ 4.07 THE HARTFORD TARGET RETIREMENT 2010 FUND Class A............ $1,000.00 $1,019.20 $ 2.73 Class B............ $1,000.00 $1,015.80 $ 6.55 Class C............ $1,000.00 $1,015.00 $ 6.61 Class Y............ $1,000.00 $1,019.80 $ 1.20 HYPOTHETICAL (5% RETURN BEFORE EXPENSES) ----------------------------------------------------- EXPENSES PAID BEGINNING ENDING DURING THE PERIOD DAYS ACCOUNT ACCOUNT APRIL 30, 2006 ANNUALIZED IN THE DAYS VALUE VALUE THROUGH EXPENSE CURRENT IN THE APRIL 30, 2006 OCTOBER 31, 2006 OCTOBER 31, 2006 RATIO 1/2 YEAR FULL YEAR -------------- ---------------- ----------------- ---------- -------- --------- THE HARTFORD SELECT SMALLCAP GROWTH FUND Class A............ $1,000.00 $1,016.66 $ 8.62 1.70% 184 365 Class B............ $1,000.00 $1,013.01 $12.27 2.42% 184 365 Class C............ $1,000.00 $1,013.02 $12.27 2.42% 184 365 Class Y............ $1,000.00 $1,019.16 $ 6.10 1.20% 184 365 THE HARTFORD SELECT SMALLCAP VALUE FUND Class A............ $1,000.00 $1,008.59 $ 4.03 1.59% 92 365 Class B............ $1,000.00 $1,006.70 $ 5.93 2.34% 92 365 Class C............ $1,000.00 $1,006.70 $ 5.92 2.34% 92 365 Class Y............ $1,000.00 $1,009.58 $ 3.04 1.20% 92 365 THE HARTFORD SHORT DURATION FUND Class A............ $1,000.00 $1,020.67 $ 4.59 0.90% 184 365 Class B............ $1,000.00 $1,016.89 $ 8.38 1.65% 184 365 Class C............ $1,000.00 $1,016.89 $ 8.38 1.65% 184 365 Class Y............ $1,000.00 $1,021.92 $ 3.32 0.65% 184 365 THE HARTFORD SMALL COMPANY FUND Class A............ $1,000.00 $1,018.12 $ 7.15 1.41% 184 365 Class B............ $1,000.00 $1,014.05 $11.23 2.21% 184 365 Class C............ $1,000.00 $1,014.37 $10.92 2.15% 184 365 Class I............ $1,000.00 $1,006.43 $ 1.93 1.15% 61 365 Class Y............ $1,000.00 $1,020.47 $ 4.78 0.94% 184 365 THE HARTFORD SMALLCAP GROWTH FUND Class A............ $1,000.00 $1,018.21 $ 7.06 1.39% 184 365 Class B............ $1,000.00 $1,015.03 $10.25 2.02% 184 365 Class C............ $1,000.00 $1,014.35 $10.93 2.15% 184 365 Class H............ $1,000.00 $1,015.60 $ 9.68 1.91% 184 365 Class I............ $1,000.00 $1,006.42 $ 1.94 1.16% 61 365 Class L............ $1,000.00 $1,019.37 $ 5.89 1.16% 184 365 Class M............ $1,000.00 $1,015.59 $ 9.69 1.91% 184 365 Class N............ $1,000.00 $1,015.59 $ 9.69 1.91% 184 365 Class Y............ $1,000.00 $1,020.53 $ 4.72 0.93% 184 365 THE HARTFORD STOCK FUND Class A............ $1,000.00 $1,018.62 $ 6.65 1.31% 184 365 Class B............ $1,000.00 $1,014.31 $10.97 2.16% 184 365 Class C............ $1,000.00 $1,014.88 $10.40 2.05% 184 365 Class Y............ $1,000.00 $1,021.21 $ 4.04 0.79% 184 365 THE HARTFORD TARGET RETIREMENT 2010 FUND Class A............ $1,000.00 $1,022.50 $ 2.74 0.54% 184 365 Class B............ $1,000.00 $1,018.71 $ 6.56 1.29% 184 365 Class C............ $1,000.00 $1,018.64 $ 6.62 1.30% 184 365 Class Y............ $1,000.00 $1,024.02 $ 1.20 0.24% 184 365
383 HARTFORD MUTUAL FUNDS, INC. AND THE HARTFORD MUTUAL FUNDS II, INC. EXPENSE EXAMPLE -- (CONTINUED) --------------------------------------------------------------------------------
ACTUAL RETURN ----------------------------------------------------- EXPENSES PAID BEGINNING ENDING DURING THE PERIOD ACCOUNT ACCOUNT APRIL 30, 2006 VALUE VALUE THROUGH APRIL 30, 2006 OCTOBER 31, 2006 OCTOBER 31, 2006 -------------- ---------------- ----------------- THE HARTFORD TARGET RETIREMENT 2020 FUND Class A............ $1,000.00 $1,017.90 $ 2.75 Class B............ $1,000.00 $1,013.90 $ 6.58 Class C............ $1,000.00 $1,014.10 $ 6.60 Class Y............ $1,000.00 $1,020.10 $ 1.20 THE HARTFORD TARGET RETIREMENT 2030 FUND Class A............ $1,000.00 $1,014.10 $ 2.69 Class B............ $1,000.00 $1,009.70 $ 6.27 Class C............ $1,000.00 $1,010.80 $ 5.27 Class Y............ $1,000.00 $1,015.20 $ 1.10 THE HARTFORD TAX-FREE CALIFORNIA FUND Class A............ $1,000.00 $1,044.70 $ 4.64 Class B............ $1,000.00 $1,040.80 $ 8.48 Class C............ $1,000.00 $1,040.70 $ 8.49 HYPOTHETICAL (5% RETURN BEFORE EXPENSES) ----------------------------------------------------- EXPENSES PAID BEGINNING ENDING DURING THE PERIOD DAYS ACCOUNT ACCOUNT APRIL 30, 2006 ANNUALIZED IN THE DAYS VALUE VALUE THROUGH EXPENSE CURRENT IN THE APRIL 30, 2006 OCTOBER 31, 2006 OCTOBER 31, 2006 RATIO 1/2 YEAR FULL YEAR -------------- ---------------- ----------------- ---------- -------- --------- THE HARTFORD TARGET RETIREMENT 2020 FUND Class A............ $1,000.00 $1,022.48 $ 2.76 0.54% 184 365 Class B............ $1,000.00 $1,018.67 $ 6.60 1.30% 184 365 Class C............ $1,000.00 $1,018.65 $ 6.62 1.30% 184 365 Class Y............ $1,000.00 $1,024.02 $ 1.20 0.23% 184 365 THE HARTFORD TARGET RETIREMENT 2030 FUND Class A............ $1,000.00 $1,022.54 $ 2.70 0.53% 184 365 Class B............ $1,000.00 $1,018.97 $ 6.30 1.24% 184 365 Class C............ $1,000.00 $1,019.96 $ 5.30 1.04% 184 365 Class Y............ $1,000.00 $1,024.11 $ 1.11 0.22% 184 365 THE HARTFORD TAX-FREE CALIFORNIA FUND Class A............ $1,000.00 $1,020.67 $ 4.58 0.90% 184 365 Class B............ $1,000.00 $1,016.90 $ 8.38 1.65% 184 365 Class C............ $1,000.00 $1,016.89 $ 8.39 1.65% 184 365
384 --------------------------------------------------------------------------------
ACTUAL RETURN ----------------------------------------------------- EXPENSES PAID BEGINNING ENDING DURING THE PERIOD ACCOUNT ACCOUNT APRIL 30, 2006 VALUE VALUE THROUGH APRIL 30, 2006 OCTOBER 31, 2006 OCTOBER 31, 2006 -------------- ---------------- ----------------- THE HARTFORD TAX-FREE MINNESOTA FUND Class A............ $1,000.00 $1,039.50 $ 4.37 Class B............ $1,000.00 $1,036.60 $ 7.92 Class C............ $1,000.00 $1,036.50 $ 7.91 Class E............ $1,000.00 $1,039.30 $ 4.12 Class H............ $1,000.00 $1,036.40 $ 7.91 Class L............ $1,000.00 $1,040.10 $ 4.32 Class M............ $1,000.00 $1,036.40 $ 7.91 Class N............ $1,000.00 $1,036.40 $ 7.91 Class Y............ $1,000.00 $1,040.50 $ 4.10 THE HARTFORD TAX-FREE NATIONAL FUND Class A............ $1,000.00 $1,048.20 $ 5.16 Class B............ $1,000.00 $1,043.60 $ 9.01 Class C............ $1,000.00 $1,043.50 $ 9.00 Class E............ $1,000.00 $1,048.80 $ 4.59 Class H............ $1,000.00 $1,044.30 $ 9.01 Class L............ $1,000.00 $1,047.10 $ 5.42 Class M............ $1,000.00 $1,044.40 $ 9.02 Class N............ $1,000.00 $1,043.50 $ 9.01 Class Y............ $1,000.00 $1,048.70 $ 4.59 THE HARTFORD TAX-FREE NEW YORK FUND Class A............ $1,000.00 $1,045.30 $ 4.38 Class B............ $1,000.00 $1,041.30 $ 8.23 Class C............ $1,000.00 $1,041.30 $ 8.23 THE HARTFORD TOTAL RETURN BOND FUND Class A............ $1,000.00 $1,039.00 $ 6.12 Class B............ $1,000.00 $1,035.10 $10.00 Class C............ $1,000.00 $1,036.30 $ 9.57 Class I............ $1,000.00 $1,015.80 $ 1.54 Class Y............ $1,000.00 $1,041.90 $ 3.59 THE HARTFORD U.S. GOVERNMENT SECURITIES FUND Class A............ $1,000.00 $1,037.60 $ 5.91 Class B............ $1,000.00 $1,032.80 $ 9.82 Class C............ $1,000.00 $1,032.80 $ 9.75 Class E............ $1,000.00 $1,039.40 $ 4.26 Class H............ $1,000.00 $1,033.10 $ 9.37 Class L............ $1,000.00 $1,038.10 $ 5.54 Class M............ $1,000.00 $1,034.30 $ 9.38 Class N............ $1,000.00 $1,034.30 $ 9.38 Class Y............ $1,000.00 $1,031.40 $ 3.79 THE HARTFORD VALUE FUND Class A............ $1,000.00 $1,069.60 $ 7.15 Class B............ $1,000.00 $1,066.30 $11.18 Class C............ $1,000.00 $1,066.30 $11.19 Class Y............ $1,000.00 $1,072.30 $ 4.83 HYPOTHETICAL (5% RETURN BEFORE EXPENSES) ----------------------------------------------------- EXPENSES PAID BEGINNING ENDING DURING THE PERIOD DAYS ACCOUNT ACCOUNT APRIL 30, 2006 ANNUALIZED IN THE DAYS VALUE VALUE THROUGH EXPENSE CURRENT IN THE APRIL 30, 2006 OCTOBER 31, 2006 OCTOBER 31, 2006 RATIO 1/2 YEAR FULL YEAR -------------- ---------------- ----------------- ---------- -------- --------- THE HARTFORD TAX-FREE MINNESOTA FUND Class A............ $1,000.00 $1,020.92 $ 4.33 0.85% 184 365 Class B............ $1,000.00 $1,017.43 $ 7.84 1.54% 184 365 Class C............ $1,000.00 $1,017.44 $ 7.84 1.54% 184 365 Class E............ $1,000.00 $1,021.17 $ 4.08 0.80% 184 365 Class H............ $1,000.00 $1,017.43 $ 7.84 1.54% 184 365 Class L............ $1,000.00 $1,020.97 $ 4.28 0.84% 184 365 Class M............ $1,000.00 $1,017.44 $ 7.83 1.54% 184 365 Class N............ $1,000.00 $1,017.44 $ 7.83 1.54% 184 365 Class Y............ $1,000.00 $1,021.18 $ 4.06 0.80% 184 365 THE HARTFORD TAX-FREE NATIONAL FUND Class A............ $1,000.00 $1,020.17 $ 5.09 1.00% 184 365 Class B............ $1,000.00 $1,016.38 $ 8.89 1.75% 184 365 Class C............ $1,000.00 $1,016.39 $ 8.89 1.75% 184 365 Class E............ $1,000.00 $1,020.72 $ 4.53 0.89% 184 365 Class H............ $1,000.00 $1,016.39 $ 8.89 1.75% 184 365 Class L............ $1,000.00 $1,019.91 $ 5.34 1.05% 184 365 Class M............ $1,000.00 $1,016.38 $ 8.90 1.75% 184 365 Class N............ $1,000.00 $1,016.39 $ 8.89 1.75% 184 365 Class Y............ $1,000.00 $1,020.72 $ 4.53 0.89% 184 365 THE HARTFORD TAX-FREE NEW YORK FUND Class A............ $1,000.00 $1,020.92 $ 4.33 0.85% 184 365 Class B............ $1,000.00 $1,017.14 $ 8.14 1.60% 184 365 Class C............ $1,000.00 $1,017.14 $ 8.13 1.60% 184 365 THE HARTFORD TOTAL RETURN BOND FUND Class A............ $1,000.00 $1,019.20 $ 6.06 1.19% 184 365 Class B............ $1,000.00 $1,015.37 $ 9.91 1.95% 184 365 Class C............ $1,000.00 $1,015.81 $ 9.47 1.86% 184 365 Class I............ $1,000.00 $1,006.83 $ 1.53 0.91% 61 365 Class Y............ $1,000.00 $1,021.69 $ 3.55 0.70% 184 365 THE HARTFORD U.S. GOVERNMENT SECURITIES FUND Class A............ $1,000.00 $1,019.40 $ 5.86 1.15% 184 365 Class B............ $1,000.00 $1,015.54 $ 9.74 1.92% 184 365 Class C............ $1,000.00 $1,015.62 $ 9.66 1.90% 184 365 Class E............ $1,000.00 $1,021.03 $ 4.22 0.83% 184 365 Class H............ $1,000.00 $1,015.99 $ 9.29 1.83% 184 365 Class L............ $1,000.00 $1,019.77 $ 5.49 1.08% 184 365 Class M............ $1,000.00 $1,015.99 $ 9.29 1.83% 184 365 Class N............ $1,000.00 $1,015.99 $ 9.29 1.83% 184 365 Class Y............ $1,000.00 $1,021.48 $ 3.77 0.74% 184 365 THE HARTFORD VALUE FUND Class A............ $1,000.00 $1,018.30 $ 6.97 1.37% 184 365 Class B............ $1,000.00 $1,014.39 $10.90 2.15% 184 365 Class C............ $1,000.00 $1,014.37 $10.91 2.15% 184 365 Class Y............ $1,000.00 $1,020.54 $ 4.71 0.93% 184 365
385 HARTFORD MUTUAL FUNDS, INC. AND THE HARTFORD MUTUAL FUNDS II, INC. EXPENSE EXAMPLE -- (CONTINUED) --------------------------------------------------------------------------------
ACTUAL RETURN ----------------------------------------------------- EXPENSES PAID BEGINNING ENDING DURING THE PERIOD ACCOUNT ACCOUNT APRIL 30, 2006 VALUE VALUE THROUGH APRIL 30, 2006 OCTOBER 31, 2006 OCTOBER 31, 2006 -------------- ---------------- ----------------- THE HARTFORD VALUE OPPORTUNITIES FUND Class A............ $1,000.00 $1,037.50 $ 7.18 Class B............ $1,000.00 $1,033.60 $10.93 Class C............ $1,000.00 $1,033.60 $11.01 Class H............ $1,000.00 $1,034.10 $10.18 Class I............ $1,000.00 $1,067.20 $ 1.99 Class L............ $1,000.00 $1,038.00 $ 6.36 Class M............ $1,000.00 $1,034.20 $10.18 Class N............ $1,000.00 $1,034.10 $10.18 Class Y............ $1,000.00 $1,039.40 $ 5.19 HYPOTHETICAL (5% RETURN BEFORE EXPENSES) ----------------------------------------------------- EXPENSES PAID BEGINNING ENDING DURING THE PERIOD DAYS ACCOUNT ACCOUNT APRIL 30, 2006 ANNUALIZED IN THE DAYS VALUE VALUE THROUGH EXPENSE CURRENT IN THE APRIL 30, 2006 OCTOBER 31, 2006 OCTOBER 31, 2006 RATIO 1/2 YEAR FULL YEAR -------------- ---------------- ----------------- ---------- -------- --------- THE HARTFORD VALUE OPPORTUNITIES FUND Class A............ $1,000.00 $1,018.16 $ 7.11 1.40% 184 365 Class B............ $1,000.00 $1,014.46 $10.82 2.13% 184 365 Class C............ $1,000.00 $1,014.38 $10.91 2.15% 184 365 Class H............ $1,000.00 $1,015.20 $10.08 1.99% 184 365 Class I............ $1,000.00 $1,006.43 $ 1.94 1.15% 61 365 Class L............ $1,000.00 $1,018.97 $ 6.30 1.24% 184 365 Class M............ $1,000.00 $1,015.19 $10.09 1.99% 184 365 Class N............ $1,000.00 $1,015.19 $10.09 1.99% 184 365 Class Y............ $1,000.00 $1,020.12 $ 5.14 1.01% 184 365
386 THE HARTFORD MUTUAL FUNDS, INC. AND THE HARTFORD MUTUAL FUNDS II, INC. SHAREHOLDER MEETING RESULTS (UNAUDITED) -------------------------------------------------------------------------------- THE FOLLOWING PROPOSAL WAS ADDRESSED AND APPROVED AT A SPECIAL MEETING OF SHAREHOLDERS HELD ON OCTOBER 24, 2006. 1. PROPOSAL TO APPROVE A SUB-ADVISORY AGREEMENT BETWEEN HARTFORD INVESTMENT FINANCIAL SERVICES, LLC ("HIFSCO"), THE FUND'S INVESTMENT MANAGER, AND HARTFORD INVESTMENT MANAGEMENT COMPANY ("HARTFORD INVESTMENT MANAGEMENT"), AN AFFILIATE OF HIFSCO, PURSUANT TO WHICH HARTFORD INVESTMENT MANAGEMENT WILL SERVE AS AN ADDITIONAL SUB-ADVISER OF THE FUND AND MANAGE A PORTION OF THE FUND'S ASSETS.
FOR AGAINST ABSTAIN ------------- ----------- ----------- Hartford SmallCap Growth Fund............................... 7,185,605.809 226,775.117 442,548.933
THE FOLLOWING PROPOSAL WAS ADDRESSED AND APPROVED AT A SPECIAL MEETING OF SHAREHOLDERS HELD ON NOVEMBER 16, 2006. 1. PROPOSAL TO APPROVE A SUB-ADVISORY AGREEMENT BETWEEN HIFSCO, THE FUNDS' INVESTMENT MANAGER, AND HARTFORD INVESTMENT MANAGEMENT, AN AFFILIATE OF HIFSCO, PURSUANT TO WHICH HARTFORD INVESTMENT MANAGEMENT WILL SERVE AS SUB-ADVISER OF THE FUNDS AND MANAGE THE FUNDS' ASSETS.
FOR AGAINST ABSTAIN ------------- ----------- ----------- Hartford Select MidCap Growth Fund.......................... 3,271,898.335 66,894.204 175,685.393 Hartford Select MidCap Value Fund........................... 3,340,187.995 124,137.279 151,903.620
At the meeting held on August 1-2, 2006, the Board of Directors of The Hartford Mutual Funds II, Inc. unanimously approved a proposal to reclassify several classes of shares of each of the Funds. Under the proposal, shares of Classes E and Z of each Fund would be reclassified as Class Y shares of equal net asset value and shares of Classes M, N, and H of each Fund would be reclassified as Class L shares of equal net asset value (collectively, the "Reclassifications"). The proposed Reclassification of each share class of each Fund must be approved by shareholders of that class in order to be effected. If approved by shareholders, the Board expects that each Reclassification would occur in the first calendar quarter of 2007 on or before March 1, 2007. A special meeting of shareholders of each of the affected share classes of each Fund will be held on or about December 19, 2006, for the purpose of seeking the approval of the proposed Reclassification of that class. 381 APPROVAL OF INVESTMENT MANAGEMENT AND INVESTMENT SUB-ADVISORY AGREEMENTS (UNAUDITED) Section 15(c) of the Investment Company Act of 1940, as amended (the "1940 Act"), requires that each mutual fund's board of directors, including a majority of those directors who are not "interested persons" of the mutual fund, as defined in the 1940 Act ("Independent Directors"), annually review and consider the continuation of the mutual fund's investment management and sub-advisory agreements, after an initial two year period. At a meeting held on August 1-2, 2006, the Board of Directors of the Funds, including each of the Independent Directors, unanimously voted to approve the investment management agreement for each Fund with an agreement up for renewal with Hartford Investment Financial Services, LLC ("HIFSCO") and the investment sub-advisory agreements between HIFSCO and each Fund's respective sub-adviser(s) ("sub-advisers," and together with HIFSCO, "advisers") -- Hartford Investment Management Company ("Hartford Investment Management"), Wellington Management Company, LLP ("Wellington"), Chartwell Investment Partners, L.P. ("Chartwell"), Goldman Sachs Asset Management, L.P. ("GSAM"), Northern Capital Management, LLC ("Northern Capital"), Artisan Partners Limited Partnership ("Artisan"), Cramer Rosenthal McGlynn, LLC ("CRM"), Sterling Capital Management LLC ("Sterling"), Jennison Associates LLC ("Jennison") and Oberweis Asset Management, Inc. ("Oberweis") (collectively, the "agreements"). In the months preceding this meeting, the Board requested, received, and reviewed written responses from the advisers to questions posed to them on behalf of the Independent Directors and supporting materials relating to those questions and responses. In addition, the Board received in-person presentations about each Fund and the related agreements by Fund officers and representatives of HIFSCO at the Board's meetings on June 20-21, 2006 and August 1-2, 2006. In considering the approval of the agreements, the Board also took into account information provided to the Board at its meetings throughout the year, including reports on Fund performance, compliance, shareholder services, and the other services provided to the Funds by the advisers and their affiliates. The Independent Directors, advised by independent legal counsel, engaged two service providers to assist them with evaluating the agreements with respect to each Fund. Lipper, Inc. ("Lipper"), an independent provider of investment company data, was retained to provide the Board with reports on how each Fund's management and sub-advisory fees, overall expense ratios, and investment performance compared to those of mutual funds with similar investment objectives in various peer groups ("peer funds"). The Independent Directors also engaged an independent financial services consulting firm (the "Consultant") to assist them in evaluating each Fund's management and sub-advisory fees, overall expense ratios and investment performance. The Board considered the agreements for each Fund at the June and August meetings. In connection with these deliberations, HIFSCO agreed to reduce fees and shareholder expenses for a number of the Funds. In determining to continue the agreements for each Fund, the Board determined that the proposed management fee structure for each Fund, taking into account these reductions, was fair and reasonable and that continuation of the agreements was in the best interests of each Fund and its shareholders. In determining to re-approve the agreements, the Board considered the following categories of material factors, among others, relating to the agreements. NATURE, EXTENT AND QUALITY OF SERVICES The Board requested and considered information concerning the nature, extent, and quality of the services provided to the Funds by the advisers. The Board considered, among other things, the terms of the agreements, the range of services provided, and the advisers' organizational structure, systems and personnel. The Board received information on the experience of senior management and relevant investment and other personnel of the advisers, and the adequacy of the time and attention devoted by them to the Funds. The Board considered each adviser's reputation and overall financial strength, as well as its willingness to consider and implement organizational and operational changes, including hiring additional personnel, designed to improve services to the Funds, and its investments in infrastructure in light of increased regulatory requirements and other developments. The Board considered the progress that Hartford Investment Management has made in developing an equity management capability. In addition, the Board considered the quality of each adviser's communications with the Board, and responsiveness to Board inquiries. The Board also requested and evaluated information concerning each adviser's regulatory and compliance environment. In this regard, the Board requested and reviewed information on each adviser's compliance policies and procedures, their compliance history, and a report from the Funds' Chief Compliance Officer on each adviser's compliance with applicable laws and regulations, including their responses to regulatory developments and compliance issues raised by regulators. The Board also noted the advisers' support of the Funds' compliance control structure, particularly the resources devoted by the advisers in support of the Funds' obligations pursuant to Rule 38a-1 under the 1940 Act. With respect to HIFSCO, the Board noted that under the agreements, HIFSCO is responsible for the management of each Fund, including overseeing fund operations and service providers, and provides administrative services to the Funds as well as investment advisory services in connection with selecting, monitoring and supervising sub-advisers. With respect to the Asset Allocation Funds, the Board noted that HIFSCO is also responsible for administering the asset allocation programs for the Funds. The Board considered its experiences with HIFSCO with respect to each of these services. The Board considered that HIFSCO or its affiliates are responsible for providing the Funds' officers and paying their salaries and expenses. In addition, the Board considered the nature and quality of the services provided to the Funds and their shareholders by HIFSCO's affiliates. With respect to the sub-advisers, who provide day-to-day portfolio management services, the Board considered the quality of each sub-adviser's investment personnel, their ability to attract and retain qualified investment professionals, their investment philosophy and process, investment research capabilities and resources, performance record, trade execution capabilities and experience. Based on these considerations, the Board concluded that it was satisfied with the nature, extent and quality of the services provided to the Funds by HIFSCO and each of the sub-advisers. PERFORMANCE OF THE FUNDS, HIFSCO, AND THE SUB-ADVISERS The Board considered the investment performance of each Fund. In this regard, the Board considered information and materials provided to the Board from HIFSCO and Lipper comparing each Fund's short-term and long-term and recent investment performance over various periods of time with appropriate benchmark indices, and with a performance universe of funds selected by Lipper. This information included performance reports (provided by Lipper, HIFSCO and the sub-advisers) and discussions with portfolio managers and other representatives of the sub-advisers at board meetings throughout the year, as well as the information provided especially for the annual contract review. The Board also considered the analysis provided by the Consultant relating to each Fund's performance track record. 382 APPROVAL OF INVESTMENT MANAGEMENT AND INVESTMENT SUB-ADVISORY AGREEMENTS (UNAUDITED) - (CONTINUED) The Board considered HIFSCO's cooperation with the Investment Committee, which assists the Board in evaluating the performance of the Funds at periodic meetings throughout the year. The Board reviewed the performance of each Fund over the different time periods presented in the materials and evaluated each adviser's analysis of the Funds' performance for these time periods, with specific attention to information indicating underperformance of certain Funds for specific time periods relative to a peer group or benchmark, and the causes for such underperformance. In evaluating the performance of each Fund, the Board also considered whether the Fund had been in operation for a sufficient time period to establish a meaningful performance track record. Based on these considerations, the Board concluded with respect to each Fund that the Fund's performance over time has been satisfactory, and that it had continued confidence in HIFSCO's and the sub-advisers' overall capabilities to manage each Fund. COSTS OF THE SERVICES AND PROFITABILITY OF HIFSCO AND THE SUB-ADVISERS The Board reviewed information regarding HIFSCO's cost to provide investment management and related services to the Funds and HIFSCO's profitability, both overall and for each Fund, on a pre-tax basis without regard to distribution expenses. In this regard, the Board noted that HIFSCO had worked with PriceWaterhouseCoopers to refine its methodology for calculating profitability. The Board considered the fact that HIFSCO has subsidized certain of the Funds' fees and total operating expenses through expense limitations and voluntary fee waivers, including expense limitations and voluntary fee waivers negotiated by the Board in connection with the renewal of the agreements. The Board also requested and reviewed information about the profitability to HIFSCO and its affiliates from all services provided to the Funds and all aspects of their relationship with the Funds. With respect to those Funds which are sub-advised by Hartford Investment Management, an affiliate of HIFSCO, the Board considered the costs and profitability information for HIFSCO and Hartford Investment Management in the aggregate. The Board also requested and received information relating to the operations and profitability of the other sub-advisers. In evaluating such sub-advisers' profitability with respect to the Funds, the Board considered primarily HIFSCO's and the sub-advisers' representations that HIFSCO had negotiated the sub-advisory fees at arm's length, and the sub-advisers' representations that the fees charged to HIFSCO were comparable to fees charged by the sub-advisers' to similar clients. Based on these considerations, the Board concluded that the profits anticipated to be realized by the advisers and their affiliates from their relationships with the Funds would not be excessive. COMPARISON OF FEES AND SERVICES PROVIDED BY HIFSCO AND THE SUB-ADVISERS The Board considered comparative information with respect to the investment management fees to be paid by the Funds to HIFSCO, the investment sub-advisory fees to be paid by HIFSCO to the sub-advisers, and the total expense ratios of the Funds. In this regard, the Board requested and reviewed information from HIFSCO and each sub-adviser relating to the management and sub-advisory fees, and total operating expenses, for each Fund. The Board also reviewed written materials from Lipper providing comparative information about each Fund's management and sub-advisory fees, total expense ratios and the components thereof, relative to those of peer groups. While the Board recognized that comparisons between the Funds and peer funds are imprecise, given the differing service levels and characteristics of mutual funds, and the different business models and cost structures of advisers, the comparative information provided by Lipper assisted the Board in evaluating the reasonableness of each Fund. In addition, the Board considered the analysis and recommendations of the Consultant relating to each Fund's management and sub-advisory fees and total operating expenses. The Board particularly considered HIFSCO's agreement to lower certain Funds' fees and expenses in connection with the contract renewal process. In its deliberations, the Board gave significant weight to each Fund's overall expense ratio, net of these reductions. The following reductions were agreed to at the meeting, each effective November 1, 2006: Management Fee Waivers or Reductions: 5 basis points ("bps") -- Advisers Fund, Stock Fund, Aggressive Growth Allocation Fund, Growth Allocation Fund, Balanced Allocation Fund, Conservative Allocation Fund, Income Allocation Fund, Retirement Income Fund, Target Retirement 2010 Fund, Target Retirement 2020 Fund and Target Retirement 2030 Fund; 8 bps -- Total Return Bond Fund; 10 bps -- Equity Income Fund, Focus Fund, Global Communications Fund, Global Financial Services Fund, Global Health Fund, Global Technology Fund, Inflation Plus Fund, International Capital Appreciation Fund and International Small Company Fund; 15 bps -- Tax-Free Minnesota Fund and Tax-Free National Fund; 16 bps -- U.S. Government Securities Fund; 20 bps -- High Yield Fund. Permanent Total Operating Expense Caps for Class A Shares of 100 bps: Floating Rate Fund, Income Fund, Inflation Plus Fund, Money Market Fund, Short Duration Fund, Tax-Free California Fund, Tax-Free Minnesota Fund, Tax-Free National Fund, Tax-Free New York Fund, Total Return Bond Fund and U.S. Government Securities Fund. Voluntary Total Operating Expense Caps: HIFSCO agreed to voluntary total operating expense caps in varying amounts for the following Funds: Advisers Fund, Capital Appreciation Fund, Capital Appreciation II Fund, Disciplined Equity Fund, Dividend and Growth Fund, Equity Income Fund, Focus Fund, Global Communications Fund, Global Financial Services Fund, Global Health Fund, Global Leaders Fund, Global Technology Fund, Growth Fund, Growth Opportunities Fund, High Yield Fund, Income Fund, Inflation Plus Fund, International Capital Appreciation Fund, International Opportunities Fund, International Small Company Fund, MidCap Fund, MidCap Value Fund, Money Market Fund, Select MidCap Growth Fund, Select MidCap Value Fund, Select SmallCap Growth Fund, Short Duration Fund, Small Company Fund, SmallCap Growth Fund, Stock Fund, Tax-Free California Fund, Tax-Free Minnesota Fund, Tax-Free National Fund, Tax-Free New York Fund, Value Fund, Value Opportunities Fund, Total Return Bond Fund, U.S. Government Securities Fund, Aggressive Growth Allocation Fund, Growth Allocation Fund, Balanced Allocation Fund, Conservative Allocation Fund, Income Allocation Fund, Retirement Income Fund, Target Retirement 2010 Fund, Target Retirement 2020 Fund and Target Retirement 2030 Fund. Based on these considerations, the Board concluded that each Fund's fees and total operating expenses are within a range that is competitive with fees and total operating expenses charged by peer funds, and, in conjunction with the information about quality of services, profitability, economies of scale, and other matters discussed, are reasonable. 383 APPROVAL OF INVESTMENT MANAGEMENT AND INVESTMENT SUB-ADVISORY AGREEMENTS (UNAUDITED) - (CONTINUED) ECONOMIES OF SCALE The Board requested and considered information regarding the advisers' realization of economies of scale with respect to the Funds, and whether the fee levels reflect these economies of scale for the benefit of each Fund's investors. With respect to HIFSCO, the Board considered representations from HIFSCO that it is difficult to anticipate whether and the extent to which economies may be realized by HIFSCO as assets grow over time. The Board reviewed the breakpoints in the advisory fee schedule for each Fund, which reduce fees as Fund assets grow over time. The Board recognized that Funds with assets beyond the last breakpoint level continue to benefit from economies of scale, because additional assets are charged the lowest breakpoint fee, resulting in lower overall effective management fee rates. The Board considered that certain Funds may achieve some economies as certain fixed expenses are spread over a larger asset base, noting that there is no precise way to measure such economies, and that certain expenses do not necessarily decrease as assets increase. The Board also considered that expense limitations and fee waivers that reduce Fund expenses at all asset levels can have the same effect as breakpoints in sharing economies of scale with shareholders, and that a schedule that reaches a lower breakpoint quickly provides shareholders with the benefit of anticipated or potential economies of scale. The Board reviewed and evaluated materials from Lipper showing how the fee schedules of peer funds reflect economies of scale for the benefit of investors as a peer fund's assets hypothetically increase over time. Based on information provided by HIFSCO, Lipper, and the Consultant, the Board recognized that there is no uniform methodology for establishing breakpoints, or uniform pattern in asset levels that trigger breakpoints or the amounts of breakpoints triggered. After considering all of the information available to it, the Board concluded that it was satisfied with the extent to which economies of scale would be shared for the benefit of each Fund's investors, based on currently available information and the effective advisory fees and expense ratios for the Funds at their current and reasonably anticipated asset levels. The Board noted, however, that it would continue to monitor future growth in Fund assets and the appropriateness of additional breakpoints. OTHER BENEFITS The Board considered other benefits to the advisers and their affiliates from their relationships with the Funds. The Board reviewed information noting that Hartford Life Insurance Company, Inc. ("Hartford Life"), an affiliate of HIFSCO, receives fees for fund accounting and related services from the Funds, and the Board considered information on expected profits to Hartford Life or its affiliates for such services. The Board also reviewed the fact that Hartford Administrative Services Company ("HASCO"), the Funds' transfer agent and an affiliate of HIFSCO, receives transfer agency compensation from the Funds, and the Board reviewed information on the expected profitability of the Funds' transfer agency function to HASCO. The Board noted, in this regard, that HASCO is a recognized leader in providing high quality services to Fund shareholders. The Board considered information provided by HASCO indicating that the per-account fees charged by HASCO to the Funds are reasonable and in line with industry standards. The Board additionally considered that HASCO had proposed changes to the transfer agency fee structure and reductions in the fees charged to certain types of accounts that would result in estimated shareholder savings of approximately $2.5 million per year. The Board also considered that, as principal underwriter of the Funds, HIFSCO receives 12b-1 fees from the Funds and receives all or a portion of the sales charges on sales or redemptions of certain classes of shares. The Board also noted that certain affiliates of HIFSCO distribute shares of the Funds and receive compensation in that connection. The Board considered benefits to the sub-advisers from their proposed use of the Funds' brokerage commissions to obtain soft dollar research, and representations from HIFSCO and the sub-advisers that the sub-advisers would not be making any revenue-sharing payments or any other type of distribution payments to HIFSCO or its affiliates. The Board also considered the fact that Hartford Life had agreed, effective January 1, 2007, to no longer charge the Funds for legal services provided to the Funds by personnel of Hartford Life. Based upon expense information for the prior calendar year, this change will result in savings to the Funds of approximately $340,000 per year. The Board considered the benefits to shareholders of being part of the Hartford family of funds, including the right to exchange investments between the same class of funds without a sales charge, the ability to reinvest Fund dividends into other funds in the family and to combine holdings in other Funds to obtain a reduced sales charge. The Board considered HIFSCO's efforts to provide investors in the family with a broad range of investment styles and asset classes, and its entrepreneurial risk in initiating new funds to expand these opportunities for shareholders. * * * * Based upon its review of these various factors, among others, the Board concluded that it is in the best interests of the Funds and their shareholders for the Board to approve the agreements for an additional year. In reaching this decision, the Board did not assign relative weights to the factors discussed above or deem any one or group of them to be controlling in and of themselves. In connection with their deliberations, the Independent Directors and the full Board met separately in executive session on several occasions, with independent legal counsel, to review the relevant materials and consider their responsibilities under relevant laws and regulations. 384 APPROVAL OF INVESTMENT MANAGEMENT AND INVESTMENT SUB-ADVISORY AGREEMENTS (UNAUDITED) - (CONTINUED) THE HARTFORD SELECT SMALL CAP VALUE FUND (FOR PURPOSES OF THIS SECTION, THE TERM "FUND" SHALL REFER ONLY TO THE HARTFORD SELECT SMALL CAP VALUE FUND) At a meeting held on February 8, 2006, the Board of Directors unanimously voted to approve The Hartford Select SmallCap Value Fund's (the "Fund") investment management agreement with HIFSCO and the investment sub-advisory agreements between HIFSCO and each of the Fund's sub-advisers ("Sub-Advisers"), Kayne Anderson Rudnick Investment Management, LLC ("KAR"), Metropolitan West Capital Management ("MetWest Capital") and SSgA Funds Management, Inc. ("SSgA") (collectively, the "Agreements"'). In this regard, the Board reviewed written responses from HIFSCO and the proposed sub-advisers to questions posed to them on behalf of the Independent Directors and supporting materials relating to those questions and responses (the "Adviser Materials"). In addition, the Board received in-person presentations about the proposed sub-advisers by Fund officers and representatives of HIFSCO. The Board's Investment Committee had also met in person with representatives of the proposed sub-advisers and received presentations regarding the capabilities of the proposed sub-advisers and their portfolio management teams and the associated benefits to the Fund and its shareholders. In determining to approve the Agreements, the Board determined that the Agreements, including the appointment of the Sub-Advisers, were fair and reasonable and in the best interests of the Fund and its shareholders. The Board considered the following categories of material factors, among others, relating to the Agreements. NATURE, EXTENT AND QUALITY OF SERVICES The Board considered the nature, extent, and quality of the services to be provided to the Fund by HIFSCO and the Sub-Advisers. The Board considered, among other things, HIFSCO's and each Sub-Adviser's organizational structure, personnel who would provide services to the Fund, capacity, investment process and regulatory/compliance history. In addition, the Board considered each Sub-Adviser's investment philosophy, performance record, trade execution capabilities, and concluded that the Fund had merit as an addition to the Hartford family of funds. The Board further considered its past experiences with HIFSCO with respect to the services it has provided to other Hartford-sponsored funds, including HIFSCO's management and monitoring of the funds' sub-advisers, the quality of HIFSCO's communications with the Board, the compliance structure and systems established by HIFSCO and HIFSCO's responsiveness to Board inquiries. The Board considered the resources committed by each Sub-Advisor to the Fund and considered that the Investment Committee of the Board had previously met with representatives from each Sub-Adviser, and that the Investment Committee was satisfied with the quality of the presentations. The Board concluded that it was satisfied with the nature, extent and quality of the services to be provided to the Fund by HIFSCO and each of the Sub-Advisers. PERFORMANCE OF HIFSCO AND THE SUB-ADVISERS The Board considered the investment performance of the Sub-Advisers or their portfolio management teams in managing funds and accounts which follow investment strategies similar to the Fund (i.e., focusing on small-cap investments). In this regard, the Board considered each Sub-Adviser's prior performance in managing assets in the small-cap value and other asset categories with respect to both benchmark and various peer-group comparisons. In addition, the Board considered hypothetical combined performance data relating to the three Sub-Advisers. The Board concluded that, while there could be no guarantee of future results, the Board was satisfied that HIFSCO and each Sub-Adviser have the capability of providing satisfactory investment performance for the Fund. COST OF SERVICES AND PROFITABILITY OF HIFSCO AND THE SUB-ADVISERS The Board reviewed information regarding HIFSCO's and the Sub-Advisers' cost to provide investment management and related services to the Fund and the profitability to them from managing the Fund. The Board considered that initially HIFSCO and the Sub-Advisers will provide substantial subsidies to the Fund in the form of caps on operating expenses of the Fund. The Board also considered representations by HIFSCO that it did not recommend the Sub-Advisers with a view to increase profitability as investment manager to the Fund. The Board concluded that the profits anticipated to be realized by HIFSCO and the Sub-Advisers from their relationships with the Fund would not be excessive. COMPARISON OF FEES AND SERVICES PROVIDED BY HIFSCO AND THE SUB-ADVISERS The Board considered both the investment management fees to be paid by the Fund to HIFSCO and the sub-advisory fees to be paid by HIFSCO to the Sub-Advisers under the Agreements. The Board considered HIFSCO's representation that it had negotiated the Sub-Advisers' fees at arm's length, and that the fees that HIFSCO would pay to the Sub-Advisers were comparable to fees charged by the Sub-Advisers to other institutional clients. The Board also considered information provided by HIFSCO indicating that the proposed management fee for the Fund is in-line with the average and median management fee of the Fund's peer group at all asset levels. Based on these considerations, the Board concluded that the Fund's management fee and sub-advisory fees, in conjunction with the information about quality of services, profitability, and other matters discussed, supports the conclusion that these fees are reasonable. ECONOMIES OF SCALE The Board considered the extent to which economies of scale would be realized as the Fund grows and whether fee levels reflect these economies of scale for the benefit of the Fund's investors. The Board reviewed the breakpoints in HIFSCO's management fee schedule. With respect to economies of scale, the Board considered the breakpoints in the Fund's sub-advisory fee schedules and how any benefits from economies of scale would be realized by the various parties. The Board reviewed relevant information included in the Adviser Materials providing comparative breakpoint information for other fund groups. The Board concluded that it was satisfied with the extent to which economies of scale would be shared for the benefit of the Fund's investors. 385 APPROVAL OF INVESTMENT MANAGEMENT AND INVESTMENT SUB-ADVISORY AGREEMENTS (UNAUDITED) - (CONTINUED) OTHER BENEFITS The Board considered other benefits to HIFSCO, the Sub-Advisers and their affiliates from their relationships with the Fund. In addition, the Board considered benefits to KAR from its proposed use of the Fund's brokerage commissions to obtain research that could be used for KAR's clients other than the Fund, and representations from HIFSCO and the Sub-Advisers that the Sub-Advisers would not be making any revenue-sharing payments or any other type of distribution payments to HIFSCO or its affiliates. The Board also considered representations by SSgA that it does not plan to use the Fund's brokerage commissions to obtain soft dollar benefits. Based upon its review of these various factors, among others, the Board concluded that it is in the best interests of the Fund and its shareholders for the Board to approve the Agreements. In reaching this decision, the Board did not assign relative weights to the factors discussed above or deem any one or group of them to be controlling in and of themselves. THE HARTFORD MIDCAP GROWTH FUND (FOR PURPOSES OF THIS SECTION, THE TERM "FUND" SHALL REFER ONLY TO THE HARTFORD MIDCAP GROWTH FUND) At a meeting held on February 8, 2006, the Board of Directors unanimously voted to approve the investment management agreement between The Hartford MidCap Growth Fund (the "Fund") and HIFSCO, and the investment sub-advisory agreement between HIFSCO and the Fund's sub-adviser, Hartford Investment Management Company ("Hartford Investment Management") (collectively, the "Agreements"), relating to the Fund. In advance of the February meeting, the Board reviewed written responses from HIFSCO and Hartford Investment Management to questions posed to them on behalf of the Independent Directors and supporting materials relating to those questions and responses (the "Adviser Materials"). In addition, the Board received in-person presentations about the Fund and the Agreements by representatives of HIFSCO and Hartford Investment Management at the Board's meeting on February 1, 2006. In determining to approve the Agreements, the Board determined that the Agreements, including the appointment of Hartford Investment Management as sub-adviser, were fair and reasonable and in the best interests of the Fund and its shareholders. The Board considered the following categories of material factors, among others, relating to the Agreements. NATURE, EXTENT AND QUALITY OF SERVICES The Board considered information and data concerning the nature, extent, and quality of the services to be provided to the Fund by HIFSCO and Hartford Investment Management. The Board considered, among other things, the terms of the Agreements, the range of services to be provided, and HIFSCO's and Hartford Investment Management's organizational structure, systems and personnel. The Board considered HIFSCO's and Hartford Investment Management's reputation and overall financial strength, noting that Hartford Investment Management's current reputation and the Board's past experience with Hartford Investment Management was predominantly based on Hartford Investment Management's performance as a fixed income manager. With respect to the day-to-day portfolio management services to be provided by Hartford Investment Management, the Board met with Mark Waterhouse, the proposed portfolio manager for the Fund, and members of his management team and considered the quality of Hartford Investment Management's investment personnel (including its ability to attract and retain qualified investment professionals); its investment philosophy and process (and adherence to that philosophy and process); and its investment research capabilities and resources, performance record, and trade execution capabilities and experience. The Board recognized that HIFSCO is responsible for the overall management of the Fund and providing investment advisory services in connection with selecting, monitoring and supervising the Fund's sub-adviser and had recommended to the Board that Hartford Investment Management be appointed as a sub-adviser to the Fund. Based on these considerations, the Board concluded that it was satisfied with the nature, extent and quality of the services to be provided to the Fund by HIFSCO and Hartford Investment Management. PERFORMANCE OF HIFSCO AND THE SUB-ADVISER The Board considered the investment performance of Hartford Investment Management and its portfolio management team. As Hartford Investment Management did not have a performance track record for active equity management, HIFSCO presented information regarding the performance record of Mr. Waterhouse. This information included the performance record for another Hartford-sponsored fund during the period from June 30, 1997 through December 31, 1999, when Mr. Waterhouse, as an employee of Wellington Management, was a portfolio manager for the fund, and the performance record for another mutual fund for which Mr. Waterhouse had served as portfolio manager prior to his experience at Wellington Management. HIFSCO and Hartford Investment Management provided additional information about the broad range of Mr. Waterhouse's and his team's recent investment experience and about their investment philosophy and process. Based on these considerations, the Board concluded that, while there could be no guarantee of future results, the Board was satisfied that HIFSCO and Hartford Investment Management have the capability of providing satisfactory investment performance for the Fund. COST OF SERVICES AND PROFITABILITY OF HIFSCO AND THE SUB-ADVISER The Board reviewed information regarding HIFSCO's and Hartford Investment Management's cost to provide investment management and related services to the Fund and the profitability to them from managing the Fund. The Board considered information related to both HIFSCO and Hartford Investment Management, because it was proposed that Hartford Investment Management be reimbursed for its costs rather than receive a set fee, with the result that any profitability from managing the Fund would be realized only with respect to HIFSCO. The Board considered information about the profitability to HIFSCO and its affiliates from all services to be provided to the Fund and all aspects of its relationships with the Fund. In evaluating HIFSCO's profitability, the Board considered that initially HIFSCO will provide subsidies to the Fund in the form of caps on operating expenses of the Fund, and that future profitability to HIFSCO would depend on the growth of equity assets under management. The Board also considered representations by HIFSCO that it did not recommend Hartford Investment Management with a view to increase profitability as investment manager to 386 APPROVAL OF INVESTMENT MANAGEMENT AND INVESTMENT SUB-ADVISORY AGREEMENTS (UNAUDITED) - (CONTINUED) the Fund. The Board concluded that the profits anticipated to be realized by HIFSCO, Hartford Investment Management and their affiliates from their relationships with the Fund would not be excessive. COMPARISON OF FEES AND SERVICES PROVIDED BY HIFSCO AND THE SUB-ADVISER The Board considered comparative information with respect to the investment management fees to be paid by the Fund to HIFSCO and its affiliates. In this regard, the Board received information from HIFSCO and Hartford Investment Management relating to the management fees, sub-advisory fees, and total operating expenses for the Fund. HIFSCO also referenced information comparing the Fund's management fees and total operating expenses relative to those of a peer universe of funds identified by Lipper Inc., an independent provider of investment company data ("Lipper"), as being in the mid-capitalization growth category. In considering the reasonableness of the Fund's fees and total expense ratios, the Board particularly considered that according to the information provided by Lipper, the proposed management fee for the Fund would be below the average and median management fee of its peer group at all asset levels. Based on these considerations, the Board concluded that the Fund's management fee and sub-advisory fees, in conjunction with the information about quality of services, profitability, and other matters discussed, supports the conclusion that these fees are reasonable. ECONOMIES OF SCALE The Board considered the extent to which economies of scale would be realized as the Fund grows and whether fee levels reflect these economies of scale for the benefit of the Fund's investors. The Board reviewed the breakpoints in HIFSCO's management fee schedule. With respect to economies of scale, the Board reviewed relevant information included in the Adviser Materials providing comparative breakpoint information for other funds in the Fund's peer groups. The Board also considered representations from HIFSCO that the initial start-up costs Hartford Investment Management would incur in building its equity management capability would be high relative to the amount of assets under management. However, the Board acknowledged that HIFSCO and Hartford Investment Management were likely to realize economies of scale over time as Hartford Investment Management's equity assets under management increased. The Board concluded that it was satisfied with the extent to which economies of scale would be shared for the benefit of the Fund's investors. OTHER BENEFITS The Board considered other benefits to HIFSCO, Hartford Investment Management and their affiliates from their relationships with the Fund. Based upon its review of these various factors, among others, the Board concluded that it is in the best interests of the Fund and its shareholders for the Board to approve the Agreements. In reaching this decision, the Board did not assign relative weights to the factors discussed above or deem any one or group of them to be controlling in and of themselves. THE HARTFORD BALANCED INCOME FUND (FOR PURPOSES OF THIS SECTION, THE TERM "FUND" SHALL REFER ONLY TO THE HARTFORD BALANCED INCOME FUND) At a meeting held on May 9-10, 2006, the Board of Directors unanimously voted to approve the investment management agreement between The Hartford Balanced Income Fund (the "Fund") and HIFSCO, and the investment sub-advisory agreement between HIFSCO and the Fund's sub-adviser, Wellington Management Company LLP ("Wellington Management") (collectively, the "Agreements"), relating to the Fund. In advance of the May meeting, the Board reviewed written responses from HIFSCO and Wellington Management to questions posed to them on behalf of the Independent Directors and supporting materials relating to those questions and responses (the "Adviser Materials"). In addition, the Board's Investment Committee received in-person presentations about the Fund and the Agreements by representatives of HIFSCO and Wellington Management at the Committee's meeting on May 9, 2006. In determining to approve the Agreements, the Board determined that the Agreements, including the appointment of Wellington Management as sub-adviser, were fair and reasonable and in the best interests of the Fund and its shareholders. The Board considered the following categories of material factors, among others, relating to the Agreements. NATURE, EXTENT AND QUALITY OF SERVICES The Board considered information and data concerning the nature, extent, and quality of the services to be provided to the Fund by HIFSCO and Wellington Management. The Board considered, among other things, the terms of the Agreements, the range of services to be provided, and HIFSCO's and Wellington Management's organizational structure, systems and personnel. In particular, the Board considered that the Fund's proposed strategy of providing current income with growth of capital requires the Fund to allocate assets between a fixed income sleeve and an equity sleeve, and that Wellington Management has the personnel and resources to manage both sleeves. The Board considered HIFSCO's and Wellington Management's reputation and overall financial strength, noting Wellington Management's current reputation and the Board's past experience with Wellington Management as sub-adviser for other Hartford-sponsored mutual funds. The Board considered HIFSCO's and Wellington Management's willingness to hire additional personnel designed to improve services to the Fund and their investments in infrastructure in light of increased regulatory requirements and other developments. With respect to the day-to-day portfolio management services to be provided by Wellington Management, the Investment Committee met with Jack Ryan, the proposed portfolio manager for the Fund's equity sleeve, and with Lucius Hill, the proposed portfolio manager for the Fund's fixed income sleeve, and with members of their management team. The Board considered Wellington Management's investment philosophy and process (and adherence to that philosophy and process); and its investment research capabilities and resources, performance record, and trade execution capabilities and experience. The Board recognized that HIFSCO is responsible for the overall management of the Fund and providing investment advisory services in connection with selecting, monitoring and supervising the Fund's sub-adviser, and that HIFSCO had recommended to the Board that Wellington Management be appointed as a sub-adviser to the Fund. Based on these considerations, the Board concluded that it was satisfied with the nature, extent and quality of the services to be provided to the Fund by HIFSCO and Wellington Management. 387 APPROVAL OF INVESTMENT MANAGEMENT AND INVESTMENT SUB-ADVISORY AGREEMENTS (UNAUDITED) - (CONTINUED) PERFORMANCE OF HIFSCO AND THE SUB-ADVISER The Board considered the investment performance Wellington Management and its portfolio management team. HIFSCO and Wellington Management presented information regarding the performance record of Mr. Ryan and Mr. Hill and their experience as portfolio managers for other balanced portfolios sub-advised by Wellington Management. This information included reports from HIFSCO and Wellington Management showing the hypothetical three year performance of a model portfolio and a model portfolio's benchmark reflecting the Fund's proposed investment strategy and investment process. The Board acknowledged the difficulty in evaluating performance because there is currently no ideal benchmark for the proposed allocation of Fund assets. Based on these considerations, the Board concluded that, while there could be no guarantee of future results, the Board was satisfied that HIFSCO and Wellington Management have the capability of providing satisfactory investment performance for the Fund. COST OF SERVICES AND PROFITABILITY OF HIFSCO AND THE SUB-ADVISER The Board reviewed information regarding HIFSCO's and Wellington Management's costs to provide investment management and related services to the Fund and the profitability to them from managing the Fund. The Board considered the proposed Advisory and Sub-Advisory fee schedules and considered information about the profitability to HIFSCO and its affiliates from all services to be provided to the Fund and all aspects of their relationships with the Fund. In evaluating HIFSCO's profitability, the Board considered that initially HIFSCO will provide subsidies to the Fund in the form of caps on operating expenses of the Fund, and that future profitability to HIFSCO and Wellington Management would depend on the growth of assets under management. The Board also considered representations by HIFSCO that it did not recommend Wellington Management with a view to increase profitability as investment manager to the Fund. The Board concluded that the profits anticipated to be realized by HIFSCO, it's affiliates and Wellington Management from their relationships with the Fund would not be excessive. COMPARISON OF FEES AND SERVICES PROVIDED BY HIFSCO AND THE SUB-ADVISER The Board considered comparative information with respect to the investment management fees to be paid by the Fund to HIFSCO and the sub-advisory fee that HIFSCO will pay Wellington Management. In this regard, the Board received information from HIFSCO and Wellington Management relating to the management fees, sub-advisory fees, and total operating expenses for the Fund. HIFSCO also referenced information comparing the Fund's management fees and total operating expenses relative to those of a peer universe of funds identified by Lipper as pursuing a balanced allocation strategy. In considering the reasonableness of the Fund's fees and total expense ratios, the Board particularly considered that according to the information provided by Lipper, the proposed management fee for the Fund would be below the average management fee of its peer group at all asset levels. Based on these considerations, the Board concluded that the Fund's management fee and sub-advisory fees, in conjunction with the information about quality of services, profitability, and other matters discussed, supports the conclusion that these fees are reasonable. ECONOMIES OF SCALE The Board considered the extent to which economies of scale would be realized as the Fund grows and whether fee levels reflect these economies of scale for the benefit of Fund's investors. The Board reviewed the breakpoints in HIFSCO's management fee schedule. The Board considered HIFSCO's representations that the Fund could be expected to achieve some economies, and that certain costs incurred will decline as assets in the Fund grow. With respect to economies of scale, the Board considered the breakpoints in the Fund's sub-advisory fee schedules and how any benefits from economies of scale would be realized by the various parties. The Board reviewed relevant information included in the Adviser Materials providing comparative breakpoint information for other funds in the Fund's peer group. Based on these considerations, the Board concluded that it was satisfied with the extent to which economies of scale would be shared for the benefit of the Fund's investors. OTHER BENEFITS The Board considered other benefits to HIFSCO and Wellington Management from their relationships with the Fund. The Board also considered information in the Adviser Materials about HIFSCO affiliates that will provide services to the Fund and their anticipated benefits from their relationships with the Fund. In addition, the Board considered Wellington Management's statements that Wellington Management conducts its own research. Based upon its review of these various factors, among others, the Board concluded that it is in the best interests of the Fund and its shareholders for the Board to approve the Agreements. In reaching this decision, the Board did not assign relative weights to the factors discussed above or deem any one or group of them to be controlling in and of themselves. THE HARTFORD SMALLCAP GROWTH FUND (FOR PURPOSES OF THIS SECTION, THE TERM "FUND" SHALL REFER ONLY TO THE HARTFORD SMALLCAP GROWTH FUND) At a meeting held on June 20 and 21, 2006, the Board of Directors of the Fund unanimously voted to approve the investment sub-advisory agreement between HIFSCO and Hartford Investment Management (the "Agreement") with respect to the Fund. In advance of the June meeting, the Board reviewed written responses from HIFSCO and Hartford Investment Management to questions posed to them on behalf of the Independent Directors and supporting materials relating to those questions and responses. The Board also received in-person presentations from management and the proposed portfolio manager for the Fund, Hugh Whelan, regarding the capabilities of Hartford Investment Management's multi-discipline equity management team and the associated benefits to the Fund and its shareholders. The Board's Investment Committee also received an in-person presentation from the portfolio manager about the team's capabilities and the associated benefits to shareholders at its meeting on May 9, 2006. In addition, the Board had previously received information with respect to the Fund and Hartford Investment Management when Hartford Investment Management was re-approved as a sub-adviser to certain of the Company's other funds on August 3, 2005, and when Hartford Investment Management was approved as an additional sub-adviser to one of the Company's equity funds on February 8, 2006. 388 APPROVAL OF INVESTMENT MANAGEMENT AND INVESTMENT SUB-ADVISORY AGREEMENTS (UNAUDITED) - (CONTINUED) In determining to approve the Agreement, the Board determined that the Agreement, including the appointment of Hartford Investment Management as sub-adviser, was fair and reasonable and in the best interests of the Fund and its shareholders. The Board considered the following categories of material factors, among others, relating to the Agreement. NATURE, EXTENT AND QUALITY OF SERVICES The Board considered information and data concerning the nature, extent, and quality of the services to be provided to the Fund by Hartford Investment Management. The Board considered, among other things, the terms of the Agreement, the range of services to be provided, and Hartford Investment Management's organizational structure, systems and personnel. The Board received information on the background and experience of senior management and relevant investment and other personnel at Hartford Investment Management, and the adequacy of the time and attention that they would devote to the Fund. The Board considered Hartford Investment Management's reputation and overall financial strength, noting that Hartford Investment Management's current reputation and the Board's past experience with Hartford Investment Management was predominantly based on Hartford Investment Management's performance as a fixed income manager. The Board also considered the experience and reputation of equity personnel hired by Hartford Investment Management to service the Fund and the level of support provided by the organization as a whole. The Board and the Investment Committee met with Hugh Whelan, the proposed portfolio manager for the Fund. The Board considered HIFSCO's and Hartford Investment Management's investments in infrastructure in light of increased regulatory requirements and the needs of Hartford Investment Management's proposed active equity management function. The Board also requested and evaluated information concerning Hartford Investment Management's regulatory and compliance environment. Taking note that such material was recently reviewed in August 2005 in connection with the renewal of Hartford Investment Management's agreements with respect to certain of the Company's other funds, the Board focused on regulatory and compliance matters particular to the management of equity securities as opposed to fixed income securities. In this regard, the Board requested and reviewed information on Hartford Investment Management's compliance policies and procedures, compliance history, and reports from the Fund's Chief Compliance Officer on Hartford Investment Management's compliance with applicable laws and regulations, including its responses to regulatory developments and compliance issues raised by regulators. The Board also noted HIFSCO's and Hartford Investment Management's support of the Company's compliance control structure, particularly the resources devoted by HIFSCO and Hartford Investment Management in support of the Company's obligations pursuant to Rule 38a-1 under the 1940 Act. With respect to the day-to-day portfolio management services to be provided by Hartford Investment Management, the Board considered the quality of Hartford Investment Management's investment personnel (including its ability to attract and retain qualified investment professionals); its investment philosophy and process (and adherence to that philosophy and process); and its investment research capabilities and resources, performance record, and trade execution capabilities and experience. The Board noted the quality of the presentations to and communications with the Board, and responsiveness to Board inquiries, of Hartford Investment Management, including in particular Mr. Whelan and his team and senior management of Hartford Investment Management in their in-person discussions with the Board and their discussions with the Investment Committee. The Board recognized that HIFSCO is responsible for the overall management of the Fund, provides investment advisory services in connection with selecting, monitoring and supervising the Fund's sub-advisers, and that HIFSCO had recommended to the Board that Hartford Investment Management be appointed as a sub-adviser to the Fund. In considering this information, the Board evaluated not only the information presented to the Board and the Investment Committee in connection with its consideration of the Agreement, but also the Board's experience through past interactions with HIFSCO and Hartford Investment Management. Based on these considerations, the Board concluded that it was satisfied with the nature, extent and quality of the services to be provided to the Fund by HIFSCO and Hartford Investment Management. PERFORMANCE The Board considered the investment performance of the Fund as managed by Wellington Management. In this regard, the Board considered information and materials provided to the Board from HIFSCO comparing the Fund's investment performance over various periods of time with appropriate benchmark indices, and with a performance universe of funds selected by Lipper, which demonstrated that the Fund had generally performed well under Wellington Management's management. As Hartford Investment Management does not have a performance track record for active equity management, HIFSCO and Hartford Investment Management presented information regarding the performance record of funds managed by Mr. Whelan for his previous employer. This information included the performance record for other equity funds for which Mr. Whelan served as portfolio manager between April 2000 and November 2005. The Board reviewed materials that compared the performance of funds previously managed by Mr. Whelan and his team to the performance of appropriate benchmarks and other matrices as well as to a universe of funds selected by Lipper. HIFSCO and Hartford Investment Management provided additional information about the broad range of Mr. Whelan's and his team's recent investment experience and about their investment philosophy and process. The Board considered HIFSCO's representations and judgment that although Mr. Whelan's team has not previously managed a small cap growth fund using the proposed quantitative strategy, the team has demonstrated its ability to do so by successfully managing small cap assets in another strategy and successfully using a similar quantitative strategy in different asset classes. Based on these considerations, the Board concluded that, while there could be no guarantee of future results, the Board was satisfied that Hartford Investment Management has the capability of providing satisfactory investment performance for the Fund. COSTS OF THE SERVICES AND PROFITABILITY OF HIFSCO AND HARTFORD INVESTMENT MANAGEMENT The Board reviewed information regarding HIFSCO's and Hartford Investment Management's costs to provide investment management and related services to the Fund and the profitability to them from managing the Fund. The Board considered information related to both HIFSCO and Hartford Investment Management because it was proposed that Hartford Investment Management be reimbursed for its costs rather than receive a set fee, with the result that any profitability from managing the Fund would be realized only with respect to HIFSCO. The Board also had information about the profitability to HIFSCO and its affiliates from all services provided to the Fund and all aspects of its relationships with the Fund. In evaluating 389 APPROVAL OF INVESTMENT MANAGEMENT AND INVESTMENT SUB-ADVISORY AGREEMENTS (UNAUDITED) - (CONTINUED) HIFSCO's profitability, the Board considered that initially HIFSCO did not anticipate making a profit on the portion of the Fund's assets allocated to Hartford Investment Management, and that future profitability to HIFSCO would depend on the growth of Hartford Investment Management's equity assets under management. The Board considered statements by HIFSCO that HIFSCO's profitability from the Fund is not expected to increase over the course of the next year. The Board reviewed with HIFSCO the assumptions and allocation methods used in preparing the cost and profitability data provided to the Board. The Board recognized that allocation methods are inherently subjective, and different methods may be reasonable although they lead to different results. The Board noted the difficulty in obtaining reliable comparative data about adviser profitability, since such information is not generally publicly available and is impacted by numerous factors, including the structure of an adviser's organization, the types of funds it manages, and the adviser's capital structure and costs of capital. The Board considered the profitability of HIFSCO's relationship with the Fund on a pre-tax basis without regard to distribution expenses. Based on these considerations, the Board concluded that the profits anticipated to be realized by HIFSCO, Hartford Investment Management and their affiliates from their relationships with the Fund would not be excessive. COMPARISON OF FEES AND SERVICES PROVIDED BY HIFSCO AND HARTFORD INVESTMENT MANAGEMENT The Board considered comparative information with respect to the investment management fees to be paid by the Fund to HIFSCO and its affiliates. In this regard, the Board received information from HIFSCO and Hartford Investment Management relating to the management fees, sub-advisory fees, and total operating expenses for the Fund. HIFSCO also referenced information comparing the Fund's management fees and total expense ratio relative to those of a peer group of funds identified by Lipper as being in the small capitalization growth category. The Board considered that according to the information provided by Lipper, the proposed management fee is below the median and average fee for the Fund's peer group at asset levels over $100 million. While the Board recognized that comparisons between the Fund and peer funds are imprecise, given the differing service levels and characteristics of mutual funds, and the different business models and cost structures of advisers, the comparative information assisted the Board in evaluating the reasonableness of the Fund's management advisory and sub-advisory fees. In considering the reasonableness of the Fund's fees and total expense ratios, the Board considered that the overall management fee for the Fund could potentially be lower under the Proposal as a result of HIFSCO's agreement to an additional breakpoint in the Fund's management fees. Based on these considerations, and after taking into account the fee breakpoints described above, the Board concluded that the comparative information reviewed indicates that the Fund's management fee and sub-advisory fee and total operating expenses are within a range that is competitive and, in conjunction with the information about quality of services, profitability, economies of scale, and other matters discussed, supports the conclusion that these fees and expenses are reasonable. ECONOMIES OF SCALE The Board considered the extent to which economies of scale would be realized as the Fund grows and whether the fee levels reflect these economies of scale for the benefit of the Fund's investors. The Board reviewed the breakpoints in the management fee schedule, including the additional breakpoint agreed to as described above, which reduce fees as Fund assets grow over time. These breakpoints provide economies of scale to the Fund and its shareholders in that, as the Fund grows, its effective management fee rate declines. The Board recognized that the Fund would continue to benefit from economies of scale with assets beyond the last breakpoint, because additional assets are charged the lowest breakpoint fee, resulting in a lower overall effective management fee rate. The Board considered that the Fund may achieve some economies as certain fixed expenses are spread over a larger asset base, noting that there is no precise way to measure such economies, and that certain expenses do not necessarily decrease as assets increase. The Board noted that increasing asset capacity and keeping the Fund open to new investments increased the likelihood that asset growth in the Fund would enable shareholders to benefit from the breakpoints in the management fee schedule. The Board received information regarding HIFSCO's and Hartford Investment Management's realization of economies of scale with respect to the Fund. The Board considered representations from HIFSCO that the initial start-up costs Hartford Investment Management would incur in building its equity management capability relating to the Fund would be high relative to the small amount of assets under management. However, the Board considered that HIFSCO and Hartford Investment Management were likely to realize some economies of scale over time as Hartford Investment Management's equity assets under management increased, which the Board would consider in determining whether to renew the agreement on an annual basis. After considering all of the information available to it, the Board concluded that it was satisfied with the extent to which economies of scale would be shared for the benefit of the Fund's investors, based on currently available information and the effective advisory fees and expense ratios for the Fund at its current and reasonably anticipated asset levels. The Board noted, however, that it would continue to monitor future growth in Fund assets and the appropriateness of additional breakpoints. OTHER BENEFITS The Board considered information regarding other benefits to HIFSCO, Hartford Investment Management and their affiliates from their relationships with the Fund. The Board considered Hartford Investment Management's statements that Hartford Investment Management was undertaking a review of its soft dollar practices in light of the recent addition of equity management capability, but that it had determined that at present Hartford Investment Management will utilize soft dollars to obtain only: (i) brokerage services; (ii) research created and provided by a broker-dealer involved in effecting a trade (i.e., research provided by a full service broker-dealer, or provided by a broker-dealer to which a portion of a trade is directed for the purpose of obtaining access to the research, in either case on a bundled basis); and (iii) access to management personnel. The Board considered Hartford Investment Management's representations that Hartford Investment Management will not at present utilize soft dollars to obtain research from parties who have no role in effecting a trade, although Hartford Investment Management's practices could change in the future. The Board considered that these soft dollar practices would benefit Hartford Investment Management by providing it with research that could be utilized with its other active equity 390 APPROVAL OF INVESTMENT MANAGEMENT AND INVESTMENT SUB-ADVISORY AGREEMENTS (UNAUDITED) - (CONTINUED) clients. The Board also considered that the following companies, which are affiliates of Hartford Investment Management, provide services to the Fund and receive compensation from the Fund: - HIFSCO serves as the Fund's principal underwriter and receives 12b-1 fees from the Fund. - Hartford Life Insurance Company provides fund accounting services to the Fund and receives fund accounting fees from the Fund. - The Fund currently pays the cost of certain legal services in support of the Fund provided by personnel of Hartford Life Insurance Company, but it is expected that such cost will be absorbed by Hartford Life Insurance Company as of January 1, 2007. - Hartford Administrative Services Company, the Fund's transfer agent, receives transfer agency compensation from the Fund. The Board considered that, because HIFSCO intends to allocate to Hartford Investment Management new inflows of assets into the Fund, HIFSCO and Hartford Investment Management would benefit from the Fund's existing performance record. Based upon its review of these various factors, among others, the Board concluded that it is in the best interests of the Fund and its shareholders to approve the Agreement with Hartford Investment Management. In reaching this decision, the Board did not assign relative weights to the factors discussed above or deem any one or group of them to be controlling in and of themselves. THE HARTFORD SELECT MIDCAP GROWTH FUND (FOR PURPOSES OF THIS SECTION, THE TERM "FUND" SHALL REFER ONLY TO THE HARTFORD SELECT MIDCAP GROWTH FUND) At a board meeting held on August 1-2, 2006, the Board of Directors of the Fund unanimously voted to approve an investment sub-advisory agreement between HIFSCO and Hartford Investment Management (the "Agreement"). In advance of the August meeting, the Board reviewed written responses from HIFSCO and Hartford Investment Management to questions posed to them on behalf of the Independent Directors and supporting materials relating to those questions and responses. The Board also received in-person presentations from management and the proposed portfolio manager for the Fund, Hugh Whelan, regarding the capabilities of Hartford Investment Management's multi-discipline equity management team and the associated benefits to the Fund and its shareholders. The Board's Investment Committee also received an in-person presentation from the portfolio manager about the team's capabilities and the associated benefits to shareholders at its meeting on August 1, 2006. In addition, the Board received information with respect to Hartford Investment Management in connection with the Board's consideration of Hartford Investment Management's re-approval as a sub-adviser to certain of the Company's fixed income and asset allocation funds on August 1-2, 2006, and, with respect to the proposed portfolio management team for the Fund, when Hartford Investment Management was approved as an additional sub-adviser to one of the Company's equity funds on June 20-21, 2006. In determining to approve the Agreement, the Board determined that the Agreement, including the appointment of Hartford Investment Management as sub-adviser, was fair and reasonable and in the best interests of the Fund and its shareholders. The Board considered the following categories of material factors, among others, relating to the Agreement. NATURE, EXTENT AND QUALITY OF SERVICES The Board considered information and data concerning the nature, extent, and quality of the services to be provided to the Fund by Hartford Investment Management. The Board considered, among other things, the terms of the Agreement, the range of services to be provided, and Hartford Investment Management's organizational structure, systems and personnel. The Board received information on the background and experience of senior management and relevant investment and other personnel at Hartford Investment Management, and the adequacy of the time and attention that they would devote to the Fund. The Board considered Hartford Investment Management's reputation and overall financial strength, noting that Hartford Investment Management's current reputation and the Board's past experience with Hartford Investment Management was predominantly based on Hartford Investment Management's performance as a fixed income manager. The Board also noted that although Hartford Investment Management is primarily a fixed income manager, it also engages in passive equity index management and asset allocation for certain Hartford-sponsored mutual funds, and in June 2006 commenced active equity management of a portion of two Hartford-sponsored mutual funds. The Board also considered Hartford Investment Management's efforts and progress in building its active management capability. The Board also considered the experience and reputation of equity personnel hired by Hartford Investment Management to service the Fund, and the level of support provided by the organization as a whole. The Board and the Investment Committee met with Hugh Whelan, the proposed portfolio manager for the Fund. The Board considered HIFSCO's representations and judgment that, although Mr. Whelan's team has not previously managed a mid cap growth fund using the proposed quantitative strategy, Mr. Whelan's prior experience with various institutional products, success in managing mid cap assets in another strategy, and success in implementing a quantitative investment approach demonstrate his ability to manage assets in the mid cap growth mandate. The Board also considered HIFSCO's and Hartford Investment Management's investments in infrastructure in light of increased regulatory requirements and the needs of Hartford Investment Management's proposed active equity management function. The Board also requested and evaluated information concerning Hartford Investment Management's regulatory and compliance environment. The Board focused on regulatory and compliance matters particular to the management of equity securities as opposed to fixed income securities. In this regard, the Board requested and reviewed information on Hartford Investment Management's compliance policies and procedures, compliance history, and reports from the Fund's Chief Compliance Officer on Hartford Investment Management's compliance with applicable laws and regulations, including its responses to regulatory developments and compliance issues raised by regulators. The Board also noted HIFSCO's and Hartford Investment Management's support of the Company's compliance control structure, particularly the resources devoted by HIFSCO and Hartford Investment Management in support of the Company's obligations pursuant to Rule 38a-1 under the 1940 Act. With respect to the day-to-day portfolio management services to be provided by Hartford Investment Management, the Board considered the quality of Hartford Investment Management's investment personnel (including its ability to attract and retain qualified investment professionals); its investment 391 APPROVAL OF INVESTMENT MANAGEMENT AND INVESTMENT SUB-ADVISORY AGREEMENTS (UNAUDITED) - (CONTINUED) philosophy and process (and adherence to that philosophy and process); and its investment research capabilities and resources, performance record, and trade execution capabilities and experience. The Board noted the quality of the presentations to and communications with the Board, and responsiveness to Board inquiries, of Hartford Investment Management, including in particular Mr. Whelan and senior management of Hartford Investment Management in their in-person discussions with the Board and their discussions with the Investment Committee. The Board recognized that HIFSCO is responsible for the overall management of the Fund, provides investment advisory services in connection with selecting, monitoring and supervising the Fund's sub-advisers, and had recommended to the Board that Hartford Investment Management be appointed as a sub-adviser to the Fund. In considering this information, the Board evaluated not only the information presented to the Board and the Investment Committee in connection with its consideration of the Agreement, but also the Board's experience through past interactions with HIFSCO and Hartford Investment Management. Based on these considerations, the Board concluded that it was satisfied with the nature, extent and quality of the services to be provided to the Fund by HIFSCO and Hartford Investment Management. PERFORMANCE The Board considered the investment performance of the Fund as managed by Chartwell, GSAM and Northern Capital. In this regard, the Board considered information and materials provided to the Board comparing the Fund's investment performance since its inception on January 1, 2005 with appropriate benchmark indices, and with a performance universe of funds selected by Lipper. The Board noted that the comparative data demonstrated that the Fund had ranked in the 64th percentile, or in the bottom half, for its one-year performance as compared to its peer funds. The Board also noted that its one-year and since-inception date returns under Chartwell, GSAM and Northern Capital were below its benchmarks. As Hartford Investment Management does not have a performance track record for active equity management, HIFSCO and Hartford Investment Management presented information regarding the performance record of funds managed by Mr. Whelan for his previous employer between 2000 and 2005. Mr. Whelan was a member of the investment management responsible for these funds since 1999, and served in a leadership capacity on the team from 2003 to 2005. The Board reviewed materials that compared the performance of funds previously managed by Mr. Whelan and his team to the performance of appropriate benchmarks and other matrices as well as to a universe of funds selected by Lipper. HIFSCO and Hartford Investment Management provided additional information about the broad range of Mr. Whelan's and his team's recent investment experience and about their investment philosophy and process. The Board considered HIFSCO's representations and judgment that although Mr. Whelan's team has not previously managed a mid cap growth fund using the proposed quantitative strategy, the team has demonstrated its ability to do so by successfully managing mid cap assets in another strategy and successfully using a similar quantitative strategy in different asset classes. The Board and the Investment Committee also had extensive in person discussions with Mr. Whelan about his investment philosophy, process and experience. Based on these considerations, the Board concluded that, while there could be no guarantee of future results, the Board was satisfied that Hartford Investment Management has the capability of providing satisfactory investment performance for the Fund. COSTS OF THE SERVICES AND PROFITABILITY OF HIFSCO AND HARTFORD INVESTMENT MANAGEMENT The Board reviewed information regarding HIFSCO's and Hartford Investment Management's costs to provide investment management and related services to the Fund and the profitability to them from managing the Fund. The Board considered information related to both HIFSCO and Hartford Investment Management because it was proposed that Hartford Investment Management be reimbursed for its costs rather than receive a set fee, with the result that any profitability from managing the Fund would be realized only with respect to HIFSCO. The Board also had information about the profitability to HIFSCO and its affiliates from all services provided to the Fund and all aspects of its relationships with the Fund. In evaluating HIFSCO's profitability, the Board considered that initially HIFSCO did not anticipate making a profit, and that future profitability to HIFSCO would depend on the growth of Hartford Investment Management's equity assets under management. The Board considered statements by HIFSCO that HIFSCO's profitability from the Fund is not expected to increase over the course of the next year. The Board reviewed with HIFSCO the assumptions and allocation methods used in preparing the cost and profitability data provided to the Board. The Board recognized that allocation methods are inherently subjective, and different methods may be reasonable although they lead to different results. The Board noted the difficulty in obtaining reliable comparative data about adviser profitability, since such information is not generally publicly available and is impacted by numerous factors, including the structure of an adviser's organization, the types of funds it manages, and the adviser's capital structure and costs of capital. The Board considered HIFSCO's profitability from managing the Fund as compared to HIFSCO's profitability from managing other Funds. In addition, the Board considered the profitability of HIFSCO's relationship with the Fund on a pre-tax basis without regard to distribution expenses. Based on these considerations, the Board concluded that the profits anticipated to be realized by HIFSCO, Hartford Investment Management and their affiliates from their relationships with the Fund would not be excessive. COMPARISON OF FEES AND SERVICES PROVIDED BY HIFSCO AND HARTFORD INVESTMENT MANAGEMENT The Board considered comparative information with respect to the investment management fees to be paid by the Fund to HIFSCO and its affiliates. In this regard, the Board received information from HIFSCO and Hartford Investment Management relating to the management fees, sub-advisory fees, and total operating expenses for the Fund. HIFSCO also referenced information comparing the Fund's management fees and total expense ratio relative to those of a peer group of funds identified by Lipper as being in the mid capitalization growth category. The Board considered that according to the information provided by Lipper, the proposed management fee is below the average and median fee for the Fund's peer group at all asset levels. While the Board recognized that comparisons between the Fund and peer funds are imprecise, given the differing service levels and characteristics of mutual funds, and the different business models and cost structures of advisers, the comparative information assisted the Board in evaluating the reasonableness of the Fund's management advisory and sub-advisory fees. In considering the reasonableness of the Fund's fees and total expense ratios, the Board considered that the overall management fee for the Fund would be lower under the Proposal as a result of HIFSCO's agreement to reduce the Fund's management fees at all asset levels. The Board also considered 392 APPROVAL OF INVESTMENT MANAGEMENT AND INVESTMENT SUB-ADVISORY AGREEMENTS (UNAUDITED) - (CONTINUED) HIFSCO's representation that it would be able to reduce the Fund's management fee at all asset levels because it would realize cost savings as a result of having one affiliated sub-adviser, Hartford Investment Management, serve as sub-adviser for all of the Fund's assets. Based on these considerations, and after taking into account the fee reductions noted above, the Board concluded that the comparative information reviewed indicates that the Fund's management fee and sub-advisory fee and total operating expenses are within a range that is competitive and, in conjunction with the information about quality of services, profitability, economies of scale, and other matters discussed, supports the conclusion that these fees and expenses are reasonable. ECONOMIES OF SCALE The Board considered the extent to which economies of scale would be realized as the Fund grows and whether the fee levels reflect these economies of scale for the benefit of the Fund's investors. The Board reviewed the breakpoints in the management fee schedule, which reduce management fees, sub-advisory fees and operating expenses as Fund assets grow over time. These breakpoints provide economies of scale to the Fund and its shareholders in that, as the Fund grows, its effective management and sub-advisory fee rates decline. The Board recognized that the Fund would continue to benefit from economies of scale with assets beyond the last breakpoint, because additional assets are charged the lowest breakpoint fee, resulting in a lower overall effective management fee rate. The Board considered that the Fund may achieve some economies as certain fixed expenses are spread over a larger asset base, noting that there is no precise way to measure such economies, and that certain expenses do not necessarily decrease as assets increase. The Board considered management's representation that the replacement of the Current Sub-Advisers with Hartford Investment Management would enable the Fund to gain greater acceptance among potential investors, resulting in increased opportunities for growth. The Board noted that increasing assets would increase the likelihood that shareholders would benefit from the breakpoints in the management fee schedule. The Board received information regarding HIFSCO's and Hartford Investment Management's realization of economies of scale with respect to the Fund. The Board considered representations from HIFSCO that the initial start-up costs Hartford Investment Management would incur in building its equity management capability relating to the Fund would be high relative to the small amount of assets under management. However, the Board considered that HIFSCO and Hartford Investment Management were likely to realize some economies of scale over time as Hartford Investment Management's equity assets under management increased, which the Board would consider in determining whether to renew the agreement on an annual basis. After considering all of the information available to it, the Board concluded that it was satisfied with the extent to which economies of scale would be shared for the benefit of the Fund's investors, based on currently available information and the effective advisory fees and expense ratios for the Fund at its current and reasonably anticipated asset levels. The Board noted, however, that it would continue to monitor future growth in Fund assets and the appropriateness of additional breakpoints. OTHER BENEFITS The Board considered information regarding other benefits to HIFSCO, Hartford Investment Management and their affiliates from their relationships with the Fund. The Board considered Hartford Investment Management's statements that Hartford Investment Management was undertaking a review of its soft dollar practices in light of the recent addition of equity management capability, but that it had determined that at present Hartford Investment Management will utilize soft dollars to obtain only: (i) brokerage services; (ii) research created and provided by a broker-dealer involved in effecting a trade (i.e., research provided by a full service broker-dealer, or provided by a broker-dealer to which a portion of a trade is directed for the purpose of obtaining access to the research, in either case on a bundled basis); and (iii) access to management personnel. The Board considered Hartford Investment Management's representations that Hartford Investment Management will not at present utilize soft dollars to obtain research from parties who have no role in effecting a trade, although Hartford Investment Management's practices could change in the future. The Board considered that these soft dollar practices would benefit Hartford Investment Management by providing it with research that could be utilized with its other active equity clients. The Board also considered that the following companies, which are affiliates of Hartford Investment Management, provide services to the Fund and receive compensation from the Fund: - HIFSCO serves as the Fund's principal underwriter and receives 12b-1 fees from the Fund. - Hartford Life Insurance Company provides fund accounting services to the Fund and receives fund accounting fees from the Fund. - The Fund currently pays the cost of certain legal services in support of the Fund provided by personnel of Hartford Life Insurance Company, but such cost will be absorbed by Hartford Life Insurance Company as of January 1, 2007. - Hartford Administrative Services Company, the Fund's transfer agent, receives transfer agency compensation from the Fund. Based upon its review of these various factors, among others, the Board concluded that it is in the best interests of the Fund and its shareholders to approve the Agreement with Hartford Investment Management. In reaching this decision, the Board did not assign relative weights to the factors discussed above or deem any one or group of them to be controlling in and of themselves. THE HARTFORD SELECT MIDCAP VALUE FUND (FOR PURPOSES OF THIS SECTION, THE TERM "FUND" SHALL REFER ONLY TO THE HARTFORD SELECT MIDCAP VALUE FUND) At a board meeting held on August 1-2, 2006, the Board of Directors of the Fund unanimously voted to approve an investment sub-advisory agreement between HIFSCO and Hartford Investment Management (the "Agreement"). In advance of the August meeting, the Board reviewed written responses from HIFSCO and Hartford Investment Management to questions posed to them on behalf of the Independent Directors and supporting materials relating to those questions and responses. The Board also received in-person presentations from management and the proposed portfolio manager for the Fund, Hugh Whelan, regarding the capabilities of Hartford Investment Management's multi-discipline equity management team and the associated benefits to the Fund and its shareholders. The Board's Investment 393 APPROVAL OF INVESTMENT MANAGEMENT AND INVESTMENT SUB-ADVISORY AGREEMENTS (UNAUDITED) - (CONTINUED) Committee also received an in-person presentation from the portfolio manager about the team's capabilities and the associated benefits to shareholders at its meeting on August 1, 2006. In addition, the Board received information with respect to Hartford Investment Management in connection with the Board's consideration of Hartford Investment Management's re-approval as a sub-adviser to certain of the Company's fixed income and asset allocation funds on August 1-2, 2006, and, with respect to the proposed portfolio management team for the Fund, when Hartford Investment Management was approved as an additional sub-adviser to one of the Company's equity funds on June 20-21, 2006. In determining to approve the Agreement, the Board determined that the Agreement, including the appointment of Hartford Investment Management as sub-adviser, was fair and reasonable and in the best interests of the Fund and its shareholders. The Board considered the following categories of material factors, among others, relating to the Agreement. NATURE, EXTENT AND QUALITY OF SERVICES The Board considered information and data concerning the nature, extent, and quality of the services to be provided to the Fund by Hartford Investment Management. The Board considered, among other things, the terms of the Agreement, the range of services to be provided, and Hartford Investment Management's organizational structure, systems and personnel. The Board received information on the background and experience of senior management and relevant investment and other personnel at Hartford Investment Management, and the adequacy of the time and attention that they would devote to the Fund. The Board considered Hartford Investment Management's reputation and overall financial strength, noting that Hartford Investment Management's current reputation and the Board's past experience with Hartford Investment Management was predominantly based on Hartford Investment Management's performance as a fixed income manager. The Board also noted that although Hartford Investment Management is primarily a fixed income manager, it also engages in passive equity index management and asset allocation for certain Hartford-sponsored mutual funds, and in June 2006 commenced active equity management of a portion of two Hartford-sponsored mutual funds. The Board also considered Hartford Investment Management's efforts and progress in building its active management capability. The Board also considered the experience and reputation of equity personnel hired by Hartford Investment Management to service the Fund, and the level of support provided by the organization as a whole. The Board and the Investment Committee met with Hugh Whelan, the proposed portfolio manager for the Fund. The Board considered HIFSCO's representations and judgment that, although Mr. Whelan's team has not previously managed a mid cap value fund using the proposed quantitative strategy, Mr. Whelan's prior experience with various institutional products, success in managing mid cap assets in another strategy, and success in implementing a quantitative investment approach demonstrate his ability to manage assets in the mid cap value mandate. The Board also considered HIFSCO's and Hartford Investment Management's investments in infrastructure in light of increased regulatory requirements and the needs of Hartford Investment Management's proposed active equity management function. The Board also requested and evaluated information concerning Hartford Investment Management's regulatory and compliance environment. The Board focused on regulatory and compliance matters particular to the management of equity securities as opposed to fixed income securities. In this regard, the Board requested and reviewed information on Hartford Investment Management's compliance policies and procedures, compliance history, and reports from the Fund's Chief Compliance Officer on Hartford Investment Management's compliance with applicable laws and regulations, including its responses to regulatory developments and compliance issues raised by regulators. The Board also noted HIFSCO's and Hartford Investment Management's support of the Company's compliance control structure, particularly the resources devoted by HIFSCO and Hartford Investment Management in support of the Company's obligations pursuant to Rule 38a-1 under the 1940 Act. With respect to the day-to-day portfolio management services to be provided by Hartford Investment Management, the Board considered the quality of Hartford Investment Management's investment personnel (including its ability to attract and retain qualified investment professionals); its investment philosophy and process (and adherence to that philosophy and process); and its investment research capabilities and resources, performance record, and trade execution capabilities and experience. The Board noted the quality of the presentations to and communications with the Board, and responsiveness to Board inquiries, of Hartford Investment Management, including in particular Mr. Whelan and senior management of Hartford Investment Management in their in-person discussions with the Board and their discussions with the Investment Committee. The Board recognized that HIFSCO is responsible for the overall management of the Fund, provides investment advisory services in connection with selecting, monitoring and supervising the Fund's sub-advisers, and had recommended to the Board that Hartford Investment Management be appointed as a sub-adviser to the Fund. In considering this information, the Board evaluated not only the information presented to the Board and the Investment Committee in connection with its consideration of the Agreement, but also the Board's experience through past interactions with HIFSCO and Hartford Investment Management. Based on these considerations, the Board concluded that it was satisfied with the nature, extent and quality of the services to be provided to the Fund by HIFSCO and Hartford Investment Management. PERFORMANCE The Board considered the investment performance of the Fund as managed by Artisan, CRM and Sterling. In this regard, the Board considered information and materials provided to the Board from HIFSCO comparing the Fund's investment performance since its inception on April 29, 2005 with appropriate benchmark indices, and with a performance universe of funds selected by Lipper. The Board noted that the comparative data demonstrated that the Fund had ranked in the 60th percentile, or in the bottom half, for its one-year performance as compared to its peer funds. The Board also noted that its one-year and since-inception date returns under Artisan, CRM and Sterling were below its benchmarks. As Hartford Investment Management does not have a performance track record for active equity management, HIFSCO and Hartford Investment Management presented information regarding the performance record of funds managed by Mr. Whelan for his previous employer between 2000 and 2005. Mr. Whelan was a member of the investment management responsible for these funds since 1999, and served in a leadership capacity on the team from 2003 to 2005. The Board reviewed materials that compared the performance of funds previously managed by Mr. Whelan and his team to the performance of appropriate benchmarks and other matrices as well as to a universe of funds selected by Lipper. HIFSCO and Hartford Investment Management provided additional information about the broad range of Mr. Whelan's and his team's recent investment experience and about their investment philosophy and process. The Board considered HIFSCO's representations and judgment that although Mr. Whelan's team has not previously managed a mid cap value fund using the proposed quantitative strategy, the team has demonstrated its ability to do so by successfully managing mid cap 394 APPROVAL OF INVESTMENT MANAGEMENT AND INVESTMENT SUB-ADVISORY AGREEMENTS (UNAUDITED) - (CONTINUED) assets in another strategy and successfully using a similar quantitative strategy in different asset classes. The Board and the Investment Committee also had extensive in person discussions with Mr. Whelan about his investment philosophy, process and experience. Based on these considerations, the Board concluded that, while there could be no guarantee of future results, the Board was satisfied that Hartford Investment Management has the capability of providing satisfactory investment performance for the Fund. COSTS OF THE SERVICES AND PROFITABILITY OF HIFSCO AND HARTFORD INVESTMENT MANAGEMENT The Board reviewed information regarding HIFSCO's and Hartford Investment Management's costs to provide investment management and related services to the Fund and the profitability to them from managing the Fund. The Board considered information related to both HIFSCO and Hartford Investment Management because it was proposed that Hartford Investment Management be reimbursed for its costs rather than receive a set fee, with the result that any profitability from managing the Fund would be realized only with respect to HIFSCO. The Board also had information about the profitability to HIFSCO and its affiliates from all services provided to the Fund and all aspects of its relationships with the Fund. In evaluating HIFSCO's profitability, the Board considered that initially HIFSCO did not anticipate making a profit, and that future profitability to HIFSCO would depend on the growth of Hartford Investment Management's equity assets under management. The Board considered statements by HIFSCO that HIFSCO's profitability from the Fund is not expected to increase over the course of the next year. The Board reviewed with HIFSCO the assumptions and allocation methods used in preparing the cost and profitability data provided to the Board. The Board recognized that allocation methods are inherently subjective, and different methods may be reasonable although they lead to different results. The Board noted the difficulty in obtaining reliable comparative data about adviser profitability, since such information is not generally publicly available and is impacted by numerous factors, including the structure of an adviser's organization, the types of funds it manages, and the adviser's capital structure and costs of capital. The Board considered HIFSCO's profitability from managing the Fund as compared to HIFSCO's profitability from managing other Funds. In addition, the Board considered the profitability of HIFSCO's relationship with the Fund on a pre-tax basis without regard to distribution expenses. Based on these considerations, the Board concluded that the profits anticipated to be realized by HIFSCO, Hartford Investment Management and their affiliates from their relationships with the Fund would not be excessive. COMPARISON OF FEES AND SERVICES PROVIDED BY HIFSCO AND HARTFORD INVESTMENT MANAGEMENT The Board considered comparative information with respect to the investment management fees to be paid by the Fund to HIFSCO and its affiliates. In this regard, the Board received information from HIFSCO and Hartford Investment Management relating to the management fees, sub-advisory fees, and total operating expenses for the Fund. HIFSCO also referenced information comparing the Fund's management fees and total expense ratio relative to those of a peer group of funds identified by Lipper as being in the mid capitalization core category. The Board considered that according to the information provided by Lipper, the proposed management fee is below the average and median fee for the Fund's peer group at all asset levels. While the Board recognized that comparisons between the Fund and peer funds are imprecise, given the differing service levels and characteristics of mutual funds, and the different business models and cost structures of advisers, the comparative information assisted the Board in evaluating the reasonableness of the Fund's management advisory and sub-advisory fees. In considering the reasonableness of the Fund's fees and total expense ratios, the Board considered that the overall management fee for the Fund would be lower under the Proposal as a result of HIFSCO's agreement to reduce the Fund's management fees at all asset levels. The Board also considered HIFSCO's representation that it would be able to reduce the Fund's management fee at all asset levels because it would realize cost savings as a result of having one affiliated sub-adviser, Hartford Investment Management, serve as sub-adviser for all of the Fund's assets. Based on these considerations, and after taking into account the fee reductions noted above, the Board concluded that the comparative information reviewed indicates that the Fund's management fee and sub-advisory fee and total operating expenses are within a range that is competitive and, in conjunction with the information about quality of services, profitability, economies of scale, and other matters discussed, supports the conclusion that these fees and expenses are reasonable. ECONOMIES OF SCALE The Board considered the extent to which economies of scale would be realized as the Fund grows and whether the fee levels reflect these economies of scale for the benefit of the Fund's investors. The Board reviewed the breakpoints in the management fee schedule, which reduce management fees, sub-advisory fees and operating expenses as Fund assets grow over time. These breakpoints provide economies of scale to the Fund and its shareholders in that, as the Fund grows, its effective management and sub-advisory fee rates decline. The Board recognized that the Fund would continue to benefit from economies of scale with assets beyond the last breakpoint, because additional assets are charged the lowest breakpoint fee, resulting in a lower overall effective management fee rate. The Board considered that the Fund may achieve some economies as certain fixed expenses are spread over a larger asset base, noting that there is no precise way to measure such economies, and that certain expenses do not necessarily decrease as assets increase. The Board considered management's representation that the replacement of the Current Sub-Advisers with Hartford Investment Management would enable the Fund to gain greater acceptance among potential investors, resulting in increased opportunities for growth. The Board noted that increasing assets would increase the likelihood that shareholders would benefit from the breakpoints in the management fee schedule. The Board received information regarding HIFSCO's and Hartford Investment Management's realization of economies of scale with respect to the Fund. The Board considered representations from HIFSCO that the initial start-up costs Hartford Investment Management would incur in building its equity management capability relating to the Fund would be high relative to the small amount of assets under management. However, the Board considered that HIFSCO and Hartford Investment Management were likely to realize some economies of scale over time as Hartford Investment Management's equity assets under management increased, which the Board would consider in determining whether to renew the agreement on an annual basis. 395 APPROVAL OF INVESTMENT MANAGEMENT AND INVESTMENT SUB-ADVISORY AGREEMENTS (UNAUDITED) - (CONTINUED) After considering all of the information available to it, the Board concluded that it was satisfied with the extent to which economies of scale would be shared for the benefit of the Fund's investors, based on currently available information and the effective advisory fees and expense ratios for the Fund at its current and reasonably anticipated asset levels. The Board noted, however, that it would continue to monitor future growth in Fund assets and the appropriateness of additional breakpoints. OTHER BENEFITS The Board considered information regarding other benefits to HIFSCO, Hartford Investment Management and their affiliates from their relationships with the Fund. The Board considered Hartford Investment Management's statements that Hartford Investment Management was undertaking a review of its soft dollar practices in light of the recent addition of equity management capability, but that it had determined that at present Hartford Investment Management will utilize soft dollars to obtain only: (i) brokerage services; (ii) research created and provided by a broker-dealer involved in effecting a trade (i.e., research provided by a full service broker-dealer, or provided by a broker-dealer to which a portion of a trade is directed for the purpose of obtaining access to the research, in either case on a bundled basis); and (iii) access to management personnel. The Board considered Hartford Investment Management's representations that Hartford Investment Management will not at present utilize soft dollars to obtain research from parties who have no role in effecting a trade, although Hartford Investment Management's practices could change in the future. The Board considered that these soft dollar practices would benefit Hartford Investment Management by providing it with research that could be utilized with its other active equity clients. The Board also considered that the following companies, which are affiliates of Hartford Investment Management, provide services to the Fund and receive compensation from the Fund: - HIFSCO serves as the Fund's principal underwriter and receives 12b-1 fees from the Fund. - Hartford Life Insurance Company provides fund accounting services to the Fund and receives fund accounting fees from the Fund. - The Fund currently pays the cost of certain legal services in support of the Fund provided by personnel of Hartford Life Insurance Company, but such cost will be absorbed by Hartford Life Insurance Company as of January 1, 2007. - Hartford Administrative Services Company, the Fund's transfer agent, receives transfer agency compensation from the Fund. Based upon its review of these various factors, among others, the Board concluded that it is in the best interests of the Fund and its shareholders to approve the Agreement with Hartford Investment Management. In reaching this decision, the Board did not assign relative weights to the factors discussed above or deem any one or group of them to be controlling in and of themselves. * * * * * In connection with the Board's deliberations described above, regarding the approval of the investment management and investment sub-advisory agreements for each Fund, the Independent Directors met with independent legal counsel to review the relevant materials and consider their responsibilities under relevant laws and regulations. 396 ITEM 2. CODE OF ETHICS. Registrant has adopted a code of ethics that applies to Registrant's principal executive officer, principal financial officer and controller which is attached as an exhibit. 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. (a) Audit Fees: $779,875 for the fiscal year ended October 31, 2006 and $671,800 for the fiscal year ended October 31, 2005, including fees associated with the annual audit and filings of the Fund's Form N-1A and Form N-SAR. (b) Audit-Related Fees: $24,722 for the fiscal year ended October 31, 2006 and $0 for the fiscal year ended October 31, 2005. Audit-related services principally include accounting consultations in connection with new accounting standards and non-routine filings. (c) Tax Fees: $147,400 for tax compliance services for the fiscal year ended October 31, 2006 and $142,229 for the fiscal year ended October 31, 2005. (d) All Other Fees: $0 for the fiscal year ended October 31, 2006 and $0 for the fiscal year ended October 31, 2005. (e) (1) A copy of the Audit Committee's pre-approval policies and procedures is attached as an exhibit. (e) (2) One Hundred percent of the services described in items 4(a) through 4(d) were approved in accordance with the Audit Committee's Pre-Approval Policy. As a result, none of such services was approved pursuant to paragraph (c) (7) (i) (c) of Rule 2-01 of Regulation S-X. (f) None of the hours expended on the principal accountant's engagement to audit the Registrant's financial statements for the year ended October 31, 2006, were attributed to work performed by persons other than the principal accountant's full-time permanent employees. (g) Non-Audit Fees: $701,085 for the fiscal year ended October 31, 2006 and $700,000 for the fiscal year ended October 31, 2005. The audit committee has considered the compatibility of the non-audit services that were not subject to pre-approval with the auditor's independence. (h) N/A ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS. Registrant has a separately designated standing Audit Committee comprised of the independent directors listed below: Robert M. Gavin Sandra S. Jaffee William P. Johnston Phillip O. Peterson ITEM 6. SCHEDULE OF INVESTMENTS The Schedule of Investments is included as part of the annual report filed under Item 1 of this form. ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES. Not applicable. ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES. Not applicable. ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS. Not applicable. ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS There have been no material changes to the procedures by which shareholders may recommend nominees to the registrant's board of directors since registrant last provided disclosure in response to this requirement. ITEM 11. 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 was no change in the Registrant's internal control over financial reporting that occurred during the Registrant's last fiscal half year that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting. ITEM 12. EXHIBITS. 11(a) (2) Section 302 certifications of the principal executive officer and principal financial officer of Registrant. (b) 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. Date: December 14, 2006 By: /s/ David M. Znamierowski ------------------------------------ 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. Date: December 14, 2006 By: /s/ David M. Znamierowski ------------------------------------ David M. Znamierowski Its: President Date: December 14, 2006 By: /s/ Tamara L. Fagely ------------------------------------ Tamara L. Fagely Its: Vice President, Controller and Treasurer EXHIBIT LIST 12(a)(1) Code of Ethics 99.CERT 11(a)(2) Certifications (i) Section 302 certification of principal executive officer (ii) Section 302 certification of principal financial officer 99.906CERT 11(b) Section 906 certification of principal executive officer and principal financial officer